FISCAL LAW ANSWERS
QUESTION 1
1. Which of the following is a correct statement of Fiscal Law Philosophy:
If the law is silent as to whether a purchase can be made, it is
probably safe to spend appropriated funds.
Expenditure of appropriated funds is proper only when authorized
by Congress.
If the commander says buy it, don’t worry about Fiscal Law
Regulations.
Absent a specific prohibition, expending appropriated funds is
permitted.
20 points
QUESTION 2
1. It is July 2010. The contracting officer at Fort Mason is about to award a
contract for a computer system that the Post Engineer will use to track
work orders and inventory. This $15,000 computer system is readily
available within a few days from any of several local vendors. The Post
Engineer intends to place the system in a warehouse for which
construction will begin in December 2010. The contract cites FY 2010,
Operations and Maintenance, Army (OMA) funds. What should you
advise the contracting officer?
The contracting officer may award the contract citing FY 2010 OMA
funds. Obligating funds in July 2010 will not violate the
Antideficiency Act. The Post Engineer, however, may not pay for
the system until the warehouse is completed.
Because the Post Engineer will use the system to perform
installation operations, and because the "lead time" exception
clearly permits use of FY 2010 funds for the system, the contract
award is proper.
The contracting officer should not award this contract. To do so
would violate the bona fide needs rule.
Award now is proper if the installation later obtains Procurement
funds to replace the funds obligated for the computer system.
None of the above.
20 points
QUESTION 3
1. 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.
20 points
QUESTION 4
1. It is 14 September 2010 and Fort TJAGLCS still has $4000 in FY 2010
Operations and Maintenance, Army appropriations that it "needs" to
spend. MAJ I.M. Themann, the Supply Officer at TJAGLCS, has a brilliant
idea. At a recent union meeting, several employees complained about
the taste of the cold brown water coming out of several water
fountains. The cold brown water, however, is not unhealthy, unsafe,
unpotable, or unwholesome. MAJ Themann decides Fort TJAGLCS
should get water coolers to use as substitutes for the water fountains.
By calling local vendors, he determines $3600 is enough money to pay
for one year of water delivery service (five water coolers and ten 5-
gallon containers of water for each of those water coolers each month).
MAJ Themann has stopped by your office to determine how to execute
this brilliant idea and whether he has the right money to use. He wants
the bottled water delivery services to commence tomorrow, 15
September 2010, and to last through 14 September 2011. What do you
tell him?
Use of FY 2010 Operations and Maintenance, Army appropriations
is proper, under 10 U.S.C. §2410a, to buy this bottled water
delivery service.
Use of the FY 2010 Operations and Maintenance, Army
appropriations is only proper to cover the time period running 15
September 2010 to 30 September 2010. Fort TJAGLCS must fund
the period running from 1 October 2010 to 14 September 2011
with FY 2011 Operations and Maintenance, Army Appropriations.
Since most of the contract period is FY 2011, this is clearly a bona
fide need of FY 2011, so Fort TJAGLCS must use FY 2011
Operations and Maintenance, Army Appropriations to fund the
entire contractual period.
Fort TJAGLCS may not use appropriated funds of any kind to fund
the purchase of the water or the coolers, under these facts.
20 points
QUESTION 5
, 1. The fiscal year for the U.S. Government is a 12-month period from:
1 July through 30 June.
1 October through 30
September.
1 September through 30
August.
1 January through 31
December
QUESTION 1
1. The Director of Research and Development (DRD) at the Orange Sands
Missile Range comes to your office late on a Friday afternoon. He just
learned that his office used an RDT&E appropriation to fund the
purchase of a Lifterrator, a hydraulic lift system capable of lifting
extremely heavy objects. Since the Lifterrator is a capital item costing
more than the investment/expense threshold, however, its purchase
should have been funded with a Procurement appropriation. The DRD
wants to know what is necessary to avoid an Antideficiency Act
violation for violating 31 U.S.C. § 1301(a) (the Purpose Statute). Please
select the best answer.
Proper funds must have been available at the time of the
erroneous obligation.
Proper funds must have been available when the agency
discovered, and corrected the erroneous obligation.
Proper funds must have been available continuously between the
time of the erroneous obligation and correction of the purpose
violation.
The agency must show that (A) & (B).
None of the above. You can never correct a purpose violation.
20 points
QUESTION 2
1. Assume that on 15 September 2010, there is a national emergency
requiring the assistance of DOD. As a result, the Secretary of Defense
deems it necessary to obligate FY 2010 funds in excess of their
availability. Under these circumstances, which of the following is true?
If Congress passes the FY 2011 Authorization Act in FY 2010, the
Army could obligate and expend FY 2010 Operation and
Maintenance, Army funds for ammunition and other operational
needs.
