Army Fiscal Law

Front 1

An appropriation...

Back 1

draws funds from the treasury and provides basic purpose.

Front 2

An authorization...

Back 2

provides additional purposes for the use of an appropriation.

Front 3

Congress has the power...

Back 3

of the purse.

Front 4

The expenditure of funds in only proper when...

Back 4

authorized by Congress.

Front 5

Appropriations Act Process (5):

Back 5

1. HASC House Armed Services Committee
2. SASC Senate Armed Services Committee
3. Conference Committee
4. House & Senate vote
5. President signs

Front 6

Important appropriations for Army (2):

Back 6

1. Defense
2. Military/Veterans (includes military construction)

Front 7

Sets policy for DoD (spending?) (2):

Back 7

HASC (House Armed Services Committee)
SASC (Senate Armed Services Committee)

Front 8

NDAA:

Back 8

National Defense Authorization Act

Front 9

NDAA process (5):

Back 9

1. HASC
2. SASC
3. Conference Committee
4. House & Senate vote
5. President signs

Front 10

Efficiency & cost savings...

Back 10

are not factors for fiscal law

Front 11

Pots of money (5):

Back 11

1. O&M "OMA" (Operations & Maintenance) 1yr
2. Personnel 1yr
3. Procurement 1yr
4. RDT&E (Research, Development, Testing & Evaluation) 2yr
5. Military Construction 5yr

Front 12

EEE

Back 12

Emergency Extraordinary Expenses

Front 13

OPA

Back 13

Other Procurement Army

Front 14

P.T.A.

Back 14

Purpose-Time-Amount

Front 15

GAO is...

Back 15

an arm of congress
investigative/watchdog
Examines use of taxpayer funds

Front 16

Necessary Expense Doctrine (3 part purpose test):

Back 16

1. Is it necessary and incident to an appropriations purpose?
2. Must not be prohibited
3. Must not be provide for otherwise

Front 17

If two or more appropriations are available...

Back 17

use the more specific of the two.

Front 18

Expense Investment Threshhold:

Back 18

distinguishes between expense & investment items
(short & long duration items)

Front 19

Expenses are...

Back 19

consumed in operating and maintaining with a couple years
and they are ALL services

Front 20

Investments are...

Back 20

items that have a long life span and become capital assets of DoD.
(furniture, IT equip.)

Front 21

Expenses are generally paid for out of ($ pot)...

Back 21

O&M

Front 22

Investments are paid for out of ($ pot)...

Back 22

Procurement

Front 23

Consolidated Appropriations Act:

Back 23

O&M may be used to purchase up to $250K of investment (instead of Procurement which most commanders don't have access to).

Front 24

Election Option:

Back 24

DoD must use O&M for all investment items < $250K

Front 25

If muliple items are interconnected...

Back 25

they are a system.

Front 26

$259K of door CAC readers...

Back 26

is an interconnected system and has to be paid for out of the Procurement pot (> $250K), not out of O&M.

Front 27

$173K of (interconnected) CCTV equipment...

Back 27

is a system, and can be paid for out of O&M (< $250K).

Front 28

Desktop computers are not...

Back 28

considered a system. They stand alone.

Front 29

Centrally managed systems are funded by ($ pot)...

Back 29

Procurement

Front 30

If you can get it from the supply chain,...

Back 30

it's likely centrally managed and therefore paid for with Procurement.

Front 31

Fund Cite (code) contains

Back 31

Agency, FY, type of appropriation
or for Army
Agency, type of appropriation, years of availability, FY of funds

Front 32

Typical questionable expenses (list):

Back 32

Clothing
Food
Conferences
Bottled Water
Food Storage Prep. Equip.
Personal Office Furniture/Equip.
Entertainment
Decorations
Business Cards
Telephones
Fines and Penalties
Licenses and Certficates
Awards

Front 33

No Severable Cost:

Back 33

A cost is included/can't be separated
-has to be cost effective

Front 34

Food can only be purchased for meetings or conferences...

Back 34

if participants are on travel status.

Front 35

Bottled water is...

Back 35

a personal expense, unless water is unavailable or unpotable. Drink tap water.

Front 36

Awards must be paid for out of...

Back 36

appropriated funds.

Front 37

Dangling Participles of Purpose (in 2 manners):

Back 37

1. Augmentation
2. Miscellaneous Receipts

Front 38

Augmentation :(

Back 38

You can't augment a pot of money out of another pot, or with any other sources.

Front 39

Augmenting a pot of money can violate (4):

Back 39

1. The Constitution
2. The Purpose Statute
3. The Anti-Deficiency Act
4. The Miscellaneous Receipts Statute

Front 40

Miscellaneous Receipts Statute:

Back 40

If you get money that's not from Congress, you have to give it to the Treasury.

Front 41

Funds =

Back 41

appropriations, "colors" or "pots" of money

Front 42

Each fund is different with respect to (3):

Back 42

1. Purpose
2. Time
3. Amount

Front 43

Things you buy in September...

Back 43

must be needed in that FY.

Front 44

Single year appropriations are only good...

Back 44

til the end of the FY

Front 45

"Fencing Off" is...

Back 45

an admin tool to verify sufficient funds exist.
No legal consequences
Can be undone

Front 46

Obligation:

Back 46

the event that creates a legal liability to pay
Usually a contract award

Front 47

Disbursement:

Back 47

actual payment

Front 48

Bona Fide Needs Rule:

Back 48

You have to need and and buy it in the year the money is available
NEED, OBLIGATE, THIS YEAR

Front 49

Bona Fide Needs Mantra:

Back 49

Current year funds for current year needs

Front 50

Bona fide need for a supply:

Back 50

Need occurs in the fiscal year it will be used.

