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AR 37-1, Chapter 6

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AR 37-1, Chapter 6

    DFAS-IN Regulation 37-1 Chapter 3

     February 2010

    SUMMARY OF MAJOR CHANGES

    DFAS-IN REGULATION 37-1, CHAPTER 03

    “PROGRAM AND BUDGET AUTHORITY”

    All changes are denoted by blue font

    Substantive revisions are denoted by a preceding the section,

    paragraph, table, or figure that includes the revision

    Hyperlinks are denoted by underlined, bold, italic, blue font

    EXPLANATION OF CHANGE/REVISION PARA PURPOSE 030211.A.5 Modified IAW “Discussion Paper for Army Budget Office,” Added 03211.C dated November 6, 2009” and E-mail message, dated January

    6, 2010 from USA ASA FMC.

    Multiple Added hyperlinks and for clarity, made minor administrative Updated

    changes throughout the chapter.

    031101.B Updated SD Form 445 to Format 460 Updated 031101.C Added Family Housing Operations Added Throughout Changed MACOMs to ACOMs. Updated

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    TABLE OF CONTENTS

    CHAPTER 3 PROGRAM AND BUDGET AUTHORITY

0301 General

0302 Responsibilities

0303 The Army’s Planning, Programming, Budgeting and Execution System (PPBES)

0304 Authorization (Program)

0305 Program Distribution

0306 Reprogramming

0307 Appropriations

0308 Continuing Resolution Authority

0309 Appropriation Transfers

0310 Apportionments and Reapportionments

    0311 Office of the Under Secretary of Defense (OUSD) Program/Fund Releases

0312 Allowances/Allocations

0313 Allowances/Suballocations

0314 Allowances/Allotments

0315 Internal Fund Distribution

0316 Delegation of Authority

0317 Certification of Fund Availability

0318 Other Funds

0319 Non-Statutory Management Controls

0320 Computation

Table 3-1 Delegation of Obligation Authority

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Table 3-2 Delegation of Obligation Authority International Military Education and Training

    (IMET) Program and Foreign Military Sales (FMS) Credit

Table 3-3 Delegation of Obligation Authority FMS Cash (Dependable Undertaking) and

    FMS Administrative Funds

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    CHAPTER 3

    PROGRAM AND BUDGET AUTHORITY

0301 GENERAL

     The Federal budget approval process is prescribed by law and supplemented by the

    General Accounting Office (GAO) and the Office of Management and Budget (OMB). It

    includes two phases, authorization (program) and appropriation (funds). This chapter provides

    an overview of Army program and budget authority.

    0302 RESPONSIBILITIES

     030201. The Director, Defense Finance and Accounting Service - Indianapolis

    (DFAS-IN) will:

     A. Establish internal control procedures.

     B. Design, operate, and maintain the official fund distribution and control

    system (Program and Budget Accounting System (PBAS)).

     030202. Headquarters Department of the Army (HQDA) appropriation/fund

    sponsor will:

     A. Serve as an official within an Army staff element to supervise a designated

    appropriation or fund.

     B. Initiate reprogramming of funds within the designated appropriation

    during budget execution as the authority on resource requirements.

     030203. The Deputy Assistant Secretary of the Army for Budget (SAFM-BU) will

    serve as head of the Army Budget Office (ABO), and have overall responsibility for budget

    execution of all Army appropriations, including establishment of program controls and

    reprogramming policy.

     030204. SAFM-BU delegates authority for specific appropriations to

    appropriation/fund managers. The appropriation/fund manager will:

     A. Initiate requests for special apportionments through the Deputy Assistant

    Secretary of the Army for Budget, Management and Control Directorate (SAFM-BUC), which

    prepares all apportionment documents and forwards to the Office of the Under Secretary of

    Defense (OUSD).

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     B. Provide data to allow SAFM-BUC to prepare carry-over apportionments

    (for multi-year appropriations) at least 30 days before the end of the fiscal year (FY). The

    Federal Government's yearly accounting period begins on October 1 and ends on the following

    September 30. The fiscal year is designated by the calendar year in which it ends, that is, fiscal

    year 2003 began on October 1, 2002, and ended on September 30, 2003.

     C. Monitor SAFM-BUC actions to initiate apportionment requests and

    Treasury Transfers, Standard Form (SF) 1151 (Non-Expenditure Transfer Authorization), in

    response to OUSD guidance and validate program/fund release documents from OUSD

    Comptroller (OUSD(C)).

     D. Ensure that sufficient budgetary resources are available for execution (for

    example, obligation authority, expenditure authority, cash, and so forth).

     E. Through interaction with the HQDA Fund Control Officer, initiate

    program/fund releases and withdrawals on funding documents to Special Operating Agencies

    (SOAs) and General Operating Agencies (GOAs).

