i i i i
Q U E S TI O N i 1
1. i Which iof ithe ifollowing iis ia icorrect istatement iof iFiscal iLaw iPhilosophy:
iiii i If ithe ilaw iis isilent ias ito iwhether ia ipurchase ican ibe imade, iit iis
i probably isafe ito ispend iappropriated ifunds.
i i i i i Expenditure i of i appropriated i funds i is i proper i only i when i authorized
ib y iCongress.
i i i i i If ithe i commander isays ibuy i it, idon’t iworry i about iFiscal iLaw
iRegulations.
i i i i i Absent i a i specific i prohibition, i expending i appropriated i funds i is
ip ermitted.
20 ipoints
Q U E S TI O N
i 2
1. It iis iJuly i2010. iThe icontracting iofficer iat iFort iMason iis iabout ito iaward ia
icontract ifor ia icomputer isystem ithat i the iPost iEngineer iwill iuse i to itrack
iwork i orders i and i inventory. i This i $15,000 icomputer i system iis i readily
iavailable i within ia i few idays i from iany iof i several ilocal i vendors. i The iPost
iEngineer iintends i to iplace ithe i system iin i a iwarehouse i for i which
iconstruction i will i begin i in i December i2010. i The i contract i cites i FY i 2010,
iOperations i and i Maintenance, i Army i (OMA) i funds. i What i should i you
iadvise ithe icontracting iofficer?
iiii i The icontracting iofficer imay iaward i the icontract iciting iFY i2010 iOMA
ifunds. iObligating ifunds iin iJuly i2010 iwill inot iviolate ithe
iAntideficiency iAct. iThe iPost iEngineer, ihowever, imay inot ipay ifor ithe
isystem iuntil ithe iwarehouse iis icompleted.
i i i i i Because i the iPost iEngineer iwill iuse ithe isystem i to iperform
iinstallation ioperations, i and i because ithe i"lead i time" i exception
iclearly i permits i use i of i FY i 2010 i funds i for i the i system, i the i contract
iaward iis iproper.
i i i i i The icontracting iofficer ishould inot iaward ithis icontract. iTo ido isoiwould
iviolate ithe ibona ifide ineeds irule.
i i i i i Award inow iis iproper iif ithe iinstallation ilater iobtains iProcurement
ifunds i to ireplace ithe i funds i obligated ifor ithe i computer i system.
i i i i i None i of i the i above.
20 ipoints
Q U E S TI O N
i 3
1. If ia iparticular iexpenditure iis inot iprovided ifor iby iCongress, iin iorder ito
imeet ithe irequirements iof ithe iPurpose iStatute, i31 iU.S.C. i§ i1301, ithe
iexpenditure imust i be i necessary i and i incident i to i the i proper i execution i of
ithe i general i purpose iof i the i appropriation. i The iGAO i has i created ia i three-
ip art itest ito idetermine iwhether ian iexpenditure iis ia i“necessary
, CLG 001 Fiscal Law Questions
i i i i
expense” iof ian iappropriation. iWhich iof ithe ifollowing iIS iNOT ipart iof ithe
ithree-part ipurpose itest?
iiiiiiiiiii The i expenditure i must i be i necessary i and i incident i to i the i purposes
of ithe iappropriation.
i
i i i i i i i i i i iThe iexpenditure imust inot ibe iprohibited iby ilaw. i
The icomptroller imust icertify ithe ifunds.
i i i i i i i i i ii
iiiiiiiiiii The iexpenditure imust inot ibe iotherwise iprovided ifor.
20 ipoints
Q U E S TI O N
i 4
1. It iis i14 iSeptember i2010 iand iFort iTJAGLCS istill ihas i$4000 iin iFY i2010
i Operations i and i Maintenance, i Army i appropriations i that i it i "needs" i to
ispend. i MAJ i I.M. iThemann, i the i Supply i Officer i at i TJAGLCS, i has i a i brilliant
iidea. iAt i a i recent i union i meeting, i several iemployees i complained i about
ithe itaste iof ithe icold ibrown iwater icoming iout iof iseveral iwater ifountains.
iThe icold ibrown iwater, ihowever, iis inot iunhealthy, iunsafe, iunpotable, i or
i unwholesome. i MAJ i Themann i decides i Fort i TJAGLCS ishould i get i water
i coolers i to i use i as i substitutes i for ithe i water i fountains. iBy i calling i local
i vendors, i he i determines i $3600 i is i enough i money i to i pay ifor ione iyear iof
iwater idelivery iservice i(five iwater icoolers iand iten i5- igallon icontainers iof
iwater i for i each iof ithose iwater icoolers i each imonth).iMAJ iThemann ihas
istopped iby i your ioffice ito idetermine ihow ito i execute ithis i brilliant iidea
i and i whether i he i has i the i right i money i to i use. i He i wants ithe ibottled iwater
idelivery iservices ito icommence itomorrow, i15 iSeptember i 2010, i and i to
i last i through i 14 i September i 2011. i What i do i youitell ihim?
iiii i Use i of i FY i 2010 i Operations i and i Maintenance, i Army i appropriations
is iproper, iunder i10 iU.S.C. i§2410a, ito ibuy ithis ibottled iwater idelivery
i
iservice.
i i i i i Use i of ithe i FY i2010 i Operations i and iMaintenance, i Army
iappropriations i is i only i proper i to i cover i the i time i period i running i 15
iS eptember i 2010 i to i 30 i September i 2010. i Fort i TJAGLCS i must i fund
ithe i period i running i from i 1 i October i 2010 i to i 14 i September i 2011
iwith i FY i 2011 i Operations i and i Maintenance, i Army i Appropriations.
i i i i i Since i most iof i the i contract iperiod i is i FY i 2011, i this i is i clearly i a i bona
ifide i need i of i FY i 2011, i so iFort i TJAGLCS i must i use i FY i 2011 i Operations
i and i Maintenance, i Army i Appropriations i to i fund i the ientire
icontractual iperiod.
i i i i i Fort i TJAGLCS i may i not i use i appropriated i funds i of i any i kind i to i fund
ithe ipurchase iof ithe iwater ior ithe icoolers, iunder ithese ifacts.
20 ipoints
Q U E S TI O N i 5