Federal Budget Management Quiz

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Questions and Answers

Which of the following acts focused the major federal agencies on CFO activities and increased the emphasis on achieving clean audit opinions?

Government Performance and Results Modernization Act (GPRAMA)

Chief Financial Officers (CFO) Act (correct)

National Defense Authorization Act (NDAA)

Government Performance and Results Act (GPRA)

Which act primarily focused on integrating strategic planning, performance planning, and performance reporting with the budget and reporting processes in federal agencies?

National Defense Authorization Act (NDAA)

Chief Financial Officers (CFO) Act

Government Performance and Results Act (GPRA) (correct)

Government Performance and Results Modernization Act (GPRAMA)

The GPRA Modernization Act (GPRAMA) requires which of the following?

Agencies to submit annual performance plans

Agencies to establish priority goals

OMB to establish federal priority goals

All of the above (correct)

What does the National Defense Authorization Act (NDAA) primarily authorize?

Military construction projects, military end strength, and military personnel pay and benefits (B) Signup and view all the answers

What is the role of the Under Secretary of Defense (Comptroller) within the DoD?

To manage the financial management and financial information systems of the DoD (A) Signup and view all the answers

Which of these acts directly led to the creation of the Defense Finance and Accounting Service?

Chief Financial Officers (CFO) Act (C) Signup and view all the answers

What is the main purpose of the Strategic Management Plan?

To outline the DoD's strategic goals and objectives and how they will be achieved (B) Signup and view all the answers

What is the primary difference between enabling and authorizing appropriations in the NDAA?

Enabling authorization focuses on projects and activities while authorizing appropriations focuses on funding those projects and activities (D) Signup and view all the answers

What is the purpose of a markup session?

To discuss and amend a bill (D) Signup and view all the answers

What is the role of a committee report?

It outlines the purpose and scope of the legislation. (C) Signup and view all the answers

What is the function of a rule in the legislative process?

It sets the rules for debate and amendment processes. (D) Signup and view all the answers

What is the main purpose of a vote to recommit a bill to committee?

To force the committee to reconsider a specific amendment. (C) Signup and view all the answers

Which of the following is NOT a common element of a markup session?

Presentation of evidence by experts (A) Signup and view all the answers

What is the significance of the committee report in the legislative process?

It helps to guide interpretation and implementation of the bill. (A) Signup and view all the answers

What is the relationship between a markup session and a committee report?

The committee report is drafted after the markup session to summarize the changes made to the bill. (A) Signup and view all the answers

Why is debate time divided between proponents and opponents of a bill?

To create a fair and balanced discussion of the bill. (A) Signup and view all the answers

What is the primary purpose of the Concurrent Budget Resolution (CBR)?

To establish overall spending levels and guide the budget process. (A) Signup and view all the answers

Which of the following is NOT a responsibility of congressional budget committees in relation to the CBR?

Establishing revenue projections for the upcoming fiscal year. (B) Signup and view all the answers

What is the significance of the appropriations committees' role in the budget process after the CBR is passed?

They subdivide the budget allocations among subcommittees for further distribution. (A), They establish spending limits for each of the 12 appropriations bills. (B) Signup and view all the answers

What is the primary goal of Enterprise Risk Management (ERM)?

To identify and assess risks, then develop and implement appropriate responses. (C) Signup and view all the answers

Which of the following is NOT one of the 5 framework responsibilities related to ERM and IC?

Developing a detailed risk profile that outlines every potential risk. (B) Signup and view all the answers

What does Internal Control primarily aim to achieve within an organization?

To provide reasonable assurance that the organization's objectives will be achieved. (B) Signup and view all the answers

Which of the following is NOT a component of OMB Circular A-123's requirement for a risk profile?

Developing a risk mitigation plan. (A) Signup and view all the answers

Which of the following is MOST closely related to the concept of Internal Control?

All of the above. (D) Signup and view all the answers

What prefix is used for bills introduced in the House of Representatives?

H.R. (D) Signup and view all the answers

Which of the following resolutions requires a two-thirds vote from both houses to propose an amendment?

Joint Resolution (C) Signup and view all the answers

What is the primary purpose of a concurrent resolution?

To handle matters affecting both the House and Senate (C) Signup and view all the answers

What happens to a proposed amendment once it is approved by Congress?

It goes directly to individual states for ratification (C) Signup and view all the answers

How are joint resolutions designated in the Senate?

S.J.Res. (C) Signup and view all the answers

Which statement regarding the consideration of a bill in Congress is incorrect?

All committee hearings are classified and not made public. (B) Signup and view all the answers

What must occur for a joint resolution to become law?

It must be signed by the House Clerk and Senate Secretary. (A) Signup and view all the answers

What is the first step usually taken during the consideration of a bill in committee?

Public hearings where witnesses provide testimony. (D) Signup and view all the answers

What is the purpose of Internal Control Over Reporting (ICOR)?

To provide assurance testing for financial reports (C) Signup and view all the answers

Which of the following is NOT a major type of risk as defined in the content?

Operational (A) Signup and view all the answers

According to the content, what is the main function of the Federal Managers' Financial Integrity Act (FMFIA) of 1982?

To require agencies to submit an annual statement of assurance (A) Signup and view all the answers

Which document is referred to as 'the Green Book' in the context of internal control within the Federal Government?

Government Accountability Office (GAO) Standards for Internal Control in the Federal Government (D) Signup and view all the answers

Which of these is NOT a component of internal controls as outlined in the provided content?

Financial reporting (D) Signup and view all the answers

What is the role of management in relation to Shared Service Providers?

