1. Identify the Principles of Fiscal Law
U.S. ARMY SOLDIER SUPPORT INSTITUTE
Noncommissioned Officer Academy - Senior Leaders Course
542-36B40-C46 - Financial Management
ACB6B103 – Identify the Principles of Fiscal Law
SCOPE
Identifying the Principles of Fiscal Law is a lesson designed to examine and explain the underlying principles and foundation of navigating the funds management profession as it relates to congressional law. At the conclusion of this lesson, students should be able to define/ describe the Authorization Act, the Appropriations Act, the Antideficiency Act, the Bona Fide Need Rule, the Purpose Statute, the Time Statute, and the Amount Statute. This lesson should also assist Financial Managers with understanding the relationship between the execution of budgetary power and the congressional law that manages decisions made by Resource Managers. Identify the Principles of Fiscal Law enhances knowledge's and skills gained in ELO and supports learning objectives preferred to be achieved in TLO 1.0.
Method of Instruction: Discussion
Educational Outcomes:
Soldiers-Valued members of the team who exhibit character, accountability, resilience, adaptability, initiative, and sound judgment while honorably serving in a Division/ASCC G-8 or SRC 14 delivering FM support.
Doctrinally Sound-Competently delivers timely, accurate, and relevant FM support.
Technically Capable-Demonstrate the capabilities and perform the basic functions of FM enabling systems.
-Understands the FM’s role in accomplishing the Division/ASCC G-8 or SRC 14 mission in support of Unified Land operations.
Critical and Creative-Able to solve sometimes ambiguous problems using logical thinking and sound reasoning to develop viable recommendations or solutions.
Safety Requirements: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD Form 2977 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the work/rest cycles and water replacement guidelines IAW TRADOC Regulation
Instructional Guidance: Throughout this lesson, solicit from students the challenges they experienced in the operational environment (OE) and what they did to resolve them. Encourage students to apply at least one of the critical variables: Political, Military, Economic, Social, Information, Infrastructure, Physical Environment and Time (PMESII-PT).
21st Century Soldier Competencies:
1. Character and accountability
4. Lifelong learner (includes digital literacy)
7. Critical thinking and problem solving
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 1

2. 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 , 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.
2. 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 , 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.
Standards: 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.
Learning Domain: Cognitive
Level of Learning: Receiving
3. ASSIGNED STUDENT READINGS
Article – Doing the Right Thing – Fiscal Law Tips
See Lesson Advance Sheet
4. INSTRUCTOR ADDITIONAL READING(S)/MATERIAL
Fox, Don W. “Doing the Right Thing – Fiscal Law Tips”. (2006): 1-7. (7 pages)
5. TRAINING AIDS
This lesson is taught in a small group classroom setting with personal computer systems, Panasonic projection televisions, Mr. Podium MP42 Lectern, indoor speakers, Touch panel TPS-3100I Crestron, Ceiling mountable projector, internet access, and a dry erase/white board.
Appendix A: Assessment Plan
Appendix B: Slides
Appendix C: Article; Read-ahead
6. CONDUCT OF LESSON
Lesson Timeline:
35 minutes Article Facilitation
05 minutes Concrete Experience
15 minutes Publish and Process
85 minutes Generalize New Information: Introduce the lesson
40 minutes Break
10 minutes Develop
50 minutes Apply
Instructor Note: Adjust the Lesson Timeline as necessary to facilitate class schedule, your teaching style, and student learning. There are no time constraints during any particular phase of the ELM model.
b. Article Facilitation (35 Minutes): Students should receive the article for this lesson the day prior in order to be prepared for the facilitation of this portion of the lesson.
Facilitating an article is a maximum participatory event and the facilitator should use their abilities to create a dynamic discussion in the classroom. The goal is to inspire a level of learning that will prepare the students for ensuing lesson. The facilitator should ask open-ended questions that will influence the students to interact.
These are example questions to ask when facilitating:
The main purpose of the article is?
The Key question that the author is addressing is?
The most important information in this article is?
The key concepts we need to understand in this article are?
The main assumptions underlying the author’s thinking are?
What is the point of reading this article and how can it improve critical thinking? 2

