volume_14

DoD 7000.
14 - R
DEPARTMENT OF DEFENSE
FINANCIAL MANAGEMENT REGULATION
VOLUME 14: “ADMINISTRATIVE CONTROL OF

FUNDS AND ANTIDEFICIENCY ACT VIOLATIONS”
UNDER SECRETARY OF DEFENSE

(COMPTROLLER)
DoD 7000.14-R Financial Management Regulation Volume 14
Volume 14 Table of Contents
CHAPTER 1: “ADMINISTRATIVE CONTROL OF FUNDS” ................................................ 1-1
CHAPTER 2: “ANTIDEFICIENCY ACT VIOLATIONS” ....................................................... 2-1
CHAPTER 3: “ANTIDEFICIENCY ACT VIOLATION PROCESS” ....................................... 3-1
CHAPTER 4: “ARCHIVED” ...................................................................................................... N/A

DoD 7000.14-R Financial Management Regulation Volume 14, Chapter 1
* May 2023
VOLUME 14, CHAPTER 1: “ADMINISTRATIVE CONTROL OF FUNDS”
SUMMARY OF MAJOR CHANGES
Changes are identified in this table and also denoted by blue font.
Substantive revisions are denoted by an asterisk (*) symbol preceding the section,
paragraph, table, or figure that includes the revision.
Unless otherwise noted, chapters referenced are contained in this volume.
Hyperlinks are denoted by bold, italic, blue, and underlined font.
The previous version dated June 2020 is archived.
PARAGRAPH EXPLANATION OF CHANGE/REVISION PURPOSE

Clarified that a DoD Component is not required to submit
an annual evaluation memorandum if the DoD Component
2.12 Revision
does not have centrally managed accounts or is not
reporting a potential ADA violation.
1-1
* May 2023
Table of Contents
VOLUME 14, CHAPTER 1: “ADMINISTRATIVE CONTROL OF FUNDS” .......................... 1
1.0 GENERAL......................................................................................................................... 3
1.1 Overview ........................................................................................................................ 3

1.2 Purpose ........................................................................................................................... 3
1.3 Authoritative Guidance .................................................................................................. 3
2.0 POLICY ............................................................................................................................. 4
2.1 Defense-wide Appropriations ........................................................................................ 4

2.2 Administrative Control Systems .................................................................................... 4
2.3 Reporting Requirements for Administrative Control Systems ...................................... 4
2.4 Delegations of Authority ................................................................................................ 4
2.5 Statutory Limitations and Duties of DoD Officials ....................................................... 4
2.6 Apportionments, Allotments, Suballotments and Allocations ....................................... 6
2.7 Other Fund Management ................................................................................................ 9
2.8 Obligations and Expenditures ...................................................................................... 14
2.9 Reconciliations ............................................................................................................. 14
2.10 Records ..................................................................................................................... 15
2.11 Financial Management Systems ............................................................................... 15
* 2.12 Annual Evaluation ................................................................................................. 16
1-2
* May 2023
CHAPTER 1
ADMINISTRATIVE CONTROL OF FUNDS
1.0 GENERAL
1.1 Overview
The Volume 14 prescribes the requirements for the administrative control of funds and the
Antideficiency Act (ADA) for Department of Defense (DoD) Components. Chapter 1 defines the
statutory restrictions and limitations governing the administrative control of funds. Failure to
comply with these restrictions and limitations is a violation of the ADA. Chapter 2 explains the
ADA and related statutes, causes of violations, and preventive action including training
requirements. Chapter 3 prescribes the requirements for DoD Components when a potential ADA
violation is discovered, conducting an ADA investigation, reporting ADA violations, and
administering disciplinary action. The provisions of this volume take precedence over any
conflicting guidance in other volumes or DoD regulations, manuals, instructions, or directives.
1.2 Purpose
This chapter establishes policy for the administrative control of funds and includes specific
instruction for controlling available funds. The DoD Components are required to establish and
maintain effective controls over appropriations and other funds in accordance with this chapter.
All DoD organizations, appropriations, and funds are subject to the provisions contained herein.
1.3 Authoritative Guidance
Administrative division of apportionments and control of funds is prescribed by Title 31,

United States Code, section 1514(a) (31 U.S.C. § 1514(a)). The Office of Management and
Budget (OMB) Circular No. A-11 prescribes implementing requirements for the control of funds
in Section 150 and Appendix H. Additional authorities:
1.3.1. 31 U.S.C. §§ 1341–1342, 31 U.S.C. §§ 1349-1351, and 31 U.S.C. §§ 1511-1519

(The Antideficiency Act).
1.3.2. 31 U.S.C. § 1101, 31 U.S.C. §§ 1104-1108, and 31 U.S.C. § 3324 (part of the
Budget and Accounting Act, 1921, as amended).
1.3.3. 31 U.S.C. §§ 1501-1502
1.3.4. 31 U.S.C. § 1112, 31 U.S.C. § 1531, 31 U.S.C. § 3511–3512, and 31 U.S.C. § 3524
(part of the Budget and Accounting Procedures Act of 1950).
1.3.5. 2 U.S.C. §§ 681-688 (Congressional Budget and Impoundment Control Act

of 1974).
1-3
* May 2023
2.0 POLICY
2.1 Defense-wide Appropriations
Unless otherwise specified, for purposes of this volume, the Office of the Under Secretary
of Defense, Deputy Comptroller (Program/Budget) is considered a “DoD Component” for matters
involving Defense-wide (Treasury Symbol “97”) appropriations.
2.2 Administrative Control Systems
DoD Components must:
2.2.1. Design systems for the administrative control of funds so that formal administrative
subdivisions of funds are placed at the highest practical organizational level consistent with
effective and efficient management.
2.2.2. Restrict the use of limitations on available funds to those necessary to comply with
statutory provisions, such as those imposed by the appropriate DoD Authorization or
DoD Appropriations Act, or to address specific management requirements.
2.3 Reporting Requirements for Administrative Control Systems
DoD Components must establish a reporting system for the administrative control of funds
process to provide data for reviewing the efficiency (e.g., obligation rate) with which funds are
used. Reporting requirements must be established separately from a formal administrative
subdivision of funds limitation when a need exists for accumulating data below the allocation level.
2.4 Delegations of Authority
All delegations or redelegations of authority or functions under this chapter must be made
in writing. Delegation or redelegation of authority or function is prohibited if the delegation or
redelegation limits the capabilities of the Secretaries of the Military Departments, the Directors of
the Defense Agencies, or designated officials of the Office of the Secretary of Defense to exercise
the control necessary to discharge properly their responsibilities in accordance with this volume.
2.5 Statutory Limitations and Duties of DoD Officials
DoD officials are prohibited from authorizing or creating any obligation or making any
expenditure beyond the amount permitted under any statutory limitation that modifies or restricts
the availability of funds. Special or recurring statutory limitations on DoD funds are frequently
imposed by the DoD Authorization or Appropriations Acts, or may be imposed by other
legislation. Specifically, DoD officials to whom funds are entrusted or apportionments or formal
administrative subdivisions of funds are issued at any level must:
2.5.1. Limit any further subdivision of funds to the amount provided and currently
available.
1-4
* May 2023
2.5.2. Limit the obligation and expenditure of funds provided to the amount currently
available at the time of the obligation or expenditure, enforce those limitations, and ensure that all
personnel involved in administrative control and use of available funds are knowledgeable of such
limitations.
2.5.3. Limit the obligation and expenditure of funds provided to the purposes authorized
by type of fund or account.
2.5.4. Ensure that the obligation and expenditure of funds provide for a bona fide need of
the period of availability of the fund or account.
2.5.5. Preclude acceptance and use of voluntary services, gifts, and donations except in
accordance with specified provisions of law.
2.5.6. Ensure that all personnel, including the actual fund users, contracting personnel, and
other personnel involved in administrative control and use of available funds, are fully aware of,
and comply with, the requirements of the ADA as described in Chapter 2 and other applicable
guidance. Potential ADA violation investigation and reporting requirements are also contained in
this volume.
2.5.7. Ensure that decisions on the obligation of funds comply with the provisions of the
ADA by careful review and examination of the facts involved in advance of the decision.
2.5.8. Enforce compliance with all the provisions of the ADA and other specific laws that
limit the obligation and expenditure of funds.
2.5.9. Maintain internal control systems to ensure that:
2.5.9.1. All available funds are identified, controlled, and recorded in the official
accounting records from the time received until subdivided to others or obligated and expended.
2.5.9.2. All available funds are identified with authorized purposes by account,
period of availability for new obligations, and for the period of availability for expenditure.
2.5.9.3. All special and recurring provisions and limitations on the obligation and
expenditure of funds are identified and documented for all available funds and accounts.
2.5.9.4. All proposed obligations of funds are reviewed to ensure that sufficient
funds are available to cover the obligation, the purpose of the obligation is consistent with the
authorized purposes of the fund or account, and the obligation does not violate any special or
recurring provisions and limitations on the incurrence of obligations.
2.5.10. Issue and maintain appropriate delegations of authority.
2.5.11. Ensure that amounts reported to the Department of the Treasury are accurate, that
is, recorded accurately and posted to the correct appropriation account.
1-5
* May 2023
2.5.12. Ensure that internal controls are in place and operating as required by
DoD Instruction 5010.40, “Managers’ Internal Control Program Procedures.”
2.5.13. Ensure that appropriate training programs are in place to provide all personnel
involved in administrative control and use of available funds with the knowledge of funds control
and the skills and abilities to perform the duties specified in paragraph 2.5. See Chapter 2 for
training requirements.
2.6 Apportionments, Allotments, Suballotments and Allocations
The administrative control of funds process restricts obligations and expenditures

