USPFO Comptroller Division

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USPFO Comptroller Division

• Funds Management Training

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USPFO Organizational Structure
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PURPOSE

• The purpose of this presentation is to provide
  program managers and functional managers with the
  key areas of funds management.

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OUTLINE

• I. State Budget Process
• A. USPFO
• B. Program Mangers
• C. PBAC
• II. Fiscal Law
• A. Anti-Deficiency Act
• B. Purpose Statute
• C. Bona Fide Need

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OUTLINE(cont)

• III. ADMINISTRATIVE
  CONTROL
• A. Appropriations
• B. Fiscal Code
• C. Obligations
• D. Joint Reviews
• IV. REFERENCES
• V. QUESTIONS

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I. State Budget Process A. USPFO

• The USPFO is a Federal Title 10 employee who
  works for CNGB and supports the National Guard of
  each State.
• Is responsible for the accountability of federal
  funds and property to both the Army and Air
  National Guard.
• USPFO delegates authority, in writing, for the
  administrative control of funds to Program
  Managers as needed to support the TAGs guidance
• Only administration, not responsibility, can be
  delegated.

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I. State Budget Process B. Program Managers

• Criteria
• Individual from within the state
• Appointed by USPFO in writing
• Appointment accepted in writing to the USPFO
• Must be a federal employee.
• Responsibilities
• Develop funding requirements for mission critical
  programs.
• Receive funds from USPFO.
• Maintain financial controls to manage
  commitments,obligations and, obligation
  adjustments.
• Reconciles Commitment Register with Monthly
  Transaction Register (MTR).
• Joint Review with Fiscal Accounting.

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I. State Budget Process B. Program Managers

• Certifies Fund Availability
• Can approve commitment of funds.
• Can approve obligations which will be posted and
  approve payment of federal funds which are
  correct, proper, and authorized.
• Cannot give procurement authority.
• Cannot make a purchase.
• Cannot negotiate a contract with a vendor.
• Sub-Delegation of Authority
• Individual from within area of responsibility.
• Delegation in writing which includes
  instructions, procedures, and proper use of
  funds.
• Accepted in writing
• Federal Employee

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I. State Budget Process B. Program Managers

• Program Manager is responsible for ensuring
  Functional Managers are properly trained in funds
  management.
• Copy of documentation sent to State Budget
  Officer.

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I. State Budget Process C. PBAC

• Program Budget Advisory Committee.
• Members include but are not limited to the Chief
  of Staff (Chairman), Program Managers, and the
  USPFO (Advisory Member).
• Key decision making tool for the prioritization
  and allocation of federal funds in the state.
• Meetings held quarterly but can be scheduled at
  the discretion of the chairman anytime--Fiscal
  Year Close.
• Advise the Adjutant General.
• Determines funding shortfalls and excesses .
• Helps prevent/ avoid potential Anti-Deficiency
  Violations.

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II. Fiscal Law A. Anti Deficiency Act

• The Anti Deficiency Act prohibits any officer or
  employee of the United States from making or
  authorizing commitments, obligations, or
  disbursements from any appropriation or fund in
  excess of the amount available, except as
  authorized by law.
• Anti Deficiency Violation - A violation of
  Section 1517, Title 31, United States Code (USC)
  occurs when a legal subdivision of funds
  (including statutory limitations) is over
  distributed, over committed, over obligated, over
  disbursed, or obligated in advance.

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II. Fiscal Law A. Anti Deficiency Act

• Penalty - Any officer or employee of the US who
  is in violation is subject to appropriate
  administrative discipline, including suspension
  from duty without pay or removal. Those convicted
  of a knowing and willful violation may be fined
  and/or imprisoned.
• Causes
• Failure to monitor project cost.
• Failure to reconcile disbursements to obligation.
• Failure to accurately report and record cost.
• Inadequate controls or no controls were in place.
• Failure to follow established procedures.

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II. Fiscal Law B. PURPOSE STATUTE

• Appropriations shall be applied to the objects
  for which the appropriations were made except as
  otherwise provided by law. 31 U.S.C. 1301(a).
• DFAS-IN REG 37-100-,
• Current Fiscal Year. Ex. 37-100-01.

