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334 Cards in this Set

  • Front
  • Back
An appropriation...
draws funds from the treasury and provides basic purpose.
An authorization...
provides additional purposes for the use of an appropriation.
Congress has the power...
of the purse.
The expenditure of funds in only proper when...
authorized by Congress.
Appropriations Act Process (5):
1. HASC House Armed Services Committee
2. SASC Senate Armed Services Committee
3. Conference Committee
4. House & Senate vote
5. President signs
Important appropriations for Army (2):
1. Defense
2. Military/Veterans (includes military construction)
Sets policy for DoD (spending?) (2):
HASC (House Armed Services Committee)
SASC (Senate Armed Services Committee)
National Defense Authorization Act
NDAA process (5):
3. Conference Committee
4. House & Senate vote
5. President signs
Efficiency & cost savings...
are not factors for fiscal law
Pots of money (5):
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
Emergency Extraordinary Expenses
Other Procurement Army
GAO is...
an arm of congress
Examines use of taxpayer funds
Necessary Expense Doctrine (3 part purpose test):
1. Is it necessary and incident to an appropriations purpose?
2. Must not be prohibited
3. Must not be provide for otherwise
If two or more appropriations are available...
use the more specific of the two.
Expense Investment Threshhold:
distinguishes between expense & investment items
(short & long duration items)
Expenses are...
consumed in operating and maintaining with a couple years
and they are ALL services
Investments are...
items that have a long life span and become capital assets of DoD.
(furniture, IT equip.)
Expenses are generally paid for out of ($ pot)...
Investments are paid for out of ($ pot)...
Consolidated Appropriations Act:
O&M may be used to purchase up to $250K of investment (instead of Procurement which most commanders don't have access to).
Election Option:
DoD must use O&M for all investment items < $250K
If muliple items are interconnected...
they are a system.
$259K of door CAC readers...
is an interconnected system and has to be paid for out of the Procurement pot (> $250K), not out of O&M.
$173K of (interconnected) CCTV equipment...
is a system, and can be paid for out of O&M (< $250K).
Desktop computers are not...
considered a system. They stand alone.
Centrally managed systems are funded by ($ pot)...
If you can get it from the supply chain,...
it's likely centrally managed and therefore paid for with Procurement.
Fund Cite (code) contains
Agency, FY, type of appropriation
or for Army
Agency, type of appropriation, years of availability, FY of funds
Typical questionable expenses (list):
Bottled Water
Food Storage Prep. Equip.
Personal Office Furniture/Equip.
Business Cards
Fines and Penalties
Licenses and Certficates
No Severable Cost:
A cost is included/can't be separated
-has to be cost effective
Food can only be purchased for meetings or conferences...
if participants are on travel status.
Bottled water is...
a personal expense, unless water is unavailable or unpotable. Drink tap water.
Awards must be paid for out of...
appropriated funds.
Dangling Participles of Purpose (in 2 manners):
1. Augmentation
2. Miscellaneous Receipts
Augmentation :(
You can't augment a pot of money out of another pot, or with any other sources.
Augmenting a pot of money can violate (4):
1. The Constitution
2. The Purpose Statute
3. The Anti-Deficiency Act
4. The Miscellaneous Receipts Statute
Miscellaneous Receipts Statute:
If you get money that's not from Congress, you have to give it to the Treasury.
Funds =
appropriations, "colors" or "pots" of money
Each fund is different with respect to (3):
1. Purpose
2. Time
3. Amount
Things you buy in September...
must be needed in that FY.
Single year appropriations are only good...
til the end of the FY
"Fencing Off" is...
an admin tool to verify sufficient funds exist.
No legal consequences
Can be undone
the event that creates a legal liability to pay
Usually a contract award
actual payment
Bona Fide Needs Rule:
You have to need and and buy it in the year the money is available
Bona Fide Needs Mantra:
Current year funds for current year needs
Bona fide need for a supply:
Need occurs in the fiscal year it will be used.
Bona fide need for a service (2 types):
1. Severable - when work is performed
2. Non-severable - when work must start
Bona fide need for construction:
when a building must be started in order to have it completed on time
Bona fide need exceptions (3):
1. Delivery time
2. Production lead time
3. Stock level
Delivery time exception to bona fide need:
can order if delivery won't happen utnil following FY
*Gov't can't ask for later delivery date
Production lead exception to bona fide need:
can order is it won't be produced until following FY
Bona Fide:
real or genuine
Stock level exception to bona fide need:
to replenish current supplies
no more than a normal year's worth
buying more than you expect to use in the next FY, or more than you used last FY
