GSA GSA Specialist Financial Management & Budgeting 2 — Questions and Answers
Question 1: What is the difference between 'no-year' and 'one-year' appropriations?
- No-year funds expire at the end of the fiscal year; one-year funds never expire
- One-year appropriations expire at the end of the fiscal year; no-year funds remain available until expended (Correct answer)
- No-year appropriations can only be used for capital projects; one-year funds cover operations
- One-year funds require congressional reauthorization each year; no-year funds do not
Correct answer: One-year appropriations expire at the end of the fiscal year; no-year funds remain available until expended
One-year (annual) appropriations expire at fiscal year end and must be obligated within that year, while no-year (permanent) appropriations remain available until the agency obligates them.
Question 2: What is an Economy Act order and when is it used in GSA procurement?
- An order placed under the Economy and Efficiency in Government Act to reduce waste
- An interagency agreement allowing one federal agency to perform work or provide services to another using the requesting agency's funds (Correct answer)
- A type of purchase order reserved for purchases under the micro-purchase threshold
- A simplified acquisition method for emergency purchases during declared disasters
Correct answer: An interagency agreement allowing one federal agency to perform work or provide services to another using the requesting agency's funds
An Economy Act order (31 U.S.C. § 1535) allows one federal agency to obtain services or goods from another agency, with the requesting agency transferring funds to the performing agency.
Question 3: Under what circumstances may an agency use a prior-year expired appropriation to adjust or liquidate an obligation?
- Never — once an appropriation expires, it cannot be used for any purpose
- Only to adjust or liquidate a valid obligation properly incurred before the appropriation expired, during a 5-year expired account period (Correct answer)
- Only with written approval from the GAO and OMB
- Only for obligations under $10,000 that were inadvertently not liquidated
Correct answer: Only to adjust or liquidate a valid obligation properly incurred before the appropriation expired, during a 5-year expired account period
Expired appropriations remain available for 5 years after expiration solely to adjust or liquidate valid prior-year obligations, but cannot be used for new obligations.
Question 4: What is a 'reprogramming' in federal financial management?
- Moving funds between different fiscal years
- Shifting funds within an appropriation account from one program, project, or activity to another (Correct answer)
- Transferring funds between different appropriation accounts with congressional approval
- The process of updating agency financial management software systems
Correct answer: Shifting funds within an appropriation account from one program, project, or activity to another
Reprogramming involves reallocating funds within a single appropriation account to support different activities than originally planned, often requiring congressional notification or approval.
Question 5: What is the purpose of the Federal Acquisition Regulation's requirement for obtaining a Taxpayer Identification Number (TIN) before paying contractors?
- To verify that the contractor is a U.S. citizen
- To comply with IRS information reporting requirements and ensure contractor payments are properly reported (Correct answer)
- To check the contractor's credit history before award
- To verify the contractor's small business status
Correct answer: To comply with IRS information reporting requirements and ensure contractor payments are properly reported
Collecting TINs ensures the government can report payments to the IRS as required by law, enabling proper tax reporting and compliance for federal contractor payments.
Question 6: What is the purpose of GSA's Standard Level User Agreements (SLUAs) with customer agencies?
- To authorize agencies to use classified information systems
- To document the terms under which GSA will provide services and billing rates to customer agencies (Correct answer)
- To certify that agencies have completed required acquisition training
- To establish small business subcontracting targets for each agency
Correct answer: To document the terms under which GSA will provide services and billing rates to customer agencies
SLUAs establish the terms, conditions, and billing rates for GSA services provided to customer agencies, serving as the interagency agreement framework for service delivery.
GSA GSA Specialist Financial Management & Budgeting 2
What is the difference between 'no-year' and 'one-year' appropriations?