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CDFM-A Module 4 study materials
CDFM-A Module 4 study resources

CDFM-A Module 4 practice questions

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Question 1Budget Process and Formulation

Under the federal budget process, which document does the President submit to Congress to formally propose spending, revenue, and deficit levels for the coming fiscal year?

  1. The Treasury Financial Report
  2. The Congressional Budget Resolution
  3. The annual appropriations act
  4. The Budget of the United States Government Correct answer.

Explanation

The President's budget request is submitted annually under the Budget and Accounting Act framework and lays out proposed spending, receipts, and deficit figures. It is a proposal, not binding law, and Congress uses it as a starting reference.

Question 2Budget Process and Formulation

The federal fiscal year used for budget execution begins on which date?

  1. October 1 Correct answer.
  2. July 1
  3. April 1
  4. January 1

Explanation

Since the shift mandated in the 1970s, the federal fiscal year runs from October 1 through September 30. Budget authority and outlays are recorded against that twelve-month window.

Question 3Budget Process and Formulation

Which congressional committee is primarily responsible for drafting the annual budget resolution that sets overall spending and revenue levels?

  1. The House and Senate Budget Committees Correct answer.
  2. The House Appropriations Committee
  3. The Joint Committee on Taxation
  4. The Senate Finance Committee

Explanation

The Budget Committees in each chamber draft the concurrent budget resolution, which establishes aggregate spending, revenue, and deficit targets. Appropriations and tax committees then act within those aggregates.

Question 4Budget Process and Formulation

Which term describes legal authority provided by Congress that allows an agency to incur obligations and make payments from the Treasury?

  1. Allotment
  2. Outlay
  3. Apportionment
  4. Budget authority Correct answer.

Explanation

Budget authority is the statutory permission to incur financial obligations that will result in outlays. Outlays are the actual cash disbursements that follow once obligations are liquidated.

Question 5Budget Process and Formulation

Which type of budget authority remains available for obligation without a further act of Congress until it is expended?

  1. Supplemental authority
  2. Annual appropriations
  3. Expiring authority
  4. No-year authority Correct answer.

Explanation

No-year authority does not expire and remains available until expended, which suits multi-year projects and revolving funds. Annual and expiring authority, by contrast, lapse after a defined period.

Question 6Budget Process and Formulation

Which phase of the budget cycle involves OMB distributing enacted budget authority to agencies by quarter or by activity?

  1. Audit
  2. Execution
  3. Formulation
  4. Apportionment Correct answer.

Explanation

Apportionment is the OMB action that divides available budget authority into amounts that may be obligated during specified periods or for specified activities. It is a control step that follows enactment and precedes agency execution.

Question 7Budget Process and Formulation

Which budget concept refers to spending that is controlled by permanent law rather than by annual appropriations acts?

  1. Discretionary spending
  2. Supplemental spending
  3. Program spending
  4. Mandatory spending Correct answer.

Explanation

Mandatory spending is governed by authorizing statutes such as Social Security and Medicare, so it occurs without annual appropriation action. Discretionary spending, by contrast, requires annual appropriations.

Question 8Budget Process and Formulation

Which of the following best describes the purpose of a continuing resolution?

  1. To rescind previously appropriated funds
  2. To increase the public debt limit
  3. To permanently authorize a new entitlement program
  4. To provide temporary funding for agencies when regular appropriations are not yet enacted Correct answer.

Explanation

A continuing resolution provides interim budget authority at specified rates so agencies can operate after the fiscal year begins without regular appropriations. It typically lasts for a set period or until regular appropriations are enacted.

Question 9Budget Process and Formulation

An agency receives a one-year appropriation of $12 million for a program. By September 1, it has obligated $10 million. What happens to the remaining $2 million at the end of the fiscal year?

  1. It carries forward automatically for the same purpose
  2. It expires and is no longer available for new obligations Correct answer.
  3. It converts into no-year authority
  4. It must be returned to the agency's working capital fund

Explanation

One-year appropriations expire at the end of their period of availability, and unobligated balances generally may not be used for new obligations. The expired balance remains available only for recording, adjusting, and liquidating obligations properly incurred before expiration.

Question 10Budget Process and Formulation

A program's enacted appropriation is $50 million, but OMB apportions only $30 million for the first two quarters. What is the immediate effect on the agency?

