CDFM Module 3: Financial Management in DoD, Exams of Advanced Education

Download CDFM Module 3: Financial Management in DoD and more Exams Advanced Education in PDF only on Docsity! CDFM Module 3 Questions with Complete Solutions Latest Updates 2024 What are the three tests that must be met for use of the Necessary Expense doctrine? - correct answersMust bear a logical relationship Not prohibited by law Not funded elsewhere (p 3.1.17) Who grants relief of liability to a certifying officer for erroneous or illegal payments in the Department of Defense? - correct answersThe Defense Finance and Accounting Service (*DFAS*) (p. What type of budgetary resources remains available for new obligations for more than one fiscal year? - correct answersMulti-year authority (p. What type of Congressional resolution can be thought of as a temporary appropriations act? - correct answersContinuing Resolution (*CR*) (p. What agency apportions funds for a working capital fund? - correct answersThe Office of Management and Budget (*OMB*) (p. What is the acronym for disbursing office identification numbers? - correct answersDisbursing Station Symbol Numbers (*DSSN*) (p. What three primary types of officials are accountable Individuals in the DoD? - correct answersCertifying Officers (*CO*), Disbursing Officers (*DO*), Departmental Accountable Officials (*DAO*) (p. 2.2.21, 2.2.64) What is the normal collection method for debts owed by active military members and civilian employees who are still in service? - correct answersSalary Offset garnishing (p. When collecting debts owed by vendors that have failed to properly respond to the demand letters, what is the next step? - correct answersDo Not Pay List (p. 3.2.40) When in doubt about the proper use of an appropriation, what may the disbursing officer request form the OSD General Counsel on the propriety of the prospective payment? - correct answersAn Advance Decision (p. 3.2.12) When a civilian employee moves from a job overseas to a job in the states, which organization pays for the Permanent Duty Travel? - correct answersThe "*losing*" activity (the *OCONUS* activity) (p. 3.2.22) Name the supporting documents required in the DoD Payment Package? - correct answersContract Invoice Proof of Receipt Acceptance Document (p. 3.2.24) Name two key forms that provide accountability and control by Disbursing Officers? - correct answersStandard Form *1219*, Statement of Accountability (monthly) DD Form *2657*, Daily Statement of Accountability (p. 3.2.44) What term is used to describe Federal Government funds that have been paid but have not yet been identified to a specific organization? - correct answersUndistributed Disbursement (p. 3.3.39) The aggregate amount of an entity's funds in the Treasury is in what account? - correct answersFund Balance with Treasury (p. 3.3.39) Which three Federal agencies established the FASAB? - correct answersThe Government Accountability Office (*GAO*), the Department of Treasury, and the Office of Management and Budget (*OMB*) (p. 3.3.13) What is the Federal law that specifically required existing CFO agencies to have financial statements that successfully pass a financial audit? - correct answersThe Government Management Reform Act of 1994 (p. 3.4.5) Disbursing officers, cashiers, and collecting officers all have pecuniary responsibility for the monies entrusted to their case and will be held for any loss or theft of these funds. - correct answerspersonally liable (True/False) Relief can be granted for either a loss of cash or miscertification when certain conditions are met. - correct answersTrue What are the 3 dimensions of the availability of budgetary resources? - correct answersPurpose / Time / Amount Funds may be obligated and expended only for the *purposes* authorized in appropriations acts or other laws. - correct answersPurpose The period of *time* during which budgetary resources may be used incur new obligations is different from the period of time during which the budgetary resources may be used to incur expenditures. - correct answersTime Obligations and expenditures may not exceed the *amounts* established in law. Examples are interest on the debt, Federal retirement, social security, and the judgement fund. - correct answersAmount Appropriations control by purpose are part of what? - correct answers31 USC 1301 - Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law. The various purposes for which funds are authorized are found in general and specific authorization bills passed by and codified in the statues. - correct answersCongress The authorizes an agency head to recognize superior performance with awards of cash, time off, or merchandise, and to incur expenses determined necessary to enhance the recognition of the awardee. - correct answersGovernment Employee Incentive Awards Act (5 USC 4503) What are the 3 test for necessary expense doctrine? - correct answers- Logical Relationship - Not Prohibited by Law - Not Funded for Elsewhere Where is the necessary expense doctrine defined? - correct answers6 Comp. 619 (March 25, 1927) Appropriations control by Time are part of what? - correct answers31 USC 1502 - The balance of a fixed-term appropriation is available only for payment of expenses properly services are those for which the the Government receives something useful immediately upon the expenditure of funds or by the end of the fiscal year, e.g. routine