CDFM - MODULE 3 EXAM (4 DIFFERENT

SUB MODULE 3.1 - 3.4) QUESTIONS AND

CORRECT ANSWERS EACH SUB MODULE
CONTAINS 100 QUESTIONS AND ANSWERS
LATEST 2023-2024

CDFM MODULE 3.1

What is the basic axiom of Fiscal Law? - ANSWER- The established rule is that
the expenditure of public funds is proper only when authorized by Congress, not
that public funds may be expended unless prohibited by Congress. U.S. vs
McCollum (1976)

"Where can the most authoritative source of information on the proper use of
appropriated funds be found? Who is it published by?" - ANSWER- Principles of
Federal Appropriations better known as the Red Book-- published by the GAO.

What act created the General Accounting Office, GAO? - ANSWER- Budget and
Accounting Act 1921

authorized the Comptroller General to audit the financial transactions of most 29

executive, legislative, and judicial agencies; and to prescribe, in consultation with
the President and the Secretary of the Treasury, accounting principles, standards,
and requirements for the executive agencies suitable to their needs. - ANSWER-
Accounting and Auditing Act of 1950

In cases where violations of fiscal law statutes occur, agencies must do what? -
ANSWER- "* Prepare reports to the President and Congress and
* Make necessary improvements in accounting and administrative control systems
to prevent future violations. "
What term applies broadly to any law that permits a Government employee to
spend money, not just to the regular appropriation bills. - ANSWER-
Appropriation

What are the Sources of Fiscal Law? - ANSWER- The Constitution, Authorization
Acts, Appropriations Acts, General Statues, CG Decisions & Courts

Fiscal Law is based on what premise? - ANSWER- that appropriations are only
available for obligation and expenditure when specifically approved by Congress,
not that appropriations may be used unless specifically prohibited by Congress.

In _____ law, as long as there is no law that says you can't do something, you may
legally do it. However, in _____ law, you can do only what the law authorizes you
to do. - ANSWER- Common; Fiscal

Laws and Regulations in Federal Financial Management - ANSWER- Budget and

Accounting Act of 1921 Budget and Impoundment Control Act of 1974
Balanced Budget and Emergency Deficit Control Act of 1985
31 USC Sections 13 and 15
OMB Circular A-11

Article 1, Section 7, empower Congress to pass bills for ______________ and

delineates how bill will pass from the Congress to the President for signature or
veto. - ANSWER- Raising revenue

Article 1, Section 8, empower Congress to _________ - ANSWER- collect taxes

Article 1, Section 9, requires appropriations by law before money can be spent

from the _______. - ANSWER- treasury

The most authoritative source of information on the proper use of appropriated

funds is a multi-volume treatise published by the GAO, called _____. It is
available of the GAO website www.gao.gov in 3 volumes. - ANSWER- The Red
Book

This law governs the congressional budget process

Defines some key budget terms, such as budget authority and Establishes the
House and Senate Budget committees and the Congressional Budget Office -
ANSWER- Congressional Budget Act of 1974
This law prescribes rules and procedures including sequestration designed to
constrain spending and receipts legislation. Commonly known as, Gramm-
Rudman-Hollings Act. - ANSWER- Congressional Balanced Budget and
Emergency Deficit Control Act of 1985

Prescribe rules and procedures for budget execution. The overarching statutory
requirement for use, control and accountability of funds are found here. OMB
Circular A-11 "Instructions on Budget Execution" and GAO Federal
Appropriations Law summarize and restate the requirements of this law. -
ANSWER- 31 USC 13 and 15

Contains the same act as the Congressional Budget Act, this law prescribes rules
and procedures under which the President may withhold appropriated amounts
from obligation. - ANSWER- Budget Impoundment Control Act of 1974

This circular provides instructions on preparation, submission, and execution of the

budget; contains a crosswalk for the provisions of the Antideficiency Act and
instructions on monitoring Federal outlays, obtaining GAO exemptions, reporting
requirements for unvouchered expenditures, and monitoring Federal employment. -
ANSWER- OMB Circular A-11

Sources of Authority on the use of public funds that provide the basis for Federal
Appropriations Law - ANSWER- US Constitution Congress Authorization and
Appropriation Acts
General and Specific statutes
Court Decisions and decisions from Comptroller General

conveys a confidence and trust; required to care for the funds of the people, and
have the responsibility to hold public funds in trust and confidence assuring funds
are only used for the purpose for which Congress intended. - ANSWER- Fiduciary
Responsibility

When a Funds certifying official certifies the public funds for which he has been
intrusted, he/she is certifying that : - ANSWER- the funds are legal for use under
Purpose, Time, and Amount restrictions placed on the use of the funds by
Congress.

An erroneous, willful, or knowing violation of fiduciary responsibility may lead to

an ______. - ANSWER- Antideficiency Act Violation
True or False: Relief may be granted from an ADA Violation? - ANSWER-
FALSE

______ responsibility conveys the responsibility of physical control of the monies

entrusted to the care of the accountable official. - ANSWER- Pecuniary

held personally liable for any erroneous payments, resulting from their
miscertification, from the second the payment is made. - ANSWER- Certifying
Officers

Responsible for the accuracy of the disbursement of funds. Responsible for the
repayment of any disbursement made not in accordance with proper Purpose,
Time, or Amount. - ANSWER- Pecuniary Certifier

Examples of positions that carry a Pecuniary Responsibility. - ANSWER-

Disbursing officers, cashiers, and collecting officers

Can relief be given for those with Pecuniary Responsibility? - ANSWER- Relief
can be granted for loss of cash or mis-certification when certain conditions are met;
presumed negligent unless innocence is proven.

___ will be held personally liable for any erroneous payments resulting from their
miscertification, from the second the erroneous payment was made. - ANSWER-
Certifying Officers

Budget and Accounting Act of 1921 - ANSWER- 1. Required the President to

submit an annual budget to Congress for all three branches of the Federal
Government. 2. Created a budget office for the President (OMB) 3. Established the
GAO

True or False: For a Disbursing officer, relief can not be given for loss of cash or
miscertification under any conditions. " - ANSWER- False: Relief can be given if
certain conditions are met.

An _______ ________ possessing personal responsibility is presumed negligent

when funds are missing or an erroneous payment is made and is thus presumed
responsible for the loss unless/until he/she proves his/her innocence. - ANSWER-
accountable official
3 Dimensions - Availability of Budgetary Resources - ANSWER- Purpose - 31
USC 1301 Time - 31 USC 1502 Amount - 31 USC 1341 31 USC 1342 31 USC
1517

Funds may be obligated and expended only for the purposes authorized in
appropriations acts or other laws - ANSWER- Purpose

Period of time during which budgetary resources may be used to incur new
obligations is different from the period of time during which budgetary resources
may be used in incur expenditures. - ANSWER- Time

Budgetary resources available for incurring new obligations for one fiscal year or
less are classified as _____ ____, - ANSWER- Annual authority

Budgetary resources available for incurring new obligations in excess of one fiscal
year are referred to as _____ ____. examples are: RDT&E, Procurement,
MILCON - ANSWER- Multi Year Authority

Budgetary resources available for new obligations for an indefinite period (until
the purposes for which they were provided are carried out) are referred to as ___
___ ___. - ANSWER- No Year Authority

If the law does not specify an amount of budget authority available the amount is
classified as indefinite authority examples include: - ANSWER- Entitlements
retirement Interest on Debt

If the law specifies an amount of budget authority available, the amount is

classified as ________ authority. This type of authority includes authority as "not
to exceed" as specified amount. Most DoD appropriations are this type. -
ANSWER- definite

If the law does not specify an amount of budget authority (if the amount is
determined by specified variable factors or are interest on debt, Federal retirement,
social security, and the Judgement Fund), the amount is classified as ___ ____. -
ANSWER- indefinite authority

____ shall be applied only to the objects for which the appropriations were made
except as otherwise provided by law. - ANSWER- Appropriations
Which statute, originally enacted in 1809, leads to the greatest number of ADA
violations and provides the primary control that Congress has over the Executive
Branch. "Appropriations shall be applied only to the objects for which
appropriations were made except as otherwise provided by law". - ANSWER-
"Purpose 31 USC 1301"

The various purposes for which funds are authorized are found in general and
specific authorization bills passed by Congress and codified in _____. - ANSWER-
statues

All agencies receive general operating funds for ____. - ANSWER- day to day
operations.

_____ is a operating expense that can be paid from any available appropriation by
39 USC 3206 as a necessary expense of the appropriation or fund. - ANSWER-
Postage

________ 5 USC 4503 authorizes an agency head to recognize superior

performance with awards of cash, time off, or merchandise and to incur expenses
determined necessary to enhance the recognition of the awardee. - ANSWER-
Government Employee Incentive Awards Act

Expenditure can be justified after meeting the three part test: Logical Relationship;
Not prohibited by law; Not funded for elsewhere - ANSWER- Necessary Expense
Doctrine defined in 6 Comp Gen 619

"Congress has the right to limit its appropriations to particular times as well as
particular objects, as when it has clearly done so, its will expressed in the law
should be implicitly followed." refers to ____. - ANSWER- Time statute

Two basic uses of appropriations are ___ and ____. - ANSWER- obligations and
expenditures

legal reservations for which payments, or expenditures will be made in the future. -
ANSWER- Obligations

cash payments made to liquidate an obligation. - ANSWER- Expenditures

31 USC 1502 states in part, " the balance of a fixed term appropriation is available
for payment of expenses properly incurred during _______ or to complete
contracts properly made within that period. - ANSWER- period of availability

A fiscal year appropriation may be obligated only to meet a legitimate or bona fide
need arising in or in some cases arising prior to but continuing to exist in, the fiscal
year for which the appropriation was made. 33 Comp Gen 57 - ANSWER- Bona
Fide Need Rule

a test to determine when to obligate and for how much consumption or effort the
obligation should cover. - ANSWER- Bona Fide Need Rule

does not prevent maintaining a legitimate inventory at reasonable and historical

levels, the need being to maintain the inventory level so as to avoid disruption of
operations. - ANSWER- Bona Fide Need Rule

permits obligation in one fiscal year and delivery in a subsequent fiscal year if
production lead-time of the material requires obligation in one fiscal year in order
for the material to be available for installation in a later fiscal year. - ANSWER-
Bona Fide Need Rule

The Bona Fide Need Rule occurs when the order is _____ not when the goods or
services are ______ . - ANSWER- placed, delivered

If you have a subscription that begins on 1 OCT, with delivery occurring entirely
in that fiscal year, can you place the order before 1 OCT? - ANSWER- Yes, since
the renewal is a bona fide need of the funds available prior to 1 OCT.

_____ are services for which the Government receives something useful
immediately upon expenditure of funds e.g. routine maintenance, housekeeping,
trash collection. - ANSWER- Severable Services

The government will obligate no more than _______ of a severable service since it
will receive something useful at the end of the fiscal year. - ANSWER- 12 months-
- contract can cross fiscal years as long as not more than 12 months.

