Mod3 Flashcards
1
Q
Federal appropriations law can be categorized into which three topical areas?
A
Purpose, Time, and Amount (PTA)
2
Q
In the Department of Defense, final decisions of fiscal law questions are “officially” rendered by whom?
A
DoD General Counsel
3
Q
What are the basic types of budget authority used in the Federal Government?
A
Appropriations; Contract Authority; Borrowing Authority; Monetary Credits; Offsetting Collections and Receipts; Loan and Loan Guarantee Authority
4
Q
Annual appropriations remain available for new obligations for how long?
A
They normally remain available for new obligations for ONE fiscal year
5
Q
Operation and Maintenance (O&M) is an example of what type of appropriation?
A
Annual appropriation
6
Q
RDT&E is an example of what type of appropriation?
A
Multi-year appropriation
7
Q
Budget authority does not expire in what type of appropriation?
A
No-year appropriation
8
Q
Article 1, Section 9, of the U.S. Constitution gives the power to appropriate funds for operation the Government to which branch of the Government?
A
Legislative Branch (Congress)
9
Q
Which law established the House and Senate Budge Committees and the Congressional Budget Office (CBO)?
A
Congressional Budget Act of 1974
10
Q
What are the three tests which must be met for use of the Necessary Expense doctrine?
A
Must bear a logical relationship’ Not prohibited by law; Not funded elsewhere
11
Q
Who are determined to be accountable individuals in the Department of Defense?
A
Certifying and Disbursing Officers and Department Accountable Officials
12
Q
Who grants relief of liability to a certifying officer for erroneous or illegal payments in the Department of Defense?
A
The Defense Finance and Accounting Service
13
Q
What type of budgetary resources remains available for new obligations for more than one fiscal year?
A
Multi-year authority
14
Q
What type of budgetary resources remains available for new obligations until the purpose for which they were provided is carried out?
A
No-year authority
15
Q
What type of Congressional resolution can be thought of as a temporary appropriations act?
A
Continuing resolution (CR)
16
Q
If a Contracting Officer signs a contract in advance of an appropriation, what type of violation has occurred?
A
Antideficiency Act Violation
17
Q
What agency apportions funds for a working capital fund?
A
Office of Management and Budget (OMB)
18
Q
What does sequestration of federal funds mean?
A
Sequestration of federal funds concerns automatic cuts in federal spending that occur through the withdrawal of funding for certain government programs, such as has occurred resulting from the Gramm-Rudman-Hollings Act and the Budget Control Act of 2011
19
Q
What are the four major functions in DoD finance?
A
Entitlements, Payments, Collections, Control of Public Funds
20
Q
What is the primary organization in DoD with the responsibility for Finance requirements?
A
The Defense Finance and Accounting Service (DFAS)
21
Q
What is the acronym for disbursing office identification numbers?
A
Disbursing Station Symbol Numbers (DSSN)
22
Q
What three primary types of officials are accountable individuals in the DoD?
A
Certifying Officers, Disbursing Officers, Departmental Accountable Officials
23
Q
Debt collection includes collection of debts from what three groups?
A
Current Employees and Military Members; Former Employees and Military Members; Vendors
24
Q
What is the normal collection method for debts owed by active military members an civilian employees who are still in service?
A
Salary Offset
25
When collecting debts owed by vendors that have failed to properly respond to the demand letters, what is the next step?
Do Not Pay List
26
When in doubt about the proper use of an appropriation, what may the disbursing officer request from the OSD General Counsel on the propriety of the prospective payment?
An advance decision
27
To what, along with accountability, does certification equate?
Liability
28
Who, besides the disbursing officer, is likely to be held accountable for an improperly payment?
The Certifying Officer
29
If a civilian employee receives less than 90% of his or her normal biweekly pay and allowances, what may he or she request?
Special Pay
30
When a civilian employee moves from a job overseas to a job in the states, which organization pays for the Permanent Duty Travel?
The "losing" activity (the OCONUS activity)
31
Name the supporting documents required in the DoD Payment Package.
Contract; Invoice; Proof of Receipt; Acceptance Document
32
Name two key forms that provide accountability and control by Disbursing Officers?
Standard Form 1219, Statement of Accountability (monthly); DD Form 2657, Daily Statement of Accountability
33
Which individuals hold persona and pecuniary liability for the actions in financial transactions?
Certifying Officers, Disbursing Officers, Departmental Accountable Officials
34
How often does the disbursing officer need to inspect and document office security measures?
Semi-annually
35
The Budget and Accounting Act of 1921 established the GAO (Legislative Branch) to audit financial transactions of which branch of the Government?
Executive Branch
36
The GPRA requires agencies to define goals, set performance targets, and report what?
Actual Performance
37
Any enforceable agreement between an agency and a business concern of the acquisition of property or services is called what?
A contract
38
What term is used to describe Federal Government funds that have been paid but have not yet been identified to a specific organization?
Undistributed Disbursements
39
What term is used in SFFAS #4 to describe the process of accumulating, measuring, analyzing, interpreting, and reporting cost?
Managerial Cost Accounting
40
What are the two self-balancing sets of accounts in the U.S. Standard General Ledger (USSGL)?
Budgetary and Proprietary
41
In proprietary accounting, assets equal liabilities plus what?
Net Position
42
The aggregate amount of an entity's funds in the Treasury is in what account?
Fund Balance with Treasury
43
PP&E defines tangible assets with an estimated useful life of more than what number of years?
Two years
44
What is the Statement of Budgetary Resources equation?
Budgetary Resources = Status of Budgetary Resources
45
Which financial statement shows the components of the net cost of the reporting entity's operation for the period?
Statement of Net Cost
46
What DoD accounting entity maintains a central general ledger?
The Defense Finance and Accounting Service (DFAS)
47
Which three federal agencies established the FASAB?
The Government Accountability Office (GAO), the Department of Treasury, and the Office of Management and Budget (OMB)
48
What is the Federal law that specifically required existing CFO agencies to have financial statements that successfully pass a financial audit?
The Government Management Reform Act of 1994
49
What is the definition of a "successful financial audit?"
Achieving an unmodified audit opinion (an unmodified opinion denotes that the audit was adequate in scope and that the financial statements are present fairly and in all material respects and results of operations in conformity with generally accepted accounting principles applied on a consistent basis.)
50
In which of the four waves of the FIAR process would a DoD entity expect to have an auditable Statement of Budgetary Resources, to include its Fund Balance with Treasury?
Wave 2
51
Government audits provide essential elements of public accountability and what?
Control
52
Which standards generally apply to Federal Government audits?
GAO Standards or GAGAS
53
Who conducts, supervises, monitors, and initiates audits and investigations relating to DoD programs and operations?
Department of Defense Inspector General (DoDIG)
54
Which is the DoD document that provides policy for DoD audit and internal review offices to use for conducting audits of DoD operations, systems, programs, and functions?
DoDIG Audit Handbook
55
Auditors auditing with personal impairments violate which general standard?
Independence
56
How many hours of continuing professional education must an auditor complete every 2 years? What is the minimum number of hours that must be completed in any year of the 2-year period?
80 yours in 2 years; 20 hours minimum each year
57
The auditor is restricted access to essential data necessary to satisfy the audit objective. What type of impairment would this be?
External Impairment
58
Which type of audits are expected to determine whether:
The financial information is presented in accordance with established or stated criteria;
The entity has adhered to specific financial compliance requirements; and
The entity's internal control over financial reporting and /or safeguarding of assets is suitably designed and implemented to achieve the control objectives?
Financial Audit
59
Which types of audits are 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?
Performance Audit
60
Which audit phase involves gathering evidence and determining materiality and significance on the findings?
Review Phase
61
During which audit phase would the auditor select the most important areas for audit coverage?
Planning Phase
62
What document includes the audit objectives, findings, and (when appropriate) recommendations?
The Audit Report
63
What should be considered when evaluating the effectiveness of DoD audit organizations?
Audit benefits
64
What is the name of the GAO Standard that provides reasonable assurance that DoD auditors comply with applicable auditing standards and DoD audit policies?
Quality Control an Assurance
65
Inspection of office security, separate and secure storage of records and equipment, and restricted system access are examples of what kind of controls?
Internal Controls
66
If auditors are deterred from acting objectively and exercising professional skepticism by pressures, actual or perceived, from management of the entity being audited, what would this be called?
Threat to Auditor Independence
67
What are the four major functions in DoD finance?
The four major functions of DoD finance are:
Entitlement
Paying
Collecting
Controlling of Public Funds
68
What does PIAA stand for?
PIAA stands for Payment Integrity Information Act
69
What is the requisite cap (ceiling) for pay for all civilian personnel?
The maximum amount any civilian may be paid cannot be more than what is paid to the Vice President of the United States
70
At what rate is OT paid in the federal government?
Overtime is paid at NMT 1.5 times the rate of a GS10 step 1 or ones basic pay, whichever is greater, per 5 USC 5542
71
How many years are Employee Personnel Pay records maintained?
Employee Personnel Pay records are maintained for 56 years.
72
Is FMLA paid or unpaid leave and for how long?
FMLA aka Family Medical Leave Act WAS unpaid 12 weeks of leave however as of 01 October 202 it is now PAID leave for 12 weeks.
73
What additional entitlements are granted to 30% Disabled Veterans during their first year of employment in federal service?
During their first year of service in the federal government Disabled Veterans are granted 80 hours of paid sick leave to enable paid time for medical appointments.
74
What are the 10 items REQUIRED to be on an invoice, what is NOT one of those items and what is the required format?
The item NOT required to be on an invoice is the LOA, there is NO required format and the 10 items required are:
1-Name and address of contractor
2-Invoice date
3-contract #
4-vendor invoice #
5-description, quantity, unit of measure, unit price, and extended price of supplies delivered or services performed
6-shipping and payment terms
7-Taxpayer Identification Number
8-Banking information
9-contact name, title, and telephone #
10-other documentation required by the contract
75
How many days does one have to return the invoice legally if an error is found on that invoice?
One has 7 calendar days to return invoice if an error is found on that invoice.
76
What is a limitation concerning collection of a debt owed by a current military member or a civilian employee?
1 letter shall be sent explaining how much and why, if that amount is not paid or provisions for installments are not made then an offset against accrued pay will automatically be made at no more than 15% of paycheck.
77
According to the Statement of Federal Financial Accounting Concepts SFFAC No. 2, where should significant accounting principles and policies used by an organization be summarized?
According to the Statement of Federal Financial Accounting Concepts SFFAC No. 2, where should significant accounting principles and policies used by an organization be summarized in the footnotes
78
According to the Statement of Federal Financial Accounting Concepts SFFAC No. 2, where should information other than dollars be located?
According to the Statement of Federal Financial Accounting Concepts SFFAC No. 2, information other than dollars are provided in the required supplemental information.
79
What is the law that dictates the Purpose part of the ADA requirements?