maintenance, housekeeping services, and trash collection. services are those that cannot be separated into increments that will provide something useful at the end of the fiscal year, e.g. overhaul of a ship that takes two or more years or development of a software program that will result in a definite end product after more than one year of work. - incurred during the period of availability or to complete contracts properly made within that period. What are the 2 basic uses of appropriations? - correct answersObligations and Expenditures are legal reservations for which payments, or expenditures, will be made in the future. - correct answersObligations are the cash payments made to liquidate an obligation. - correct answersExpenditures A violation of the time code will results in? - correct answersADA What is the Bona Fide Needs Rules? - correct answersa Test to determine when to obligate and for how much consumption or effort the obligation should cover. When an agency maintains inventories of commonly used items, does the Bona Fide Needs Rule prevent maintaining legitimate inventories at reasonable levels? - correct answersNo Does the Bona Fide Needs Rules permit an obligation in one fiscal year and delivery in a subsequent fiscal year even when the production lead-time of the materials requires obligation in one fiscal year in order for the material to be available for installation in a later fiscal year. - correct answersYes The bona fide needs occurs in which year (when the order is placed or when the goods and services are delivered)? - correct answersWhen the order is placed Severable services are paid... - correct answersmonth to month The qualification to the rules on severable services is that the *12*-month contract can cross fiscal years as long as it is for no more than months. - correct answers12 What reference indicates the qualifications of a 12-month severable contract? - correct answers10 USC 2410(a) Training that begins in the following year can be charged to the current year if the Government must make: - correct answers1) a payment or deposit in the current year 2) the scheduling is beyond the Governments control 3) the time between obligation and performance is not excessive What is an important exception to the Bona Fide Needs Rules? - correct answersMulti- year service contracting authority The multi-year service contract authority permits the contracting up to how many years? - correct answers5, one year increments What 2 situations cause a change in contract scope? - correct answersOut-of-Scope In-Scope What happens if a contract modification exceeds the general scope of the original contract? - correct answersthe modification amounts to a new obligation and is chargeable to funds current at the time the modification is made. When an upward price adjustment is required in a subsequent year, if the answer to the question is yes, - correct answersthen a with-in scope price adjustment, which is requested and approved in a subsequent year will normally be charged against the appropriation current at the time the contract was awarded, even though the appropriation may now be expired When do agencies have to reimburse the Judgement Fund (current year funds used)? - correct answers1) Contract Disputes 2)No fear act 3)EEO Settlements & Claims What is it called when it becomes necessary to terminate a contract because the contractor defaults? - correct answersContractor Default What is it called when an agency voluntarily acts to reduce the scope of a contract or termination of the contract for its own convenience will not entitle the agency to obligate expired funds to issue a replacement contract. - correct answersConvenience of the Government Government may obligate same year funds previously obligated for a replacement contract for amounts less, same or greater than originally obligated if: - correct answers- bona fide need still exists - same or lesser scope of work - replacement contract awarded in a timely manner What are the types of appropriation lifes? - correct answers- Single Year - Multi-Year - No Year What are some of the interpretations and decisions pertaining to the Voluntary Services law? - correct answers- If the compensation for a position is fixed by law, then an appointee may not agree to service without compensation - If the level of compensation is discretionary AND the compensation can be set at zero, THEN an appointment without compensation is permissible - Example of statutorily authorized gratuitous services are (red cross, candy stripers, & museum volunteers) What does section 1514 require? - correct answersagency in control of an apportionment to prescribe, by regulation, a system of administrative control consistent with accounting procedures prescribed under law. What is the funding flow? - correct answersAppropriation> Apportionment > Allotment > Commitment (Certify) > Obligation > Outlay (Payment) What 3 statues cover the concept of augmentation? - correct answers- 31 USC 3302(b) The miscellaneous receipts statute - 31 USC 1301(a) the purpose statute - 18 USC 209 Employee Compensation Prohibition from outside sources When can the agency accept gifts? - correct answersMay accept contributions of - money or real property from any person, foreign Government, or international organization - services, supplies, real property, or the use of real property under a mutual defense or similar agreement What is