3. Health Law; Fiscal Fights Video
c. Concrete Experience (05 minutes)
Instructor Note: To open the video in presentation/ slide show mode click on the television. If not in presentation mode, right click on the television and select “Open Hyperlink”.
The concrete experience serves as a trigger of past experience, knowledge, and it is also a focusing mechanism for the lesson that follows to support the teaching of new content. The collective intent is to force the student to connect to the lesson and is the precursor to intuitive thinking of experiential learning model.
Allow the students to watch the video “Health Law; Fiscal Fights Video”;
d. Publish and Process (15 Minutes)
During this phase of the Army Learning Model the instructor will solicit responses of the students reaction to the concrete experience. The students will reflect on their experience and knowledge of the topic and they will begin a reconciliation of where they are and, if successful, where they will be at lesson end.
The critical portion of this part of the ELM process is to force the students to reflect. As the instructor you can achieve this by asking a series of thought influencing questions, for example:
What could have happened to the Affordable Care Act if it went unfunded?
What are some of the interrelationships that can be identified between the Authorization Act and Affordable Care Act?
How did the video make you feel about the relationship of politics, fiscal authority, and the law?
Having the students think critically is the ultimate goal of publish and process. Force the students to explain their answers; meaning, how and why did they derive at the solution to the questions.
As the instructor, you should be also looking for responses that will help the students transition from publish and process to generalize new information. During this process, remind the students of lesson objectives as they transition from publish and process into generalize new information.

4. The Foundation of Fiscal Law
Authorization Act
Substantive legislation enacted by Congress that establishes or continues the legal operation of a Federal program or agency; power given by the Constitution
Relatively, DoD can not expend or obligate appropriations
Provides no obligation authority
Appropriations Act
Legal Basis for Withdrawing Funds From the Treasury
May Contain Specific Provisions for Specific Expenditures
Provides obligation authority
e. Generalize New Information (85 minutes)
The National Defense Authorization Act is a United States Federal Law that specifies budget and expenditures of the United States Department of Defense. Under this act, Congress authorizes the purpose of appropriations. The Appropriation Act is a statute under the jurisdiction of the House and Senate Appropriations Committees that generally provides the authorization for Federal agencies to incur obligations and make payments out of the Treasury for specified purposes.
Note, some Federal programs are consider mandatory programs for example; Social Security Benefits. Mandatory programs are not required to have additional legislation (Appropriations Act) for spending to occur. The authority to incur obligations/ expenditures is included in the authorization legislation.
Congress has the power to tax and appropriate dollars for the US Treasury. Congress is the only entity that can provide legal authority for the Federal Government to incur obligations/ expenditures. The Department of Defense cannot incur obligations until Congress passes a Continuing Resolution Authority and/or the President has signed the Federal Budget Bill. 4

5. Underlying Principles (Fiscal Limitations)
Purpose (31 USC 1301)
Obligation for purpose for which money was appropriated by Congress
Time (31 USC 1502)
Obligation during period of availability
Amount (31 USC /1517)
Sum of money appropriated to support obligation
e. Generalize New Information (85 minutes); cont.
The Purpose Statute does not require Congress to specify every item of expenditure in an appropriation act; agencies have reasonable discretion to determine how to accomplish the purpose of an appropriation. An appropriation for a specific purpose is available to pay expenses necessarily incident to accomplishing that purpose.
An appropriation is available for obligation for a definite period of time. An agency must obligate funds within their “period of availability”. Expired funds retain their fiscal year identity for five years after the end of the period of availability. During this time, the funds are available to adjust existing obligations or to liquidate prior valid obligations, but not incur new obligations. There are some circumstances where the law allows for exemptions to the period of availability rule which are; Protests Terminations for Default, Terminations for Convenience; pursuant to a court order or agency determination of erroneous award.
Under 31 U.S.C. § 1341 a government agency may not make or authorize an obligation or expenditure in excess or in advance of the amount in an appropriation of fund. Under 31 U.S.C. § 1517 a government agency may not make or authorize an obligation or expenditure in excess of an apportionment or allocation. 5

6. 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))
e. Generalize New Information (85 minutes); cont.
Note the cartoon and what is taking place; funds authorized and appropriated for specific expenditures must be strictly used for that said purpose.
Appropriations shall be applied only to the objects for which the appropriations were made except as otherwise provided by law. (31 U.S.C (a)). Appropriations provide the funds for the authorizations. Legal history provides clarification about the appropriations. To validate expenditures, each Resource Manager should be asking themselves some critical questions:
Does the expenditure apply to the specific purpose; or is the expenditure necessary and incident to proper execution of the general purpose of appropriation?
Is the expenditure prohibited by law?
Is the expenditure provided for within the scope of another appropriation?
Using these basic methods will assist Resource Managers in the execution of funding the force. Failure to adhere to these general principles violates the Anti-deficiency Act which will be discussed further on in this lesson. 6

