CDFM Module 2 key terms

A statutory authorization that permits an agency to incur obligations and make payments from the Treasury for specified purposes, typically within a defined period of availability.

Legislation that establishes or continues a federal program and may set a ceiling on the funds that can be appropriated for it, but does not itself provide spending authority.

The legal power granted by Congress to incur financial obligations that will result in outlays of Treasury funds; it may be provided in advance through appropriations or derived from other statutory authority.

A definite commitment that creates a legal liability of the government for the payment of funds for goods or services ordered or received, recorded when the commitment becomes binding.

An actual payment of cash or cash equivalent by the government to liquidate an obligation, such as a disbursement to a contractor or a payroll payment to an employee.

The time window during which an appropriation may be obligated for its intended purpose; funds not obligated by the expiration date generally lapse and cannot be used for new obligations.

The requirement that an appropriation be used only for needs arising during its period of availability, prohibiting the use of current-year funds for future-year requirements or prior-year needs.

The principle, codified at 31 U.S.C. section 1301, that appropriated funds may be used only for the purposes for which the appropriation was made, as reflected in the appropriation's title and legislative history.

Federal law that prohibits obligating or expending funds in excess of or in advance of an appropriation, and bars acceptance of voluntary services except in emergencies involving the safety of human life or protection of property.

The process of notifying the agency head and Congress when an Anti-Deficiency Act violation is discovered, including the circumstances, the amount, the responsible officials, and corrective actions taken.

An OMB distribution of budget authority by time period or activity that limits how much of an appropriation an agency may obligate during a specified interval, typically a quarter or a year.

An agency-level subdivision of apportioned funds that authorizes a subordinate organization or program to incur obligations within a specified amount and time frame.

An administrative reservation of anticipated funds, made before an obligation, that sets aside budget authority for a future purchase or requirement.

Temporary appropriations legislation that funds agencies at specified rates, often at prior-year levels, when regular appropriations have not been enacted before the start of the fiscal year.

The federal accounting period beginning October 1 and ending September 30 of the following calendar year, used for budgeting, obligating, and reporting on appropriated funds.

A funding gap that occurs when appropriations are not enacted before the fiscal year begins or when a continuing resolution expires, generally triggering a shutdown of non-excepted activities.

Appropriations whose period of availability for new obligations has ended but which remain available for a limited time to record, adjust, and liquidate obligations incurred while the funds were current.

The permanent withdrawal of an appropriation account balance that remains unobligated at the end of the period during which expired funds may be used to adjust or liquidate prior obligations.

The Military Standard Requisitioning and Issue Procedures system that standardizes the format and processing of supply requisitions and related financial data across the Department of Defense.

An order accepted from another organization or activity for goods or services, under which the performing activity incurs obligations and later bills the requesting activity for the cost.

An order placed by one federal agency with another for goods or services, authorized by the Economy Act, that must be paid in advance or reimbursed and may not be used to circumvent competition.

A revolving fund that finances ongoing business-type operations, such as depot maintenance or supply distribution, through customer charges rather than annual appropriations, with the goal of full cost recovery.

The cumulative difference between a revolving or working capital fund's revenues and its costs, which must be managed within statutory limits and reported as part of the fund's financial condition.

The process of accumulating, classifying, and allocating costs to products, services, or programs so that managers can measure efficiency and set reimbursement rates.

The total cost of producing a good or delivering a service, including direct costs plus allocated indirect and overhead costs, used to set prices in reimbursable and working capital activities.

The primary Treasury account that holds revenues not earmarked by law for a specific purpose and from which many appropriated expenditures are made.

An account designated by law to receive earmarked receipts and to be used only for specified purposes, such as Social Security or military retirement benefits.

A periodic financial report that compares obligations incurred against the amount allotted or apportioned, helping managers detect overobligation and monitor execution rates.

The Apportionment and Reapportionment Schedule, a Standard Form used by agencies to request OMB apportionment of budget authority and to report on its distribution.

The Report on Budget Execution and Budgetary Resources, a Standard Form that reports the status of budgetary resources, obligations, and outlays for a specific period.

The uniform chart of accounts and transaction definitions prescribed by Treasury that all federal agencies use to record financial events and support consistent governmentwide reporting.

The United States Standard General Ledger, a Treasury publication that defines account titles, numbers, and normal balances for recording federal transactions consistently across agencies.

An independent examination of an entity's financial statements and related disclosures to determine whether they present fairly, in all material respects, its financial position and results in accordance with applicable standards.

The policies, procedures, and organizational structure designed to provide reasonable assurance that operations are effective, reporting is reliable, and laws and regulations are followed.

A deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement will not be prevented or detected on a timely basis.

An internal control principle that separates authorization, custody, and recordkeeping responsibilities so that no single person can both commit and conceal an error or fraud.

The body of standards and practices requiring agencies to accumulate and report reliable and timely cost information for management decisions, performance measurement, and budgeting.

A required financial statement that reports how budgetary resources were made available and used, reconciling budget authority with obligations and outlays for the period.

Federal legislation that established chief financial officers in major agencies and required audited financial statements, strengthening financial management and internal control governmentwide.

Legislation requiring agencies to evaluate their internal control systems annually and report to the President and Congress on material weaknesses and corrective actions planned.