a recent change to what an employee can accept as a gift? - correct answersEmployees can retain travel promotional items, such as frequent flyer miles earned while on official travel. What are the ADA Penalties - correct answersAdministrative - up to and including, when circumstances warrant, suspension from duty without pay or removal from office Criminal - *$5k fine, 2 years imprisonment, or both* ADA requires the reporting of an incident with how many days? - correct answers10 days of discovery The ADA preliminary review should be completed with how many weeks from the date of the initial discovery. - correct answers14 weeks Is there any relief from ADA? - correct answersIn view of the explicit provisions of 31 USC 1351, it has been held that there is no private right of action for declaratory, mandatory, or injunctive relief under the Anti- deficiency Act. A legal liability of the Government for the payment of appropriated funds for goods and services ordered or received. - correct answersAn Obligation What are the recording principles? - correct answers- must have an Obligation - over/under-recording of an obligations are equally improper - recording only evidences the obligation but does not create it Will recording of an obligation make it an legally binding obligation? - correct answersNot under statutory authority of 31 USC 1501 An appropriation act that permits an agency to continue operations of the previous year at a specific level of funding for a specific period of time. - correct answersContinuing Resolution (*CR*) What are the statutory exceptions permitting employees to conduct operations? - correct answersinvolving safety of life and protection of property (e.g. air traffic controllers) When funds were provided to begin a program or project in the middle of a fiscal year, you need to what? - correct answersannualize the funds to determine the current rate. If $1 billian was provided in an R&D appropriation last year and $750 million was obligated as of the end of the prior fiscal year, the amount of the appropriation under the continuing resolution would be? - correct answers$750 million Most continuing resolutions contain provisions restricting what? - correct answersnew starts Who is an Accountable Individual? - correct answersDepartmental Accountable Official (*DAO*) Certifying Officer (*CO*) Disbursing Officer (*DO*) Others An is any Government officer or employee who, by the reason of his or her employment, is responsible for or has custody of Government funds. - correct answersaccountable individual A is a Government officer or employee whose job is or includes certifying vouchers for payment and has no public funds in his/her possession. - correct answerscertifying officer A certifying officer has the statutory right (31 USC ) to seek and obtain an advance decision from the Comptroller General regarding the lawfulness of any payment. - correct answers3529 is an existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an entity that will ultimately be For DoD, the advance decision authority has been delegated to who? - correct answersDoD General Counsel Relief of Accountable Individual is covered by 31 USC & - correct answers3527 & 3528 What does the relief in 31 USC 3527 & 3528 cover? - correct answersPhysical Loss Illegal, Incorrect, or Improper Payments Relief from Physical Loss includes - correct answers- SECDEF determines that the official was carrying out official duties when the loss occurred - The loss was not the results of an illegal, improper, or incorrect payment - The loss was not the result of fault or negligence of the official Relief from Illegal, Incorrect, or Improper Payment includes - correct answers- Payment was not the result of bad faith or lack of reasonable care - The certification or payment was based on official records - No law specifically prohibited the payment - The US Government received value for the payment What happens if the SECDEF determines that all the ADA relief criteria has been met? - correct answersThe Comptroller General must grant relief and cannot overrule the determination by DoD What is the Statute of Limitations for ADA? - correct answers3 years for errors No time limit for fraud events occur or fail to occur. - correct answersContingency permits an agency to obligate funds in advance of appropriations. - correct answersContract Authority is the dollar amount of appropriations used to fund goods and services received or benefits or grants provided. - correct answersExpended Appropriations Expenditures = - correct answersOutlays Outflows or other using up of assets or incurrences of liabilities during a period from providing goods, rending services, or carrying out other activities related to an entity's programs and missions, the benefit from which do not extend beyond the present operating period. - correct answersExpense Entitlement Process includes what - correct answersEntitling Authorization Voucher Preparation Certification Prior to making a payment, certain documents must be by a designated official. - correct answersauthorized The disubursement voucher is the authority for DO's to make payments for the Government. - correct answersVoucher Preparation Vendor payments must be supported by what 4 documents? - correct answersA copy of the contract A proper invoice Proof of receipt An acceptance document What 5 elements are required in a voucher? - correct answersVoucher