7. Purpose Statute; cont.
Appropriation provides the dollars; this is considered the opening of the checkbook
Authorization and Legal Reference Texts clarify the appropriation
Tri-Part Validation Used to validate Purpose Statute
Expenditure 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
e. Generalize New Information (85 minutes); cont.
This is the most important restriction on spending; where more than 90% of the fiscal violations occur. In fact, as a previous Comptroller General made clear more than a century ago in referring to the Purpose Statute, "It is difficult to see how a legislative prohibition could be expressed in stronger terms. The law is plain, and any disbursing officer disregards it at his peril”. The law may be plain, but the interpretations and complications can be confusing. By purpose, we mean using money for the purpose intended by Congress. As you recall from the Foundations Section, the Constitution gives Congress the power of the purse:
Understanding the intended purpose is simple to discern when the appropriation is for something specific, such as procurement of aircraft—it is clear what to purchase. In instances of lump sum appropriations it can be extremely complicated for Resource Managers to appropriate in the correct manner. Congress doesn’t specifically inform the force on how exactly to spend lump sum appropriations, and therefore we have a possibility of obligating and disbursing funds for the wrong purpose.
Another tool we can apply to budget expenses is the Necessary Expense rule. It states that “an expenditure is permissible if it is reasonably necessary in carrying out an authorized function or will contribute materially to the effective accomplishment of that function”. This rule helps Resource Managers further define or determine the purpose statute. If an expense is reasonable and necessary to perform the intent of an appropriation, it is legitimate. Use this rule when an expense may seem questionable.
Standard for measuring the propriety of a particular expenditure
Reasonable and necessary to carry out an authorized function
Material to the effective accomplishment of that function 7

8. Time Statute Unexpired, Expired, or Closed
Congress sets time limits by appropriation
President starts clock when he signs appropriation act
Obligation 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
e. Generalize New Information (85 minutes); cont.
An appropriation is available only for a certain time, after which the authority to obligate expires. Congress has the right to limit its appropriations to particular times as well as to particular objects, and when it has clearly done so; its intent expressed in the law should be implicitly followed." The placing of time limits on the availability of appropriations is one of the primary means of congressional control. By imposing a time limit, Congress reserves to itself the prerogative of periodically reviewing a given program or agency’s activities.
One of the key principles of fiscal law and time is that government agencies may not obligate money before they have it. Here is where agencies can get into trouble: they count on the appropriations act being signed into law and having that money available to spend.
First, let’s look at some key definitions:
Current (unexpired) appropriations: monies whose availability for new obligations has not yet expired under the terms of the governing appropriations act.
Expired appropriations: funds whose availability has expired for new obligations, but which are available to adjust and liquidate previous obligations.
Closed (or cancelled) appropriations: funding that is no longer available for any purpose.
On the basis of time (duration), there are three types of appropriations:
Annual appropriations (also called fiscal year or one-year appropriations) are made for a specified fiscal year and are available for new obligation only during the fiscal year for which made. Routine activities of the federal government are, for the most part, financed by annual appropriations. All appropriations are presumed to be annual appropriations unless the appropriations act expressly provides otherwise.
Multiple-year appropriations are available for new obligation for a definite period in excess of one fiscal year. For example, the Navy’s "Shipbuilding and Conversion" appropriation is typically a 5-year appropriation. Apart from the extended period of availability, multiple-year appropriations are subject to the same principles applicable to annual appropriations.
A no-year appropriation is available for new obligation without fiscal year limitation. In order for an appropriation to be a no-year appropriation, the appropriating language must expressly so provide. The standard language used to make a no-year appropriation is "to remain available until expended." However, other language will suffice as long as its meaning is unmistakable, such as "without fiscal year limitation.“ The rules relating to no-year appropriations are simple. All statutory time limits as to when the funds may be obligated and expended are removed, and the funds remain available for their original purposes until expended.
The Time Rule is synonymous with an appropriations “Period of Availability”. Note; different funds (colors of money) have different periods of availability. 8