     F. Issue initial quarterly allowances or allocations 10 calendar days before the

    start of each quarter. Make the allowances or allocations effective the first day of the quarter.

     G. Adhere to fund control requirements as specified in Chapter 4.

     030205. SAFM-BUC will:

     A. Provide guidance to the appropriation/fund managers on the

    reprogramming process, the fund control process, and execution reporting process.

     B. Designate the HQDA Fund Control Officer.

     030206. The HQDA Fund Control Officer will:

     A. Prepare all apportionment documents for Army appropriations based on

    OUSD guidance or a request for a special apportionment from the appropriation/fund manager.

     B. Receive all fund control documents from the OUSD(C) and make

    appropriate distribution to the appropriation/fund managers.

     C. Issue program and fund authorizations to HQDA, Army Commands

    (ACOMs), and other activities in coordination with HQDA appropriation/fund managers and

    sponsors. Within this chapter, ACOM refers to Army Commands, Army Service Component

    Commands, and Direct Reporting Units.

     D. Implement Army procedures applicable to administrative control of funds.

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     E. Maintain operational controls and official documentation for all funding authority received by the Army.

     F. Receive validated apportionments/reapportionments, non-expenditure

    transfer authorizations, Treasury Warrants, and OUSD program/fund release documents, and establish appropriate controls in `.

     G. Ensure that proper administrative and statutory controls are maintained on funding documents, in conjunction with appropriation/fund managers and sponsors.

     H. Validate fund and cash availability at appropriation level prior to issuing funding documents.

     I. Authorize and issue funding documents to SOAs and GOAs.

     J. Initiate all non-expenditure transfers for withdrawal of funds (in

    coordination with appropriation/fund managers).

     K. Serve as HQDA technical authority for fund distribution and control of appropriations.

     L. Act on all funding documents initiated by appropriation/fund managers in a timely manner.

     M. Operate as agreed to by the Assistant Secretary of the Army for Financial Management & Comptroller (ASA(FM&C)) and SAFM-BUC under emergency conditions (mobilization, communication network disruption, and so forth).

     N. Adhere to fund control requirements specified in Chapter 4..

     O. Maintain the reprogramming base and provide technical advice on

    reprogramming actions through coordination with the appropriation/fund managers and sponsors.

     P. Identify administrative restrictions and statutory limitations in the

    Appropriation Acts and other public laws through coordination with the appropriation-/fund managers and sponsors. This includes receiving documents from higher authority as they apply to specific or groups of appropriations. (That is, floors, ceilings, fences, targets, limitations, front-end reprogramming controls, and other restrictions).

     Q. Establish program control values within PBAS to maintain administrative controls on funding documents through coordination with the appropriation/fund managers and sponsors. If controls cannot be established in PBAS, pass restrictions to the proper levels through other means (message, memorandum, and so forth).

     030207. Designated SOA officials will:

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     A. Serve as the head of an organizational unit within an ACOM headquarters,

    HQDA staff element, or other agency.

     B. Receive allowances and funding and/or cash authority from the HQDA

    Fund Control Officer or a defense agency.

     C. Notify subordinate GOAs of all administrative and statutory restrictions

    received from HQDA.

     D. Determine whether allocations received are informally controlled

    (allowance) or formally subdivided (suballocation) to subordinate GOAs.

     E. Issue allowances/suballocations to subordinate GOAs.

     F. Issue initial quarterly allowances or suballocations seven calendar days

    before the start of each quarter. Make the allowances or suballocations effective on the first day of the quarter.

     G. Adhere to fund control requirements specified in Chapter 4..

     H. Initiate requests for unexpired funds subject to the one percent limitation,

    based upon valid requests received from subordinate activities. Include information required by

    appropriation/fund managers and sponsors.

     030208. Designated GOA officials will:

     A. Serve as the head of an organizational unit within an ACOM headquarters,

    HQDA staff element, or other agency or command.

     B. Receive funds by allowance or allotment from the HQDA Fund Control

    Officer or a defense agency, or by allowance and suballocation from an SOA.

     C. Receive cash authority from an SOA or the HQDA Fund Control Officer.

     D. Inform subordinate activities about all administrative and statutory

    restrictions received from HQDA or SOAs.

     E. Determine whether the allocation or suballocation received will be

    informally controlled (allowance), formally subdivided (allotment), or maintained by centrally

    managed allotments (CMAs). See paragraph 040301.B this regulation and the DoDFMR,

    Volume 14 for information regarding CMAs.

     F. Initiate requests for customer funding documents from the Order Control

    Module of PBAS (for GOAs functioning as Customer Order Control Points).

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     G. Initiate requests for additional funding, and issue allowances and

    allotments to subordinate activities. This includes requests for unexpired funds subject to the one

    percent limitation based upon valid requests received from subordinate activities. Include

    information required by appropriation/fund managers and sponsors.

