CDFM Module 2 cheat sheet

The federal budget cycle runs roughly three years: formulation by OMB and agencies, congressional action, then execution and audit.

The Budget and Accounting Act of 1921 created the Bureau of the Budget (now OMB) and the GAO, and required the President's annual budget submission.

The Congressional Budget Act of 1974 created the House and Senate Budget Committees, the CBO, and the concurrent budget resolution.

A budget resolution sets 302(a) total spending limits; committees then issue 302(b) suballocations to appropriations subcommittees.

The President's budget is due to Congress on the first Monday in February under 31 U.S.C. 1105, though delays are common.

Mandatory spending is controlled by authorizing law; discretionary spending is controlled by annual appropriations acts.

Reconciliation instructions in a budget resolution allow committees to change mandatory spending or revenue with expedited Senate consideration.

Continuing resolutions fund agencies at prior-year or specified rates when regular appropriations are not enacted by October 1.

OMB Circular A-11 governs budget formulation, justification, and submission formats for executive branch agencies.

Apportionment (OMB SF 132) distributes appropriated amounts by time period or activity; an agency may not obligate beyond the apportioned amount.

Agencies subdivide apportionments into allotments, which are internal management controls binding on the receiving official.

The Anti-Deficiency Act (31 U.S.C. 1341) prohibits obligating or expending in advance of or in excess of an appropriation.

Purpose, time, and amount are the three tests every obligation must satisfy; failure on any one is an ADA violation.

ADA violations require immediate reporting to the agency head and OMB, and to Congress through the President.

De-obligation of prior-year funds returns them to the appropriation for the same purpose; expired funds may not take on new obligations.

A continuing resolution's rate and duration determine what new obligations are permissible until regular appropriations are enacted.

Reprogramming moves funds within an appropriation; transfers move funds between appropriations and generally require statutory authority.

The U.S. Standard General Ledger (USSGL) provides a uniform chart of accounts for all federal agencies.

Proprietary accounts show assets, liabilities, and net position; budgetary accounts track apportionments, allotments, obligations, and expenditures.

Fund types include general, special, revolving, trust, and deposit funds; each has distinct receipt and use rules.

Obligations are recorded when a binding agreement is made; outlays occur when cash leaves the Treasury.

The Treasury Financial Manual and OMB Circular A-136 govern federal financial reporting and statement formats.

Accrual accounting recognizes expenses when incurred; budgetary accounting is largely obligation-based.

A bona fide need must exist when an obligation is incurred; funds are obligated for the period in which the need arises.

Gift funds, trust funds, and working capital funds each follow separate statutory rules for receipts and availability.

The three-part purpose statute test (31 U.S.C. 1301) requires expenditures to be authorized by law and for the purpose of the appropriation.

The Necessary Expense Doctrine allows costs that are logically related to the appropriation's purpose, not prohibited by law, and not otherwise funded.

The bona fide needs rule (31 U.S.C. 1502) requires obligations to meet a need arising in the period of availability.

The time statute: funds are available only for the period specified in the appropriation act.

The amount statute: an agency may not obligate more than the amount appropriated for a given purpose.

Augmentation rules prohibit agencies from supplementing appropriations with outside receipts without statutory authority.

The Antideficiency Act and the Miscellaneous Receipts Act (31 U.S.C. 3302) are core fiscal-law constraints.

GAO decisions and the GAO Redbook (Principles of Federal Appropriations Law) interpret fiscal law questions.

The core federal financial system includes the USSGL, the Financial Management Service, and agency accounting systems.

OMB Circular A-123 governs internal control and financial reporting requirements for executive agencies.

The DATA Act (2014) requires standardized reporting of federal spending to a public website, USAspending.gov.

The CFO Act of 1990 established agency CFOs and required audited financial statements.

Governmentwide Treasury Account Symbols (TAS) identify each appropriation and fund account.

The Federal Financial Management Improvement Act (FFMIA) requires systems to comply with USSGL, federal accounting standards, and federal financial management system requirements.

