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Antideficiency Act

Antideficiency Act

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SECTION 145REQUIREMENTS FOR REPORTING ANTIDEFICIENCY ACT VIOLATIONS 
 
Table Contents 
 
145.1  What the Antideficiency Act? 
145.2  What violations must report?  
145.3  How the requirements for reporting violations differ for credit programs? 
145.4 the requirements for reporting violations differ for revolving funds? 
145.5 the requirements for reporting violations differ for closed and expired accounts? 
145.6   How treat anticipated budgetary resources? 
145.7  How report violation? 
145.8  What the GAO reports violation? 
145.9  What OMB suspects violation? 
145.10  When need request (and obtain) appropriation order liquidate       
                     obligation that was violation the Antideficiency Act? 
Ex145A Antideficiency Act Violation Sample Letter the Director 
Ex145B Antideficiency Act Violation Sample Letter the President  
 
Summary Changes 
 
Provides guidance when request appropriation liquidate obligation that was violation the Antideficiency Act (section 145.10). 
 
 
145.1   What the Antideficiency Act?  
 
The Antideficiency Act consists provisions law that were passed Congress (beginning the nineteenth century and later codified Title the United States Code) prevent departments and agencies from spending their entire appropriations during the first few months the year.  The Act prohibits you and any other Federal employee from: 
  
 Entering into contracts that exceed the enacted appropriations for the year. 

 Purchasing services and merchandise before appropriations are enacted. 

 
The Act: 
 
 Requires that OMB apportion the appropriations, that is, approve plan that spreads out spending over the fiscal period for which the funds were made available. 

 Requires, subject the approval OMB, the head each executive agency prescribe regulation system administrative control funds (31 U.S.C. 1514(a)). 

 Restricts deficiency apportionments amounts approved the agency heads only for "extraordinary emergency unusual circumstances." 

 Establishes penalties for Antideficiency Act violations.  Violations are obligations expenditures excess the lower the amount the affected account, the amount apportioned, any administrative subdivision funds specified your agencys fund control regulations being subject the Antideficiency Act. specified Appendix agency fund control regulations must specify that violations allotments and suballotments are also violations the Antideficiency Act. the agency chooses and OMB approves, the agency may also make allowances and allocations subject the Antideficiency Act. this case, obligations and expenditures that exceed allowances and allocations are violations the Antideficiency Act. 

 Requires the agency head report any Antideficiency Act violations the President, through the OMB Director; Congress; and the Comptroller General. 

 
Under the Act, you obligate expend more than the amount the Treasury Account Fund Symbol (TAFS) the amount apportioned the amount any other subdivision funds that are identified your agency fund control regulations being subject the Antideficiency Act, you will subject appropriate administrative discipline, includingwhen circumstances warranta written reprimand, suspension from duty without pay, removal from office. addition, you are convicted willfully and knowingly overobligating overexpending the amount, then you shall fined not more than $5,000, imprisoned for not more than years, both. 1982, Congress reworded and reorganized the language the Antideficiency Act along with the rest Title the United States Code.  The intent Congress was modernize the language the Act, without changing its meaning. You will find crosswalk between the provisions law that made the Antideficiency Act before was modernized and the current language appendix  
145.2   What violations must report? 
 
All Antideficiency Act violations must reported.  Here are some common examples: you 
 The amount 
 Then, you must report violation 
 
 
  
  
 
Authorize make obligation exceeding appropriation fund.  This may include obligations for purchases goods items that are prohibited statute. U.S.C. 1341(a) apportionment reapportionment type administrative subdivision funds), such category apportionment.  This also includes incorporated footnotes. U.S.C. 1517(a)(1) allotment suballotment type administrative subdivision funds, see Appendix section 4). U.S.C. 1517(a)(2) any other administrative subdivision funds, the overobligation results the overobligation one the previous amounts. U.S.C. 1517(a)(2) 
 
 
  
  
 
Authorize make disbursement exceeding appropriation fund. U.S.C. 1341(a) apportionment reapportionment type administrative subdivision funds).  Includes the overobligation category apportionment.  This also includes incorporated footnotes. U.S.C. 1517(a)(1) allotment suballotment type administrative subdivision funds, see Appendix section 4). U.S.C. 1517(a)(2) any other administrative subdivision funds the overexpenditure results the overexpenditure one the previous amounts. U.S.C. 1517(a)(2) 
 
