CDFM Cirtification Exam Module 1

The correct answer is the Articles of Confederation. The Articles of Confederation was the first constitution of the United States, serving as the basis for the formation of the US government. It was adopted in 1777 and remained in effect from 1781 until the ratification of the US Constitution in 1788. The Articles established a weak central government with limited powers, emphasizing the sovereignty of individual states. However, it soon became clear that the Articles had numerous flaws and were inadequate in effectively governing the country, leading to the need for a stronger federal government, which was addressed in the US Constitution.

If Congress and the President do not complete action on all appropriations by September 30th, a Continuing Resolution Authority (CRA) is passed by both houses to avoid a government shutdown. A CRA allows the government to continue funding its operations at the same levels as the previous fiscal year for a specified period of time, typically until a new budget is passed. This temporary measure ensures that essential government functions can continue while negotiations and discussions on the appropriations bills are ongoing.

The correct answer is Mandatory and Discretionary. The 1990 Budget Enforcement Act introduced these two major categories to divide spending. Mandatory spending refers to government expenditures that are required by law, such as entitlement programs like Social Security and Medicare. Discretionary spending, on the other hand, includes government expenditures that are not mandated by law and can be adjusted or allocated based on the government's discretion, such as defense and education funding. This division helps in managing and controlling the federal budget effectively.

The correct answer is A-34 because OMB Circular A-34 contains the Instructions on Budget Execution. This circular provides guidance and regulations for federal agencies on how to execute their budgets effectively and efficiently. It outlines the procedures and requirements for budget formulation, allocation, and monitoring. By referring to A-34, agencies can ensure compliance with the established budgetary guidelines and achieve proper financial management.

When Congress is adjourned and the President fails to sign a bill within the 10-day period, the bill does not become law. This situation is known as a pocket veto.

The correct answer is President of the United States of America. According to the Constitution, the executive power is vested in the President. This means that the President is responsible for carrying out and enforcing the laws of the United States. The President is the head of the executive branch and has the authority to make important decisions, such as appointing government officials and negotiating treaties. The President is also the Commander-in-Chief of the armed forces.

The Office of Management and Budget (OMB) is responsible for issuing the allowance letter with planning levels for 5 years and policy guidance. The OMB is an executive branch agency that assists the President in overseeing the implementation of his policies and the management of the federal budget. They play a key role in developing the President's budget proposal and providing guidance to federal agencies on budgetary matters. Therefore, it is the OMB's responsibility to issue the allowance letter and provide policy guidance for a 5-year period.

Budget formulation is indeed the phase where organizations create and finalize their budgets. During this phase, each agency gathers and combines their budget proposals to prepare a comprehensive budget that will be presented to the President and Congress for approval. Therefore, the statement is correct.

The correct answer is The Articles of Confederation, ratified in 1781. The Articles of Confederation served as the first constitution of the United States. It was adopted in 1777 and ratified in 1781. It established a weak central government and granted most powers to the individual states. However, it had several flaws and limitations, leading to the need for a stronger and more unified government, which eventually resulted in the drafting of the Constitution.

The Office of Management and Budget (OMB) is responsible for drafting the President's budget message and preparing other parts of the budget. The OMB assists the President in developing and implementing the federal budget, ensuring that it aligns with the administration's policy priorities. They work closely with various federal agencies to gather information and formulate budget proposals, taking into account economic factors, program needs, and policy objectives. The OMB plays a crucial role in the budget process, providing analysis, guidance, and recommendations to the President to help shape the budget priorities of the government.

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The precursor to the constitution is called the Articles of Confederation, which were ratified in 1781.

The correct answer is "Funds and property are safeguarded against waste or misuse." The Federal Managers’ Financial Integrity Act of 1982 mandates the implementation of internal controls to ensure that funds and property are protected from being wasted or misused. These controls aim to prevent any unauthorized or inappropriate use of resources and assets. By establishing safeguards, the act aims to promote accountability and integrity in the management of funds and property within federal agencies.