(disbursements) to the amount available at the apportionment, allotment, suballotment and
allocation levels. Apportionments, allotments, suballotments, allocations and other formal
administrative subdivision of funds designated by a DoD Component are subject to the provisions
of the ADA; therefore, obligations and disbursements of funds that exceed these limitations are
violations of the ADA.
2.6.1. Apportionments. An apportionment is a distribution made by OMB of amounts

available for obligation in an appropriation or fund account into amounts available for specified
time periods, program, activities, projects, objects, or any combination of these. The apportioned
amount limits the obligations that may be incurred. An apportionment may be further subdivided
by an agency into allotments, suballotments, and allocations.
2.6.1.1. When DoD appropriations or other funds are required to be apportioned

under law by OMB to a DoD Component, a request for the apportionment or reapportionment
must be prepared and submitted through the Under Secretary of Defense (Comptroller) (USD(C))
to the Director of OMB. A request for an apportionment must be in such form and at such time as
the USD(C) may prescribe to conform to the requirements of the Director of OMB. See
Volume 3, Chapter 2 for the preparation of apportionment or reapportionment schedules and
Volume 3, Chapter 13, paragraph 130303 for the accounting of DoD apportionments and
reapportionments.
2.6.1.2. Obligations during any apportionment period must not exceed the amount
of the apportionment available for that period or of any administrative subdivisions of the
apportionment. Apportionments may include estimates of anticipated budgetary resources;
however, these approved anticipated resources may not be obligated until realized.
2.6.1.3. Apportionments that anticipate the need for a deficiency appropriation or

a supplemental under 31 U.S.C. § 1515 will be specifically identified on the apportionment
request. To qualify as a deficiency apportionment, the request must be required by:
2.6.1.3.1. Laws enacted subsequent to the transmittal of the annual budget

for the year to Congress;
2.6.1.3.2. Emergencies involving human life, the protection of property, or

the immediate welfare of individuals; or
1-6
* May 2023
2.6.1.3.3. Specific authorization by law.
2.6.2. Allotments. An allotment is a subdivision of an apportionment that is made by the

head of an agency (e.g., Secretary of Defense), or designee (e.g., USD(C)), to incur obligations
within a prescribed amount. Formal distribution, i.e., subdivision of an allotment must contain at
least the same statutory and other limitations applicable to the original allotment
(e.g. suballotments/allocations to operating agencies or installation-level accounting activities).
2.6.2.1. The USD(C) must make allotments of apportioned amounts, in writing, to

the heads of DoD Components. The Secretary of a Military Department, or designee, must make
further allotments of apportioned amounts, in writing, to the heads of operating agencies.
2.6.2.1.1. The original signed document or an authenticated copy bearing a

signature or an electronic equivalent of a signature must be forwarded to the recipient of the
allotment. This does not preclude the use of an automated system to communicate and record fund
subdivisions as long as a confirmation copy bearing an authenticated signature or an electronic
equivalent of a signature is available to the recipient via the automated system.
2.6.2.1.2. At a minimum, this document must contain the following basic

information:
2.6.2.1.2.1. Amount available;
2.6.2.1.2.2. Funding source;
2.6.2.1.2.3. Time period of availability;
2.6.2.1.2.4. Position and title of the responsible official and other

agency limitations; and
2.6.2.1.2.5. Justification for changes in allotments.
2.6.2.1.3. A suballotment is a subdivision of an allotment. It is a formal

distribution that must contain at least the same statutory and other limitations and requirements
applicable to the original allotment. Amounts allotted may be suballotted to major subordinate
operating commands.
2.6.2.2. Allotments/suballotments must not exceed the amount available for use
for each apportionment period.
2.6.2.3. The use of an electronically reproduced equivalent of an original signature

is considered an acceptable implementation of the requirement for a document containing an
authenticated signature. However, in accomplishing electronic transmission of fund authorizations
through linked computer systems, internal controls for electronically transmitted allotments and
suballotments must have the following minimum characteristics:
1-7
* May 2023
2.6.2.3.1. Fund control systems must provide validation of fund authorities
by use of access codes and lockout techniques.
2.6.2.3.2. One set of access codes must be used to issue fund

authorizations.
2.6.2.3.3. Other controlled access codes must be used to process a signature

section of fund control documents for transmission to funded activities.
2.6.2.3.4. The authentication, signature element, and symbol must be

included as part of electronically produced funding documents.
2.6.2.4. Anticipated transfers or other items of anticipated receipts may be

allotted/suballotted/allocated only when realized.
2.6.2.5. Allocations are subdivisions of suballotments, or subdivisions of

allotments that are not required to be suballotted (reference subparagraph 2.6.3).
2.6.2.6. DoD Components must not authorize or incur an obligation, or make a

disbursement against anticipated transfer authorizations until the transferred resources are realized.
Such actions must be delayed until the completed Standard Form (SF) 1151,
“Nonexpenditure Transfer Authorization” is received and the resources realized. Nonexpenditure
Transfers are processed using the Agency Transaction Module within the Central Accounting
Reporting System (CARS). See the Treasury Financial Manual
(TFM) Volume 1, Part 2, Chapter 2000 for information and guidance on using the CARS.
2.6.2.7. DoD Components must not authorize or incur an obligation or make a

disbursement against anticipated reimbursements. Such actions must be delayed until the
applicable customer order is received from Federal Government activities and funds are collected
from public activities. See Volume 11A for reimbursable policy.
2.6.3. Allocations. Allocations are subdivisions of suballotments or subdivisions of

allotments that are not required to be suballotted.
2.6.3.1. The recipients of allotments or suballotments, or their designees, must

make allocations in specific amounts to the heads of installations or organizational units of
DoD Components, as required. The total of the amounts allocated must not exceed the amount of
the allotment/suballotment available for each period.
2.6.3.2. A suballocation is a subdivision of an allocation. The recipients of

allocations may make suballocations to the heads of other organizational units, including those of
other DoD Components, as required. The total of the amounts suballocated must not exceed the
amount of the allocation available for use for each period.
1-8
* May 2023
2.6.3.3. Allocations and suballocations must be made in writing and the recipient’s
copy must either be signed by the fund-issuing authority or be an authenticated copy bearing an
authorized authenticated signature or an electronic equivalent of a signature. At a minimum, the
document must contain the following basic information:
2.6.3.3.1. Name or title of the allocation/suballocation recipient.
2.6.3.3.2. Amount of the allocation/suballocation and the period of

availability.
2.6.3.3.3. Legal restrictions or limitations on the obligation and

disbursement of the allocated/suballocated funds.
2.6.3.3.4. The amount of anticipated reimbursements, specified to the

organizational level responsible for receiving the reimbursable orders.
2.6.3.4. In emergency circumstances, it may not be possible to provide a formal

allocation or suballocation document before incurring obligations. Under such emergency
conditions, it may be necessary to use expedited means of communication pending formal
confirmation.
2.6.3.4.1. A telephone or other electronic means may be used to make

arrangements to indicate that funds will be provided. However, the official allocation or
suballocation of funds does not occur until the substantiating documentation of the issuance of
funds has been transmitted by the issuer and received by the recipient.
2.6.3.4.2. In such cases, both the issuer and recipient must document the
funding transaction showing action taken, the date, amount involved, authorizing official, and
method of communication. The issuer must immediately provide a copy of the documentation to
the recipient and request acknowledgment of receipt. The recipient must provide confirmation of
receipt and acceptance to the issuer. The issuer must sign the same documentation and return the
document containing both signatures. The official funds issuance does not occur until this final
double-signed (issuer and recipient) document has been received by the recipient of the funds.
2.6.3.4.3. The recipient is not authorized to issue funds to others or