31 USC 1301 dictates the Purpose part of the ADA requirements which govern every financial transaction.
80
What is the law that dictates the Time part of the ADA requirements?
31 USC 1502 dictates the Time part of the ADA requirements which govern every financial transaction
81
What are the laws that dictate the Amount part of the ADA requirements?
31 USC 1341 is the law that dictates the ADA part of the ADA requirements which govern every financial transaction. Additionally 31 USC 1342 created in 1884, prohibits voluntary services and 31 USC 1517 governs apportionment which are also an integral part of ADA requirements.
82
What are the 3 accounting systems within the federal government?
The 3 accounting systems within the government are:
Budgetary - flow and use of funds - Appropriation thru Outlay - Oldest types due to Article 1 section 9 of the Constitution
Proprietary (Financial) - Assets, Liabilities, Net Position, Revenue and Expenses - Importance surfaced due primarily to the CFO Act
Managerial Cost - Cost of Doing Business to provide goods and services - Due primarily to the Federal Financial Management Improvement Act of 1996
83
For Basic Accounting, what is the definition of Assets?
With basic accounting, the definition of Assets is 'something we own'
84
For Basic Accounting, what is the definition of Liabilities?
With basic accounting, the definition of Liabilities is 'something we owe'
85
For Basic Accounting, what is the definition of Net Position?
With basic accounting, the definition of Net Position is 'difference between assets and liabilities'
86
For Basic Accounting, what is the definition of Revenue?
With basic accounting, the definition of Revenue is money 'coming in'
87
For Basic Accounting, what is the definition of Expenses?
With basic accounting, the definition of Expenses is money 'going out'
88
What are the budgetary systems used from Appropriation thru Use?
The Event and then Budgetary, Proprietary or Cost?
Appropriation = Budgetary
Appropriation Warrant = Proprietary
Apportionment = Budgetary
Allotment = Budgetary
Further funding subdivisions = Budgetary
Commitment = Budgetary
Obligation = Budgetary
Receipt of item = Budgetary and Proprietary
Outlay = Budgetary and Proprietary
Use the delivered item = Proprietary and cost
89
What are the 3 tests for the necessary expense doctrine and what law dictates?
The law that dictates the Necessary Expense Doctrine is 31 USC 1301 or the Purpose Law - and the 3 tests are:
Must bear a logical relationship to the appropriation
Must not be prohibited
Must not be otherwise provided for within some other appropriation or statutory funds scheme
90
What are the provisions of the Constitution which provide the underpinning for the budget and funds control process?
The provisions of the Constitution which provide the underpinning of the budget and funds control process are:
Article 1, Section 7
Article 1, Section 8, Clause 1
Article 1, Section 9, Clause 7
91
What powers are given to whom for Article 1, Section 7?
Article 1, Section 7, empowers the congress to pass bills for the raising of revenue, and delineates how bill will pass from the Congress to the President for signature or veto.
92
What powers are given to whom for Article 1, Section 8, Clause 1?
Article 1, Section 8, Clause 1, empowers Congress to collect taxes.
93
What powers are given to whom for Article 1, Section 9, Clause 7?
Article 1, Section 9, Clause 7 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 bills.
94
What is the most authoritative source of information on the proper use of appropriated funds?
The most authoritative source of information on the proper use of appropriated funds is a treatise published by the GAO, office of the General Counsel, titled 'Principles of Federal Appropriations Law, better known as the 'Red Book'.
95
What are the 2 additional principles of Appropriations Law?
The two additional principles of Appropriations Law are:
Specific of general appropriations
Do not do indirectly what you cannot do directly.
96
What are the 3 main points of the Budget and Accounting Act of 1921?
The 3 main points of the Budget and Accounting Act of 1921 are:
The President is required to submit an annual budget to Congress for all three branches of the Federal Government.
This law created a budget office for the President (Bureau of the Budget then, changed to OMB in 1970)
This law established an oversight organization for the Congress (General Accounting Office then, changed to Government Accountability Office in 2004)
97
What are the 5 most important laws and regulations in federal financial management? In addition to what overarching laws?
The 5 most important laws and regulations in federal financial management are: (in addition to 31 USC 1341, 1342, & 1517 (ADA)
Budget and Accounting Act of 1921
Budget and impoundment Control Act of 1974 (PL 93-344 & PL 100-119)
Congressional Balanced Budget and Emergency Deficit Control Act of 1985 (PL 99-177)
31 USC 1300 & 1500 Codes
Budget and Impoundment Control Act of 1974 (PL 93-344) aka 2 USC 682-688
OMB Circular A-11
98
What does the Budget and impoundment Control Act of 1974 (PL 93-344 & PL 100-119) do?
The Budget and impoundment Control Act of 1974 (PL 93-344 & PL 100-119):
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)
99
What does the Congressional Balanced Budget and Emergency Deficit Control Act of 1985 (PL 99-177) do?
The Congressional Balanced Budget and Emergency Deficit Control Act of 1985 (PL 99-177) prescribes rules and procedures (including "sequestration") designed to constrain spending and receipts legislation. When originally enacted, the Act was commonly known as the Gramm-Rudman-Hollings Act. The Budget Enforcement Act (BEA) significantly amended this act, and many people refer to its requirements as the BEA requirements.
100
What do USCs 31 USC 1300 & 1500 Codes do?
31 USC 1300 & 1500 codes prescribe rules and procedures for budget execution. The overarching statutory requirement for the use, control, and accountability of funds are found here.
101
What does the Budget and Impoundment Control Act of 1974 (PL 93-344) aka 2 USC 682-688 do?
the Budget and Impoundment Control Act of 1974 (PL 93-344) aka 2 USC 682-688, contained into the eh same act as the Congressional Budget Act, prescribes rules and procedures under which the President may withhold appropriated amounts from obligation (ie deferrals and rescissions)
102
What is the purpose of OMB Circular A-11?
This circular provides instructions on preparation, submission, and execution of the budget. It also provides instructions on monitoring federal outlays, obtaining exemptions from GAO access to records, reporting requirements for unvouchered expenditures, closing accounts, and monitoring federal employment.
103
What is a fiduciary certifier?
A fiduciary certifier is responsible for use of appropriated funds as to the proper purpose, time, and amount, and for those US Codes pertaining thereto.
104
What is a Pecuniary Certifier?
A Pecuniary Certifier is:
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 requirements.
105
What does fund certification entail?
When a fund certifying official certifies that the public's funds for which he/she has been entrusted, he/she is certifying that these funds are legal for use under the purpose, time, and amount restrictions placed on the use of these funds by congress.
An erroneous, willful, or knowing violation of this fiduciary responsibility may lead to an ADA violation
There is no relief from an ADA violation
106
What does Pecuniary responsibility convey?
Pecuniary responsibility conveys the responsibility of physical control of the monies entrusted to the care of an accountable official of the government.
Disbursing officers, cashiers, and collecting officers all have pecuniary responsibility for the monies entrusted to their care and will be held personally liable for any loss of theft of these funds.
Certifying officers will be held personally liable for any erroneous payments, resulting from their miscertification, from the second the erroneous payment is made
Relief can be granted for either a loss of cash or a miscertification when certain conditions are met. However, an accountable official possessing personal responsibility is presumed negligent when funds are missing or an erroneous payment is made and is thus presumed responsible for the loss of monies, unless/until he/she proves his/her innocence.
107
What are the three dimensions of budgetary resources?
The three dimensions of budgetary resources are:
Purpose,
Time
Amount
108
What is the USC concerning Purpose?
The USC concerning the Purpose dimension of Purpose, Time and Amount is 31 USC 1301
109
What is the USC concerning Time?
The USC concerning the Time dimension of Purpose, Time and Amount is 31 USC 1502
110
What is the USC concerning Amount?
The USC concerning the Amount dimension of Purpose, Time and Amount is actually 3 USCs which are 31 USC 1341, 31 USC 1342, 31 USC 1517
111
What is the general guideline of the Purpose Statute or 31 USC 1301?
The general guideline of the Purpose Statute or 31 USC 1301 is:
Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law
Simple, concise, direct
112
When was the purpose statute originally enacted?
The Purpose Statute, originally enacted in 1809, is simple, concise, and direct, yet leads to the greatest number of ADA violations.
113
What are the 3 types of time appropriations?
The three types of time appropriations are:
Annual authority
Multiple year authority
No-Year authority
114
What does annual authority mean?
Budgetary resources available for incurring new obligations for one fiscal year or less are classified as annual authority.
115
What does multi-year authority mean?
Budgetary resources that are available for new obligations in excess of one year are referred to as multiple year authority.
116
What does no-year authority mean?
Budgetary resources that are available for new obligations for an indefinite period (until the purposes for which they were provided are carried out) are referred to as no-year authority. No year authority, which does not expire, are often referred to as 'X' year because x appears in the appropriations symbol instead of a fiscal year.
117
What are the two types of amount classifications?
The two types of classifications of amount appropriations are
Definite - with terms like NTE - not to exceed
and indefinite - such as federal retirement, SS, the judgement fund.
118
What are the 5 types of general operating expenses?
The 5 types of general operating expenses are
Training - 5 USC 4109/4110
Travel - 5 USC 5702
Postage - 39 USC 3206 (a)
Books and periodicals - necessary expense doctrine
Miscellaneous - incident to the fed workplace - like civic, charitable, and similar community support involving limited use of agency resources and employee time, outplacement support, notary support and others
119
Concerning the purpose authority, what is one of the general prohibitions?
Appropriated funds are not to be used to purchase items that are deemed personal or to promote an individual, ie coins with the picture or name of an individual.
120
What is an incentive award?
The Government Employees Incentive Awards Act (5 USC 4503) authorizes an agency head to recognize the superior performance with awards of cash, time off, or merchandise, and to incur expenses determined necessary to enhance the recognition of the awardee.
121
What are 3 sources of spending restrictions?
The 3 sources of spending restrictions are:
Authorization Acts
Appropriations Acts
CG Decisions
122
What are the 3 tests of the Necessary Expense Doctrine and where is its origins?
The Necessary Expense Doctrine dictated by Comptroller General decision 619 on March 25, 1927 3 logical tests are:
Is there a logical relationship between the item and the appropriation
Is the item prohibited by law
is the item funded in any other appropriation
123
The Time part of purpose, time, and amount is dictated by?
The time part of the purpose, time, and amount of is 31 USC 1502,
The balance of a fixed-term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period.
124
What does Opinion of the Attorney General #288 (1870) state with concern to time?
Opinion of the Attorney General #288 (1870) states 'Congress has the right to limit its appropriations to particular times as well as particular objects, and when it has clearly done so, its will expressed in the law should be implicitly followed'
125
What are the two use of appropriations? And what are they?
