BUDGET EXECUTION - FMF1136

• | Page

BUDGET EXECUTION - FMF1136

UPDATED ACTUAL EXAM WITH CORRECT

SOLUTIONS.

Out of the two recommendations that the President makes in the budget request, which one becomes the basis for an Appropriation Act? - correct answer- Spending recommendations

Authorization Act - correct answer- An act of Congress that establishes or continues individual programs and establishes the rules for how they will operate. Authorizing legislation can recommend the maximum amount to be subsequently appropriated for these programs, as well as military end strength levels and training levels. It does not convey authority to obligate or expend funds

Department of Defense (DOD) portion of the President's budget is referred to the Armed Services committees (House Armed Services Committee (HASC) and Senate Armed Services Committee (SASC)). - correct answer-

DOD Appropriations Acts are typically effective for: - correct

answer- One year

• / 4

• | Page

An "appropriation account" is commonly referred to as an "Appropriation Act."? - correct answer- false. An appropriation account is commonly referred to as appropriation. An Appropriation Act is a statute that provides budget authority for Federal agencies to incur obligations and to make payments out of the US Treasury in specific amounts for specific purposes and within specified time frames

True or False? The "Purpose Statute" specifies that it is a fundamental principle of fiscal law that an appropriation available for a definite period may be obligated only to meet the legitimate needs of the fiscal year for which the appropriation is made. - correct answer- False. The "Purpose Statute", Section 1301(a) of Title 31 of the United States Code specifies, "Appropriations shall be applied to the objects for which the appropriations were made except as otherwise provided by law."

The Marine Corps' operation and maintenance is funded by: -

correct answer- An annual appropriation. The Marine Corps' operation and maintenance is funded by an annual appropriation. Such items as equipment maintenance, civilian personnel pay, travel and transportation, training, consumable supplies, recruiting and advertising, base operation, facility maintenance and minor construction are funded through this appropriation

• / 4

• | Page

Are supplemental requests part of the regular budget cycle? - correct answer- No. Supplemental requests are not part of the regular budget cycle or authority; they are considered "out-of- cycle."

Put the organizations below in the correct funds flow order. - correct answer- 1) Congress

2) OMB

3) DOD

4) ASN (FM&C) 5) Responsible offices

6) PAO

•After the President has submitted the budget, approval by Congress involves a two-track process for authorization (for legislative statutory changes and a funding outline approved) and appropriation (actual funds approved and any implementation guidance issued).

•The authorization bill falls under the jurisdiction of the House and Senate Armed Services Committees, and the appropriation bills fall under the jurisdiction of the Appropriations Committees of both the House and Senate.

•Authorizing legislation does not convey authority to obligate or expend funds. Such authority is contained in Appropriation Acts. - correct answer- 3 / 4

• | Page

•The final phase of the DON budget process entails the execution of appropriations by the DON after the President signs the authorization and appropriation bills.

•DON appropriations can be annual (one-year), multi-year, no- year, or combination type accounts.

•Certain operations of the DON are financed through the use of revolving funds, trust funds, non-appropriated funds, and management funds - correct answer-

•When an appropriation is not timely, the DON may receive funding through a Continuing Resolution Act, which limits spending to prior year levels, and may include other restrictions. - correct answer-

•When an additional funding need based on an emergency or military contingency arises, DON may receive additional funding through a supplemental appropriation. - correct answer-

•The basic funds flow for DON budget execution involves an apportionment from OMB to OSD, a release of funds from OSD to DON, and an allocation from DON to its PAOs. - correct answer-

• / 4