Heading and Date Accounting Classification to be charged Amount to be Disbursed Method of Disbursement Payee Certification is defined as - correct answersA certifying official who certifies a voucher is responsible for the information stated in the voucher and supporting records, the computations in the voucher, and the propriety of a proposed payment. What requires that COs shall always be personally liable for any wrong payment or over-obligation of Government funds resulting from his or her negligent performance of duties. - correct answers1996 - Public Law 104-106 (National Defense Authorization Act of *1996*) include all personnel, whether military or civilian, who are departmental accountable officials (DAOs), certifying officers, and disbursing officers. - correct answersAccountable Individuals are DoD military members and civilian personnel who are designated in writing and are not otherwise accountable under applicable law, who provides 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. - correct answersDepartmental Accountable Officials What law requires Certifying Officers within the Department? - correct answers31 USC 3325 A is responsible for information stated in a voucher, supporting documents and records, legality of a proposed payment under the appropriation or fund involved, issuing advice to departmental accountable officials, etc... - correct answerscertifying officer Certifying Officer and defense accountable official appointments are documented on what? - correct answersDD Form 577 as accountable individuals, are responsible for disbursing money only as provided by vouchers duly certified by authorized certifying officers. - correct answersDisbursing Officers Advance Decisions are defined as - correct answersAs representative of the US Treasury, the DO is charged with the safekeeping of public funds and is also pecuniarily liable for any improper payments resulting from negligent performance. If you aren't sure if something is ok or not, what should you do? - correct answersAsk for a decision to be made occurs when funds go to the wrong recipent, the recipient receives the incorrect amount of funds (including overpayments and underpayments), documentation is not available to support a payment, or the recipent uses funds in an improper manner. - correct answersImproper Payments Calculation of Pay is always calculated on a day Month - correct answers30 What is special pay? - correct answersMilitary members are entitled to special pay in many circumstances and is above and beyond basic pay. Military members are entitled to of leave per year - correct answers30 days Upon separation or retirement, they may sell back up to of unused leave during their career. - correct answers60 days Military members are entitled to above scheduled pay. - correct answersallowance What are the 4 allowances that military personnel may be entitled to? - correct answersSubsistence Quarters (housing) Clothing or Uniform Personal Allowance (True/False) A reservist that goes to annual training and has no dependents is entitled to partial allowance for housing. - correct answersTrue If a travel order contains the statement "variations authorized" and the mission requires it, the traveler is permitted to what? - correct answersdeviate from the place(s) stated on the travel order and to change the days at the locations listed or even omit a location. What claim form is used as a Travel Voucher? - correct answersDD Form 1351- 2 Questionable travel claims are those that.. - correct answersthe certifying officer questions the validity of. Doubtful travel claims are those in which... - correct answersthe traveler questions the decision of a certifying officer concerning an entitlement determination. What group helps resolve travel claim issues for civilians? - correct answersGSA Board of Contract Appeals Payments to Vendors are covered by what - correct answersFMR Volume 10 When can advance payments to contractors be made? - correct answers1) the contractor gives adequate security 2) it is determined that to provide the advance is in the public interest or facilitates national defense 3) the advance is limited to no more than the unpaid contract price. Oral travel orders can be given if... - correct answersthe mission requires it Invitational Travel Orders issued for NAF or Government Employees. - correct answersGovernment Employees What is included in a payment package? - correct answers1) A copy of the purchase order or contract 2)A proper invoice 3) Receipt of the product or service (DD 250) 4) Acceptance of the product or service What are the special conditions for payments to vendors? - correct answers- *Fast Pay* (when the contractor certifies the good were delivered) - *Pay and Confirm* (pay 1st and confirm after payment/for on-going relationships) - *Constructive Acceptance* (7-days to validate) The prompt payment act was enacted in what year? - correct answers1982 The prompt payment act is part of what code? - correct answers31 USC 3901 What does DCIA stand for? - correct answersDebt Collection Improvement Act (*1996*) The Debt Collection Improvement Act of 1996 did what? - correct answersCircular was revised to reflect the increased use of electronic commerce in the Federal Government and the private sector and to reflect the requirements. Agencies may accelerate payments under what conditions? - correct answers- Invoices under $2500 - payments