Restriction to 12 months applies only to annual appropriations. _______

appropriations are not limited to the 12 months but rather to their period of
availability. - ANSWER- Multi-year
_________ cannot be separated into increments that will provide something useful
e.g. overhaul of a ship. Government will obligate entire amount at the onset get
gain something useful in the end. Other examples: Training, college classes -
ANSWER- Non-Severable Services Notes: Training tends to be non-severable this
the entire cost for training is incurred in one fiscal year even if it extends to the
next fiscal year.

The rule for non severable services is the government will obligate for the ______
___ of the undertaking at the outset in order to achieve a useable end product at the
end of the contract or project order performance. - ANSWER- entire amount

Training tends to be _______ and thus the entire cost for training incurred in one
fiscal year is chargeable to that year even if the training will extend into the next
fiscal year. - ANSWER- non-severable

True or False: Training that begins in the following year cannot be charged to the
current year if the Government must make a payment or deposit in the current year,
the scheduling is beyond the Government's control and the time between obligation
and performance is not excessive." - ANSWER- FALSE; It can be charged to the
current year.

_____ is an exception to the Bona Fide Need rule. This authority permits up to five
years of severable service in five one-year increments included in a single contract.
- ANSWER- Multi-year Service Contracting Authority

While the US Code gives the DoD the latitude and authority to obligate the full
five years at the time of award, DoD policy, as reflected in the DoD Financial
Management Regulation, requires funding _____. - ANSWER- year by year

_____ applies to the following situations: Change in quantity; change in mission;

change in time period; change in controllable (warranty) - ANSWER- Change in
Scope

If a contract modification exceeds the general scope of the original contract

(example quantity increase) the modification amounts to a ___ ______ and is
chargeable to funds current at the time the modification as made. - ANSWER- new
obligation

When an upward price adjustment is required in a subsequent year, the general

approach is to ask whether the adjustment is related to a provision in the original
contract. If the answer is yes, (ex. Changes clause) then a within-scope price
adjustment, which is requested and approved in a subsequent year, will normally
be charged against which appropriation ? - ANSWER- the appropriation current at
the time of contract award, even though the appropriation may now be expired.

If the appropriation act is enacted prior to the start of the fiscal year for which the
appropriation is being made, may contracts be entered into upon enactment and
before the start of the fiscal year, provided that no payments or expenditures are
made under them until the start of the fiscal year? - ANSWER- Yes, Since an
appropriations act has been enacted, no violation of 31 USC 1341 occurs. A
violation of 31 USC 1517 would still occur if the obligation was entered into
before the receipt of an apportionment or sub apportionment of the appropriation.

This clause contained on documents before an appropriation is enacted. The

vendor is not to perform on the contract until the appropriation is enacted or it
would violate 31 USC 1341. - ANSWER- "Subject to the Availability of Funds"

Government can terminate contracts for two reasons - ANSWER- Contractor

Default and Convenience

When a contract is terminated by default, may the government obligate the same
year funds previously obligated for the replacement contract for an amount less,
same or greater than the original contract even if the funds are in expired status? -
ANSWER- "Yes, provided that 1. the bona fide need still exists; 2. same or lesser
scope of work; 3. replacement contract is awarded in a timely manner.

A voluntary act on the part of the agency to reduce the scope of a contract or
terminate the contract for its own convenience ___ ___ entitle the agency to
obligate expired funds to issue a replacement contract. - ANSWER- will not

The KO has the authority to terminate a contract an re-award that contract with
expired funds IF the KO has determined the original to be ______. - ANSWER-
defective

3 types of Appropriation Life - ANSWER- 1. Single Year - expense 2. Multi year -

Investment 3. No-year - Continuing Support

Name two One Year appropriations - ANSWER- MILPERS and O&M

This appropriation is for one year and funds the following: Day to Day Operations,
civilian salaries, travel, fuel, Minor Construction up to $1,000,000; purchase of
investment items up to $250,000; training, education, and recruiting - ANSWER-
O&M

This appropriation is for 2 years used for development of equipment, material or

computer application software. Developmental Test and Evaluation. Initial
Operation Test and Evaluation. Operational costs for R&D dedicated installations.
- ANSWER- RDT&E

This appropriation is for 3 years and is used to purchase major end items and
defense systems; initial issue of spares, all costs necessary to deliver a useful end
item intended for operational use or inventory - ANSWER- PROCUREMENT

This appropriation is for 5 years and is used to fund: major military construction
projects; construction of schools, military facilities and bases - ANSWER-
MILCON

This appropriation is for one year and is used to fund the following: pay and
allowances of active duty and reserves; PCS moves; training in conjunction with
PCS, subsistence, bonuses and retired pay accrual. - ANSWER- MILPERS

What is the primary no-year appropriation used in DoD ? - ANSWER- Defense

Working Capital Fund (DWCF)

available without fiscal-year limitations; remain available until fully expended -

ANSWER- No Year Appropriations

No year appropriations would be closed or cancelled if: - ANSWER- "1. head of

the agency or the President determines that the purpose for which the appropriation
was made have been carried out 2. No disbursement has been made for two
consecutive years"

The _________ account is available for new obligations for 1 fiscal year, increase
scope on existing obligations, payments, and adjustments. - ANSWER- Current
Account (1-5 years)

The _______ account is available for payments and adjustments (up to down) to
existing obligations made when account was current. Not available for new
obligations or increased scope on existing obligations. FY appropriation and line
item identity remains to enable charging original obligation fund cite - ANSWER-
Expired Account (5 years)

The ______ account is no longer available for payments and obligations

adjustments. Adjustments and payments are charged to currently available
appropriations of the same type, up to lesser than 1% of currently available
appropriation or unexpended balance of closed appropriation. FY, appropriation,
and line item identity remain only for accounting purposes. - ANSWER-
Closed/Cancelled > 10 years

Budget Authority will remain on the agency's books for ___ years after an
appropriation enters expired status, at which time all unobligated and un-liquidated
balances will be cancelled and deposited into the Miscellaneous Receipts of the
_______ and are no longer available to the agency for any purpose. 31 USC 1552 -
ANSWER- 5 years, Treasury

At the beginning of the first expired year, the expired unobligated balance is placed
in an account titled, "_________"? - ANSWER- Unobligated Balance: Brought
Forward October 1

31 USC 1553 requires that approval be sought from the head of the agency if
obligations from an expired appropriation during a fiscal year exceed _______ for
any program. - ANSWER- $4 Million

31 USC 1553 requires that approval be sought from the Authorization and
Appropriation Committee if obligations from an expired appropriation during a
fiscal year exceed _______ at the program level. Congress must be given ____
days notice. - ANSWER- $25 Million; 30 days notice

After an appropriation is cancelled, any obligations or adjustments to obligations

may be paid from ______? - ANSWER- current appropriations for the same
purpose as the closed account

A note should be appended to every apportionment that says: "Pursuant to 31 USC

1553(b), not to exceed ______ of the total appropriations for this account is
apportioned for the purpose of paying legitimate obligations related to cancelled
appropriations. - ANSWER- 1%

Prohibits obligating or expending in advance of the appropriation

Make or authorize an expenditure or obligation exceeding an available amount in
an appropriation; or entering into a contract or obligation for payment before an
appropriation is made. - ANSWER- 31 USC 1341

Prohibits accepting voluntary services for the US - ANSWER- 31 USC 1342

Appropriations; Contract Authority; Borrowing Authority; Monetary Credits;

Offsetting Receipts; Loan & Loan Guarantee - ANSWER- Forms of Budget
Authority

Authority in _________ acts and other provisions of law provide authority to incur
new obligations. - ANSWER- Appropriations

Specific statutory authority to incur obligations in anticipation or in advance of

either receipts or an appropriation of liquidating cash with which to pay the
obligations - ANSWER- Contract Authority

Budget authority granted to a Federal entity to borrow and to obligate and expend
the borrowed funds. - ANSWER- Borrowing Authority

Budget Authority where an authorization for a Government agency to issue

monetary credits in lieu of checks to acquire property such as land or mineral
rights - ANSWER- Monetary Credits

This Budget Authority includes tax receipts, customs duties, fines, fees, penalties,
reimbursements and revenue. The term "collections" includes receipts,
reimbursements, and refunds. - ANSWER- Offsetting Collections and Receipts

This Budget Authority provides authorization for an agency to pledge part or all of
loan payment principal and interest to a lender in event of default by a third party
borrower. The family housing portion of the Military Construction appropriation
provides the authority to guarantee loans to vendors/contractors building or
rehabilitary Govt quarters. - ANSWER- Loan and Loan Guarantee Authority

_____ involves Congress limiting the Executive branch's authority by specifically

designating a part of a more general appropriation designated for a particular
purpose. - ANSWER- Earmarking "Not to exceed" Ceiling "Not Less Than" Floor
"Exclusively For" Fence
At a minimum, monies available in the general appropriation ______ be
transferred into the earmarked line, but any funds not needed in the earmark _____
be transferred into the general appropriation. - ANSWER- may, may not

Statue that states: an officer or employee may not accept voluntary services for
either government or employ personal services exceeding that authorized by law
except for emergencies involving the safety of human life or the protection of
property. - ANSWER- 31 USC 1342-- Voluntary Services

If compensation for a position is fixed by law, then an appointee ___ ___ agree to
serve without compensation. - ANSWER- may not

Red cross volunteers

Candy Stripers
Museum volunteers
are all examples of: are all examples of: " - ANSWER- statutorily authorized
gratuitous services

Statute that states: an officer or employee may not make or authorize an

expenditure or obligation exceeding an apportionment; or the amount permitted by
regulations prescribed under section 1514(a) of this title. - ANSWER- 31 USC
1517 - Apportionment

Section 1514 requires an agency in control of an apportionment to prescribe, by

regulation, a system of administrative control consistent with _____________. -
ANSWER- accounting procedures prescribed under law. Procedures should restrict
obligations and expenditures and provide financial reports on the status of funds
administered.

Describe funding flow - ANSWER- Appropriation Apportionment Allotment

Commitment Obligation Outlay

An agency may not ______ its appropriation from outside sources without some
statutory authority to do so. - ANSWER- augment

statute that says an official receiving money for the Government from any source
shall deposit the money in the Treasury as soon as practicable without deduction
fro many charge or claim. - ANSWER- 31 USC 3302(b) Miscellaneous Receipts
Statute
If an agency recieves and retains funds from a private party for destruction of
Government property, like a guardhouse or vehicle, the funds shoud go to _____? -
ANSWER- the Treasury

True or False: any gifts or donations accepted by an agency or employee must be

deposited to the Miscellaneous Receipts account in the Treasury unless it has the
statutory authority to keep the gift. - ANSWER- TRUE

True or False: The DOD does not have the authority to accept and keep gifts. -
ANSWER- False: The DOD is one of the few agencies having authority to keep
gift under specific circumstances. 1. The proceeds from sale of property are
credited to the Defense Cooperation Account in the Treasury. 2. May be accepted
under a mutual defense or similar agreement for example foreign government
contributions to defray the cost of war.

DoD may accept contributions of money or real property from any person, foreign
Government, or international organization. The proceeds from the sale of property
are credited to which account in the Treasury? - ANSWER- Defense Cooperation

True or False: DoD may not accept services, supplies, real property, or use of real
property under a mutual defense or similar agreement? - ANSWER- False: The
DoD may accept gifts or donations under a mutual defense agreement.

