What is the necessary expense rule?
What is the necessary expense rule?
The “Necessary Expense Doctrine” – Where a particular expenditure is not specifically provided for in the appropriation act, it is permissible if it is necessary and incident to the proper execution of the general purpose of the appropriation. – The expenditure must not be prohibited by law.
What are the 3 phases of the appropriation life cycle?
Each appropriation category has three distinct periods during its lifecycle: current period, expired period, and cancelled period.
Is personal office furniture and equipment a necessary expense?
Personal office furniture and equipment: Furniture is not necessarily a necessary expense as in some instances the mission of the agency or the task at hand can be accomplished without furniture.
What is bona fide need rule?
The bona fide needs rule is a rule of appropriations law. It mandates that a fiscal year’s appropriations only be obligated to meet a legitimate—or bona fide—need arising in (or sometimes before) the fiscal year for which the appropriation was made.
What is the purpose statute?
The “Purpose Statute” provides that agencies shall apply appropriations only to the objects for which the appropriations were made, except as otherwise provided by law.
What can O&M funds be used for?
Operation & Maintenance (O&M) Appropriations funds the cost of operating and maintaining equipment at a state of readiness. It covers expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support.
Do no year funds expire?
No Year Appropriations — Appropriations available for obligations for an indefinite period of time without fiscal year limitation. They are available until they are used up.
Do FMS funds cancel?
Canceling obligations is the final phase of the life cycle of appropriations. Funds are not available for obligation, obligation adjustment, or disbursement on September 30th of the fifth fiscal year after the expiration of an appropriation’s period of availability for incurring new obligations (31 U.S.C. § 1552(a)).
What is augmenting an appropriation?
Augmentation of an Appropriation – An unauthorized increase in the amount of authority given to federal agencies to incur obligations and to make payments from Treasury funds.
What is purpose time and amount?
Purpose, Time & Amount 101. Purpose (or the “necessary expense rule”) is what contracts/programs the agencies may fund as defined by congress in appropriations, continuing resolutions, and/or authorizations. A common misnomer is that agencies can fund whatever contract they see fit.
What are expired appropriations?
Expired Appropriation — An appropriation or fund account in which the balance is no longer available for incurring new obligations because the time available for incurring such obligations has expired. Funds may still be available for the recording and/or payment (liquidation) of obligations properly incurred.
How long are OMA funds good for?
Period of availability. Operation and maintenance (O&M) funds are available for 1 year, procurement appropriations for 3 years, and construction funds for 5 years.
What is the difference between the appropriation current and expired?
There are now three distinct phases in terms of availability of appropriations: (1)”Current,” which means the funds are available for obligation; (2) “Expired,” which means they are not available for obligation, only liquidation of previously incurred obligations or certain adjustments to these obligations; and (3) ” …
What happens to the funds after the period expires?
A. Expired funds retain their fiscal year identity for 5 years after the time an appropriation expires (see Chapter 13, subparagraph 130208. B of this volume). Certain appropriations are available for obligation for a specific period, i.e., annual and multiyear appropriations.
What does appropriation mean in law?
3“Appropriates”. (1)Any assumption by a person of the rights of an owner amounts to an appropriation, and this includes, where he has come by the property (innocently or not) without stealing it, any later assumption of a right to it by keeping or dealing with it as owner.
What is the project Order Act?
Project Order. A “project order” is a specific, definite and certain order issued under the authority contained in 41 U.S.C. 23 which, when placed with and accepted by a separately managed DoD establishment, serves to obligate appropriations in the same manner as orders or contracts placed with commercial enterprises.
What is the difference between Oma and Opa funds?
OPA is used for investments, while OMA is used for expenses. 2 states, “Investments are the costs that result in the acquisition of, or an addition to, end items. These costs benefit future periods and generally are of a long-term character such as real property and personal property.”
What is an expired appropriation?
Expired Accounts. Appropriation or fund accounts in which the balances no longer are available for incurring new obligations because the time available for incurring such obligations has expired.