 
  
  
 
Obligate expend 
 Funds required sequestered. U.S.C. 1341(a) you 
 The amount 
 Then, you must report violation 
 

 
  
  
 
Involve the Government contract obligation 
 Before you receive the appropriation, unless such contract obligation authorized law. U.S.C. 1341(a) 
 
 
  
  
 
Sign contract that obligates the Government indemnify parties against losses ("open-ended indemnification" clause) 
 Indeterminate. U.S.C. 1341(a) 
 
 
  
  
 
 
  
  
 
 
 
  
  
 
Accept voluntary service excess that authorized law. U.S.C. 1342 
 

 
Consult your OMB representative your violation involves the Purpose Statute (31 U.S.C. 1301) funding restriction Act other than appropriations Act, and refer the Memorandum for the General Counsel the Environmental Protection Agency from Kevin Marshall, Deputy Assistant Attorney General, Office Legal Counsel, Re: Use Appropriated Funds Provide Light Refreshments Non-Federal Participants EPA Conferences (April 2007), available http://www.justice.gov/olc/opiniondocs/epa-light-refreshments13.pdf. 
145.3   How the requirements for reporting violations differ for credit programs? addition the violations specified section 145.2, report overobligation overexpenditure of:  
 
 The subsidywhere officer employee the United States has made authorized direct loan obligation loan guarantee commitment that requires subsidy cost obligation expenditure excess amounts appropriated and/or apportioned for such purposes.  Modifications direct loans loan guarantees (or direct loan obligations loan guarantee commitments), defined section 185, that result obligations expenditure excess apportioned unobligated balances subsidy amounts are violations (31 U.S.C. 1341(a), U.S.C. 1517(a)). 

 The credit level supportable the enacted subsidywhere officer employee the United States has made authorized direct loan obligation loan guarantee commitment, that excess the level specified law. This includes, for example, obligations expenditures that exceed limitation direct loan obligations guaranteed loan commitments (31 U.S.C. 1341(a)). 

 The amount appropriated for administrative expenseswhere officer employee the United States has made authorized expenditure created authorized obligation that excess the amount appropriated for administrative expenses (31 U.S.C. 1341(a)). 

 The expired unobligated balance the subsidywhere officer employee the United States has made authorized expenditure created authorized obligation, including commitment, against unobligated subsidy balances after the period obligational authority has expired.  Correction mathematical data input errors the amount the expired unobligated balance the subsidy are not violations.  Corrections these errors excess the amount the expired unobligated balance the subsidy are violations (31 U.S.C. 1341(a)).  

 The apportioned borrowing authority financing account.  Section 505(c) the Federal Credit Reform Act subjects financing accounts apportionment: All the transactions provided this subsection shall subject the provisions subchapter chapter title 31, United States Code. 

 
145.4 the requirements for reporting violations differ for revolving funds? 
 
No.  The incurring obligations excess apportioned budgetary resources revolving fund violation the Antideficiency Act, whether not fund has unapportioned budgetary resources non-budgetary assets greater than the amount apportioned.  
145.5 the requirements for reporting violations differ for closed and expired accounts? 
 
No.  You are required report violations when obligations and expenditures adjustments obligations and expenditures exceed the original appropriations expired accounts well closed accounts.  This also includes obligations and expenditures adjustments obligations and expenditures made before the account expired that exceed  amounts apportioned amounts any other subdivision funds that are identified your agencys fund control regulations being subject the Antideficiency Act. 
145.6 How treat anticipated budgetary resources? 
 
You may not obligate against anticipated budgetary resources before they are realized even though the anticipated budgetary resources have been apportioned (see section 120.45). you incur obligation against anticipated budgetary resource, such anticipated spending authority from offsetting collections, then you will have violation the Antideficiency Act.  
145.7   How report violation? preparing your report violation, please consult your OMB representative.  Below are the requirements for such report. 
 
Transmittal letter the Director OMB.  You will transmit the letter from your agency head the President through the Director OMB. sample transmittal letter provided exhibit 145A that shows the format that must followed.  Agencies must state whether not their agency received clean audit opinion during the fiscal year(s) which the violation occurred. suspected that the violation was knowing and willful, the letter must state the agency has submitted information the Department Justice. the agency has determined that violation was not knowing and willful, agencies must state this determination the letter. 
 