Severable services characteristics (3):
1. repeatable
2. recurring
3. identical (or nearly so)
(e.g. cleaning service)
Non-severable services characteristics (2):
1. one end product
2. indivisible - can't be broken into parts
(e.g. produce a report)
Construction is generally considered a _____ service.
only one outcome - the completed building
Training is generally considereda a _____ service.
*multiple training course may be severable
"X Year" funds:
available for obligation until expended
No expiration date
No bona fide need rules
Funds are expired...
for five years, but remain available to adjust old obligations.
After five years, expired funds are...
They go back to the Treasury.
The legal implications of obligation are...
Antideficiency Act
Antideficiency Act:
Can't spend more than Congress gave you
Fiscal Control (3 Levels):
1. Appropriation
2. Apportionment
3. Formal Administrative Subdivision
Appropriation (Fiscal control #1) (2):
1. Can't spend IN EXCESS OF an appropriation
2. Can't spend IN ADVANCE OF an appropriation
Antideficiency Act Exceptions (2):
1. Multi-year contracts (in advance) (e.g. maintain aircraft on remote island)
2. Feed and Forage Act
Antideficiency Act Quasi-Exception:
SAF Exception
Subject to Availability of Funds
Contract says nothing is exchanged until
Apportionment (Fiscal control #2):
OMB distributes money to DoD Comptroller
Can't exceed this amount
Exceptions to exceed apportionment (3):
1. Military and civilian pay increases
2. Laws enacted after budget submission which require additional expenditures
3. Emergencies involving life or property
Formal Adminstrative Subdivision (Fiscal Control #3) (does 3 things):
1. Further divides apportionments
2. Restricts amounts of obligations and expenditures
3. fix responsibility
(e.g. an allocation to the Army)
The Army allocates money to...
major commands
The Army's major commands give money in two ways:
1. allotment
2. allowance
An allotment:
a formal subdivision
An allowance:
an informal subdivision
Formal administrative subdivisions (2):
1. Allocation
2. Allotment
Subject to ADA violations
Informal administrative subdivisions (3):
1. Allowance
2. Target
3. Advisory Guide
Not subject to ADA violations at this level
Antideficiency Act violations (3):
1. Purpose
2. Time
3. Amount
A purpose violation is not an ADA violation if...(2)
1. Proper funds are available at the time of obligation
2. Proper funds are available at the time of correction
If wrong funds (wrong appropriation or wrong year) have been obligated, you must...
de-obligate wrong funds & obligate right funds
Must perform funding correction
Volutary services prohibition:
Can't accept voluntary services, unless...
1. student interns
2. gratuitous services
Voluntary credit prohibition:
Employees can't pay a gov't obligation
Who's accoutable (3)?
1. Commanding officers
2. Budget officers
3. Fiscal officers
ADA penalties for civilians (4):
1. reprimand
2. reduction in grade
3. suspension w/o pay
4. removal
ADA penalties for military (2):
2. Administrative action
ADA criminal penalties (2):
1. $5,000
2. 2 yrs confinement
Class E felony is knowing and willful
Report suspected violations (3):
1. FMR w/in 2 weeks - chain of command
2. DFAS immediately - RM Director
3. Flash report 15 days
Preliminary investigations are completed...
w/in 14 weeks of initial discovery
Formal investigations are completed...
w/in 12 months of prelimary review's end
Investigation notification letters go to (3):
1. GAO
2. Congress
3. The President
the unofficial reservation of funds based on preliminary negotiations, but no obligation permitted without subsequent commitment/certification.
Initiation at the strategic level:
may involve asking DoD to budget funds
Process = PPBES - Planning Programming, Budgeting & Execution System
Planning Programming, Budgeting & Execution System
POM Cycle
Program Objective Memorandum
unofficial administrative reservation of funds "fencing off" based on firm procurement requests
Certification of fund availability:
certification that funds are available to cover obligations.
Authorizes subsequent to obligation.
Arm official responsible for administrative control of the affected subdivision, and signs the commitment:
Amoun to commit (2):
1. Estimated procurement cost
2. Conservative estimate of contingent liabilities
Types of contracts (2):
1. Fixed price
2. Cost reimbursement
Contingent liability:
[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
Conservative estimate of the contingent liability:
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.
Chronological steps in fiscal contracting (5):
1 Initiation
2. Commitment/Certification of funds
3. Obligation of funds
4 Recording of obligations
5. Disbursement
Certification (5):
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
Obligation (6):
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
Firm Fixed Price [contract]
Blanket Purchase Agreement
Indefinite Delivery / Indefininte Quantity
Indefinite Delivery / Definite Quantity

