Fiscal Law Training for DTC Fund Certifiers

Fund Certification Fund certification represents a statement by the certifying official that funds are available and proper for the use of the funds cited. It means that you are satisfied that: There is evidence that the funds cited exist in the financial system and sufficient funding is available. That the funds are proper relative to the appropriation being cited. Certification authority cannot be delegated to a lower level.

Fund Certification (cont.) DTC fund certifiers require the following: Training in both Appropriation and Fiscal Law Delegation of authority letter from the Commander/Director Signature card on file with DFAS Rock Island Fund certifiers are also responsible for the accuracy and integrity of accounting data cited on obligating documents/transactions

Fiscal law requires that all Federal expenditures are proper to: Types of Violations Fiscal law requires that all Federal expenditures are proper to: Purpose Time Amount

Purpose Statute Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law. The expenditure of an appropriation must be necessary and incident to the proper execution of the general purpose of the appropriation. The expenditure must not be prohibited by law. The expenditure must not be otherwise provided for; it must not fall within the scope of some other appropriation. 31 U.S.C. 1301(a), B-120676 (1954)

Necessary Expense Rule An expenditure is permissible if is reasonably necessary in carrying out an authorized function or will contribute materially to the effective accomplishment of that function. Expenditure bears a logical relationship to the appropriation charged. Expenditure is not prohibited by law Expenditure not covered by another appropriation, especially if there is a specific appropriation for that purpose

Necessary Expense Applications Most common are general operating appropriations: RDT&E and OMA Examples include training, travel, postage, periodicals, meetings, maintenance and equipment

Food “[F]ree food . . . Normally cannot be justified as a ‘necessary expense’ under an appropriation since such expenses are considered personal expenses that government employees are expected to bear from their own salaries.” 72 Comp. Gen. 178

Food Exceptions Award Ceremonies Cultural Awareness Ceremonies Travel Training Conferences Emergencies Other exceptions DoD DGC(Fiscal) memo dated 1 Sept 05

Food at Ceremonies Awards Cultural Awareness Ceremonies Recipients are federal employees or military, publicly recognized and authorized official determines food materially advances recognition of recipient Cultural Awareness Ceremonies Food is intended to make audience aware of culture celebrated, is a sample of that culture’s food and portions do not constitute a meal. 5 U.S.C. 4501, B-301184 Jan. 15, 2004

Food at Training Appropriated funds may be used to cover food costs that constitute a non-severable portion of the registration or attendance fee for a training program. Costs are considered non-severable if billed as a part of the overall cost of the conference. Food costs for training provided by the Government are considered severable. If food costs are a severable part of the registration fee, appropriated funds are available only when necessary for the employee to obtain full benefit of the training 5 U.S.C. 4101, 10 U.S.C. 2013, 39 Comp Gen 119 (1959), 66 Comp Gen 350 (1987)

Food at Conferences Non-Federal Entity DOD may pay or provide reimbursement for food purchased as a non-severable, non-negotiable portion of a registration or attendance fee. If the food or meals is severable, then appropriated funds are available only to the extent: The expenditure is necessary to obtain the full benefit of the meeting or conference Meals and refreshments are incidental to the meeting or conference The employee cannot take the meals elsewhere without missing formal discussions, lectures, or speeches that are an essential parts of the conference 5 U.S.C 4110, 64 Comp Gen 406 (1985)

Food at Conferences – Another Government Agency DOD may pay for food for an employee if the criteria for “conferences sponsored by non-federal entities – severable fee,” are met and: The meeting or conference involves matters of topical interest to multiple agencies and/or non-governmental participants. 5 U.S.C 4110; B-198471, May 1980; B-1288266, Jan 2003

Food at Formal DOD Conferences Food may be purchased at DOD Conferences if ALL these criteria are met: The conference is a formal conference with registration, a published and substantive agenda and scheduled speakers, The conference involves matters of topical interest to actual participants from multiple agencies and/or non-governmental participants, Meals and refreshments are incidental to the overall purpose of the formal conference, Attendance at the meal or when refreshments are provided is important to the host agency to ensure the attendees’ full participation in essential discussions and speeches concerning the purpose of the conference and,

Food at Formal DOD Conferences cont. Food may be purchased only if: The meal and refreshments are part of a formal conference that includes not just the meal and refreshments and discussions or speeches that may take place when the meal and refreshments are served, but also substantial sessions apart from those at which food is served. 5 U.S.C. 4110; B-300826, Mar 2005

Food – Additional Notes Although appropriated funds may be used to purchase food, a host agency may not charge an official registration or other fee from attendees to defray the costs of the conference, including the cost of that food. To the extent that meals that are provided at Government expenses to travelers receiving per diem, the traveler must document receipt of that meal on his or her travel voucher.