The 2 basic uses of appropriations are obligations and expenditures. Obligations are legal reservations for which payments, or expenditures, will be made in the future. Expenditures are the cash payments made to liquidate an obligation. 31 USC 1502 states in part 'the balance of a fixed term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period....' so obligations made only during the term of the appropriation. The placing of time limits on appropriations allows the congress to revisit the purpose for which it had originally appropriated funds, reserving to itself the prerogative of revisiting an agency's use of funds and its activities.
126
What is the Bona Fine Needs rule?
The Bona Fide Needs rule is 'A fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in, or in some cases arising prior to but continuing to exist in, the fiscal year for which the appropriation was made' 33 Comp. Get. 57 (1953)
127
What does the bona fide needs rule affect?
The Bona Fide Needs rule is a test to determine when to obligate and for how much consumption or effort the obligation should cover.
128
Concerning inventory of supply, how would the bona fide needs rule be applied?
When considering the ordering of supplies at the end of the fiscal year the bona fide needs rule comes into play buying supplies for next FY using this FY funds. The supplies are needed to continue operations at a reasonable level and only those supplies necessary must be purchased. the Bona Fide Need occurs in the year the order is placed, not when the goods or services are delivered.
129
What are the 2 types of services?
The two types of services are severable (provides a finished product no matter when ie custodian services) and non-severable (will not be a finished product until culmination of contract ie construction)
130
What are permissible actions concerning appropriations prior to the start of the fiscal year?
If the appropriation act is enacted prior to start of the fiscal year for which the appropriation is being made, contracts may be entered into upon enactment and before the start of the fiscal year, provided the no payments or expenditures are made under them until the start of the fiscal year.
131
what is the 'subject to availability' clause?
The 'subject to availability' clause allows final negotiation of contract but prohibits contractor starting work ie incurring costs, until the start of the fiscal year. This also applies to the possibility of a CR for severable or non-severable contracts that cross FY.
132
Concerning termination of contracts - if the contractor defaults on a contract that was awarded in a prior year appropriation, the government may:
If the contractor defaults on a contract that was awarded in a previous FY and the funds are expired, the government may obligate same year funds previously obligated for a replacement contract for amount les, same or greater than originally obligated if:
Bona Fide Need still exists
Same or lesser scope of work
Replacement contract awarded in a timely manner
133
What is the USC and reasons for closing a no-year fund?
A no-year fund is governed by 31 USC 1555 and must be closed if:
The agency head or President determines its purpose has been fulfilled, and no disbursements have been made for 2 consecutive FY.
134
When and what changed concerning Appropriation life cycles?
The appropriation life cycle law changed in 1990
No M accounts
5 years in an expired status to liquidate
1% rule which is that if account is closed, adjustments and payments may be made from current or available appropriations up to 1% of unexpended balance of closed appropriation or currently available, which ever is lesser.
Same type of funds
135
What are the 3 USCs concerning the Amount part of Purpose, time and amount?
the 3 USCs concerning the Amount part of purpose, time and amount are 31 USC 1341, 1342, 1517
136
What are the 2 provisions of 31 USC 1341?
The 2 provisions of 31 USC 1341 are
An officer or employee of the US may not:
Make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation: or
Involve the government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law
137
What are the 5 forms of budget authority?
The 5 forms of budget authority are:
Appropriations
Contract Authority
Borrowing Authority
Offsetting Collections and receipts
Loan and Loan Guarantee Authority
138
What is Appropriations authority?
Authority in appropriations acts and other provisions of law provide authority to incur new obligations.
139
What is Contract authority?
Specific statutory authority to incur obligations in anticipation or in advance of either receipts or an appropriation of liquidating cash with which to pay the obligations.
140
What is Borrowing authority?
Authority granted to a federal entity to borrow ie from the treasury or through the issuance of promissory notes or monetary credits to other agencies or the public) and to obligate and expend the borrowed funds.
141
What is Offsetting Collections and Receipts authority?
This includes tax receipts, customs duties, fines, fees, penalties, reimbursements and revenue. The term 'collections' includes: (1) receipts, (2) reimbursements, and (3) refunds. Of these, offsetting receipts or reimbursements may offset either disbursements or the need for appropriations.
142
What is Loan and Loan Guarantee authority?
An authorization for an agency to pledge to pay a part or all of the loan principal and interest to a lender in the event of default by a third party borrower. The family housing portion of the Military Construction appropriation provides the authority to DoD to guarantee loans to vendors/contractors building and/or rehabilitating government quarters.
143
What are the 3 true types of earmarking and their meaning?
The 3 true fiscal law types of earmarking are:
Not to exceed - which is a maximum/ceiling
Not Less Than - which is a minimum/floor of funding
Exclusively for - which is a specific/fence around funding
144
What is the provision of the second statue applicable to ado violations which is 31 USC 1342?
The second statue applicable to an ado violation is 31 USC 1342 which states:
An officer or employee of the US government or of the District of Columbia government may not accept voluntary services for either government or employ personal services exceeding that authorized by law except for emergencies involving the safety of human life or the protection of property.
145
What are some applicable interpretations and decisions pertaining to 31 USC 1342?
The following interpretation and decisions pertain to 31 USC 1342:
If the compensation for a position is fixed by law, then an appointee may not agree to serve without compensation.
If the level of compensation is discretionary AND the compensation can be set at zero, THEN an appointment without compensation is permissible.
A service offered clearly and distinctly as gratuitous with a proper record made of that fact does not violate this statute against acceptance of voluntary service
Examples of statutorily authorized gratuitous services are: Red Cross Volunteers, Candy stripers, museum volunteers
146
The 3rd statute applicable to ADA violation is? And what does it say?
the 3rd statute applicable to ADA violations is 31 USC 1517 and it states:
An officer or employee of the US government or DC may not make or authorize an expenditure or obligation exceeding-
an apportionment
the amount permitted by regulations prescribed under section 1514(a) of this title.
147
What does Section 1514 (a) of 31 USC 1517 state?
Section 1514(a) of 31 USC 1517 requires the agency in control of an apportionment to prescribe, by regulation, a system of administrative control consistent with accounting procedures prescribed under law.
148
What are the 4 statutes that govern augmentation of appropriations?
Augmentation of appropriation is governed by 4 statutes:
31 USC 3302 - the miscellaneous receipts statue
31 USC 1301 - The purpose statute
18 USC 209 - Employee Compensation Prohibition from outside sources.
10 USC 2782 - Damage to real property
149
What specifically does 10 USC 2782 allow?
10 USC 2782 allows DoD to retain a payment for damage to real property, such as a guardhouse vice posting all monies received from party directly to the miscellaneous receipts account in treasury.
150
What are the 3 categories of gifts and donations?
The 3 categories of gifts and donations are:
Gifts to the US
Gifts to an Agency
Gifts to an Employee
151
What are the statutes that govern gifts to an employee?
Gifts to an employee are governed by:
18 USC 209 - Employee Compensation Prohibition from outside sources.
31 USC 3302 - Custodians of Money
10 USC 2601 - General Gift Funds
152
Is the name of the individual required to be included in the ADA violation notification?
No, per OMB Circular A-11, June 2015, which removed the requirement to name the individual responsible for a violation of the Antideficiency Act (section 145.7)
153
What are the 9 events that require an obligation? And where are they defined?
The 9 events that require an obligation are defined in 31 USC 1501 and are:
Contracts
Loans
Interagency Orders
Orders without Advertising
Grants and Subsidies
Pending Litigation
Employment & Travel
Public Utilities
Other Legal Liabilities
154
What is the concept of obligation?
The concept of obligation is central to fiscal law because of the principle that tan obligation must be charged against the relevant appropriation in accordance with the rules of the Purpose, Time, and Amounts statutes.
155
What is an obligation?
An obligation is 'a legal liability of the government for the payment of appropriated funds for goods and services ordered or received'
156
What is a common provision restriction for continuing resolutions?
Most continuing resolutions contain provisions restricting 'New Starts'. The term refers to the restriction on the use of funds for 'any project or activity for which appropriations, funds or other authority were not available' during the preceding FY. Additionally, if the an agency had funds available for a project the preceding year but failed to start the project, it is not a new start.
157
What is the Budget Enforcement Act of 1990?
The budget Enforcement Act of 1990 supplanted the fixed deficit targets entailed in the Gramm-Rudman-Hollings Act (aka 1987 Balanced Budget and Emergency Deficit Control Reaffirmation Act) and revised the budget control process. It created 2 new budget control processes, a set of caps on annually-appropriated spending, and the PAYGO process which was supposed to require offset of any tax cuts or increase in mandatory spending be offset by tax increases or cuts in mandatory spending.
158
What is a Certifying Officer Liable for? And when?
The Certifying Officer is liable for the FULL amount of any illegal or improper payment and is liable the moment an improper payment is made as the result of an erroneous certification.
159
When may an advance decision be requested?
A certifying officer, or disbursing officer has the statutory right to seek an advance decision from the DoD General Counsel regarding the lawfulness of any payment to be certified or made. This procedure will insulate against liability.
160
Concerning Fiscal Law terminology, what is an authorization?
Authorization is the basic substantive legislation enacted by Congress, which sets up or continues the legal operation of a federal program or agency either indefinitely or for a specify period of time or sanctions a particular type of obligation or expenditure within a program. Such legislation is normally a prerequisite for subsequent appropriations or other kinds of budget authority to be contained in appropriation acts. It may limit the amount of budget authority to be provided subsequently or may authorize the appropriation of 'such sums as may be necessary'
161
Concerning Fiscal Law terminology, what is 41 USC 6301?
41 USC 6301 aka the Feed and Forage Act authorizes the DoD to incur obligations in excess of available appropriation in procuring the furnishing clothing, subsistence, forage, fuel, quarters, transportation, or medical and hospital supplies not to exceed the necessities of the current fee. The authority does not include costs for military construction or military personnel. The authority of 41 USC 6301 cannot be used to circumvent the provisions of 31 USC 1517(a). DoD policy is that only DoD may authorize the use of 41 USC 6301.
162
Concerning Fiscal Law terminology, what are obligations?
Obligations are the amounts of orders placed, contracts awarded, services received, and similar transactions during an accounting period that will require payment during the same, or a future, period. Such amounts include payments for which obligations previously have not been recorded, and adjustments for differences between obligations previously recorded and actual payments to liquidate those obligations. The amount of obligations incurred is segregated into undelivered order and accrued expenditures - paid and unpaid (FMR Volume 1, Definitions)
163
Concerning Fiscal Law terminology, what is offsetting collections?
Offsetting collections are collections from the public that result from business-type or market-oriented activities and collections from other government accounts. These collections are deducted from gross disbursements in calculating outlays, rather than counted in governmental receipts. Some offsetting collections are credited directly to appropriation or fund accounts: others, called offsetting receipts, are credited to receipt accounts. The authority to spend offsetting collections is a form of budget authority (OMB, The Budget System and Concepts)
164
Concerning Fiscal Law terminology, what is an outlay?
