Purpose, Time, and Amount (PTA)
*Federal appropriations law can be categorized into which three topical areas?
DoD General Counsel
*In the
... [Show More] Department of Defense, final decisions of fiscal law questions are "officially" rendered by whom?
Appropriations; Contract Authority; Borrowing Authority; Monetary Credits; Offsetting Collections and Receipts; Loan and Loan Guarantee Authority
*What are the basic types of budget authority used in the Federal Government?
They normally remain available for new obligations for ONE fiscal year
*Annual appropriations remain available for new obligations for how long?
Annual appropriation
*Operation and Maintenance (O&M) is an example of what type of appropriation?
Multi-year appropriation
*RDT&E is an example of what type of appropriation?
No-year appropriation
*Budget authority does not expire in what type of appropriation?
Legislative Branch (Congress)
*Article 1, Section 9, of the U.S. Constitution gives the power to appropriate funds for operating the Government to which branch of the Government?
Congressional Budget Act of 1974
*Which law established the House and Senate Budget Committees and the Congressional Budget Office (CBO)?
Must bear a logical relationship
Not prohibited by law
Not funded elsewhere
*What are the three tests which must be met for use of the Necessary Expense doctrine?
Certifying Officers
Disbursing Officers
Departmental Accountable Officials
*Who are determined to be accountable individuals in the Department of Defense?
The Defense Finance and Accounting Service (DFAS)
*Who grants relief of liability to a certifying officer for erroneous or illegal payments in the Department of Defense?
Multi-year authority
*What type of budgetary resources remains available for new obligations for more than one fiscal year?
No-year authority
*What type of budgetary resources remains available for new obligations until the purpose for which they were provided is carried out?
Continuing resolution
*What type of Congressional resolution can be thought of as a temporary appropriations act?
Antideficiency Act (ADA) Violation
*If a Contracting Officer signs a contract in advance of an appropriation, what type of violation has occurred?
The Office of Management and Budget (OMB)
*What agency apportions funds for a working capital fund?
Sequestration of federal funds concerns automatic cuts in federal spending that occur through the withdrawal of funding for certain government programs, such as has occurred resulting from the Gramm-Rudman-Hollings Act and the Budget Control Act of 2011.
*What does sequestration of federal funds mean?
The established rule is that the expenditure of public funds is proper only when authorized by Congress, not that public funds may be expended unless prohibited by Congress.
U.S. v. MacCollom (1976) - 426 US 317
What is the basic axiom of fiscal law?
Fiscal Law
___________ is the body of law which governs the availability and use of public funds.
1. The Constitution
2. Authorization Acts
3. Appropriation Acts
4. General Statutes
5. CG Decisions & Courts
What are the five sources of Fiscal Law?
GAO Principles of Federal Appropriations Law (The Red Book)
Two additional principles:
1. Specific of general appropriations
2. Do not do indirectly what you cannot do directly
What is the most authoritative source of information on the proper use of appropriated funds?
Fiduciary Certifier
Responsible for use of appropriated funds as to the proper Purpose, Time, and Amount, and for those U.S. Codes pertaining thereto.
Pecuniary Certifier
Responsible for the accuracy of the disbursement of funds. Responsible for the repayment of any disbursement made not in accordance with proper Purpose, Time, or Amount requirements.
Purpose (31 USC 1301)
Funds may be obligated and expended only for the purposes authorized in appropriations acts or other laws.
"Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law."
Simple, concise, and direct.
Time (31 USC 1502)
The period of time during which budgetary resources may be used to incur new obligations (e.g. the order of new goods or services) is different from the period of time during which the budgetary resources may be used to incur expenditures (i.e. pay bills).
"The balance of a fixed-term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period."
Amount (Antideficiency Act):
31 USC 1341 - obligating in advance or in excess of the appropriation
31 USC 1342 - accepting voluntary services for the United States
31 USC 1517 - obligating or expending in excess of the apportionment or reapportionment or obligating or expending in excess of an administrative subdivision of an apportionment to the extent provided in the agency's fund control regulations prescribed under 31 USC 1514
Obligations and expenditure may not exceed the amounts established by law.
Definite Authority
If the law itself specifies an amount of budget authority available, the amount is classified as ___________. This type of authority includes authority states as "not to exceed" a specified amount. Most DoD appropriations are of this type.