Financial statements include the balance sheet, statement of net cost, statement of changes in net position, and statement of budgetary resources.

A performance and accountability report (PAR) or agency financial report (AFR) is submitted annually under OMB Circular A-136.

The Green Book (GAO Standards for Internal Control in the Federal Government) sets the five components of internal control.

The five components are control environment, risk assessment, control activities, information and communication, and monitoring.

OMB Circular A-123 Appendix A requires management to assess and report on internal control over financial reporting.

A material weakness is a deficiency, or combination, that results in a reasonable possibility of material misstatement.

A significant deficiency is less severe than a material weakness but important enough to merit attention.

The audit opinion types are unmodified, qualified, adverse, and disclaimer; an adverse opinion means statements are materially misstated.

The Federal Managers' Financial Integrity Act (FMFIA) requires annual assurance statements on internal control.

The GAO Yellow Book (Government Auditing Standards) sets standards for federal audits, including independence and CPE requirements.

Corrective action plans track remediation of audit findings, with milestones, owners, and target dates.

The President's budget is due the first Monday in February; OMB Circular A-11 prescribes its format and content.

A budget resolution sets 302(a) totals and 302(b) suballocations to appropriations subcommittees.

Discretionary spending is set by annual appropriations; mandatory spending is set by authorizing law.

Reconciliation instructions allow expedited changes to mandatory spending and revenue.

A continuing resolution funds agencies when regular appropriations are not enacted by October 1.

The Congressional Budget Act of 1974 created the budget committees, CBO, and the budget resolution process.

The Budget and Accounting Act of 1921 created the Bureau of the Budget and the GAO.

Apportionment (SF 132) distributes appropriated amounts by time period or activity; obligations may not exceed it.

Allotments subdivide apportionments internally and bind the receiving official.

The Anti-Deficiency Act prohibits obligating in advance of or in excess of an appropriation.

Purpose, time, and amount are the three tests every obligation must satisfy.

ADA violations require reporting to the agency head, OMB, and Congress through the President.

Reprogramming moves funds within an appropriation; transfers move funds between appropriations and need statutory authority.

Expired funds may not take on new obligations but may liquidate prior obligations.

The USSGL provides a uniform chart of accounts for all federal agencies.

Proprietary accounts track assets, liabilities, and net position; budgetary accounts track apportionments, allotments, obligations, and expenditures.

Fund types include general, special, revolving, trust, and deposit funds.

Obligations are recorded when a binding agreement is made; outlays occur when cash leaves the Treasury.

A bona fide need must exist when an obligation is incurred.

Accrual accounting recognizes expenses when incurred; budgetary accounting is obligation-based.

OMB Circular A-136 and the Treasury Financial Manual govern federal financial reporting.

The purpose statute (31 U.S.C. 1301) requires expenditures to be authorized by law and for the appropriation's purpose.

The Necessary Expense Doctrine allows costs logically related to the purpose, not prohibited by law, and not otherwise funded.

The bona fide needs rule requires obligations to meet a need arising in the period of availability.

The time statute limits availability to the period specified in the appropriation act.

The amount statute prohibits obligating more than the amount appropriated for a purpose.

Augmentation rules prohibit supplementing appropriations with outside receipts without statutory authority.

The GAO Redbook and GAO decisions interpret federal fiscal law.

The CFO Act of 1990 established agency CFOs and required audited financial statements.

OMB Circular A-123 governs internal control and financial reporting requirements.

The DATA Act requires standardized spending reporting to USAspending.gov.

FFMIA requires systems to comply with USSGL, federal accounting standards, and system requirements.

Treasury Account Symbols identify each appropriation and fund account.

Financial statements include the balance sheet, statement of net cost, statement of changes in net position, and statement of budgetary resources.

OMB Circular A-136 governs annual financial report formats.

The Green Book sets five internal control components: control environment, risk assessment, control activities, information and communication, and monitoring.

OMB Circular A-123 Appendix A requires management assessment of internal control over financial reporting.