to small businesses payments related to emergencies - disasters - military deployments The interest rate is updated every and is set by the Secretary of Treasury and published in the Federal Register as well as posted at the Treasury's web site. - correct answerssix months What *code* gives DoD statutory authority to establish offices to perform disbursing functions in conjunction with the Department of the Treasury. - correct answersUS Code, Title 10 What does DSSN stand for? - correct answersDisbursing Station Symbol Number What is Disbursing Station Symbol Number? - correct answersis an identification number that indicates the authority to receive and disburse public civilian funds and issue checks on the Treasury of the United States. DSSNs are assigned by the Treasury to DFAS and include: - correct answers- The location code of each specific office - The disbursing office's identification What does FMS stand for? - correct answersFinancial Management Service The Treasury Financial Management Service (FMS) of the Department of Treasury is responsible for what? - correct answersmanaging the Government's daily cash position What are considered Large Disbursement? - correct answers- $50 million or more in a single transactions (disbursement w/ in 3 business days) - $500 million or more (disbursement w/ 5 business days) Electronic Funds Transfer (EFT) include what? - correct answers- Vendor Express - Government Purchase Cards - Plastic Card Collections - Lockbox Collections What are the types of collections? - correct answersReceipts / Reimbursements / Refunds $10k Vendor Inv DT: March 8 / Received on March 12 Inv Term: 1/10 Net 30 Dt Supplies Received: March 6 / Accepted on March 7 1) What is the Date for Making a Discount Payment? 2) How much would the discount payment be? 3) What is the due date for a net payment? - correct answers1) March 18 2) $9900 3) April 11 PO Dt: June 15 / PO Terms: 2/10 Net 30 / $ of Inv: $20k Vendor Inv DT: July 17 / Received on July 18 Inv Term: 2/10 Net 30 Dt Supplies Received: July 15 / Accepted on July 21 1) What is the Date for Making a Discount Payment? 2) How much would the discount payment be? 3) What is the due date for a net payment? - correct answers1) July 27 2) $19,600 3) August 20 The United States Constitution states... - correct answers"No Money shall be drawn from the Treasury, but in Consequence of Appropriation made by Law; and a regular Statement of Account of the Receipts and Expenditures of all public Money shall be published from time to time." The Chief Financial Officers' Act (CFO Act) required audited financial statements for the business activities of the designated CFO agencies. - correct answers24 Federal Financial Statements include - correct answers- Balance Sheet - Statement of Net Cost - Statement of Change in Net Position Assets = - correct answersLiabilities + Net Position 1921 Budget and Accounting Act established - correct answersthe GAO to audit the Executive Branch 1949 Federal Property and Administrative Services Act established the - correct answersGSA 1950 Accounting and Auditing Procedures Act: - correct answers- required apportionment, allocation systems; - expanded anti-deficiency, required reporting; - mandated principles/standards; and - established Joint Financial Management Improvement Program (JFMIP) 1982 Prompt Payment Act required - correct answersagencies to pay bills when due or pay interest and to not pay in advance unless advantageous to the governments. 1982 Debt Collection Act, as amended by the Debt-Collection Improvement Act of 1996, - correct answersstrengthened ability to collect receivables from people who owe the government. 1982 Federal Managers' Financial Intergrity Act (FMFIA) required - correct answersagencies to set up an Internal Control Program and report annually any aspects of their accounting systems not conforming to GAO's principles/standards. 1990 Chief Financial Officers (CFO) Act required - correct answersappointment of a Chief Financial Officer in 24 major Federal agencies and required audited financial reports for business operations. 1993 Government Performance and Results Act (GPRA) as amended by the GPRA Modernization Act of 2010 (P.L. 111-352) required agencies to: - correct answers- Define long-term goals; - Set performance targets; and - Report actual performance 1994 Government Management Reform Act (GMRA) - correct answers- 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; and - Required 24 agencies to submit audited financial statements 1996 Federal Financial Management Improvement Act (FFMIA) - correct answers- Required systems to support the control of cost Government; - Required application of accounting standards to produce consistency in financial reporting; and - Required financial management systems to support full-cost reporting and full disclosure of financial data 2002 Accountability of Tax Dollars Act required - correct answerseach covered Executive Branch Agency to prepare and submit audited financial statements. 