CDFM Module 3 Fiscal Law-Exam Questions with correct Answers

You work at the Orange Sands Missile Range (OSMR) Legal Office. The SJA wants your advice on two pieces of equipment that he personally would like to see purchased for use in the common break area of the legal office. He wants to use appropriated funds to buy a refrigerator and a microwave. His rationale is that employees (both military and civilian) need a place to store and prepare food they bring in from home. You respond by telling him: - ANSWER Absent any local or service-level policies to the contrary, the refrigerator and microwave may be purchased with Operations and Maintenance, Army appropriations. The Comptroller General has determined that such equipment reasonably relates to the efficient performance of agency activities and provides other benefits to the agency, including assurance of a safe workplace. Operations and Maintenance appropriations are typically available for obligation for: - ANSWER 1 year You are the chief of administrative law at Ft. Cholk, Louisiana. The SJA and your installation's contract law attorney are out of the office, attending a fiscal law seminar in Las Vegas. The Chief of Staff (your senior rater) has called you into his office and asks you the following: "Hey judge, do you remember that field latrine construction project the Commanding General is all excited about - you know, the one with all the bells and whistles - the one the SJA says we cannot use Operation & Maintenance (O&M) money on since the cost exceeds $750,000? The old man had a great idea. Why don't we do the foundation work this year with current (FY 2012) O&M funds, then next year finish up the project with 2013 O&M funds? Each contract will be less than $750,000." Knowing that the Chief of Staff is a zero tolerance type of guy, you thoroughly research the matter and give the following correct advice. - ANSWER "Splitting a project between fiscal years for the sole purpose of avoiding the statutory limits on use of O&M funds is clearly illegal. This project cannot be funded by splitting the requirement into two contracts if the total cost exceeds $750,000 and O&M funds are used." Which of the following is a correct statement of Fiscal Law Philosophy: - ANSWER Expenditure of appropriated funds is proper only when authorized by Congress. A valid Bona Fide Need exists when: - ANSWER