authorized to incur obligations with the funds received until after receipt of the double-signed
document.
2.7 Other Fund Management
2.7.1. Centrally-Managed Account (CMA). The head of an operating agency that has
specific written approval of the head of a DoD Component may establish CMAs. A CMA is a
formal administrative subdivision of funds (allotment, suballotment, or allocation) that is managed
at the highest practical level and allows officials at a lower echelon to incur obligations or charge
expenditures to the CMA for authorized purposes without further determination or certification of
fund availability for the individual transactions. Fund balances at the
1-9
* May 2023
allotment/suballotment/allocation level are subject to the provisions of 31 U.S.C. § 1517(a)(1).
Fund authorization documents forwarding budget authority to the CMA must include the following
statement: “Authorizing or incurring obligations in excess of the cumulative
allotment/suballotment/allocation amount, contained herein, is a reportable violation of
31 U.S.C. § 1517.”
2.7.1.1. These accounts must be established only when it is impractical to

administer decentralized allotments/suballotments/allocations under normal operating procedures.
The head of an operating agency, usually general officer or Senior Executive Service level, is
responsible for establishing adequate controls to ensure CMA managers are expeditiously
informed of obligations and expenditures at the lower echelon levels to prevent the CMA from
becoming over-obligated/expended. Before approval, a specific written determination must be
made that adequate controls have been established to avoid over-obligating/expending the CMA.
2.7.1.1.1. The amount of the CMA must be within the amount and terms of
the allotment/suballotment/allocation.
2.7.1.1.2. Requests for the establishment of a CMA must fully justify the
need, delineate possible alternatives, and clearly demonstrate why the CMA method is the only
practical administrative procedure.
2.7.1.1.3. The official who establishes or continues the use of a CMA must
be held responsible, to the extent prescribed by law, directive, and regulation, for ensuring that
obligations are not incurred, or expenditures made, beyond the amount available under each CMA.
2.7.1.1.4. The establishing or continuing official is responsible for the

administration of each CMA and must prescribe an adequate system of financial and nonfinancial
control. The system must:
2.7.1.1.4.1. Designate the name or position of specific individuals

authorized to incur obligations or make expenditures against each CMA.
2.7.1.1.4.2. Establish suitable limitations on the numbers, quantities

or volume for which obligations may be incurred or expenditures made.
2.7.1.1.4.3. Provide for accounting and reporting at least monthly.
2.7.1.1.4.4. Ensure timely notice to prevent the CMA from being

over-obligated/expended by taking necessary management action. This may include (a) increasing
the amount of the CMA; (b) terminating the CMA; (c) terminating new obligations or
disbursements; and/or (d) taking other necessary management actions to prevent an
over-obligation/expenditure.
2.7.1.1.5. Each CMA must be reviewed annually to determine whether its

operation should be continued. This determination must be made by the head of the
DoD Component concerned, or designee. The annual review must include an evaluation, by an
1-10
* May 2023
internal audit group, of the adequacy of control procedures established to prevent violations of
31 U.S.C. § 1341(a)(1), 31 U.S.C. § 1517(a), or both, and a recommendation to the head of the
DoD Component concerned, or designee, whether continuation of the CMA is justified.
DoD Components must provide certification as to the adequacy of controls of the CMA. This
certification must be submitted with the annual evaluation required by paragraph 2.12.
2.7.1.2. Components are required to maintain documentation supporting their

assessment and produce it on request. At a minimum, Components must maintain records on the
following:
2.7.1.2.1. Appropriation and dollar value of the CMA.
2.7.1.2.2. Rationale for establishing a CMA and why it is preferable to

other methods of managing the appropriation.
2.7.1.2.3. Individuals primarily responsible for managing the CMA and

ensuring fund controls are properly implemented.
2.7.1.2.4. Organizations authorized to make obligations against the CMA.
2.7.1.2.5. Fund controls in place to establish limits on the amount and type
of obligations that may be charged to the CMA.
2.7.1.2.6. Monthly execution monitoring and procedures.
2.7.1.2.7. Date and method of testing of internal controls.
2.7.2. Reimbursable Orders. A reimbursable order is an order for services, supplies,

material, or equipment placed by a requiring DoD Component (or Federal Agency) and furnished
by another DoD Component (or Federal Agency) without separate identification of the items, or
separate citation of the funds of the requiring DoD Component; and with subsequent delivery to
and reimbursement by the requiring DoD Component. The requiring DoD Component records the
reimbursable order as an obligation when the procuring DoD Component accepts the reimbursable
order in writing. See Volume 3, Chapter 8 for recording standards.
2.7.2.1. DoD organizations may be authorized by law to accept reimbursable

orders for services provided or goods sold to other Federal Government-funded customers and
authorized private parties.
2.7.2.2. Apportioned reimbursements must not be allotted/suballotted/allocated

unless there is reasonable assurance that orders will be received. Even though apportioned and
allotted/suballotted/allocated, these estimates must not be considered budgetary resources
available for obligation unless the following two conditions are met:
2.7.2.2.1. Valid orders, including written agreements, have been received

from and obligated by Federal Government-funded customers.
1-11
* May 2023
2.7.2.2.2. Advance payment has been collected, in the case of orders from
the public.
2.7.2.3. Officials responsible for incurring obligations and making expenditures

must be particularly cognizant of reimbursable authority received. Controls must be established
and carefully followed to avoid obligating or expending in excess of the amount of appropriated
funds available, plus the amount of reimbursements that ultimately will be earned and collected.
2.7.2.4. Under certain circumstances, and only with the prior written approval of
OMB, immediate and automatic apportionment of the amounts of reimbursable orders received
and accepted may be authorized.
2.7.2.5. Reimbursable orders received from state or local governments, recognized

international bodies such as the United Nations and North Atlantic Treaty Organization, foreign
governments, corporations, or individuals are subject to special controls.
2.7.2.5.1. These orders are to be recognized as reimbursable orders

received only to the extent that cash has been received and deposited with the Treasury. The
exception is Foreign Military Sales (FMS) orders. Contract authority may be recognized for FMS
orders based upon a dependable undertaking when cash advances are not provided for the full
amount of the order from a foreign government or international body. Bills are then presented for
payment from the account established in the FMS Trust Fund for the applicable country.
2.7.2.5.2. FMS disbursement controls must be established to ensure that

disbursements are not made until the cash is actually received from the foreign country and
deposited in the Treasury FMS Trust Fund. Expenditure authorizations are used to ensure that
funds are available in the account for the country involved before disbursements are made.
2.7.2.6. Reimbursable orders that are financed by appropriated or revolving funds

of Federal agencies provide expenditure as well as obligational authority.
2.7.3. Revolving Funds. A revolving fund is an account authorized by specific provisions

of law to finance a continuing cycle of business-type operations and to incur obligations and
expenditures that generate receipts.
2.7.3.1. General. Obligations and expenditures of a revolving fund, whether

subject to, or exempt from, apportionment, must be controlled under applicable provisions of this
chapter.
2.7.3.2. Cash Balances. The disbursement of amounts in excess of the

Department of the Treasury cash balance of a revolving fund is a potential ADA violation.
Additionally, the disbursement of amounts in excess of the balance of sub-numbered cash accounts
or other subdivisions of cash within a revolving fund is a potential ADA violation when such sub-
numbered accounts or subdivisions have been specifically designated as being subject to the
provisions of the ADA.
1-12
* May 2023
2.7.3.3. Apportionment. A revolving fund may be subject to apportionment or it
may be exempt from apportionment, depending upon the type of fund.
2.7.3.3.1. Revolving Funds Subject to Apportionment. An apportionment

limits the obligations that may be incurred to the apportioned amount. The incurring of obligations
in excess of apportioned budgetary resources is a potential ADA violation without regard to
whether a revolving fund has additional unapportioned budgetary resources or other assets equal
to or greater than the amount of the deficiency.
2.7.3.3.1.2. Revolving Funds Exempt from Apportionment. A revolving

fund that is exempt from apportionment may not incur obligations in excess of available budgetary
resources. The incurring of obligations in excess of available budgetary resources is a potential
ADA violation.
2.7.3.4. Budgetary Resources. The incurring of obligations in excess of budgetary

resources is a potential ADA violation. The concept of “budgetary resources” is defined and
explained in OMB Circular A-11, “Preparation, Submission, and Execution of the Budget.”
Budgetary resources available to revolving funds are composed of the same elements as budgetary
resources available to appropriated funds. Further, while budgetary resources available for
obligation for reimbursable work differ depending upon whether a reimbursable order is accepted
from a Federal Government account or from the public, such budgetary resources are determined
in the same manner for a revolving fund as they are for an appropriated fund.
2.7.3.4.1. Orders from other Federal Government Agencies. Funded orders

from other Federal Government agencies, that represent valid obligations of the ordering account,
provide a budgetary resource without regard to whether they are accompanied by an advance
payment.
2.7.3.4.2. Orders from the Public. Orders from the public