Letter the President.  You will report violation the Antideficiency Act the form letter from your agency head the President. sample letter provided exhibit 145B that shows the format that must followed. 
 
The letter will set forth all the following information: 
 
 The title and Treasury symbol (including the fiscal year) the appropriation fund account, the amount involved for each violation, and the date which the violation occurred. 

 The name and position the officer(s) employee(s) responsible for the violation. responsible officer employee individual who took, failed take, action that was proximate cause the violation.  For individual responsible official, there should direct, identifiable nexus between the action (or inaction) the named individual and the corrective measures taken the agency prevent future violations. 

 All facts pertaining the violation, including the type violation (for example, overobligation appropriation, overobligation apportionment, overobligation any subdivision funds, including allotment suballotment, identified your agencys fund control regulations), the primary reason cause, any statement from the responsible officer(s) employee(s) with respect any circumstances believed extenuating, and any germane report the agency's Inspector General and/or the agency's counsel. 

 statement the administrative discipline imposed and any further action(s) taken with respect the officer(s) employee(s) involved the violation. 

 the case where officer employee suspected willfully and knowingly violating the Antideficiency Act, confirm that all information has been submitted the Department Justice for determination whether further action needed. the agency has determined that violation was not knowing and willful, agencies must state this determination the letter. 

 statement regarding the adequacy the system administrative control prescribed the head the agency and approved OMB, such approval has been given. the head the agency determines need for changes the regulations, your system administrative controls has never been approved OMB, such proposals will submitted provided section 150.7. 

 statement any additional action taken by, the direction of, the head the agency, including any new safeguards provided prevent recurrence the same type violation. 

 another agency involved, statement concerning the steps taken coordinate the report with the other agency. 

 Identical reports will submitted the presiding officer each House Congress and the Comptroller General. identical the report the President, state.   

 
Letters Congress. You will report identical letters the Speaker the House Representatives and the President the Senate. 
 
Letters the Comptroller General.  You will report the Comptroller General the Government Accountability Office.  Agencies may electronically send PDF (portable document format) copies these reports AntideficiencyActReports@gao.gov (for further information see OMB Memorandum M 0509 dated March 11, 2005). the letters Congress and the Comptroller General are identical the letter the President, include statement this effect the letter the President. the letters Congress and the Comptroller General are not identical the letter the President, you will submit copy the letter Congress and the Comptroller General with your letter the President and, moreover, you will submit the Congress and the Comptroller General copy your letter the President.  Additionally, agencies are required ensure that the entire violation package maintains consistency with regard the type Antideficiency Act violation that has occurred. there inconsistency the package, agencies are required submit explanation for the record (emails are acceptable).  
145.8   What the GAO reports violation? 
 
You should report the President, Congress, and the Comptroller General violations reported the Government Accountability Office connection with audits and investigations. these cases, the report the President will indicate whether the agency agrees that violation has occurred, and so, will contain explanation why the violation was not discovered and previously reported the agency. the agency does not agree that violation has occurred, the report the President, Congress, and the Comptroller General will explain the agency's position. 
145.9   What OMB suspects violation? 
 
Whenever OMB determines that violation the Antideficiency Act may have occurred, OMB may request that investigation audit undertaken conducted the agency. such cases, report describing the results the investigation audit will submitted OMB through the head the agency. the report indicates that violation the Antideficiency Act has occurred, the agency head will inform OMB and forward copy the report OMB. the report indicates that violation 
the Antideficiency Act has occurred, the agency head will report the President, Congress, and the Comptroller General accordance with section 145.7 soon possible. the agency head does not agree that violation has occurred, the report the President, Congress, and Comptroller General will explain the agency's position. 
145.10   When need request (and obtain) appropriation order liquidate obligation that was violation the Antideficiency Act? 

 
The Antideficiency Act applies expenditures well obligations, and thus expenditure separate violation the Antideficiency Act.   
 
Accordingly, you think that you may have obligated funds violation the Antideficiency Act that you have yet expend, you should immediately contact your counsels office and budget office discuss the situation and appropriate next steps, including contacting your agencys OMB representative with budget responsibility for the account. most cases, you will not need request (and obtain) appropriation order liquidate obligation that was incurred violation the Antideficiency Act.  (Such appropriation referred deficiency appropriation.) 
 