9. 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)
e. Generalize New Information (85 minutes); cont.
Administrative Subdivision of Funds. 31 U.S.C. § 1514(a) requires agencies to control the various subdivisions of appropriations. The Office of Management and Budget APPORTIONS funds over their period of availability to agencies for obligation. See 31 U.S.C. § Agencies subdivide these funds among their subordinate activities.
In the Army, the Operating Agency/Major Command (MACOM) generally is the lowest command level at which the FORMAL ADMINISTRATIVE SUBDIVISIONS of funds required by 31 U.S.C. § 1514 are maintained for O&M appropriations. Below the MACOM level, O&M subdivisions generally are informal targets or allowances. Agencies promulgate regulations to control the rate of obligation and expenditure of funds. See, e.g., DOD R, vol. 14, app. A; DFAS-IN Reg
Within the statute, Congress does allow some flexibility concerning the usage of appropriations in reference to the amount by the allowance of Contracting Officers/ Resource Managers to request additional funding should the disbursement exceed the obligation. However, this additional funding must meet the purpose of the appropriation.
Examples of appropriation purposes and funding thresholds:
Usually items costing <$250,000 and not designated for centralized management and asset control are considered “expenses” and are funded with O&M funds
Investment items are those that cost >$250,000 and/or are designated for centralized management and asset control. There isn’t an increase in funding, just permission to use funds for other than the intended purpose
Minor construction projects costing < $750,000 can be funded with O&M for building
Maintenance and repair, not construction, may exceed the $750,000 threshold Maintenance does not alter, improve, or change a permanent structure - it preserves the facility for its intended purpose.
Approved by DA
Dollar threshold is raised to $1,500,000 if the project is to resolve a condition that threatens life, health or safety. Specific lump sum approved by Congress. 9

10. Appropriations

11. Appropriations continued

12. Categories of Appropriations
Operation and Maintenance (O&M) Annual - Day to day operations
Military Personnel (MILPERS) Annual - Soldier pay and entitlements
Procurement – 2031 thru years - Purchase of various high value items such as weapons, ammunition, missiles, etc
Military Construction Army (MILCON) years - New or continuing construction
Research, Development, Test & Evaluation (RDT&E) years - Future system’s RDT&E
e. Generalize New Information (85 minutes); cont.
Within the three types of appropriations, annual, multi-year, & no-year, there are five categories of appropriations. These categories or account titles are directly assigned and linked to a basic symbol and budget policy which provides a more definitive breakout of federal government funds.
The O&M category is also composed of many appropriation account titles. Examples of costs financed by O&M funds are headquarters operations, civilian salaries and awards, travel, fuel, minor construction projects of $750K or less, expenses of operational military forces, training and education, recruiting, depot maintenance, purchases from Defense Working Capital Funds (e.g., spare parts), base operations support, and assets with a system unit cost less than the current procurement threshold ($250K).
MILPERS appropriation accounts are similar in nature to those of O&M in that both are considered expense accounts. MILPERS appropriations are used to fund the costs of salaries and compensation for active military and National Guard personnel as well as personnel-related expenses such as costs associated with permanent change of duty station (PCS), training in conjunction with PCS moves, subsistence, temporary lodging, bonuses, and retired pay accrual.
The Procurement category consists of a number of procurement appropriation account titles such as Shipbuilding and Conversion Navy, Aircraft Procurement Air Force, Missile Procurement Army, Procurement Marine Corps, etc. Procurement appropriations are used to finance investment items, and should cover all costs necessary to deliver a useful end item intended for operational use or inventory.
MILCON appropriation accounts receive considerable attention from Congress, and are enacted separately from the Defense Appropriations Act. These appropriations fund the costs of major construction projects such as bases, facilities, military schools, etc. Project costs include architecture and engineering services; construction design; real property acquisition costs; and land acquisition costs necessary to complete the construction project. MILCON is considered an investment account. Examples of projects properly financed in the MILCON appropriations include missile storage facilities, intermediate maintenance facilities, medical/dental clinics, technical libraries, and physical fitness training centers.
RDT&E appropriation accounts finance research, development, test and evaluation efforts performed by contractors and government installations to develop equipment, material, or computer application software; its Development Test and Evaluation (DT&E); and its Initial Operational Test and Evaluation (IOT&E). These efforts may include purchases of end items, weapons, equipment, components, and materials as well as performance of services – whatever is necessary to develop and test the system. 12

