CDFM Module 3.1 Fiscal Law
Terms in this set (99)
Basic Axiom of Fiscal Law (the premise of fiscal law)
The established rule: Expenditure of public funds is proper only when authorized by Congress, not that public funds may be expended unless prohibited by Congress.
Which law: There is no law that says you can't do it.
Which Law: You can only do what the law authorized you to do.
Constitutional Authority: Article 1, section 7,8,9
Provisions of the U.S Constitution that provide the underpinning for the budget & funds control process, (which Constitutional Authority)
Article 1, Section 7
Empowers the congress to pass bills for the raising of revenue & delineates how bills will pass from the Congress 2 the resident for signature or veto.
Article 1, Section 8
Empowers Congress to collect taxes.
Article 1, Section 9
Requires appropriations in law before money may be spent from the Treasury.
Principles of Federal Appropriation Law
The most authoritative source of information on the proper use of appropriated funds is a volume published by the GAO & General Counsel.Red Book, Specific over general appropriations & do not do indirectly what you cannot do directly.
The Red Book
Contains detailed guidance & numerous cases illustrating proper & improper uses of funds. Available on web site.
31 USC 1341, 1342, 1517 (Anti Deficiency Act)
Agencies are responsible 4 maintaining systems of accounting, internal control, & administrative control 2 facilitate effective management of Federal programs to avoid?
Budget & Accounting Act of 1921
Requires President 2 submit annual budget 2 Congress 4 all 3 branches of the federal government, created budget office 4 the President (OMB), & established the GAO office.
Congressional Budget Act of 1974
Governs the congressional budget process, defines key budget terms that are used in the budget process, establishes the House & Senate budget committees & the Congressional Budget Office.
Balanced Budget & Emergency Deficit Control Act of 1985
This law prescribes rules & procedures (sequestration) designed 2 constrain spending & receipts legislation. Originally it enacted the GRAMM-RUDMAN-HOLLAND ACT. The budget enforcement Act (BEA) amended it, so it is also known as the BEA.
Sections 13 & 15, 31 USC
These sections prescribe rules & procedures 4 budget execution. The statutory requirements 4 the use, control & accountability of funds are found here. Many provisions were previously enacted as section 3679. (ADA)
Impoundment Control Act of 1974
This law prescribes rules & procedures under which the President may withhold appropriated amounts from obligation. (deferrals & rescissions) OMB A-11 address the requirements of this law.
OMB Circular A-11
Issued pursuant 2 chapters 13 & 15 of USC, Executive Order 11541 of July 1970, The Congressional Budget, Impoundment Control Act of 1974,and GPRA in Section 200.
Federal Appropriation Law
Congress, under the authority of Article 1 of Constitution, generates revenue & establish taxes. Authorities under these articles are found in the authorization & appropriation acts passed by Congress & signed by President. Court decisions & decisions by Comptroller General further amplify these authorities.
Responsiable for the use of approproated funds to the proper Purpose, Time & Amount, and 4 those US codes pertaining thereto.
Conveys a confidence or trust.
Fund Certifying Official
Certifies that the public's funds for which they have been entrusted, certifying that funds are legal for use under Purpose, Time & Amount restrictions placed by Congress.
There is no relief from this!
Responsible for the accuracy of disbursement of funds. Resp. 4 the repayment of any disbursment not in accordance with proper Purpose.
Covers the responsibility of physical control of the monies entrusted to the care if an accountable official of the government.
Disbursing Officers, cashiers, & collecting officers
Who has precuniary resp. for the monies entrusted in their care & held personally liable for any loss or theft.
Their job includes certifying vouchers for payment & are held personally liable for any erroneous payments, resulting for their miscertification, from the second the payment is made, but does not have physical custudy of gov funds. BUT they have the authority to question & refuse payment that may be improper.
ADA Volation Purpose 31 US 1301
Whcih ADA is enacted in 1809, is simple, consice, and direct, yet leads to the greatest number of ADA violations.
ADA Violation TIME 31 USC1502
Which ADA? Payments may only be made for obligations incurred during the period of avilability of the appropration.
Which is 31 USC 1341, 1342, 1517
Budgetary authority that are avilable for incurring new obligations for one fiscal year or less.
Bugetary resources that are available for new obligations in excess of one fiscal year.
No Year Authorirty
Budgetary Resources that are available for new obligations for an indefinite period ( until the purpose for which they were provided are carried out). They do not expire, ofter called
If the law itself specififes an amount of budget authority available, the amount is classified as? THis type of authority includes authority stated as "not to exceed" a specified amount. Most DoD aoorioriations are this type.
If the law does not specify an amount of budget authority available (e.g., if the amount is determined by specified variable factors) it is called?