Generic Base + Options contract
Options are...
natural breaking points in a contract
Options are not...
Does DoD obligate options?
Does a requirements contract involve a contingent liability?
What must be obligated at contract award of an ID/DQ?
the guaranteed minimum
What is our bona fide need with an ID/DQ?
bona fide need for the guaranteed minimum
BPA (4):
1. Not a contract
2. Anticipating repetitive orders for goods and services
3. An agreement to agree
4. Each individual order under contract
Firm Fixed Price with Economic Price Adjustment
Fixed Price with Award Fees
Fixed Price Incentive
Cost-Plus-Percentage of Cost
Cost Sharing
We mitigate risk through a...
cost ceiling
Relation-Back Theory/Antecedent Liability:
Going back to make adjustments using expired funds
unanticipated new requirement
anticipated small increase to original contract
Interagency Acquisition is an exception to...
the Purpose statute.
The key to Interagency Acquisitions is having...
statuatory authority to do so.
Interagency Acquisition Authorities (3):
1. Economy Act
2. Project Order Statute
3. Other Non-economy Act
The Economy Act control is...
a last resort, only if no other specific statutory authority is available.
Economy Act Goals (3):
1. Improve efficiency
2. Obtain economies of scale
3. Utilize existing expertise (e.g. buying ships)
Interagency Acquisition reimbursement amounts are for...
actual costs, not fees.
Military Interdepartmental Purchase Request
DD forms 448 and 448-2
to document Interagency Acquisition transactions.
Project Order Statute:
Orders for approved projects for government owned establishments are considered obligations in the same manner as in commerical contracts.
Government Owned Government Operated
Government Owned (2):
1. DoD owned and operated
2. 50% of work done in house
Approved project (3):
1. Non-serverable
2. Production, overhaul, maintenance, research of weapons, vehicles, ammo, clothing
3. Some engineering and construction
Project Orders procedural requirements (5):
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
Project Orders fiscal matters (3):
1. Reimbursable basis only
2. Obligated when order accepted
3. De-obligation generally not required
Rule: If a more specific authority applies,...
use it, instead of the Economy Act.
Commonly used Non-Economy Act authorities (4):
1. GETA - Gov't Employees Training Act
2. Required sources (GSA Advantage, etc.)
3. Clinger-Cohen Act
4. Franchise Funds
Clinger-Cohen Act:
GWACs (Gov't Wide Acquisition Contract) for IT purchases.
Franchise Funds can...
charge fees.
Makes gov't operate more like a business.
Support services
T/F As long as the MIPR is accepted by 30 September, we're good to go.
Fiscal Law is about...
spending the government's money the right way.
Contract Law is about...
how to acquire stuff.
Repair (2):
1. Requires a failed or failing state
2. Different from construction
All military construction under $750K...
can be funded with O&M.
Life, Health, and Safety
Raises construction funding threshold
Unspecified Minor Military Construction
$750K - 2mil
Specified Military Construction is for over...
Construction funding sources (5):
1. Below $750K - O&M
2. $750K - 2mil - UMMC
3. Over $2mil - Specified
4. Contigency Construction (e.g. Afghanistan)
5. RDT&E
to keep parts under funding threshold
to build interdependent parts sequentially to keep under funding threshold
Facilities that have a common support purpose but are not mutually independent are...
Facilities with mutually independent supporting functions are...
Who classifies work necessary to complete a construction project?
DPW (Facility Engineer)
Funded costs are...
compared to relevant thresholds.
Unfunded costs are...
added to funded costs to determin the total project cost.
Relocatable Building
Personal Property, not construction
80/20 Rule:
If 80% of a building is recoverable, it's an RLB
Construction Funding Checklist (5):
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
There no general deployment exception to...
fiscal law
An authorization is Congress saying...
This is how you can spend the money we've given you.
DoD Appropriations Act
An appropriation actually...
draws from the Treasury
as opposed to an authorization
Little "t" Training:
Interoperability Training for foreigners
Narrow in scope
Exception to foreign assistance
Big "T" Training:
Security Assistance Training
More formal
More oversight
5 Ws:
1. Who benefits?
2. What is involved?
3. When is the obligation?
4. Where is the performance?
5. Why are we performing (purpose)?
Logistics, Support, Supply, Services
Acquisition & Cross Servicing Agreements
Foreign countries
Acquisition Only Authority
LSSS is not...
Significant Military Equipment (SME)
Significant Military Equipment
Payment In Kind
Replacement In Kind
Equal Value Exchange
Afghan Security Forces Fund
Commanders Emergency Response Program
Overseas Humanitarian, Disaster and Civic Aid
Humanitarian & Civic Assistance
HCA Funding Sources (3):
2. O&M
3. Unit O&M
Security Assistance Management Manual
We can transport NGO relief supplies...
on a Space Available basis.
Foreign Disaster Assistance
Coming to work in the absense of an appropriation to pay salary...
is prohibited as voluntary services
and and ADA violation.
Funding gap:
previous appropriation expires without a new one,
or continuing resolution.
During a spending gap, multi-year appropirations...
continue unimpeded.
Things authorized by law during a funding gap (4):
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
Continuing Resolution Authority (CRA) def:
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
Judgement Fund:
for judgements against an agency
Treasury pays
administrative determination that disposes of a claim
Compromise settlement:
agreement by parties based on mutual concessions.
a decision issued by a court
a decision issued by a board
Judgement fund cannot be used for...
settlements (except DoJ Compromise Settlements).
To pay settlements, if correct funds are closed...
use current funds.
To pay settlements, if correct year funds are expired...
use them.
To pay settlements, if correct year funds are expired but exhausted (2)...
1. ask Congress for money