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II. Fiscal Law C. Bona Fide Need

• Obligation for goods, supplies, services must
  meet the bona fide need of the fiscal year for
  which the funds were appropriated.
• Critical during Fiscal Year Close.
• DFAS-IN 37-1.

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III. Administrative Control A. APPROPRIATIONS

• OPERATING APPROPRATIONS
• National Guard, Personnel, Army(NGPA,2060)
• Operation and Maintenance, Army National Guard
  (OMNG,2065)
• OTHER APPROPRIATIONS
• - Military Construction, Army National Guard,
  (MCARNG, 2085)
• - OM Defense (0100), Types Quality of Life,
• Youth Challenge Program (YCP)
• - NGPA (2061) RR, Advertising
• 2 Year Appropriation

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III. Administrative Control A. APPROPRIATION
NGPA (2060)

• National Guard pay and allowances, clothing,
• subsistence, travel, death gratuities, disability
  and
• hospitalization benefits, bonuses and related
• expenses for Army National Guard personnel in
• connection with active duty, active duty training
  and
• inactive duty for training. The National Guard
• Personnel, Army appropriation is an annual
• appropriation available for obligation through
  each
• fiscal year.

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III. Administrative Control A. APPROPRIATION
OMNG (2065)

• Army National Guard operations and
• maintenance. Includes activities involved
• in the administration of the National Guard
  Bureau training of units procurement of
  organizational equipment, supplies, and repair
  parts services, including equipment maintenance
  and activities in connection with military
  support to civil authorities.
• OMNG is a single year appropriation.

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III. Administrative Control A. APPROPRIATION
MCARNG (2085)

• Military Construction, Army National
• Guard appropriation is multiple year and
  available for obligation for five years.
• Major Construction projects require authorizing
  and funding legislation. This appropriation
  includes construction, modifications, and
• procurement of facilities for the Army
• National Guard as authorized by law.

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III. Administrative Control B. FISCAL CODE

• ACCOUNTING CLASSIFICATION
• Uniform Method of Recording.
• Purpose and Intent
• Record of Authorization and Authority.

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III. Administrative Control B. FISCAL CODE

• Specific Allotment Accounting Class.
• 21 1 2060 18 1016 P1A10.1000 1198 PNAT
  RRM03998Y00201 G39697 PTO W8A3AA S16104
• - 21 Department Code
• 1 Fiscal Year (Last Digit)
• 2060 Appropriation
• 18 Operating Agency
• 1016 Allotment Serial
  Number
• P 1A10.1000 Army
  Management Structure Code
• 1198 Element of
  Resource
• PNAT
  Management Decision Package
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  RRM03998Y00201-Reference Number
• 
  G39697-Army Processing Code
• 
  PTO- Program Manager Code
• 
  W8A3AA - UIC
• 
  S16104-Fiscal Station

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III. Administrative Control B. FISCAL CODE

• BA Budget Activity
• NGPA (2060)
• - BA 1 Unit and Individual Tng
• - BA 2 Other Tng Support
• OMNG (2065)
• - BA 1 100G00.00, Operating Forces
• - BA 4 430G00.00,
• Admin Service wide
  Activities
• (HQ,Recruiting Personnel)

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III. Administrative Control B. FISCAL CODE

• BA1 OMNG (3) Activity Groups AG
• (11) Sub Activity Groups SAG
• AG 110G Operating Forces
• - SAG 110G Special Forces
• - SAG 111G Divisions
• - SAG 112G Corps Combat Forces
• - SAG 113G Corps Support Forces
• - SAG 114G Echelon Above Corps
  Forces
• - SAG 115G Land Forces
  Operations Support
• AG 120G Land Forces systems
  Readiness
• -SAG 122G Land Forces Systems
  Readiness
• -SAG 123G Land Forces Depot
  Maintenance

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III. Administrative Control B. FISCAL CODE

• BA1 OMNG (3) AGs (11) SAGs - cont
• -AG 131G Base Support Operations
• - SAG 131G Base Support
• - SAG 132G Real Property Maint.
• - SAG 133G Mngt.Operational HQ

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III. Administrative Control B. FISCAL CODE

• BA4 OMNG (1) AGs (4) SAGs
• - AG 430G Admin Serv. Activities
• SAG 431G Staff Management
• SAG 432G Information Mngt
• SAG 433G Personnel Admin
• SAG 434G Recruiting. Adver.

