Fiscal Law- Exam Questions and Answers

Fiscal Law - ANSWER Body of law governing use of federal funds Fiscal Year - ANSWER 1 October ‐ 30 September Period of Availability - ANSWER Most appropriations available for obligation for limited time period Fu ...

Fiscal Law - ANSWER Body of law governing use of federal funds Fiscal Year - ANSWER 1 October ‐ 30 September Period of Availability - ANSWER Most appropriations available for obligation for limited time period Funds not obligated in timely manner generally expire Obligation - ANSWER Transaction legally binding the government to make payment E.g., place an order, award a contract, receive services Budget Authority - ANSWER Federal law provides to incur obligations up to specified amount National Defense Authorization Act (NDAA) - ANSWER Authorizes programs, but doesn't provide obligation authority E.g., end strength; DoD FM Certification Program; government lodging program (i.e., Integrated Lodging Program) Appropriation Act - ANSWER Statutory authorization "to incur obligations and make payments out of the Treasury for specified purposes Continuing Resolution Authority - ANSWER In the absence of a regular appropriations act ‐ provides budget authority to continue operations Affirmative Authority - ANSWER "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. ‐ United States v. MacCollom, 426 U.S. 317, 321 (1976)L Governed by: • The U.S. Constitution • Legislative Authorization and Appropriations Acts • Judicial Court Rulings and Comptroller General decisions Purpose - ANSWER "Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law." 31 U.S.C. 1301(a) Three part expenditure test ... Must be for a statutory purpose or necessary/ incident to the general purpose of the appropriation Not prohibited by law Not otherwise provided for in another appropriation Purpose - ANSWER Necessary/incident to general purpose of the appropriation... • Congress can't list everything....so agencies have reasonable discretion... • Must be reasonably necessary • Materially contribute to mission accomplishment? • Or is it nice to have? • Doesn't have to be only or best way • Determinations are fact, agency, and purpose specific Typical Questionable Expenses for Purpose - ANSWER • Clothing • Food ‐Exceptions ‐Formal Meetings and Conferences ‐Training ‐Award Ceremonies • Entertainment • Decorations • Business Cards • Fines and Penalties • License and Certificates • Miscellaneous Personal Expenses Fiscal Law Analysis - ANSWER Purpose, time, and amount Time - ANSWER Agencies may not obligate in advance of... An enacted appropriation Receipt of funds from higher headquarters Is appropriation available... When goods/services needed? Obligation made or adjusted? Bona Fide Need Rule ‐ Service Contracts Bona Fide Need Rule - ANSWER • Services are the bona fide need of the fiscal year in which they are performed 1) Severable Contracts ‐ May start in one FY and end in the next FY, if contract period does not exceed 1 year 2) Non‐Severable Service Contract ‐ Represents a single task or activity Amount - ANSWER • Is enough budget authority ‐ from the proper FY ‐ available? • Does requirement exceed O&M thresholds? • Procurement ‐ $250K • Minor Construction ‐ $1M ($4M) Anti-Deficiency Act - ANSWER No DoD official shall authorize or create any obligation or make any expenditure beyond the amount permitted under any statutory limitation that modifies or restricts the availability of funds Anti-Deficiency Act - ANSWER Prohibits any government officer or employee from the following: Making or authorizing an expenditure or obligation in excess of the amount available in an appropriation Incurring an obligation in advance of an appropriation Making or authorizing expenditures or incurring obligations in excess of formal subdivisions of funds Accepting voluntary services (with some exceptions) Anti-Deficiency Act Voluntary Services - Exceptions - ANSWER • ONLY for emergencies • Imminent threat to the safety of human life or the protection of property • OR when otherwise authorized by law, e.g. • In support of alternative dispute resolution • Student intern program • Military departments....for medical care, museums, natural resources programs, or family support activities • Feed and Forage Act (1861) When a Purpose Statute Violation May Not be a Violation - ANSWER Proper funds were available... • At the time of the erroneous obligation • When the agency discovered the erroneous obligation and corrected it Most Common Violations - ANSWER • Exceeding • O&M limits for minor construction • Fund availability • O&M limits for equipment Expense versus investment threshold rule • Obligating • In advance of funds being made available Sources of Violations - ANSWER Not following established internal controls and standard operating procedure Inadequate internal controls Failure to record obligations in timely manner Inadequate supervisory involvement/oversight Lack of appropriate training Preventing Violations - ANSWER • Proper education and effective training • Verify internal controls are in place ‐ Ensure adequate internal controls and operating procedures are in place and followed ‐ Use MICP to assess reliability of internal control systems and employee internal management control accountability • Document Standard operating procedures Reporting/Investigating Violations - ANSWER An individual learning of or detecting a potential ADA violation must report the violation within 10 working days through their chain of command Report potential violations to the Financial Management organization of the Major Command (MAJCOM), Field Operating Activity (FOA), or Direct Reporting Unit (DRU) Preliminary review determines if violation occurred - ANSWER If NO Process stops once Preliminary Review Official (PRO) reports to HQ/AF & SAF/FM concurs If YES Investigating Officer (IO) appointed Determine responsibility Recommend corrective action Investigating Potential Violations Available Sources/References - ANSWER Staff Judge Advocate - legal advice U.S.C. Title 31, Sections 1341, 1342, 1349‐1351, 1517‐1519 DFAS/AF Interim Guidance DoDFMR 7000.14‐R, Vol. 14, Ch 2 AFI 65‐608 Sanctions for ADA Violations - ANSWER Administrative Discipline Suspension without pay; removal from office Penal Discipline A knowing and willful violation of the ADA is a Class E felony $5,000 fine Two years imprisonment Both Disbursing Officer - ANSWER • Accountable for illegal, improper, incorrect payments even when they relied upon others who may ha