Front 51

Bona fide need for a service (2 types):

Back 51

1. Severable - when work is performed
2. Non-severable - when work must start

Front 52

Bona fide need for construction:

Back 52

when a building must be started in order to have it completed on time

Front 53

Bona fide need exceptions (3):

Back 53

1. Delivery time
2. Production lead time
3. Stock level

Front 54

Delivery time exception to bona fide need:

Back 54

can order if delivery won't happen utnil following FY
*Gov't can't ask for later delivery date

Front 55

Production lead exception to bona fide need:

Back 55

can order is it won't be produced until following FY

Front 56

Bona Fide:

Back 56

real or genuine

Front 57

Stock level exception to bona fide need:

Back 57

to replenish current supplies
no more than a normal year's worth
NO STOCKPILING!

Front 58

Stockpiling:

Back 58

buying more than you expect to use in the next FY, or more than you used last FY

Front 59

Severable services characteristics (3):

Back 59

1. repeatable
2. recurring
3. identical (or nearly so)
(e.g. cleaning service)

Front 60

Non-severable services characteristics (2):

Back 60

1. one end product
2. indivisible - can't be broken into parts
(e.g. produce a report)

Front 61

Construction is generally considered a _____ service.

Back 61

non-severable
only one outcome - the completed building

Front 62

Training is generally considereda a _____ service.

Back 62

non-severable
*multiple training course may be severable

Front 63

"X Year" funds:

Back 63

available for obligation until expended
No expiration date
No bona fide need rules

Front 64

Funds are expired...

Back 64

for five years, but remain available to adjust old obligations.

Front 65

After five years, expired funds are...

Back 65

closed.
They go back to the Treasury.

Front 66

The legal implications of obligation are...

Back 66

huge.

Front 67

ADA

Back 67

Antideficiency Act

Front 68

Antideficiency Act:

Back 68

Can't spend more than Congress gave you

Front 69

Fiscal Control (3 Levels):

Back 69

1. Appropriation
2. Apportionment
3. Formal Administrative Subdivision

Front 70

Appropriation (Fiscal control #1) (2):

Back 70

1. Can't spend IN EXCESS OF an appropriation
2. Can't spend IN ADVANCE OF an appropriation

Front 71

Antideficiency Act Exceptions (2):

Back 71

1. Multi-year contracts (in advance) (e.g. maintain aircraft on remote island)
2. Feed and Forage Act

Front 72

Antideficiency Act Quasi-Exception:

Back 72

SAF Exception
Subject to Availability of Funds
Contract says nothing is exchanged until

Front 73

Apportionment (Fiscal control #2):

Back 73

OMB distributes money to DoD Comptroller
Can't exceed this amount

Front 74

Exceptions to exceed apportionment (3):

Back 74

1. Military and civilian pay increases
2. Laws enacted after budget submission which require additional expenditures
3. Emergencies involving life or property

Front 75

Formal Adminstrative Subdivision (Fiscal Control #3) (does 3 things):

Back 75

1. Further divides apportionments
2. Restricts amounts of obligations and expenditures
3. fix responsibility
(e.g. an allocation to the Army)

Front 76

The Army allocates money to...

Back 76

major commands

Front 77

The Army's major commands give money in two ways:

Back 77

1. allotment
2. allowance

Front 78

An allotment:

Back 78

a formal subdivision

Front 79

An allowance:

Back 79

an informal subdivision

Front 80

Formal administrative subdivisions (2):

Back 80

1. Allocation
2. Allotment
Subject to ADA violations

Front 81

Informal administrative subdivisions (3):

Back 81

1. Allowance
2. Target
3. Advisory Guide
Not subject to ADA violations at this level

Front 82

Antideficiency Act violations (3):

Back 82

1. Purpose
2. Time
3. Amount

Front 83

A purpose violation is not an ADA violation if...(2)

Back 83

1. Proper funds are available at the time of obligation
2. Proper funds are available at the time of correction

Front 84

If wrong funds (wrong appropriation or wrong year) have been obligated, you must...

Back 84

de-obligate wrong funds & obligate right funds
Must perform funding correction

Front 85

Volutary services prohibition:

Back 85

Can't accept voluntary services, unless...
1. student interns
2. gratuitous services

Front 86

Voluntary credit prohibition:

Back 86

Employees can't pay a gov't obligation

Front 87

Who's accoutable (3)?

Back 87

1. Commanding officers
2. Budget officers
3. Fiscal officers

Front 88

ADA penalties for civilians (4):

Back 88

1. reprimand
2. reduction in grade
3. suspension w/o pay
4. removal

Front 89

ADA penalties for military (2):

Back 89

1. UCMJ
2. Administrative action

Front 90

ADA criminal penalties (2):

Back 90

1. $5,000
2. 2 yrs confinement
Class E felony is knowing and willful

Front 91

Report suspected violations (3):

Back 91

1. FMR w/in 2 weeks - chain of command
2. DFAS immediately - RM Director
3. Flash report 15 days

Front 92

Preliminary investigations are completed...

Back 92

w/in 14 weeks of initial discovery

Front 93

Formal investigations are completed...

Back 93

w/in 12 months of prelimary review's end

Front 94

Investigation notification letters go to (3):

Back 94

1. GAO
2. Congress
3. The President

Front 95

Initiation:

Back 95

the unofficial reservation of funds based on preliminary negotiations, but no obligation permitted without subsequent commitment/certification.

