ADMINISTRATIVE CONTROL OF FUNDS SHOW SLIDE 1: Administrative Control 0f Funds SECTION I. ADMINISTRATIVE DATA   All Courses Including This Lesson Course Number Version Course Title 01 Planning Programming Budget & Execution Course (PPBE) Task(s) Task Number Individual Taught(*) or Academic Hours The academic hours required to teach this lesson are as follows: Resident Technique of Delivery Hours Method of Instruction 805A-AJBPE111 Introduction 0.1 (CO) Conference/Discussion Large Group Instruction 0.8 (CO) Conference/Discussion Performance Group Test 2.5 (TE) Test Performance Group Test 0.5 (TR) Test Review Summary 0.1 (CO) Conference/Discussion Test Lesson Number Testing(to include test review) Hours -0 hrs Lesson Number - Prerequisite Lesson(s) Lesson Number Lesson Title Administrative Control 0f Funds  Clearance Access Security Level: Unclassified Requirements: There are no clearance or access requirements for the lesson. Foreign Disclosure Restrictions FD5. This product/publication has been reviewed by the product developers in coordination with the Fort Jackson Soldier Support Institute foreign disclosure authority. This product is releasable to students from all requesting foreign countries without restrictions. Instructor Requirements Must meet physical qualifications IAW AR 600-9. Materials Required Instructor Materials: Lesson plan slides, DFAS-IN Regulation 37-1, DFAS-IN-MANUAL 37-100-FY, Instructor copy  Student Materials: Admin Control of Funds Summary Sheet Classroom, Training Area, and Range Requirements General Purpose Classroom - 25 Seats Instructional Guidance Note: Before presenting this lesson, instructors must thoroughly prepare by studying this lesson and identified reference material. Also, provide the students with situational awareness of the Operational Environment (OE) variables and actors. Proponent Lesson Plan Approvals Name Rank Position Date Harris, Norman CTR Writer/Developer xx-xxx-xxxx Bonig, Reid GS-12 Chief - FMITD xx-xxx-xxxx Davis, Bobby LTC FM-DOT xx-xxx-xxxx Zellars, Eric COL Commandant xx-xxx-xxxx Show Slide 2 NOTE: Incorporate the political, military, economic, social, information, infrastructure, and physical environment and time (PMESII&PT) into each lesson and classroom work as appropriate. Instructor will illustrate them with appropriate examples from the Current Operating Environment (COE) as it pertains to the lesson. Motivator: As a resource manager, it is important to know where and how your organization fits into Planning, Programming, Budgeting and Execution process. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Terminal Learning Objective Action: Conditions: Standard: Apply Administrative Control of Funds Procedures. Given a summary sheet containing DFAS - IN Regulation 37-1, DoDFMR Vol 14 Ch 2, and slides. With 80% accuracy: Determine the regulatory provisions of funds control, title 31; and identify funds control responsibilities. SHOW SLIDE 2: STATE TERMINAL LEARNING OBJECTIVE Safety Requirements:  Everyone is responsible for safety. A thorough risk assessment must be completed prior to every mission or operation. Risk Assessment Level: Low Environmental Considerations: NOTE: It is the responsibility of all Soldiers and DA civilians to protect the environment from damage. Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Evaluation: Students will take a comprehensive test at the end of Week 1. Students must score 80% or higher and International officers must score 70% or higher. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Fund Control Definition Fund Control is the authority exercised over the receipt, distribution, use, and management of appropriations and funds administered by DoD. SHOW SLIDE 3: Fund Control Definition DEFINITION. Fund Control is the authority exercised over the receipt, distribution, use, and management of appropriations and funds administered by the Department of Defense (DoD). 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Why Fund Control? Must be granted specific authority to spend public dollars Authority limited by: Purpose Time Amount It’s the LAW SHOW SLIDE 4: Why Fund Control? 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Title 31, U.S. Code 1517 No officer or employee of the U.S. government shall authorize or create any obligation or make any expenditure: (a) in excess of an apportionment...or (b) in excess of the amount permitted by regulation SHOW SLIDE 5: Title 31, U.S. Code 1517 Part of the Anti-Deficiency Act 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Title 31, U.S. Code 1512 Any appropriation subject to apportionment shall be distributed by months, calendar quarters...or other time periods, or by activities, functions...or by a combination thereof.... SHOW SLIDE 6: Title 31, U.S. Code 1512 Part of the Anti-Deficiency Act 1999 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Fund Control Regulation Antideficiency Act requires the DoD agencies issue a Fund Control Regulation: DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation DFAS-IN 37-1 SHOW SLIDE 7: Fund Control Regulation The Antideficiency Act requires that your agency head prescribe, by regulation, a system of administrative control of funds. The system is also called the fund control system and the regulations are called fund control regulations. Agency fund control regulations are in effect only when approved by the Director of OMB. The guidance comes from DFAS-IN Reg 37-1 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Penalties Administrative Discipline: Letter of Reprimand Suspension without pay Removal from the office Criminal Penalties: Up to $5000 fine Up to 2 years imprisonment, or Both SHOW SLIDE 8: Penalties Disciplinary actions and penalty provisions for violations.   Administrative discipline. Letter of reprimand. Suspension without pay. Removal from the office. Penalty provisions for a knowing and willful violation: Up to $5,000 fine, or Not more than two years imprisonment, or Both 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Responsibility for Fund Control Installation Commander Delegation of fund certification authority In writing To a named individual Commander still has overall responsibility SHOW SLIDE 9: Responsibility for Fund Control The installation commander is responsible for ensuring that no obligation or expenditure is authorized or incurred in excess of available funds.   The installation commander may delegate fund certification authority. These delegations must be in writing to a named individual. However, the commander still maintains overall responsibility. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Fund Control Levels of Fund Control Centralized Decentralized Commitment Accounting required for all appropriations Formal Informal SHOW SLIDE 10: Fund Control   4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Centralized Fund Control Funds normally certified by the budget officer Maximizes control over funds: Precludes over-distribution or over-obligation Used in tight fund situations (i.e., year end) SHOW SLIDE 11: Centralized Fund Control Centralized Fund Control: Fund certification is handled by the Director of Resource Management (DRM) in order to maximize control over funds. It is mainly used at year end, when tighter control of funds is needed.   4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Decentralized Fund Control Funds certified by budget/ activity directors Follow rules of delegation of authority Requires record keeping below the DRM level SHOW SLIDE 12: Decentralized Fund Control Decentralized Fund Control: Fund certification is delegated to responsible individuals, primarily Program/Activity Directors within organizations or units. A requirement exists to maintain records below the DRM level. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Formal Commitment Accounting Requires recording and control of commitments through the general ledger. Ensures maximum accounting control. GFEBS does not do formal commitment accounting. SHOW SLIDE 13: Formal Commitment Accounting Formal commitment accounting requires that commitments be posted in GFEBS using T-Code FMY1. This achieves maximum accounting control within the financial records. GFEBS does not record commitments or do formal commitment accounting. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Principles of Fund Control Enter limitations into accounting records immediately. Record obligations promptly. Reconcile commitments and obligations. Pay bills promptly. Conduct audits. SHOW SLIDE 15: Principles of Fund Control Enter ceilings into accounting records immediately.   Record obligations promptly. Reconcile commitments and obligations. Pay bills promptly. Perform real time audits. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL How Violations Occur Over-distribution of funds. Contract or obligation in advance of appropriation. Obligations exceed AFP. Administrative errors. Failure or delay in posting. Withdrawal of funds. Inaccurate estimates for contingent liabilities. SHOW SLIDE 16: How Violations Occur Circumstances surrounding the occurrence of a possible violation may include:   Over distribution of funds. Contract or obligation in advance of appropriations, or without adequate funding authority. Obligations or expenditures in excess of total available funds. Accounting, clerical, recording, or reporting errors resulting in an actual over-obligation or over expenditure. Deliberate failure or delay to post to accounting records in order to avoid an over-obligation or over expenditure. Withdrawal of funds in excess of available balances. Funds exceeded due to inaccurate estimates or failure to reserve sufficient funds. If a violation occurs, the receipt of more funds or a change in a limitation before the end of the accounting period does not relieve the violation or eliminate the reporting requirements. Any responsible individual learning of a possible violation of Title 31 U.S. Code 1517, will notify the commander concerned immediately. The commander must investigate the possible violation. The Assistant Secretary of the Army, Financial Management and Comptroller (ASA (FM&C)) reviews the resulting report and determines whether or not a violation exists. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

