Four4Four Plan To Avoid ADA Violations. Phil Davidson 3 June 2016 PDI Orlando, FL
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1 Four4Four Plan To Avoid ADA Violations Phil Davidson 3 June 2016 PDI Orlando, FL
2 Overview What is ADA? Power of PURSE ADA Statistics Fiscal Law Box ADA Laws Plan Examples of violations What can cause violations? Punishment How to avoid
3 What is the Antideficiency Act (ADA)? 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
4 Power of the Purse Purpose Time Amount
5 ADA Violation Statistics Last 11 Years # Cases $ Millions How Long? DA YR, 5 Mo DAF YR, 3 Mo USN YR Agencies YR, 11 Mo NOTE: In 2006, NOAA reported 80 ADA violations. They spanned from They were for open-ended indemnification clauses. NOTE: In 2011, Health and Human Services reported 47 ADA violations totaling $1.43 billion. Violations spanned from 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 Four4Four Plan to avoid ADA Violations 4 As Appropriation 31 USC 1341 Apportionment 31 USC 1517 Allotment 31 USC 1517 Sub-allotment 31 USC 1517
9 Appropriation Agency/Account Army O&M When/Where 2012 and 2013 Washington, DC Amount $6.2 million What happened? Army received earmark of $5 million for Korean War 60 th Anniversary Commemoration. Army overspent.
10 Appropriation Agency/Account AF O&M vs MILCON When/Where 2009 USAFA, CO Amount $18.3 million What happened? O&M funds used for solar array construction project. Exceeded statutory O&M threshold.
11 Appropriation Agency/Account AF O&M/PROCURE/RDT&E vs MILCON When Amount $64.3 million What happened? Used O&M, procurement, and RDT&E for two construction projects instead of MILCON. One project was over $57 million. Exceeded O&M statutory limitation. Procurement & RDT&E not available for construction.
12 Appropriation Agency/Account Army O&M vs. MILCON When/where 2011 Bagram, Afghanistan Amount $18.8 million What happened? Total construction project for B- Huts at airfield was funded with O&M. Exceeded $750,000 minor military construction threshold. Project was split. Was there a knowing & willful violation?
13 Appropriation Agency/Account Air Force ANG MILPERS When/Where 2009 Washington, D.C. Amount $9.7 million What happened? AF ANG over-obligated its MILPERS appropriation due to failure to adjust estimates.
14 Appropriation Agency/Account USSOCOM Procure vs. RDT&E When/Where MacDill AFB, FL Amount $136 million What happened? Used procurement for RDT&E project for helicopter development.
15 Appropriation Agency/Account USACE O&M vs. MILCON When/Where 2007 Fort, Houston, TX Amount $8million What happened? USACE used O&M for a classified information facility. Should have used MILCON.
16 Apportionment Agency/Account AF Procurement When/Where 2002 Hill AFB, UT Amount $301 million What happened? Obligated funds for missile procurement under CR in excess of authority prior to receipt of apportionment.
17 Allotment Agency/Account Army Garrison O&M vs. MILCON When/Where 2007 Grafenwoehr, GE Amount $3 million What happened? Army Garrison used O&M for four construction projects instead of MILCON. They split projects.
18 4 Donts Indemnification 41 USC 6301 Obligate in advance 31 USC 1341 Parking/Banking funds 10 USC 2773 Voluntary services 31 USC 1342
19 Indemnification Agency/Account Army O&M When 2006 Amount $0 What happened? Entered into escrow agreements for installation property for three military installations. Army provided full indemnification to escrow agent against all liabilities.
20 Voluntary Services Agency/Account Army NG O&M When/Where Oregon Army National Guard Amount $30,000 What happened? Civilian technicians conducted training on weekends without compensation.
21 4 Mays Allocation/Allowance Target 31 USC 1517 Augmentation Miscellaneous Receipts 31 USC 3302 Purpose 31 USC 1301 Time Bona Fide Needs 31 USC 1502
22 Allocation/Allowance/Target Agency/Account Navy O&M vs. MILCON When 2007 Amount $6.9 million What happened? Navy obligated O&M instead of MILCON for task order for four construction projects. At time, statutory limitation was $500,000 for O&M.
23 Augmentation/Miscellaneous Receipts Agency/Account Air Force O&M When/Where Hanscom AFB, MA Amount $310,000 What happened? Collected reimbursements for state port authority into O&M account and then obligated funds. Should have been deposited into Treasury miscellaneous receipts account.
24 Purpose Agency/Account Navy WCF When/Where 2012 San Diego Amount $2444 What happened? Navy procured ball bearings for a trainer aircraft from non-domestic source. NDAA requires purchase from domestic source.
25 Purpose Agency/Account Army NG O&M When/Where 2000 State of Washington Amount $55,000 What happened? Army NG used O&M to procure services of a private attorney for professional services attorney from a private law firm.
26 Purpose Agency/Account Army Reserve O&M When 2008 & 2009 Amount $81,000 What happened? Army Reserve delayed reporting employee s termination action, and he continued to receive pay and allowances for one year.
27 Time Agency/Account Army MILPERS When/Where 2005 Washington, D.C. Amount $130 million What happened? Army made payment to MEDICARE for FY05 using FY04 funds. Was not correctable.
28 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
29 Punishment Letter of admonishment Letter of concern Letter of caution Letter of notification Memo of reprimand Oral admonishment Oral counseling Verbal admonishment Verbal counseling Written counseling Written memorandum
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, See you in San Diego!
Four4Four Plan To Avoid ADA Violations. Phil Davidson 29 May 2015, PDI New Orleans, LA
Four4Four Plan To Avoid ADA Violations Phil Davidson 29 May 2015, PDI New Orleans, LA Overview What is ADA? Power of PURSE ADA Statistics Fiscal Law Box ADA Laws What can cause violations? Plan Examples
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