13. Bona Fide Need Rule
“only for payments or expenses properly incurred during the period of availability, or to complete contracts properly made during the period of availability”
Focus on timing of the obligation and current need of the agency
Spend current year dollars for current year needs
Supplies must be needs of period or consumed in period
Exceptions are Inventory Delivery or Lead time, Stock Level
e. Generalize New Information (85 minutes); cont.
General rule, agencies may obligate appropriated funds only for requirements that represent bona fide needs of an appropriation’s period of availability, current fiscal year. If this does not happen within the period of availability, the authority to obligate expires. Note that "bona fide needs" does not appear in the statute. The key phrase to be recognized is "expenses properly incurred" or contracts "properly made" within the period of availability.
The Bona Fide Needs Rule focuses on whether we are obligating current monies for current needs. What is a current need? Typically, it is defined by when the agency will use the item or receive the service. In its most elementary form—where the entire transaction takes place during the same fiscal year—the rule means simply that the appropriation is available only for the needs of the current year.
A common application of the rule in this context is that an appropriation is not available for the needs of a future year. For example, suppose that, as the end of a fiscal year approaches, your agency decides to purchases a truckload of pencils although it is clear that, based on current usage, it already has in stock enough pencils for immediate needs bridging the Appropriations Act. It would seem apparent that the agency was merely trying to use up funds before the appropriation expired, and the purchase would violate the Bona Fide Needs Rule. (This does not mean that an agency may only purchase those supplies that it will actually use during the current fiscal year. Agencies normally maintain inventories of common use items. The rule does not prevent maintaining a legitimate inventory at reasonable and historical levels, the "need" being to maintain the inventory level so as to avoid disruption of operations. The problem arises when the inventory crosses the line from reasonable to excessive.)
Exceptions to the Bona Fide Need rule are:
Delivery time: This aspect of the exception recognizes that the agency has a need for, but cannot obtain the item, in the current FY. In this situation, if an agency cannot obtain materials in the same FY in which they are needed and contracted for, delivery in the next FY does not violate the Bona Fide Needs Rule. However, the time between contracting and delivery must not be excessive and the procurement must not be standard, commercial items readily available from other sources.
Stock Level: The stock level exception permits agencies to purchase sufficient supplies to maintain adequate and normal stock level. The government may use current year funds to replace stock consumed in the current FY, even though the agency will not use the replacement stock until the following fiscal year.
Construction Contracts: the Bona Fide Need Rule as applied to outdoor construction and renovation contracts has some specific considerations.
First, the work must start before the onset of winter weather that would limit or curtail construction activity. Otherwise, the project is not considered a bona fide need of the current FY.
Second, if the government is making a facility or site available for the construction, will the facility be ready for the project?
Third, how much control does the government have over the project? This determines the start date and whether the project is a bona fide need of the current FY.
Training Contracts: training is generally viewed as a non-severable service. Thus, we can fund the training when we incur the obligation, even though some (or even all) of the actual training occurs in the next FY. When would it be permissible to fund training that falls completely in the next fiscal year with this year’s funds? If, for example, the training course is to begin on or shortly after the first of October, and the scheduling of the course or class is outside the direct control of the agency, it is logical to obligate current year dollars for the training. In cases in this area, GAO has focused on whether the agency identified the need and selected students early on. 13

14. Common Issues - Clothing
Generally considered a personal expense
Exceptions:
If not an ordinary purchase (cold weather gear)
Essential to successful completion of work
Tuxedoes for Secret Service
Suits for SOF on mission
Need for hazardous duty
Safety shoes
Used as a Award/Reward
T shirts/Hats for sports event winner (< 5% of participants)
e. Generalize New Information (85 minutes); cont.
Understanding that the basic principle is that every employee of the Government is mostly personally responsible and is required to present himself or herself for duty properly attired according to the requirements of his or her position. Nevertheless, there are certain out-of-the-ordinary items, required by the nature of the job, which the government should furnish. Under the rule set forth in 3 Comp. Gen. 433, most items of apparel were held to be the personal responsibility of the employee.
There are now three general statutory provisions that permit the purchase of items of apparel from appropriated funds in certain circumstances.
The first is 5 U.S.C. § 7903, enacted as part of the Administrative Expenses Act of It provides:
Appropriations available for the procurement of supplies and material or equipment are available for the purchase and maintenance of special clothing and equipment for the protection of personnel in the performance of their assigned tasks. For the purpose of this section, appropriations include funds made available by statute. In order for an item to be authorized by 5 U.S.C. § 7903, three tests must be met: (1) the item must be special and not part of the ordinary and usual furnishings an employee may reasonably be expected to provide for himself; (2) the item must be for the benefit of the government, that is, essential to the safe and successful accomplishment of the work, and not solely for the protection of the employee, and (3) the employee must be engaged in hazardous duty.
The second is 5 U.S.C. § 5901, the so-called Federal Employees Uniform Act, most recently amended by section 202 of the Federal Employees Pay Comparability Act of 1990:
This provision authorizes annual appropriations to each agency, on a showing of necessity or desirability, to provide a uniform allowance of up to $400 a year (or more if authorized under Office of Personnel Management regulations) to each employee who wears a uniform in the performance of official duties. The agency may pay a cash allowance or may furnish the uniform. Note, 5 U.S.C. § 5901 is merely an authorization of appropriations. An appropriation is still required in order for payments to be made or obligations incurred.
The third piece of legislation that may permit the purchase of apparel:
This provision authorizes purchases from appropriated funds. Section 19 of OSHA, 29 U.S.C. § 668, requires each federal agency to establish an occupational safety and health program and to acquire necessary safety and protective equipment. Thus, protective clothing may be furnished by the government if the agency head determines that it is necessary under OSHA and its implementing regulations.
Inclusive in these provisions, government agencies are authorized to purchase various not so common items, however, necessary to the performance of specific duties. Certain agencies are approved to requisition snowmobile suits, mittens, steel-toe shoes, and crash helmets. 14

