Financial Management and Budget Administration
Domain 3 tests budget execution and fiscal controls: how requirements become approved purchases, obligations, and payments without violating fund availability or approval authority.
Core controls
- Separate request, approval, receipt, and payment duties where staffing allows.
- Confirm a valid fund cite, approving official, and bona fide need before obligation.
- Do not split requirements to avoid approval thresholds.
- Reconcile commitments, obligations, and expenditures monthly.
Budget cycle
Know the difference between formulation, execution, and closeout. During execution, track commitments before they become obligations, and match receiving reports to invoices before payment.
Worked example: On 28 September a unit asks for office chairs "to use up remaining funds," but chairs are not needed until February. Reasoning: funds are available only for needs arising in the period of availability; a year-end use-it-or-lose-it buy is not a bona fide need. Either validate a current need and obligate before expiration, or budget in the new year. Also check whether someone already ordered, which would be an unauthorized commitment.
Traps that cost marks
- Committing funds without an authorized official.
- Obligating after the period of availability.
- Splitting purchases to stay under a threshold.
- Paying before receipt and acceptance.
- Treating remaining funds as a spending target.