CDFM EXAM QUESTIONS AND CORRECT
ANSWERS 2025
What is the basic axiom of Fiscal Law? - ANSWER>>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. U.S. vs McCollum (1976)
"Where can the most authoritative source of information on the proper use of appropriated
funds be found? Who is it published by?" - ANSWER>>Principles of Federal Appropriations
better known as the Red Book-- published by the GAO.
What act created the General Accounting Office, GAO? - ANSWER>>Budget and Accounting
Act 1921
authorized the Comptroller General to audit the financial transactions of most 29 executive,
legislative, and judicial agencies; and to prescribe, in consultation with the President and the
Secretary of the Treasury, accounting principles, standards, and requirements for the
executive agencies suitable to their needs. - ANSWER>>Accounting and Auditing Act of 1950
In cases where violations of fiscal law statutes occur, agencies must do what? - ANSWER>>"*
Prepare reports to the President and Congress and
* Make necessary improvements in accounting and administrative control systems to prevent
future violations. "
What term applies broadly to any law that permits a Government employee to spend money,
not just to the regular appropriation bills. - ANSWER>>Appropriation
What are the Sources of Fiscal Law? - ANSWER>>The Constitution, Authorization Acts,
Appropriations Acts, General Statues, CG Decisions & Courts
Fiscal Law is based on what premise? - ANSWER>>that appropriations are only available for
obligation and expenditure when specifically approved by Congress, not that appropriations
may be used unless specifically prohibited by Congress.
,In _____ law, as long as there is no law that says you can't do something, you may legally do
it. However, in _____ law, you can do only what the law authorizes you to do. -
ANSWER>>Common; Fiscal
Laws and Regulations in Federal Financial Management - ANSWER>>Budget and Accounting
Act of 1921 Budget and Impoundment Control Act of 1974
Balanced Budget and Emergency Deficit Control Act of 1985
31 USC Sections 13 and 15
OMB Circular A-11
Article 1, Section 7, empower Congress to pass bills for ______________ and delineates how
bill will pass from the Congress to the President for signature or veto. - ANSWER>>Raising
revenue
Article 1, Section 8, empower Congress to _________ - ANSWER>>collect taxes
Article 1, Section 9, requires appropriations by law before money can be spent from the
_______. - ANSWER>>treasury
The most authoritative source of information on the proper use of appropriated funds is a
multi-volume treatise published by the GAO, called _____. It is available of the GAO website
www.gao.gov in 3 volumes. - ANSWER>>The Red Book
This law governs the congressional budget process
Defines some key budget terms, such as budget authority and Establishes the House and
Senate Budget committees and the Congressional Budget Office - ANSWER>>Congressional
Budget Act of 1974
This law prescribes rules and procedures including sequestration designed to constrain
spending and receipts legislation. Commonly known as, Gramm-Rudman-Hollings Act. -
ANSWER>>Congressional Balanced Budget and Emergency Deficit Control Act of 1985
Prescribe rules and procedures for budget execution. The overarching statutory requirement
for use, control and accountability of funds are found here. OMB Circular A-11 "Instructions
on Budget Execution" and GAO Federal Appropriations Law summarize and restate the
requirements of this law. - ANSWER>>31 USC 13 and 15
, Contains the same act as the Congressional Budget Act, this law prescribes rules and
procedures under which the President may withhold appropriated amounts from obligation. -
ANSWER>>Budget Impoundment Control Act of 1974
This circular provides instructions on preparation, submission, and execution of the budget;
contains a crosswalk for the provisions of the Antideficiency Act and instructions on
monitoring Federal outlays, obtaining GAO exemptions, reporting requirements for
unvouchered expenditures, and monitoring Federal employment. - ANSWER>>OMB Circular
A-11
Sources of Authority on the use of public funds that provide the basis for Federal
Appropriations Law - ANSWER>>US Constitution Congress Authorization and Appropriation
Acts
General and Specific statutes
Court Decisions and decisions from Comptroller General
conveys a confidence and trust; required to care for the funds of the people, and have the
responsibility to hold public funds in trust and confidence assuring funds are only used for the
purpose for which Congress intended. - ANSWER>>Fiduciary Responsibility
When a Funds certifying official certifies the public funds for which he has been intrusted,
he/she is certifying that : - ANSWER>>the funds are legal for use under Purpose, Time, and
Amount restrictions placed on the use of the funds by Congress.
An erroneous, willful, or knowing violation of fiduciary responsibility may lead to an ______. -
ANSWER>>Antideficiency Act Violation
True or False: Relief may be granted from an ADA Violation? - ANSWER>>FALSE
______ responsibility conveys the responsibility of physical control of the monies entrusted
to the care of the accountable official. - ANSWER>>Pecuniary
held personally liable for any erroneous payments, resulting from their miscertification, from
the second the payment is made. - ANSWER>>Certifying Officers
Responsible for the accuracy of the disbursement of funds. Responsible for the repayment of
any disbursement made not in accordance with proper Purpose, Time, or Amount. -
ANSWER>>Pecuniary Certifier
ANSWERS 2025
What is the basic axiom of Fiscal Law? - ANSWER>>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. U.S. vs McCollum (1976)
"Where can the most authoritative source of information on the proper use of appropriated
funds be found? Who is it published by?" - ANSWER>>Principles of Federal Appropriations
better known as the Red Book-- published by the GAO.