Indefinite Authority
If the law does not specify an amount of budget authority available (e.g. if the amount is determined by specified variable factors or are interest on the debt, Federal retirement, social security, and the Judgment Fund), the amount is classified as __________.
Training, travel, postage, books and periodicals, and miscellaneous items.
What are some examples of day-to-day general operating expenses?
Authorization acts, appropriation acts, and CG decisions
What are three sources of spending restrictions (specific purpose authorities)?
Logical relationship, not prohibited by law, and not funded for elsewhere.
What are the three tests of the Necessary Expense Doctrine?
Obligations
Legal reservations for which payments, or expenditures, will be made in the future.
Espenditures
The cash payments made to liquidate an obligation.
"A fiscal year appropriation may be obligated only to meet a legitimate, or bona fide, need arising in, or in some cases arising prior to but continuing to exist in, the fiscal year for which the appropriation was made." 33 CG 57 (1953)
Review 3.1.18-3.1.21 for more information on exceptions.
What is the Bona Fide Needs Rule?
Annual Authority
Budgetary resources available for incurring new obligations for one fiscal year or less are classified as _________. Appropriations acts (almost without exception) contain a general provision specifying that the appropriations provided in the act are not available beyond the current fiscal year.
Multiple Year Authority
Budgetary resources that are available for new obligations in excess of one year are referred to as _______________.
No-Year Authority
"An appropriation account available for obligation for an indefinite period shall be closed, and any remaining balance (whether obligated or unobligated) in that account shall be cancelled and thereafter shall not be available for obligation or expenditure for any purpose, if:
- The head of the agency concerned or the President determines that the purposes for which the appropriation was made have been carried out
- No disbursement has been made against the appropriation for two consecutive fiscal years"
Budgetary resources that are available for new obligations for an indefinite period (until the purpose for which they were provided are carried out) are referred to as ___________. This authority does not expire and is often called "X-year authority" because an "X" appears in the appropriations symbol instead of the fiscal year.
Military Personnel (MILPERS) - 1 year; expense type appropriation
Which DoD Appropriation and its typical obligation period?
- Pay and allowances of active duty and reserves
- PCS moves
- Training in conjunction with PCS moves
- Subsistence
- Bonuses
- Retired pay accrual
Operation & Maintenance (O&M) - 1 year; expense type appropriation
Which DoD Appropriation and its typical obligation period?
- Day-to-day operations
- Headquarters operations
- Civilian salaries
- Travel
- Fuel
- Minor construction up to $2M
- Purchase of items with investment item unit cost of not more than $250K
- Training and education
- Recruiting
Research, Development, Test & Evaluation (RDT&E) - 2 years
Which DoD Appropriation and its typical obligation period?
- Development of equipment, material, or computer application software
- Development Test and Evaluation (DT&E)
- Initial Operational Test and Evaluation (IOT&E)
- Operation costs for R&D dedicated installations
Procurement (excluding Shipbuilding and Conversion, Navy [SCN]) - 3 years; investment type appropriation
Which DoD Appropriation and its typical obligation period?
- Purchase of major end items and defense systems
- Initial issue of spares for above items
- All costs necessary to deliver a useful end item intended for operation use or inventory
Shipbuilding and Conversion, Navy (SCN) - 5 years; investment type appropriation
Which DoD Appropriation and its typical obligation period?
- Used to fund procurements and overhaul Naval ships. Part of the Procurement appropriations category is broken out separately because it has a longer "obligation" period than other procurement accounts
Military Construction (MILCON) - 5 years; investment type appropriation
Which DoD Appropriation and its typical obligation period?
- Major military construction projects
- Construction of military schools
- Construction of military facilities and bases
Phase 1: Current Account (1-5 Years)
- Available for new obligations for stated number of fiscal years; increased scope on existing obligations; and payments and adjustments to original obligations
Phase 2: Expired Account (5 Years)
- Available for payments and adjustments (up and down) to existing obligations made when account was "current"
- Not available for new obligations or increased scope on existing obligations
- FY, appropriation, and line item identity remains to enable "charging" original obligation fund cite
Phase 3: Closed/Cancelled Account (>10 Years)
- No longer available for payments or obligation adjustments
- Adjustments and payments are changed to currently available appropriation of same type, up to lesser of 1% of currently available appropriation or unexpended balance of closed appropriation
- FY, appropriation, and line item identity remains only for accounting tracking purposes
What is the appropriation life cycle? [Show Less]