  1. The agency may obligate only up to $30 million during the apportioned period Correct answer.
  2. The agency must return $20 million to the Treasury permanently
  3. The agency may obligate up to $50 million because the appropriation is already law
  4. The agency must seek a new appropriation from Congress

Explanation

An apportionment legally limits the amount of budget authority that may be obligated during the specified period, even though the full appropriation has been enacted. The remaining balance may be apportioned later subject to OMB action.

Question 11Budget Process and Formulation

An agency needs to move funds between two appropriation accounts to meet an unanticipated requirement. Which action is generally required?

  1. The agency may transfer funds with verbal approval from the program manager
  2. The agency may transfer funds if the amount is below 10 percent of the account
  3. The agency must obtain statutory authority for the transfer Correct answer.
  4. The agency may transfer funds freely within the same department

Explanation

The purpose statute and the anti-deficiency framework require that funds be used only for the purposes and accounts for which they were appropriated. Transfers between accounts therefore require specific statutory authority.

Question 12Budget Process and Formulation

Which action is an example of reprogramming rather than a transfer?

  1. Moving funds between two separate appropriation accounts
  2. Increasing the amount of an appropriation through a supplemental
  3. Shifting funds within a single appropriation account among programs or activities Correct answer.
  4. Extending the period of availability of an appropriation

Explanation

Reprogramming generally involves shifting funds within one appropriation account, often subject to notification or approval requirements. A transfer moves funds between separate appropriation accounts and requires statutory authority.

Question 13Budget Process and Formulation

Which statute prohibits agencies from obligating or expending funds in excess of or in advance of appropriations?

  1. The Congressional Budget and Impoundment Control Act
  2. The Government Performance and Results Act
  3. The Budget and Accounting Act
  4. The Antideficiency Act Correct answer.

Explanation

The Antideficiency Act bars obligations or expenditures exceeding available appropriations and prohibits obligating funds before they are appropriated. Violations can trigger reporting requirements and administrative discipline.

Question 14Budget Process and Formulation

A manager authorizes a purchase in June against funds that will only become available in the next fiscal year's appropriation. Which principle does this violate?

  1. The bona fide needs rule Correct answer.
  2. The apportionment rule
  3. The full funding principle
  4. The purpose statute

Explanation

The bona fide needs rule requires that an appropriation be used only for needs arising during its period of availability. Obligating current-year funds for a future-year need, or future funds for a current need, generally violates that rule.

Question 15Budget Process and Formulation

The President wishes to delay spending for a program without proposing a rescission. Under the Impoundment Control Act, what must occur?

  1. The President must report a proposed deferral to Congress, and it may take effect subject to statutory limits Correct answer.
  2. The President must request a continuing resolution
  3. The President may defer funds indefinitely without notifying Congress
  4. The President may cancel the funds by executive order

Explanation

The Impoundment Control Act requires the President to report proposed deferrals to Congress, and deferrals are subject to limits and congressional override. Permanent cancellation requires a rescission proposal that Congress enacts.

Question 16Budget Process and Formulation

Which document does an agency typically prepare during the formulation phase to justify its funding request to OMB?

  1. The budget justification narrative, often with supporting exhibits Correct answer.
  2. The Treasury warrant
  3. The apportionment request
  4. The audit report

Explanation

During formulation, agencies build a justification narrative and supporting exhibits that explain resource requirements, performance, and program changes. OMB uses these materials in reviewing and finalizing the President's budget.

Question 17Budget Process and Formulation

Which sequence correctly reflects the federal budget cycle?

  1. Execution, formulation, congressional action, audit
  2. Formulation, execution, congressional action, audit
  3. Formulation, congressional action, execution, audit Correct answer.
  4. Congressional action, formulation, audit, execution

Explanation

Agencies formulate requests, Congress adopts a budget resolution and appropriations, agencies execute the enacted budget, and oversight bodies audit the results. The cycle then repeats for the following year.

Question 18Budget Process and Formulation

An agency's enacted budget includes $5 million for a program with a 24-month period of availability. In the first year it obligates $3 million. What is true of the remaining $2 million?

  1. It remains available for obligation during the second year Correct answer.
  2. It expires at the end of the first year
  3. It converts to annual authority in the second year
  4. It must be deobligated and returned to Treasury

Explanation

Multi-year authority remains available for obligation throughout its stated period, so the unobligated balance may be used in the second year. The funds expire only at the end of the defined availability period.

Question 19Budget Process and Formulation

Which action best illustrates the full funding principle for a discrete capital acquisition?