(except FMS orders) including local and state governments and international organizations
(e.g., United Nations), provide a budgetary resource only to the extent that the order is
accompanied by an advance payment of cash received and credited to the account.
2.7.3.5. Organizational Level for Revolving Fund Potential Violations. Systems

for the administrative control of revolving funds should be placed at each organizational level at
which budgetary resources may be received, held, transferred, obligated, or expended. The lowest
organizational level for administrative control purposes generally should be the level, frequently a
single site, at which an obligation may be incurred or expenditure approved. In the case of a
revolving fund account that encompasses operations at multiple sites, responsibility for potential
ADA violations generally should not be assigned to an organizational level lower than the level at
which the administrative control system is adequate to prevent and detect a potential violation of
the ADA.
1-13
* May 2023
2.8 Obligations and Expenditures
Available funds are used by the incurrence of obligations and expenditures. An amount
must be recorded as an obligation or expenditure when incurred as supported by documentary
evidence of the occurrence of the event. An oral order or agreement must be formalized in writing
or conform to prescribed electronic standards in order to provide proper support and an audit trail
for an obligation. Oral orders executed in this manner without a formal commitment of funds run
a high risk of violating the ADA and should be avoided if possible. See Volume 3, Chapter 8 to
determine the amount and accounting period in which commitments and obligations must be
recorded.
2.8.1. Once incurred, all obligations and expenditures must be recorded, accurately and
promptly, as of the date incurred even if recordation results in a negative amount in the accounting
records for an appropriation or fund, or a formal administrative subdivision of an appropriation.
(For this purpose, negative amount means that obligations or disbursements exceed the amount of
funds that are appropriated or otherwise available.) A violation resulting from a negative amount
is caused by the actions of the individual(s) who caused or created the obligation. The recording
of the obligation in the accounting system merely records an obligation that already exists.
2.8.2. Adjustments in obligations may consist of recording changes to obligation amounts

that existed in a prior period that may or may not have been identified and recorded during that
period. If an adjustment causes total obligations for a prior period to exceed the amount that was
available for obligation for that prior period after consideration of all known valid obligations and
deobligations, violations of 31 U.S.C. § 1341(a)(1), 31 U.S.C. § 1517(a), or both, may have
occurred.
2.8.3. A within-scope contract adjustment is properly chargeable to the funds that funded
the original contract. Such adjustment must be charged to those funds even if sufficient funds are
not available. If sufficient funds are not available, a potential violation may have occurred.
2.8.4. An increase-in-scope adjustment to a contract is properly chargeable to funds

currently available at the time the change was made.
2.9 Reconciliations
DoD managers at all levels must ensure that accounting records for receipt and use of
budgetary resources are reconciled. Obvious accounting errors must be corrected immediately and
negative account balances must be researched and reconciled promptly with appropriate source
documents.
2.9.1. Transactions or adjustments must be recorded in accounting records only when

supported by appropriate source documents or electronic equivalents. Managers must not permit
identified errors to go uncorrected for extended periods of time, inaccurate transactions to be
recorded or failures to record transactions in a timely manner. Due diligence is necessary in order
to avoid the appearance of a potential ADA violation that occurred because of careless record
keeping.
1-14
* May 2023
2.9.2. An ADA investigation must be initiated by the applicable DoD Component and
reported to the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) as required by
this volume if a manager suspects that a potential ADA violation may have occurred. However,
investigations of potential ADA violations are not required merely to force correction of erroneous
records.
2.10 Records
2.10.1. The Defense Finance and Accounting Service (DFAS), working with other
DoD Components, must ensure that accounting records are maintained that provide full disclosure
and support of the financial operations and resource utilization applicable at each successive
organizational level. The accounting records must show the amounts of funds received at each
organizational level, funds issued to others, current available balances, and funds committed,
obligated, and expended.
2.10.2. These fund control records must constitute an integral part of the official
accounting records maintained for each successive organization level for the DoD Component.
Financial reports reflecting funds received, issued, available, and utilized must be prepared from
the official accounting records.
2.10.3. DoD Components must maintain key records and documents on appropriations,
allotments/suballotments, allocations/suballocations, and budgetary data for the funds for which
they are responsible.
2.10.4. DoD Components must retain, for 6 years, 3 months, work papers and
documentary evidence developed and/or obtained during an investigation of an actual or potential
ADA violation.
2.11 Financial Management Systems
In addition to effective and efficient administrative funds control systems established by

the DoD Components, the DFAS and/or DoD Component must be responsible for establishing
accounting and finance systems. The accounting and finance systems must be established for
reporting commitments and obligations by the DFAS and/or DoD Component. Such systems of
accounting and internal controls must comply with the requirements of
31 U.S.C. § 3512(b) and (c).
2.11.1. Federal agencies must maintain systems of accounting and internal controls that
ensure:
2.11.1.1. Complete disclosure;
2.11.1.2. Adequate financial information;
2.11.1.3. Effective internal control over and accountability for assets;
1-15
* May 2023
2.11.1.4. Obligations and costs comply with applicable laws;
2.11.1.5. Revenues and expenditures or expenses applicable to DoD operations are

accounted for properly so that accounts and reliable financial and statistical reports are prepared
and accountability of assets is maintained;
2.11.1.6. Suitable integration of DoD accounting with the central accounting and
reporting responsibilities of the Secretary of the Treasury under 31 U.S.C. § 3513; and
2.11.1.7. All assets are safeguarded against waste, loss, unauthorized use, and
misappropriation.
2.11.2. Specifically, financial management systems must be:
2.11.2.1. Designed to assist responsible officials in restricting authorization or

incurrence of obligations to the proper amount and authorized purpose for which obligational
authority is available.
2.11.2.2. Capable of providing timely disclosure of the authorization or creation of

an obligation and the disbursement of funds in excess of amounts available in both expired and
unexpired accounts.
* 2.12 Annual Evaluation
The OUSD(C) requires DoD Components to conduct an annual evaluation of its overall
administrative funds control processes as well as the processing of ADA violations. The DoD
Components are not required to submit an annual evaluation memorandum if the DoD Components
do not have centrally managed accounts or are not reporting a potential ADA violation. The
applicable Office of the Assistant Secretary of the Military Department for Financial Management
and Comptroller or the Senior Financial Manager for other DoD Components will provide an
annual evaluation memorandum addressed to the OUSD(C). The memorandum must address the
following information in subparagraph 2.12.1 and be submitted by October 31:
2.12.1. Memorandum Certification Statements.
2.12.1.1. “For Fiscal Year 20xx, the internal controls over centrally managed
accounts were in place and effective. Monthly accounting and reporting processes are adequate to
reduce the risk of over obligations.”
2.12.1.2. “Corrective actions are being implemented and/or sustained and adequate
evidentiary documentation is available to support this certification.”
2.12.1.3. A statement that provides the number of key fund control personnel
identified and trained as prescribed in Chapter 2, paragraph 020401.
1-16
* May 2023
VOLUME 14, CHAPTER 2: “ANTIDEFICIENCY ACT VIOLATIONS”
Substantive revisions are denoted by an asterisk (*) symbol preceding the section,
paragraph, table, or figure that includes the revision.
Hyperlinks are denoted by bold, italic, blue and underlined font.
The previous version dated June 2020 is archived.

All This chapter has been certified as current. Current
2-1
* May 2023
Table of Contents
VOLUME 14, CHAPTER 2: “ANTIDEFICIENCY ACT VIOLATIONS” ................................. 1
1.0 GENERAL......................................................................................................................... 3
1.1 Purpose ........................................................................................................................... 3

1.2 Authoritative Guidance .................................................................................................. 3
2.0 VIOLATIONS ................................................................................................................... 5
2.1 General Violations.......................................................................................................... 5

2.2 Recording Obligations/Expenditures ............................................................................. 6
2.3 Recording Errors/Omissions .......................................................................................... 6
3.0 CAUSES OF VIOLATIONS............................................................................................. 6
4.0 PREVENTING VIOLATIONS ......................................................................................... 7
4.1 Requirements .................................................................................................................. 7

