FISCAL LAW TRAINING STUDY SHEET 2026
UPDATED QUESTIONS AND ANSWERS
◉The bona fide need occurs in the year the order is placed, not
when the goods are services are ______?. Answer: delivered.
◉The Bona Fide Needs Rule does not prevent maintaining a
legitimate inventory at reasonable and historical levels, the "need"
being to maintain the inventory level so as to avoid disruption of
operations. ...usually up to 90 days.. Answer: ...
◉The Bona Fide Needs Rule permits obligation in one fiscal year and
delivery in a subsequent fiscal year if production lead-time of the
material requires obligation in one fiscal year in order for the
material to be available for installation in a later fiscal year. The time
between ordering and delivery should not be excessive AND the
procurement must not be for standard commercial items readily
available when needed in the next fiscal year. Exception is shelf
stock...you can store up to 90 days if you have the storage space..
Answer: ...
◉Ratification is when an unauthorized person makes an authorized
purchased. Invalid contract in FY09, the contract is ratified in FY10m
, which funds do you used. You can use FY09 funds. 05 Sep 13 Joe
bought items, the items was ratified in Oct1 2014, which funds to
use? 2013. Answer: ...
◉What are the obligation for contract termination, if the contractor
default?. Answer: Where it becomes necessary to terminate a
contract because of the contractor's default, the funds obligated
under the original contract are available, beyond their original
period of obligational availability, for the purpose of engaging
another contractor to complete the unfinished work. Implicit in the
rule is the premise that the original contract validly obligated then
current funds
In order for funds to remain available beyond expiration for a
replacement contract, three conditions must be met:
• A bona fide need for the work, supplies, or services must have
existed when the original contract was executed, and it must
continue to exist up to the award of the replacement contract.
The replacement contract must not exceed the scope of the original
contract. If it does, it is a new obligation and must be charged to
funds currently available for obligation at the time the replacement
contract is entered into
The replacement contract must be awarded within a reasonable
time after termination of the original contract.Excessive delay raises
UPDATED QUESTIONS AND ANSWERS
◉The bona fide need occurs in the year the order is placed, not
when the goods are services are ______?. Answer: delivered.
◉The Bona Fide Needs Rule does not prevent maintaining a
legitimate inventory at reasonable and historical levels, the "need"
being to maintain the inventory level so as to avoid disruption of
operations. ...usually up to 90 days.. Answer: ...
◉The Bona Fide Needs Rule permits obligation in one fiscal year and
delivery in a subsequent fiscal year if production lead-time of the
material requires obligation in one fiscal year in order for the
material to be available for installation in a later fiscal year. The time
between ordering and delivery should not be excessive AND the
procurement must not be for standard commercial items readily
available when needed in the next fiscal year. Exception is shelf
stock...you can store up to 90 days if you have the storage space..
Answer: ...
◉Ratification is when an unauthorized person makes an authorized
purchased. Invalid contract in FY09, the contract is ratified in FY10m
, which funds do you used. You can use FY09 funds. 05 Sep 13 Joe
bought items, the items was ratified in Oct1 2014, which funds to
use? 2013. Answer: ...
◉What are the obligation for contract termination, if the contractor
default?. Answer: Where it becomes necessary to terminate a
contract because of the contractor's default, the funds obligated
under the original contract are available, beyond their original
period of obligational availability, for the purpose of engaging
another contractor to complete the unfinished work. Implicit in the
rule is the premise that the original contract validly obligated then
current funds
In order for funds to remain available beyond expiration for a
replacement contract, three conditions must be met:
• A bona fide need for the work, supplies, or services must have
existed when the original contract was executed, and it must
continue to exist up to the award of the replacement contract.
The replacement contract must not exceed the scope of the original
contract. If it does, it is a new obligation and must be charged to
funds currently available for obligation at the time the replacement
contract is entered into
The replacement contract must be awarded within a reasonable
time after termination of the original contract.Excessive delay raises
