Financial Management & Re-programming Flashcards
Define Budget Authority
Budget Authority is the authority granted by appropriation law to enter into obligations that will result in immediate or future outlays
Define Commitment
A commitment is an administrative reservation of funds.
Define Obligation
An obligation is a legal reservation of funds.
Define Expenditure
An expenditure is the issuance of a Government check.
Define Outlay
the check clears the Treasury Department and funds are actually paid out
Difference between expired funds and cancelled funds
Funds remain in an “expired account” for 5 years after obligation period ends
Expired funds…
…May be used for expenditures or adjustments on existing obligations
…Retain all their fiscal identity - appropriation, fiscal year, and amount
After 5-year “expired” period has passed, the funds are cancelled and cannot be used.
Three major legal provisions that concern funds execution.
Anti-deficiency Act
Misappropriation Act
Bona Fide Need Rule (also known as the “time statute”)
Congress recognizes the need for some flexibility in budget execution, and provides DOD with a method to make limited changes in its appropriated funding.
Reprogramming
Four reasons that requires prior approval from Congress for reprogramming authority
Moving funds between appropriations
Increasing quantities of major systems
New starts
Designated special interest items
How long funds stay in an expired account
5 years
Permits the use of funds for purposes other than those intended by Congress at the time originally appropriated
Reprogramming
most reprogramming actions are approved at the Service or agency level using
below threshold reprogramming
realigning funds between activities that are below the level of control for that appropriation category does not require a reprogramming action, and that this type of funds transfer can be approved by the
Program Manager
Any remaining outlay requirements after funds have been canceled must be paid for using
Current Year Funds