4.2 Common Violations ....................................................................................................... 9
Figure 2-1. Potential Violations................................................................................................ 14
Figure 2-2. Violation Examples................................................................................................ 16
Figure 2-3. Reference Hyperlinks ............................................................................................ 19
2-2
* May 2023
CHAPTER 2
ANTIDEFICIENCY ACT VIOLATIONS
1.0 GENERAL
1.1 Purpose
This chapter explains the Antideficiency Act (ADA) and related funding statutes that
consist of certain provisions of law prescribed in sections (§) of Title 31, United States Code
(U.S.C.). It also provides examples of circumstances in which ADA violations may occur and
establishes requirements to prevent ADA violations. Additional requirements are contained in
Volume 3, Chapter 11. Any military member or Department of Defense (DoD) employee who
violates any provision or limitation imposed by any law may violate the ADA and be subject to
discipline and/or criminal penalties.
1.2.1. The ADA, prescribed in 31 U.S.C. §§ 1341–1342, and 31 U.S.C. § 1517, prohibits
obligations and expenditures in excess of an appropriation or before an appropriation is available.
31 U.S.C. § 1517 is the primary foundation for the administrative control of funds set forth in
Chapter 1. See Figure 2-3 for additional references.
1.2.1.1. Amount Limitation. 31 U.S.C. § 1341 stipulates that any officer or

employee of the United States Government or of the District of Columbia government may not:
1.2.1.1.1. Make an obligation, expenditure, or authorize an obligation or

expenditure of funds that exceeds the amount available in an appropriation or fund.
1.2.1.1.2. Involve the Government in any contract or obligation for the

payment of money before an appropriation is made available, unless the law authorizes such
contract or obligation.
1.2.1.2. Voluntary Services Limitation. 31 U.S.C. § 1342 stipulates that an officer

or employee of the United States Government or of the District of Columbia government may not
accept voluntary services on behalf of the Government or employ personal services in excess of
that authorized by law, except as it may be necessary in emergencies involving the safety of human
life or the protection of property.
1.2.1.3. Administrative Control of Funds, Amount Limitation. 31 U.S.C. § 1517

stipulates that an officer or employee of the United States Government or of the
District of Columbia government may not make an obligation or expenditure or authorize an
obligation or expenditure that exceeds an apportionment or amount permitted by a regulation
prescribed for the administrative control of an appropriation, including any other formal
administrative subdivision of funds designated by a DoD Component. See Chapter 1 for DoD
administrative control of funds policy.
2-3
* May 2023
1.2.2. 31 U.S.C. § 1301, 31 U.S.C. § 1502(a), and 31 U.S.C. § 3302(b) are additional
funding statutes. Noncompliance with these statutes may result in an ADA violation.
1.2.2.1. Purpose Statute. 31 U.S.C. § 1301 stipulates that appropriations must be

applied only to the objects for which the appropriations were made, except as otherwise provided
by law.
1.2.2.2. Time Limitation. 31 U.S.C. § 1502(a) stipulates that the balance of a

fixed-term appropriation is available only for payment of expenses properly incurred during the
period of availability or to complete contracts properly made and obligated within that period. See
Volume 3, Chapter 8 for obligation policy and Volume 3, Chapter 10 for expired and closed
account policy.
1.2.2.3. Miscellaneous Receipts Statute. 31 U.S.C. § 3302(b) requires an official

or agent of the Government to deposit money received for the Government from any source into
the miscellaneous receipts account of the U.S. Treasury without deduction for any charge or claim
if the retention of the money is not authorized or exceeds authorized levels.
1.2.3. If sufficient amounts were available in the proper account for the proper fiscal year
at the time of the obligation, and the amount is properly recorded as an obligation, then the use of
the wrong appropriation (purpose) or the wrong fiscal year funds (time limitation) generally will
not result in an ADA violation. It may be possible to adjust the accounts to replace the erroneously
obligated funds with the proper funds. Under these conditions, the error can and should be
corrected.
1.2.3.1. The use of the wrong appropriation (purpose) can be corrected if the proper
funds (appropriation, year, and amount) were available at the time of the erroneous obligation,
available during the entire period from the time of obligation until the time of correction, and
available at the time of correction. In other words, to correct the error, not only must amounts
have been properly available at the time of the error and be available at the time of correction, but
the correct amount must be properly recorded as an obligation in the proper account, consistent
with paragraph 2.2, thereby requiring accounting adjustments going forward from the time of
correction to account for the change in balance. Funds must be available at the lowest level of the
administrative subdivision of funds, i.e., the lowest level of the appropriation, apportionment,
allotment, suballotment, or allocation at which the ADA violation occurred.
1.2.3.2. The use of the wrong fiscal year funds (time limitation) can be corrected
if the proper funds (appropriation, year, and amount) were available during the entire period from
the time of obligation until the time of correction, at the time of the erroneous obligation, and at
the time of correction. In other words, to correct the error, not only must amounts have been
properly available at the time of the error and be available at the time of correction, but the correct
amount must be properly recorded as an obligation in the proper account, consistent with
paragraph 2.2, thereby requiring accounting adjustments going forward from the time of correction
to account for the change in balance. Funds must be available at the lowest level of the
administrative subdivision of funds, i.e., the lowest of the appropriation, apportionment, allotment,
suballotment, or allocation level at which the ADA violation occurred.
2-4
* May 2023
1.2.3.3. See Volume 3, Chapter 8, paragraph 080304.A for Bona Fide Need
recording requirements.
2.0 VIOLATIONS
2.1 General Violations
General ADA violations occur when:
2.1.1. Statutory limitation was exceeded for the amount authorized in an appropriation or
fund, to include special and recurring statutory limitations or restrictions on the amounts for which
an appropriation or fund may be used.
2.1.2. Statutory limitation on the purposes authorized in an appropriation or fund was

violated and upon correction into the proper appropriation or fund, funds were not available at the
time of the erroneous obligation or were not available when the obligation was recorded in the
proper appropriation or fund.
2.1.3. Funding authority was issued in excess of the amount available in an appropriation
or fund and the excess amount was obligated or expended. The issuance of funds by means of a
formal administrative subdivision of funds (apportionment, allotment, suballotment, allocation or
other formal administrative subdivision of fund), in an amount that exceeds the amount currently
available, would result in an ADA violation if those excess funds distributed are obligated or
expended. The issuance of a reimbursable order in excess of available funds may also result in an
ADA violation.
2.1.4. Obligations or expenditures are authorized or incurred in excess of the amount of

funds available at the formal administrative subdivision of funds level. Apportionments,
allotments, suballotments, allocations and other formal administrative subdivision of funds
designated by a DoD Component are subject to the provisions of the ADA; therefore, obligations
and disbursements of funds that exceed these limitations are violations of the ADA. Incurring an
obligation or disbursement in excess of a target versus a formal administrative subdivision of funds
does not in itself create an ADA violation; however, if exceeding a target causes the governing
formal administrative fund subdivision level or limitation to be breached, then a potential ADA
violation arises. Errors that require correction by obtaining additional funds at a formal
administrative subdivision of fund level cannot eliminate the fact that a violation likely has
occurred and must be investigated. An exception applies when funds are required at the formal
administrative subdivision level but funds were returned to higher headquarters as the result of the
customary practice of sweeping up funds near the end of a fiscal year.
2.1.5. Obligations were made or authorized in advance of funds being available.
2.1.6. Obligations or expenditures of funds did not provide for a bona fide need of the fund
or account (time violation) and upon correction into the proper fund or account, proper funds were
not available at the time of the erroneous obligation or were not available when the obligation was
recorded in the proper fund or account.
2-5
* May 2023
2.1.7. Obligations charged against a current account that would otherwise be properly
chargeable (except as to amount) to an expired account, but sufficient funds did not exist in the
applicable expired account to fund the obligation.
2.1.8. Obligations that otherwise would have been properly chargeable (both as to purpose
and amount) to a canceled appropriation exceeds the limits specified in Volume 3, Chapter 10,
subparagraph 100303.D.
2.1.9. Voluntary services were accepted, or personal services were employed, except as
authorized by law.
2.1.10. Funds were retained without authority and were not deposited into the
miscellaneous receipts of the U.S. Treasury but instead augmented an appropriation and, as a
result, obligations or expenditures exceed the amount appropriated by Congress.
2.2 Recording Obligations/Expenditures
A violation may not be avoided by declining to record valid obligations or expenditures in

the official accounting records. All obligations or expenditures must be recorded accurately and
promptly, even if the recording results in a negative amount in the appropriation, fund, or at the
formal administrative subdivision of funds level.
2.3 Recording Errors/Omissions
An ADA violation is not considered to have occurred when an over-obligation or

over-expenditure results solely from recording a transaction in an erroneous account or recording
an incorrect amount for a transaction. In each instance, the potential violation status is eliminated
by correcting the erroneous transaction or by posting the omitted transaction. These actions must
not include the deletion or adjustment of any valid transactions. If, after the proper recording of
the transactions, an over-obligation or expenditure of the appropriation, fund or amount limited by
a formal administrative subdivision of funds remains, then a potential ADA violation has occurred.
3.0 CAUSES OF VIOLATIONS
ADA violations occur for several reasons. The following is a list of the most frequent
causes of DoD ADA violations:
3.0.1. Inadequate or obsolete internal controls and standard operating procedures;
3.0.2. Internal controls and standard operating procedures that are ignored;
3.0.3. Lack of appropriate training; and
3.0.4. Inadequate supervisory involvement or oversight.
2-6
* May 2023
4.0 PREVENTING VIOLATIONS
4.1 Requirements
Inadequate supervisory involvement and oversight combined with a lack of appropriate

training are common throughout most DoD ADA violations. Therefore, supervisors of DoD
personnel who have responsibility for control and use of DoD funds must ensure that their
personnel receive proper oversight, support, and training to prevent violations. To assist in the
prevention of ADA violations, DoD personnel must be knowledgeable of requirements in this
chapter and Chapter 1. The following subparagraphs provide specific actions that must be taken
to reduce or prevent violations.
4.1.1. Heads of DoD Components must:
4.1.1.1. Use the internal management control programs as required by

