1. 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 (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 (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
Materials Required
Instructor Materials:
Lesson plan slides, DFAS-IN Regulation 37-1, DFAS-IN-MANUAL 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.
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2. 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.
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3. 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).
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4. 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?
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5. 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
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6. 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
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7. 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
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8. 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
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9. 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.
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10. FINANCIAL MANAGEMENT SCHOOL
Fund Control
Levels of Fund Control
Centralized
Decentralized
Commitment Accounting required for all appropriations
Formal
Informal
SHOW SLIDE 10: Fund Control
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11. 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.
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12. 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.
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13. 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.
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14. 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.
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15. 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.
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16. 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.
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17. 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

18. 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
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