2. Turn settlement into a Consent Judgement
If you don't have proper year funds to pay a settlement, you must (2)...
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
Purposes of the Judgement Fund (4):
1. Provide authority to pay judgements
2. Ease administrative burdens
3. Decrease the time between award and payment
4. Decrease the amount of interest
Final Settlement =
loss of right to appeal
We have to pay back the Judgement Fund if (2)...
1. NO FEAR Act
2. Construct Disputes Act
movement of money between appropriations
ILLEGAL w/o statutory authority
Intra-Agency Transfer examples (2):
1. DoD O&M to Amry O&M
2. AF RDT&E to AF O&M
Inter-Agency Transfer example:
Dept. State to DoD
moving funds into or out of a fixed earmark
Transfer Fund Appropriations:
holds money until transferred into another appropriation
shifts money within an appropriation
- No change in amount available
- Reapplication of funds (w/in an appropriation)
Reprogramming uses funds...
in an appropriations account for purposes other than those comtemplated at the time of the appropriation.
Items eligible for reprogramming (2):
1. higher priority than the original, unforseen military requirements
2. FMR programming rules
Items ineligible for reprogramming:
Items Congress has denied
Reprogramming Types (2):
1. Non-construction
2. Construction
Types of non-construction reprogramming (3):
1. with prior congressional approval
2. internal reprogramming
3. below threshold reprogramming
Congress prohibits using reprogramming to fund...
a "new start", unless it's for immediate national security
Military construction reprogramming must be submitted to...
DoD Comptroller
Congressional approval is required for Military Construction reprogramming if (4)...
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
Military Construction Reprogramming is robbing...
Peter to pay Paul.
Accountable Offficer:
responsible for, or has custody of government funds
I'm not...
an accountable officer.
Accountable Officers (types):
Certifycing Officers (no custody of funds)
Disbursing Officers
Collecting Agents
DoD Departmental Accountable Officials
Certifying Officer certifies...
vouchers for payment
checks for correctness
checks if legally permissible
is designated in writing
Disbursing Officers actually...
make payments
check vouchers
are designated in writing
Disbursing Agent:
receives or disburses funds
paying agents
collecting agents
change fund custodians
Imprest fund cashiers
Stricly liable:
liable for the full amount of the loss or erroneous payment
Exceptions to strick liability (4):
1. DoD Departmental Accountable Officials
2. Acts of God or public enemy
3. Payments for a properly certified voucher
4. Advance decisions and relief
Advance decision:
Asking (GAO) for an advanced legal opinion before spending funds.
Happens after to absolve or excuse liability
DoD forwards requests for advance decisions to...
General Counsel, not GAO
To find DoD Departmental Accountable Officials liable...
there must be fault/negligence
*Funds available for obligation in FY1 can be used to purchase items not needed until FY2 if:
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.
*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).
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.
*Under an acquisition and cross-servicing agreement (ACSA), a country can "pay" for goods or services this way:
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)
*An accountable officer is not liable for an improper payment:
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
*Accountable officers can be held pecuniarily liable:
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.
*You must spend less than what amount to use Operations and Maintenance, Army for a computer system?
*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?
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.
*The fiscal year for the U.S. Government is a 12-month period from:
1 October through 30 September.
Any obligation of appropriated funds must comply with which of the following fiscal constraints:
The Bona Fide Needs Rule.
*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?
The contracting officer should seek payment from the Judgment Fund and reimbursement using current funds.
*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?
2 weeks.
*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?
The unit may fund it with O&M, because it is for Interoperability, Familiarization, and Safety training (little "t" training).
*When operating under Continuing Resolution Authority, government agencies:
May obligate funds for new contracts, but only if the new contract is not a “new start.”
*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?
1 September 2010
*Which is the most likely example of a project that would be appropriate under the Commanders' Emergency Response Program (CERP)?
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.
*When an agency “reprograms” funds, there is no change in the total amount available in the appropriations account. T/F
*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
*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?
Military Construction Funds (MILCON).
*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.
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.
*A Commander decides to give a Commander’s Coin for Excellence to everyone. Giving the coins was:
proper only if the coins were purchased with personal funds.
Someone wants to use appropriated funds to buy a refrigerator and a microwave. You respond by telling him:
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.
*Some of the permissible reasons for reprogramming of military construction and family housing funds are that reprogramming is necessary in response to:
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.
*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:
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.
*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?
Your boss could be held pecuniarily liable if the purchase is found to be improper.
*Operations and Maintenance appropriations are typically available for obligation for:
1 year.