DoD Instruction 5010.40, “Managers’ Internal Control Program Procedures,” to periodically
assess the reliability of internal controls to prevent ADA violations.
4.1.1.2. Develop a full spectrum of DoD formal education programs for all military
officers, from staff officer courses to executive development courses, and incorporate relevant
aspects of this volume to highlight the potential pitfalls and risks associated with the ADA. This
volume must be used as source material to conduct seminars and workshops targeted to general
and specific audiences including financial, program, and project managers; engineers; contracting,
information system, and comptroller personnel; commanders; supervisors; and managers.
4.1.1.3. Develop formal education structures to educate personnel about the ADA.
Formal courses can be used to alert personnel to common violations and high-risk business
transactions and decisions that can result in a violation. Course materials will clearly state that
taxpayer funds should not be spent when the requirement is no longer needed, i.e., the requirement
is no longer a bona fide need at that time. The DoD financial management community sponsors
professional development courses that include discussions on ADA violations. These courses
include the Army Comptroller and Advanced Resource Management Programs at Syracuse (NY)
University; the Naval Post Graduate School at Monterey, California; and the Defense Financial
Management and Comptroller School at Maxwell Air Force Base, Alabama. In addition, the U.S.
Army Judge Advocate General School at Charlottesville, Virginia, includes a fiscal law course in
its curriculum; and both the Enhanced Defense Financial Management training course hosted by
the American Society of Military Comptrollers and the Under Secretary of Defense (Comptroller)
Defense Financial Management Certification Program include fiscal law in their accreditation
programs.
2-7
* May 2023
4.1.2. DoD commanders, supervisors, and managers must:
4.1.2.1. Be aware of the ADA, related funding statutes, types of violations, and
causes of violations as described in this chapter.
4.1.2.2. Provide appropriate ADA training to financial, program, and project

managers; engineers; and contracting, information system, and comptroller personnel. Provide
fiscal law training to educate DoD personnel with regard to their fiduciary and legal
responsibilities to prevent wasteful spending of appropriated funds. The focus of this training must
include the basics of fund control, the ADA statute, and related funding statutes; the types of
violations that can occur; the most frequent types of violations that occur within the DoD and their
causes; the necessary training, supervision, and oversight of personnel who perform financial
management or programmatic functions; and methods for preventing violations. Require that all
executive development and financial management course content be updated to ensure proper use
and good stewardship of appropriated funds. The training must be maintained to ensure the
information remains current. Videos, computer courses or handbooks may be used for such
training.
4.1.2.3. Identify key fund control personnel, incorporate the provisions of this
volume into key fund control personnel training programs, require that key fund control personnel
receive appropriations law training at least every three years, maintain the documents that identify
key fund control personnel, and maintain documents that confirm completion of the appropriations
law training. Key fund control personnel are those responsible for the proper assignment of
funding on a commitment or obligation document before the obligation is incurred. Examples are
resource managers, fund holders, funds certifying officials, and authorizing officials. Key fund
control personnel should inquire with their individual DoD Components as to the appropriate
source of training that satisfies this requirement. Appropriations law training requirements for
certification of fund availability are separate from training requirements for certification for
payment. Personnel that certify vouchers for payment must adhere to additional requirements as
prescribed in Volume 5, Chapter 5.
4.1.2.4. Ensure key fund control personnel coordinate with requiring officials, such
as program managers, contracting officers, and engineers, to verify that requests comply with
funding statutes applicable to the assignment of funding on a commitment or obligation document
before the obligation is incurred. This coordination should include ensuring delivery of supplies
and/or the period of performance for services aligns with the lifecycle of the associated funds such
that the obligation meets the bona fide need rules laid out in Volume 3, Chapter 8,
subparagraph 080304.A. Key fund personnel must review and verify on a continuous basis that
the goods and/or services are still needed. Key fund control personnel must not spend taxpayer
funds when goods and/or services are no longer needed.
2-8
* May 2023
4.1.2.5. Ensure that their employees receive the necessary training and experience
in the control and use of funds at levels that correspond with their responsibilities. Furthermore,
supervisors must perform oversight and validation checks to ensure that established internal
controls and standard operating procedures are adequate and are being consistently followed by
their subordinates. Inadequate supervisory involvement or oversight combined with lack of
appropriate training is common in DoD ADA violations.
4.1.2.6. Ensure regular reviews of fund status type reports are performed. If the
amount of commitments and obligations (undelivered orders and delivered orders unpaid or paid)
exceed the total amount available in an appropriation or the total amount of funds available at the
formal administrative subdivision level, a violation could occur if all or some of the commitments
eventually become valid obligations.
4.1.2.7. Take proactive measures specifically tailored to address the causes and
corrective actions required to prevent violations. See section 3.0 for causes of violations.
4.2 Common Violations
To prevent ADA violations, DoD personnel must be knowledgeable of the most common
and frequent types of ADA violations to include the following:
4.2.1. Exceeding an Appropriation.
4.2.1.1. All DoD commanders, managers, and personnel whose duties include
obligating and/or managing funds must be aware of this type of violation and causal factors. This
violation often occurs when obligations from an obligation document are not timely or accurately
recorded thus causing the official accounting records to reflect an inflated (and incorrect)
availability of funds. Since personnel use those records to certify funds are available for other
obligations, a violation can easily occur because the records do not reflect the correct amount of
funds available for obligation. This violation also occurs when obligations are charged against a
current account that would otherwise be properly chargeable (except as to the amount) to an
expired account, but sufficient funds do not exist in the applicable expired account to fund the
obligation.
4.2.1.2. This type of potential violation is commonly discovered when an

unmatched disbursement is recorded in the accounting system when correcting inaccurately
recorded obligations, or when a reprogramming action requests additional funds for an expired
account. To help prevent this type of violation, DoD funds managers (for example, Comptrollers)
must require that all organizations that incur obligations and record obligations maintain strict and
absolute positive controls over-obligating documents (or their electronic equivalents) to ensure
that none are lost or misplaced and all transactions are recorded accurately and in a timely manner.
Such controls include batch totals of transactions and dollar amounts incurred, transmitted,
received, processed, and recorded.
2-9
* May 2023
4.2.1.3. The establishment of a funds control system is also essential to ensure that
all obligations are reconciled properly against available funds and authorized before they are
incurred. This process must include reserving available funds for authorized obligations that are
not immediately recorded as an obligation. The reservation must be made by means of a formal
commitment or an informal reservation record that contains an estimated amount. The
documented estimated reservation must closely approximate the obligation when incurred and
recorded. Also, when recording estimated obligations, it is important to record the initial
obligation based on the most current data available and adjust the estimated obligations as
conditions change to avoid making an obligation or expenditure that exceeds the amount available
in an appropriation or fund.
4.2.2. Exceeding Statutory Limitations on the Use of Operations and Maintenance Funds.
4.2.2.1. Military Construction. To prevent an ADA violation, engineering and

contracting personnel must be advised of the provisions of 10 U.S.C. §§ 2801–2802, and
10 U.S.C. § 2805; and DoD rules and regulations that cover minor construction projects.
Engineering personnel and those who authorized the construction are frequently identified
responsible for violations involving construction projects exceeding statutory construction
limitations and administrative construction limitations placed in engineering regulations. The
following is a brief summary of some of the provisions of 10 U.S.C. §§ 2801, 2802, and 2805; and
DoD rules and regulations on minor projects.
4.2.2.1.1. Congress establishes by statute, the amount of

