ACQ 101 Module 7 Financial Management Questions and Answers 100% Pass

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ACQ 101 Module 7 Financial Management Questions and Answers 100% Pass What is budget authority? ✔✔The authority to enter into obligations that will results in immediate or future outlays. Simi ... lar to a spending limit that is approved by Congress. What is a commitment? ✔✔An administrative reservation of funds, usually by the comptroller, in anticipation of a future obligation. What is an obligation? ✔✔The legal reserve of funds to make a future payment of money. What is an expenditure? ✔✔Is a charge against available funds. It results from a voucher, claim or other document approved by competent authority. What is an outlay? ✔✔Occurs when the vendor cashes the expenditure check and money flows from the treasury to the vendor of supplier. What is a life cycle cost? ✔✔The cost to the government of acquisition and sustainment of a system over its useful life. Life Cycle Cost LCC is divided into 5 major appropriations categories; what are they? ✔✔Operations & Maintenance O&M; Military Personnel; Research, Development, Test and Evaluation RDT&E; Procurement; Military Construction What are 4 cost estimating techniques? ✔✔Analogy, Parametric, Engineering, Actual Costs The engineering cost technique method would be used early in the life of the program during the TMRR Phase when you do not have in-depth information about the system you are designing. ✔✔False When is the analogy method used? ✔✔The analogy is used early in the life of the program during the TMRR Phase when you do not have in-depth information about the system you are designing. What does Military Construction (MILCON) appropriations used for? ✔✔Bases, schools, missile storage facilities, maintenance facilities, medical dental clinics, libraries, military family housing. What does Military Personnel (MILPERS) appropriations used for? ✔✔Pay and allowances of military personnel, PCS moves, training with PCS, subsistence, bonuses, retired pay accrual. What does Operation and Maintenance (O&M) appropriations used for? ✔✔Day to day operations, HQ operations, civilian salaries, travel, fuel, minor construction, training & education, base operations, recruiting. Which appropriation provides funds for programs that have been approved for production? ✔✔Procurement, all costs necessary to deliver a useful end item intended for operational use or inventory. What funding policy covers RDT&E? ✔✔Incremental funding & 2 year obligation period What funding policy covers Procurement? ✔✔Full funding & 3 year obligation period What funding policy covers O&M? ✔✔Annual funding & 1 year obligation period What funding policy covers MILPERS? ✔✔Annual funding & 1 year obligation period What funding policy covers MILCON? ✔✔Full funding; usable end items; 12 mo delivery period; budget for FY of contract award; 5 year obligation period What are the steps in the resource allocation process? ✔✔Planning, Programming, Budgeting, Execution The primary product of the Planning phase is the National Defense Strategy (NDS) which provides the priorities and objectives for the service program request? ✔✔False; the primary product of the planning phase is the defense planning guidance (DPG) which provides the priorities and objectives for the service program request. What does the Cost Analysis & Program Evaluation CAPE director do? ✔✔Manages programming activities and leads the programming phase a the DoD level The primary products of the Programming phase are the program objectives memorandum (POM) and the program decision memoranda (PDM)? ✔✔True Who is responsible for the budgeting phase? ✔✔The under secretary of defense (comptroller) Products of the budgeting phase are: ✔✔budget estimate submission BES; program budget decision PBD; major budget issue MBI; DoD portion of the president's budget What is the purpose of the execution phase? ✔✔Make assessments of current and previous resource allocations to determine if the planned performance goals were met. How are we doing? The budget authority is provided by what? ✔✔The appropriations bill establishes the budget authority. Bona Fide Need Rule ✔✔A fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in, or in some cases arising prior to but continuing to exist in, the fiscal year for which the appropriation was made. Anti-Deficiency Act ✔✔Prohibits from involving the government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law. Prohibits against over obligating or overspending an appropriation. Anti-deficiency Act Violations ✔✔exceeding limitations of funds authorized by congress in support of contract obligations. congress exercises its constitutional control over the public purse Misappropriation Act ✔✔Spending for purposes other than those approved by Congress for that type of money. After the budget authority has passed its obligation period, it goes into the expired account for a period of 5 years and cannot be used for new obligations. ✔✔True When does the execution phase start? ✔✔When appropriated funds are spent on defense programs. What best describes the purpose of reprogramming? ✔✔Using funds for purposes other than those originally intended by Congress Can below threshold reprogramming be used to change the appropriation category? ✔✔Not categories (O&M to RDT&E) but can change within programs Which agency apportions funds to the DoD comptroller on a periodic basis? ✔✔Office of Management & Budget DoD use to accomplish the PPBE process? ✔✔Identify the fiscal needs of the services and decide how to allocate resources Which enactment process activity must be passed by both houses of congress and signed by the President before any federal agency can incur obligations or make expenditures from the US Treasury? ✔✔appropriations bill Reprogramming thresholds vary by appropriations category? ✔✔True What is life cycle cost estimate LCCE? ✔✔the funding of a system throughout its entire life span Which type of budgeting review takes place during the execution process? ✔✔defending the program before different groups on an ongoing basis [Show More]

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