CDFM Exam 1 (PDF) | 2026 Exam Questions |
Financial Management
Competency 1: Gov't Resource Management Environment
OMB Circular A-11 - ANSWER- Preparation & Submission of Budget Estimates
OMB Circular A-76 - ANSWER- Performance of Commercial Activities
OMB Circular A-123 - ANSWER- Management's Responsibility for Internal Control
OMB Circular A-136 - ANSWER- Financial Reporting Requirements
What was precursor to Constitution? - ANSWER- Articles Of Confederation (1781)
What was required to amend the Art. Of Confed? - ANSWER- Unanimous approval from all
states
When was Constitution Ratified? - ANSWER- June 1788
What is the principle behind the separation of power between the 3 branches? - ANSWER-
Devised to allay the fear that a centralized government would lead to tyranny
What is the essential principle of the Constitution? - ANSWER- That the government must be
confined to the rule of law
What does the Constitution define as the fundamental law of the US Federal Government? -
ANSWER- Set forth the 3 principal branches of the Federal Government; outline their
jurisdictions; propound the basic rights of US citizens
What Article lays out the rules for the Legislative Branch? - ANSWER- Article I
What section of Article 1 allows Congress to levy taxes and establish District Courts? - ANSWER-
Section 8
What Article lays out the rules for the Executive Branch? - ANSWER- Article 2
What Article lays out the rules for the Judicial Branch? - ANSWER- Article 3
Where are all revenue bills generated? - ANSWER- House of Representatives
,The President has how many days to act on a bill? - ANSWER- 10, excluding Sundays or
Holidays
What can override a Presidential veto of a bill? - ANSWER- 2/3 approval in both chambers
Congress is adjourned and the President fails to sign a bill during the 10-day period, that bill
does not become law. - ANSWER- Pocket Veto
What is important about Art I, Sec 9? - ANSWER- No money is to be issued from Treasury
without an Appropriation law
A legislative proposal of a general nature, only allowed to be introduced by a member of
Congress, and must be reviewed by the President for approval into law or rejected with a veto. -
ANSWER- Bill
Legislative proposal similar to a bill, frequently used to amend the Constitution , and can
originate in either the House or Senate, and must be reviewed by the President the same as a
bill. - ANSWER- Joint Resolution
Proposal to address matters that affect the operation of both the House and Senate, does not
go to the President for action. - ANSWER- Concurrent Resolution
Proposal to address matters that affect the operation of either the House or the Senate, does
not go to the President for action. - ANSWER- Simple Resolution
The bill that has passed one body, House or Senate, is called what? - ANSWER- Engrossed bill
Committee appointed to resolve differences between bills approved in both the House and
Senate. Referred to as "the third chamber" of Congress. - ANSWER- Conference committee
A bill that has passed the House and Senate in identical form to be sent to the President for
action is called what? - ANSWER- Enrolled bill
What are the phases of the Federal Budget Process? - ANSWER- Budget formulation
Congressional Action
Budget Execution
The Federal Budget is the _____ Budget. - ANSWER- The President's
Phase governed by OMB A-11. Organizations start drafts as early as 21 months prior to the FY in
which it will be executed - ANSWER- Phase 1: Budget Formulation
When must the President submit the next FY Budget? - ANSWER- 1st Monday in February
,What occurs for the Agency March - May in the Budget Formulation phase? - ANSWER-
Internal budget process, program, budget and management issues are identified, issues
internal instructions on preparation of annual budget estimates.
What occurs for the OMB May - June in the Budget Formulation phase? - ANSWER- Discusses
program, budget, and management issues with agencies throughout the process. Issues
technical instructions for preparation of annual budget estimates.
What occurs for the President and Advisors January - February in the Budget Formulation
Phase? - ANSWER- Transmits budget to Congress between the first Monday in January and
first Monday in February.
The internal review of the budget submissions from the Services and Defense Agencies that
occurs with the OSD and senior OMB examiners Sept - Dec. - ANSWER- Fall Review
The document containing the results of the OMB budget review that can change the funding for
individual programs. - ANSWER- Passback. Results can be appealed to the President by the
Agency Head (SecDef for DoD)
What Act changed the congressional budget process significantly? - ANSWER- Congressional
Budget and Impoundment Control Act of 1974
Phase of the Federal Budget Process that begins with the Director, OMB, and the Sec of the
Treasury appearing before Congress budget committees to explain the basis for the proposals. -
ANSWER- Phase 2: Congressional Action Phase
What phase of the Federal Budget Process do Agencies testify to Congress regarding their
budget requests? - ANSWER- Phase 2: Congressional Action Phase
What 3 processes occur during the Congressional Action Phase? - ANSWER- Budget
Resolution
Authorization
Appropriation
Process of estimating the budgetary effects of pending legislation and comparing to a baseline.
