ADMINISTRATIVE CONTROL OF FUNDS

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ADMINISTRATIVE CONTROLOF FUNDS
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Terminal Learning Objective
Action Conditions Standard
Identify Administrative Control of Funds
Procedures. Given DFAS - IN Regulation
37-1. IAW DFAS - IN Regulation 37-1.
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Fund Control Definition

• Fund Control is the authority exercised over the
  receipt, distribution, use, and management of
  appropriations and funds administered by DoD.

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Why Fund Control?

• Must be granted specific authority to spend
  public dollars
• Authority limited by
• Purpose
• Time
• Amount
• Its the LAW

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Anti-Deficiency Act

• Section 1517, Title 31 U.S. Code
• 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.

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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....

1999
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Title 31, U.S. Code Provisions

• Requires the Army to issue a Fund Control
  Regulation
• DFAS-IN Regulation 37-1, Finance and Accounting
  Policy Implementation

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Penalty Provisions

• 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.

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Responsibility for Fund Control

• Installation Commander.
• Delegation of fund certification authority.
• In writing.
• To a named individual.
• Commander still has overall responsibility.

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Keys to Fund Control

• 1. Authority/Funds Received.
• 2. Commitment.
• 3. Obligation.
• 4. Accrued Expenditure.
• 5. Expense.
• 6. Disbursement.

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Commitment

• Administrative reservation of funds
• Authorizes the creation of an obligation
• Certify the availability of funds (fund
  certification)

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Obligation

• Legal reservation of funds.
• Binds the Government to make a payment.

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Fund Control

• Levels of Fund Control.
• Centralized.
• Decentralized.
• Commitment Accounting required for all
  appropriations.

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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).

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Decentralized Fund Control

• Funds certified by budget/ activity directors
• Follow rules of delegation of authority.
• Requires record keeping below the DRM level.

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Formal Commitment Accounting

• Requires recording and control of commitments
  through the general ledger.
• Ensures maximum accounting control.
• STANFINS does not do formal commitment accounting.

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Informal Commitment Accounting

• Requires no general ledger control.
• Commitments maintained at user level.
• dbCAS.
• Commitment accounting system.
• Interfaces with STANFINS.

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Principles of Fund Control

• Enter limitations into accounting records
  immediately.
• Record obligations promptly.
• Reconcile commitments and obligations.
• Pay bills promptly.
• Conduct audits.

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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.

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Command ActionsGood Fund Control

• Delegate fund certification authority.
• Train personnel.
• Ensure project validity.
• Enforce disciplinary measures
• For violations of internal controls.
• For violations of Title 31.

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Terminal Learning Objective
Action Conditions Standard
Identify Administrative Control of Funds
Procedures. Given DFAS - IN Regulation
37-1. IAW DFAS - IN Regulation 37-1.