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CDFM_MODULE_3_EXAM_SCRIPT_2026_TEST_PAPER_QUESTIONS_AND_SOLUTIONS

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CDFM_MODULE_3_EXAM_SCRIPT_2026_TEST_PAPER_QUESTIONS_AND_SOLUTIONS

Institution
CDFM MODULE 3
Course
CDFM MODULE 3

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CDFM MODULE 3 EXAM SCRIPT 2026 TEST
PAPER QUESTIONS AND SOLUTIONS GRADED
A+

◉ 1921 Budget and Accounting Act. Answer: -Established GAO 3.1.8
-Requires President to submit annual budget to Congress for all 3
branches of Government
-Created a budget office for the President (OMB) 3.1.9


◉ Congressional Budget Act of 1974. Answer: Established House
and Senate budget committees and the Congressional Budget Office
(CBO) 3.1.10


◉ 31 USC 13 and 15. Answer: Contains requirements for use,
control, and accountability of funds 3.1.10


◉ Fiduciary Certifier. Answer: responsible for using appropriated
funds properly 3.1.12


◉ Pecuniary Certifier. Answer: responsible for accuracy of
disbursement of funds 3.1.12


◉ 31 USC 1301. Answer: Purpose of obligation 3.1.13

,◉ 31 USC 1502. Answer: Time of obligation 3.1.13


◉ 31 USC 1341, 1342, 1517. Answer: Cornerstone of Anti Deficiency
Act 3.1.29 Amount of obligation 3.1.13


◉ Annual Authority. Answer: Budgetary resources available for
incurring new obligations for one fiscal year or less 3.1.13


◉ Multi-year authority. Answer: Budgetary resources available for
new obligations in excess of one fiscal year 3.1.13


◉ No year authority. Answer: Budgetary resources available for new
obligations for an indefinite period , until the purposes for which
they were provided are carried out. 3.1.13 Account can be closed if
purpose has been fulfilled AND no disbursements have been made
for two consecutive fiscal years. It goes from current to cancelled; it
never expires. 3.1.25


◉ Amount. Answer: definite authority versus indefinite authority
-definite specifies amount of authority available
-indefinite does not specify - amount is based on other factors
3.1.132

,◉ Purpose. Answer: If you have no money for the purpose, you are
violating the anti deficiency act. We can only use the appropriations
for the purpose authorized by the Congress. 3.1.14


Necessary Expense Doctrine - 3 tests
-Logical relationship to the appropriation sought to be changed
(trash bags for trash cans)
-Not prohibited by law
-Not funded elsewhere 3.1.17


◉ Personal use of Appropriations. Answer: Appropriated funds
cannot be used to purchase items that are deemed personal or to
promote an individual, e.g., coins with the picture or name of an
individual. 3.1.16


◉ Command Coins. Answer: Authorized for distinguished citizens,
military officers, and government officials from foreign countries,
prominent federal non-DoD, state and local officials 3.1.18


◉ Services - Severable versus Non-Severable. Answer: Severable
services are for services that can be completed within one fiscal year
(i.e. maintenance and trash collection)
Non-Severable services cannot be separated into increments that
will provide something useful before the end of the fiscal year, i.e.

, overhauling a ship. The government will obligate the entire amount
at the outset. 3.1.20


◉ Termination for Default. Answer: Expired funds may be used for a
new contract if bona fide need still exists, same or lesser scope,
replacement contract awarded in a timely manner. 3.1.223.1.22


◉ Termination for Convenience. Answer: Government may not use
expired funds previously obligated; it must retain sufficient funds to
meet settlement costs estimated to be owed to contractor. 3.1.22


◉ Appropriations come in 3 types. Answer: Single Year - Minor
construction up to $1m and purchase of investment items <$250k.
O&M, MILPERS
Multi-Year - Available for new obligations for more than one year.
MILCON (available for 5 years), RTD&E (available for 2 years)
No-Year - Revolving, no time limit involved 3.1.24


◉ Judgement fund. Answer: permanent, indefinite appropriation
3.1.30


◉ Forms of Budget Authority (you can obligate against these things).
Answer: Appropriation, contract authority, borrowing authority,
monetary credit, offsetting receipts (park admission), loan & loan

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Course
CDFM MODULE 3

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