Which act allowed Federal employees to retain travel promotional items, such as
frequent flyer miles earned while on official travel? - ANSWER- National Defense
Authorization Act for FY 2002

In accordance with 31 USC 1349 and 1518, an officer or employee violating 31

USC 1341(a) or 1517(a) "ADA Violation" shall be subject to appropriate
administrative discipline including ___________, _______________ or
_______________. - ANSWER- Written Reprimand, suspension from duty
without pay, or removal from office.

Criminal Penalties for an officer or employee convicted of willingly and

knowingly violating 31 USC 1341(a), 1342, or 1517(a) "ADA Violations" shall be
____________, _____________, or ______. - ANSWER- fined not more than
$5000, imprisonment for not more than 2 years, or both.

What Joint Ethics Regulation covers gifts to an employee? - ANSWER- DoD

5500.7-R- Joint Ethics Regulation
True or False: Federal employees are allowed to retain travel promotional items
such as frequent flyer miles earned while on official travel. - ANSWER- TRUE

Any suspected violation to the ADA must be reported to higher headquarters

within ______ of discovery. - ANSWER- 10 days

After reporting an ADA, the preliminary review should be completed within

________ from the date of initial discovery. - ANSWER- 14 weeks

If investigation reveals an ADA violation has occurred, the __________ prepares a

report to the President, through the OMB, the Congress, an the Comptroller
General. - ANSWER- Under Secretary of Defense (Comptroller) USD(C)

A preliminary review of an ADA violation should include: - ANSWER-

Accounting classification
Name and location of activity where occurred
Name and location of activity issuing fund authorization
Amount exceeded; Amount and nature of violation
Date of violation; Means of discovery
Description of facts
Anticipated investigation completion dates
Names and numbers of investigation team
corrective action

TRUE or FALSE: ADA Violations always depend on intent or willingness to

complete the act. - ANSWER- FALSE: violations never depend on intent or lack
of good faith on the part of the Government official who obligates or pay in excess
or advance. Although intent may affect the degree of penalty, it never affects
whether an ADA occurred.

Who prepares the report to the President if an ADA investigation reveals a

violation has occurred thru the OMB, the Congress, and the Comptroller General?
- ANSWER- OUSD, C

Where can instructions be found on how to report an ADA violation? - ANSWER-

OMB Circular A-11 section 145.7

Where can information about ADA violations that Federal Agencies have reported
since Fiscal Year 2005 be found? - ANSWER- GAO Website
An ___________ is a legal duty of the US which constitutes a legal liability or
which could mature into a legal liability by virtue of action on the part of the other
party beyond the control of the US. - ANSWER- Obligation

True or False: Recording of an obligation in financial records only evidences the

obligation, it does not create it. If a transaction is not sufficient to constitute a valid
obligation, recording it will not make it one. - ANSWER- TRUE

A__________ is an appropriation act that permits an agency to continue operations

of the previous year at a specific level of funding for a specific period of time and
have been used as stop-gap funding measures since the late 1880's. - ANSWER-
Continuing Resolution

Continuing Resolution - ANSWER- Legislation enacted by Congress to provide

budget authority for Federal agencies and/or specific activities to continue
operations until regular appropriations are enacted.

From 1962 to 2006, _____ of the appropriation bills for Federal agencies were
enacted after the start of the fiscal year, thus necessitating a CR. - ANSWER- 90%

Under a CR, it is the intent of Congress that an agency has no more funds in the
current year, than was available ______. - ANSWER- in the prior year

True or False: Under a CR, unobligated multiple year funds carried into a new
fiscal year do not increase the amount considered as "current rate"? - ANSWER-
TRUE

Under a CR, If you obligate at the current rate and the Congress finally
appropriates at a lesser rate, have you committed an ADA violation? - ANSWER-
No, the funds made available by the resolution must remain available to pay the
obligations.

Most CRs contain provisions restricting ____ or any project or activity for which
appropriations, funds or other authority wer not available during the preceding
fiscal year. - ANSWER- New Starts

refers to the automatic federal spending cuts that occur through the withdrawal of
funding for certain government programs. - ANSWER- Sequestration
The CBO has estimated that each day of government shutdown (regularly
scheduled workdays) costs the US almost ____ ? - ANSWER- $1B

An __________ is any Government officer or employee who by reason of his or

her employment, is responsible for or has custody of Government Funds and
includes: certifying officers, civilian and military disbursing officers, collecting
officers, cashiers and other employee that have custody of Government funds. -
ANSWER- Accountable Individual

an officer of a Federal department or agency, civilian or military, who is

designated to disburse monies. - ANSWER- disbursing officer

a Government official who recieves or collects money for the Government. -

ANSWER- Collecting Officer

A Government Officer or employee whose job is or includes certifying vouchers

for payment and has no public funds in his/her possession. Responsible for legality
of proposed payments and are Liable for amount of illegal or improper payment -
ANSWER- Certifying Officer

A certifying officer is responsible for: - ANSWER- 1. existence and correctness of

facts stated in the certificate, voucher, and supporting documentation
2. correctness of computations on the voucher
3. the legality of a proposed payment under the appropriations cited for payment

True or False: a certifying officer is not relieved of his/her duties by press of work.
A close review of supporting documents should be made and items that simply do
not look right should be questioned. The bottom line is that a certifying officer can
always refuse to certify a voucher if he or she feels that adequate safeguards have
not been provided. - ANSWER- TRUE

True or False: A DAO, certifying officer, or disbursing officer does not have the
statutory right to seek an advance decision from the DOD General Counsel
regarding the lawfulness of any payment to be certified or made. - ANSWER-
FALSE

A certifying officer has the statutory right to seek and obtain an advance decision
from the Comptroller General regarding the lawfulness of any payment to be
certified. For the DoD, this advance decision authority has been delegated to the
____? - ANSWER- DoD General Counsel, Courts
The Comptroller General must grant relief under the following circumstances: -
ANSWER- "1. The SECDEF determines that the official was carrying out official
duties when the loss occurred. 2. The loss was not a result of illegal, improper, or
incorrect payment. 3. The loss was not a result of fault or negligence of the official.
1. Payment was not a result of bad faith or lack of reasonable care. 2. certification
was based on official records. 3. No law specifically prohibited payment. 4. US
received value for the payment."

The ____ officer is personally liable for the amount of any illegal, improper, or
incorrect payment resulting from his/her certification. - ANSWER- Certifying

The statute of limitations applies only to improper payments and does not apply to
_____ ______ of funds. - ANSWER- physical loss

The Statute of Limitations on an Error is ________ where as, it is _______ for

Fraud. - ANSWER- 3 years from the time the CG receives the account; No Time
limit for Fraud

form of budget authority provided by law that permits Federal agencies to incur
obligations and make payments out of the Treasury for specified purposes. -
ANSWER- Appropriation

An appropriation usually follows ____ of authorizing legislation. - ANSWER-

enactment

An appropriations act is the most common means of providing budget authority,

but in some cases the authorizing legislation itself provides the ___ ____. -
ANSWER- Budget Authority

________ is the basic substantive legislation enacted by Congress, which sets up or

continues the legal operation of a Federal program or agency either indefinitely or
for a specific period of time. Usually a prerequisite of appropriations. - ANSWER-
Authorization

may limit the amount of budget authority to be provided subsequently or may

authorize the appropriation of "such sums as may be necessary". - ANSWER-
Authorization
The authority by Federal Law to incur financial obligations that will result in
immediate or future outlays. May be classified by period of availability or nature
of the authority. - ANSWER- Budget Authority

the system that measures and controls the use of resources according to the
purposes for which budget authority was enacted and that records receipts and
other collections by source. - ANSWER- budgetary accounting

used by Congress and the Executive Branch to set priorities, allocate resources
amoung alternative uses, to finance these resources, and assess the economic
implications of Federal financial activity at an aggregate level. - ANSWER-
budgetary accounting

specifies a maximum rate at which the agency can incur obligations, based on the
rate of the prior year, the President's budget request, or an appropriation bill passed
by either or both Houses of Congress. - ANSWER- Continuing Resolution

permits an agency to obligate funds in advance of appropriations. Allows you to

incur obligations in anticipation of the collection of receipts or offsetting
collections that will be used to liquidate the obligation (41 USC 6301, Feed and
Forage Act). - ANSWER- Contract Authority

Who provides contract authority in an authorizing statute to allow you to incur

obligations in anticipation of the collection of receipts or offsetting collections that
will be used to liquidate the obligations (41 USC 6301, Feed and Forage Act). -
ANSWER- Congress

the dollar amount of appropriations used to fund goods and services received or
benefits or grants provided. - ANSWER- Expended Appropriations

outflows or other using up of assets or incurrences of liabilities during a period

from providing goods, rendering services, or carrying out other activities related to
the entity's programs and missions, the benefits from which do not extend beyond
the present operating period. - ANSWER- Expense

net amount of obligations in a given account for which payment has not been
made. - ANSWER- Obligated balances

_____ is the issuance of checks, disbursements of cash, or electronic transfer of

funds made to liquidate a Federal Obligation. Also occur when interest on the
Treasury debt held by the public accrues and when the Government issues bonds,
notes, debentures, monetary credits, or other cash-equivalent instructions in order
to liquidate obligations. - ANSWER- Outlay

occur when interest on the Treasury debt held by the public accrues and when the
Government issues bonds, notes, debentures, monetary credits, and other cash-
equivalent instruments in order to liquidate obligations. - ANSWER- Outlay

What is the term for anything produced by an organization that can be tabulated,
calculated, or recorded and can be expressed in a quantitative or qualitative
measure? - ANSWER- output

process that supports accural accounting and financial reporting that attempts to
show actual financial position and results of operations by accounting for assets,
liabilities, net position, revenues, and expenses. - ANSWER- Proprietary
Accounting (aka financial accounting)

fund established to finance a cycle of operations through amounts received by the

fund. Consists of a permanent appropriation and expenditure of collections, from
both the public and other Govt agencies and accounts. - ANSWER- Revolving
Fund

official document that the Secretary of Treasury issues pursuant to law and that
establishes the amount of monies authorized to be withdrawn from the central
accounts that the Treasury maintains. - ANSWER- Treasury Warrant

funds such as Social Security that are earmarked for a specific purposes and the
associated expenditure of those receipts - ANSWER- Trust Funds

CDFM MODULE 3.2

For undeliverable checks, the DO will attempt to deliver the check to the payee for
a ___ period. - ANSWER- 60 day
________ are DoD military members and civilian personnel who are designated in
writing and are not otherwise accountable under applicable law, who provide
source information, data, or service to a certifying or disbursing officer in support
of the payment process. - ANSWER- Departmental Accountable Officials

Name the four functions of finance: - ANSWER- Entitlements -processing and

certifying military pay, civilian pay, official travel and contract payments
Payments - making disbursements for goods furnished or services rendered
Collections - receiving funds on the behalf of the Government
Control - relying on automated systems and accountable officials to ensure
accountability of funds.

Finance - ANSWER- _______ is the lifeblood of the DoD programs and

operations and can be separated into four distinct functions: (1) Entitlements (2)
Payments (3) Collections (4) Control of Public Funds.

