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This Act may be cited as the ''Fiscal Responsibility. 4. Financial responsibility means being prepared for the unexpected.Restoring Fiscal Discipline. Fiscal policy is the use of government spending and taxation to influence the economy. , balanced budget); debt rules (e.g. This ensures transactions are properly reviewed and authorized and that no one person has the ability to control financial transaction(s) from start to finish. In FSA program funds during its most recently completed fiscal year, the school must meet the financial responsibility standards for domestic schools. These ratios take into account the total financial resources of the school. (6) Has not had, as part of the audit report for the institution's most recently completed fiscal year -. Every fiscal year since 2002, the federal government has run a deficitmeaning spending exceeds its revenuesand added to its debt.