  1. Budgeting only the first year's incremental cost of the project
  2. Budgeting the total estimated cost of the complete end item in the year it is started Correct answer.
  3. Funding the project only after it is completed
  4. Spreading the cost across several appropriations without a cost estimate

Explanation

Full funding requires that the entire estimated cost of a discrete end item be budgeted in the year the procurement is initiated. This prevents committing to a project without the resources to complete it.

Question 20Budget Process and Formulation

A manager uses operations and maintenance funds to purchase equipment that should be capitalized. Which appropriations principle is most directly implicated?

  1. The purpose statute Correct answer.
  2. The full funding principle
  3. The apportionment rule
  4. The bona fide needs rule

Explanation

The purpose statute requires that funds be used only for the purposes for which they were appropriated. Using O&M funds for capital equipment that belongs in a procurement appropriation is a purpose violation.

Question 21Budget Process and Formulation

Which statement best characterizes the difference between authorization and appropriation?

  1. Authorization is performed by OMB and appropriation by agencies
  2. Authorization provides funds and appropriation establishes the program
  3. Both actions occur only in the same legislative act
  4. Authorization establishes a program and appropriation provides the funds to operate it Correct answer.

Explanation

Authorizing legislation creates or continues a program and may set spending ceilings, while appropriations acts provide the actual budget authority. Both are generally needed before funds can be obligated.

Question 22Budget Process and Formulation

An agency anticipates a need for additional funds because of a natural disaster that occurred after its budget was enacted. Which mechanism is most appropriate?

  1. A supplemental appropriation Correct answer.
  2. A deferral
  3. A continuing resolution
  4. A reprogramming action

Explanation

A supplemental appropriation provides additional budget authority for needs that were not foreseen when the regular appropriations were enacted. Disaster response is a common use of supplementals.

Question 23Budget Process and Formulation

Which of the following is a characteristic of discretionary spending in the federal budget?

  1. It is permanently authorized by substantive law
  2. It is exempt from OMB apportionment
  3. It is not subject to congressional oversight
  4. It is controlled by annual appropriations acts Correct answer.

Explanation

Discretionary spending is provided through annual appropriations acts and is therefore subject to the annual congressional decision process. Mandatory spending, by contrast, is controlled by permanent law.

Question 24Budget Process and Formulation

A budget analyst is told that a deferral proposed by the President has been reported to Congress. Which statement reflects the legal framework?

  1. The deferral takes effect immediately and permanently
  2. The deferral requires a new appropriation to be enacted
  3. The deferral may take effect but is subject to statutory limits and possible congressional action Correct answer.
  4. The deferral automatically becomes a rescission

Explanation

Under the Impoundment Control Act, proposed deferrals are reported to Congress and may take effect within statutory constraints, but Congress can act to disapprove them. A deferral does not permanently cancel the funds.

Question 25Budget Process and Formulation

An agency has expired one-year funds with $400,000 in unliquidated obligations. Which use of the expired balance is permissible?

  1. Obligating funds for a new contract for the same program
  2. Recording and liquidating obligations properly incurred before expiration Correct answer.
  3. Transferring the balance to a different appropriation account
  4. Using the balance to cover an overobligation in another account

Explanation

After a one-year appropriation expires, the remaining balance is available only for recording, adjusting, and liquidating obligations that were validly incurred during the period of availability. It may not be used for new obligations.

Question 26Budget Process and Formulation

In the federal budget formulation process, which office within the Executive Office of the President is responsible for reviewing agency budget submissions and issuing the annual budget guidance known as the A-11 circular?

  1. Congressional Budget Office
  2. Government Accountability Office
  3. Office of Management and Budget Correct answer.
  4. Department of the Treasury

Explanation

OMB prepares the President's budget, issues the A-11 preparation guidance, and reviews agency submissions before transmitting the budget to Congress. GAO is a legislative-branch audit body, CBO supports congressional budgeting, and Treasury manages federal finances but does not formulate the President's budget.

Question 27Budget Process and Formulation

Which budget formulation concept describes the baseline practice of assuming that existing programs continue at current levels with adjustments for inflation and workload unless a policy change is explicitly proposed?

  1. Current services baseline Correct answer.
  2. Zero-based budgeting
  3. Capital programming
  4. Program assessment rating

Explanation

The current services baseline projects what spending would be if current law and policies continued, with adjustments for inflation and workload, and is the reference against which policy changes are measured. Zero-based budgeting instead rebuilds each program from a zero base, program assessment rates performance, and capital programming addresses acquisitions.

Question 28Budget Process and Formulation

During budget formulation, an agency program office submits a funding request that exceeds the amount anticipated in the department's internal planning ceiling. What is the most appropriate action for the program office when preparing its formal submission?