Outlay is the issuance of checks, disbursement of cash, or electronic transfer of funds made to liquidate a federal obligation. Outlays also occur when interest on the Treasury debt held by the public accrues and when the government issues bonds, notes, debentures, monetary credits, or other cash-equivalent instruments in order to liquidate obligations. Also, under credit reform, the credit subsidy cost is recorded as an outlay when a direct or guaranteed loan is disbursed (GAO Budget Glossary)
165
Concerning Fiscal Law terminology, what is Sequestration?
Sequestration is the reduction or cancellation of the new budget authority; unobligated balances, new loan guarantee commitments or limitations; new direct loan obligations, commitments, or limitations; spending authority; and obligation limitations, OMB circular A-11, Section 100, provides additional guidance on sequestration requirements.
166
Concerning Fiscal Law terminology, what is a Treasury Warrant?
A Treasury Warrant is an official document that the Secretary of the treasury issues pursuant to law and that establishes the amount of monies authorized to be withdrawn from the central accounts that the Treasury maintains. Warrants for currently unavailable special and trust fund receipts are issued when requirements for their availability have been met (GAO budget Glossary)
167
What are the 4 major functions of finance?
The 4 major functions of finance are:
Entitlements (FMR Volumes 7, 8, 9, & 10
Payments (FMR Volume 5, Chapter 9: Disbursements)
Collections (FMR Volume 5, Chapter 8)
Control of Public Funds (FMR Volume 5, Chapter 5)
168
What is in DoD Financial Management Regulations (DoD FMR) Volume 1?
DoD FMR Volume 1 is General Financial Management Information, Systems and Requirements
169
What is in DoD Financial Management Regulations (DoD FMR) Volume 4?
DoD FMR Volume 4 is Accounting Policy and Procedures
170
What is in DoD Financial Management Regulations (DoD FMR) Volume 5?
DoD FMR Volume 5 is Disbursing Policy and Procedures
171
What is in DoD Financial Management Regulations (DoD FMR) Volume 6A?
DoD FMR Volume 6A is Reporting Policy and Procedures
172
What is in DoD Financial Management Regulations (DoD FMR) Volume 7A?
DoD FMR Volume 7A is Military Pay Policy and Procedures - Active Duty and Reserve Pay
173
What is in DoD Financial Management Regulations (DoD FMR) Volume 7B?
DoD FMR Volume 7B is Military Pay Policy and Procedures - Retired Pay
174
What is in DoD Financial Management Regulations (DoD FMR) Volume 8?
DoD FMR Volume 8 is Civilian Pay Policy and Procedures
175
What is in DoD Financial Management Regulations (DoD FMR) Volume 9?
DoD FMR Volume 9 is Travel Policy and Procedures
176
What is in DoD Financial Management Regulations (DoD FMR) Volume 10?
DoD FMR Volume 10 is Contract Payment Policy and Procedures
177
All DoD Financial Managers should know how to find information in what volumes?
All DoD financial managers should know how to find information in the DoD 7000.14R - Financial Management Regulations (DoD FMR)
178
What is the responsibility of the paying office concerning entitlements?
Prior to paying/disbursing government funds, the paying office must confirm eligibility to the entitlement.
179
What is the definition of entitling?
Entitling is legally establishing benefits to any person, business, or government unit meeting eligibility requirements established by law. For example, travel pay, military pay, civilian pay, contract/vendor pay, etc.
180
What is authorization during the entitlement process?
There are several types of 'authorizing' documents that become back-up documentation to a DO's disbursement of government funds, and some of these include travel orders, contracts, purchase requests, and training orders.
181
What must disbursement vouchers generally contain?
The disbursement voucher is the DO's authority to make payments for the government. Disbursement vouchers must contain complete and accurate data and use only forms approved by the Comptroller General of the United States. Contents of disbursement vouchers and supporting documents may vary slightly depending on the type of disbursement and form used.
182
What must disbursement vouchers specifically contain?
A disbursement voucher must contain the following 5 elements:
Voucher heading and date - complete name and mailing address of paying do, date the voucher was prepared, DO voucher #, & info required in the 'paid by' or 'brief' block
Accounting Classification to be charged
Amount to be disbursed. ****The amount shall not be changed or altered in ANY way*****
Method of disbursement - EFT, Treasury Check, cash, or as a no-check/voucher for transfer
Payee
183
For a vendor payment what 4 documents MUST accompany the disbursement voucher?
The vendor payment disbursement voucher must be accompanied by:
Copy of the contract
proper invoice
proof of receipt
proof of acceptance
184
While the DO is responsible for payment operations the certifying official / supporting offices:
While the DO is responsible for payment operations the certifying official / supporting offices have complete responsibility for assuring payments are proper.
185
The Certifying Official is responsible for what 3 things?
The Certifying Official who certifies a voucher is responsible for:
The information stated in the voucher and supporting records,
The computations in the voucher
The propriety of a proposed payment
186
Who is responsible for adherence to public laws?
As Stewards of public funds ALL personnel involved in payment authorization, computation, and certification must follow applicable laws.
187
According to PL 104-106 what is the definition of Certification?
According to PL 104-106 the definition of Certification is Certification = Accountability + Liability
188
The role of Certifying Officers (COs) and Disbursing Officers (DOs) have evolved over time, what are the 5 laws/executive orders that are most prevalent?
The 5 laws / executive orders that summarize the key events concerning COs / DOs are:
1912 - 31 USC 3512(a) prohibits DOs from preparing and auditing their own vouchers
1933 - Executive Order 6166 consolidated the DO function into the treasury dept. EO 6728 (1934) exempted the military from this centralization.
1941 - 31 USC 3325 (a) requires DO to disburse only in accordance with a voucher certified by an authorized certifying officer. Previously this requirement did not apply to the military.
1996-PL 104-106 National Defense Authorization Act of 1996 requires COs shall always be personally liable for any wrong payment of over-obligation of government funds resulting from negligent performance of duties. Internal control practices require that such officers be independent and organizationally separate from DOs whenever practical.
-Current DoD policy recognizes the distinct responsibilities of DOs, COs, and departmental accountable officials (DAOs)
189
Who are the designated Accountable officials in the disbursing process?
Accountable individuals include all personnel, whether military or civilian, who are departmental accountable officials (DAOs), Certifying Officers (COs), and Disbursing Officers (DOs)
The term also includes deputy disbursing officers, agents, cashiers, and other employees who by virtue of their employment are responsible for or have custody of government funds.
190
What is the definition of Departmental Accountable Official?
Departmental Accountable Officials are DoD military members and civilian personnel who are designated in writing and are not otherwise accountable under applicable law, who provide source information, data, or service (such as a receiving official, a cardholder, or an automated information system administrator) to a certifying or disbursing officer in support of the payment process.
These members are held pecuniarily liable for erroneous payments resulting from information, data or service they negligently provide to a certifying officer.
191
What law governs the certifying officer (CO)?
The law (31 USC 3325) requires Certifying Officers within the Department. These officers are pecuniarily liable for erroneous payments. Other DAOs are liable as well.
192
Where are designations recorded for DAO & CO?
Certifying Officers (COs) and DAO appointments are documented on DD Form 577 and both must accept the responsibility by countersigning the form at which they are advised to review and adhere to FMR V5CH5.
193
Disbursing Officers responsibilities are? They are appointed by? They may appoint who?
Disbursing officers, as accountable individuals, are responsible for disbursing money only as provided by vouchers that are the correct form, approved and duly certified by authorized certifying officers. The DO is not eligible for appointment as a certifying officer and may not appoint a certifying officer.
194
How long may a member who has died on active duty's family remain in quarters?
If a military member dies on active duty, their family members are entitled to remain in quarters or continue to receive quarters allowance for 365 days after the death of the member.
195
Concerning allotments; how many discretionary and non-discretionary allotments may a member have?
A member may elect up to 6 discretionary allotments and there is no limit on the non-discretionary allotments ie savings bonds, voluntary liquidation of indebtedness, pledges for certain charitable contributions, payment of delinquent income or employment taxes, and others listed in FMR V7A, CH 40.
196
What types of pay are 'premium pay' for federal civilians?
Premium pay consists of:
Overtime pay,
Night pay,
Holiday pay,
Sunday pay
the above is for those who are not in receipt of annual pay for standby duty, or administratively uncontrollable work, availability pay of law Enforcement Officers,
Environmental pay
Hazard pay
197
What is the restriction on the DoDs Federal Leave Sharing Program?
The program allows the voluntary leave transfer and bank programs however leave donors may NOT contribute directly to an immediate supervisor per DoD FMR V8, Ch5
198
What additional benefit does a disabled veteran have during their first year as a federal employee?
During the first year as a federal employee a 30% disabled veteran is entitled to an additional 80 hours of paid leave.
199
What part of the FMLA changed on 01 Oct 2020?
On 01 Oct 2020 the 12 weeks of leave for the FMLA or Family and Medical Leave Act went from unpaid to paid.
200
How many years are employee records retained?
Employee records are maintained for 56 years
201
For travel, what does 'variations authorized' mean?
The travel order must state 'variations authorized' and the mission must require it, then the traveler is permitted to:
deviate from the place(s) stated on the travel order
Change the days (max 7 depending on length of TDY)
even omit a location
can also authorize an administrative absence not chargeable to leave and for which per diem and transportation allowances are NOT paid. This is called 'Permissive/Administrative travel time'.
202
What is the form for travel voucher?
The travel voucher form is a DD Form 1351-2.
203
Who normally pays for the civilian PDT (permanent duty travel aka cg pcs) move?
All costs associated with a civilian PDT move are normally charged to the appropriation of the gaining activity. The exception to the rule that the gaining activity pay are:
Between agencies or DoD components when RIFs/Transfer or functions or movement under the DoD Priority Placement Program.
Within the same DoD Component when RIFs/Transfers, Base Realignment and Closure (BRAC) moves, from OCONUS to CONUS and from OCONUS to Hawaii.
204
What are the stipulations for advance payments to contractors?
Advance payments may be made if:
The contractor gives adequate security
It is determined that to provide the advance is in the public interest or the facilitates national defense
the advance is limited to no more than the unpaid contract price
205
What is constructive acceptance of a product?
Constructive acceptance is considered to take place under the Prompt Pay rules when acceptance documents have not been received in a timely manner. This happens within 7 days of delivery unless there is a disagreement over quantity, quality, or contractor compliance with a contract requirement.
206
What is the crux of the Prompt Payment Act of 1982?
The crux of the Prompt Payment Act of 1982 is to Pay vendors in a timely manner or pay interest.
207
Under the Prompt Payment rule what is one item that is expanded?
The prompt payment rule expands the options for making early payments if doing so is in the best interest of the government and promotes electronic payments. Agencies may accelerate payments for invoices under $2,500, payments to small businesses, payments related to emergencies, disasters, and military deployments. May also make payments within 15 days of receipt of a proper invoice without evidence that goods or services were received, in certain circumstances.