QUESTION 1
1. Which of the following is a correct statement of Fiscal Law Philosophy:
If the law is silent as to whether a purchase can be made, it is
probably safe to spend appropriated funds.
Expenditure of appropriated funds is proper only when authorized
by Congress.
If the commander says buy it, don’t worry about Fiscal Law
Regulations.
Absent a specific prohibition, expending appropriated funds is
permitted.
20 points
QUESTION 2
1. It is July 2010. The contracting officer at Fort Mason is about to award a
contract for a computer system that the Post Engineer will use to track
work orders and inventory. This $15,000 computer system is readily
available within a few days from any of several local vendors. The Post
Engineer intends to place the system in a warehouse for which
construction will begin in December 2010. The contract cites FY 2010,
Operations and Maintenance, Army (OMA) funds. What should you
advise the contracting officer?
The contracting officer may award the contract citing FY 2010 OMA
funds. Obligating funds in July 2010 will not violate the
Antideficiency Act. The Post Engineer, however, may not pay for
the system until the warehouse is completed.
Because the Post Engineer will use the system to perform
installation operations, and because the "lead time" exception
clearly permits use of FY 2010 funds for the system, the contract
award is proper.
The contracting officer should not award this contract. To do so
would violate the bona fide needs rule.
Award now is proper if the installation later obtains Procurement
funds to replace the funds obligated for the computer system.
None of the above.
20 points
QUESTION 3
1. 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.
20 points
QUESTION 4
1. It is 14 September 2010 and Fort TJAGLCS still has $4000 in FY 2010
Operations and Maintenance, Army appropriations that it "needs" to
spend. MAJ I.M. Themann, the Supply Officer at TJAGLCS, has a brilliant
idea. At a recent union meeting, several employees complained about
the taste of the cold brown water coming out of several water
fountains. The cold brown water, however, is not unhealthy, unsafe,
unpotable, or unwholesome. MAJ Themann decides Fort TJAGLCS
should get water coolers to use as substitutes for the water fountains.
By calling local vendors, he determines $3600 is enough money to pay
for one year of water delivery service (five water coolers and ten 5-
gallon containers of water for each of those water coolers each month).
MAJ Themann has stopped by your office to determine how to execute
this brilliant idea and whether he has the right money to use. He wants
the bottled water delivery services to commence tomorrow, 15
September 2010, and to last through 14 September 2011. What do you
tell him?
Use of FY 2010 Operations and Maintenance, Army appropriations
is proper, under 10 U.S.C. §2410a, to buy this bottled water
delivery service.
Use of the FY 2010 Operations and Maintenance, Army
appropriations is only proper to cover the time period running 15
September 2010 to 30 September 2010. Fort TJAGLCS must fund
the period running from 1 October 2010 to 14 September 2011
with FY 2011 Operations and Maintenance, Army Appropriations.
Since most of the contract period is FY 2011, this is clearly a bona
fide need of FY 2011, so Fort TJAGLCS must use FY 2011
Operations and Maintenance, Army Appropriations to fund the
entire contractual period.
Fort TJAGLCS may not use appropriated funds of any kind to fund
the purchase of the water or the coolers, under these facts.
20 points
QUESTION 5
, 1. The fiscal year for the U.S. Government is a 12-month period from:
1 July through 30 June.
1 October through 30
September.
1 September through 30
August.
1 January through 31
December
QUESTION 1
1. The Director of Research and Development (DRD) at the Orange Sands
Missile Range comes to your office late on a Friday afternoon. He just
learned that his office used an RDT&E appropriation to fund the
purchase of a Lifterrator, a hydraulic lift system capable of lifting
extremely heavy objects. Since the Lifterrator is a capital item costing
more than the investment/expense threshold, however, its purchase
should have been funded with a Procurement appropriation. The DRD
wants to know what is necessary to avoid an Antideficiency Act
violation for violating 31 U.S.C. § 1301(a) (the Purpose Statute). Please
select the best answer.
Proper funds must have been available at the time of the
erroneous obligation.
Proper funds must have been available when the agency
discovered, and corrected the erroneous obligation.
Proper funds must have been available continuously between the
time of the erroneous obligation and correction of the purpose
violation.
The agency must show that (A) & (B).
None of the above. You can never correct a purpose violation.
20 points
QUESTION 2
1. Assume that on 15 September 2010, there is a national emergency
requiring the assistance of DOD. As a result, the Secretary of Defense
deems it necessary to obligate FY 2010 funds in excess of their
availability. Under these circumstances, which of the following is true?
If Congress passes the FY 2011 Authorization Act in FY 2010, the
Army could obligate and expend FY 2010 Operation and
Maintenance, Army funds for ammunition and other operational
needs.