15. Common Issues - Food
May not use appropriated funds for meals for government workers at duty station
Generally a personal expense - Paid salary
Exceptions:
Light refreshments at government sponsored conferences for those attendees in a travel status and/or facility rental includes cost of food
gao-ada pdf
Award Ceremonies can have “light refreshments”
Not for a Military Personnel Award Ceremony
e. Generalize New Information (85 minutes); cont.
It may be stated as a general rule that appropriated funds are not available to pay subsistence or to provide free food to government employees at their official duty stations (“at headquarters”) unless specifically authorized by statute. In addition to the obvious reason that food is a personal expense and government salaries are presumed adequate to enable employees to eat regularly, 58 furnishing free food might violate 5 U.S.C. § 5536, which prohibits an employee from receiving compensation in addition to the pay and allowances fixed by law.
The “free food” rule applies to snacks and refreshments as well as meals. For example, the Comptroller General held that Internal Revenue Service appropriations were not available to serve coffee to either employees or private individuals at meetings. Similarly prohibited was the purchase of coffeemakers and cups. Although serving coffee or refreshments at meetings may be desirable, it generally is not considered a “necessary expense” in the context of appropriations.
General operating appropriations may be used to provide refreshments at award ceremonies under the Government Employees’ Incentive Awards Act. In the case of many laws and rules, there are periods of exception. During limited conference attendances, meals and refreshments can be reimbursable. 15

16. Common Issues - Food; cont.
Exceptions cont:
Training when necessary to achieve training objective
- not for convenience
Ethnic or cultural awareness events
Civilian 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 pdf
e. Generalize New Information (85 minutes); cont.
Under the Government Employees Training Act (Training Act), an agency may pay, or reimburse an employee for, necessary expenses incident to an authorized training program. This applies whether the training is held through a nongovernment facility or by the federal government itself. The event, however, must comply with the Training Act’s definition of training. As with meetings, an agency may pay for the costs of meals and refreshments when they are included as an incidental and non-separable portion of a training registration or attendance fee. If the cost of the food is not included in a registration or attendance fee, the Comptroller General has held that the government can provide meals or refreshments under this authority if the agency determines that providing meals or refreshments is necessary to achieve the objectives of the training program.
One area that has generated several decisions and change has been equal employment opportunity special emphasis or cultural awareness programs. Equal Opportunity events that are a formal part of the program such as guest speakers, live performances, amongst other performances can be legally funded with government appropriations.
Permitted appropriated funds may be used to provide meals as well as refreshments at awards ceremonies.
Another related line of decisions addresses the purchase of bottled drinking water for use in federal work facilities where the safety of municipal or locally provided water is at issue. Generally, appropriated funds are not available to pay for bottled water for the personal use of employees. An exception where a building’s water supply is unhealthy or un-potable or where a problem with the water supply system in a building caused lead content to exceed the maximum contaminant level and justified the purchase of bottled water for employees until the problems with the system could be resolved. 16