DFAS - ANSWER- The SECDEF has designated ____ as the principal agency
responsible for DoD finance.

USD, Comptroller - ANSWER- DFAS is under the direction, authority, and

control of _______.

The ______________ is the principal DoD executive for finance and accounting
requirements, systems, and functions. - ANSWER- Director of DFAS

What is the 15 Volume DOD Financial Management regulation, that provides DoD
components with the specific policy, regulations, and procedures to which they
must adhere? - ANSWER- DoD 7000.14R (DoD FMR)

Examples of Laws and regulations that apply to Federal Government financial

managers. - ANSWER- US Code Title 10 (Armed Forces)
Debt Collection Improvement Act of 1996
Final Rule on Prompt Payments
Federal Acquisition Regulation (FAR)
Certifying Officer Legislation
US Code Title 31 (Money and Finance)

Prior to paying/disbursing Government funds, the paying office must ______. -

ANSWER- confirm eligibility of entitlement
Name four segments of the Entitlement process. - ANSWER- Entitling
Authorization
Voucher Preparation
Certification

Entitling - ANSWER- ___ is legally establishing benefits to any person, business,

or Government unit meeting eligibility requirements establish by law. Examples
are travel pay, military pay, civilian pay, contract/vendor pay.

What are some types of authorizing documents? - ANSWER- travel orders,

contracts, purchase requests, training orders

Vendor payments must be supported by what four documents? - ANSWER- (1) A

copy of the contract
(2) A proper invoice
(3) Proof of Receipt
(4) An acceptance document

Prior to making a payment, documents must be _____ by a designated official,

contain evidence that performance (or acceptance) has occurred, contain actual or
estimated computation of funds due, and be properly certified for payment. -
ANSWER- authorized

The ___ is the DoD authority to make payments for the Government. - ANSWER-
disbursement voucher

Name 5 elements required in a voucher for it to cause a valid transaction -

ANSWER- (1) Voucher Heading and Date - includes complete name and mailing
address of the paying office, date voucher was prepared, voucher number, and
required information in paid by block. (2) Accounting Classification to be charged
(3) Amount to be disbursed
(4) Method of Payment
(5) Payee

______ have complete responsibility for assuring that payments are proper,
voucher have complete and accurate data, the right number of voucher copies are
prepared, and certifying officer signatures on vouchers prepared outside of the
disbursing office are authentic. - ANSWER- Supporting Offices
While the Disbursing Office (DO) is responsible for payment operations and is
accountable for money disbursed for payments, the DO is not responsible for
_________ - ANSWER- preparation of vouchers

The certifying official who certifies a voucher is responsible for the ____, ______,
and ________. - ANSWER- information stated in the voucher and supporting
records,
the computations in the voucher, and
the propriety of a proposed payment.

As stewards of public funds all personnel involved in the payment authorization,

computation, and certification must follow _____. - ANSWER- applicable laws

Certification = ____ + _____ - ANSWER- accountability + liability

______ include all personnel, military and civilian, who are departmental
accountable officials (DAOs), certifying and disbursing officers. - ANSWER-
Accountable Individuals

Departmental Accountable Officials - ANSWER- ______ include all personnel,

military and civilian, who are departmental accountable officials (DAOs),
certifying and disbursing officers.

Departmental Accountable Officials - ANSWER- __________ are responsible for

ensuring that a system of internal procedures and controls for the portion of
entitlement and/or payment, providing timely and accurate data, information,
and/or service to ensure proper payments that are supportable, legal, and computed
correctly.

Who is determined to be accountable individuals in the Department of Defense? -

ANSWER- Certifying and Disbursing Officers and Departmental Accountable
Officials

Who grants relief of liability to a certifying officer for erroneous or illegal

payments in the DoD? - ANSWER- DFAS

A _________________ who certifies a voucher is responsible for the information

stated in the voucher and supporting records, the computations in the voucher, and
the propriety of a proposed payment. - ANSWER- Certifying official
________ requires that COs shall always be personally liable for any wrong
payment or over-payment of Government funds resulting from his or her negligent
performance of duties. - ANSWER- National Defense Authorization Act of 1996
(Public Law 104-106)

To promote professionalism and strengthen internal controls, a certifying officer

should be a supervisor or team lead and have the following minimum
qualifications: - ANSWER- (1) Knowledge of subject matter
(2) Background or experience in the preparation of a voucher for payment
(3) knowledge of appropriations and accounting classifications (4) knowledge of
payment process

Certifying Officer and defense accountable official appointments are documented

on _________ and COs and DAOs must accept responsibility by countersigning
the form. - ANSWER- DD Form 577

31 USC 3325 requires ____ within the Department that have pecuniary liability for
erroneous payments. - ANSWER- Certifying Officers

True or False: All bills are paid by the US Treasury? - ANSWER- TRUE

When in doubt, the DO or certifying official may request an _______ from the
General Counsel of the Department of Defense on the propriety of any prospective
payment (FMR, Volume 5, Appx E) - ANSWER- Advance Decision

True or False: a disbursing officer is eligible for appointment as a certifying officer

and may appoint a certifying officer. - ANSWER- False

As a representative of the US Treasury, the ___ is charged with the safekeeping of

public funds and is also pecuniarily liable for any improper payments resulting
from negligent performance. - ANSWER- Disbursing Officer (DO)

True or False: the DO has the authority to refuse to make any payment that might
be illegal or improper. - ANSWER- True

DoD policy is that the _______ will insulate the disbursing officer or certifying
officer from any liability associated with an erroneous payment. - ANSWER-
General Counsel Decision
any payment that should not have been made or that was made in an incorrect
amount under statutory, contractual, administrative or legally applicable
requirements. - ANSWER- Improper Payment

The President signed into law the __________________ to ensure agencies are
cutting down on waste, fraud and abuse. OMB has published implementing
guidance and established a website to display agency reports is _____________. -
ANSWER- Improper Payments Elimination and Recovery Act 2010
paymentaccuracy.gov

A proper payment has four main attributes: - ANSWER- right recipient

right amount
right reason
right time

Examples of Nonmonetary losses to taxpayers: - ANSWER- Right individual

received payment; however agency was unable to discern from documentation that
the payment was accurate.
Underpayments

Examples of Monetary losses to taxpayers: - ANSWER- Duplicate payments

payments for goods or services not received
Payments to deceased individuals

_____ required agencies to reduce waste, fraud and abuse and to increase the
recovery of improper payments when they occur. - ANSWER- Improper Payments
Elimination and Recovery Act

The largest area of DoD improper payments is in _______ estimated at $263M or

$5.3B in outlays. - ANSWER- Travel Pay

Military members' pay is always calculated on a ________. - ANSWER- 30-day

month.

Military members can receive ________ duties on a particular position such as

hazardous duty, medical, dental or submarine. - ANSWER- Special Pay

Military members are entitled to ____ of leave per year. - ANSWER- 30 days
If a military member dies on active duty, family members are entitled to remain in
quarters or receive quarters allowance for ___ days after the death of the member. -
ANSWER- 365 Days

A military member can elect up to ____ discretionary allotments to include

dependents, insurance, financial organizations. - ANSWER- 6

Subsistence, Quarters, Clothing and Uniforms, Personal are all ________ that
military members are entitled. - ANSWER- Allowances

______ allows employees to use sick leave to provide care for family members and
significant others. The employee may use up to ______ hours of sick leave, even if
the employee is not sick. - ANSWER- Family Friendly Leave Act---- 104 hours

_____ allows the voluntary leave transfer and voluntary leave bank programs.
Some restrictions apply such as leave donors may NOT contribute to immediate
supervisors. - ANSWER- Federal Employees Leave-Sharing Amendments

_____ provides up to 12 work weeks of job-protected unpaid leave during any 12-
month period for the birth or care of a child, a son or daughter for adoption or
foster care, care of immediate family member with a serious health condition, or
medical leave when employee is unable to work. - ANSWER- Family and Medical
Leave Act

Specific guidelines spell out separation of duties with civilian pay. Name 4 areas
separation is required between all employees involved in: - ANSWER- (1)
Certifying T&A
(2) compiling payroll and certifying payments
(3) recording payroll data in the pay accounts
(4) developing, testing, and maintaining the supporting computer systems.

How long are civilian pay records retained for? - ANSWER- 56 years

Civilian employees who are underpaid can request a special payment. The only
time a special pay request will be honored is when the employee receives less than
______ of his or her normal bi-weekly pay and allowances. - ANSWER- 90%

The first requirement for any travel is that the travel itinerary must be prepared and
a travel order _______ must be approved. The travel order establishes the
conditions for official travel and transportation at Government expense. -
ANSWER- DD Form 1610

If a travel order contains the statement "_______________" and the mission

requires it, the traveler is permitted to deviate from the place(s) stated on the travel
order and to change the days at the locations listed or even omit a location. -
ANSWER- variations authorized

After completion of official travel (or every 30 days for extended travel), the
traveler must submit a _______. - ANSWER- Claim for payment; Claim Form
1351-2

A travel order can authorize an administrative absence not chargeable to leave and
for which per diem and transportation allowances are not paid; this is called
__________________. - ANSWER- Permissive/Administrative Travel Time

___ involves the permanent movement of a military member or civilian employee

from one permanent duty station to another. - ANSWER- Permanent duty travel

All costs associated with a civilian Permanent Duty Travel move are normally
charged to the appropriation of the _______ activity. - ANSWER- gaining

All costs associated with a civilian Permanent Duty Travel move are normally
charged to the appropriation of the _______ activity. - ANSWER- gaining

True or False: Overseas activities pays permanent travel move cost for both gains
and loses. - ANSWER- TRUE

True or False: Depending on the terms of the contract, a contractor can request
payment before providing work or service. - ANSWER- TRUE

Advance payments can be made if: - ANSWER- (1) contractor give adequate
security
(2) it is determined that to provide the advance is in the public interest or facilitates
national defense
(3) advance is limited to no more than the unpaid contract price

Components of a Payment package - ANSWER- (1) a copy of the purchase order

or contract
(2) a proper invoice
(3) Receipt of the product or service "receiving report"
(4) Acceptance of the product or service "acceptance date"

What ten items constitute a proper invoice? - ANSWER- 1. name and address of
contractor
2. invoice date 3. contract #
4. Vendor Invoice #
5. Description, quantity, unit of measure, unit price
6. Shipping and payment terms
7. taxpayer Identification Number
8. Banking information
9. contact name, title, and phone
10. other documentation required by the contract.

