CDFM MODULE 3 EXAM REAL EXAM 200 QUESTIONS AND
CORRECT ANSWERS(DETAILED ANSWERS)
What are the three tests that must be met for use of the Necessary Expense
doctrine? - ANSWER: Must bear a logical relationship
Not prohibited by law
Not funded elsewhere
(p 3.1.17)
Who grants relief of liability to a certifying officer for erroneous or illegal payments
in the Department of Defense? - ANSWER: The Defense Finance and Accounting
Service (*DFAS*)
(p. 3.1.51)
What type of budgetary resources remains available for new obligations for more
than one fiscal year? - ANSWER: Multi-year authority
(p. 3.1.24)
What type of Congressional resolution can be thought of as a temporary
appropriations act? - ANSWER: Continuing Resolution (*CR*)
(p. 3.1.41)
What agency apportions funds for a working capital fund? - ANSWER: The Office of
Management and Budget (*OMB*)
(p. 2.1.71)
What is the acronym for disbursing office identification numbers? - ANSWER:
Disbursing Station Symbol Numbers (*DSSN*)
(p. 3.2.30)
What three primary types of officials are accountable Individuals in the DoD? -
ANSWER: Certifying Officers (*CO*),
Disbursing Officers (*DO*),
Departmental Accountable Officials (*DAO*)
(p. 2.2.21, 2.2.64)
What is the normal collection method for debts owed by active military members
and civilian employees who are still in service? - ANSWER: Salary Offset garnishing
(p. 3.2.38)
When collecting debts owed by vendors that have failed to properly respond to the
demand letters, what is the next step? - ANSWER: Do Not Pay List
(p. 3.2.40)
,When in doubt about the proper use of an appropriation, what may the disbursing
officer request form the OSD General Counsel on the propriety of the prospective
payment? - ANSWER: An Advance Decision
(p. 3.2.12)
When a civilian employee moves from a job overseas to a job in the states, which
organization pays for the Permanent Duty Travel? - ANSWER: The "*losing*" activity
(the *OCONUS* activity)
(p. 3.2.22)
Name the supporting documents required in the DoD Payment Package? - ANSWER:
Contract
Invoice
Proof of Receipt
Acceptance Document
(p. 3.2.24)
Name two key forms that provide accountability and control by Disbursing Officers? -
ANSWER: Standard Form *1219*, Statement of Accountability (monthly)
DD Form *2657*, Daily Statement of Accountability
(p. 3.2.44)
What term is used to describe Federal Government funds that have been paid but
have not yet been identified to a specific organization? - ANSWER: Undistributed
Disbursement
(p. 3.3.39)
The aggregate amount of an entity's funds in the Treasury is in what account? -
ANSWER: Fund Balance with Treasury
(p. 3.3.39)
Which three Federal agencies established the FASAB? - ANSWER: The Government
Accountability Office (*GAO*),
the Department of Treasury, and
the Office of Management and Budget (*OMB*)
(p. 3.3.13)
What is the Federal law that specifically required existing CFO agencies to have
financial statements that successfully pass a financial audit? - ANSWER: The
Government Management Reform Act of 1994
(p. 3.4.5)
Which standards generally apply to all Federal Government audits? - ANSWER: GAO
Standards or GAGAS
(p. 3.4.10)
,How many hours of continuing professional education must an auditor complete
every 2 years? - ANSWER: 80 hours in 2 years
(p. 3.4.14)
What is the minimum number of hours that must be completed in any year of the 2-
year period? - ANSWER: 20 hours minimum each year
(p. 3.4.14)
The auditor is restricted access to essential data necessary to satisfy the audit
objective. What type of impairment would this be? - ANSWER: External Impairment
(p. 3.4.12)
Which type of audit is expected to determine whether:
- The financial information is presented in accordance with established stated
criteria;
- The entity has adhered to specific financial compliance requirements; and
- The entity's internal control structure over financial reporting and/or safeguarding
of assets is suitably designed and implemented to achieve the control objective? -
ANSWER: Financial Audit
(p. 3.4.22)
Which type of audit is expected to determine whether:
- The entity is acquiring, using, and protecting its resources economically and
efficiently;
- The entity's programs are achieving the desired results or benefits; and
- The entity is accomplishing its mission in accordance with applicable laws,
regulations, and public policies. - ANSWER: Performance Audit
(p. 3.4.22)
What does Title 31 do? - ANSWER: Provides statutory authority for the use, control,
and accountability of public funds.