Examples are interest on the debt, federal retirement, social security, and the Judgment Fund.
General Operating Expenses
Training, travel, postage, books & periodicals, miscellaneous items such as certain civic charitable, similar community support.
Necessary Expense Doctrine
Must pass the 3 part test: bear logical relationship, not prohibited by law, not otherwise provided for.
Legal reservations for which payments, or expenditures, will be made in the future.
Cash payments made to liquidate an obligation.
Bona fide Needs Rule
A test to determine when to obligate and for how much consumption or effort the obligation should cover.
Everything in the appropriation act is assumed to apply only to that fiscal year unless the appropriation specidically states otherwise.
Time limits do not apply to no-year funds. T or F?
MILPERS ( Mil Pay)
1 year, Expense Type Appropriation
Operation & Maintenance ( O&M)
1 year, Expense Type Appropriation, funds day 2 day & HQ operations, civilian salaries, travel, fuel, education, training, recruiting.
Researh, development, test & evaluation
2 year obligation period, development of equipment, materical, computer application software, DT&E, Initial operational test & eval.
Procurement ( excl. shipbuilding & conversion Navy
3 year Investment Type Appropriation, funds major end items & defense systems, all cost necessary 2 deliver a useful end item intended 4 operational use or inventory.
SCN (Shipping & Conversion, Navy)
5 year Investment Type Appropriation, part of the appr. is broken out beccause it has a longer obligation period than other precurement accounts.
MILCON ( Military Construction)
5 year Investment Type Appropriation
MILCON ( Military Construction)
Funds major military construction porojects, military schools, facilities, and bases.
Operation & Maintenance (O&M)
Funds minor construction up to 750 thousand or up to 1.5 for health, safety related requirements with congressional approval. Purchases of items with investment item unit cost of not more than 250,000.
A no year account is to be closed if agency head or President determines purpose fulfilled and no disbursments have been made for 2 consecutive years. Bona fide needs rule does not apply. T or F?
Budget Authority will remain on the agency's books for 5 yrs after an appropriation enters expired status, at which time all un-obligated & un-liquidated balances will be cancelled & returned to the general fund of the Treasury, & are not longer available 2 the agency for any purpose.
When an appropriation expires Sept. 30, obligated & unobligated balances must be accounted for in reports of budget execution.
Head of the Agency
Requires approval be sought from the ______if obligations from an expired appropriation during a fiscal yr. exceed 4 Million for any program. 31 USC 1553
Authorization & Appropriation committees
Requires approval be sought from the _____ & ____if obligations from an expired appropriation during a fiscal year exceed 25 million at the program level and Congress must be given 30 days notice. The USD (C) monitors the process. 31 USC 1553
Appropriation Life Cycle
Phase 1, current app. Phase 2, Expired app 2-6 yrs, phase 3, cancelled appropriation (after 6 yrs) (1 percent maximum) No M accounts.
Anti Deficiency Act
31 USC 141, 1342, 1517
31 USC 1341 ADA
(ADA)Obligation or expending in advance or in excess for the appropriation. CAN NOT involve either gov. in contact or obligation for the payment of $ BEFORE an appropriation is made authorized by law.
31 USC 1342 ADA
(ADA) May not accept voluntary services for the U.S. or employment services, except 4 emergencies involving the safety of human life or the protection of property.
31 USC 1517 ADA
(ADA) Obligation or expending in excess for the appropriation or reappointment.
Forms of Budget Authority
Appropriation, Contract Authority, Borrowing Authority, Monetary Credits, Offsetting collections & receipts, Loan & loan guarantee authority.
Concept of Earmarking
Not to exceed, Not less than, exclusively for. Congress limiting the executive branch's authority to mark a part of a more general lump sum for a particular purpose.
Not to exceed
Not less than
Exclusively for Language in an appropriation connotes both a floor and ceiling, and the rules for each apply this type of ______.
Statutorily authorized gratuitous services
Red Cross Volunteers, Candy Stripers @ hospital, Museum Volunteers.
An agency many not augment its appropriation from outside sources without specific statutory authority. ( 31 USC 3302, 1301, 18 USC 209)
Any gift received shall be deposited to the Treasury. Deposited to _______account and will take an appropriation to get it out unless the agency or employee has the statutory authority to keep it.31 USC 3302
Example of Augmentation
What is this: (____ of _____ ) An agency receives funds from a private party for destruction of a government property like a guardhouse or vehicle.
According to 31 USC 1349 & 1518, a violation of this type are subject to written reprimand, suspension from duty with out pay, removal from office. 31 USC 1350 & 1519 if convicted of willfully & knowingly shall be fined not more than 5 thousand and imprisoned for not more than 2 years, or both.
