CGFM Examination 1

The legislative branch is responsible for enacting laws and appropriating funds. At the federal level, Congress consists of the Senate (100 members, two per state) and the House of Representatives (435 members, apportioned by population). Congress has exclusive authority to levy taxes, borrow money, regulate commerce, declare war, and appropriate funds for all federal activities.

Congressional committees play crucial roles in government financial management. The House and Senate Budget Committees develop budget resolutions establishing overall spending and revenue levels. Appropriations Committees allocate specific funding amounts to federal programs and agencies. Authorization committees establish programs and set policy direction. The House Ways and Means Committee and Senate Finance Committee handle tax legislation.

State legislatures similarly enact laws and appropriate funds for state operations. Most states have bicameral legislatures consisting of a senate and house of representatives or assembly. Nebraska uniquely operates with a unicameral legislature. Local legislative bodies include city councils, county boards, town boards, and school boards.

The executive branch implements and enforces laws enacted by the legislature. At the federal level, the President serves as chief executive, commander-in-chief, and head of state. The President proposes the annual budget, signs or vetoes legislation, issues executive orders, and oversees the executive departments and agencies.

Key executive branch entities for financial management include the Office of Management and Budget, which prepares the President's budget and oversees agency budget execution; the Department of the Treasury, which manages federal finances, collects revenue, and produces financial reports; and the Government Accountability Office, which provides audit and investigative services to Congress.

State governors serve as chief executives of their respective states, proposing budgets, signing or vetoing legislation, and overseeing state agencies. Mayors, city managers, and county executives lead local government executive functions. The executive branch at all levels is responsible for preparing budgets, managing revenues and expenditures, and ensuring compliance with laws and regulations.

The judicial branch interprets laws and adjudicates disputes. Federal courts include the Supreme Court, Courts of Appeals, District Courts, and specialized courts such as the Tax Court and Court of Federal Claims. Federal judges are appointed by the President and confirmed by the Senate, serving lifetime terms.

Courts affect government financial management through decisions interpreting tax laws, contract disputes, constitutional challenges to government actions, and enforcement of regulatory requirements. Court decisions can require government payments, invalidate taxes or fees, and mandate changes in government programs and operations.

State court systems typically include trial courts, intermediate appellate courts, and supreme courts. State courts handle most civil and criminal matters including state tax disputes, local government challenges, and contract litigation. Local courts may include municipal courts handling traffic offenses, ordinance violations, and small claims.

The Constitution establishes separation of powers among the three branches to prevent concentration of authority and protect individual liberty. Each branch possesses distinct functions while also checking the powers of the other branches.

Legislative checks include the power of the purse (controlling appropriations), confirmation of executive and judicial appointments, impeachment authority, and override of presidential vetoes. The legislature can also conduct oversight hearings, issue subpoenas, and investigate executive branch activities.

Executive checks include the veto power, appointment of judges and executive officials, execution and enforcement of laws, and negotiation of treaties. The President also commands the armed forces and can grant pardons for federal offenses.

Judicial checks include judicial review (declaring laws unconstitutional), interpretation of statutes and regulations, and adjudication of disputes between branches or between governments. Courts can enjoin government actions found to violate constitutional rights or statutory requirements.