Army Fiscal Law Part 1

draws funds from the treasury and provides basic purpose.

provides additional purposes for the use of an appropriation.

of the purse.

authorized by Congress.

1. HASC House Armed Services Committee
2. SASC Senate Armed Services Committee
3. Conference Committee
4. House & Senate vote
5. President signs

1. Defense
2. Military/Veterans (includes military construction)

HASC (House Armed Services Committee)
SASC (Senate Armed Services Committee)

National Defense Authorization Act

1. HASC
2. SASC
3. Conference Committee
4. House & Senate vote
5. President signs

are not factors for fiscal law

1. O&M "OMA" (Operations & Maintenance) 1yr
2. Personnel 1yr
3. Procurement 1yr
4. RDT&E (Research, Development, Testing & Evaluation) 2yr
5. Military Construction 5yr

Emergency Extraordinary Expenses

Other Procurement Army

Purpose-Time-Amount

an arm of congress
investigative/watchdog
Examines use of taxpayer funds

1. Is it necessary and incident to an appropriations purpose?
2. Must not be prohibited
3. Must not be provide for otherwise

use the more specific of the two.

distinguishes between expense & investment items
(short & long duration items)

consumed in operating and maintaining with a couple years
and they are ALL services

items that have a long life span and become capital assets of DoD.
(furniture, IT equip.)

O&M

Procurement

O&M may be used to purchase up to $250K of investment (instead of Procurement which most commanders don't have access to).

DoD must use O&M for all investment items < $250K

they are a system.

is an interconnected system and has to be paid for out of the Procurement pot (> $250K), not out of O&M.

is a system, and can be paid for out of O&M (< $250K).

considered a system. They stand alone.

Procurement

it's likely centrally managed and therefore paid for with Procurement.

Agency, FY, type of appropriation
or for Army
Agency, type of appropriation, years of availability, FY of funds

Clothing
Food
Conferences
Bottled Water
Food Storage Prep. Equip.
Personal Office Furniture/Equip.
Entertainment
Decorations
Business Cards
Telephones
Fines and Penalties
Licenses and Certficates
Awards

A cost is included/can't be separated
-has to be cost effective

if participants are on travel status.

a personal expense, unless water is unavailable or unpotable. Drink tap water.

appropriated funds

1. Augmentation
2. Miscellaneous Receipts

You can't augment a pot of money out of another pot, or with any other sources.

1. The Constitution
2. The Purpose Statute
3. The Anti-Deficiency Act
4. The Miscellaneous Receipts Statute

If you get money that's not from Congress, you have to give it to the Treasury.

appropriations, "colors" or "pots" of money

1. Purpose
2. Time
3. Amount

must be needed in that FY.

til the end of the FY

an admin tool to verify sufficient funds exist.
No legal consequences
Can be undone

the event that creates a legal liability to pay
Usually a contract award

actual payment

You have to need and and buy it in the year the money is available
NEED, OBLIGATE, THIS YEAR

Current year funds for current year needs

Need occurs in the fiscal year it will be used.

1. Severable - when work is performed
2. Non-severable - when work must start

when a building must be started in order to have it completed on time

1. Delivery time
2. Production lead time
3. Stock level

can order if delivery won't happen utnil following FY
*Gov't can't ask for later delivery date

can order is it won't be produced until following FY

real or genuine

to replenish current supplies
no more than a normal year's worth
NO STOCKPILING!

buying more than you expect to use in the next FY, or more than you used last FY

1. repeatable
2. recurring
3. identical (or nearly so)
(e.g. cleaning service)

1. one end product
2. indivisible - can't be broken into parts
(e.g. produce a report)

non-severable
only one outcome - the completed building

non-severable
*multiple training course may be severable

available for obligation until expended
No expiration date
No bona fide need rules

for five years, but remain available to adjust old obligations.

closed.
They go back to the Treasury.

huge.

Antideficiency Act

Can't spend more than Congress gave you

1. Appropriation
2. Apportionment
3. Formal Administrative Subdivision

1. Can't spend IN EXCESS OF an appropriation
2. Can't spend IN ADVANCE OF an appropriation

1. Multi-year contracts (in advance) (e.g. maintain aircraft on remote island)
2. Feed and Forage Act

SAF Exception
Subject to Availability of Funds
Contract says nothing is exchanged until

OMB distributes money to DoD Comptroller
Can't exceed this amount

1. Military and civilian pay increases
2. Laws enacted after budget submission which require additional expenditures
3. Emergencies involving life or property

1. Further divides apportionments
2. Restricts amounts of obligations and expenditures
3. fix responsibility
(e.g. an allocation to the Army)

major commands

1. allotment
2. allowance

a formal subdivision

an informal subdivision

1. Allocation
2. Allotment
Subject to ADA violations

1. Allowance
2. Target
3. Advisory Guide
Not subject to ADA violations at this level

1. Purpose
2. Time
3. Amount

1. Proper funds are available at the time of obligation
2. Proper funds are available at the time of correction

de-obligate wrong funds & obligate right funds
Must perform funding correction

Can't accept voluntary services, unless...
1. student interns
2. gratuitous services

Employees can't pay a gov't obligation

1. Commanding officers
2. Budget officers
3. Fiscal officers

1. reprimand
2. reduction in grade
3. suspension w/o pay
4. removal

1. UCMJ
2. Administrative action

1. $5,000
2. 2 yrs confinement
Class E felony is knowing and willful

1. FMR w/in 2 weeks - chain of command
2. DFAS immediately - RM Director
3. Flash report 15 days

w/in 14 weeks of initial discovery

w/in 12 months of prelimary review's end

1. GAO
2. Congress
3. The President

the unofficial reservation of funds based on preliminary negotiations, but no obligation permitted without subsequent commitment/certification.

may involve asking DoD to budget funds
Process = PPBES - Planning Programming, Budgeting & Execution System

Planning Programming, Budgeting & Execution System

Program Objective Memorandum

unofficial administrative reservation of funds "fencing off" based on firm procurement requests

certification that funds are available to cover obligations.
Authorizes subsequent to obligation.