When obligation that was violation the Antideficiency Act has already been liquidated, deficiency appropriation not necessary. deficiency appropriation also not necessary when other resources are available liquidate the obligation.  For instance, the agency may able liquidate the obligation by: 
 
(1) using unobligated balances that can made available through re-allotment, revised apportionment, reprogramming, transfer from another account (if the agency has transfer authority); 

 
(2) deobligating funds; 

 
(3) the account has been closed, exercising the authority use current-year funds under U.S.C. 1553. deficiency appropriation only necessary where there not existing budget authority that available liquidate the obligation. 
 
Appropriations liquidate obligations that violated the Antidefiency Act (i.e., deficiency appropriations) are subtracted from total budgetary resources available for obligation. result, the appropriation still recognized the budget authority totals current cost, but the appropriation unavailable used for any purpose except liquidate the obligation (see sections 20.4(b) and 82.18). 
 
Regardless whether deficiency appropriation needed, all Antideficiency Act violations involving either obligations expenditures must reported the President, the Congress, and the Government Accountability Office accordance with this section. 
 
This discussion does not address those situations which appropriation needed order liquidate obligations that are lawfully incurred, such obligations incurred for excepted activities pursuant the Antideficiency Act (see section 124). 
 
 
 
Antideficiency Act Violation  
Sample Letter the Director 
 
Text box
 
Note: violation occurred section 1341 Title 31, United States Code (U.S.C.), then required reported under section 1351 Title 31, U.S.C. violation occurred section 1517 Title 31, U.S.C., then required reported under section 1517(b) Title 31, U.S.C. 

 
 
 
 
 
 
 
 
Honorable Director 
Office Management and Budget 
Washington, D.C. 20503 
 
Dear Mr. Director: 
 
     Enclosed letter transmitting violation section [1341 1517] Title 31, United States Code the President. 
 
     The Antideficiency Act violation totaled $XXXX.XX. This violation report required section [1351 1517(b)] Title 31, United States Code, submitted the President; being submitted through the Director the Office Management and Budget.  The agency [did] [did not] receive clean audit opinion during the fiscal year(s) which the violation occurred. [The agency has determined that the violation contained willful knowing intent the part the responsible party/parties violate the Antideficiency Act.] comply with the aforementioned provisions, copies the report are also being submitted the President the Senate and the Speaker the House Representatives well the Comptroller General. 
 
 
     Sincerely, 
          Agency Head 
 
 
 
Enclosure 
 
 
 
 
 
Antideficiency Act Violation 
Sample Letter the President 
 
Text box
 
Note: violation occurred section 1341 Title 31, United States Code (U.S.C.), then required reported under section 1351 Title 31, U.S.C. violation occurred section 1517 Title 31, U.S.C., then required reported under section 1517(b) Title 31, U.S.C. 

 
 
 
 
 
 
The President 
The White House 
Washington, D.C. 20500 
 
Dear Mr. President: 
 
This letter report violation the Antideficiency Act, required section [1351 1517(b)] Title 31, United States Code. violation section [1341 1517] occurred account [Treasury symbol and title] the total amount $X,XXX.  The violation occurred [date] connection with [identify the affected program activity] for XXXX.  Mr./Ms. ______________ (rank/grade/title) was [were] the officer(s) responsible for the violation(s).   
 
[Describe the nature the violation (see section 145.2).  Then state the primary reason cause. Include any statement from the responsible officer(s) employee(s) any circumstances believed extenuating.  Include any germane report the agency's Inspector General.]  
 
[State which administrative discipline was imposed well any further action(s) taken with respect the officer(s) employee(s) involved. (see section 145.1)]  
 
[In the case where officer employee suspected willfully and knowingly violating the Antideficiency Act, confirm that all information has been submitted the Department Justice. the agency has determined that violation was not knowing and willful, state such determination including the following sentence, "The agency has determined that the violation contained willful knowing intent the part the responsible party/parties violate the Antideficiency Act."] 
 
[State whether the adequacy the system administrative control has been approved OMB.  (see section 150.7)] 
 
[State whether any additional action need taken prevent recurrence the same type violation.] 
 
[If another agency involved, state what steps are being taken coordinate the report with the other agency.] 
 
 [Identical reports will submitted the presiding officer each House Congress well the Comptroller General. identical the report the President, state.  (see section 145.7)] 
 
      Respectfully, 
       
Agency Head