ADA Reporting requirements
What type of reporting requirmetns are these? Report to agency head within 10 days of discovery, factors involved. If in fact occurred, report to President through OMB, the Congress, and the Comptroller General.
Criteria for Recording Obligations
31 USC 1501: A set criteria for _____ ______ is Contracts, Loan Agreements, Interagency Orders, Orders w/o advertising, grants & subsidies, pending litigation, employment & travel, Public Utilities, other legal liabilities.
A ______ is a legal liability of the government for the payment of appropriated funds for goods or services ordered or received.
legal liability, over or under coding equally improper, recording only evidences the obligation, but does not create it.
Temporary appropriation act,(limited in time only) stop gap measure, goes back to the 1880's, enacted as Joint Resolutions.
A Departmental Accountable Officer (DAO), certifying officer, disbursing officer has the statutory right to seek this from the DoD General Counsel regarding the lawfulness of any payment to be certified or made.
Relief of Accountable Individuals
If certain criteria has been meet, and the determination by DoD can not be overruled. Statue of limitations 3 yrs. For Fraud, no imit. 31 USC 3527 & 3528
Reasonable Care Standard
The standard whether the accountable officer did what a reasonable, prudent and careful person would have dones to safeguard their property under similar circumstances.
If AO was neglident, the Comptroller General will consider whether the negligence was the _________ of the loss ir deficiency. It is the burden of the individual seeking relief the show that some other factor or combination of factors was the ______ of the loss, or at least that the totalityof evidence makes it impossible to fix responsibility. The governement does not need prove this.
The statue of limitations for settling account of an accoutable officer is ____ after agency accoutns are substantially complete. Aftrer this period the account is settles and the accountable officer has no personal financial liability for the loss in question.
This means the time when, absent fraud bu the officer, the agency can audit the paper work upon which the officer based his action. IF the loss is due to fraud ot embezzlement or other criminal activity, then the 3 yr statue of limitation does not apply.
The Secretary of Defense
Who delatagted authority to the Director of DFAS to make the determination to grant or deny relief.
The DoD FMR vol 5, ch 33 specifically states that ____ are not liable for payments that are properly certified by certifying officers even if the payments turn out to be illegal, improper, or incorrect.
Certifying Officers under 31 USC 3528
The standard for relief for ______ was based on offfical records abd the offical did not know, and by reasonable diligence and inquiry could not have discovered, the correct info. And the obligation was made in good faith, no law specifically prohibited the payment and the US GOV. received value for the payment.
Certifying Officers, Disbursing Officers may be granted relief from liability however, the _______ will deny relief in the agency involved did not attempt diligently to collect the erroneous payment.
Absent Statutory Authority
What type of authority? Agency officals who are NOT designated as accountable officers are not personally liable for illegal, improper or incorrect payments.
Who are typically responsible for authorizing payments yet they do not have custody of public funds?
Disbursing Officers & Their Agents & Accoutnable Officers
Who are responsible for making payments and codecting funds?
Who may become accountable officers by virtue of the fact that they (even occasionally) become custodians of federal funds.
DAO, Departmental Accountable Officials
Who are those officals that provide information or data that is subsequently relied uopn by a certifying officer.
An appropriation whose availability for new obligations has expired, but which retains its fiscal identity and is available for recording, adjusting, and liquidating properly chargeable to that appropration.
Closed Appropriation that is no longer available for any purpose. It becomes closed five yrs after the end of its period of availability as defined by the approprations act.
An appropriation that is no longer available for any purpose. It becomes closed five yrs after the end of its period of availability as defined by the approprations act.
Subject to Availability
If a ___ of ____ is used, the Gov. shall NOT accept supplies or services until the contracting officer has given the contracttpr wrotten notice that funds are available.
Obligations must be recorded no later than ______ following the day that an obligation is recorded. Obligations of 100,000 must be recorded in the same month.
Fund holders may split obligations between fiscal yrs that the contract covers provided that the contract does not exceed ____.
These contracts are ones that exceed 12 months and will be funded by appropriations of the fiscal years in which the services are rendered.
NON Severable Contracts
If the services produce a single or Unified outcome, product, or report, the services are______. The Gov. must fund the entire amount and effort with dollars available for obligation at the time the contract is awarded, and the CONTRACT PERFORMANCE MAY CROSS FISCAL YEARS.
Terminated for Default
Funds for a contract maybe funded for subsequent fiscal years if the
contract is __________ for the convenience of the gov. per suant a court order, determined by a contracting officer that the award was improper.
The Economy Act
The purpose of this act is to provide authority for federal agencies to order goods and services from other federal agencies, or with a major organizational unit within the same agency.
What occurs when a previous budget authority expires and there is no regular appropriation act or continuing resolution.