Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

The U.S. Anti-Deficiency Act is the legislation that imposes penalties on government officials who exceed their authorized spending limits. This act is designed to prevent agencies from spending more money than has been appropriated by Congress. Exceeding these limits can result in legal and administrative penalties for the officials involved, serving as a critical control mechanism to ensure fiscal responsibility and adherence to the appropriations enacted by the legislative branch.

In contrast, the Federal Accounting Standards Act primarily focuses on the establishment of accounting principles and standards for federal entities. The Government Spending Limit Act is not a recognized piece of legislation within the context of federal fiscal management and does not impose specific penalties. The Budget Control Act relates to fiscal policy and budgetary enforcement, but it does not specifically address unauthorized spending at the level of individual officials or impose penalties in the same manner as the Anti-Deficiency Act.