Done by the Congressional Budget Office in support of the various committees. - ANSWER-
Scorekeeping
Sets the maximums for new budget authority, sets outlay targets for the budget as a whole.
Establishes targets for the Gross National Debt, revenues, and surplus or deficit. Used to
, develop joint explanatory statement including estimated allocation of budget total. - ANSWER-
Concurrent Budget Resolution
Who manages the authorization process for DoD? - ANSWER- House Armed Services
Committee (HASC) and the Senate Armed Services Committee (SASC)
Prepared for adoption each year to provide budget authority to operate the entire Government.
Managed by House and Senate Appropriations Commitee (HAC/SAC). - ANSWER-
Appropriations Bill
What are the 3 Appropriations Subcommittees who directly affect DoD funding? - ANSWER-
Energy & Water Development; Defense; Military Construction, Veteran's Affairs, & Related
Agencies
Estimates transmitted to Congress that amend (revise) budget estimates transmitted previously
and on which Congress has not completed action. - ANSWER- Budget Amendments
Requests transmitted to Congress to provide funds in addition to amounts already appropriated
for the ongoing FY. - ANSWER- Supplemental Requests
Temporary appropriations act that provides budget authority for specific ongoing activities for a
specific period of time. Availability can be extended by Congress, and can extend into a different
session of Congress. - ANSWER- Continuing Resolution
Who prepares the Concurrent Budget Resolution? - ANSWER- House and Senate Budget
committees
Who conducts hearings and draft and submit the National Defense Authorization Bills that
authorize programs to exist? - ANSWER- House and Senate Armed Services Committee
(HASC/SASC)
Who conducts hearings and draft and submit the Appropriations Bills that provide budget
authority for the Government? - ANSWER- House and Senate Appropriations Committee
(HAC/SAC)
Funds may be obligated and expended only for the purposes authorized in the appropriations
acts or other laws. - ANSWER- Purpose
Period that budgetary resources may incur new obligations (i.e. order new goods/services) is
different from the period during which the budgetary resources may be used to incur
expenditures (i.e. pay bills). - ANSWER- Time
Financial Management
Competency 1: Gov't Resource Management Environment
OMB Circular A-11 - ANSWER- Preparation & Submission of Budget Estimates
OMB Circular A-76 - ANSWER- Performance of Commercial Activities
OMB Circular A-123 - ANSWER- Management's Responsibility for Internal Control
OMB Circular A-136 - ANSWER- Financial Reporting Requirements
What was precursor to Constitution? - ANSWER- Articles Of Confederation (1781)
What was required to amend the Art. Of Confed? - ANSWER- Unanimous approval from all
states
When was Constitution Ratified? - ANSWER- June 1788
What is the principle behind the separation of power between the 3 branches? - ANSWER-
Devised to allay the fear that a centralized government would lead to tyranny
What is the essential principle of the Constitution? - ANSWER- That the government must be
confined to the rule of law
What does the Constitution define as the fundamental law of the US Federal Government? -
ANSWER- Set forth the 3 principal branches of the Federal Government; outline their
jurisdictions; propound the basic rights of US citizens
What Article lays out the rules for the Legislative Branch? - ANSWER- Article I
What section of Article 1 allows Congress to levy taxes and establish District Courts? - ANSWER-
Section 8
What Article lays out the rules for the Executive Branch? - ANSWER- Article 2
What Article lays out the rules for the Judicial Branch? - ANSWER- Article 3
Where are all revenue bills generated? - ANSWER- House of Representatives
,The President has how many days to act on a bill? - ANSWER- 10, excluding Sundays or
Holidays
What can override a Presidential veto of a bill? - ANSWER- 2/3 approval in both chambers
Congress is adjourned and the President fails to sign a bill during the 10-day period, that bill
does not become law. - ANSWER- Pocket Veto
What is important about Art I, Sec 9? - ANSWER- No money is to be issued from Treasury
without an Appropriation law
A legislative proposal of a general nature, only allowed to be introduced by a member of
Congress, and must be reviewed by the President for approval into law or rejected with a veto. -
ANSWER- Bill
Legislative proposal similar to a bill, frequently used to amend the Constitution , and can
originate in either the House or Senate, and must be reviewed by the President the same as a
bill. - ANSWER- Joint Resolution
Proposal to address matters that affect the operation of both the House and Senate, does not
go to the President for action. - ANSWER- Concurrent Resolution
Proposal to address matters that affect the operation of either the House or the Senate, does
not go to the President for action. - ANSWER- Simple Resolution
The bill that has passed one body, House or Senate, is called what? - ANSWER- Engrossed bill
Committee appointed to resolve differences between bills approved in both the House and
Senate. Referred to as "the third chamber" of Congress. - ANSWER- Conference committee
A bill that has passed the House and Senate in identical form to be sent to the President for
action is called what? - ANSWER- Enrolled bill
What are the phases of the Federal Budget Process? - ANSWER- Budget formulation
Congressional Action
Budget Execution
The Federal Budget is the _____ Budget. - ANSWER- The President's
Phase governed by OMB A-11. Organizations start drafts as early as 21 months prior to the FY in
which it will be executed - ANSWER- Phase 1: Budget Formulation
When must the President submit the next FY Budget? - ANSWER- 1st Monday in February
,What occurs for the Agency March - May in the Budget Formulation phase? - ANSWER-
Internal budget process, program, budget and management issues are identified, issues
internal instructions on preparation of annual budget estimates.