_______ is considered to take place under the Prompt Payment rules when
acceptance documents have not been received in a timely manner. Unless
otherwise specified in contract, is considered to take place not later than _____
calendar days after the delivery of goods or performance of service, unless there is
a disagreement. - ANSWER- Constructive Acceptance; 7 calendar days

For purchase card invoices, the payment date is ______ days from the invoice
receipt date. - ANSWER- 30 days

The _______ requires Executive departments and agencies to pay commercial

obligations within certain time periods and to pay interest penalties when payments
are late. - ANSWER- Prompt Payment Act of 1982

True or False: Under the Prompt Payment Act, agencies can make payment within
15 days of receipt of a proper invoice but without evidence that goods and services
were received, in certain circumstances. - ANSWER- TRUE

True or False: Agencies may accelerate payments for invoices under $2500,
payments to small businesses, payment to related emergencies, disasters, and
military deployments. - ANSWER- TRUE

Purchase Order Date: June 15 Purchase Order Terms: 2/10 Net 30 Vendor's
Invoice Date: July 17
Invoice receipt Date: July 18
Invoice Terms: 2/10 Net 30
Date Supplies received: July 15
Date Supplies Accepted: July 21
Amount of Invoice: $20,000 - ANSWER- 1. What is the due date for making a
discount payment? Vendor Invoice Date + 10 days = July 27
2. How much would you pay the vendor if you take the discount?
20000*.98= $19,600
3. Assuming you are unable to take the discount, what is the due date for a net
payment?
July 21 + 30 days = Aug 20

The create Constructive Acceptance add ____ days to date goods or services were
received. - ANSWER- 7 days

Compare Constructive Acceptance and Actual Acceptance dates: take the earlier of
the two and add ___ days to get the Due Date. - ANSWER- 30 days

True or False: If a contract dispute causes a late payment; Interest does not accrue.
- ANSWER- TRUE

As the principle agency responsible for DoD finance, ____ has responsibility for
performing and/or overseeing all disbursing functions. - ANSWER- DFAS

Prompt payment rule states that the period available to an agency to make a timely
payment without incurring an interest period begins _______. - ANSWER- on the
date of receipt of a proper invoice.

If an agency fails to annotate an invoice with the date received , what date used to
determine the start date for the payment period? - ANSWER- date placed on
invoice by the contractor

A ____ is an identification number that indicates the authority to receive and

disburse public civilian funds and issue checks on the Treasury of the U.S. This
must appear on all documents and reports processed by that disbursing office -
ANSWER- DSSN

Annually, by Nov 15, agencies must report to _____ their performance of

achieving their interest payment goals. - ANSWER- DFAS

DSSN's are assigned by the Treasury to DFAS and include: - ANSWER- The
location code of each specific office
The disbursing office's identification
A _______ is any tactical unit that is authorized to provide disbursing services
under an assigned DSSN. - ANSWER- Tactical Disbursing Office

As the principal agency responsible for DOD finance, ______ has the
responsibility for performing and/or overseeing all disbursing functions. -
ANSWER- DFAS, with the exception of any tactical unit

A ______ is a payment to an individual or organization for goods furnished or

services rendered. In some cases, it is to transfer funds from one appropriation or
fund to another. - ANSWER- disbursement

The disbursement _______ is the authority for a DO to make payments for

Government obligations. They are consecutively numbered and prepared in
permanent non erasable ink. - ANSWER- voucher

____ is the preferred method to transfer funds other than a transaction originated
by cash, check, or similar payment instrument, that is initiated through an
electronic terminal, telephone, computer, or magnetic tape for purpose of ordering
instructing, or authorizing a financial institution or authorized payment agency to
debit or credit an account. - ANSWER- EFT (Electronic Funds Transfer)

The Automated Clearing House (ACH) network has determined that payments
made by the Government-sponsored ________ are to be considered EFT. -
ANSWER- charge card

The Treasury's ___________ of the Department of Treasury is responsible for

managing the Government's daily cash position. - ANSWER- Bureau of the Fiscal
Service

In accordance with Chapter 5 of the FMR, DO's disbursing $50 million or more in
a single transaction, or in multiple transactions of a common nature, must report to
FMS at least _______ before the payment date. - ANSWER- 2 business days

If a disbursement of over $500 million is anticipated, a minimum of _______

advance notice is required. - ANSWER- 5 business days

Name 5 types of Disbursements of Government Funds - ANSWER- Electronic

Funds Transfer
Treasury Check
Large Disbursements
Disbursing/Payment Systems
Miscellaneous Payments

_________ refers to a range of financial functions conducted via electronic

communications and data processing to transfer information between one or more
parties. - ANSWER- Electronic Commerce

Name 3 types of Electronic Commerce - ANSWER- Electronic Document Access

(EDA) - Read Only
Electronic Data Interchange (EDI) - Computer to computer
Electronic Funds Transfer (EFT)

Law requires Federal Payments in the U.S., Puerto Rico, overseas locations, and
afloat units be made by ____. - ANSWER- EFT (Electronic Funds Transfer)

3 examples to EFT are: - ANSWER- Vendor Express - used by vendors to receive

payment
Government Purchase Card
Card Acquiring Service (CAS) used by Federal Agencies to collect debts via major
credit cards.

The _______ is a collection and processing service provided by certain financial

institution to help Federal Government agencies process paper checks and other
remittance documents that are received through the mail. - ANSWER- General
Lockbox Network (GLN)

A _____ can be either a vouchered or unvouchered transaction - ANSWER-

Collection

______ transactions occur when a DO receives cash or negotiable instruments that

are not credited to an appropriation or fund and, therefore, not supported by a
formal collection voucher. These transactions increase the DO's accountability. -
ANSWER- Unvouchered

Name 3 types of collections: - ANSWER- Receipts Reimbursements Refunds

____ are individuals who have been designated to perform duties relating to the
collection of official funds, including funds held as safekeeping deposits, at a point
other than a disbursing office. - ANSWER- Collection Agents
Receipts are collected into the DO's accountability by use of a _________. -
ANSWER- DD Form 1131 (Cash Collection Voucher)

______ are amounts earned from property sold or services furnished to the public
or to another U.S. Government Agency. - ANSWER- Reimbursements

______ are recoupments (collection) of excess payments. - ANSWER- Refund

Agency financial information is provided thru Treasury to ____ to adhere to

financial reporting requirements. - ANSWER- OMB

The Governmentwide network by which agencies provide automated financial

reporting to FMS and the OMB. It provides agencies with reports on receipt and
disbursement activity other Fund Balance with Treasury transactions. - ANSWER-
Governmentwide On-Line Accounting Link System (GOALS)

Intragovernmental payments are made using the Intragovernmental Payment and

Collection System (IPAC), a multiple-component application that consists of three
components. - ANSWER- (1) Basic IPAC
(2) Retirement and Insurance Transfer System (RITS)
(3) Treasury Receivable Accounting and Collection System interface (TRACS)

For receivables outside DoD, ___ is the preferred method of billing/collection. -

ANSWER- IPAC

Almost ____ of IPAC transactions pertain to buy/sell entries processed by Federal

Agencies. - ANSWER- 90%

________ requires that any debt more than 180 days old and not in litigation be
referred to the U.S. Treasury for action. - ANSWER- Debt Collection
Improvement Act of 1996 (Public Law 104-134)

Per DoD FMR Volume 16- Collection action can begin as early as ___ days from
debt notification. - ANSWER- 60 days

True or False: Treasury does charge a fee for their debt collection services. -
ANSWER- TRUE
For Collection of debt owed by a current military member or a civilian employee,
DOD shall send one letter that explains how much is owed and why. This provides
the person a opportunity to pay the amount due. If the amount is not paid or
arrangements made then _______________. - ANSWER- an offset against accrued
pay will automatically be made.

For collection of debt owed by former military member and civilian employees,
DOD shall send one letter that explains how much is owed and why and given the
opportunity to repay the amount. If actions are unsuccessful matters are referred to
_________ - ANSWER- DFAS Indianapolis Center for additional action. DFAS
may proceed with collections actions allowed by law.

____ authorizes the IRS to collect past-due debts to Federal agencies. The federal
agency sends debts that have been unable to collect but are still viable to the IRS
for offset against tax refunds. - ANSWER- USC Title 31 Money and Finance
Chapter 37 Section 3720A
USC Title 26 Section 6402

The Federal Claims Collections Standards (FCCS) require the issuance of ___ debt
notification letter to the debtor and can be initiated either by the KO or the Debt
Collection Office (DCO). - ANSWER- 1

_____ are responsible for determining the amount of contract debt that are the
result of overpayments or erroneous payments and initiating collection action on
debts. - ANSWER- Payment Offices

When a contract modification results in a reduced amount due to a contractor, but a

disbursement has already been made for a higher amount, it is not considered an
______. The KO must ensure a demand letter is sent to the contractor for recovery
of funds. - ANSWER- erroneous payment

Referral of delinquent debt to the Debt Management Office (DMO) Thresholds

are: - ANSWER- $25 or more if contractor has a Tax ID Number
$100 or more if the contractor does not have a TIN

Debts must be forwarded to the DMO no later than __ days following the debt
repayment due date. - ANSWER- 90
The Debt Collection Improvement Act (1996) requires agencies to refer any
eligible debt more than ___days delinquent to Fiscal Service for cross-servicing. -
ANSWER- 180 days

Federal agencies must notify Treasury Offset Program (TOP) of all nontax debts
delinquent more than ___ days. - ANSWER- 120

___ is responsible for the Do Not Pay (DNP) initiative including establishing a
working system for repayment and pre-award review- and providing guidance,
oversight, and assistance to agencies. - ANSWER- OMB

___ is a list of entities or peoples that should not be paid. - ANSWER- DNP (Do
Not Pay)

The DoD ___ (deputies, agents, cashiers, or other custodians of funds) are
responsible for safeguarding public funds and the related instruments and
documents with which they are entrusted. - ANSWER- DOs

___ means personal liability for the amount lost. - ANSWER- Pecuniary Liability

_____ are pecuniary liable for erroneous payments that result from information,
data, or service they negligently provide to the DO. - ANSWER- Certifying
Officers

Access to resources and records should be limited to _________ and accountability

for the custody and use of resources should be assigned and maintained. -
ANSWER- authorized individuals

True or False: Each DO must be provided with a separate container, such as a safe,
to secure funds. - ANSWER- TRUE

At least ________, the DO shall make an inspection-- maintain a record of the

inspection-- to ensure that office security measures are in place. Inspection will
cover 18 different aspects of security detailed in DoD FMR Volume 5 Chapter 3. -
ANSWER- semiannually

Three types of irregularities in an account are: - ANSWER- Out of balance

Check Issue Overdraft
Check Underdraft
____ term that describes any irregularity in a financial accountability of a DO's
account categorized as physical losses or overages of funds - ANSWER- Out of
Balance

This situation occurs when the amount of the check is greater than the amount
reported by the DO or when the amount of the check is greater than the amount the
payment voucher shows as due. - ANSWER- Check Issue Overdraft

This situation occurs when the amount of the check is less than the amount
reported by the DO or when the amount of the check is less than the amount the
payment voucher shows as due. - ANSWER- Check Underdraft

A check is determined _________ if after 60 days from the date of issue, it has
been impossible to deliver. - ANSWER- undeliverable

For undeliverable checks, the DO will attempt to deliver the check to the payee for
a ___ period. - ANSWER- 60 day

In accordance with DOD FMR Volume 5, if a check is not delivered with 60 days
after the date of issue, the check will be - ANSWER- disposed of

Undeliverable checks will be processed on a Schedule of Canceled or

Undeliverable checks ______ which credits the proceeds to the appropriation
originally charged when the check was issued. - ANSWER- SF 1098

All US Treasury checks are payable up to _____ from the date of issue. After that
time they are no longer negotiable. - ANSWER- 1 year