Operations and Maintenance (O&M) funds that may be used for a minor construction project.
From time to time, that limit is increased by Congress. If the specified limit is exceeded, Military
Construction funds must be used for the entire project including planning and design. A violation
of 31 U.S.C § 1341(a)(1)(A) may occur when the limitation is exceeded. The limitation applies to
the use of O&M funds for a minor construction project even though there is sufficient obligational
authority available in the O&M account at the time that the project is authorized and approved.
4.2.2.1.2. A military construction project includes all work necessary to

produce a complete and usable facility, or a complete and usable improvement to an existing
facility under provisions of 10 U.S.C. § 2801(b). Incremental construction, which is the planned
acquisition of, or improvement to, a real property facility through a series of minor construction
projects is prohibited. See Volume 3, Chapter 17 for military construction project requirements.
4.2.2.1.3. Engineering and contracting personnel must be familiar with the

statutory limitation, under the provisions of 10 U.S.C. § 2825, on the maintenance and repair funds
that may be used for a family housing unit. That limit may not be exceeded without prior
notification to Congress. When that limit is exceeded for any reason during the completion of a
family housing maintenance and repair project, and the conditions specified in the law for a waiver
of the statutory limitations have not been met, a violation of 31 U.S.C. § 1341(a)(1)(A) may occur.
2-10
* May 2023
4.2.2.1.4. The misclassification of construction costs as alterations by
engineering personnel may result in an ADA violation. A potential violation may occur if the
amount of the misclassification, when added to construction costs (if any), exceeds a statutory
limitation. For example, an engineering project that has a minor construction cost close to the
statutory limit, but which also has related maintenance and repair costs, could cause a violation of
the statutory limit if the maintenance and repair work later is proven to be construction. Likewise,
a maintenance and repair project exceeding the statutory construction limit could be a potential
ADA violation if the maintenance and repair later is determined to be construction.
4.2.2.2. Equipment.
4.2.2.2.1. Congress designates an amount above which acquisitions of

equipment must be funded from a procurement fund (expense versus investment threshold rule).
Using O&M funds to acquire equipment items that exceed the designated threshold amount for the
mandatory use of procurement funds could be a potential ADA violation. For instance, O&M
funds are used to purchase a computer system when Other Procurement funds are required.
Expense versus investment criteria is in Volume 2A, Chapter 1, paragraph 010212 and Volume 2B,
Chapter 18.
4.2.2.2.2. Similar problems also frequently occur when acquiring low

dollar value equipment items that are estimated to cost less than the congressionally designated
amount for procurement funds, but actually cost more than that amount when acquired.
4.2.2.2.3. An ADA violation does not occur automatically in the situations

outlined in subparagraphs 4.2.2.2.1 and 4.2.2.2.2 because the obligation can be moved from the
O&M account to the applicable procurement account. If proper funds were available in the proper
procurement account at the time of the erroneous obligation of O&M funds and funds are available
when the obligation is recorded in the procurement account, including all other known valid
obligations and deobligations, then a potential ADA violation has not occurred. However, if
proper procurement funds were not available at the time of the erroneous obligation or were not
available when the obligation is recorded in the procurement account to cover the obligation in the
procurement account, a potential ADA violation may have occurred.
4.2.2.2.4. DoD decision makers, such as program managers, information

systems managers, and contracting personnel, must be knowledgeable of the expense versus
investment rules to prevent this type of violation. Program managers and information systems,
contracting, and comptroller personnel must be trained on this issue. Such training should help
reduce the incorrect application of the expense versus investment rule and the resulting ADA
violations.
4.2.3. Exceeding a Formal Administrative Subdivision of Funds. If a formal

administrative subdivision of funds level is exceeded, then a potential violation must be reported.
The receipt of additional funds before the end of a reporting period does not mitigate a limitation
violation or eliminate the potential violation reporting requirement as specified in Chapter 3. Also,
failure to record a valid obligation or expenditure as of the date incurred does not avoid the
incurrence of, and the requirement to report, a potential ADA violation if, upon recordation,
2-11
* May 2023
available funds in the appropriation fund or other formal administrative fund subdivision level are
exceeded. For example, the Military Departments historically have experienced problems with
over-obligated Reserve Component (RC) personnel accounts. Funds in these accounts are used to
pay RC personnel for such items as weekend drills, travel, special tours, or other training. RC unit
commanders who control a formal administrative subdivision of funds level are subject to the ADA
and must, in advance of the incurrence and recording of these obligations, budget and reserve
against available funds the amounts estimated for weekend drills and other scheduled training.
4.2.4. Obligating Funds in Advance of Availability.
4.2.4.1. A common scenario is the use of current year funds to procure goods or
services that properly are funded only with a subsequent year appropriation. An ADA violation
occurs when an individual obligates funds before those funds are authorized and appropriated by
Congress. For example, signing a facility or equipment operating lease using one-year authority
funds and agreeing to pay, or obligating the funds, for a two-year lease during the first year would
constitute an obligation in advance of the availability of the funds for the amount associated to the
second year of the lease. Similarly, agreeing to pay or obligating the funds for a two-year
equipment maintenance agreement using one-year authority funds would constitute an ADA
violation related to the amount associated with the second year of the agreement.
4.2.4.2. To help prevent this type of violation, training programs must include
specific focus on the importance of ensuring funds are authorized and available before obligating
the Government to contracts for future fiscal years’ expenses.
4.2.4.3. For guidance on determining whether a violation may be properly

corrected, see subparagraph 1.2.3.
4.2.5. Providing Funds to Servicing Agencies Before or Past the Period of Availability.
4.2.5.1. A common scenario occurs when funds cited on an Economy or

non-Economy Act order do not meet the bona fide need arising or existing in the fiscal year
(or years) for which the appropriation is available for obligation. When an erroneous obligation
is moved to the applicable fiscal year and proper funds were not available at the time of the
erroneous obligation or were not available when the obligation was recorded in the proper fund or
account, a potential ADA violation may have occurred.
4.2.5.2. To prevent this type of ADA violation, DoD personnel with the
responsibility to control the use and type of funds used must be aware of the fiscal limitations of
providing funds to servicing agencies before or past the period of availability. See specific policy
for Economy Act orders in Volume 11A, Chapter 3, section 0304; and non-Economy Act orders
in Volume 11A, Chapter 18, sections 1802 and 1803.
2-12
* May 2023
4.2.6. Retaining Funds Without Authority.
4.2.6.1. This violation often occurs when funds are retained without authority and
are not deposited into the miscellaneous receipts of the U.S. Treasury but instead augments an
appropriation and, as a result, obligations or expenditures exceed the amount appropriated by
Congress.
4.2.6.2. This violation is often discovered when new personnel arrive and raise
concerns over accepting and retaining unauthorized funds. Therefore, it is essential that DoD
decision makers, such as DoD Commanders and Comptrollers, are knowledgeable of this type of
violation and that financial managers be trained on this issue and understand the authority related
to funds under their control to preclude augmenting an appropriation.
2-13
* May 2023
Figure 2-1. Potential Violations
A DESCRIPTION OF POTENTIAL VIOLATION TITLE 31,

VIOLATION UNITED
MAY STATES
OCCUR CODE
WHEN SECTION
Any military 1. Makes or authorizes an obligation or expenditure 1341(a)(1)(A)
member or that exceeds:
DoD a. The available amount of any appropriation or
employee: fund.
b. Any statutory restriction imposed on the use of an 1341(a)(1)(A)
appropriation or fund, such as limits on the use of O&M
funds for unspecified minor construction or for purchase
of investment items.
c. The available amount of any apportionment or 1517(a)(1)
reapportionment.
d. The available amount of any formal 1517(a)(2)
administrative subdivision.
e. Any limitation imposed by an authorized official 1517(a)(2)
of the DoD or a DoD Component that is intended to
restrict obligations of apportioned appropriations or
funds.
2. Involves the Government in any contract or other 1341(a)(1)(B)
obligation for the payment of money for any purpose
before appropriations are made for such purposes, unless
the law authorizes such contract or obligation.
3. Makes or authorizes an obligation or expenditure 1341(a)(1)(A)
against an appropriation account that was closed pursuant
to 31 U.S.C. §§ 1552 or 1555 or the period prescribed in
an appropriations act for making expenditures as
authorized by 31 U.S.C. § 1557.
4. Accepts voluntary service or employs personal 1342
service in excess of that authorized by law except in cases
of emergency involving the safety of human life or the
protection of property.
2-14
* May 2023
Figure 2-1. Potential Violations (continued)
A DESCRIPTION OF POTENTIAL VIOLATION TITLE 31,

VIOLATION UNITED
MAY STATES
OCCUR CODE
WHEN SECTION
Any military 5. Expends a working capital (revolving) fund 1341(a)(1)(A)
member or established under 10 U.S.C. § 2208 in excess of amounts
DoD available in Fund Balance with Treasury whether
employee: apportioned or not.
(Recurring provisions of annual DoD Appropriations
Acts that establish cash balances (Fund Balance with
Treasury) in working capital funds may be maintained
only in such amounts as are necessary at any time for cash
disbursements to be made from such funds. This
provision allows working capital funds to incur liabilities
in excess of available fund balances with Treasury.)
6. Obligates a working capital (revolving) fund 1517(a)(1)
established under 10 U.S.C. § 2208 or a part of the fund,
whether subject to or exempt from apportionment, in
excess of the available amount.
7. Obligates a working capital (revolving) fund 1517(a)(2)
established under 10 U.S.C. § 2208 in excess of the
available amount of budgetary resources.
In Fund 1. Total allotments, or operating budget authorities for 1517(a)(1)
Distribution: O&M type funds exceed the amount available for each
apportionment period.
2. Total suballotments, allocations, or operating 1517(a)(2)
budget authorities, and centrally managed accounts
(CMAs) exceed the amount of the allotment or operating
budget authority for each period.
3. Total allocations or operating budget authorities and 1517(a)(2)
CMAs exceed the amount of the available suballotment.
4. Total suballocations exceed the amount of the 1517(a)(2)
allocation.
2-15
* May 2023
Figure 2-2. Violation Examples
A. GENERAL. Most of the examples described in items B – D are taken from actual
violations that occurred within DoD. However, these violations are fact specific and in
other circumstances a potential violation may or may not be incurred. These examples are
supplied for information only and are not intended to imply that in all similar but not
identical circumstances a violation would have been incurred.
B. TITLE 31, UNITED STATES CODE, SECTION 1341
1. 31 U.S.C. § 1341(a)(1)(A)
a. Obligated O&M funds for site preparation construction costs on a

relocatable building project. The project was incorrectly scoped into multiple
projects and the cumulative costs of the construction exceeded the minor
construction threshold and should have been authorized by Congress and funded
with military construction funds. This unauthorized obligation of O&M funds
instead of military construction funds resulted in a violation.
b. Obligated O&M and Working Capital funds on a single military

construction project. The project amount exceeded the minor construction statutory
limitation and resulted in a violation. The Government Accountability Office takes
the position that a violation of a funding restriction in an authorizing statute (such
as 10 U.S.C. § 2805) results in a violation of the ADA (31 U.S.C. § 1341). The use
of funds to finance the project is not consistent with the authorized purpose of the
appropriation and resulted in an incurable violation of the “purpose statute” (31
U.S.C. § 1301).
Note: Although the circumstances described herein constitute a violation of 10