208
What is the interest rate for late payments and where is it found?
The interest rate is updated every six months and is set by the Secretary of the Treasury and published in the Federal Register as well as posted within the website for Treasury's Bureau of the Fiscal Service website.
209
What is a DSSN?
A DSSN or Disbursing Station Symbol Number is an identification number that indicates the authority to receive and disburse public civilian funds and issue checks on the Treasury of the US. A DSSN must appear on all documents and reports processed by that disbursing office.
210
Who issues a DSSN and what is it made up of?
DSSNs are assigned by the Treasury to DFAS and include:
The location code of each specific office
The disbursing office's identification
211
How are disbursements made?
Disbursements are made by Electronic Funds Transfer (EFT), check, or cash.
212
How are vendor payments made?
It is required by law that federal payments in the US, Puerto Rico, overseas locations, and afloat units (ships) be made by eft.
213
What are the very few limited exceptions to the 'eft required' payment method?
There are 3 exceptions:
Vendor express - Vendor Express electronically transfers money and remittance information through the ACH *Automated Clearing House network to commercial payees of federal agencies.
Government Purchase Cards - certifying officials will retain copies of all documents for 10 years.
Card Acquiring Services (CAS) - agencies can collect funds with little risk, get funds next day, settle funds, see daily account activity, reduce cash holdings, and eliminate bad checks.
214
What is a lockbox collection?
The General Lockbox Network (GLN) is a collection and processing service provided by certain financial institutions to help federal government agencies process paper checks and other remittance documents not related to taxes) that are received through the mail.
215
There are 4 types of Collection and Reporting Systems, they are:
There are 4 types of Collection and Reporting Systems, they are:
GOALS = Government On-Line Accounting Link System
IPAC - Intra-Governmental Payment and Collection
CARS - Central Accounting Reporting System
GTAS - Governmentwide TAS ATB System
216
What is the intra-governmental payment and collection - IPAC system and what are its components?
The Intra-governmental Payment and Collection - IPAC is a way for federal program agencies FPAs to transfer funds from one agency to another with standardized descriptive data. IPAC has 3 components:
IPAC
Retirement and Insurance Transfer System RITS
Treasury Receivable Accounting and Collection System - TRACS
For receivables outside DoD, IPAC is the preferred method of billing/collection. Almost 90% of IPAC transactions pertain to but/sell entries processed by federal agencies.
217
When considering debt collection, what are the 3 facets of the process?
Debt collection in the DoD is managed by:
The debt Collection Improvement Act of 1996 (PL 104-134) which requires debt to be turned in if more than 180 days to Treasury.
DoD FMR V16 - collection can be initiated as early as 60 days or referred to treasury in 120
Debt Collection - if the Debt Collection Officer is unable to collect the monies due to the government, then the debt is referred to the appropriate DFAS Debt Management Office DMO for collection.
218
If debt is referred to the IRS:
If debt is referred to the IRS 31 USC 3720(a) ch37 and 26 USC 6402 authorizes the IRS to collect past-due debts to federal agencies. The federal agencies send debts that they have been unable to collect but are still viable to the IRS for offset against tax refunds.
219
What is the DNP initiative?
OMB is responsible for the DNP - Do Not Pay - initiative - including establishing a working system for prepayment and pre-award review - and providing guidance, oversight, and assistance to agencies. Treasury hosts the working system, which is a web-based centralized data matching service that allows agencies to review multiple databases-such as data on deceased individuals and entities barred from receiving federal awards - before making payments. DNP is NOT a list of entities or people that should not be paid. DNP provides many data sources in one place - which agencies can use to verify eligibility.
220
When should who accomplish inspections on office security measures?
At least semi-annually - 2x per year, every 6 months - the DO shall make an inspection - and maintain a record of the inspection - to ensure that office security measures are in place. That inspection will cover 18 different aspects of security, as detailed in FMR v5ch3.
221
How should audit findings and other deficiencies be managed?
Managers should promptly evaluate and determine proper actions in response to known deficiencies, reported audit and other findings, and related recommendations.
222
What does the term 'out of balance' describe?
This term describes any irregularity in the financial accountability of a DOs account. They are categorized as physical losses either major (+$750 or any amount of fraud) and minor (>$750 or no evidence of fraud)
223
What does the term 'Check Issue Overdraft' mean?
This situation occurs when the amount of the check is greater than the amount reported by the DO or when the amount of the check is greater than the amount the payment voucher shows is due.
224
What form is used, name and #, for undeliverable checks and what does it do?
If not delivered within 60 days, will be processed on a Schedule of Canceled or Undelivered Checks, SF 1098 which credits the proceeds to the appropriation originally charged when the check was issued.
225
What is the process for payment of old checks?
All Treasury checks are payable up to one year from the date of issue.
226
Who can take care of a spoiled check?
Only the DO has authority to reissue a check.
227
What form must be used at the end of each day in a DMO?
A did 2657 must be prepared for each day that business is transacted, Daily Statement of Accountability.
228
What must be submitted to treasury NLT 3 working days after the end of the month?
The Statement of Accountability SF 1219 must be prepared for each DSSN and submitted to Treasury NLT 3 working days following the end of the month. (regardless of transaction status for that DMO)
229
What 3 types of accounting makes up the Federal Accounting Framework?
The Federal accounting Framework is made up by:
Budgetary accounting - aka fund control
Proprietary Accounting / Financial Accounting - aka Cost Management
Managerial Cost Accounting
230
There are 12 pieces of legislation concerning Accounting, what are the 2 that are the more important?
The 2 more important Accounting Legislations are:
1994 Government Management Reform Act (GMRA)
1996 Federal Financial Management Improvement Act (FFMIA)
231
What are the high points of the 1994 Government Management Reform Act (GMRA)?
The high points of the 1994 Government Management Reform Act (GMRA) are:
Required direct deposit of Federal wages, salary, and retirement payments
Amended the CFO Act to require a consolidated financial statement for the entire Executive Branch (prepared by the Treasury Department and audited by the GAO) beginning with FY 1997
Required 24 agencies (now known as the CFO Act Agencies) to submit audited financial statements
232
What are the high points of the 1996 Federal Financial Management Improvement Act (FFMIA)?
The high points of the 1996 Federal Financial Management Improvement Act (FFMIA) are:
Required systems to support the control of cost of Government
Required application of the accounting standards to produce consistency in financial reporting
Required financial management systems to support full-cost reporting and full disclosure of financial data.
233
What are the 4 primary government organizations that most affect the decisions of the DoD financial managers?
The 4 government organizations that most affect the decisions of DoD financial managers are:
OMB
GAO
Department of Treasury
FASAB
234
What is the role of OMB?
In conjunction with the CFO council, OMB conducts a continuous program for improving accounting and financial reporting in the federal government. The office of Federal Financial Management in OMB has primary oversight of this effort. These OMB efforts are in addition to assisting the President in preparing and overseeing the execution of the budget.
235
What is the role of GAO?
As an agent of Congress, the GAO audits the financial performance of the Executive Branch and is often referred to as the 'watchdog' of Congress. The GAO is primarily concerned with how Executive agencies/departments implement legislation enacted by Congress.
236
What is the role of the Department of the Treasury?
The Federal Government's banker. Treasury: manages the balances and flow of funds required to support the Government; formulates and recommends economic, financial, tax, and fiscal policies; serves as the financial agent of the US Government; enforces the law; manufactures coins and currency; compiles the consolidated Federal financial statement; and publishes the US Standard General Ledger, which feeds to all financial reports and makes the consolidated financial statements possible.
237
What is the FASAB?
The FASAB is the Federal Accounting Standards Advisory Board. Established in 1990 by the Comptroller General, the Secretary of the Treasury, and the Director of OMB, it is responsible for codifying the GAAP or Generally Accepted Accounting Principles for the Federal Government.
238
What is the mission statement for the FASAB?
The mission statement for the FASAB is:
…to recommend accounting standards for the Federal Government after considering the financial and budgetary information needs of congressional oversight groups, Executive agencies, and the needs of other users of Federal financial information.'
239
Where are the recommendations of the FASAB published?
The recommendations of the FASAB, which are GAAPs, are published as a 'statement of Federal Financial Accounting Concepts (SFFACs) or a Statement of Federal Financial Accounting Standards (SFFASs). These statements of Federal Financial Accounting Standards form the basis of the Federal GAAP.
240
What are the 3 different Accounting Standards Boards and who do they define the standards for?
The 3 different Accounting Standards Boards that define the GAAP or Generally Accepted Accounting Principles for the various entities are:
FASAB - Federal Accounting Standards Advisory Board
FASB - Financial Accounting Standards Board
GASB - Government Accounting Standards Board
241
Who does the FASAB define the GAAP for?
The FASAB was finally recognized as the body designated to establish GAAP for the Federal Government in October 1999 by the American Institute of Certified Public Accountants' (AICPA) governing council.
242
Who does the FASB define the GAAP for?
The FASB or Financial Accounting Standards Board issues standards of accounting, referred to as Generally Accepted Accounting Principles (GAAPs) for non-Governmental, not-for-profit entities.
243
Who does the GASB define the GAAP for?
The Government Accounting Standards Board or GASB issues Generally Accepted Accounting Principles for state and local governmental, not-for-profit entities.
244
What is SFFAC #1?
SFFAC or Statement of Federal Financial Accounting Concept #1 focuses on the uses, user needs, and objectives of Federal financial reporting, the objectives are: Budgetary Integrity, Operating Performance, systems and Control, and the concept of Stewardship, which links to the Preamble of the Constitution requirement of Promoting the General welfare.
245
How many chapters does the SFFAC have? And what do they do?
The SFFAC has 8 chapters that provide general guidance for developing the related SFFAS. It reflects the federal environment and the needs of the users of Federal financial information, both internally and externally.
246
What do the SFFAC state in Chapter 4 p 112?
In the SFFAC Chapter 4 para 112 it states: Federal financial reporting should assist in fulfilling the Government's duty to be publicly accountable for monies raised through taxes and other means and for their expenditure in accordance with the appropriation laws that establish the Government's budget for a particular fiscal year and related laws and regulations.
247
What/who do SFFAC consider the needs of?
The SFFAC consider the financial and budgetary informational needs of:
Citizens
Congressional oversight groups
Executive agencies
The needs of other users of Federal financial information
248
What is SFFAC #2?
SFFAC #2 discusses accounting and reporting entities, whether administrative, fiduciary, or another organizational structure as well as the content and form of an entity's financial report specifically how reporting can and should help meet the objectives defined in SFFAC #1. This concept is implemented by OMB A-136, Federal Financial Reporting requirements, which include prescribing the form and content of the financial statements.
It describes how significant accounting principles and policies used by an organization should be summarized in the footnotes as well as
Describing how info other than dollars are provided in the required supplemental information.
249
What is SFFAC #4?
SFFAC #4 is 'Intended audience and qualitative characteristics for the consolidated financial reports of the US government.' which are who it considers the needs of.