A check that has become spoiled and non-negotiable should be returned to the
_____. Only the ____ has the authority to reissue a check. - ANSWER- DO, DO

The Barring Act (31 USC 3702) requires the Government to receive a claim within
____ from the time a claim accrues, other than entitlements. - ANSWER- 6 years

Daily Statement of Accountability ________ must be prepared for each day that
business is transacted. This balanced report ensures agreement between the
disbursing office's cash accountability to the Treasury and disbursement and
collection transactions recorded in the accounting system. - ANSWER- DD 2657
"DFAS SUBMITS"
Under Disbursing Office reporting requirements, a ___must be prepared for each
day that business is transacted. It reports all types of transactions that affect fund
balances for the day, and month-to date. - ANSWER- Daily Statement of
Accountability, DD 2657

_____ must be prepared daily to summarize the transactions by voucher number. It

must identify the type of payment, and is used to assure that all voucher numbers
are accounted for an that all payment and collection vouchers are entered in
accountability records. - ANSWER- Voucher Control Log, DD Form 2659

An ____ must be prepared to deposit all currency, coins, and negotiable

instruments to the credit of the US Treasury. It is used to verify the deposit of
funds with the related collection vouchers. - ANSWER- Deposit Ticket, SF 215

DO's and their offices are required to maintain detailed and complete records to
ensure that all transactions have been recorded and are auditable. These records
must be keep for a period not less than ________. - ANSWER- 6 years and 3
months

___ is a system that allows users to manage and report all check and cash deposits
in one place. - ANSWER- OTC Net

CDFM MODULE 3.3

The rule that states a fiscal year appropriation may be only obligated to meet a
legitimate need arising in the fiscal(s) for which the appropriation was made is
called the ________________. - ANSWER- Bona Fide Need

The _______audits the performance of the executive branch. - ANSWER- General

Accounting Office

The accounting entity for DoD that maintains a central general ledger to account
for DoD resources, determines cost operations, is _______ - ANSWER- Defense
Finance Accounting Services

The regulation that is composed of 15 volumes and provides DoD components

with the policy and procedures within the responsibility of the Under Secretary of
Defense (Comptroller) is the__________ - ANSWER- The DoD 7000.14R,
Financial Management Regulation (FMR)
The FMR 7000.14 volume that covers the form and content of DoD Audited
Financial Statement is ___ - ANSWER- Volume 6b

_______are revolving funds used for programs authorized by law to conduct a

cycle of business-type operations in which outlays generate collections. -
ANSWER- Public Enterprise Funds

__________are part of the budget and record receipts not earmarked by law for a
specific purpose, such as almost all income tax receipts. - ANSWER- General
Funds

The US Standard General Ledger established the account structure (chart of

account) The Federal Accounting structure chart number for Memorandum is
_____________. - ANSWER- 8000

__________account for the receipt and expenditure of monies by the government

for carrying out specific purposes and programs in accordance with the terms of a
statute that designates the fund as a trust fund. - ANSWER- Trust Funds

The Federal accounting framework includes three accounting systems ________,

________, &_______. - ANSWER- Budgetary accounting, financial accounting, &
managerial cost accounting

A MIPR maybe used as a __________ or__________ and __________cross fiscal

years. - ANSWER- Project Orders, Economy Act Orders: may

The US Standard General Ledger established the account structure (chart of

account) The Federal Accounting structure chart number for assets is
_____________. - ANSWER- 1000

The US Standard General Ledger established the account structure (chart of

account) The Federal Accounting structure chart number for Net Position (Capital)
is _____________. - ANSWER- 3000

The US Standard General Ledger established the account structure (chart of

account) The Federal Accounting structure chart number for Liabilities is
_____________. - ANSWER- 2000
The US Standard General Ledger established the account structure (chart of
account) The Federal Accounting structure chart number for Revenues and
Financing Sources is _____________. - ANSWER- 5000

__________consist of receipts for Federal fund receipts that laws have earmarked
for specific purposes and associated appropriation accounts for the expenditure of
the earmarked receipts. - ANSWER- Special Funds

True or False? The Foreign Currency Fluctuation reports are the DD-Comp (1751)
Foreign Currency Fluctuations, Construction Defense and DD-COMP (1506)
Foreign Currency Fluctuations, Defense. - ANSWER- TRUE

The ___________ assists the President in preparation (A11) and execution (A34)
of the budget. - ANSWER- Office of Management & Budget

The _________ is the federal government banker. They manage the balances and
flow of funds required to support the government. - ANSWER- Department of the
Treasury

The Budgetary accounting equation is ________________. - ANSWER-

Resources = Status of Resources

The US Standard General Ledger established the account structure (chart of

account) The Federal Accounting structure chart number for Gains and losses is
_____________. - ANSWER- 7000

The Proprietary Accounting equation is___________. - ANSWER-

Assets=Liabilities + Net Position

Items intended to be used by entity, tangible assets and not intended for sale are
considered_______. - ANSWER- Plant, Property & Equipment

The process of accumulating, measuring, analyzing, interpreting and reporting cost

is called_________. - ANSWER- Managerial Cost Accounting

The measurement of an entity's ability to meet its current obligations is

called________. It is a measure of liquidity. - ANSWER- Current Ratio

The test of an entity's immediate solvency is made by comparing the sum of cash
and accts receivable commonly known as the quick assets to current liabilities is
known as ______________. It is also known as the acid-test. - ANSWER- Quick
Ratio

The quotient of two numbers which allows the manager to assess the behavior over
a period of time is called__________. - ANSWER- Ratio analysis

The ____________issues standards for state and local governmental, not for profit
entities. - ANSWER- Government Accounting Standards Board

The _________ is calculated by taking sales and subtracting the cost of goods sold.
- ANSWER- Gross Margin

The _________is calculated by taking sales and subtracting the cost of goods sold
and dividing that amount by sales. - ANSWER- Gross Margin Profit Ratio

The ____________ is calculated by taking net profit divided by sales. - ANSWER-

Net Profit Margin Ratio

When adequate written criteria is not available for the conduct of an audit it is not
appropriate to develop criteria for the audit. - ANSWER- FALSE

The ______ is the investigative arm of Congress. - ANSWER- General Accounting

Office

The _______ exists to support the Congress in meeting its Constitutional

responsibilities and to help improve the performance and accountability of the
federal government for the American people. They examine the use of public
funds, evaluates federal programs and activities, and provides analyses, options,
recommendations, and other assistance to help the Congress make effective
oversight, policy, and funding decisions. - ANSWER- General Accounting Office

The American Institute of Certified Public Accountants governing Council voted

to recognize the ___________ as the standards-setting body for federal
government entities. - ANSWER- Federal Accounting Standards Advisory Board
(FASAB)

________ are the recovery of excess payments and are credited to _________. -
ANSWER- Refunds; the appropriation that made the payment
_______are amounts earned and collected from the selling of goods and services
and must be approved by ____________. - ANSWER- Reimbursements; Under
Secretary of Defense (Comptroller)

The military pay is always calculated on a _______month. - ANSWER- 30

All of the following are examples of military allowance EXCEPT. - ANSWER-

Bonus payments

The ___________ activities are designed to ensure the executive branch's

accountability to the Congress under the Constitution and the government's
accountability to the American people. - ANSWER- General Accounting Office

If a payable, under $100.00, owed by the government and not billed within
________ or if the amount is over $100.00 and documentation exists that at least
___ written attempts have been sent, the item is written off and deobligated. -
ANSWER- 90 days; 2 written attempts

The _________ or Balance Sheet presents assets, liabilities, and equity of the DoD
component as of the end of the Fiscal year. - ANSWER- Statement of Financial
Position

The ________ or revenue and expense statement, presents the financial results of
activities of the reporting entity for the fiscal year including revenues and other
financial sources such as appropriations, and operating expenses. - ANSWER-
Statement of Operations and Changes in Net Position

The authority to review and approve financial reports and statements prepared by
DoD components for transmittal to the Secretary of Defense, the OMB, the
President, the Congress or external groups is that of the______. - ANSWER- Chief
Financial Officer, DoD

An ________represents the amount of disbursements as reported by the finance

networks which have not been accepted by the operating level accounting entity. -
ANSWER- Un Distributed Disbursements

The ______account represents the net funds available to DoD that are not yet
deposited in the US Treasury or are not considered an asset of DoD Component. -
ANSWER- Cash
The ________ account represents the amounts received for which a deposit has not
been issued by the US Treasury. - ANSWER- UnDeposited Collections

The __________includes items that are related to the cost of producing or

purchasing the goods that were sold in that accounting period. - ANSWER- Cost of
Goods Sold

True or False? Plant, Property and equipment for DoD represents items such as
buildings, land, ships and planes which are capitalized and depreciated over at least
a 10 year period. - ANSWER- FALSE

Under federal statues, DoD employees are not allowed to work longer than 8 hour
work days even if the combined total of the two week period is only 40 hours. -
ANSWER- FALSE

Examples of premium pay include all except ____________. - ANSWER- TDY

pay

No premium payments may or compensatory time may be granted to an employee

whose basic rate of pay is greater than the maximum rate for a ______. -
ANSWER- GS15

Compensatory time off must be used by the ________pay period after that in
which the overtime was worked. The unused comp time worked will be paid at the
overtime rate at which it was earned. - ANSWER- 26th

Night Differential pay is paid for employees who work between the hours of
_________ and ________. - ANSWER- 6PM to 6 AM

The maximum amount of time that may be given to a full-time employee for a
single achievement is ____ hours. - ANSWER- 40

The ______ account represents the authorized amount of cash advanced by

disbursing officers and held by Agency cashiers at personal risk. - ANSWER-
Imprest Funds

For the first time the _______, required annual audited financial statements for the
United States Government. - ANSWER- Chief Financial Officers Act of 1990 as
amended by the Government Management Reform Act of 1994
The __________ shall be responsible to provide accounting and reporting support
for the military departments, validate final reports, and provide certifications in
support of DoD component customers. - ANSWER- Defense Finance and
Accounting Service (DFAS)

The Foreign Currency Fluctuations, Defense Appropriation is only available to

fund___________. - ANSWER- A centrally managed account to cover net losses
in foreign exchange rates in the selected currencies

________ are funds that conduct business-type operations primarily between

government agencies. The budget records the collections and outlays in the same
account. - ANSWER- Intra-Governmental Funds

Physical inventories of DoD fixed assets shall be done every _____years and real
property every ____years. - ANSWER- 3; 5

The ________discloses the basis for and reported the significant restrictions on the
use of assets the amount and nature of significant contingent liabilities, and such
explanatory information on the assets, liabilities, and equity as is necessary to fully
and clearly disclose the financial position of the reporting entity. - ANSWER-
Standard Form 220 (Report on Financial Position)

The _______ and the _________ must be forwarded to the Treasury no later than
the close of business of the eighth workday after the close of the reporting month. -
ANSWER- Standard Form 1219 (Statement of Accountability) and DD Form 1329
(Statement of Transactions)

The _____ and the ________ shall be submitted as of Sept 30th of each year. -
ANSWER- Standard Form 221 (Report on Operations) and Standard Form 222
(Report on Cash Flows)

The _________ reconciles the operation expenses and cash outlay for the fiscal
year and is reported as of ___________of each year. - ANSWER- Standard Form
223 (Statement on Reconciliation). submitted as of Sept 30 of each year by the date
established by the appropriate departmental-level accounting entity.