Management is responsible for the entire process, including monitoring user controls of the 3rd party. (B) Signup and view all the answers

Which of these is NOT a specific benefit of having effective internal controls? (Select all that apply)

Improving investor confidence (C), Guaranteeing the accuracy of all financial reporting (D) Signup and view all the answers

Which organization is NOT explicitly mentioned as a leading ERM and Internal Controls international standards setter?

International Accounting Standards Board (IASB) (D) Signup and view all the answers

What does the Anti-deficiency Act (ADA) primarily aim to prevent?

Overspending by government agencies beyond their authorized appropriations. (A) Signup and view all the answers

Which of the following is NOT a level of government spending that the Anti-deficiency Act regulates?

Authorization (A) Signup and view all the answers

Under what circumstances can an agency augment its appropriation from outside sources without violating the ADA?

When the agency has specific statutory authority to do so. (C) Signup and view all the answers

What is the main purpose of the miscellaneous receipts statute (31 U.S.C. 3302(b)) as it relates to the ADA?

To ensure that all government funds are deposited into the Treasury. (D) Signup and view all the answers

What is the primary characteristic of 'sequestration' as defined in the text?

Automatic cuts to federal spending on certain programs. (A) Signup and view all the answers

What is the main purpose of the PAYGO rule established by the Budget Enforcement Act of 1990?

To ensure that tax cuts and increases in entitlement spending are offset by other budgetary changes. (C) Signup and view all the answers

What is the main difference between the Gramm-Rudman-Hollings Act and the Budget Enforcement Act of 1990?

The Gramm-Rudman-Hollings Act used fixed deficit targets, while the Budget Enforcement Act focused on caps on annually appropriated spending and a PAYGO rule. (B) Signup and view all the answers

What is the primary purpose of the appropriations process as discussed in the text?

To control the level of spending for government agencies. (B) Signup and view all the answers

Study Notes

Legislative Process

The Declaration of Independence was in 1776
The Articles of Confederation was in 1781
The principle of separation of powers was created to prevent tyranny
The US Constitution was in 1789
The Constitution is a set of general principles, which are used to create laws and codes
The legislative process begins when a bill is introduced and ends with it being signed into law

Article I - Legislative Branch

Congress has power to collect taxes, pay debts, and provide for the common defense
Congress has power to borrow money
Congress has power to regulate commerce with foreign nations, among the states, and with Native American tribes
Congress has power to raise and support armies, navies, and a militia
No money appropriation is for longer than two years

Congress

Representatives serve districts and are required by the Constitution to initiate revenue bills, like tax increases.
Any revenue bills, by tradition, are also initiated in the House of Representatives

Bills

A bill is a legislative proposal, either public or private
Public bills are the most common type
Private bills affect specific individuals or groups
Both public and private bills are numbered in the same sequence

Joint Resolutions

Joint resolutions can originate in either the House of Representatives or the Senate
Joint resolutions follow the same procedure as bills
Joint resolutions are used to propose amendments to the Constitution

Concurrent Resolutions

Concurrent resolutions deal with matters affecting both the House of Representatives and the Senate
Concurrent resolutions are signed by the Clerk of the House and Secretary of the Senate

How a Bill Becomes a Law

Public hearings are held where committee members hear witnesses
A transcript of testimony is made available
After hearings, a markup session is held where the committee studies viewpoints presented
The committee votes to accept or reject amendments to the bill
Proposed bills can be voted on at the subcommittee level and/or full committee level
The proposed bill is then forwarded to the full committee

Presidential Action

The president has 10 days to act on a bill.
The president can approve or sign the bill into law
The president can allow a bill to become law without signing it
The president can veto a bill
Congress is adjourned and the president does not return the bill within 10 days, this is a pocket veto

Key Legislation

1921 Budget and Accounting Act
1974 Congressional Budget and Impoundment Control Act.
1990 Chief Financial Officers (CFO) Act
1993 Government Performance and Results Act (GPRA)
2010 GPRA Modernization Act (GPRAMA)

Principles Of Appropriations Law

Appropriations law begins with the Constitution
Congress has passed additional statutes addressing the 3 key principles: Purpose, Time, Amount

Basic Principle - Principle of Purpose

Funds can only be obligated and expended for the authorized purposes in appropriations acts or other laws

Principle of Time

Time limits are placed on appropriations to align executive branch activities with the session that authorized the appropriations
Obligations are only allowed during the designated time period

First Statutory Exception for Severable Services Contracts

DoD has authority for severable services contracts up to 12 months and across fiscal years
The obligation date determines the fiscal year

Second Statutory Exception: Multiyear Contracts

The government can contract for supplies/services for more than one year, but not more than five program years

Anti-deficiency Act (ADA)

It's a violation of the ADA to exceed authorized levels of obligation

Sequestration

Automatic federal spending cuts
The Balanced Budget and Emergency Deficit Control Act of 1985 created this

Budget Formulation Phase

OMB issues guidance
Organizations develop drafts
Agencies submit estimates to OMB
OMB holds hearings
President makes final decisions on agency budgets
President transmits budget to Congress

OMB Passback

The results of the OMB review of the agency budget
The letter is from the OMB director to the head of the agency
The document is called the passback

Concurrent Budget Resolution

A non-binding agreement between the two chambers of Congress
Sets overall federal spending levels
Guides the budget process for the next fiscal year

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Description

Test your knowledge on federal budget management and related acts, such as the GPRA Modernization Act and the NDAA. This quiz covers the roles, processes, and regulations that shape financial accountability in government agencies. Assess your understanding of strategic planning and performance reporting in the federal context.