     H. Issue funding documents at the highest level practicable with only one

    allowance or allotment per appropriation, per activity.

     I. Account for allocations and suballocations received that will not be further

    subdivided as allotments (including CMAs).

     J. Issue initial quarterly allowances or allotments five calendar days before

    the start of each quarter. Make the allowances or allotments effective on the first day of the

    quarter.

     K. Establish procedures for administrative control of funds issued to

    subordinate activities.

     L. Administer CMAs and ensure that they remain solvent (see Chapter 4.).

     M. Adhere to fund control requirements specified in Chapter 4.

     N. Determine whether centralized, decentralized, or a hybrid combination of

    fund control procedures will be used.

     1. Under centralized fund control, fund allowances, allotments and

    commitment records are maintained and controlled by the Director of Resource Management

    (DRM)/Comptroller. This includes funds received by tenants or agencies directly from GOAs.

    The DRM/Comptroller or delegated Army official certifies fund availability.

     2. Under decentralized fund control, fund allowances and allotments

    are distributed to installation activities, tenants, and agencies as obligation/expense ceilings and

    targets. The activity, tenant, or agency will certify fund availability and maintain commitment

    records. However, overall responsibility for installation or agency funds still resides with the

    allowance or allotment holder.

     3. Under the hybrid combination, fund control may be partly

    centralized and partly decentralized. (For example, fund control for expired years may be

    centralized while fund control for current year is decentralized. Control of funds for payroll may

    be centralized while control of other operating funds is decentralized.)

     O. Perform commitment accounting as directed by Chapter 4..

     P. Adhere to fund control requirements as specified in Chapter 4..

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     030209. The installation commander or head of an agency, tenant activity, or other

    organization will be designated to receive funds from major commands or in some instances

    from defense agencies. Fund control responsibilities may be delegated, in writing, to the

    (DRM)/Comptroller or other appropriate official(s) in accordance with section 0316. Designated

    officials will:

     A. Receive allowances and allotments from GOAs or defense agencies.

     B. Determine whether centralized, decentralized, or a hybrid combination of

    fund control procedures are used.

     C. Perform commitment accounting as required in Chapter 4..

     D. Adhere to fund control requirements as specified in Chapter 4..

     030210. Determinations and control requirements for installation level fund

    availability are based on the following types of funding actions:

     A. Direct and funded reimbursable program received from GOAs.

     B. Direct funding allowances/allotments received from GOAs. Segregate

    unexpired direct funds received subject to the 1 percent limitation from unexpired direct funds

    received for other purposes.

     C. Funded Reimbursable Authority (FRA) received from GOAs.

     D. Automatic Reimbursable Authority (ARA) footnotes received from GOAs.

     E. Cash authority (Funds with Treasury) received from GOAs.

     F. Resource authorizations issued to program and activity directors.

     G. Accepted FRA orders.

     H. Accepted ARA orders.

     I. Obligation authority received on direct fund cites.

     J. Appropriation refunds and creditable returns.

     030211. The serviced activity will receive, control, validate, record, report, and

    analyze funds from the time they are received and issued, until either is expended, withdrawn, or

    canceled.

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     A. Receiving, Controlling and Validating. Budget personnel and managerial

    accountants share fund control responsibilities. Either the budget analyst or managerial

    accountant, as determined by the DRM/Comptroller, will:

     1. Establish and maintain separate transmittal control procedures for

    funding documents and obligation ceilings.

     2. Monitor Fund Allowance System/Fund Authorization Documents

    (FAS/FAD). Ensure that both the budget and accounting activities receive them at the same time.

     3. Review each funding document to ensure the following:

     a. There are no missing funding documents. (For example,

    there are no breaks in FAS/FAD number sequence.)

     b. The FAS/FAD issue date equals or precedes the effective

    date.

     c. All accounting information is correct.

     4. Monitor funding actions for program and activity directors who

    have fund certification authority. This is to ensure compliance with statutes and regulations

    governing the administration and control of appropriated funds.

     ?5. All funding documents received will be recorded into the accounting system of record within 3 business days of the effective date of the funding

    authorization/allowance document (FAD). The accounting entry will be recorded at the required

    DFAS-IN Manual 37-100 designated level. These procedures will ensure full consistent reporting during the accounting month for actions applicable to that month’s reporting.

    Allotment balances will not be recorded prior to the beginning of the effective quarter. .

     6. Verify each recorded funding document to the actual funding

    source document.

     7. Ensure activity directors, who control their own funds, establish,

    maintain, and reconcile fund control records and commitment documents files. Fund control

    records will contain the following elements:

     a. The transaction date of each entry.

     b. Transaction standard document numbers (SDNs).

     c. Funds received/withdrawn.

     d. Funds available balance.

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