Front 96

Initiation at the strategic level:

Back 96

may involve asking DoD to budget funds
Process = PPBES - Planning Programming, Budgeting & Execution System

Front 97

PPBES

Back 97

Planning Programming, Budgeting & Execution System

Front 98

POM Cycle

Back 98

Program Objective Memorandum

Front 99

Commitment:

Back 99

unofficial administrative reservation of funds "fencing off" based on firm procurement requests

Front 100

Certification of fund availability:

Back 100

certification that funds are available to cover obligations.
Authorizes subsequent to obligation.

Front 101

Arm official responsible for administrative control of the affected subdivision, and signs the commitment:

Back 101

RM/Comptroller/G-8

Front 102

Amoun to commit (2):

Back 102

1. Estimated procurement cost
2. Conservative estimate of contingent liabilities

Front 103

Types of contracts (2):

Back 103

1. Fixed price
2. Cost reimbursement

Front 104

Contingent liability:

Back 104

[a financial liability] which is not now fixed and absolute, but which can become so in case of the occurence fo some future and uncertain event

Front 105

Conservative estimate of the contingent liability:

Back 105

estimated conservatively to be sufficient to cover the additional obligations that probably will materialize based upon judgement and experience.
- with sufficient detail to facilitate an audit.

Front 106

Chronological steps in fiscal contracting (5):

Back 106

1 Initiation
2. Commitment/Certification of funds
3. Obligation of funds
4 Recording of obligations
5. Disbursement

Front 107

Certification (5):

Back 107

1. Internal to agency
2. Subjective - conservative estimate
3. Conservative estimate of the contingent liability
4. Certify at some time before award
5. Specific act by certifying office

Front 108

Obligation (6):

Back 108

1. Promise to external entity
2. Objective - amount promised, definite and certain
3. Do not obligate while liability is contingent
4. Occurs upon award
5. Records soon after
6. Occurs when promise is made

Front 109

FFP:

Back 109

Firm Fixed Price [contract]

Front 110

BPA:

Back 110

Blanket Purchase Agreement

Front 111

ID/IQ:

Back 111

Indefinite Delivery / Indefininte Quantity

Front 112

ID/DQ:

Back 112

Indefinite Delivery / Definite Quantity

Generic Base + Options contract

Front 113

Options are...

Back 113

natural breaking points in a contract

Front 114

Options are not...

Back 114

liabilities

Front 115

Does DoD obligate options?

Back 115

No

Front 116

Does a requirements contract involve a contingent liability?

Back 116

Yes

Front 117

What must be obligated at contract award of an ID/DQ?

Back 117

the guaranteed minimum

Front 118

What is our bona fide need with an ID/DQ?

Back 118

bona fide need for the guaranteed minimum

Front 119

BPA (4):

Back 119

1. Not a contract
2. Anticipating repetitive orders for goods and services
3. An agreement to agree
4. Each individual order under contract

Front 120

FFP w/EPA:

Back 120

Firm Fixed Price with Economic Price Adjustment

Front 121

FPAF:

Back 121

Fixed Price with Award Fees

Front 122

FPI:

Back 122

Fixed Price Incentive

Front 123

CPPC:

Back 123

Cost-Plus-Percentage of Cost
ILLEGAL

Front 124

CS:

Back 124

Cost Sharing

Front 125

CPFF:

Back 125

Cost-Plus-Fixed-Fee

Front 126

CPAF:

Back 126

Cost-Plus-Award-Fee

Front 127

We mitigate risk through a...

Back 127

cost ceiling

Front 128

Relation-Back Theory/Antecedent Liability:

Back 128

Going back to make adjustments using expired funds

Front 129

Out-of-Scope:

Back 129

unanticipated new requirement

Front 130

In-Scope:

Back 130

anticipated small increase to original contract

Front 131

Interagency Acquisition is an exception to...

Back 131

the Purpose statute.

Front 132

The key to Interagency Acquisitions is having...

Back 132

statuatory authority to do so.

Front 133

Interagency Acquisition Authorities (3):

Back 133

1. Economy Act
2. Project Order Statute
3. Other Non-economy Act

Front 134

The Economy Act control is...

Back 134

a last resort, only if no other specific statutory authority is available.

Front 135

Economy Act Goals (3):

Back 135

1. Improve efficiency
2. Obtain economies of scale
3. Utilize existing expertise (e.g. buying ships)

Front 136

Interagency Acquisition reimbursement amounts are for...

Back 136

actual costs, not fees.

Front 137

MIPR:

Back 137

Military Interdepartmental Purchase Request
DD forms 448 and 448-2
to document Interagency Acquisition transactions.

Front 138

Project Order Statute:

Back 138

Orders for approved projects for government owned establishments are considered obligations in the same manner as in commerical contracts.

Front 139

GOGO

Back 139

Government Owned Government Operated

Front 140

Government Owned (2):

Back 140

1. DoD owned and operated
2. 50% of work done in house

Front 141

Approved project (3):

Back 141

1. Non-serverable
2. Production, overhaul, maintenance, research of weapons, vehicles, ammo, clothing
3. Some engineering and construction

Front 142

Project Orders procedural requirements (5):

Back 142

1. No D&F required
2. Process using MIPR
3. Specific, definite, certain
4. Starts w/o delay at acceptance (w/in 90 days)
5. P-T-A

Front 143

Project Orders fiscal matters (3):

Back 143

1. Reimbursable basis only
2. Obligated when order accepted
3. De-obligation generally not required

Front 144

Rule: If a more specific authority applies,...

Back 144

use it, instead of the Economy Act.

Front 145

Commonly used Non-Economy Act authorities (4):

Back 145

1. GETA - Gov't Employees Training Act
2. Required sources (GSA Advantage, etc.)
3. Clinger-Cohen Act
4. Franchise Funds

Front 146

Clinger-Cohen Act:

Back 146

GWACs (Gov't Wide Acquisition Contract) for IT purchases.