The established rule is that the expenditure of public funds is proper only when
authorized by Congress, not that public funds may be expended unless prohibited by
Congress. - ANSWER: Basic Axiom of Fiscal Law
What are the sources of Fiscal Law? - ANSWER: - The Constitution
- Authorization Acts
- Appropriation Acts
- General Statutes
- CG Decisions & Courts
Which part of the constitution empowers the Congress to pass bills for the raising of
revenue, and delineates how bills will pass from the Congress to the President for
signature or veto? - ANSWER: Article 1, Section 7
, Which part of the constitution empowers Congress to collect taxes? - ANSWER:
Article 1, Section 8, Clause 1
Which part of the constitution requires appropriations in law before money may be
spent from the Treasury?
The term appropriation applies broadly to any law that permits a Government
employee to spend money, not just to the regular appropriation bill. - ANSWER:
Article 1, Section 9, Clause 7
What did the Budget and Accounting Act of *1921* provide? - ANSWER: - Required
the President to submit an annual budget to Congress for all three branches of the
Federal Government
- Created a budget office for the President (chgd to OBM in 1970)
- Established the General Accounting Office (now called the Government
Accountability Office)
This law:
- Governs the congressional budget process
- Defines some key budget terms, such as budget authority, that are used in all
phases of the budget process
- Establishes the House and Senate Budget committees and the Congressional
Budget Office (CBO) - ANSWER: P.L. 93-344 and P.L. 100-119 Congressionl Budget Act
of *1974*
This law prescribes rules and procedures designed to constrain spending and
receipts legislation. - ANSWER: P.L. 99-177 Congressional Balanced Budget and
Emergency Deficit Control Act of *1985*
These sections prescribe rules and procedures for budget execution. The overarching
statutory requirement for the use, control and accountability of funds are found
here. - ANSWER: 31 USC 13 and 15
Responsible for use of appropriated funds as to the proper Purpose, Time and
Amount and for those US Codes pertaining thereto. - ANSWER: Fiduciary Certifier
Responsible for the accuracy of the disbursement of funds. - ANSWER: Pecuniary
Certifier
(True/False) There is relief from ADA violations in certain circumstances. - ANSWER:
False
Disbursing officers, cashiers, and collecting officers all have pecuniary responsibility
for the monies entrusted to their case and will be held ____ ____ for any loss or
theft of these funds. - ANSWER: personally liable
(True/False) Relief can be granted for either a loss of cash or miscertification when
certain conditions are met. - ANSWER: True
CORRECT ANSWERS(DETAILED ANSWERS)
What are the three tests that must be met for use of the Necessary Expense
doctrine? - ANSWER: Must bear a logical relationship
Not prohibited by law
Not funded elsewhere
(p 3.1.17)
Who grants relief of liability to a certifying officer for erroneous or illegal payments
in the Department of Defense? - ANSWER: The Defense Finance and Accounting
Service (*DFAS*)
(p. 3.1.51)
What type of budgetary resources remains available for new obligations for more
than one fiscal year? - ANSWER: Multi-year authority
(p. 3.1.24)
What type of Congressional resolution can be thought of as a temporary
appropriations act? - ANSWER: Continuing Resolution (*CR*)
(p. 3.1.41)
What agency apportions funds for a working capital fund? - ANSWER: The Office of
Management and Budget (*OMB*)
(p. 2.1.71)
What is the acronym for disbursing office identification numbers? - ANSWER:
Disbursing Station Symbol Numbers (*DSSN*)
(p. 3.2.30)
What three primary types of officials are accountable Individuals in the DoD? -
ANSWER: Certifying Officers (*CO*),
Disbursing Officers (*DO*),
Departmental Accountable Officials (*DAO*)
(p. 2.2.21, 2.2.64)
What is the normal collection method for debts owed by active military members
and civilian employees who are still in service? - ANSWER: Salary Offset garnishing
(p. 3.2.38)
When collecting debts owed by vendors that have failed to properly respond to the
demand letters, what is the next step? - ANSWER: Do Not Pay List
(p. 3.2.40)
,When in doubt about the proper use of an appropriation, what may the disbursing
officer request form the OSD General Counsel on the propriety of the prospective
payment? - ANSWER: An Advance Decision
(p. 3.2.12)
When a civilian employee moves from a job overseas to a job in the states, which
organization pays for the Permanent Duty Travel? - ANSWER: The "*losing*" activity
(the *OCONUS* activity)
(p. 3.2.22)
Name the supporting documents required in the DoD Payment Package? - ANSWER:
Contract
Invoice
Proof of Receipt
Acceptance Document
(p. 3.2.24)
Name two key forms that provide accountability and control by Disbursing Officers? -
ANSWER: Standard Form *1219*, Statement of Accountability (monthly)
DD Form *2657*, Daily Statement of Accountability