  1. Request that OMB bypass the department and apportion the difference directly
  2. Submit the ceiling amount with no record of the unfunded requirement
  3. Obligate funds in the current year to establish a precedent for the higher level
  4. Submit the higher amount and document the justification, understanding that the department may adjust it during the internal review Correct answer.

Explanation

Formulation is a review process in which program offices may submit requirements with justification and departments reconcile them against ceilings before the request goes forward. Obligating funds cannot change a future budget level, omitting the requirement destroys the record needed for prioritization, and OMB does not apportion funds before appropriations exist.

Question 29Budget Process and Formulation

Which of the following best describes the role of the Future Years Defense Program (FYDP) in defense budget formulation?

  1. It is the congressional resolution that sets binding spending ceilings
  2. It records the programmed force and cost of approved programs for the current year and several outyears Correct answer.
  3. It is the legal instrument that appropriates funds to the Department of Defense
  4. It is the Treasury account used to liquidate defense obligations

Explanation

The FYDP is the Department of Defense's internal program and financial plan, capturing approved programs and their costs across the budget year and the outyears so that decisions are consistent over time. It does not appropriate funds, liquidate obligations, or set congressional ceilings.

Question 30Budget Process and Formulation

An agency's budget office is building its submission and must distinguish between mandatory and discretionary funding. Which item belongs to mandatory spending in the federal budget?

  1. Social Security benefit payments Correct answer.
  2. Purchase of office furniture from an annual appropriation
  3. Salaries of agency budget analysts
  4. Travel funded through an operations appropriation

Explanation

Mandatory spending is controlled by permanent law rather than by annual appropriations acts, and Social Security benefits are the classic example. Salaries, furniture, and travel are funded through annual discretionary appropriations.

Question 31Budget Process and Formulation

Which budget formulation document is prepared by the executive branch and submitted to Congress to present the President's recommended levels of spending, revenue, and deficits for the coming fiscal year?

  1. The Statement of Net Cost
  2. The Treasury Financial Report
  3. The Budget of the United States Government Correct answer.
  4. The Federal Register notice

Explanation

The President's budget, published as the Budget of the United States Government, presents recommended spending, revenue, and deficit levels along with supporting analyses. The Statement of Net Cost is a financial statement, the Treasury Financial Report is a government-wide financial report, and the Federal Register publishes rules and notices.

Question 32Budget Process and Formulation

An agency is preparing for a mid-session review after enactment and finds that its enacted appropriation differs from the President's request. Which action reflects the correct formulation and execution sequence?

  1. Wait for a supplemental appropriation before recording any enacted budget authority
  2. Appeal directly to the President to override the enacted amount
  3. Continue executing at the requested level because the request reflected the agency's true need
  4. Record the enacted amount as the basis for apportionment and revise program plans to fit the enacted level Correct answer.

Explanation

Once Congress enacts an appropriation, that amount becomes the legal basis for apportionment and execution, and program plans must be adjusted to fit it. Executing at the requested level would exceed available authority, waiting for a supplement is not required before recording enacted funds, and the President cannot override an enacted appropriation.

Question 33Budget Process and Formulation

Which of the following is a distinguishing feature of the budget resolution adopted by Congress under the Congressional Budget Act?

  1. It replaces the need for annual appropriations acts
  2. It provides legal authority for agencies to obligate funds
  3. It is subject to presidential veto and therefore requires signature
  4. It sets aggregate spending and revenue levels and committee allocations but is not signed by the President Correct answer.

Explanation

A budget resolution is a congressional planning document that sets aggregate totals and section 302 allocations to committees; it is a concurrent resolution and does not go to the President for signature. It does not provide obligation authority, is not subject to veto, and does not replace appropriations acts.

Question 34Budget Process and Formulation

A budget analyst must apply the rule that new spending legislation considered by Congress should be offset so it does not increase the deficit. Which concept is the analyst applying?

  1. Period of availability rule
  2. Full funding principle
  3. Antideficiency requirement
  4. Pay-as-you-go requirement Correct answer.

Explanation

Pay-as-you-go rules require that new mandatory spending or revenue reductions be offset so they are deficit neutral. Full funding concerns budgeting the entire cost of a capital acquisition, the Antideficiency Act bars obligations beyond or before appropriations, and period of availability governs when funds may be obligated.

Question 35Budget Process and Formulation

A program manager argues that because a requirement is urgent, the program should be funded by shifting money from another appropriation without congressional action. Which statement correctly describes the limits on this approach?