Front 147

Franchise Funds can...

Back 147

charge fees.
Makes gov't operate more like a business.
Support services

Front 148

T/F As long as the MIPR is accepted by 30 September, we're good to go.

Back 148

False

Front 149

Fiscal Law is about...

Back 149

spending the government's money the right way.

Front 150

Contract Law is about...

Back 150

how to acquire stuff.

Front 151

Repair (2):

Back 151

1. Requires a failed or failing state
2. Different from construction

Front 152

All military construction under $750K...

Back 152

can be funded with O&M.

Front 153

LHS:

Back 153

Life, Health, and Safety
Raises construction funding threshold

Front 154

UMMC:

Back 154

Unspecified Minor Military Construction
$750K - 2mil

Front 155

Specified Military Construction is for over...

Back 155

$2mil

Front 156

Construction funding sources (5):

Back 156

1. Below $750K - O&M
2. $750K - 2mil - UMMC
3. Over $2mil - Specified
4. Contigency Construction (e.g. Afghanistan)
5. RDT&E

Front 157

Project-splitting:

Back 157

ILLEGAL
to keep parts under funding threshold

Front 158

Incrementation:

Back 158

ILLEGAL
to build interdependent parts sequentially to keep under funding threshold

Front 159

Facilities that have a common support purpose but are not mutually independent are...

Back 159

interrelated

Front 160

Facilities with mutually independent supporting functions are...

Back 160

interdependent

Front 161

Who classifies work necessary to complete a construction project?

Back 161

DPW (Facility Engineer)

Front 162

Funded costs are...

Back 162

compared to relevant thresholds.

Front 163

Unfunded costs are...

Back 163

added to funded costs to determin the total project cost.

Front 164

RLB

Back 164

Relocatable Building
Personal Property, not construction

Front 165

80/20 Rule:

Back 165

If 80% of a building is recoverable, it's an RLB

Front 166

Construction Funding Checklist (5):

Back 166

1. Define the scope of the project
2. Classify the work (construction, maintenance, repair)
3. Determine funded/unfunded costs
4. Select proper appropriation
5. Identify proper approval authority

Front 167

There no general deployment exception to...

Back 167

fiscal law

Front 168

An authorization is Congress saying...

Back 168

This is how you can spend the money we've given you.

Front 169

DoDAA:

Back 169

DoD Appropriations Act

Front 170

An appropriation actually...

Back 170

draws from the Treasury
as opposed to an authorization

Front 171

Little "t" Training:

Back 171

Interoperability Training for foreigners
Narrow in scope
Exception to foreign assistance

Front 172

Big "T" Training:

Back 172

Security Assistance Training
More formal
More oversight

Front 173

5 Ws:

Back 173

1. Who benefits?
2. What is involved?
3. When is the obligation?
4. Where is the performance?
5. Why are we performing (purpose)?

Front 174

LSSS:

Back 174

Logistics, Support, Supply, Services

Front 175

ACSA:

Back 175

Acquisition & Cross Servicing Agreements
Foreign countries

Front 176

AoA:

Back 176

Acquisition Only Authority

Front 177

LSSS is not...

Back 177

Significant Military Equipment (SME)

Front 178

SME:

Back 178

Significant Military Equipment

Front 179

PIK:

Back 179

Payment In Kind

Front 180

RIK:

Back 180

Replacement In Kind

Front 181

EVE:

Back 181

Equal Value Exchange

Front 182

ASFF:

Back 182

Afghan Security Forces Fund

Front 183

CERP:

Back 183

Commanders Emergency Response Program
Afghanistan

Front 184

OHDACA:

Back 184

Overseas Humanitarian, Disaster and Civic Aid

Front 185

HCA:

Back 185

Humanitarian & Civic Assistance

Front 186

HCA Funding Sources (3):

Back 186

1. OHDACA
2. O&M
3. Unit O&M

Front 187

SAMM:

Back 187

Security Assistance Management Manual

Front 188

We can transport NGO relief supplies...

Back 188

on a Space Available basis.

Front 189

FDA:

Back 189

Foreign Disaster Assistance

Front 190

Coming to work in the absense of an appropriation to pay salary...

Back 190

is prohibited as voluntary services
and and ADA violation.

Front 191

Funding gap:

Back 191

previous appropriation expires without a new one,
or continuing resolution.

Front 192

During a spending gap, multi-year appropirations...

Back 192

continue unimpeded.

Front 193

Things authorized by law during a funding gap (4):

Back 193

1. Mulit-year/No-year funds
2. Statutes that expressly permit obligations in advance of appropriations.
3. Things implied by other laws
4. Things necessary and incident to the execution of constitutional powers

Front 194

Continuing Resolution Authority (CRA) def:

Back 194

appropriation act that provides budget authority for federal agencies, specific activities, or both to continue in operation when Congress and the President have not completed action on the regular appropriation acts by the beginning of the fiscal year.
- Stop gap measure
- No new authority
- Amount based on last year's authority

Front 195

Judgement Fund:

Back 195

for judgements against an agency
Treasury pays
Unlimited

Front 196

Settlement:

Back 196

administrative determination that disposes of a claim

Front 197

Compromise settlement:

Back 197

agreement by parties based on mutual concessions.

Front 198

Judgement:

Back 198

a decision issued by a court

Front 199

Award:

Back 199

a decision issued by a board

Front 200

Judgement fund cannot be used for...

Back 200

settlements (except DoJ Compromise Settlements).

Front 201

To pay settlements, if correct funds are closed...

Back 201

use current funds.

Front 202

To pay settlements, if correct year funds are expired...

Back 202

use them.

Front 203

To pay settlements, if correct year funds are expired but exhausted (2)...