(p. 3.2.44)
What term is used to describe Federal Government funds that have been paid but
have not yet been identified to a specific organization? - ANSWER: Undistributed
Disbursement
(p. 3.3.39)
The aggregate amount of an entity's funds in the Treasury is in what account? -
ANSWER: Fund Balance with Treasury
(p. 3.3.39)
Which three Federal agencies established the FASAB? - ANSWER: The Government
Accountability Office (*GAO*),
the Department of Treasury, and
the Office of Management and Budget (*OMB*)
(p. 3.3.13)
What is the Federal law that specifically required existing CFO agencies to have
financial statements that successfully pass a financial audit? - ANSWER: The
Government Management Reform Act of 1994
(p. 3.4.5)
Which standards generally apply to all Federal Government audits? - ANSWER: GAO
Standards or GAGAS
(p. 3.4.10)
,How many hours of continuing professional education must an auditor complete
every 2 years? - ANSWER: 80 hours in 2 years
(p. 3.4.14)
What is the minimum number of hours that must be completed in any year of the 2-
year period? - ANSWER: 20 hours minimum each year
(p. 3.4.14)
The auditor is restricted access to essential data necessary to satisfy the audit
objective. What type of impairment would this be? - ANSWER: External Impairment
(p. 3.4.12)
Which type of audit is expected to determine whether:
- The financial information is presented in accordance with established stated
criteria;
- The entity has adhered to specific financial compliance requirements; and
- The entity's internal control structure over financial reporting and/or safeguarding
of assets is suitably designed and implemented to achieve the control objective? -
ANSWER: Financial Audit
(p. 3.4.22)
Which type of audit is expected to determine whether:
- The entity is acquiring, using, and protecting its resources economically and
efficiently;
- The entity's programs are achieving the desired results or benefits; and
- The entity is accomplishing its mission in accordance with applicable laws,
regulations, and public policies. - ANSWER: Performance Audit
(p. 3.4.22)
What does Title 31 do? - ANSWER: Provides statutory authority for the use, control,
and accountability of public funds.
The established rule is that the expenditure of public funds is proper only when
authorized by Congress, not that public funds may be expended unless prohibited by
Congress. - ANSWER: Basic Axiom of Fiscal Law
What are the sources of Fiscal Law? - ANSWER: - The Constitution
- Authorization Acts
- Appropriation Acts
- General Statutes
- CG Decisions & Courts
Which part of the constitution empowers the Congress to pass bills for the raising of
revenue, and delineates how bills will pass from the Congress to the President for
signature or veto? - ANSWER: Article 1, Section 7
, Which part of the constitution empowers Congress to collect taxes? - ANSWER:
Article 1, Section 8, Clause 1
Which part of the constitution requires appropriations in law before money may be
spent from the Treasury?
The term appropriation applies broadly to any law that permits a Government
employee to spend money, not just to the regular appropriation bill. - ANSWER:
Article 1, Section 9, Clause 7
What did the Budget and Accounting Act of *1921* provide? - ANSWER: - Required
the President to submit an annual budget to Congress for all three branches of the
Federal Government
- Created a budget office for the President (chgd to OBM in 1970)
- Established the General Accounting Office (now called the Government
Accountability Office)
This law:
- Governs the congressional budget process
- Defines some key budget terms, such as budget authority, that are used in all
phases of the budget process
- Establishes the House and Senate Budget committees and the Congressional
Budget Office (CBO) - ANSWER: P.L. 93-344 and P.L. 100-119 Congressionl Budget Act
of *1974*
This law prescribes rules and procedures designed to constrain spending and
receipts legislation. - ANSWER: P.L. 99-177 Congressional Balanced Budget and
Emergency Deficit Control Act of *1985*
These sections prescribe rules and procedures for budget execution. The overarching
statutory requirement for the use, control and accountability of funds are found
here. - ANSWER: 31 USC 13 and 15
Responsible for use of appropriated funds as to the proper Purpose, Time and
Amount and for those US Codes pertaining thereto. - ANSWER: Fiduciary Certifier
Responsible for the accuracy of the disbursement of funds. - ANSWER: Pecuniary
Certifier
(True/False) There is relief from ADA violations in certain circumstances. - ANSWER:
False
Disbursing officers, cashiers, and collecting officers all have pecuniary responsibility
for the monies entrusted to their case and will be held ____ ____ for any loss or
theft of these funds. - ANSWER: personally liable
(True/False) Relief can be granted for either a loss of cash or miscertification when
certain conditions are met. - ANSWER: True
