US Constitution Art 1 Section 9 CL7 Identify the Principles of Fiscal Law 1 Enabling Learning Objective Action Identify the Principles of Fiscal Law Conditions In a classroom environment given a four hour time frame students will work as a membe ID: 720900
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Slide1
U. S. Constitution, Art. I, Sec 9, provides that “No Money shall be drawn from the Treasury but in Consequence of an Appropriation made by Law….”
U.S. Constitution, Art 1, Section 9, CL7
Identify the Principles of Fiscal Law
1Slide2
Enabling Learning Objective
Action: Identify the Principles of Fiscal Law
Conditions: In a classroom environment given a four hour time frame; students will work as a member of a small group/ individual; using DFAS-IN Regulation 37-1, DFAS-IN 37-100, DoD FMR Volume 14, Fiscal Law Deskbook, and the slide presentation for immediate referencing. Students are also required to participate in small group
discussions with an awareness of the Operational
Environment
(
OE) variables and factors. Standard: Identified the Principles of Fiscal Law. Identified the Principles of Fiscal Law. Students will be assessed within 80% accuracy by demonstrating the ability to define the authorization act, appropriations act, purpose-time-amount statutes, bona fide need rule, and the antideficiency act.
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Health Law; Fiscal Fights Video
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The Foundation of Fiscal Law
Authorization ActSubstantive legislation enacted by Congress that establishes or continues the legal operation of a Federal program or agency; power given by the ConstitutionRelatively, DoD can not expend or obligate appropriations
Provides no obligation authorityAppropriations ActLegal Basis for Withdrawing Funds From the Treasury
May Contain Specific Provisions for Specific Expenditures
Provides obligation authority
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Underlying Principles
(Fiscal Limitations)Purpose
(31 USC 1301)Obligation for purpose for which money was appropriated by CongressTime
(31 USC 1502)
Obligation during period of availability
Amount
(31 USC 1341 1342/1517)Sum of money appropriated to support obligation5Slide6
Purpose Statute
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))
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Purpose Statute; cont.
Appropriation provides the dollars; this is considered the opening of the checkbookAuthorization
and Legal Reference Texts clarify the appropriationTri-Part Validation Used to validate Purpose StatuteExpenditure must be for the specific purpose or necessary and incident to proper execution of general purpose of appropriation
Must not be prohibited by law
Can not be provided for within the scope of another appropriation
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Time Statute
Unexpired, Expired, or ClosedCongress sets time limits by appropriation
President starts clock when he signs appropriation actObligation must occur within the appropriate period
Fiscal year of the appropriation designated by 1 Oct XX to 30 Sep XX
Adjustments to appropriation can be made up to 5 years after appropriation moves to expired stage
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Amount Statue
Items <$250,000 (O&M)Items >$250,000 (Procurement)
Minor construction projects < $750,000 (O&M)Maintenance and repair >$750,000 (O&M)Projects >$1,500,000 (MILCON)
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AppropriationsSlide11
Appropriations continuedSlide12
Categories of Appropriations
Operation and Maintenance (O&M) - 2020 - Annual - Day to day operations
Military Personnel (MILPERS) - 2010 - Annual - Soldier pay and entitlementsProcurement – 2031 thru 2035 - 3 years - Purchase of various high value items such as weapons, ammunition, missiles, etc
Military Construction Army (MILCON) - 2050 - 5 years - New or continuing construction
Research, Development, Test & Evaluation (RDT&E) - 2040 - 2 years - Future system’s RDT&E
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Bona Fide Need Rule
Focus on timing of the obligation and current need of the agencySpend current
year dollars for current year needsSupplies must be needs of period or consumed in period
Exceptions are Inventory Delivery or Lead time, Stock Level
“
only for payments or expenses properly incurred during the period of availability, or to complete contracts properly made during the period of availability”
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Common Issues - Clothing
Generally considered a personal expenseExceptions:If not an ordinary purchase (cold weather gear)
Essential to successful completion of workTuxedoes for Secret ServiceSuits for SOF on missionNeed for hazardous dutySafety shoes
Used as a Award/RewardT shirts/Hats for sports event winner (< 5% of participants)
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Common Issues - Food
May not use appropriated funds for meals for government workers at duty station
Generally a personal expense - Paid salaryExceptions:Light refreshments at government sponsored conferences for those attendees in a travel status and/or facility rental includes cost of foodgao-ada-09-03.pdf
Award Ceremonies can have “light refreshments”
Not for a Military Personnel Award Ceremony
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Common Issues - Food; cont.