Back 203

1. ask Congress for money
2. Turn settlement into a Consent Judgement

Front 204

If you don't have proper year funds to pay a settlement, you must (2)...

Back 204

1. Co-ordinate with ASA (FM)
Assistant Secretary of the Army for Financial Management
2. Turn it into a Consent Judgement and use the Judgement Fund

Front 205

Purposes of the Judgement Fund (4):

Back 205

1. Provide authority to pay judgements
2. Ease administrative burdens
3. Decrease the time between award and payment
4. Decrease the amount of interest

Front 206

Final Settlement =

Back 206

loss of right to appeal

Front 207

We have to pay back the Judgement Fund if (2)...

Back 207

1. NO FEAR Act
2. Construct Disputes Act

Front 208

Transfer:

Back 208

movement of money between appropriations
ILLEGAL w/o statutory authority

Front 209

Intra-Agency Transfer examples (2):

Back 209

1. DoD O&M to Amry O&M
2. AF RDT&E to AF O&M

Front 210

Inter-Agency Transfer example:

Back 210

Dept. State to DoD

Front 211

Earmarks:

Back 211

moving funds into or out of a fixed earmark

Front 212

Transfer Fund Appropriations:

Back 212

holds money until transferred into another appropriation

Front 213

Reprogramming:

Back 213

shifts money within an appropriation
- No change in amount available
- Reapplication of funds (w/in an appropriation)

Front 214

Reprogramming uses funds...

Back 214

in an appropriations account for purposes other than those comtemplated at the time of the appropriation.

Front 215

Items eligible for reprogramming (2):

Back 215

1. higher priority than the original, unforseen military requirements
2. FMR programming rules

Front 216

Items ineligible for reprogramming:

Back 216

Items Congress has denied

Front 217

Reprogramming Types (2):

Back 217

1. Non-construction
2. Construction

Front 218

Types of non-construction reprogramming (3):

Back 218

1. with prior congressional approval
2. internal reprogramming
3. below threshold reprogramming

Front 219

Congress prohibits using reprogramming to fund...

Back 219

a "new start", unless it's for immediate national security

Front 220

Military construction reprogramming must be submitted to...

Back 220

DoD Comptroller

Front 221

Congressional approval is required for Military Construction reprogramming if (4)...

Back 221

1. increase of 25% or more of reprogramming base or $2mil, whichever is less
2. increase for Unspecific Military Construction (UMMC)
3. BRAC projects
4. Family housing relocation

Front 222

Military Construction Reprogramming is robbing...

Back 222

Peter to pay Paul.

Front 223

Accountable Offficer:

Back 223

responsible for, or has custody of government funds

Front 224

I'm not...

Back 224

an accountable officer.

Front 225

Accountable Officers (types):

Back 225

Certifycing Officers (no custody of funds)
Disbursing Officers
Collecting Agents
DoD Departmental Accountable Officials

Front 226

Certifying Officer certifies...

Back 226

vouchers for payment
checks for correctness
checks if legally permissible
is designated in writing

Front 227

Disbursing Officers actually...

Back 227

make payments
check vouchers
are designated in writing

Front 228

Disbursing Agent:

Back 228

receives or disburses funds
cashiers
paying agents
collecting agents
change fund custodians
Imprest fund cashiers

Front 229

Stricly liable:

Back 229

liable for the full amount of the loss or erroneous payment

Front 230

Exceptions to strick liability (4):

Back 230

1. DoD Departmental Accountable Officials
2. Acts of God or public enemy
3. Payments for a properly certified voucher
4. Advance decisions and relief

Front 231

Advance decision:

Back 231

Asking (GAO) for an advanced legal opinion before spending funds.

Front 232

Relief:

Back 232

Happens after to absolve or excuse liability

Front 233

DoD forwards requests for advance decisions to...

Back 233

General Counsel, not GAO

Front 234

To find DoD Departmental Accountable Officials liable...

Back 234

there must be fault/negligence

Front 235

*Funds available for obligation in FY1 can be used to purchase items not needed until FY2 if:

Back 235

There is a necessary non-excessive delivery lead-time that forces the command to order the items in FY1 so they can be delivered when the unit needs to use them.

Front 236

*Someone used an RDT&E appropriation to fund a purchase. Its purchase should have been funded with a Procurement appropriation. They want to know what is necessary to avoid an Antideficiency Act violation for violating (the Purpose Statute).

Back 236

ADA violation is correctable if (1) proper funds were available at the time of the erroneous obligation, and (2) proper funds are available when the agency discovered, and corrected the erroneous obligation.

Front 237

*Under an acquisition and cross-servicing agreement (ACSA), a country can "pay" for goods or services this way:

Back 237

They are specifically reimbursable by statute in one of three ways: payment in kind (cold hard cash), equal value exchange ($100 in tents for $100 in generators), or replacement in kind (tents for tents)

Front 238

*An accountable officer is not liable for an improper payment:

Back 238

if the accountable officer obtained an advance decision from the proper authority and the improper payment was made in reliance on that advanced decision, or if he's a DoD Departmental Accountable Official and there was no fault or negligence

Front 239

*Accountable officers can be held pecuniarily liable:

Back 239

The statute of limitations for settling the accounts of an accountable officer is three years after accounts are substantially complete. “Substantially complete” means the time when, absent fraud by the officer, the agency can audit the paperwork upon which the officer based his actions. The statute of limitations is not triggered until the loss has been discovered if the loss is due to embezzlement, fraud or other criminal activity.

Front 240

*You must spend less than what amount to use Operations and Maintenance, Army for a computer system?

Back 240

$250,000.

