CDFM Module 1 key terms

Federal law that bars agencies from obligating or spending money before appropriations are available, exceeding an appropriation, or accepting voluntary services, and requires reporting and discipline when violations occur.

Rule that appropriated funds may be used only for the purposes Congress intended; expenses must be necessary and incident to the authorized purpose, otherwise a specific appropriation is required.

Interpretive principle allowing an expenditure under a general appropriation when it is essential to accomplish the appropriation's purpose, is not prohibited by law, and is not funded elsewhere.

Statute requiring money a federal agency receives from sources other than appropriations, such as fees or sales proceeds, to be deposited in the Treasury unless another law authorizes its retention or credit.

Requirement that an appropriation be used only for needs arising in the period of availability; buying goods or services for future years with current funds is generally prohibited, with limited exceptions.

OMB's distribution of appropriated funds by time period, activity, or project, controlling the rate at which an agency may incur obligations and preventing the need for supplemental funding.

An agency's internal subdivision of apportioned funds to a subordinate organization or program, authorizing that unit to incur obligations within the amounts and purposes specified.

A definite commitment that creates a legal liability for the government to pay for goods or services ordered, contracts awarded, or other transactions executed during a period of fund availability.

The actual disbursement of cash to liquidate an obligation, or the recording of costs against an appropriation; distinct from the earlier act of obligating funds.

An administrative reservation of funds, made before an obligation, that anticipates a future financial requirement and prevents the same balance from being committed twice.

The time window, defined by law, during which an appropriation may be obligated; it may be one year, multiple years, or indefinite, and it governs when obligations are valid.

The specific appropriation account used to fund a requirement; choosing the wrong account, such as using procurement funds for services, creates a funding violation.

Military personnel appropriation that funds pay, allowances, and related costs of active and reserve service members; it is a major defense budget account distinct from operation and maintenance funds.

Operation and Maintenance funds that pay for day-to-day operating costs such as fuel, training, supplies, maintenance, and many services, typically obligated within a single fiscal year.

Funds used to buy major end items, spares, and related equipment; these appropriations usually remain available for multiple years to cover production and delivery.

The Planning, Programming, Budgeting, and Execution process through which the Department of Defense links strategy, force planning, program funding, and budget execution across a multiyear cycle.

A component's proposal, submitted during the programming phase of PPBE, that states proposed force structure and resource requirements for the coming program years within fiscal guidance.

The budgeting-phase document in which a component prices its approved program for the budget year and submits it for review and inclusion in the President's budget request.

The multiyear financial plan, usually covering five or more years, that reflects approved force structure and resource decisions and accompanies the defense budget request.

The annual budget request the executive branch submits to Congress, presenting proposed spending by agency and account and serving as the starting point for congressional appropriations action.

Legislation that funds agencies temporarily at specified rates when regular appropriations are not enacted before the fiscal year begins, preventing a lapse in operations.

The federal accounting period that begins October 1 and ends September 30, used for budgeting, obligating, and reporting on appropriated funds.

The validated number of military and civilian personnel, by skill and grade, needed to accomplish an organization's assigned missions and workload.

The maximum number of personnel, set by law or policy, that a military component may have in a given category during a fiscal year.

The actual count of personnel on board at the end of a fiscal year, which must not exceed authorized strength and drives military personnel budget requirements.

A measure converting part-time or varying work schedules into the number of full-time positions they represent, used to compare and budget civilian workforce levels.

Non-military employees of a defense organization whose pay, benefits, and related costs are budgeted separately from military personnel and are managed through position structures.

Systematic examination of cost drivers, estimates, and alternatives to determine the resources required for a program and to support informed funding and management decisions.

The total cost of acquiring, operating, maintaining, and disposing of a system over its entire useful life, used to compare alternatives and inform acquisition decisions.

A documented prediction of future costs, built from data, assumptions, and methods, with stated confidence levels and sensitivity to key variables.

Comparison of alternatives in terms of costs and benefits to identify the most efficient way to meet a requirement, often using discounted cash flow and net present value.

The phase of budget management in which funds are apportioned, allotted, obligated, and spent, with performance monitored and adjustments made to stay within available amounts.

The pace at which an organization incurs obligations against available funds, tracked to detect under- or over-execution and to support reprogramming decisions.

Shifting funds within an appropriation or between programs, subject to legal thresholds and congressional notification, to meet changed requirements during execution.

An organized effort to develop, produce, and field a system or service, managed through established milestones, funding lines, and reporting requirements.

A formal approval point in the acquisition process where a decision authority reviews progress and authorizes a program to proceed to the next phase.

Use of defined metrics and targets to assess whether programs deliver intended outputs and outcomes, supporting resource decisions and accountability.

Analytic products and processes that give leaders timely, defensible information on costs, risks, and alternatives so they can choose among competing courses of action.