1. Advanced Issues in Fiscal Law
Keith M. Dunn
Associate Counsel
Office of the Assistant Secretary of the Navy
(Financial Management & Comptroller)

2. THE LIFE OF A DEFINITE ACCOUNT
EXPIRED
5 YEARS
CLOSED
FOREVER
CURRENT

3. Adjustments to Expired Accounts
31 USC 1553(a)
Retains identity
Available for
Recording
Adjusting
Liquidating obligations properly chargeable

4. CLOSED ACCOUNTS 31 USC 1552 ALL BALANCES CANCELED
NOT AVAILABLE FOR OBLIGATION OR EXPENDITURE FOR ANY PURPOSE!
EXISTING BILL?
RECEIPT?

5. Banking and Laundering Funds
If it sounds to good to be true, it is.
Sending money to GSA does not change the character of your money!
(Neither does MIPRing it somewhere!)

6. Crossing Fiscal Years: Contracted Services
10 USC 2410a – funds available for a fiscal year may be obligated for the total amount of a contract for the procurement of severable services of the lease of real or personal property for a period that begins in one fiscal year and ends in the next if the contract period does not extend beyond one year
OSD(C) memo dtd 27 March 06
FMB memo dtd 4 May 06

7. CONTINUING RESOLUTIONS
LEGISLATION PERMITTING OPERATIONS IN ABSENCE OF AN APPROPRIATION
GENERALLY AT CURRENT OR LOWER RATE
GENERAL PROVISIONS OF PRIOR YEAR CONTINUE TO APPLY
NO NEW STARTS

8. What is a New Start? Not defined by statute FMR 060401.E –
“A program, subprogram, modification, project, or subproject not previously justified by the Department and funded by the Congress through the normal budget process is considered to be a new start.”

9. Antideficiency Act Prohibits: Expenditure or obligation exceeding
an appropriation or fund
an apportionment or allocation
Obligating the Government before an appropriation is made unless authorized by law
Accepting voluntary services except in emergencies involving human life and property or specific statutory authority
Augmenting from other sources
(31 USC 1341, 1517, and 3302; 10 USC 1588)

10. Authority to Accept Certain Voluntary Services
10 U.S.C. §1588 exception to rule
Applicable only to certain specified voluntary services
i.e., Health-care related services; museum services; MWR services; funeral honors detail; and legal assistance services
Requirements and Limitations
Authority to recruit and train volunteers
Sec. 374 of the FY 06 NDAA, Pub. Law
Amends 10 USC 2601 to permit acceptance of gifts, including gifts of services, for the benefit of members of the armed forces and civilian DoD employees who incur a wound, injury, or illness while in the line of duty, subject to regulations to be issued by DoD

11. Types of Violations
Purpose
Time
Amount

12. SANCTIONS & PENALTIES Administrative Criminal Up to removal
If knowing & willful
2 years in jail
$5000
Or both

13. Another Prohibition Unofficial Use of Passenger Carriers 31 USC 1344
31 USC 1349 – penalty for violating 1344 is a suspension of at least one month

14. Current & Perennial Issues

15. Clothing
“ every employee of the Government is required to present himself for duty properly attired according to the requirements of his position.”
63 Comp. Gen. 245, 246 (1984)
See also B , 3 Oct 02; B , 7 Oct 02

16. The Clothing Exceptions
Official Civilian DOD Uniforms: 10 U.S.C. § 1593
Administrative Expenses Act: 5 U.S.C. § 7903
Special/unusual clothing
Item must be for the benefit of the the Government, essential to the safe and successful accomplishment of the work, and not solely for the protection/comfort of employee
Must involve hazardous duty
OSHA Compliance: 29 U.S.C. § 668

17. NOT EXCEPTIONS!
Raincoats and umbrellas for employees who must frequently go out into the rain
Running shoes for couriers
Cold weather/foul weather gear
PT gear!

18. Food
“[F]ree food Normally cannot be justified as a ‘necessary expense’ under an appropriation since such expenses are considered personal expenses that government employees are expected to bear from their own salaries.”
72 Comp. Gen. 178

19. The Food Exceptions Travel Training Conferences Emergencies
Other exceptions
DoD DGC(Fiscal) memo dtd 1 Sept 05
FMB memo dtd 12 May 06

20. AGENCY SPONSORED CONFERENCES
NIH, B , March 3, 2005
The Honorable Barbara A. Mikulski, B , January 4, 2006
Conference “must involve topical matters of interest to, and the participation of, multiple agencies and/or nongovernmental participants.”
May pay for meals and light refreshments in accordance with established GAO case law
May not charge a conference fee absent specific statutory authority

21. The Ever Popular Trinkets
Legitimate only:
As part of an approved Awards program
(Can be almost anything)
Items of no intrinsic value designed solely to assist in achieving internal agency management objectives
(Rule of thumb: with the exception of a legitimate award, if it’s something actually you’d want, it’s improper)

22. Commander’s Coins General Rule: UNLESS:
Appropriated funds are not available to purchase coins for general distribution
UNLESS:
May be presented to military and civilian personnel pursuant to a statutorily authorized awards program
May be presented to distinguished citizens, military officers and gov’t officials of foreign countries or Prominent Federal (non-DoD), state and local gov’t officials
Senior DoD officials on official visits to the field/foreign countries
May present coins or other mementos less than $50 to non-DOD individuals not usually eligible for ORF courtesies – driver, interpreter, spouse of foreign dignitary

23. AWARDS
5 U.S.C (Government Employee Incentive Awards Act) authorizes an agency to “pay a cash award to, and incur necessary expenses for the honorary recognition of, an employee “
10 U.S.C authorizes DoD to pay a cash award to, and incur necessary expenses for the honorary recognition of a member of the armed forces for disclosures, suggestions, inventions and scientific achievement.
10 U.S.C. 1125: Military awards for accomplishments. Does not include necessary expense language

24. Recognition Items for Recruitment/Retention 10 USC 2261
Added by sec. 589 of the FY 06 NDAA
Allows appropriated funds to be used to procure items of nominal or modest value for recruitment/retention
to members of the armed forces, their families, and other individuals recognized as providing support that substantially facilitates service in the armed forces
“nominal or modest value” defined as a commemorative coin, medal, trophy, badge, flag, poster, painting, or similar item valued less than $50
SECDEF must issue implementing regulations