Front 241

*You are awarding Meritorious Service Medals (MSM). You intend to have a local art frame shop frame each awardee's award certificate. In addition, you plan to purchase cake and punch. Assuming you intend to use appropriated funds to make these purchases, is there anything wrong with these intended purchases?

Back 241

Yes. The military awards statute, only gives us the authority to issue the actual military awards/certificates of award. It does not allow you to incur any other expenses to honor the award recipients' accomplishments. Therefore, neither the cake and punch nor the frames may be purchased with appropriated funds.

Front 242

*The fiscal year for the U.S. Government is a 12-month period from:

Back 242

1 October through 30 September.

Front 243

Any obligation of appropriated funds must comply with which of the following fiscal constraints:

Back 243

The Bona Fide Needs Rule.

Front 244

*A contractor was successful on a claim that was filed on a 2005 construction project. The contractor's claim was based on an in-scope modification and the agency is responsible for paying the claimed amount. Fortunately, the funds which funded the original contract are not yet closed. Unfortunately, the expired funds which funded the original contract are exhausted. How should the agency handle this judgment?

Back 244

The contracting officer should seek payment from the Judgment Fund and reimbursement using current funds.

Front 245

*How long does the Department of Defense Financial Management Regulation give an individual discovering a possible Antideficiency Act violation to report it to his/her chain of command and the Financial Management Comptroller?

Back 245

2 weeks.

Front 246

*A unit is conducting a month-long Combined Airborne Parachute Exercise with the country of Romania. The Romanian troops are all already airborne qualified, have successfully completed multiple jumps, but have never jumped from a U.S. C-130 before. The Brigade S3 (operations officer) wants to conduct a two-hour block of instruction for the Romanians on C-130 exit safety procedures. Can the unit provide the training?

Back 246

The unit may fund it with O&M, because it is for Interoperability, Familiarization, and Safety training (little "t" training).

Front 247

*When operating under Continuing Resolution Authority, government agencies:

Back 247

May obligate funds for new contracts, but only if the new contract is not a “new start.”

Front 248

*On 1 September 2010 a Contracting Officer properly awards a contract to ABC Corporation for 1000 widgets. The widgets are delivered on 1 November 2010. The Contracting Officer correctly determined that the "lead-time" exception for supplies was applicable under the circumstances. The government paid ABC Corporation on 15 November 2010. What day did obligation of funds for this contract occur?

Back 248

1 September 2010

Front 249

*Which is the most likely example of a project that would be appropriate under the Commanders' Emergency Response Program (CERP)?

Back 249

Rebuilding of a small health clinic in Gahzni, Afghanistan which was damaged during combat operations, and which is the only health clinic in the area.

Front 250

*When an agency “reprograms” funds, there is no change in the total amount available in the appropriations account. T/F

Back 250

True.

Front 251

*In accordance with Army Regulations, construction projects which have a common support purpose but are not mutually dependent are funded as separate projects. T/F

Back 251

True

Front 252

*Someone proposed tearing down a building and constructing a new one on the site where the old one was located. Construction will cost about $4.8 million dollars. If approved, which type of funds should be used to fund the construction?

Back 252

Military Construction Funds (MILCON).

Front 253

*Why don't we do the foundation work this year with current (FY 2012) O&M funds, then next year finish up the project with 2013 O&M funds? Each contract will be less than $750,000." You give the following correct advice.

Back 253

Splitting a project between fiscal years for the sole purpose of avoiding the statutory limits on use of O&M funds is clearly illegal. This project cannot be funded by splitting the requirement into two contracts if the total cost exceeds $750,000 and O&M funds are used.

Front 254

*A Commander decides to give a Commander’s Coin for Excellence to everyone. Giving the coins was:

Back 254

proper only if the coins were purchased with personal funds.

Front 255

Someone wants to use appropriated funds to buy a refrigerator and a microwave. You respond by telling him:

Back 255

Food preparation and storage equipment may now be purchased with appropriated funds, so long as the primary benefit of its use accrues to the agency and the equipment is placed in common areas where it is available for use by all personnel.

Front 256

*Some of the permissible reasons for reprogramming of military construction and family housing funds are that reprogramming is necessary in response to:

Back 256

Departmental adjustments or reprogrammings may be required for a number of reasons including but not limited to: responding to emergencies; restoring or replacing damaged or destroyed facilities; accommodating unexpected price increases; and implementing specific program provisions provided for by Congressional Committees.

Front 257

*KO awards a contract on 20 September 2010 for $10 million inadvertently committing an ADA violation by causing the Army to exceed the amount available in its FY 2010 O&M appropriation. Which of the following is correct:

Back 257

the DOD FMR provides that the investigation report must assign responsibility for the violation to “one or more individuals” so that “appropriate administrative or disciplinary action” may be imposed. DOD FMR, vol. 14, ch. 5, para. 050301. Generally, the responsible party (or parties) will be the highest ranking official in the decision making process who had actual or constructive knowledge of precisely what actions were taken and the impropriety or questionable nature of such actions.

Front 258

*You're a Government Commercial Purchase Card (GCPC). Your boss serves as the certifying official for the GCPC holders in your office. You used your GCPC to pay for a BBQ. It is now 1 November and someone is questioning the purchase. Which statement is true?

Back 258

Your boss could be held pecuniarily liable if the purchase is found to be improper.

Front 259

*Operations and Maintenance appropriations are typically available for obligation for:

Back 259

1 year.

Front 260

*The Anti-deficiency Act (ADA):

Back 260

Evolved over time through a number of statutes designed to stop abuses of fiscal law.

Front 261

*The Advance Payment Prohibition says that a government agency is not required to pay until:

Back 261

A service or product has been completed or delivered.