The _______ requires that all monies collected must be deposited in the Treasury,
unless another law specifies a different treatment. - ANSWER- Miscellaneous
Receipts Law
Any cost that can be identified specifically with handling cases or accounts during
the debt collection process. (I.e., personnel, supplies, contract services) is a
________. - ANSWER- Direct Costs

The ________ is the board/entity established to create generally accepted

accounting principles for federal financial reporting entities. - ANSWER- Federal
Accounting Standards Advisory Board

The _________ is the board/entity established to establish and improve standards

of state & local governmental accounting and financial reporting that will result in
useful information on financial reports and guide and educate the public. -
ANSWER- Governmental Accounting Standards Board

The approved accounting principles announcements published by the Federal

Accounting Standards Advisory Board are called__________. - ANSWER-
Statements of Federal Financial Accounting Standards (SFFAS)

The principle DoD cash account is its____________. - ANSWER- Amounts

shown in the Fund Balance with the US Treasury

Foreign currencies shall be accounted for in separate accounts from US Currency

and shall be reported at the ____________. - ANSWER- current rate of the US
dollar

Fixed assets are those that are used in the production of other assets and have a
useful life of more than __________ years. - ANSWER- 2

The ________shall establish appropriate internal controls to ensure that data

provided to DFAS is accurate complete, and supportable. - ANSWER- DoD
Components

All debts and amounts resulting from the occurrence of any event for which a
determination is made that money is owed to US government shall be as a
__________________ - ANSWER- accounts receivable

The ________shall establish procedures to ensure that the process for preparing
financial reports is consistent, auditable, timely, and controls are in place to
provide for the accuracy of the reports. - ANSWER- Director, Defense Finance
and Accounting Service
Any cost that can be identified specifically with the debt collection process and at
least one other activity is a ___________________. - ANSWER- Indirect Costs

As a rule, operating materials and supplies shall not exceed the amount expected to
be used within a ________ time period unless properly justified. - ANSWER- 30

True or False? Advances and prepayments for goods and services are not
authorized under any circumstances. - ANSWER- FALSE

Normally, advance payments for services may not be made for more than a
_______day period. - ANSWER- 90

Travel advances shall only be allowed absolutely necessary and shall not
exceed_____ of estimated per diem costs. - ANSWER- 80%

________ is a technique that allocates the cost of an item as an operating expense

over the period for which the asset is expected to provide benefits. - ANSWER-
Depreciating

Accounts receivable subsidiary records should be reconciled to the control

accounts_______________ - ANSWER- at least monthly

The _____ reconciles the operating expenses and cash outlays for the fiscal year
and is reported by ___________ of each year. - ANSWER- Standard Form 223
(Statement on Reconciliation). submitted as of Sept 30 of each year by the date
established by the appropriate departmental-level accounting entity.

The purpose of the __________ is to establish policy and procedures for approving
and publishing financial statements. - ANSWER- OMB Circular A-134

The role of the _______ is to deliberate upon and make recommendations to the
"Principals" (Comptroller General, Sec of Treasury, Dir OMB), on accounting
principles and standards for the Federal Government and its agencies. - ANSWER-
Federal Accounting Standards Advisory Board (FASAB)

The _________ is represents the net effect of all of a Departments collections and
disbursements. - ANSWER- Fund Balance with Treasury
Which report discloses the financial results of activities, including revenues and
other financing sources, and operating expenses. - ANSWER- Standard Form 221
(Report on Operations)

Upon implementation of agency reporting via the Federal Agencies' Centralized

Trail-balance System (FACTS), which reports will be replaced and become
obsolete. FACTS replaces _____, _____, ____, & ______? - ANSWER- SF 220
Statement of Financial Position ; SF221 Statement of Operations; SF 222 Cash
Flow Statement; & SF 223 Statement of Reconciliation

What Act established the GAO (Legislative Branch) to audit financial transactions
of the executive branch of government? - ANSWER- The Budget and Accounting
Act of 1921

An officer or employee shall be subject to appropriate discipline for violating the

Anti-Deficiency Act, but what determines the severity of the punishment? -
ANSWER- Whether or not the act was willful

The life of an appropriation is specified by which body of government? -

ANSWER- Congress

What type of funds are from the sale of goods and services to DoD military and
civilian personnel and their family members? - ANSWER- Non-Appropriated
Funds

Any enforceable agreement between an agency and a business concern for the
acquisition of property or services is called a ________? - ANSWER- Contract

Which SFFAS # _________ describes the process of managerial Cost accounting?

- ANSWER- SFFAS # 4

What is the major revolving fund in DoD and replaced the Defense Business
Operations Fund (DBOF)? - ANSWER- The Working Capital Fund (WCF)

What are the two self-balancing set of accounts in the U.S. Standard General
Ledger (USSGL)? - ANSWER- Budgetary and Proprietary

Which financial statement shows the components of the net cost of the reporting
entity's operation for the period? - ANSWER- The Statement of Net Cost
Which statement is designed to report the differences in accrual based measures in
the Statement of Net Cost and obligation based measures of the Statement of
Budgetary Resources? - ANSWER- The statement of Financing

The statutory requirements for accounting come from the __________ and have
been expanded in the US Codes and specific accounting related legislation. "No
money shall be drawn from the Treasury but in Consequence of appropriations
made by law..." and "....A regular statement and account of receipts and
expenditures of all public money......shall be published from time to time." -
ANSWER- The U S Constitution

Joint Financial Management Improvement Program (JFMIP) conducts a

continuous program for improving accounting and financial reporting in the
Federal Government. The JFMIP includes what three agencies? - ANSWER-
OMB, GAO, & Department of Treasury

Which agency implements an approved standard by publishing the standard and

updating 97-01 (Form and content of Financial Statements)? The published
standard become Federal GAAP and must be followed by Federal agencies. -
ANSWER- OMB

Which agency updates the US Standard General Ledger to accommodate any

changes required by a new standard and makes changes to the financial statement
crosswalks required by changes to 97-01 (Form and Content of Financial
Statements)? - ANSWER- Dept of Treasury

Which agency updates Title 2 to include new standards and formulates and
implements Generally Accepted Government Auditing Standards (GAGAS) that
are to be used by government auditors in performing financial statement audits. -
ANSWER- GAO

While the SFFASs cover most Federal transactions, agencies may encounter some
transactions not clearly addressed by the standards. What is the hierarchy for
determining the appropriate accounting interpretation? - ANSWER- 1) Standards
published by OMB; 2) Interpretations of OMB's Circular A-134; 3) Requirements
of OMB Form and Content Bulletin (97-01); 4) Accounting principles published
by other authoritative standard -setting body
What kind of appropriations usually provide for routine mission work, i.e.
Operations & maintenance and Salaries and Expenses funding. - ANSWER-
Annual Appropriations

What kind of appropriations are funds for projects or programs that take longer
than one fiscal year to complete. Research, Development, Test and Evaluation
(RDT&E) funding is an example. - ANSWER- Multiyear Appropriations

What kind of appropriations do not expire. Unless specified in the appropriation,

there is no limit to the number of years for which the appropriation is available. -
ANSWER- No-Year Appropriations

Which appropriations are funds covered by basic laws that allow the Secretary of
the Treasury to pay without further enactment by Congress. Examples are interest
on debt, Federal retirement, Social Security. - ANSWER- Permanent (Indefinite)
Appropriations

What is the time limit in years for DoD appropriation for Shipbuilding and
Conversion and Military Construction? - ANSWER- 5 year

What is the time limit in years for DoD appropriation for Operation and
Maintenance and Military Personnel? - ANSWER- 1 year

What is the time limit in years for DoD appropriation for Research, Development,
Test and Evaluation (RDT&E)? - ANSWER- 2 year

What is the time limit in years for DoD appropriation for procurement (excluding
SCN)? - ANSWER- 3 year

CDFM MODULE 3.4

Initiated & conducted by basic legislative authority, or in response to a
Congressional request. - ANSWER- Federal Audit
Requires the Treasury to annually prepare & submit 2 the President & Congress an
audited financial statement 4 the preceding fiscal year, covering all accounts &
associated activates of the executive branch. - ANSWER- The Government
Management reform Act of 1994

Audit organization within DoD. Performs all necessary contract audits, provides
advisory services for contracts & subcontracts 2 all DoD Components responsible
4 procurement & contract administration. - ANSWER- The Defense Contract
Audit Agency (DCAA)

Financial Audit, Performance Audit, Attestation Engagements. - ANSWER- Types

of Audits

When expertise is not available to perform the audit or temporary assistance is

required 2 meet audit reporting requirements mandated by law or DoD
requirements. - ANSWER- The only time DoD can contract for non-Federal
auditors 2 perform audit services on DoD projects or entities

What type of audit: Auditors issue an examination, a review, or an agreed upon

procedures report on a subject matter, or an assertion about a subject matter that is
the responsibility of another party. - ANSWER- Attestation Engagements

Types of Audit- objectives may & generally do differ for each audit, & are defined
by the audit organization. - ANSWER- Performance Audit

Type if Audit-objectives are predetermined & not defined by the audit

organization. - ANSWER- Financial Audit

Type of audit-The generic objective is to provide an opinion on whether the

financial statements are presented fairly in all material respects. - ANSWER-
Financial Audit

Type of audit- A common generic objective is to assess the adequacy of

performance, & if poor, appraise the consequences & determine the cause &
actions that might be taken to improve performance. - ANSWER- Performance
Audit

Which audit is expected to determine whether the entity has financial information
that is presented in accordance with established or stated criteria? - ANSWER-
Financial Audit
Within what audit type: the audit objectives vary widely & include assessments of
program effectiveness, economy, & efficiency, internal control, compliance w/
applicable laws, public policy? - ANSWER- Performance Audit

Of the 3 audit types, which one includes assessments of prospective analyses (

analysis or conclusions about information that is based on assumptions about
events that occur that occur in the future along with possible actions that the
audited entity may take in response to the future events? - ANSWER- Performance
Audit

Type of audit: adhered to specific financial compliance - ANSWER- Financial

Audit

What type of audit is expected to determine if an internal control structure over

financial reporting and/or safeguarding of assets that is suitably designed &
implemented to achieve the control objectives. - ANSWER- Financial Audit

Whether it is s financial audit, performance audit or an attestation audit that is

being performed, the auditor has the responsibility to consider? - ANSWER-
Compliance

Which audit is the auditor mostly interested in non-compliance where it may have
a direct & material affect on the financial statement? - ANSWER- Financial Audit

Which audit? Auditors have a responsibility to plan and perform audits to provide
reasonable assurance of detecting material misstatements, whether caused by error
or fraud, "they must remain alert of the possibility of abuse". - ANSWER-
Financial Audit

Which Audit? The practitioner (equivalent to auditor) Reviews for errors, fraud,
illegal acts, violations of contracts or grant agreements, or abuse that could have a
material effect on the subject matter. - ANSWER- Attestation Engagements