What occurs for the OMB May - June in the Budget Formulation phase? - ANSWER- Discusses
program, budget, and management issues with agencies throughout the process. Issues
technical instructions for preparation of annual budget estimates.
What occurs for the President and Advisors January - February in the Budget Formulation
Phase? - ANSWER- Transmits budget to Congress between the first Monday in January and
first Monday in February.
The internal review of the budget submissions from the Services and Defense Agencies that
occurs with the OSD and senior OMB examiners Sept - Dec. - ANSWER- Fall Review
The document containing the results of the OMB budget review that can change the funding for
individual programs. - ANSWER- Passback. Results can be appealed to the President by the
Agency Head (SecDef for DoD)
What Act changed the congressional budget process significantly? - ANSWER- Congressional
Budget and Impoundment Control Act of 1974
Phase of the Federal Budget Process that begins with the Director, OMB, and the Sec of the
Treasury appearing before Congress budget committees to explain the basis for the proposals. -
ANSWER- Phase 2: Congressional Action Phase
What phase of the Federal Budget Process do Agencies testify to Congress regarding their
budget requests? - ANSWER- Phase 2: Congressional Action Phase
What 3 processes occur during the Congressional Action Phase? - ANSWER- Budget
Resolution
Authorization
Appropriation
Process of estimating the budgetary effects of pending legislation and comparing to a baseline.
Done by the Congressional Budget Office in support of the various committees. - ANSWER-
Scorekeeping
Sets the maximums for new budget authority, sets outlay targets for the budget as a whole.
Establishes targets for the Gross National Debt, revenues, and surplus or deficit. Used to
, develop joint explanatory statement including estimated allocation of budget total. - ANSWER-
Concurrent Budget Resolution
Who manages the authorization process for DoD? - ANSWER- House Armed Services
Committee (HASC) and the Senate Armed Services Committee (SASC)
Prepared for adoption each year to provide budget authority to operate the entire Government.
Managed by House and Senate Appropriations Commitee (HAC/SAC). - ANSWER-
Appropriations Bill
What are the 3 Appropriations Subcommittees who directly affect DoD funding? - ANSWER-
Energy & Water Development; Defense; Military Construction, Veteran's Affairs, & Related
Agencies
Estimates transmitted to Congress that amend (revise) budget estimates transmitted previously
and on which Congress has not completed action. - ANSWER- Budget Amendments
Requests transmitted to Congress to provide funds in addition to amounts already appropriated
for the ongoing FY. - ANSWER- Supplemental Requests
Temporary appropriations act that provides budget authority for specific ongoing activities for a
specific period of time. Availability can be extended by Congress, and can extend into a different
session of Congress. - ANSWER- Continuing Resolution
Who prepares the Concurrent Budget Resolution? - ANSWER- House and Senate Budget
committees
Who conducts hearings and draft and submit the National Defense Authorization Bills that
authorize programs to exist? - ANSWER- House and Senate Armed Services Committee
(HASC/SASC)
Who conducts hearings and draft and submit the Appropriations Bills that provide budget
authority for the Government? - ANSWER- House and Senate Appropriations Committee
(HAC/SAC)
Funds may be obligated and expended only for the purposes authorized in the appropriations
acts or other laws. - ANSWER- Purpose
Period that budgetary resources may incur new obligations (i.e. order new goods/services) is
different from the period during which the budgetary resources may be used to incur
expenditures (i.e. pay bills). - ANSWER- Time
