CDFM Module 3.1 Fiscal Law

CDFM Module 3.1 Fiscal Law Basic Axiom of Fiscal Law (the premise of fiscal law) The established rule: Expenditure of public funds is proper only when authorized by Congress, not that public funds may be expended unless prohibited by Congress. Common Law Which law: There is no law that says you can't do it. Fiscal Law Which Law: You can only do what the law authorized you to do. Constitutional Authority: Article 1, section 7,8,9 Provisions of the U.S Constitution that provide the underpinning for the budget & funds control process, (which Constitutional Authority) Article 1, Section 7 Empowers the congress to pass bills for the raising of revenue & delineates how bills will pass from the Congress 2 the resident for signature or veto. Article 1, Section 8 Empowers Congress to collect taxes. Article 1, Section 9 Requires appropriations in law before money may be spent from the Treasury. Principles of Federal Appropriation Law The most authoritative source of information on the proper use of appropriated funds is a volume published by the GAO & General Counsel.Red Book, Specific over general appropriations & do not do indirectly what you cannot do directly. The Red Book Contains detailed guidance & numerous cases illustrating proper & improper uses of funds. Available on web site. 31 USC 1341, 1342, 1517 (Anti Deficiency Act) Agencies are responsible 4 maintaining systems of accounting, internal control, & administrative control 2 facilitate effective management of Federal programs to avoid? Budget & Accounting Act of 1921 Requires President 2 submit annual budget 2 Congress 4 all 3 branches of the federal government, created budget office 4 the President (OMB), & established the GAO office. Congressional Budget Act of 1974 Governs the congressional budget process, defines key budget terms that are used in the budget process, establishes the House & Senate budget committees & the Congressional Budget Office. Balanced Budget & Emergency Deficit Control Act of 1985 This law prescribes rules & procedures (sequestration) designed 2 constrain spending & receipts legislation. Originally it enacted the GRAMM-RUDMAN-HOLLAND ACT. The budget enforcement Act (BEA) amended it, so it is also known as the BEA. Sections 13 & 15, 31 USC These sections prescribe rules & procedures 4 budget execution. The statutory requirements 4 the use, control & accountability of funds are found here. Many provisions were previously enacted as section 3679. (ADA) Impoundment Control Act of 1974 This law prescribes rules & procedures under which the President may withhold appropriated amounts from obligation. (deferrals & rescissions) OMB A-11 address the requirements of this law. OMB Circular A-11 Issued pursuant 2 chapters 13 & 15 of USC, Executive Order 11541 of July 1970, The Congressional Budget, Impoundment Control Act of 1974,and GPRA in Section 200. Federal Appropriation Law Congress, under the authority of Article 1 of Constitution, generates revenue & establish taxes. Authorities under these articles are found in the authorization & appropriation acts passed by Congress & signed by President. Court decisions & decisions by Comptroller General further amplify these authorities. Fiduciary Certifier Responsiable for the use of approproated funds to the proper Purpose, Time & Amount, and 4 those US codes pertaining thereto. Feduciary Responsibility Conveys a confidence or trust. Fund Certifying Official Certifies that the public's funds for which they have been entrusted, certifying that funds are legal for use under Purpose, Time & Amount restrictions placed by Congress. ADA Violation There is no relief from this! Pecuniary Certifier Responsible for the accuracy of disbursement of funds. Resp. 4 the repayment of any disbursment not in accordance with proper Purpose. Pecuniary Responsibility Covers the responsibility of physical control of the monies entrusted to the care if an accountable official of the government. Disbursing Officers, cashiers, & collecting officers Who has precuniary resp. for the monies entrusted in their care & held personally liable for any loss or theft. Certifying Officers Their job includes certifying vouchers for payment & are held personally liable for any erroneous payments, resulting for their miscertification, from the second the payment is made, but does not have physical custudy of gov funds. BUT they have the authority to question & refuse payment that may be improper. ADA Volation Purpose 31 US 1301 Whcih ADA is enacted in 1809, is simple, consice, and direct, yet leads to the greatest number of ADA violations. ADA Violation TIME 31 USC1502 Which ADA? Payments may only be made for obligations incurred during the period of avilability of the appropration. ADA violation Which is 31 USC 1341, 1342, 1517 Annual Authority Budgetary authority that are avilable for incurring new obligations for one fiscal year or less. Multiyear Authority Bugetary resources that are available for new obligations in excess of one fiscal year. No Year Authorirty Budgetary Resources that are available for new obligations for an indefinite period ( until the purpose for which they were provided are carried out). They do not expire, ofter called X-year authority. Definite Authority If the law itself specififes an amount of budget authority available, the amount is classified as? THis type of authority includes authority stated as "not to exceed" a specified amount. Most DoD aoorioriations are this type. Indefinite Authority If the law does not specify an amount of budget authority available (e.g., if the amount is determined by specified variable factors) it is called? Indefinite Authority Examples are interest on the debt, federal retirement, social security, and the Judgment Fund.