250
What is SFFAC #6?
SFFAC #6 is Distinguishing basic information, required supplemental information, and other accompanying information. #6 in 2009 amends #2 to discuss a process and factors the board considers when deciding whether the information should be considered basic information, required supplementary information (RSI) or other accompanying information (OAI). Discussing each of these categories may help those engaged in federal financial requirements to better understand the nature of the information being communicated and their importance to the financial reporting objectives.
251
What are the 3 SFFAS that deal with PP&E or Property, Plant & Equipment?
The 3 SFFAS that deal with PP&E are:
#6 - Accounting for PP&E
#23 - Eliminating the Category National Defense PP&E
#50 - Establishing Opening Balances for General PP&E: amending SFFAS 6, 10, 23 and rescinding SFFAS 35
252
What is the DoD Financial Management Policy?
The DoD Financial Management Policy is DoD 7000.14R
253
What is DoD 7000.14R Volume 1?
General Financial Management Information, Systems and Requirements. It promulgates the DoD Financial Management System Principles of: Usefulness, Timeliness, Reliability and Completeness, Comparability and Consistency, Efficiency and Economy, Costs Benefit, Flexibility and Adaptability, Materiality, and Relevancy.
254
What is DoD 7000.14R Volume 3?
Budget Execution (Availability and Use of Budgetary Resources)
255
What is DoD 7000.14R Volume 4?
Accounting Policy and Procedures
256
What is DoD 7000.14R Volume 6A?
Reporting Policy and Procedures
257
What is DoD 7000.14R Volume 6B?
Form and Content of DoD Audited Financial Statements
258
What is DoD 7000.14R Volume 9?
Travel Policy and Procedures
259
What is DoD 7000.14R Volume 11A?
Reimbursable Operations, Policy and Procedures
260
What is DoD 7000.14R Volume 11B?
Reimbursable Operations, Policy and Procedures - Working Capital Funds (WCF)
261
What is DoD 7000.14R Volume 13?
Nonappropriated Funds Policy and Procedures
262
What is DoD 7000.14R Volume 14?
Administrative Control of Funds and Antideficiency Act Violations
263
What is DoD 7000.14R Volume 15?
Security Assistance Policy and Procedures
264
What is DoD 7000.14R Volume 16?
DoD Debt Management
265
What are the 4 types of funds?
The 4 types of funds are:
General Fund
Special Fund
Public enterprise fund
Intragovernmental fund
Trust fund
Trust revolving fund
Deposit fund
Clearing accounts
266
What is the definition of a General fund?
General funds are the greater part of the budget and record receipts not earmarked by law for a specific purpose, such as almost all income-tax receipts.
267
What is the definition of a special fund?
Special funds consist of receipt accounts for federal fund receipts that laws have earmarked for specific purposes and associated appropriation accounts for the expenditure of the earmarked receipts.
268
What is the definition of a Public enterprise fund?
Public enterprise funds are revolving funds used for programs authorized by law to conduct a cycle of business-type operations, primarily with the public, in which outlays generate collections.
269
What is the definition of a Intragovernmental fund?
Intragovernmental funds are revolving funds that conduct business-type operations primarily within and between government agencies. The budget records the collections and the outlays of revolving funds in the same account.
270
What is the definition of a Trust fund?
Trust funds account for the receipt and expenditure of monies by the government for carrying out specific purposes and programs in accordance with the terms of a statute that designates the fund as a trust fund (such as the highway trust fund) or for carrying out the stipulations of a trust agreement where the nation is the beneficiary (such as any of the several trust funds for gifts and donations for specific purposes)
271
What is the definition of a Trust revolving fund?
Trust revolving funds are trust funds credited with collections earmarked by law to carry out a cycle of business-type operations. The fed budget meaning of the term 'trust' as applied to trust fund accounts differs significantly from its private-sector usage. In the private sector, the beneficiary of a trust usually owns the trust's assets, which are managed by a trustee who must follow the stipulations of the trust. In contrast, the federal government owns the assets of most federal trust funds and it can raise or lower future trust-fund collections and payments, or change the purposes for which the collections are used, by changing existing laws. There is no substantive difference between a trust fund and a special fun, or between a trust-revolving fund and a public-enterprise revolving fund.
272
What is the definition of a Deposit fund?
The government does act as a true trustee for some funds. For example it maintains accounts holding proceeds of sales of lost, abandoned, or unclaimed personal property, withheld allotment of compensation for payment of employee organization dues, and cooperative research and development-project funds. The government accounts for such funds in deposit funds, which are not included in the budget.
273
What is the definition of a Clearing account?
Although technically not a type of fund, clearing accounts are used to temporarily account for transactions that you know belong to the government but you cannot match to a specific receipt or expenditure account.
274
What are the types of Defense Funds?
The types of Defense Funds are:
Appropriated funds
Reimbursable funds
Revolving funds
Trust funds
Nonappropriated funds
275
What are some examples of DoD Trust funds?
Trust funds are held in trust for use in carrying out specific purposes and programs in accordance with a trust agreement or statute. Some examples are:
Military Retirement Trust Funds
Foreign Military Sales Trust Funds
276
We know annual, multi-year, no-year, but what are permanent (indefinite) appropriations?
Permanent (indefinite) appropriations are funds covered by basic laws that allow the Secretary of the Treasury to pay without further enactment by Congress. Examples are interest on the debt, Federal retirement, and Social Security, and the Judgement Fund. No-Year Appropriations are working capital funds.
277
What does a commitment normally require and what does it relate to?
A commitment normally requires a signature of an official responsible for administrative control, and relates to the 'fiduciary certification' discussed in Module 3, comp 1 (fiscal law)
278
what is the USSGL?
The USSGL is the United States Standard General Ledger.
279
Concerning the USSGL what are the account codes?
The USSGL account codes are:
1000 Assets
2000 Liabilities
3000 Net Position
4000 Budgetary
5000 Revenues and Financing Sources
6000 Expenses
7000 gains and losses
8000 Memorandum
280
For use with the USSGL what is the title and 'normal' balance of the account code 1000?
According to the USSGL the title and 'normal' balance of account code 1000 is Assets and it is a Debit
281
For use with the USSGL what is the title and 'normal' balance of the account code 2000?
According to the USSGL the title and 'normal' balance of account code 2000 is Liabilities and it is a Credit
282
For use with the USSGL what is the title and 'normal' balance of the account code 3000?
According to the USSGL the title and 'normal' balance of account code 3000 is Net Position and it is a Credit
283
For use with the USSGL what is the title and 'normal' balance of the account code 4000?
According to the USSGL the title and 'normal' balance of account code 4000 is Budgetary and it is both credit and debit
284
For use with the USSGL what is the title and 'normal' balance of the account code 5000?
According to the USSGL the title and 'normal' balance of account code 5000 is Revenues and Financing Sources and it is a Credit
285
For use with the USSGL what is the title and 'normal' balance of the account code 6000?
According to the USSGL the title and 'normal' balance of account code 6000 is Expenses and it is a Debit
286
For use with the USSGL what is the title and 'normal' balance of the account code 7000?
According to the USSGL the title and 'normal' balance of account code 7000 is Gains and Losses and it is both credit and debit
287
For use with the USSGL what is the title and 'normal' balance of the account code 8000?
According to the USSGL the title and 'normal' balance of account code 8000 is memorandum and it is not a credit or debit it is n/a
288
What is the budgetary accounting equation?
The budgetary accounting equation is:
Resources = Statues of Resources
289
What is the fund balance with treasury?
The fund balance with Treasury is the aggregate amount of funds an entity has at the Treasury to make expenditures and to pay liabilities or to purchase assets, goods, and services. It is similar to a bank balance.
290
What is an undistributed disbursement?
Undistributed disbursement are federal government funds that have been paid, but for whatever reason, have not yet been identified to a specific organization; therefore, they are placed in a suspense account.
291
What is an Advance?
Advances occur when an entity has given funds to others in anticipation of receiving a future benefit. Examples of advances include:
to contractors who are, or will be, doing work for the entity.
Travel advances paid to employees, both military members and civilians.
292
What is the acquisition value of a General PP&E (Property, Plant & Equipment)?
The acquisition value of a General PP&E asset consists of the amount paid for the asset plus transportation, installation and other related costs of obtaining the asset and preparing it for use.
293
Where should the acquisition value of General PP&E be recorded?
The acquisition value of General PP&E must be recorded in a property management system, which is a subsidiary system to the General Ledger.
294
what is a heritage asset?
A heritage asset is PP&E that is unique for one or more of the following reasons: historical, natural, cultural, educational significance; artistic importance; or significant architectural characteristics.
295
What is RSSI and who is required to report it?
(All federal agencies are required to report) RSSI is Required Supplementary Stewardship Information and includes substantial investments made by DoD for the benefit of the nation, but are not physical assets owned by DoD. Stewardship investments are comprised of:
1-federally-financed but not federally-owned physical property (nonfederal physical property)
2-Certain education and training programs (human capital
3-federally-financed research and development (research and development)
296
What is RSI and who is required to report it?
(All federal agencies are required to report) RSI is Required supplementary information (RSI) which consists of an estimated amount for Deferred Maintenance and Repairs. Also, RSI includes disaggregated budgetary information of the DoD-wide statement of budgetary resources. DoD disaggregates the information into the following appropriation/fund account groupings:
1-Military Retirement Benefits
2-Civil work
3-Military Personnel
4-Operations, Readiness, and Support
5-Procurement
6-Research, Development, Test, and Evaluation
7-Family Housing and Military Construction
297
What is OAI and who is required to report it?
(All federal agencies are required to report) OAI is Other Accompanying Information and consists of Management Challenges; Summary of Financial Statement Audit and Management Assurances; Improper Payments Information; and other Supporting Statements for Foreign Military Sales.
298
What is one of the most important business related efforts occurring?
One of the most important business related efforts within the DoD is focused on resolving its longstanding financial management weaknesses and ultimately achieving an unmodified (commonly referred to as a 'clean') opinion of its financial statements. There is currently a goal of FY27.
299
How does the DoD manage its improvements?
The DoD manages its improvement activities the Financial Improvement and Audit Remediation (FIAR) plan.
300
What does the FIAR provide?
The FIAR provides the strategy, methodology, and means for monitoring progress to achieve congress' audit readiness requirement.
301
What is the Government Management Reform Act of 1994?
The Government Management Reform Act of 1994 expanded on the CFO Act by requiring the 24 CFO Agencies to have audited financial statements.
302
What did the FFMIA also do?
The FFMIA or Federal Financial Management Improvement Act of 1996 added more specific financial system, financial management standardization, and internal control standard requirements to the previous acts
303
What was the lasting impact of the CFO act and follow on laws?
The lasting impact of the CFO act and follow on laws is that it transformed federal financial management from a 'backroom' function, out of sight and out of mind to most federal executives, to a 'boardroom' function, a key component of planning and decision-making at the executive level.