Front 262

*Appropriations are federal funds identified by unique 4 digit codes referred to as:

Back 262

Treasury Account Numbers.

Front 263

*Prior year OMA funds may be used for:

Back 263

Prior year obligation adjustments.

Front 264

*Which of the following are true statements about preparing PR&C using multiple funds?

Back 264

Expenditures must be properly allocated to each funding source.

Obligations should reflect proper distribution of line items and instruct the contractor who to invoice correctly.

Front 265

*Civil works appropriations are generally:

Back 265

Indefinite funds.

Front 266

*Once an appropriation is no longer considered available but before it is officially closed, it is said to be in what phase?

Back 266

Expired

Front 267

*While working an important government client's contract you notice funds have been used inappropriately. The customer asks you not to mention it or he'll take his business elsewhere. What is the best course of action?

Back 267

Take the necessary steps to fix the problem--even if it means losing a customer.

Front 268

*When preparing a PR&C, you must:

Back 268

Select the appropriate resource code, work category, and work category element.

Include POCs for technical, contractual, and financial items.

Front 269

*The P2 System can be used for which of the following activities?

Back 269

Resourcing

Budgeting

Reporting

Scheduling

Front 270

*Procurement appropriations are typically 3-year funds and are used to purchase:

Back 270

Military equipment, tanks, and planes.

Front 271

*What is the name of the law enacted in 1932 that allows federal agencies to order goods and services from other federal agencies?

Back 271

Economy Act

Front 272

*Which of the following projects would require S&A costs to be factored into the cost necessary to complete the work when the reimbursable order is received?

Back 272

Design projects

Facilities, maintenance, and repair

Front 273

*If USACE overpays a vendor, what action should be taken when the money is refunded?

Back 273

The money should be credited to the account from which it was originally paid.

Front 274

*Bona Fide need:

Back 274

Applies only to limited year funds.

Front 275

*Flash reports are:

Back 275

Required when there is an apparent ADA violation.

Front 276

*What should you do if you're not certain about the proper response to an item in an PR&C?

Back 276

Check with the financial or budget POCs.

Front 277

*According to the Bona Fide Needs Rule, which of the following statements is correct?

Back 277

Appropriations may be obligated to meet a need arising in, or some time before, the fiscal year for which the appropriation was originally designated.

Front 278

*Closed appropriations are:

Back 278

No longer available for any purpose, any remaining funds must be returned to the Treasury as miscellaneous receipts.

Front 279

*When you approve funds in CEFMS, you are doing which of the following?

Back 279

Certifying the application of the funds meets the fiscal requirements for the Purpose, Time, and Amount Statutes.

Accepting responsibility and accountability for this action.

Front 280

*When issuing a Project Order, which of the following criteria must be met?

Back 280

It must be a legitimate need of the current year and must be certified to that effect by the ordering command.

It must have definite time for completion, a definite scope of work (i.e. deliverable), and funds must cover the entire project.

It must be DoD reimbursable.

It must utilize military customers.

Front 281

*A bona fide need inquiry focuses on:

Back 281

The timing of the obligation of funds and wheter that obligation is for a current need of the government.

Front 282

*Appropriations that can be used for in-scope modifications but not for new obligations are said to be which of the following?

Back 282

Expired appropriations

Front 283

*Which of the following guidelines are established by the Purpose Statute?

Back 283

Appropriated funds may only be used for the specific purposes outlined in the appropriations act or as otherwise provided by law.

Front 284

*How many officials (besides the originator) should approve a contract PR&C?

Back 284

2--An Approving Official and a Certifying Official

Front 285

**What are the basic statutes that guide appropriation spending?

Back 285

Purpose, Time, and Amount

Front 286

**As stated in the Constitution, who holds the "Power of the Purse"?

Back 286

Congress

Front 287

**Which of the following is NOT a major source of USACE funding?

Back 287

Military Personnel (MILPERS) Appropriation Acts

Front 288

**Which of the following guidelines are established by the Purpose Statute?

Back 288

Appropriated funds may only be used for the specific purposes outlined in the appropriations act as otherwise provided by law.

Front 289

**According to the Necessary Expense Rule, which of the following statements is true?

Back 289

An expediture is permissable if it is reasonably necessary in carrying out an authorized function or will contribute materially to the effective accomplishment of that function.

Front 290

**Which of the following must be true in order for an obligation to be considered as a necessary expense?

Back 290

Not within the scope of other appropriation

Necessary and incidental

Not prohibited by law

Front 291

**Which of the following are authorized uses of appropriated funds?

Back 291

Food at a conference that cannot be separated from the conference fee.

Front 292

**According to the Time Statute, which of the following statements is correct?

Back 292

Agencies must obligate appropriations during their period of availability/

Front 293

**Operation and Maintenance (O&M) and Military Personnel (MILPERS) appropriations are typically:

Back 293

1 year funds

Front 294

**If an out-of-scope modification to a contract results in an increased cost, what funds should be used to pay for the increase?

Back 294

Funds from the year in which the modifications were made.

Front 295

**According to the Bond Fide Needs Rule which of the following statements is correct?

Back 295

Appropriations must be obligated to meet the need arising in, or sometimes before, the fiscal year in which the appropriation was originally designated.

Front 296

**The Advance Payment Prohibition says that a government agency is not required to pay until _____.

Back 296

A service or product has been completed or delivered.

Front 297

**Which of the following restrictions are declared in the Amount Statute?

Back 297

Do not spend more money than is available.

Do not incur an obligation in advance of an appropriation.

Front 298

**A contracting officer may obligate in excess of, or contract in advance of and appropriation only if:

Back 298

Authorized by law

Front 299

**Which of the following are prohibited by the Anti-deficiency Act?

Back 299

Making an expenditure or creating an obligation in excess of the amount available in the appropriation or fund unless authorized by law.