17. 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 go
Business Cards - Only allowed for those that regularly deal with public or outside organizations, i.e., recruiters, contractors, investigators
Entertainment - For equal opportunity/ethnic programs
Unit T-shirts - Not allowed
Mementos - Not allowed
Cell phones - Can reimburse for official phone call charges
e. Generalize New Information (85 minutes); cont.
Prior to 1987, based in part on the reasoning that seasonal decorations are significantly different from ordinary office furnishings designed for permanent use, it had been the government’s position that Christmas decorations (trees, lights, ornaments, etc.) were not a proper charge to appropriated funds. However changed, post 1987 the government reevaluated this decision concluding that the rules for office decorations should be the same whether the decorations are seasonal or permanent. Thus, seasonal decorations are now permissible where the purchase is consistent with work-related objectives such as enhancement of morale, agency or other applicable regulations, and the agency mission, and is not primarily for the personal convenience or satisfaction of a government employee. Conversely, this does not apply to greeting cards.
Business cards or calling cards are commonly used in the commercial world. For an extended time period this was considered entirely a personal expense. Under circumstances of personnel who regularly deal with organizations outside the government primarily can use government appropriations to acquire business cards.
The concept to be explored in this section is the rule that appropriated funds may not be used for entertainment except when specifically authorized by statute and also authorized or approved by proper administrative officers. The basis for the rule is that entertainment is essentially a personal expense even where it occurs in some business-related context. Except where specifically appropriated for, entertainment cannot normally be said to be necessary to carry out the purposes of an appropriation.
An expenditure of appropriated funds for unit t-shirts and mementos are considered improper even though the intent is directly intertwined with enhancing morale and are not considered essential to achieving an authorized purpose. These items for government accounting purposes are considered personal of nature. 17

18. 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
e. Generalize New Information (85 minutes); cont.
As a general proposition, no authority exists for the federal government to use appropriated funds to pay fines or penalties incurred as a result of its activities or those of its employees. Nevertheless, under very strict circumstances particular fines can be reimbursed. In any event there must be some legitimate government interest to protect to allow for reimbursement by government appropriations.
Under limited conditions expenditures for licenses and certificates can be compensated for within the limits of the law. This only applies to professional licenses as to which the government holds to benefit from. 18

19. 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 occur
Ratification is the act of making the agreement good
Must be performed by a Contracting Officer after a legal review
e. Generalize New Information (85 minutes); cont.
An unauthorized commitment is defined as an agreement or purchase that is not binding solely because the Government representative who made it lacked the authority to enter into that agreement on behalf of the Government.
Ratification is defined as an act of approving an unauthorized commitment by an official who has the authority to do so.
Unauthorized commitments are a growing problem within the Army. The ratification process is time-consuming, requires considerable documentation, and often damages the Government's ability to conduct future business with the firms involved. Unauthorized commitments represent an unwarranted expense to the Army budget because:
The administrative effort required to process the ratification always far exceeds that required to purchase the item or service using appropriate procedures
Many items and services may be purchased at a better price when competed in the marketplace, and
The normal acquisition process weeds out items that should not be purchased.
Common Causes
A GPC cardholder places an order that exceed his/her authority.
A vendor mistakes a request for information as an order, ships the item, the receiver does not realize it is an improper order and accepts the item rather than reject and return the item.
A contractor continues to perform a service contract or provide leased/rented equipment after the expiration date of the contract. This frequently occurs on yearly services/maintenance/lease type contracts for which there is a continuing need.
The Government can only avoid unauthorized commitments through attention to detail and strict adherence to official guidance by personnel throughout the chain of command. Personnel who do not have authority to commit the Government must not make any statements that could be interpreted by a vendor as a commitment to either commence work or to provide services/supplies. All individuals who deal with commercial businesses must be aware of the policies to prevent problems in the procurement process and embarrassment to the Government. 19

20. 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 pdf
Using military vehicles for personal use
I.E. - TMP vehicles used for domicile to duty transportation
e. Generalize New Information (85 minutes); cont.
The Antideficiency Act is legislation enacted by the United States Congress to prevent the incurring of obligations or the making of expenditures (outlays) in excess of amounts available in appropriations or funds. The ADA prohibits the Federal government from entering into a contract that is not "fully funded" because doing so would obligate the government in the absence of an appropriation adequate to the needs of the contract, accepting voluntary services for the United States, or employing personal services not authorized by law, except in cases of emergency involving the safety of human life or the protection of property, and involving the government in any obligation to pay money before funds have been appropriated for that purpose, unless otherwise allowed by law.
Penalties for Violating the Antideficiency Act
Any employee of the government who violates the Antideficiency Act can face administrative penalties including suspension from duty without pay or removal from office.
In addition, any employee who "knowingly and willfully" violates any of the law's provisions can face punishments of up to $5,000 in fines and two years in prison, according to the GAO. 20