Aimed at avoiding any personal impairment to independence, two broad principle

governing non audit services: non audit services should not involve performing
management functions or make management decisions. Secondly audit
organizations should not audit their own work or provide non audit services in
situations where non audit services are significant or material to the subject matter
of audits. - ANSWER- Under the General Standards of Independence in the
Yellow Book

Audit organizations select the areas for audit coverage by identifying 1. Regulatory
& statutory requirements. 2. Specific concerns of management & Congress. 3.
High risk areas. - ANSWER- Overall Audit Plan

The planning process has been influenced by the ? because it requires Federal
Agencies to be more effective in planning, budgeting, executing, evaluating, and
accounting for Federal programs. It intended to change the way many programs &
operations are managed. - ANSWER- Government Performance and Results Act
(GPRA)

Plan, Review, Report - ANSWER- Phases of a Government Audit

Audits need to be organized and controlled. Referred to as the basic tool used by
auditors to organize and control audits. - ANSWER- Audit program

These three things MUST be part of every audit. - ANSWER- Plan, Review,
Report

(Plan, Review, or Audit) Define the audit's objectives scope, & methodology to
achieve those objectives. - ANSWER- Plan

(Plan, Review, or Report) Develop evidence to support conclusions &

recommendations. - ANSWER- Review

(Plan, Review, or Report) Prepare a written report on the results of the audit. -
ANSWER- Report

Which phase? define the audit objectives, what the audit is intended to accomplish.
- ANSWER- Planning Phase

Which phase? the boundary of the audit defines the subject matter the auditors will
assess and report on. Includes the particular aspects of a program to be reviews,
necessary documents or records, the period of time reviewed and locations that will
be included. - ANSWER- Planning Phase
Which phase? Provide sufficient evidence to achieve the objective of the audit.
Auditors must consider whether to audit all transactions within the scope or audit
only a sample of transactions. - ANSWER- Planning Phase

Which phase? Consider materiality and the effectiveness of internal controls on

determining the nature, timing, and extent of auditing procedures and in evaluating
the results of those procedures. - ANSWER- Planning Phase

Which phase? Evaluate whether the audited entity has taken appropriate corrective
action to address findings and recommendations from prior audits that are
significant within the context of the audit objectives? - ANSWER- Planning Phase

Which Phase-Define audit's objectives & scope, Design methodology, consider

materiality and internal control effectiveness on procedures. - ANSWER- Planning
Phase

Which phase? Gather audit evidence that is sufficient and appropriate. -

ANSWER- Review Phase

Which phase? Gather information to support their findings. - ANSWER- Review

Phase

Auditors should obtain __ and ___ evidence that computer processed data are valid
and reliable when those data are significant to the auditors findings. Often
performed by a physical inventory to verify computer generated listings. -
ANSWER- Sufficient and appropriate

True or false? When auditors use info gathered by officials as part of their
evidence, they should determine what the officials did to obtain assurance over the
reliability of the information. They may find it necessary to test management's
procedures. - ANSWER- True

Standards require that auditors document the evidence they gather in the form of
audit documentation, formerly know as? - ANSWER- Audit Working papers

The standards requires that the audit documentation be understandable to an

experienced auditor with ___ involvement in the audit. - ANSWER- no prior

Which phase? GAGAS requires auditors to prepare written or electronic audit

reports. - ANSWER- Report Phase
Which phase? GAGAS requires that results are communicated to management,
make the audit information available for timely use by management, comply with
standards for form, content and distribution. - ANSWER- Report Phase

Which type of Audit Reports? AICIPA standards, audit reports must include:
whether statements were in accordance with GAAP, inconsistencies with last year,
whether informative disclosures were reasonable adequate. AND per yellow book,
auditors need to follow GAO's added standards. - ANSWER- Financial Audit
Reports

How many types of opinions are there? - ANSWER- 4

What are these? Unqualified, qualified, disclaimer, adverse? - ANSWER- Types of

opinions

What are these? Unqualified - ANSWER- Best

What are these? Qualified - ANSWER- Exception

What are these? Disclaimer - ANSWER- Unable to render an opinion

What are these? Adverse - ANSWER- Material misstatement of fact and failure to
follow GAAP

What types of audit reports are retrievable, suitable form? Contents- objectives,
scope, methodology, Findings- control deficiencies, FWA, conclusion,
recommendations, Compliance with Yellow Book, Distribution and quality
elements. - ANSWER- Performance Audit Reports.

An auditor's recommendation is often considered a _____ element. - ANSWER-

Fifth

An auditor's recommendation should address the ____. - ANSWER- Cause

In addition to the Yellow Book reporting standards, guidance from GAO includes
the _____ of timely, accurate, objective, convincing, clear, and concise. -
ANSWER- Quality elements
Auditors tend to use the word___ to identify the results they found. - ANSWER-
Findings

What are the elements of traditional/classical findings? - ANSWER- Condition,

criteria, effect, cause

While condition, criteria, effect, and cause are the traditional framework, they may
or may not develop all these elements. It all depends on the ____ _____. -
ANSWER- Audit Objective

What is an essential element of public accountability and control. - ANSWER-

Auditing

What is a comprehensive assessment and report on the financial condition and/or

results of the performance of a government entity, program, or related activity? -
ANSWER- A Government Audit

Auditing contributes to the ____ and ____ by lending credibility to information

reported by others, by providing objective information about the information about
the performance of government programs and services and, specifics about where
improvements can be made and the impacts of those improvements. - ANSWER-
Accountability, control

Requires the audit of Federal organizations, programs, activities, and functions. -

ANSWER- Federal Legislation

Who issues audit requirements, policy and guidance? - ANSWER- Congress,

GAO,OMB, and President's Council on Integrity and Efficiency.

Who issues standards, the government auditing standards? - ANSWER- GAO

Government Auditing standards are referred to as? - ANSWER- Generally

Accepted Government Auditing Standards (GAGAS)
or the Yellow Book

True or False? GAGAS must be followed by GAO, IGs, other federal auditors,
(Army, Navy, Air Force) IR groups, non-federal auditors with auditing federal
organizations, program, activities, and functions. - ANSWER- True
What is 1.auditors independence 2. auditor professional judgment 3. auditor
competence 4. quality control & assurance - ANSWER- The four general standards
that apply to all audits & attestation engagements.

What are the two impairments in auditor independence? - ANSWER- Personal and
External

Which impairment occurs when auditors are deterred from acting objectively &
exercising professional skepticism by pressures, actual or perceived, from
management and employees of the audited entity. - ANSWER- External

Which impairment results from a relationship, beliefs that might cause auditors to
limit the extent of the inquiry, limit disclosures, or weaken or slant audit findings. -
ANSWER- Personal

What should be free from personal/external impairments to independence, Be

organizationally independent, maintain independent attitude and appearance. -
ANSWER- Independence

Auditors should exercise reasonable care & diligence. Maintain integrity &
objectivity. Carefully select the methodology & procedures for gathering
information. What kind of judgment is this? - ANSWER- Auditors Professional
Judgment

What defines the scope the work, the methodology for gathering information, and
the amount of evidence to be gathered. - ANSWER- Auditors Professional
Judgment

What exercises professional skepticism, not to be satisfied with less then

persuasive evidence in examining a program. Obtains reasonable, NOT absolute,
assurance that material misstatements in occur. - ANSWER- Auditors Professional
Judgment

Audit organization staff should posses knowledge of ___, skills to communicate

clearly & effectively, skills appropriate for the work performed, such a statistical
sampling, information, technology, or specialized analytical techniques. -
ANSWER- GAGAS
The GAGAS standard for ________ states " staff assigned to perform the audit or
attestation engagement should posses adequate professional proficiency for the
task assigned." - ANSWER- auditor competence

Auditors must complete _____ hours of continuing professional education (CPE)

every two years, with a minimum of ____ being completed in any one year of the
two-year period and at least ____ of the 80 directly related to government auditing,
the government environment, or the specific or unique environment in which the
audited entity operates. - ANSWER- 80, 20, 24

Audit organizations are responsible for ensuring that staff members _____ have the
necessary knowledge, skill, and discipline needed to conduct each audit. -
ANSWER- Collectively

The Army Audit Agency is reviewed by? - ANSWER- Naval Audit Service

The GAO is reviewed by audit organizations of ____ ____ - ANSWER- other

nations

External review performed by peers should occur every ___ years. - ANSWER- 3

Auditor Standards: Quality Control & Assurance has two components. 1. System
of _____ ___ and assurance. 2. External ____ ___ performed every ___ years. -
ANSWER- Quality control, peer review, 3

Audit organizations must establish a system to provide ____ ____ that the audit
organization and its personnel comply with professional standards and applicable
legal and regulatory requirements. - ANSWER- reasonable assurance

___ ___, oversight and review are essential elements of the quality control and
assurance standard. - ANSWER- Internal control

This system should include policies and procedures to collectively address such
matters as leadership, independence, human resources, and a monitoring function. -
ANSWER- Quality Control ad Assurance

___ ____ standards address how audits are to be performed. These vary depending
on the type of audit or engagement being performed. It provides guidance for
auditors to follow when preforming the audit. - ANSWER- Field Work
What is the AICPA? - ANSWER- American Institute of Certified Public
Accountants

True or False. For Field work standards when performing a financial audit, the
Yellow Books incorporates three standards. Planning, consideration of internal
control and the need for evidence to support the auditor's opinion. In addition,
GAO adds 5 standards. - ANSWER- True

True or false. In performing a performance audit. AICPA doe snot have separate
standards. The Yellow Book include four field work standards related to planning.
1. consideration to internal control, evidence, supervising staff, audit
documentation (AKA working papers) - ANSWER- True

True or false. Attestation Engagements field work standards The Yellow Book
incorporates 2 field work standards form the AICPA and adds 6 standards from
GAO. - ANSWER- True

What provides guidance for auditors to follow when WRITTING audit and
attestations engagements reports? - ANSWER- Reporting standards

What requires that Federal inspections generally comply with the Comptroller's
General's standards for audits. - ANSWER- The inspector General Act of 1978.

Who serves as an independent and objective official for DoD? - ANSWER- IG

True or false. IG provides leadership, conducts, supervises, monitors, initiates

audits & investigations, recommends policy for economy, efficiency, &
effectiveness, recommends policies for prevention/detection of fraud and abuse. -
ANSWER- True

Who is 1. Office of Assistant Inspector General for Auditing 2. Army audit agency
3. Naval Audit Service 4. Air Force audit agency - ANSWER- DoD Internal Audit
Organizations

In addition to audits performed by DoD audit organizations, audits are also

performed by the U.S. ___ ___ ___. - ANSWER- Government Accountability
Office (GAO)

GAO is the ________ branch and reports to Congress. - ANSWER- Legislative

GAO is headed by ______ , who receives a _____ year appointment - ANSWER-
Comptroller General, 15

_____ preforms a wide range of audits, mostly performance, on issues such as

procurement, logistics, human resources, readiness, and other programs and
functions. - ANSWER- GAO

To ensure independence, DoD audit organizations should report directly to ___ or

____ ____ of the DoD Component. - ANSWER- Secretary, Under Secretary

True or False. DoD can contract for non-federal auditors when expertise is not
available with in DoD or when temporary assistance is needed. - ANSWER- True