Budget authority is the authority provided by Congress in an Appropriations Act. This refers to the legal authority given to federal agencies to incur financial obligations for specific purposes. It allows them to spend money from the federal treasury to carry out their programs and activities. Budget authority is a crucial component of the budget process as it determines how much money an agency can spend and for what purposes. It is granted by Congress through the Appropriations Act, which is the legislation that provides funding for government operations.

The power to raise taxes is found in Article I of the Constitution. This article establishes the legislative branch of the government, which includes the power to levy taxes. It outlines the specific powers and responsibilities of Congress, including the ability to impose taxes on individuals and businesses to generate revenue for the federal government. This article also sets forth the process by which tax laws are created and enacted, ensuring that the power to tax is held by the elected representatives of the people.

The four phases of the budget cycle are formulation, congressional action, budget execution, and performance review and audit. During the formulation phase, the budget is developed and prepared by the executive branch. Congressional action involves the review and approval of the budget by the legislative branch. Budget execution is the implementation of the budget by the executive branch, while performance review and audit evaluate the effectiveness and efficiency of the budget's implementation.

The correct answer is CFO Act of 1990. The CFO Act of 1990 specified organization and reporting requirements to improve government-wide financial management. This act was passed by the United States Congress in order to enhance accountability and transparency in financial management within the federal government. It established the position of Chief Financial Officer (CFO) in various government agencies and mandated the development and implementation of financial management systems and practices. The CFO Act of 1990 aimed to ensure that government agencies effectively managed their finances and provided accurate and reliable financial information.

In order to amend any amendment to the Articles of Confederation, unanimous approval of all the states was required. This means that every single state had to agree to the proposed amendment in order for it to be passed. This high threshold for approval highlights the difficulty in making changes to the Articles of Confederation and the strong emphasis on maintaining the unity and agreement among all the states.

The Articles of Confederation were particularly concerned about limiting the powers of the Federal Government over the states and guaranteeing the freedom of each individual citizen. This was because the framers of the Articles wanted to prevent a strong central government from becoming too powerful and infringing on the rights of the states and the people. They believed in a decentralized system where the states retained significant autonomy and individual liberties were protected. This emphasis on limiting federal power and safeguarding individual freedom was a key principle behind the creation of the Articles of Confederation.

The statement that best characterizes the authority of the authorizing and appropriating committees of Congress with regard to defense bills is that appropriating committees generally adhere to decisions made by the authorizing committees but are not required to do so. This means that while the appropriating committees typically follow the decisions made by the authorizing committees, they have the flexibility to deviate from those decisions if they deem it necessary or appropriate.

When a check is issued or funds are transferred electronically to a contractor in response to an invoice/payment request for costs incurred, services rendered, or products delivered, it is considered an expenditure. This means that the company or organization is using its funds to pay for the expenses related to the contractor's work. The payment is made to fulfill a legal obligation and to transfer the funds to the contractor for the services provided.

The term "transfer" best fits the given description as it refers to the shift from one purpose or activity to another within different appropriations. Reprogramming and movement do not specifically imply a shift from one purpose or activity to another, whereas transfer directly implies this change.

The budget formulation phase starts as early as 21 months out. This means that the process of creating and planning the budget begins almost two years in advance. Starting this early allows for sufficient time to gather data, analyze financial needs, and make informed decisions about budget allocations. It also allows for adjustments and revisions to be made before the budget is finalized.

Budget authority refers to the legal authority granted to government agencies to enter into financial obligations and spend funds. It allows agencies to allocate and use funds for specific purposes outlined in an approved budget. Budget authority is essential for ensuring that government spending is authorized and controlled, and that agencies can fulfill their financial obligations.

The budget cycle is a continuous process that guides financial planning and resource allocation. It involves four distinct phases: preparation and submission, approval and implementation, monitoring and execution, and auditing and evaluation. Marketing and advertising are not typically considered separate phases of the budget cycle, but they may be included as budget items within the overall planning process.