304
What is the strategic, long-term plan devised by DoD to become auditably successful?
The strategic, long-term plan devised but DoD to produce the required auditable financial statements is known as the Financial Improvement and Audit Remediation (FIAR) Program, formerly knows as the Financial Improvement and Audit Readiness Program.
305
What was one of the most important stipulations of the 2014 NDAA?
The 2014 NDAA National Defense Authorization Act (PL 113-66, Section 1003) requires DoD to ensure that its financial statements are validated as ready for audit by not later than September 30, 2017. This has been since revised to 2027.
306
What are the 4 waves of the FIAR Strategy? And what has been completed?
The 4 waves of the FIAR Strategy are:
Wave 1 - Appropriations Received Audit and is substantially complete
Wave 2 - Statement of Budgetary Resources (to include fund balance with Treasury Reconciliation)
Wave 3 - Mission Critical Asset Existence and Completeness Audit.
Wave 4 - Full Financial Statements Audit
307
What is one of the most costly challenge in Wave 4?
A significant and potentially very costly challenge in Wave 4 was to obtain auditable values for the large amount of existing DoD assets located worldwide, much of which was procured many years prior to passage of the CFO Act and other legislation mandating auditability.
308
What has the USD(C)/CFO done concerning FIAR and auditability?
The USD(C)/CFO asserted auditability of our FY18 financial statements in October 2017. To achieve this goal, the USD(C) has increased the level of urgency by expanding the eFIAR priorities and establishing critical capabilities that components must achieve to demonstrate audit readiness.
309
What does federal legislation require the audit of and who provides guidance?
Federal legislation requires the audit of federal organizations, programs, activities, and functions. Audit requirement, policy, and guidance are issued by Congress, GAO, OMB, and the President's Council on Integrity and Efficiency.
310
What are the different names of the Government Auditing Standards?
GAO Standards, aka the Government Auditing Standards, aka Generally Accepted Government Auditing Standards, aka GAGAS, aka yellow book.
311
What are the different standards of the Government Auditing Standards?
The different standards of GAGAS are:
Ethical Principles
General Standards for all Audits and Engagements
Filed Work Standards
Reporting Standards
Non-Audit Work (very small amount - 5-10%)
312
Who do the GAGAS apply to and who must follow the GAGAS?
The GAGAS apply to audits of government organizations, programs, activities, functions, and government assistance received by contractors, non-profit organizations, and other non-government organizations.
GAGAS must be followed by:
GAO - Government Accountability Office
IGS - Federal Offices of Inspector General
Other Federal Auditors, including Army, Navy, and Air Force audit groups
Many Military Internal Review (IR) groups
Non-Federal auditors when auditing federal organizations, programs, activities, and functions.
313
What are the general standards for audits and engagements?
The general standards for audits and engagements are:
Auditor Independence
Auditor Professional Judgement
Auditor Competence
Quality Control and Assurance
314
What is auditor independence?
In all matters relating to the audit work, the audit organization and the individual auditor, whether governmental or public, must be independent.
315
What is auditor independence comprised of?
Auditor independence is comprised of:
Independence of Mind - the state of mind that permits the performance of an audit without being affected by influences that compromise professional judgment, thereby allowing an individual to act with integrity and exercise objectivity and professional skepticism.
Independence in Appearance - the absence of circumstances that would cause a reasonable and informed third party, having knowledge of the relevant information, to reasonably conclude that the integrity, objectivity, or professional skepticism of an audit organization or member of the audit team had been compromised. Never any type of appearance of impropriety.
316
What are the 7 threats to auditor independence?
The 7 threats to auditor independence are:
Self-interest threat
Self-review threat
Bias threat
Familiarity threat
Undue influence threat
Management participation
Structural threat
317
What is the threat to auditor independence called the Self-interest threat?
The self-interest threat is the threat that a financial or other interest will inappropriately influence an auditor's judgment or behavior.
318
What is the threat to auditor independence called the Self-review threat?
The Self-review threat is the threat that an auditor or audit organization that has provided non-audit services will not appropriately evaluate the results of previous judgments made or services performed as part of the non-audit services when forming a judgment significant to an audit.
319
What is the threat to auditor independence called the Bias threat?
The Bias threat is that an auditor will, as a result of political, ideological, social, or other convictions, take a position that is not objective.
320
What is the threat to auditor independence called the familiarity threat?
Familiarity threat is that an aspects of a relationship with management or personnel of an audited entity, such as a close or long relationship or that of an immediate or close family member, will lead an auditor to take a position that is not objective.
321
What is the threat to auditor independence called the undue influence threat?
Undue influence threat is that external influences or pressures will impact an auditor's ability to make independent and objective judgments.
322
What is the threat to auditor independence called the Management participation threat?
Management participation threat is what results from an auditor's taking on the role of management or otherwise performing management functions on behalf of the entity undergoing an audit.
323
What is the threat to auditor independence called the Structural threat?
Structural threat is that an audit organization's placement within a government entity, in combination with the structure of the government entity being audited, will impact the audit organization's ability to perform work and report results objectively.
324
What are the 6 standards of Auditor Professional Judgment?
The 6 standards of Audit Professional Judgment are:
Exercise reasonable care and diligence
Maintain the highest degree of integrity, objectivity, and independence in applying professional judgment to all aspects of their work
Use professional judgment in determining the type of assignment to be performed and the standards that apply to the work
Carefully define the scope of work, the methodology for gathering information, the amount of evidence to be gathered, and the tests and procedures for work
Exercise professional skepticism and not be satisfied with less than persuasive evidence in examining a program
obtain reasonable, not absolute, assurance that material misstatements or significant inaccuracies will not occur.
325
What is the standard for Auditor Competence?
The GAGAS auditor standard for competency states 'The staff assigned to perform the audit or attestation engagement should collectively possess adequate professional proficiency for the tasks required'
326
How must auditors satisfactorily meet auditor competency requirements?
To meet auditor competency requirements, auditors must complete 80 hours of continuing professional education (CPE) ever 2 years, with a minimum of 20 hours each year, and at least 24 of the 80 hours being directly related to government auditing, the government environment, or the specific or unique environment in which the audited entity operates.
327
What are the responsibilities of the audit organization concerning auditor competence?
Audit organizations are responsible for ensuring that staff member COLLECTIVELY have the necessary knowledge, skill, and discipline needed to conduct each audit. In addition, organizations should have continuing education and training programs to ensure that their staff members maintain proficiency.
328
What are the 2 General Standards of Quality Control and Assurance?
The 2 general standards of quality control and assurance are:
System of Quality Control and Assurance (internal)
External Peer Reviews every 3 years
329
What is an attestation engagement?
An attestation engagement is when an Auditor is invited to com in and review processes.
330
Who is AICPA and what are SAS? and where are they included?
AICPA are the American Institute of Certified Public Accountants who created the SAS or Statements on Auditing Standards which the GAGAS incorporate by reference, including the introduction, objectives, definitions, requirements, and application and other explanatory material.
331
What is the main focus of the Yellow book or GAGAS?
The main focus of the yellow book or GAGAS is on the additional requirements, guidance, and considerations beyond the SAS statements.
332
What does the yellow book list?
The yellow book lists additional requirements for performing financial audits.
333
What is the framework of performance audits included in the yellow book?
The yellow book provides guidance in the form of a 'framework' for auditors that considers:
reasonable assurance (whither evidence is sufficient and appropriate)
the concept of 'significance' (similar to how financial auditors consider 'materiality'
Audit risk (the possibility that findings, conclusions, recommendations, or assurance may be improper or incomplete)
334
What does the Inspector General Act of 1978 do?
The inspector General Act of 1978 requires that federal inspectors general comply with the GOA Comptroller General's standards for audits.
335
What does the DOD IG do?
The DoD IG:
Provides leadership
Conducts, supervises, monitors, and initiates audits and investigations related to DoD programs and operations
Recommends policies designed to promote economy, efficiency, and effectiveness in DoD programs and operations.
Recommends policies for the prevention and detection of fraud and abuse in DoD programs and operations.
336
How many DoD internal audit organizations are there (in the book and in reality)?
There are 4 DoD internal audit organizations in the book and a 5th, they are:
DoD Office of Inspector General IG
Army Audit Agency
Naval Audit Service
Air Force Audit Agency
and passed in class is the DCAA or Defense Contract Audit Agency
337
Who do the heads of the DoD internal Audit organizations report to?
All DoD Central Internal Audit organizations report to the heads of their respective components. To ensure independence, DoD audit organizations should report directly to the Secretary of Under Secretary of the DoD Component.
338
Who additionally is responsible to Audit DoD organizations and who does it report to? And who is its head and how long does that person lead?
Audits of DoD are also performed by GAO, which is part of the Legislative Branch or Congress. The head of the GAO is the Comptroller General who receives a 15-year appointment.
339
All DoD internal audit organizations ensures what?
All DoD internal audit organizations ensures that:
Plans are established to carry out its responsibilities, including strategic planning requirements established by the Government Performance and Results Act (GPRA) of 1993, and Government Performance Results Modernization Act (GPRMA) of 2010
Written policies and procedures are provided to guide the audit staff
Policies and procedures should include receiving, controlling, screening, and assuring appropriate disposition of allegations involving waste, mismanagement, fraud, and abuse.
340
when can DoD contract auditors?
DoD can contract for non-federal auditors to perform audit services on DoD projects or entities when:
The expertise required to perform the audit is not available within the DoD audit organization
Temporary assistance is required to meet audit-reporting requirements mandated by law or DoD regulations.
341
What is the result of an attestation engagement?
In attestations engagements, auditors issue an opinion as the result of an examination; a conclusion as the result of a review; and, a report as the result of an agreed-upon procedures relating to a subject matter or assertion made by management.
342
What is the over all responsibility of the auditor during any type of audit?
Whether a financial audit, a performance audit or an attestation engagement is being performed, the auditor has responsibility to consider compliance.
343
what are some non-audit services that auditors may accomplish?
Auditors may perform services other than audits. For example, some auditors may do the following:
Develop methods and approaches to be applied in evaluating a new or a proposed program
Forecast potential program outcomes under various assumptions without evaluating current operations
Perform investigative work
344
Under the general standards of independence in the Yellow book or GAGAS there are 2 broad principles governing non-audit services, what are they?
Under the General Standard of Independence in the Yellow book / GAGAS, there are 2 broad principles governing non-audit services:
Non-audit services should not involve performing management functions or making management decisions
Audit organizations should not audit their own work or provide non-audit services in situations where the non-audit services are significant or material to the subject matter of audits.
This is aimed at avoiding any personal impairment to independence.
345
How many phases are there of a government audit?
There are 3 phases of a governmental audit.
346
What are the 3 phases of a governmental audit?
The 3 phases of a governmental audit are:
Plan
Review
Report
347
What is the plan phase of a governmental audit?