21. 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 available
Proper 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
e. Generalize New Information (85 minutes); cont.
To prevent Antideficiency Act violations agents of the government should pay closer attention to detail, establish an administrative control system to ensure obligations are kept within appropriated levels, not expending funds which appropriated for a different purpose, and exercising good old fashion discipline. 21

22. Antideficiency Act Penalties
Administrative
Up to and including, when circumstances warrant, suspension from duty without pay or removal from office.
Criminal: Willful/Knowing Violation
$5,000 fine
2 years imprisonment
Or both
NO RELIEF for an ADA Violation

23. Critical Thinking How else could you use this information?
How might you use this information in the future?
f. Develop (10 minutes)
This phase is student-centered and instructor facilitated. Allow the students to decide how they will use the information. The definitive goal is for the students to think critically and creatively about how to use the information garnered from the lesson plan in the future. As the instructor you can direct the students to brainstorm or you can ask open ended questions such as:
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?
Instructor Note: The above listed questions are only examples. As the instructor you are free to ask varied questions. However, ensure the questions are open-ended and serves to ensure the students see the relevance of the generalized new information presented and future usage.
How can you apply newly learned information in current or future duty positions? 23

24. Practical Exercise Brainstorming g. Apply (50 minutes)
Instructor Note: Have each group backbrief there ideas/ solutions to the class once finished.
This phase is student-centered and allows the students to personally measure what they have learned. For this brainstorming exercise, divide the class into 4 groups and the students will be required to share ideas in an open discussion format regardless of how outlandish they may be. All ideas must be gathered and recorded within approximately the first 15 minutes and then discussed in the remaining time.
Instructor Note: Click the on the image to open, save, forward or print this lessons article. 24 24

25. 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 , 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.
ENABLING LEARNING OBJECTIVE
Review the learning objective, summarize the lesson, and poll for questions. 25

26. Appendix A Assessment Plan 26 Appendix A Contribution to Group Work
30%
Written Communication
10%
Oral Communication
Module Post Assessment
50%
Total 
100%
Contribution to Group Work. See FM SLC Contribution to Group Work Rubric for specific grading criteria.
Written Communication. See FM SLC Written Communication Rubric for specific grading criteria.
Oral Communication. See FM SLC Oral Communication Rubric for specific grading criteria.
Module Post Assessment. A comprehensive post assessment consisting of multiple-choice, matching, fill-in-the-blank and ordering questions will be administered via Blackboard Academic Suite upon completion of the module. 26

27. Appendix B Presentation Outline 27 Appendix B Slides
Slide Number Description
Slide Identify the Principles of Fiscal Law
Slide Enabling Learning Objective
Slide 3 Health Law; Fiscal Fights Video
Slide The Foundation of Fiscal Law
Slide Underlying Principles
Slide Purpose Statute
Slide Purpose Statute; cont.
Slide Time Statute
Slide Amount Statute
Slide Categories of Appropriations
Slide Bona Fide Need Rule
Slide Common Issues - Clothing
Slide Common Issues - Food
Slide Common Issues – Food; cont.
Slide Common Issues - General
Slide Common Issues – General; cont.
Slide Common Issues – Unauthorized Commitment
Slide Antideficiency Act
Slide Antideficiency Act – Close Calls
Slide Critical Thinking
Slide Group Exercise
Slide Enabling Learning Objective
Slide Appendix A
Slide Appendix B
Slide Appendix C 27

28. Article: Doing the Right Thing – Fiscal Law Tips
Appendix C
Article: Doing the Right Thing – Fiscal Law Tips
Appendix C
Article: Doing the Right Thing – Fiscal Law Tips
Instructor Note: Click the on the image to open, save, forward or print this lessons article. Students should receive the article for this lesson the day prior in order to be prepared for the facilitation of this portion of the lesson.
Facilitating an article is a maximum participatory event and the facilitator should use their abilities to create a dynamic discussion in the classroom. The goal is to inspire a level of learning that will prepare the students for ensuing lesson. The facilitator should ask open-ended questions that will influence the students to interact.
These are example questions to ask when facilitating:
The main purpose of the article is?
The Key question that the author is addressing is?
The most important information in this article is?
The key concepts we need to understand in this article are?
The main assumptions underlying the author’s thinking are?
What is the point of reading this article and how can it improve critical thinking? 28