  1. Both transfers and reprogramming are prohibited during the fiscal year
  2. Reprogramming always requires a new appropriations act, while transfers need only agency approval
  3. Transfers between appropriations generally require specific statutory authority, while reprogramming moves funds within an account under established procedures Correct answer.
  4. Managers may transfer funds freely between accounts as long as total spending does not increase

Explanation

Transfers of budget authority between appropriations accounts generally require specific statutory authority, whereas reprogramming shifts funds within an account and follows notification procedures. Managers cannot move funds freely between accounts, reprogramming does not require a new appropriations act, and both actions are permitted within their respective rules.

Question 36Budget Process and Formulation

Which of the following illustrates a supplemental appropriation rather than an amendment to the President's budget request?

  1. The agency revises its request upward before the budget is transmitted
  2. OMB changes the apportionment schedule for the second quarter
  3. The department shifts funds within an account to cover a shortfall
  4. Congress enacts additional budget authority mid-year to fund disaster response after a hurricane Correct answer.

Explanation

A supplemental appropriation is enacted after the regular appropriations cycle to provide additional budget authority for unforeseen needs such as disaster response. Revising a request before transmittal is a budget amendment, changing an apportionment is an execution action, and shifting funds within an account is reprogramming.

Question 37Budget Process and Formulation

An agency is formulating its budget for a multiyear capital acquisition and must decide whether to request the full estimated cost in the first year or spread it across years. Which principle guides the decision to request the full cost of the acquisition in the year the project begins?

  1. Pay-as-you-go rule
  2. Severability principle
  3. Full funding principle Correct answer.
  4. Current services baseline

Explanation

The full funding principle requires that the entire estimated cost of a discrete capital acquisition be budgeted in the year the project starts, so that the government does not commit to a project without a plan to complete it. Severability concerns dividing a project into useful segments, the current services baseline projects ongoing spending, and pay-as-you-go concerns deficit-neutral offsets.

Question 38Budget Process and Formulation

During formulation, an agency prepares an exhibit that must explain how its request supports strategic goals and performance targets. Which framework most directly ties budget requests to measurable results in this way?

  1. Line-item budgeting
  2. Performance-based budgeting Correct answer.
  3. Incremental budgeting
  4. Zero-based budgeting

Explanation

Performance-based budgeting links requested resources to measurable outputs and outcomes, so the request is justified by expected results against strategic goals. Line-item and incremental approaches focus on object classes and prior-year adjustments, and zero-based budgeting rebuilds from a zero base without necessarily tying to performance targets.

Question 39Budget Process and Formulation

A budget analyst is reviewing an agency's request and notices that the outyear estimates assume new personnel will be hired but no corresponding increase appears in the personnel cost line. Which analytical step best addresses this inconsistency?

  1. Reconcile the program assumptions with the object class estimates so that personnel costs reflect the planned hiring Correct answer.
  2. Move the personnel cost into a different appropriation account
  3. Delete the hiring assumption from the narrative without adjusting costs
  4. Approve the request because outyear estimates are not binding

Explanation

A sound formulation review tests internal consistency between program assumptions and the object class estimates that fund them, so planned hiring must be reflected in personnel cost lines. Outyear estimates still require defensible logic, deleting the narrative while keeping the costs would worsen the inconsistency, and moving costs between accounts raises legal authority issues.

Question 40Budget Process and Formulation

Which of the following best describes the purpose of the OMB passback in the budget formulation process?

  1. It communicates OMB's tentative decisions on an agency's request so the agency can respond before the President's budget is finalized Correct answer.
  2. It formally apportions funds to the agency by quarter
  3. It provides the agency with enacted budget authority for the coming year
  4. It reports the agency's actual obligations to Treasury

Explanation

The passback conveys OMB's tentative decisions and funding levels to the agency, which then has an opportunity to appeal before the President's budget is finalized. It does not provide enacted authority, apportion funds, or report obligations.

Question 41Budget Execution and Funds Control

An appropriation is available for obligation only for the period specified by Congress. What is the term for the time limit during which new obligations may be incurred?

  1. Budget execution cycle
  2. Period of availability Correct answer.
  3. Funds control interval
  4. Obligation window closure date

Explanation

The period of availability is the statutory window during which an appropriation may be obligated for its intended purpose. Once it expires, no new obligations may be charged to that appropriation, although the account may remain open to liquidate prior obligations.