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III. Administrative Control B. FISCAL CODE

• Army Management Structure Code (AMSCO)
• -Tells you specifically what the funds can or
  cannot be used for.
• 1A10.1000 - AT Basic Pay Officers
• Element of Resource (EOR)
• Identifies the nature of the expenditure.
• 21T1- TDY Transportation Pmts to Vendors
• Management Decision Package (MDEP)
• Identifies a program within a key parameter
  tracked for execution.
• PNAG - National Guard Pay - AGRs
• PNAT - National Guard Pay - 15 days AT

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III. Administrative Control C. Obligations

• SABERSSTATE
• ACCOUNTING
• BUDGETING
• EXPENDITURE
• RESERVATION
• SYSTEM
• is the official Accounting System for
• the LAARNG financial activities.

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III. Administrative Control C. OBLIGATION
RULESAccounting Stages

• Authority Received
• Reservation
• Obligation
• Disbursement

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III. Administrative Control C. AUTHORITY
RECEIVED

• Authorization provided via a
• funding document(I.e. FAD,
• or FAT), which allows
• obligations to be incurred against the government.

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III. Administrative Control C. RESERVATION

• An Administrative Reservation of funds which
  authorizes the creation of an obligation without
  further recourse to the Certifying Officer.

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III. Administrative Control C. OBLIGATION

• Any type of action that legally binds the U.S.
  Government to make a payment.

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III. Administrative Control C. DISBURSEMENT

• A Payment which satisfies a
• Liability or Claim against the government.

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III. Administrative Control C. DOCUMENTATION

• Obligations are input into the accounting records
  only when supported by valid documentary evidence.

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III. Administrative Control C.
Reservation/ObligationDocuments

• Travel Request / Authorization
• Government/Commercial Bills of Lading (GBL/CBL)
• Purchase Request and Commitment
• Contracts
• Supply Requests / Issues
• Miscellaneous Obligation Documents
• Request for Orders

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III. Administrative Control C. ASSURE
AVAILABILITY OF FUNDS

• Before entering into a binding agreement on
  behalf of the government, the responsible
  official must assure that funds are available.
• Fund Certification occurs at the Reservation
  stage of accounting.

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III. Administrative Control C. Obligations

• TLs must be submitted in sequence - Separate TL
  Log for Fiscal
• Submit TLs daily to allow prompt processing
• Submitted prior to cut off date
• Non-compliant TLs will be returned for corrective
  action

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III. Administrative Control C. Obligations
(continued) Rules of Obligation TYPES OF
CONTRACTS

• NONSEVERABLE
• SERVABLE

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III. Administrative Control C. Obligations
(continued) Rules of Obligations NONSEVERABLE
CONTRACTS

• Single undertaking, not continuing in nature,
  obligate 100 up front.

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III. Administrative Control C. Obligations
(continued) Rules of Obligations NONSEVERABLE
CONTRACTS

• Requirement of current fiscal year
• Start/delivery beyond control of government
• Performance must begin before 1 Jan
• A firm and complete contract is executed before
  30 Sep

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III. Administrative Control C. Obligations
(continued) Rules of Obligation SEVERABLE
CONTRACTS

• Continuing and recurring in nature,
• obligate minimum liability.

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III. Administrative Control C. Obligations
(continued) Rules of Obligation SEVERABLE
CONTRACTS

• Severable contracts covering more
• than one fiscal year must be funded
• by appropriations of the fiscal years
• in which the services are rendered.

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III. Administrative Control C. Obligations
(continued) Miscellaneous Obligation Documents

• Temporary Document used to capture known
  estimated liabilities when formal documentation
  is not available.
• Formal documentation must follow within 30 days!