Exceptions cont:Training when necessary to achieve training objective - not for convenience
Ethnic or cultural awareness eventsCivilian award/reward meal ($20 limit)Bottled water may be procured when a building’s water supply is deemed unwholesome or un-potable
ADA bottle water -05-11.pdf
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Common Issues - General
Decorations - When consistent with the work related objectives, placed in common area, and not for personal use, i.e., X-mas cards are a no goBusiness Cards - Only allowed for those that
regularly deal with public or outside organizations, i.e., recruiters, contractors, investigatorsEntertainment - For equal opportunity/ethnic programsUnit T-shirts - Not allowed
Mementos - Not allowed Cell phones - Can reimburse for official phone call charges
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Common Issues - General; cont.
Fines and Penalties - Can reimburse for fines directly associated with official duties, i.e., contempt fine by court not testifying due to regulations/agency instructions Parking tickets not covered
Licenses and Certificates - Can pay if duties directly benefit the government or State or local law requires position to have it CDFM: interpretation of U.S.C. 5757, 1112 does allow for test reimbursement for civilians
Awards/Rewards - May be given
Unit Coins - Can buy coins for awards issued to individual on a one time basis for significant accomplishment or competition
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Common Problems - Unauthorized Commitment
Only an authorized individual with a warrant can procure for the government
If any unauthorized person enters into an agreement to purchase goods or services for the government and the government accepts the goods or services, the agreement must be ratified for payment to occurRatification is the act of making the agreement good Must be performed by a Contracting Officer after a legal review
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Antideficiency Act
Prohibits government employees from:Making or authorizing expenditures or obligations:
In excess of amount available in appropriation, apportionment, or allotment In advance of an appropriation, apportionment or allotment in violation of the Bona Fide Needs rule
Accepting voluntary services
wrong appropriation gao-ada-05-13.pdf
Using military vehicles for personal use
I.E. - TMP vehicles used for domicile to duty transportation20Slide21
Antideficiency Act - Close calls
Officials may avoid ADA violations if:Proper funds were available at the time of the erroneous obligation, i.e., OMA obligated for a MILCON project and where MILCON funds were availableProper funds were available continuously from the time of the erroneous obligation; and
Proper funds were available for the agency to correct the erroneous obligation, i.e., MACOM or HQDA can cover it
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Antideficiency
Act PenaltiesAdministrativeUp to and including, when circumstances warrant, suspension from duty without pay or removal from office.Criminal: Willful/Knowing Violation$5,000 fine2 years imprisonment
Or bothNO RELIEF for an ADA ViolationSlide23
Critical Thinking
How might you use this information in the future?
How else could you use this information?
How can you apply newly learned information in current or future duty positions?
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Practical Exercise
Brainstorming
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Enabling Learning Objective
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Action: Identify the Principles of Fiscal Law
Conditions:
In a classroom environment given a four hour time frame; students will work as a member of a small group/ individual; using DFAS-IN Regulation 37-1, DFAS-IN 37-100, DoD FMR Volume 14, Fiscal Law Deskbook, and the slide presentation for immediate referencing. Students are also required to participate in small group discussions with an awareness of the Operational Environment (OE) variables and factors. Standard: Identified the Principles of Fiscal Law. Identified the Principles of Fiscal Law. Students will be assessed within 80% accuracy by demonstrating the ability to define the authorization act, appropriations act, purpose-time-amount statutes, bona fide need rule, and the antideficiency act. Slide26
Appendix A
Assessment Plan
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Appendix B
Presentation Outline
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Appendix C
Article: Doing the Right Thing – Fiscal Law Tips
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