Clothing “ . . . every employee of the Government is required to present himself for duty properly attired according to the requirements of his position.” Appropriations are generally not available to pay for personal clothing “reasonably required as part of the usual and necessary equipment for the employee’s work” 63 Comp. Gen. 245, 246 (1984) 35 Comp Gen. 361 (1955)

Clothing Exceptions Official Civilian DOD Uniforms: 10 U.S.C. § 1593 Administrative Expenses Act: 5 U.S.C. § 7903 Special/unusual clothing Item must be for the benefit of the Government, essential to the safe and successful accomplishment of the work, and not solely for the protection/comfort of employee Must involve hazardous duty OSHA Compliance: 29 U.S.C. § 668

Momentos, Promotional Items, Etc. As a general rule, are considered improper because they are considered as “gifts” Legitimate only: As part of a documented, approved Awards program Given to employees for exceptional service or achievement Items of no intrinsic value designed solely to assist in achieving internal agency management objectives Should be modest, promotional item, such as used for marketing purposes Must show that it is a necessary expense

EMERINGING RESULTS 11/14/2018 AWARDS 5 U.S.C. 4503 (Government Employee Incentive Awards Act) authorizes an agency to “pay a cash award to, and incur necessary expenses for the honorary recognition of, an employee . . . “ 10 U.S.C. 1124 authorizes DoD to pay a cash award to, and incur necessary expenses for the honorary recognition of a member of the armed forces for disclosures, suggestions, inventions and scientific achievement. 10 U.S.C. 1125: Military awards for accomplishments. Does not include necessary expense language EMERINGING RESULTS

Unit (Commander’s) Coins Commander’s coins purchased with appropriated funds may only be awarded to soldiers and appropriated fund civilian employees. Should be presented pursuant to a statutorily authorized awards program May only be presented for those unique achievements that further the efficiency and effectiveness of the Army’s mission Must be specifically authorized give coins Official Representation Funds (ORF) should be used to purchase coins for distinguished citizens, military officers and gov’t officials of foreign countries or Prominent Federal (non-DoD), state and local gov’t officials Cannot give coins to contractors ATEC Reg. 672-5, 3 Dec 2001

Time An appropriation is available for obligation for a definite period of time. Agencies must obligate appropriations during this period of availability, or the authority to obligate expires. Government agencies may not obligate funds prior to signature of the appropriation act and receipt of funds from OMB. 31 U.S.C. 1552, 31 U.S.C. 1341(a)(1)(B)

Types of Appropriations RDTE Funds R&D in all fields, to include the physical sciences and engineering. Available for obligation for 2 years* OMA Includes operation and maintenance of all Army organizational equipment and facilities Available for obligation for 1 year Investment threshold limited to $250K or less *Army RDTE limited to 15-month incremental funding

Appropriations- Cont. APA (Procurement) Includes activities related to the procurement, production and modification of Army equipment assets. Available for obligation for 3 years. MCA Includes acquisition, construction, installation and equipment of temporary or permanent public works, military installations and facilities for the Army Available for obligation for five years. Construction projects >$750K or $1.5M for health/safety issues must be financed thru MCA Funds programmed in MACOM line; moved to COE line in year of execution

Appropriations – Cont. 97X Funds This appropriation is for expenses of activities and agencies of DoD (other than military departments), necessary for basic and applied scientific research, development, test and evaluation; advanced research projects as may be designated and determined by the SecDef.

Management of the RDTE Appropriation The government executes the Research, Development, Test and Evaluation program by incremental funding of contracts and other obligations. The incremental funding policy budgets an amount for each fiscal year sufficient to cover the obligations expected during that fiscal year.

Bona Fide Needs Rule Agencies may obligate appropriated funds only for properly incurred expenses of the period of availability of the appropriation. That is, the requirement must represent actual bona fide needs of the acquiring activity arising during the period of availability of the funds proposed to be used for the acquisition. 31 U.S.C. 1502 (a)

Crossing Fiscal Years: Contracted Services 10 USC 2410a – funds available for a fiscal year may be obligated for the total amount of a contract for the procurement of severable services of the lease of real or personal property for a period that begins in one fiscal year and ends in the next if the contract period does not extend beyond one year

CONTINUING RESOLUTIONS Legislation permitting operations in absence of an appropriation Generally at current or lower rate General provisions of prior year continue to apply No new starts

What is a New Start? Not defined by statute FMR 060401.E – “A program, subprogram, modification, project, or subproject not previously justified by the Department and funded by the Congress through the normal budget process is considered to be a new start.” Typically, there are no “new starts” in the DTC institutional programs.

Amount Statute An officer or employee may not make or authorize an obligation or expenditure that exceeds an amount available in an appropriation or fund. An officer or employee may not involve the government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law. 31 U.S.C. 1341(a)(1)(A) and (B)

EMERINGING RESULTS 11/14/2018 Anti-deficiency Act Prohibits any officer or employee of the United States from making or authorizing: Expenditure or obligation exceeding an appropriation or fund an apportionment or allocation Obligating the Government before an appropriation is made unless authorized by law Accepting voluntary services except in emergencies involving human life and property or specific statutory authority Augmenting from other sources (31 USC 1341, 1517, and 3302; 10 USC 1588) EMERINGING RESULTS

Augmentation An agency may not augment (increase) its appropriation from outside sources without specific statutory authority An unauthorized transfer is an improper augmentation for the receiving appropriation Charging a general appropriation when a specific appropriation is exhausted improperly augments the specific appropriation

Summary DTC fund certifiers are responsible for availability and proper use of funds Fiscal law requires that Federal expenditures are proper to: Purpose Time Amount Multiple appropriations available and executed within DTC Different rules for each appropriation Funds must be properly managed to prevent ADA violations Seek assistance from Legal/JAG/HQ DTC when needed!!