2010 National Defense Authorization Act (PL 111-84, Section 1003) required - correct answersthat DoD financial statements be validated as ready for audit by 30 September 2017. In conjunction with the CFO council, conducts a continuous program for improving accounting and financial reporting in the Federal Government. - correct answersOffice of Management and Budget (*OMB*) As an agent of Congress, the audits the financial performance of the Executive Branch and is often referred to as the watchdog of Congress. - correct answersGovernment Accountability Office (*GAO*) SFFAC No. 5 - correct answersElements of *Accrual*-Basis Financial Statements and Basic Recognition Criteria SFFAC No. 6 - correct answersDistinguishing Basic *Information*, Required Supplemental Information, and Other Accompanying Information SFFAC No. 7 - correct answers*Measurement* of the Elements of Accrual-Basis Financial Statements in Periods After Initial Recording Statement Title/Year - No. 4 - correct answersManagerial Cost Accounting Standards & Concepts (Jul 95) Statement Title/Year - No. 5 - correct answersAccounting for Liabilities of the Federal Government (Dec 95) Statement Title/Year - No. 6 - correct answersAccounting for Property, Plant & Equipment (PP&E) (Nov 95) Statement Title/Year - No. 9 - correct answersDeferral of the Effective Date of Managerial Cost Accounting Standards for the Federal Government in SFFAS 4 (Oct 97) Statement Title/Year - No. 30 - correct answersInter-Entity cost Implementation: Amending SFFAS 4 (Aug 05) What is the Federal GAAP Hierarchy? - correct answers- FASAB Statements and Interpretations - FASAB Technical Bulletins - AICPA Accounting Standards Executive Committee Practice Bulletins - Implementation guides published by the FASAB staff - Standards and guides published by other authoritative standard setting bodies Under Secretary of Defense (Comptroller) (*USD/C*) - correct answers- Principal financial advisor to the Secretary and Deputy Secretary of Defense - Chief Financial Officer (CFO) of DoD - Deputy CFO, represents DoD on the Chief Financial Officers Council - Formulates DoD-wide financial management policies - Directs DFAS - Directs DCAA are the *greater* part of the budget and record receipts not earmarked by law... - correct answersGeneral Funds are revolving funds that conduct business-type operations primarily within and consist of receipt accounts for Federal fund receipts that laws have earmarked for *specific* purposes - correct answersSpecial 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. - correct answersPublic enterprise funds account for the receipt and expenditure of monies by the Government for carrying out specific purposes and programs with the terms of a statute that designates the fund as a , or for carrying out the stipulations of an agreement where the Nation is the beneficiary. - correct answersTrust funds are trust funds credited with collections earmarked by law to carry out a cycle of business-type operations. - correct answersTrust revolving funds are were the Government does act as a true trustee. - correct answersDeposit funds 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. - correct answersClearing accounts What are the types of Government Funds - correct answers- Appropriated Funds - Reimbursable Funds - Revolving Funds - Trust Funds - Non-Appropriated Funds (not by Congress) What are the Categories of Appropriations? - correct answers- Annual Appropriations - Multiyear Appropriations - No-Year Appropriations - Permanent (Indefinite) Appropriations are *one* fiscal year funds... - correct answersAnnual Appropriations are funds that are available for *more* than one fiscal year. - correct answersMultiyear Appropriations do not expire. - correct answersNo-Year Appropriations are funds covered by basic laws that allow the Secretary of the Treasury to pay without further enactment by Congress. - correct answersPermanent (Indefinite) Appropriations To or of resources is to administratively reserve funds. - correct answerscommit or to make a commitment An of funds occurs as a result of a legally binding agreement for the purchase of goods or services. - correct answersobligation The rule states that a fiscal year appropriation may be obligated only to meet a *legitimate need* arising in the fiscal year(s) for which the appropriation was made. - correct answersBona Fide Need (*BFN*) This is an enforceable agreement between the Government and a commercial vendor to provide specific goods and/or services to the Federal Government. - correct answersContract What does MIPR stand for? - correct answersMilitary Interdepartmental Purchase Request are detailed instructions that can cross fiscal years. - correct answersProject Orders are for routine work or services of a recurring nature usually within one fiscal year. - correct answersEconomy Act Orders are amounts earned and collected from the selling of goods and services. - correct answersReimbursements are the recovery of excess payments and are credited to the appropriation that made the payment. - correct answersRefunds Refunds for closed accounts are required to be deposited in - correct answersmiscellaneous receipts in the Treasury Refunds to no-year accounts, which never expire, are - correct answerscredited back to the appropriation and are available for obligation include the issuance of checks, disbursement of cash, or electronic transfer of funds made to liquidate a Federal obligation. - correct answersOutlays The proprietary and budgetary sets of general ledger accounts are - correct answersindependently self-balancing consists of tangible assets classified as either Heritage Assets or *Stewardship* Lang. - correct answersStewardship PP&E is *land* and land rights other than that acquired for or in connection with General