CDFM Module 2 study guide
CDFM Module 2 · Work through your exam, one topic at a time.
CDFM Module 2 is the budget-focused module of the Certified Defense Financial Manager program, a professional credential for people who plan, justify, execute, and account for U.S. Department of Defense funds. The CDFM Module 2 study guide has 6 sections and about 2,909 words.
01Budget Process and Formulation
Budget Process and Formulation tests whether you can place a decision in the right phase of the Planning, Programming, Budgeting, and Execution (PPBE) cycle, trace a requirement from strategy to enacted funds, and keep the documents and decision forums straight. Expect items on the Future Years Defense Program (FYDP), the Budget Estimate Submission (BES), the congressional phase, the difference between authorization and appropriation, and continuing resolution limits.
494 words, about 2 min02Budget Execution
Budget Execution covers the controls standing between enacted budget authority and a valid obligation: apportionment, allotment, the commitment-to-outlay chain, reprogramming, and the consequences of exceeding those controls. OMB distributes budget authority by time period (usually quarters), program, activity, or object class using SF 132.
459 words, about 2 min03Funds Management and Accounting
Funds Management and Accounting tests the life cycle of appropriated funds, the dual accounting model that records them, and the rules for reimbursements and payments. Annual appropriations (O&M, MILPERS) are available for one fiscal year.
518 words, about 3 min04Appropriations Law and Fiscal Law
Appropriations Law and Fiscal Law tests the three questions every obligating action must answer, purpose, time, and amount, and the statutes that enforce them. Article I, Section 9 of the Constitution bars drawing money from the Treasury except under an appropriation.
519 words, about 3 min05Financial Management Systems and Reporting
Financial Management Systems and Reporting tests how transactions move from feeder systems into auditable statements and budget reports, and the standards those systems must meet. DoD operates several accounting systems of record, including GFEBS (Army), DEAMS (Air Force), Navy ERP, and the Defense Agencies Initiative, supported by entitlement and payment systems such as WAWF/PIEE and MOCAS, and reporting layers such as Advana.
448 words, about 2 min06Audit Readiness and Internal Controls
Audit Readiness and Internal Controls tests how managers assess, test, and remediate controls so financial statements withstand audit, and how deficiencies are classified and reported. OMB Circular A-123 requires annual management assessment and reporting on internal control over financial reporting; Appendix A covers that assessment, the other appendices address improper payments and FISMA compliance.
471 words, about 2 min