Four4Four Plan To Avoid ADA Violations. Phil Davidson 29 May 2015, PDI New Orleans, LA
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1 Four4Four Plan To Avoid ADA Violations Phil Davidson 29 May 2015, PDI New Orleans, LA
2 Overview What is ADA? Power of PURSE ADA Statistics Fiscal Law Box ADA Laws What can cause violations? Plan Examples of Violations How to avoid
3 What is the Antideficiency Act? Where Congress exercises its Constitutional control of public purse Designed to prevent obligations in excess of amounts appropriated To prevent obligations in excess of apportionments and sub-divisions of apportionments No two are alike
4 Power of the Purse Purpose Time Amount
5 ADA Violation Statistics Last 10 Years # Cases $ Millions How Long? DA YR, 4 Mo DAF YR, 3 Mo USN YR, 1 Mo Agencies YR, 11 Mo NOTE: In 2011, Health and Human Services reported 47 ADA violations totaling $1.43 billion. Violations spanned Categories of violations encompassed improper, incremental, and forward funding practices, as well as obligations of expired funds.
6 Fiscal Law Box 1. Constitution and Laws 2. Case Law GAO/Courts/OLC 3. Rules / Regulations DOD FMR 4. Necessary Expense -3 tests
7 What laws make up ADA? The ADA is not one law, but many 31 USC 1341 Appropriations Amount Limitation 31 USC 1342 Voluntary Services Prohibition 31 USC USC And many more
8 What can cause Violations? Lack of appropriate timely training Internal control is violated Minor Construction in using O&M Equipment using O&M Not familiar with CH 4, GAO Red Book Severable / Non severable Within scope change / Exceed scope change
9 Four4Four Plan to avoid ADA Violations 4 A s Appropriation 31 USC 1341 Apportionment 31 USC 1517 Allocation 31 USC 1517 Allotment 31 USC 1517
10 Allocation Agency/ account : Navy WCF Amount: $100,318 Description: Planning and Design costs of two minor construction projects were not financed in minor construction portion of Navy WCF at NAVFAC MIDLANT. When so allocated, Capital Budget exceeded Capital Budget Authority
11 Allocation Agency / Account : Army O&M Amount : $100.2 Million Description : Army FY07 O&M appropriation over obligated to pay USTRANSCOM for certain ocean transportation billings. Bills received in FY08 for FY07 services. ADA reported in FY11.
12 Allotment Agency/Account AF O&M, procure, WCF, & RDT&E. Army O&M and RDT&E. Navy O&M and procurement. Dollars : $23.3 M / $2M / $2.4 M / 8.2 M Description: One ADA at two levels. Violation of 10 USC 2222, pre-certification authority and 31 USC 1517 allotment. When AF attempted to realign funds to proper appropriation, funds were not available at allotment level. Army did not get pre certification approval in FY 07. Violation reported in FY11. Army did not get pre-certification approval in FY08 & FY09. Violation reported in FY11. Navy did not get pre-certification approval in FY04 and FY06. Violation reported in FY11
13 Allotment Agency/ Account: Air Force RDT&E Amount: $821, 694 Description: Air Force Personnel improperly used RDT&E funds to repair and upgrade a building. Should have used O&M. When accounts corrected, O&M not available at sub-allotment level.
14 Obligating in Advance of Apportionment Agency/Account : Air Force/Missile Proc Amount $301,152,402 What Happened? Obligated funds for missile procurement under continuing resolution in excess of available authority prior to receipt of additional apportionment to cover the requirement.
15 Appropriation Agency/ Account: Milpers Amount : $155 Million Description: Army reported a violation in FY08 Milpers. There were many mitigating factors. 5 projects to forecast cost imports have been initiated.
16 Appropriation Agency / Appropriation : USMC O&M Amount: $8.6 million What Happened? Marine Forces Reserve obligated USMC O&M in FY08 for four construction projects at two bases. Should have used Milcon Navy Reserve. Discipline was taken against two individuals. ADA violation reported in FY11.
17 4 May s Allowance / Target 31 USC 1517 Augmentation Miscellaneous Receipts 31 USC 3302 Purpose- 31 USC 1301 Time Bona Fide Needs 31 USC 1502
18 Purpose Agency/ Account : AF TWCF Amount: $11,994 Description: In FY06 and FY07, AF Purchase Card holders used GPC for personal expenses including clothing, entertainment, equipment, bottled water, and paper goods. Reported in FY11.
19 Purpose Agency/ Appropriation : AF Procurement O&M, and MILCON Amount: $5.3 Million What Happened? AF constructed a facility in FY when it should have used MILCON. Project had not been approved by Congress, so uncorrectable. ADA reported in FY11.
20 Purpose Agency/Account : AF WCF Amount: $22.4 Million Description: AF obligated funds in FY99-03 for a software system that was not requested or approved in its Capital Budget. Also, upon attempting correction, funds not available in FY Violation was reported in FY11
21 Purpose Agency/ Account: Army/USACE Revolving Funds Amount: $186,529 What Happened? Two cardholders used GPC for personal, non-government purchases. No appropriation is available for such purchases, therefore ADA violation was incurred.
22 Purpose Agency/ Account: Air Force O&M Amount: $21, 730 What Happened? Purchased light refreshments over fiver year period for regional studies events. Refreshments not authorized under these circumstances
23 Purpose Agency/ Account: Air Force O&M/ Procurement Amount $ 8330 Description: Obligated O&M funds to purchase rifle modification kits. Other procurement was correct account to charge for centrally managed items. Sufficient funds not available at suballotment level.
24 Augmentation Agency/Account: Air Force/ O&M Dollars: $310,381 What Happened? Collected reimbursements from a state port authority into the O&M account and then obligated funds. Should have been deposited into Treasury miscellaneous receipts account.
25 Time Bona Fide Needs Agency/ Account : Air Force / RDT&E Amount: $509,336 What Happened? Air Force issued MIPR to DOE. In FY06, Air Force improperly charged services under this MIPR to expired FY04 RDT&E appropriation. It was new requirement.
26 Time Bona-Fide Needs Agency/ Account: Air Force Procurement Amount: $345, 345 Description: Personnel used an expired account to buy ADPE. Also, used other Procurement when they should have used O&M for 9 purchases below threshold.
27 4 Dont s Indemnification 41 USC 6301 Obligate in advance 31 USC 1341 Parking of funds 10 USC 2773 Voluntary services 31 USC 1342
28 Indemnification Agency/ Account: NOAA/Ops & Research Amount: 0$ What Happened? From 1923 through 2005, agreements with non-profit entities included unlimited indemnification clauses. These constitute open-ended obligations of Government and therefore violate ADA.
29 Voluntary Services Agency/ Account: Army National Guard/ Military Personnel Amount: $30,220 What happened? Civilian technicians conducted training on weekends without compensation.
30 How to avoid Commit to annual training Establish & assess internal control Focus during annual SOA Review GAO s & Databases Read appropriation acts each year Purpose watch GPC buys
31 Thank You Questions? Phil Davidson,
Four4Four Plan To Avoid ADA Violations. Phil Davidson 3 June 2016 PDI Orlando, FL
Four4Four Plan To Avoid ADA Violations Phil Davidson pdavidson@managementconcepts.com 3 June 2016 PDI Orlando, FL Overview What is ADA? Power of PURSE ADA Statistics Fiscal Law Box ADA Laws Plan Examples
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