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III. Administrative Control C. Obligations
(continued) Miscellaneous Obligation Documents
WILL BE USED

• If there is no other type of document to serve as
  obligation document
• Support Agreements
• Communication Services
• Utility Services

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III. Administrative Control C. Obligations
(continued) Miscellaneous Obligation Documents

• An MOD should be recorded each month based upon
  estimated use.
• Separate MODs should be established for each
  AMSCO
• MODs may be adjusted as required.

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III. Administrative Control C. Obligations
(continued) Miscellaneous Obligation Documents
Must Include

• Signature of Authorizing Officials
• Amount of Obligation
• Complete Accounting Classification
• Quantity/Description of Items Being Procured
• Factors used in the Computation or Estimate

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III. Administrative Control D. Funds
Control (continued) RECONCILIATIONS

• THE PRACTICE OF BRINGING TWO OR MORE SEPARATE
  AND INDEPENDENT SETS OF RELATED FIGURES, AMOUNTS
  OR STATEMENTS INTO AGREEMENT.

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS
OBJECTIVE

• MISSING OBLIGATIONS
• TDY VOUCHERS NOT SUBMITTED
• ADSW ORDERS NOT PAID
• IDENTIFY CANCELLATIONS
• IDENTIFY ADJUSTMENTS (/-)

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS

• JOINT RECONCILIATIONS ARE NOT A SUBSTITUTE FOR
  THE PROGRAM MANAGERS DAY-TO-DAY MANAGEMENT.

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS PRIOR
TO THE RECONCILIATION

• POST COMMITMENT LEDGERS DAILY
• SUBMIT OBLIGATION DOCUMENTS TO ACCOUNTING
• REVIEW OBLIGATION PLAN

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS PRIOR
TO THE RECONCILIATION

• REVIEW MONTHLY TRANSACTION REGISTERS
• REVIEW UNLIQUIDATED MASTER LISTING
• IDENTIFY INVALID OBLIGATIONS

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS

• Phase I DEC-JAN
• Phase II MAR-APR
• Phase III JUL-AUG

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS

• Reference para 27-8, DFAS-IN REG 37-1
• At completion of the reconciliation process
  Program Managers are required to certify the
  reconciliation process and results.

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS
BENEFITS

• MORE PURCHASING POWER
• ENHANCED READINESS
• REDUCES EXPIRED ACCOUNT BALANCES

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS
BENEFITS

• PREVENTS ANTI-DEFICIENCY VIOLATIONS
• IDENTIFIES ERRONEOUS PAYMENTS
• DETECT PROCEDURAL DEFECTS

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III. Administrative Control D. Funds
Control (continued) JOINT RECONCILIATIONS
BENEFITS

• REDUCE UNFINANCE DEMAND REQUIREMENTS
• INCREASES CREDIBILITY
• ELIMINATE UNMATCHED DISBURSEMENTS
• IMPROVES INTEGRITY OF FINANCIAL RECORDS

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III. Administrative Control D. Funds
Control (continued) UNLIQUIDATED MASTER LISTING

• PROVIDES INFORMATION CONCERNING THE PROGRAM
  MANAGERS UNLIQUIDATED TRANSACTIONS.

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III. Administrative Control D. Funds
Control (continued) UNLIQUIDATED MASTER LISTING

• PROVIDES A TRANSACTION HISTORY/STATUS
• PROVIDES UNLIQUIDATED OBLIGATION TOTALS
• PRODUCED BY FISCAL MONTHLY AND UPON REQUEST BY
  PROGRAM MANAGER

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IV. References

• NGB PAM 37-1
• Financial Management Guide for NG Executives
• DFAS-IN REG 37-1
• Army Accounting and Fund Control
• DOD 7000.14 Volume 14
• Administrative Control of Funds and
  Antideficiency Act Violations
• LAARNG REG 37-20-1
• Financial Administration
• DFAS-IN 37-100- ( FY)
• Financial Management, Army Management Structure

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V. Questions

• ?