Involving the government in a contract or obligation for the payment of money in advance of appropriations made for such purposes, unless the contract or obligation is authorized by law.

Accepting voluntary services for the US, or employing personal services in excess of that authorized by law, except in cases of emergency involving the safety of human life or the protection of property.

Making obligations or expeditures in excess of an appointment or reappointment, or in excess of the amount permitted by agency regulations.

Obligating any amount in excess/advance of available funds.

Front 300

**The Miscellaneous Receipts Statute prohibits which of the following?

Back 300

Keeping the registration fee collected from conference participants in excess of the cost of the conference.

Front 301

**What are the Army values?

Back 301

Loyalty

Duty

Respect

Selfless Service

Honor

Integrity

Personal Courage

Front 302

**Who is responsible for reviewing the actions of COs and DAOs under their control to ensure adherence to establish policy, procedures, and internal controls?

Back 302

Supervisors

Front 303

**When you approve funds in CEFMS, you are doing which of the following?

Back 303

Accepting responsibility and accountability for this action.

Certifying that the application of the funds meets the fiscal requirements for the Purpose, Time, and Amount Statutes.

Front 304

**Funds management stakeholders may include which of the following?

Back 304

Contracting

Resource Management

Office of Counsel

Front 305

**What are some of the key questions that should be asked by the Project Manager before approving the funds?

Back 305

What does the customer want?

What type of contract action is contemplated?

When does the action need to be done?

What kind of money do I need?

Front 306

**The P2 System can be sued for which of the following activities?

Back 306

Resourcing

Budgeting

Scheduling

Reporting

Front 307

**How many officials (besides the originator) should approve a contract PR&C?

Back 307

2--An Approving Official and a Certifying Official

Front 308

**What should do if you're not certain about the proper response to an item in a PR&C?

Back 308

Check with financial or budget POCs.

Front 309

**While working with an important government client's contract you notice funds have been used inappropriately. The customer asks you not to mention it or he'll take his business elsewhere. What is the best course of action?

Back 309

Take the necessary steps to fix the problem--even if it means losing a customer.

Front 310

**Which of the following are true statements about preparing a PR&C using multiple funds?

Back 310

Obligations should reflect proper distribution of line items and instruct the contractor how to invoice correctly.

Expenditures must be properly allocated to each funding source.

Front 311

**Operations and Maintenance (O&M) Army construction projects are subject to which of the following spending limitations?

Back 311

Minor construction less than $750K

Front 312

**What is the name of the law enacted in 1932 that allows federal agencies to order goods and services form other federal agencies?

Back 312

Economy Act

Front 313

**When issuing a Project Order, which of the following criteria must be met?

Back 313

It must be DoD reimbursable.

It must utilize military customers.

It must meet a legitimate need of the current year and must be certified to that effect by the ordering command.

It must have definite time for completion, a definitive scope of work (i.e. deliverable), and funds must cover the entire project.

Front 314

**Which of the following projects would require S&A costs to be factored in to the cost necessary to complete the work when the reimbursable order is received?

Back 314

Facilities, maintenance and repair

Minor construction

Design projects

Front 315

Appropriated USACE funds may not be obligated until...

Back 315

they have been received and entered into CEFMS.

Front 316

USACE policy targets 100% obligation of...

Back 316

Civil Works (CW) General Expenses appropriation within one year (even though CW appropriations are no-year appropriations).

Front 317

Other Civil Works (CW) appropriations are directed by HQUSACE to...

Back 317

be 95-100% obligated and expended within one year.

Front 318

An example of a severable service contract (can be separted into components) would be...

Back 318

janitorial services

Front 319

A non-severable service is essentially...

Back 319

a single undertaking that cannot feasibly be subdivided, produces a single unified outcome, product or report that cannot be subdivided for separate performance in different fiscal years.

Front 320

An example of a non-severable service might be...

Back 320

an IT project or development of a computer based training (CBT).

Front 321

For non-severable service contracts, the entire effort must be...

Back 321

funded with money available for obligation at the time the contract was awarded.

Front 322

Supervision & Administration (S&A) expeneses are generally considered...

Back 322

non-severable, because they are not contracted.

Front 323

Contract work should not begin until...

Back 323

funds are obligated in CEFMS.

Front 324

Augmentation occurs when...

Back 324

appropriated funds are supplimented by other sources (violation without specific statutory authority to do so).

Front 325

An accountable official is responsible...

Back 325

for the custody of government funds.

Front 326

Accountable officials can be...

Back 326

liable formistakes

punished administratively, financially, or both

for approving improper purchases

Front 327

Accountable officials include:

Back 327

Certifying Official (CO)

Dispersing Official (DO)

Departmental Accountable Official (DAO)

Some supervisors

Front 328

For USACE, the disbursing function (DO) is...

Back 328

maintained at the USACE Finance Center, Millington, TN

Front 329

Some DAO responsibilities include:

Back 329

Approve/certify purchase requests

Approve/accept customer orders

Approve/certify travel orders

Obligate funds

Obligate supervision & administration (S&A)

Approve cost transfer transactions

Front 330

Pecuniary liability:

Back 330

the legal obligation to compensate for loss or improper application of funds resulting from failure to properly perform assigned responsibilities.

Front 331

PR&C:

Back 331

Purchase Request & Commitment - a request for goods or services

Front 332

PR&Cs administratively...

Back 332

reserve (commit) funds in anticipation of an obligation.

Front 333

A PR&C Certifying Official should be different...

Back 333

from the Approving Official and orginator.

Front 334

For each separate source of funds...

Back 334

a different line item is required.