Question 42Budget Execution and Funds Control

A component obligates funds late in the fiscal year for goods it will not receive until the following year. Which funds-control principle is most directly implicated?

  1. The full funding policy
  2. The bona fide needs rule Correct answer.
  3. The purpose statute
  4. The Antideficiency Act

Explanation

The bona fide needs rule requires that an appropriation be used only for needs arising during its period of availability. Obligating current-year funds for a need that does not arise until a later year can create a violation unless an exception such as a legitimate severable services or lead-time exception applies.

Question 43Budget Execution and Funds Control

Which document formally records an obligation against an appropriation and is used to track commitments and expenditures in a funds-control system?

  1. Purchase request
  2. Administrative reservation
  3. Apportionment warrant
  4. Obligation document Correct answer.

Explanation

An obligation document, such as a contract, purchase order, or travel order, legally binds the government and is recorded against the appropriation. Funds-control systems use these documents to track obligations and ensure they do not exceed available authority.

Question 44Budget Execution and Funds Control

An agency receives an apportionment from OMB that limits obligations to a specific amount for a quarter. What is the primary purpose of apportionment?

  1. To reconcile accounting records with Treasury balances
  2. To prevent the need for supplemental appropriations
  3. To distribute budgetary resources over time and prevent deficiencies Correct answer.
  4. To authorize new budget authority for the agency

Explanation

Apportionment is OMB's distribution of budgetary resources to agencies, generally by time period or activity, to achieve effective and orderly execution and to prevent the need for deficiency appropriations. It does not create new budget authority.

Question 45Budget Execution and Funds Control

A program manager wants to shift funds between two object classes within the same appropriation. Which action must occur before the shift can be executed?

  1. Completion of a full audit by the inspector general
  2. Issuance of a new apportionment by OMB
  3. Submission of a supplemental appropriation request
  4. Congressional notification and approval of a reprogramming action Correct answer.

Explanation

Reprogramming moves funds within an appropriation and generally requires congressional notification under applicable committee guidance, with approval where thresholds are exceeded. It is distinct from a transfer, which moves funds between appropriations and requires specific statutory authority.

Question 46Budget Execution and Funds Control

Transfer of funds between two appropriations is generally prohibited unless which condition is met?

  1. The transfer is approved by the agency's budget officer
  2. The transfer is below the apportionment threshold
  3. The transfer is reported in the budget justification
  4. The transfer is authorized by statute Correct answer.

Explanation

Transfers move budgetary resources from one appropriation to another and require specific statutory authority, often subject to dollar limits and notification requirements. Absent such authority, a transfer violates the purpose statute.

Question 47Budget Execution and Funds Control

Which of the following best describes the purpose of an administrative subdivision of funds within an agency?

  1. To record obligations in the general ledger
  2. To create legal obligational authority for the agency
  3. To distribute funds to operating levels for management control Correct answer.
  4. To satisfy OMB apportionment requirements

Explanation

Administrative subdivision allocates funds to subordinate organizational levels or programs so managers can control and monitor execution. It is an internal management control and does not create or extend legal authority to obligate.

Question 48Budget Execution and Funds Control

An agency obligates funds in excess of the amount apportioned by OMB but within the total appropriation. Which violation has most likely occurred?

  1. Antideficiency Act violation Correct answer.
  2. Purpose violation
  3. Bona fide needs violation
  4. Miscellaneous receipts violation

Explanation

Obligating more than the amount apportioned is an Antideficiency Act violation because the apportionment is a statutory limitation on obligations. Even if total appropriated funds remain, exceeding the apportionment is prohibited.

Question 49Budget Execution and Funds Control

Under the Antideficiency Act, which official is responsible for reporting a violation to the agency head and, through the agency head, to Congress and the President?

  1. The Treasury disbursing officer
  2. The official who discovers or is responsible for the violation Correct answer.
  3. The Comptroller General
  4. The agency's chief financial officer

Explanation

The Antideficiency Act requires the official responsible for or who discovers a violation to report it promptly to the agency head, who then reports to the President and Congress. The report must include the facts and the corrective action taken.

Question 50Budget Execution and Funds Control

Which action is an example of a commitment rather than an obligation?

  1. Placing an administrative reservation of funds for a planned purchase Correct answer.
  2. Issuing a travel order for a scheduled trip
  3. Receiving an invoice for services already performed
  4. Signing a contract for office supplies

Explanation

A commitment is an administrative reservation of funds in anticipation of a future obligation, such as a planned purchase. It does not legally bind the government, unlike a contract or travel order, which create obligations.