The plan phase of a governmental audit is to define the audit's objectives, scope and methodology to achieve those objectives.
348
What is the Review phase of a governmental audit?
The Review phase of a governmental audit is to gather evidence to support conclusions and recommendations
349
What is the Report phase of a governmental audit?
The report phase of a governmental audit is to prepare a written report on the results of the audit.
350
What are the 5 steps to the planning phase of the governmental audit?
The 5 steps of the planning phase of a governmental audit are:
Define the audit objectives
Develop the scope
Design the methodology
Consider materiality
Evaluate
351
When in the Planning phase of a governmental audit what does it mean to Define the audit objectives?
When in the planning phase of a governmental audit, to define the objectives you are define the audit objectives and identify what the audit is intended to accomplish.
352
When in the Planning phase of a governmental audit what does it mean to Develop the scope?
When in the planning phase of a governmental audit, to develop the scope - the boundary - of the audit that defines the subject matter the auditors will assess and report on. Scope includes the particular aspects of a program to be reviewed, necessary documents or records, the period of time reviewed, and locations that will be included.
353
When in the Planning phase of a governmental audit what does it mean to design the methodology?
When in the planning phase of a governmental audit, to design the methodology to provide sufficient, appropriate evidence to achieve the objectives of the audit.
354
When in the Planning phase of a governmental audit what does it mean to Consider materiality?
When in the planning phase of a governmental audit, to consider materiality and the effectiveness of internal controls in determining the nature, timing and extent of auditing procedures and in evaluating the results of those procedures.
355
When in the Planning phase of a governmental audit what does it mean to Evaluate?
When in the planning phase of a governmental audit, to evaluate whether the audited entity has taken appropriate, corrective action to address findings and recommendations from prior audits that are significant within the context of the audit objectives.
356
What is an example of a type of methodology?
An example of a type of methodology to provide sufficient, appropriate evidence would be for auditors to consider whether to audit all transactions within the scope of their audit or audit only a sample of the transactions.
357
What is an advantage of statistical sampling?
Statistical sampling has the advantage of enabling the auditor to project the sample audit results to the universe of transactions sampled. Audit results from judgmental sampling apply only to those items sampled.
358
What are the 2 facets to the review phase of a governmental audit?
The 2 facets to the review phase of a governmental audit are gathering evidence that is:
Sufficient (quantity)
Appropriate (quality - ie relevance, validity, and reliability)
359
What is a requirement when auditors obtain computer-processed data?
Auditors should obtain sufficient and appropriate evidence that computer-processed data are valid and reliable when those data are significant to the auditor's findings.
360
What must auditors do when data is provided by the audited agency?
when auditors use information gathered by officials of the audited entity as part of their evidence, auditors should determine what the officials of the audited entity or other auditors did to obtain assurance over the reliability of the information. The auditor may find it necessary to test management's procedures to obtain assurance or perform direct testing of the information.
Trust - but - verify
361
What are the types of opinions or results from governmental audits?
There are 4 types of opinions:
Unmodified (best)
Modified (exceptions)
Disclaimer (unable to render an opinion)
Adverse (material misstatement of fact and failure to follow GAAP)
362
What is the overarching form to the Report phase of the governmental audit?
The GAGAS requires auditors to prepare written or electronic audit reports that:
Communicate the results of the audit to management (and other as appropriate)
The report must make the audit information available for timely use by management
The report must comply with standards for form, content, and distribution.
363
What is the concept of an audit finding?
Auditors often tend to use the word finding to identify the result of what they found. Historically, this conceptual framework evolved under 'performance audits'. However, in the current version of the yellow book, GAO advocates that this same conceptual framework be used in financial audits.
364
How many formal and informal elements are there to an audit finding?
The elements of a traditional/classical finding are as follows:
Condition (What is? Ie circumstances found regarding an audit objective)
Criteria (what should be? Ie law, regulation, standard, best practices, etc.)
Effect (So what? Ie money wasted, people not served, etc.)
Cause (why? ie no training, policy not disseminated, etc.)
The 5th element is the auditors recommendation which addresses the cause. Auditee management is responsible to resolve audit findings and recommendations.
365
What may happen during an audit of internal controls?
Based on their assessment of internal control and the results of internal control testing, auditors may modify the nature, timing, and extent of their audit procedures. For example, poorly controlled aspects of a program have a higher risk of failure, so auditors may choose to focus their efforts in these areas.
366
What gives DoD the authority to create a 5 year severable contract and how can they fund it?
10 USC 2306 gives the DoD the authority to create a 5 year severable contract with a base year and 4 option years and DoD can fund all 5 from base year funds but prefers to do it year at a time.
367
When a contract is terminated for the convenience of the government, when is the only time that the funds from an expired appropriation be used?
If the agency is:
Directed by a court, a Board of Contract Appearls, or the GAO
if the KO has determined the original contract to be defective,
The KO may terminate the contract and re-award that contract if it also meets the 3 stipulations for a contract terminated for contractor default.
368
What is the 1% rule?
A note should be appended to each apportionment that states:
'Pursuant to 31 USC 1553(b), not to exceed 1Z5 of the total appropriations for this account, is apportioned for the purpose of paying legitimate obligations related to cancelled appropriations'
369
What is the code for the Miscellaneous Receipts Statute?
The Miscellaneous Receipts Statute is 31 USC 3302(b)
370
What is the code for the Employee Compensation Prohibition from outside sources?
The code for Employee Compensation Prohibition from outside sources is 18 USC 209
371
What are the penalties for ADA violations and the codes for them?
The administrative penalties for violation 31 USC 1341/1517 according to 31 USC 1349/1518 are administrative discipline (written reprimand, suspension from duty without pay, or removal from office) or the criminal penalties for violating 1341/1342/1517 according to 1350/1519 are up to $5,000 and/or up to 2 years.
372
What are the most important laws and regulations for Federal Government Financial Managers?
The following are some of the most important:
10 USC (Armed Forces)
Debt Collection Improvement Act of 1996 (PL 104-134)
Final Rule on Prompt Payment (5 CFR 1315)
Federal Acquisition Regulations (FAR)
Certifying Officer Legislation (PL 104-106, Section 913)
31 USC (Money and Finance) Sections 3325, 3528, 3529
373
What are the 3 main attributes for proper payments?
The 3 main attributes for proper payments are:
Right Recipient,
Right Amount,
Right Reason
374
What has been codified in 31 USC 3321?
31 USC 3321 concerns improper payments and codifies:
Improper Payments Elimination and Recovery Act of 2010 (PL 111-204)
EO 13520 Reducing Improper Payments from President Obama
Improper Payments Elimination and Recovery Improvement Act of 2012 (IPERIA)
Ammended by Bipartisan Budget Act of 2013
Federal Improper Payments Coordination Act of 2015 (FIPCA)
375
What is the Barring Act?
The Barring Act 31 USC 3702, requires the Government to receive a claim within 6 years from the time a claim accrues, other than for entitlements, This law applies to anyone, civilian, or military.
376
What are the main responsibilities for DFAS?
DFAS or Defence Finance and Accounting Service, which is run by the USD(C) is responsible to:
Account for DoD resources
Determine cost of operations
Report DoD financial position and cost of operations
377
What are the 4 objectives of Federal Financail reporting?
The 4 objectives of federal financial reporting suggests that reporting entities issue a financial report that would include:
Balance Sheet
Statement of Net Cost
Statemement of Changes in Net Position
Statement of Budgetary Resources
378
How does SFFAS #4 define Managerial Cost Accounting?
SFFAS #4 or Statement of Federal Financial Accounting Standards #4, defines Managerial Cost Accounting as the process of accumulating, measuring, analyzing, interpreting, and reporting cost.
379
What are the factors that must be used when computing Managerial Cost Accounting?
Managerial Cost Accounting uses the full costs of outputs in general purpose financial reports, including:
Direct Costs (Direct Labor and Materials)
Indirect Costs (Overhead)
Intra-entity Costs (General and Administrative)
Inter-entity Costs
-Cost of goods and services received from other entities
-Providing entity is responsible for providing cost data
-Recognition limited to material amounts
380
What is the DoD goal for current ratio?
The DoD goal for current ratio is 2:1 or better
381
What is the quick ratio?
A test of an entity's immediate solvency is made by comparing the sum of cash and aged accounts receivable, commonly referred to as the 'quick assets' (not including inventory) with current liabilities.
382
What is the 'current ration' or working capital ratio?
Total current assets divided by total current liabilities gives the ratio of current assets to current liabilities, variously referred to as the current ratio or the working capital ratio.
383
What is the DoD goal for quick ratio?
The DoD's goal for quick ratio is 1:1 or better
384
What is the acid test ratio?
The total of quick assets, when divided by current liabilities, gives the ratio of quick assets to current liabillities.
385
What does the FIAR define?
The FIAR The FIAR Methodology defines the key tasks, underlying detailed activities and resulting work products that all reporting entities should follow to become audit ready.
386
What did the Chief Financial Officers Act of 1990 (CFO Act) require?
The Chief Financial Officers Act of 1990 (CFO Act) required the following:
Fed agencies were to prepare financial statements which would be audited by the Comptroller General or Inspector General of the agency
Each of the 24 largest agencies/departments (CFO Agencies) were to create a CFO Position and vest its financial management functions in that position.
IN OMB a Deputy Director for Managment was created and represents the chief Government official responsible for financial management withing the Executive Branch of the Government.
387
What is auditing an essential element of?
Auditing is an essential element of public accountability and control.
388
What do the AICPA standards address for audits?
For financial audits, the AICPA (american Institute of Certified Public Accountants standards address:
Compliance with genterally accepted accounting principles (GAAP) or other principles
Consistence of application of accounting principles
Whether managements disclosures are reasonably adequate
The type of auditor opinion
389
How many reporting standards are there for attestation engagements?
For attestation engagements, the yello book incorporates 4 reporting standards from the AICPO and the GAO adds 5 more.
390
What is the DCAA?
The DCAA or Defense Contracting Auditing Agency is another audit organization within DoD and performs all necessary contract audits for the DoD and provides accounting and financial advisory services regarding contracts and subcontracts to all DoD components responsible for procurement and contract administration.
391
How do audit organizations select parts of government to audit?
Audit organizations select the areas for audit coverage by identifying:
Regulatory and statutuory requirements
Specific concerns of managemnt and Congress
High-Risk areas
392
What has influenced the overall audit plan for the federal government?
The planning process for the overall audit plan for the federal government has been influenced by the Government Performance and Results Act (GPRA) because it requires Federal agencies to be more effective in planning, budgeting, executing, evaluation and accounting for Federal programs.
393
What is the CFR for the TIME rule?
31 USC 1502
394
What is the CFR for PURPOSE
13 USC 1301
395
Boba Fide need occurs in which: the year the order is placed or when the goods or services delivered?
The year the order is placed.