A material weakness creates a reasonable possibility of material misstatement.

A significant deficiency is less severe than a material weakness but merits attention.

Audit opinions are unmodified, qualified, adverse, or disclaimer.

FMFIA requires annual assurance statements on internal control.

The GAO Yellow Book sets standards for federal audits, including independence and CPE requirements.

The federal budget cycle has three phases: formulation, congressional action, and execution/audit.

The Budget and Accounting Act of 1921 created the Bureau of the Budget (now OMB) and the GAO.

The Congressional Budget Act of 1974 created the budget committees, CBO, and the concurrent budget resolution.

A budget resolution sets 302(a) totals and 302(b) suballocations to appropriations subcommittees.

The President's budget is due the first Monday in February under 31 U.S.C. 1105.

Mandatory spending is controlled by authorizing law; discretionary spending by annual appropriations.

Reconciliation instructions permit expedited changes to mandatory spending and revenue.

A continuing resolution funds agencies when regular appropriations are not enacted by October 1.

OMB Circular A-11 governs budget formulation and justification formats.

Apportionment (OMB SF 132) distributes appropriated amounts by time period or activity.

Agencies subdivide apportionments into allotments, which bind the receiving official.

The Anti-Deficiency Act (31 U.S.C. 1341) prohibits obligating in advance of or in excess of an appropriation.

Purpose, time, and amount are the three tests every obligation must satisfy.

ADA violations require immediate reporting to the agency head and OMB, and to Congress through the President.

De-obligated prior-year funds return to the appropriation for the same purpose.

Reprogramming moves funds within an appropriation; transfers move funds between appropriations and need statutory authority.

The USSGL provides a uniform chart of accounts for all federal agencies.

Proprietary accounts track assets, liabilities, and net position; budgetary accounts track apportionments, allotments, obligations, and expenditures.

Fund types include general, special, revolving, trust, and deposit funds, each with distinct receipt and use rules.

Obligations are recorded when a binding agreement is made; outlays occur when cash leaves the Treasury.

The Treasury Financial Manual and OMB Circular A-136 govern federal financial reporting.

Accrual accounting recognizes expenses when incurred; budgetary accounting is obligation-based.

A bona fide need must exist when an obligation is incurred.

The purpose statute (31 U.S.C. 1301) requires expenditures to be authorized by law and for the appropriation's purpose.

The Necessary Expense Doctrine allows costs logically related to the purpose, not prohibited by law, and not otherwise funded.

The bona fide needs rule requires obligations to meet a need arising in the period of availability.

The time statute limits availability to the period specified in the appropriation act.

The amount statute prohibits obligating more than the amount appropriated for a purpose.

Augmentation rules prohibit supplementing appropriations with outside receipts without statutory authority.

The Antideficiency Act and the Miscellaneous Receipts Act (31 U.S.C. 3302) are core fiscal-law constraints.

GAO decisions and the GAO Redbook interpret federal appropriations law.

The CFO Act of 1990 established agency CFOs and required audited financial statements.

OMB Circular A-123 governs internal control and financial reporting requirements.

The DATA Act (2014) requires standardized spending reporting to USAspending.gov.

FFMIA requires systems to comply with USSGL, federal accounting standards, and system requirements.

Treasury Account Symbols identify each appropriation and fund account.

Financial statements include the balance sheet, statement of net cost, statement of changes in net position, and statement of budgetary resources.

A PAR or AFR is submitted annually under OMB Circular A-136.

The Green Book sets five internal control components: control environment, risk assessment, control activities, information and communication, and monitoring.

OMB Circular A-123 Appendix A requires management assessment of internal control over financial reporting.

A material weakness creates a reasonable possibility of material misstatement.

A significant deficiency is less severe than a material weakness but merits attention.

Audit opinions are unmodified, qualified, adverse, or disclaimer.

FMFIA requires annual assurance statements on internal control.

The GAO Yellow Book sets standards for federal audits, including independence and CPE requirements.

Corrective action plans track remediation with milestones, owners, and target dates.