Comptrollers Fiscal Law & Accreditation Course
Module I - Test
Question 1
Due to increased operations in Afghanistan, the Army is running low on Hellfire missiles (air launch, anti-
tank missile.) Having exhausted the Missile Procurement, Army appropriation, an enterprising
comptroller recommends using funds from the Procurement of Ammunition, Army appropriation. His
argument is that “missiles are a type of ammunition so we can use either.” Can the Army use the
Procurement of Ammunition, Army appropriation?
Yes. It is for the war effort so anything goes.
Yes. The enterprising comptroller is correct; missiles are a type of ammunition.
No. This purchase should be handled by the Department of State as it deals with overseas activities.
No. There is a specific appropriation for the purchase of missiles. This is the only proper appropriation
that can be used.
Question 2
If a particular expenditure is not provided for by Congress, in order to meet the requirements of the
Purpose Statute, 31 U.S.C. § 1301, the expenditure must be necessary and incident to the proper
execution of the general purpose of the appropriation. The GAO has created a three-part test to
determine whether an expenditure is a “necessary expense” of an appropriation. Which of the following
IS NOT part of the three-part purpose test?
The expenditure must be necessary and incident to the purposes of the appropriation.
The expenditure must not be prohibited by law.
The comptroller must certify the funds.
The expenditure must not be otherwise provided for.
Question 3
The Fort TJAGLCS installation commander is hosting an awards ceremony for several service members
within the command who will be departing soon for a new duty station. The commander will be
awarding each of them a Meritorious Service Medal (MSM) honoring their accomplishments while at
Fort TJAGLCS. He intends to have a local art frame shop frame each awardee's award certificate and he
will present the framed certificate as part of the ceremony. In addition, he plans to purchase cake and
punch and serve it upon completion of the awards ceremony. Assuming the commander intends to use
appropriated funds to make these purchases, is there anything wrong with these intended purchases?
, No. He may use appropriated funds to purchase both the frame for the award certificates and the cake
and punch to be served at the ceremony if he deems these expenses necessary to honor the award
recipients.
Yes. The military awards statute, 10 U.S.C. § 1125, gives us the authority to issue military awards so we
must be able to frame them. The statute does not, however, allow Fort TJAGLCS to incur other necessary
expenses to honor the award recipients' accomplishments while at Fort TJAGLCS. Therefore, the cake
and punch may not be purchased with appropriated funds.
Yes. The military awards statute, 10 U.S.C. § 1125, only gives us the authority to issue the actual military
awards/certificates of award. It does not allow Fort TJAGLCS to incur any other expenses to honor the
award recipients' accomplishments. Therefore, neither the cake and punch nor the frames may be
purchased with appropriated funds.
Yes. The military awards statute, 10 U.S.C. § 1125, only gives us the authority to issue the actual military
awards/certificates of award. In order to pay for the cake and punch using appropriated funds, the
commander will have to declare the awards ceremony a mandatory training event. Even then, the
frames could not be paid for using appropriated funds.
Question 4
A valid Bona Fide Need exists when:
The first General Officer in the chain of command says so, regardless of when the supplies/services are
needed.
The contract is awarded and funds are obligated.
Two witnesses agree that a Bona Fide Need exists.
The unit uses the supplies, or for service contracts, when the unit requires the services to be performed.
Question 5
Any obligation of appropriated funds must comply with which of the following fiscal constraints:
The Minimum Needs Rule.
The Bona Fide Needs Rule.
The Paperwork Reduction Act.
The Cost Accounting Standards Board.
Module I - Test
Question 1
Due to increased operations in Afghanistan, the Army is running low on Hellfire missiles (air launch, anti-
tank missile.) Having exhausted the Missile Procurement, Army appropriation, an enterprising
comptroller recommends using funds from the Procurement of Ammunition, Army appropriation. His
argument is that “missiles are a type of ammunition so we can use either.” Can the Army use the
Procurement of Ammunition, Army appropriation?
Yes. It is for the war effort so anything goes.
Yes. The enterprising comptroller is correct; missiles are a type of ammunition.
No. This purchase should be handled by the Department of State as it deals with overseas activities.
No. There is a specific appropriation for the purchase of missiles. This is the only proper appropriation
that can be used.
Question 2
If a particular expenditure is not provided for by Congress, in order to meet the requirements of the
Purpose Statute, 31 U.S.C. § 1301, the expenditure must be necessary and incident to the proper
execution of the general purpose of the appropriation. The GAO has created a three-part test to
determine whether an expenditure is a “necessary expense” of an appropriation. Which of the following
IS NOT part of the three-part purpose test?
The expenditure must be necessary and incident to the purposes of the appropriation.
The expenditure must not be prohibited by law.
The comptroller must certify the funds.
The expenditure must not be otherwise provided for.
Question 3
The Fort TJAGLCS installation commander is hosting an awards ceremony for several service members
within the command who will be departing soon for a new duty station. The commander will be
awarding each of them a Meritorious Service Medal (MSM) honoring their accomplishments while at
Fort TJAGLCS. He intends to have a local art frame shop frame each awardee's award certificate and he
will present the framed certificate as part of the ceremony. In addition, he plans to purchase cake and
punch and serve it upon completion of the awards ceremony. Assuming the commander intends to use
appropriated funds to make these purchases, is there anything wrong with these intended purchases?
, No. He may use appropriated funds to purchase both the frame for the award certificates and the cake
and punch to be served at the ceremony if he deems these expenses necessary to honor the award
recipients.
Yes. The military awards statute, 10 U.S.C. § 1125, gives us the authority to issue military awards so we
must be able to frame them. The statute does not, however, allow Fort TJAGLCS to incur other necessary
expenses to honor the award recipients' accomplishments while at Fort TJAGLCS. Therefore, the cake
and punch may not be purchased with appropriated funds.
Yes. The military awards statute, 10 U.S.C. § 1125, only gives us the authority to issue the actual military
awards/certificates of award. It does not allow Fort TJAGLCS to incur any other expenses to honor the
award recipients' accomplishments. Therefore, neither the cake and punch nor the frames may be
purchased with appropriated funds.
Yes. The military awards statute, 10 U.S.C. § 1125, only gives us the authority to issue the actual military
awards/certificates of award. In order to pay for the cake and punch using appropriated funds, the
commander will have to declare the awards ceremony a mandatory training event. Even then, the
frames could not be paid for using appropriated funds.
Question 4
A valid Bona Fide Need exists when:
The first General Officer in the chain of command says so, regardless of when the supplies/services are
needed.
The contract is awarded and funds are obligated.
Two witnesses agree that a Bona Fide Need exists.
The unit uses the supplies, or for service contracts, when the unit requires the services to be performed.
Question 5
Any obligation of appropriated funds must comply with which of the following fiscal constraints:
The Minimum Needs Rule.
The Bona Fide Needs Rule.
The Paperwork Reduction Act.
The Cost Accounting Standards Board.
