CDFM Module 3 Competency 3 -
Accounting and Finance Exam-Graded
A
What are the types of accounting behind the federal accounting framework? Who are
the primary users of federal financial information? - ANS-Budgetary
Proprietary
Managerial Cost accounting
External users (citizens and congress)
Internal users (agency heads and management)
What estbalishes the statutory requirements for accounting? - ANS-the US Constitution,
Article 1 section 9 clause 7
"No money shall be drawn from treasury, but in consequence of appropriations made by
law; and a regular statement of account of the receipts and expenditures to all public
money shall be published from time to time."
What is the CFO act of 1990? - ANS-Required audited financial statements for the
business activities of the 24 designated CFO agencies.
Required audits of working capital fund activities only
What is the Government Management Reform Act of 1994? - ANS-Amended the CFO
Act to require audited financial statements for the 24 CFO agencies and an audited
financial report of the US government (starting with FY97)
Required EVERYTHING to be audited
DoD still hasn't passed an audit
What are the names of the federal financial statements? - ANS-Balance Sheets
Statements of Net Cost
Statements of Operations and Changes in Net Position
What is a judgement fund? - ANS-Pays court settlements/outcomes rendered against
the federal government - fiscal year decision is made is fund that will pay
Flow of funds - what is the flow of funds? - ANS-Appropriation
, Apportionment
Allotment
Commitment - can be cancelled with no admin penalty
Obligation - legal reservation of funds (amounts of orders/contracts, services received,
other transactions occurring during given period that would require payments during
same or future period)
Outlay
Bona fide need - reminder - ANS-FY appropriation may only be obligated to meet bona
fide need arising in FY need arose. Does not apply to no-year, just multi/annual
When are military/civilian pay recorded as obligations? - ANS-In the month or pay
period earned and supported by payroll records
When are permanent change of station costs recorded as obligations? - ANS-When
orders are issued, based on travel estimates and dates of travel
What are the two primary docs a program manager or designated funds control official
uses to obligate budget authority? - ANS-Contracts
MIPRS
What type of MIPRS are there? - ANS-Project order MIPRS - non-severable work. Can
cross fiscal years, deobligate once work is done
Economy act order MIPRS - severable, deobligate by end of FY for money not used.
What statute covers refunds/rebates? - ANS-10 USC 2784 - gives DoD statutory
authority to deposit rebates or refunds attributable to use of GPC and refunds
attributable to official government travel
What three accounting systems compose federal accounting structure? - ANS-
Budgetary Accounting - USSGL account starting with 4
Proprietary Accounting (financial accounting) - USSGL accounts not starting with 4
Managerial Cost Accounting
What is the primary function of the USSGL? - ANS-provides unform chart of accounts
and technical guidance to be used in standardizing federal agency accounting for
budgetary and proprietary accounting transactions
What are the account codes, titles, and normal balances of the USSGL chart of
accounts? - ANS-1000 - Assets - Debit
2000 - Liabilities - Credit
3000 - Net Position - Credit
Accounting and Finance Exam-Graded
A
What are the types of accounting behind the federal accounting framework? Who are
the primary users of federal financial information? - ANS-Budgetary
Proprietary
Managerial Cost accounting
External users (citizens and congress)
Internal users (agency heads and management)
What estbalishes the statutory requirements for accounting? - ANS-the US Constitution,
Article 1 section 9 clause 7
"No money shall be drawn from treasury, but in consequence of appropriations made by
law; and a regular statement of account of the receipts and expenditures to all public
money shall be published from time to time."
What is the CFO act of 1990? - ANS-Required audited financial statements for the
business activities of the 24 designated CFO agencies.
Required audits of working capital fund activities only
What is the Government Management Reform Act of 1994? - ANS-Amended the CFO
Act to require audited financial statements for the 24 CFO agencies and an audited
financial report of the US government (starting with FY97)
Required EVERYTHING to be audited
DoD still hasn't passed an audit
What are the names of the federal financial statements? - ANS-Balance Sheets
Statements of Net Cost
Statements of Operations and Changes in Net Position
What is a judgement fund? - ANS-Pays court settlements/outcomes rendered against
the federal government - fiscal year decision is made is fund that will pay
Flow of funds - what is the flow of funds? - ANS-Appropriation
, Apportionment
Allotment
Commitment - can be cancelled with no admin penalty
Obligation - legal reservation of funds (amounts of orders/contracts, services received,
other transactions occurring during given period that would require payments during
same or future period)
Outlay
Bona fide need - reminder - ANS-FY appropriation may only be obligated to meet bona
fide need arising in FY need arose. Does not apply to no-year, just multi/annual
When are military/civilian pay recorded as obligations? - ANS-In the month or pay
period earned and supported by payroll records
When are permanent change of station costs recorded as obligations? - ANS-When
orders are issued, based on travel estimates and dates of travel
What are the two primary docs a program manager or designated funds control official
uses to obligate budget authority? - ANS-Contracts
MIPRS
What type of MIPRS are there? - ANS-Project order MIPRS - non-severable work. Can
cross fiscal years, deobligate once work is done
Economy act order MIPRS - severable, deobligate by end of FY for money not used.
What statute covers refunds/rebates? - ANS-10 USC 2784 - gives DoD statutory
authority to deposit rebates or refunds attributable to use of GPC and refunds
attributable to official government travel
What three accounting systems compose federal accounting structure? - ANS-
Budgetary Accounting - USSGL account starting with 4
Proprietary Accounting (financial accounting) - USSGL accounts not starting with 4
Managerial Cost Accounting
What is the primary function of the USSGL? - ANS-provides unform chart of accounts
and technical guidance to be used in standardizing federal agency accounting for
budgetary and proprietary accounting transactions
What are the account codes, titles, and normal balances of the USSGL chart of
accounts? - ANS-1000 - Assets - Debit
2000 - Liabilities - Credit
3000 - Net Position - Credit