FINANCIAL MANAGEMENT SCHOOL Command Actions Good Fund Control Delegate fund certification authority. Train personnel. Ensure project validity. Enforce disciplinary measures: For violations of internal controls. For violations of Title 31. SHOW SLIDE 17: Command Actions Good Fund Control To prevent violations, the following actions should be taken at the installation level:   Delegate fund certification authority to responsible individuals. Train all personnel involved in fund control. Establish appropriation and project controls to ensure validity of projects and project costs. Take appropriate disciplinary action for noncompliance with internal control procedures and violations of DFAS-IN Regulation 37-1 and Title 31 U.S. Code 1517. 4/22/2019 FINANCIAL MANAGEMENT SCHOOL

Check On Learning Q. Fund Control is limited by what three things? Q. What are the two levels of Fund Control? Slide 24 Check on Learning 17

Terminal Learning Objective Action: Conditions: Standard: Apply Administrative Control of Funds Procedures. Given a summary sheet containing DFAS - IN Regulation 37-1, DoDFMR Vol 14 Ch 2, and slides. With 80% accuracy: Determine the regulatory provisions of funds control, title 31; and identify funds control responsibilities. SHOW SLIDE 18: Summarize and restate Terminal Learning Objective 4/22/2019 FINANCIAL MANAGEMENT SCHOOL