What act created the General Accounting Office, GAO? - ANSWER>>Budget and Accounting
Act 1921
authorized the Comptroller General to audit the financial transactions of most 29 executive,
legislative, and judicial agencies; and to prescribe, in consultation with the President and the
Secretary of the Treasury, accounting principles, standards, and requirements for the
executive agencies suitable to their needs. - ANSWER>>Accounting and Auditing Act of 1950
In cases where violations of fiscal law statutes occur, agencies must do what? - ANSWER>>"*
Prepare reports to the President and Congress and
* Make necessary improvements in accounting and administrative control systems to prevent
future violations. "
What term applies broadly to any law that permits a Government employee to spend money,
not just to the regular appropriation bills. - ANSWER>>Appropriation
What are the Sources of Fiscal Law? - ANSWER>>The Constitution, Authorization Acts,
Appropriations Acts, General Statues, CG Decisions & Courts
Fiscal Law is based on what premise? - ANSWER>>that appropriations are only available for
obligation and expenditure when specifically approved by Congress, not that appropriations
may be used unless specifically prohibited by Congress.
,In _____ law, as long as there is no law that says you can't do something, you may legally do
it. However, in _____ law, you can do only what the law authorizes you to do. -
ANSWER>>Common; Fiscal
Laws and Regulations in Federal Financial Management - ANSWER>>Budget and Accounting
Act of 1921 Budget and Impoundment Control Act of 1974
Balanced Budget and Emergency Deficit Control Act of 1985
31 USC Sections 13 and 15
OMB Circular A-11
Article 1, Section 7, empower Congress to pass bills for ______________ and delineates how
bill will pass from the Congress to the President for signature or veto. - ANSWER>>Raising
revenue
Article 1, Section 8, empower Congress to _________ - ANSWER>>collect taxes
Article 1, Section 9, requires appropriations by law before money can be spent from the
_______. - ANSWER>>treasury
The most authoritative source of information on the proper use of appropriated funds is a
multi-volume treatise published by the GAO, called _____. It is available of the GAO website
www.gao.gov in 3 volumes. - ANSWER>>The Red Book
This law governs the congressional budget process
Defines some key budget terms, such as budget authority and Establishes the House and
Senate Budget committees and the Congressional Budget Office - ANSWER>>Congressional
Budget Act of 1974
This law prescribes rules and procedures including sequestration designed to constrain
spending and receipts legislation. Commonly known as, Gramm-Rudman-Hollings Act. -
ANSWER>>Congressional Balanced Budget and Emergency Deficit Control Act of 1985
Prescribe rules and procedures for budget execution. The overarching statutory requirement
for use, control and accountability of funds are found here. OMB Circular A-11 "Instructions
on Budget Execution" and GAO Federal Appropriations Law summarize and restate the
requirements of this law. - ANSWER>>31 USC 13 and 15
, Contains the same act as the Congressional Budget Act, this law prescribes rules and
procedures under which the President may withhold appropriated amounts from obligation. -
ANSWER>>Budget Impoundment Control Act of 1974
This circular provides instructions on preparation, submission, and execution of the budget;
contains a crosswalk for the provisions of the Antideficiency Act and instructions on
monitoring Federal outlays, obtaining GAO exemptions, reporting requirements for
unvouchered expenditures, and monitoring Federal employment. - ANSWER>>OMB Circular
A-11
Sources of Authority on the use of public funds that provide the basis for Federal
Appropriations Law - ANSWER>>US Constitution Congress Authorization and Appropriation
Acts
General and Specific statutes
Court Decisions and decisions from Comptroller General
conveys a confidence and trust; required to care for the funds of the people, and have the
responsibility to hold public funds in trust and confidence assuring funds are only used for the
purpose for which Congress intended. - ANSWER>>Fiduciary Responsibility
When a Funds certifying official certifies the public funds for which he has been intrusted,
he/she is certifying that : - ANSWER>>the funds are legal for use under Purpose, Time, and
Amount restrictions placed on the use of the funds by Congress.
An erroneous, willful, or knowing violation of fiduciary responsibility may lead to an ______. -
ANSWER>>Antideficiency Act Violation
True or False: Relief may be granted from an ADA Violation? - ANSWER>>FALSE
______ responsibility conveys the responsibility of physical control of the monies entrusted
to the care of the accountable official. - ANSWER>>Pecuniary
held personally liable for any erroneous payments, resulting from their miscertification, from
the second the payment is made. - ANSWER>>Certifying Officers
Responsible for the accuracy of the disbursement of funds. Responsible for the repayment of
any disbursement made not in accordance with proper Purpose, Time, or Amount. -
ANSWER>>Pecuniary Certifier