PP&E, land acquired via the public domain, or land acquired at not cost. - correct answersStewardship Land are PP&E that are unique for one or more of the following reasons: historical, natural, cultural, educational significance; artistic importance; or significant architectural characteristics. - correct answersHertiage Assets DoD Financial Reporting includes: - correct answers- Balance Sheet - Statement of Net Cost - Statement of Changes in Net Position - Statement of Budgetary Resources - Statement of Custodial Activity Significant accounting principles and policies used by an organization should be summarized as a ... - correct answersfootnote The presents, as of a specific time, amounts of future economic benefits owned or managed by the reporting entity (*assets*), amounts owed by the entity (*liabilities*), and the differences (*net position*). - correct answersBalance Sheet as the process of accumulating, measuring, analyzing, interpreting, and reporting cost. is a basic part of the financial management system in that it supports and provides data to the budgetary and financial accounting functions and, by itself, provides useful information for both internal and external users. - correct answersManagerial cost accounting Current Ratio = - correct answersCash + Accounts Receivable + Inventory / Current Liabilities Quick Ratio = - correct answersCash + Accounts Receivable / Current Liabilities Current Ratio is defined as - correct answersA fundamental measurement in the analysis of balance sheet position is the comparison of current assets with current liabilities as of a date. Quick Ratio is defined as - correct answersA test of an entity's immediate solvency is made by comparing the sum of cash and aged accounts receivable. The total of the quick assets, when divided by current liabilities, gives the ratio of quick assets to current liabilities, also known as the ... - correct answersacid-test ratio The Government Management Reform Act of expanded on the CFO Act by requiring CFO agencies to have audited financial statements. - correct answers1994, 24 The DoD's annual budget is% of the Federal Government's discretionary budget. - correct answers56 The strategic, long-term plan devised by DoD to produce the required *auditable* financial statements is known as the ... - correct answersFinancial Improvement and Audit Readiness (*FIAR*) Program The FIAR Methodology defines - correct answersthe key tasks, underlying detailed activities and resulting work products that all reporting entities should follow to become audit ready. What are the 2 specific requirements associated with a successful audit: - correct answers1) *by* 30-SEP-*2014*, achieve a successful audit of the DoD Statement of Budgetary Resources (*SBR*) General Fund. 2) *by* 30-SEP-*2017*, achieve a successful audit of all DoD financial statements, which includes Balance Sheet, Statement of Net Cost, Statement of Changes in Net Position, Statement of Budgetary Resources, and Statement of Customdial Activity. The primary purpose of a financial statement audit is to attain an that an entity's financial statements. - correct answersunqualified opinion FIAR Strategy - correct answers*Wave 1* - Appropriations Received Audit *Wave 2* - Statement of Budgetary Resources *Wave 3* - Mission Critical Asset Existence and Completeness Audit *Wave 4* - Full Audit Except for Existing Asset Valuation GAGAS stands for - correct answersGenerally Accepted Government Auditing Standards GAGAS is also known as - correct answers"Yellow Book" GAGAS must be followed by: - correct answers- The US Government Accountability Office (*GAO*) - The Federal Offices of Inspectors General (*IGs*) - 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 The state of mind that permits the performance of an audit without being affected by influences that compromise professional judgement, thereby allowing an individual to act with integrity and exercise objectivity and professional skepticism. - correct answersIndependence of Mind The absence of circumstances that would cause a reasonable and informed 3rd 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. - correct answersIndependence in Appearance What are the threats to an Auditor's Independence? - correct answers- Self-Interest Threat - Self-Review Threat - Bias Threat - Familiarity Threat - Undue Influence Threat - Management Participation - Structural Threat the threat that a financial or other interest will inappropriately influence an auditor's judgement or behavior - correct answersself-interest threat 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 judgement significant to an audit - correct answersself-review threat the threat that an auditor will, as a result of political, ideological, social, or other convictions, take a position that is not objective - correct answersbias threat the threat that 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 - correct answersfamiliarity threat the threat that external influence or pressures will impact an auditor's ability to make independent and objective judgements - correct answersundue influence threat the threat that results from an auditor's taking on the role of management or otherwise performing management functions on behalf of the entity undergoing an audit - correct answersmanagement participation the threat 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 - correct answersstructural threat