Which option would violate funding policies during a program's execution?

Which option would violate funding policies during a program's execution?

• A. Reprogramming funds from operations to development.
• B. Initiating a new procurement without MDA approval.
• C. Funding test activities with O&M after Milestone C.
• D. Using O&M dollars to fund a design change prior to Milestone C.

Answer: (D)

Funds must be used for the purposes they were appropriated and aligned with the program’s current phase. Before Milestone C, the program is still in development, so design changes are development activities and should be funded with development/RDT&E funds, not Operations and Maintenance (O&M) funds. Using O&M dollars to fund a design change prior to Milestone C shifts money from sustainment to development, which violates the intended use of those funds and the program’s funding rules. Other options would generally be governed by different controls but aren’t inherently violations in the same way. Reprogramming from O&M to development can be allowed with the proper approvals and processes. Starting a new procurement requires Milestone Decision Authority approval. After Milestone C, using O&M to support testing and production activities is a typical and permitted use.

Funds must be used for the purposes they were appropriated and aligned with the program’s current phase. Before Milestone C, the program is still in development, so design changes are development activities and should be funded with development/RDT&E funds, not Operations and Maintenance (O&M) funds. Using O&M dollars to fund a design change prior to Milestone C shifts money from sustainment to development, which violates the intended use of those funds and the program’s funding rules.

Other options would generally be governed by different controls but aren’t inherently violations in the same way. Reprogramming from O&M to development can be allowed with the proper approvals and processes. Starting a new procurement requires Milestone Decision Authority approval. After Milestone C, using O&M to support testing and production activities is a typical and permitted use.