*The Anti-deficiency Act (ADA):

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

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

A service or product has been completed or delivered.

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

Treasury Account Numbers.

*Prior year OMA funds may be used for:

Prior year obligation adjustments.

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

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.

*Civil works appropriations are generally:

Indefinite funds.

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


*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?

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

*When preparing a PR&C, you must:

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

Include POCs for technical, contractual, and financial items.

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





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

Military equipment, tanks, and planes.

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

Economy Act

*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?

Design projects

Facilities, maintenance, and repair

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

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

*Bona Fide need:

Applies only to limited year funds.

*Flash reports are:

Required when there is an apparent ADA violation.

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

Check with the financial or budget POCs.

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

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

*Closed appropriations are:

No longer available for any purpose, any remaining funds must be returned to the Treasury as miscellaneous receipts.
*When you approve funds in CEFMS, you are doing which of the following?

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

Accepting responsibility and accountability for this action.

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

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.

*A bona fide need inquiry focuses on:

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

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

Expired appropriations

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

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

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

2--An Approving Official and a Certifying Official

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

Purpose, Time, and Amount

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


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

Military Personnel (MILPERS) Appropriation Acts

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

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

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

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.

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

Not within the scope of other appropriation

Necessary and incidental

Not prohibited by law

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

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

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

Agencies must obligate appropriations during their period of availability/

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

1 year funds

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

Funds from the year in which the modifications were made.

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

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

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

A service or product has been completed or delivered.

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

Do not spend more money than is available.

Do not incur an obligation in advance of an appropriation.

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

Authorized by law

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

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.

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

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

**What are the Army values?




Selfless Service



Personal Courage

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


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

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.

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


Resource Management

Office of Counsel

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

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?

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





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

2--An Approving Official and a Certifying Official

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

Check with financial or budget POCs.

**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?

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

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

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.

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

Minor construction less than $750K

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

Economy Act

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

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.

**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?

Facilities, maintenance and repair

Minor construction

Design projects

Appropriated USACE funds may not be obligated until...

they have been received and entered into CEFMS.

USACE policy targets 100% obligation of...

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

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

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

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

janitorial services

A non-severable service is essentially...

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.

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

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

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

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

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

non-severable, because they are not contracted.

Contract work should not begin until...

funds are obligated in CEFMS.

Augmentation occurs when...

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

An accountable official is responsible...

for the custody of government funds.

Accountable officials can be...

liable formistakes

punished administratively, financially, or both

for approving improper purchases

Accountable officials include:

Certifying Official (CO)

Dispersing Official (DO)

Departmental Accountable Official (DAO)

Some supervisors

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

maintained at the USACE Finance Center, Millington, TN

Some DAO responsibilities include:

Approve/certify purchase requests

Approve/accept customer orders

Approve/certify travel orders

Obligate funds

Obligate supervision & administration (S&A)

Approve cost transfer transactions

Pecuniary liability:

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


Purchase Request & Commitment - a request for goods or services

PR&Cs administratively...

reserve (commit) funds in anticipation of an obligation.

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

from the Approving Official and orginator.

For each separate source of funds...

a different line item is required.