U.S.C. §§ 2802(a) and 2805(b), the Department of Justice (DOJ) Office of Legal
Counsel (OLC) has concluded that “a violation of a statutory restriction on
spending does not violate the ADA where the restriction is not ‘in an appropriation.’
” See also: DOJ OLC opinion, “Use of Appropriated Funds to Provide Light
Refreshments to Non-Federal Participants at EPA Conferences,” April 5, 2007
(online at: http://www.justice.gov/sites/default/files/olc/opinions/2007/04/31/epa-
light-refreshments13.pdf); and DOJ OLC letter, “Re: Whether the Federal Aviation
Administration’s Finalizing and Implementing of Slot Auction Regulations Would
Violate the Anti-Deficiency Act,” October 7, 2008.
c. Obligated O&M funds rather than Procurement funds for recapitalization of

a system and Procurement funds were not available when the obligation was
recorded which resulted in a violation.
2-16
* May 2023
Figure 2-2. Violation Examples (continued)
d. Failure to promptly record valid obligations in a reserve personnel appropriation

resulted in valid obligations that exceeded the available amount in the appropriation and resulted
in a violation
2. 31 U.S.C. § 1341(a)(1)(B)
a. Obligated O&M funds in advance of the appropriation when a 14 month

severable services contract was awarded that exceeded the 12 month limit set forth in section 10
U.S.C. § 2410a, and resulted in a violation.
b. Obligated O&M funds for two and four year severable equipment leases in
advance of an appropriation which resulted in a violation.
c. Obligated O&M funds for equipment with phased deliveries into

subsequent fiscal years in advance of an appropriation which resulted in a violation.
C. TITLE 31, UNITED STATES CODE, SECTION 1342
Apparently, at the urging of the Chairman, a member of a Federal Commission agreed to

waive his statutory entitlement to $100 per day while involved in Commission business. The year
after the Commission was disbanded, the former member changed his mind and filed a claim for
a portion of the compensation he would have received had it not been for the waiver. Since the
$100 per day was a statutory entitlement, the purported waiver was invalid and the former
commissioner was entitled to be paid. By accepting the waiver and allowing the commissioner to
conduct Commission business without pay, the provision against acceptance of voluntary services
was violated and a violation of the ADA occurred.
D. TITLE 31, UNITED STATES CODE, SECTION 1517
1. Obligated O&M funds in excess of the Continuing Resolution Authority allocation

which resulted in a violation.
2. Obligated O&M funds for information technology equipment in excess of the

investment threshold. When correction was made, Procurement funds were not available at the
suballotment level which resulted in a violation.
2-17
* May 2023
Figure 2-2. Violation Examples (continued)
3. A DoD activity used O&M funds, rather than Other Procurement funds to purchase a
data processing local area network (LAN). Even though the hardware components
and LAN operating system software were purchased separately, the components and
the software together constituted a system with an aggregate cost in excess of the
expense/investment threshold specified by the Congress for the required use of
procurement appropriation funds. A violation occurred because the DoD activity did
not have the required amount of Other Procurement funds at the time of the purchases.
4. A funds holder at a formal administrative subdivision of fund level erroneously

distributed more funds than available at the subdivision level. The activities receiving
the funds incurred obligations and expenditures in excess of amounts available to the
fund holder but below the amount distributed. The funds holder incurred an ADA
violation because the obligations and expenditures exceeded the total amount in the
formal administrative subdivision of funds.
2-18
* May 2023
Figure 2-3. Reference Hyperlinks
Office of Management and Budget (OMB) Circular A-11, “Preparation, Submission, and
Execution of the Budget”
U.S. Government Accountability Office Principles of Federal Appropriations Law (Red Book)
United States Code (U.S.C.) title and section:
U.S.C. Section Title

2 U.S.C. § 681 Disclaimer
2 U.S.C. § 682 Definitions
2 U.S.C. § 683 Rescission of Budget Authority
2 U.S.C. § 684 Proposed Deferrals of Budget Authority
2 U.S.C. § 685 Transmission of Messages; Publication
2 U.S.C. § 686 Reports by Comptroller General
2 U.S.C. § 687 Suits by Comptroller General
2 U.S.C. § 688 Procedure in House of Representatives and Senate
5 U.S.C. § 1304 Loyalty Investigations; Reports; Revolving Fund
10 U.S.C. § 2201 Apportionment of Funds; Authority for Exemption; Excepted

Expenses
10 U.S.C. § 2204 Obligation of Appropriations
10 U.S.C. § 2208 Working-Capital Funds
10 U.S.C. § 2410a Severable Service Contracts for Periods Crossing Fiscal Years
10 U.S.C. § 2805 Unspecified Minor Construction
10 U.S.C. § 2825 Improvements to Family Housing Units
18 U.S.C. § 4124 Purchase of Prison-Made Products by Federal Departments
2-19
* May 2023
Figure 2-3. Reference Hyperlinks (continued)

31 U.S.C. § 1104 Budget and Appropriations Authority of the President
31 U.S.C. § 1105 Budget Contents and Submission to Congress
31 U.S.C. § 1106 Supplemental Budget Estimates and Changes
31 U.S.C. § 1107 Deficiency and Supplemental Appropriations
31 U.S.C. § 1108 Preparation and Submission of Appropriations Requests to the President
31 U.S.C. § 1112 Fiscal, Budget, and Program Information
31 U.S.C. § 1301 Application
31 U.S.C. § 1321 Trust Funds
31 U.S.C. § 1341 Limitations on Expending and Obligating Amounts
31 U.S.C. § 1342 Limitation on Voluntary Services
31 U.S.C. § 1349 Adverse Personnel Actions
31 U.S.C. § 1350 Criminal Penalty
31 U.S.C. § 1351 Reports on Violations
31 U.S.C. § 1501 Documentary Evidence Requirement for Government Obligations
31 U.S.C. § 1502 Balances Available
31 U.S.C. § 1511 Definition and Application
31 U.S.C. § 1512 Apportionment and Reserves
31 U.S.C. § 1513 Officials Controlling Apportionments
31 U.S.C. § 1514 Administrative Division of Apportionments
31 U.S.C. § 1515 Authorized Apportionments Necessitating Deficiency or Supplemental

Appropriations
31 U.S.C. § 1516 Exemptions
2-20
* May 2023
Figure 2-3. Reference Hyperlinks (continued)

31 U.S.C. § 1517 Prohibited Obligations and Expenditures
31 U.S.C. § 1518 Adverse Personnel Actions
31 U.S.C. § 1519 Criminal Penalty
31 U.S.C. § 1531 Transfer of Functions and Activities
31 U.S.C. § 1552 Procedure for Appropriation Accounts Available for Definite Periods
31 U.S.C. § 1553 Availability for Appropriation Accounts to Pay Obligations
31 U.S.C. § 1555 Closing of Appropriation Accounts Available for Indefinite Periods
31 U.S.C. § 1557 Authority for Exemptions in Appropriation Laws
31 U.S.C. § 3302 Custodians of Money
31 U.S.C. § 3324 Advances
31 U.S.C. § 3512 Executive Agency Accounting and Other Financial Management

Reports and Plans
31 U.S.C. § 3524 Auditing Expenditures Approved without Vouchers
33 U.S.C. § 576 Revolving Fund; Establishment; Availability; Reimbursement; Transfer

of Funds; Limitation
41 U.S.C. § 6301 Authorization Requirement
2-21
*December 2024
VOLUME 14, CHAPTER 3: “ANTIDEFICIENCY ACT VIOLATION PROCESS”
Substantive revisions are denoted by an * symbol preceding the section, paragraph, table, or
figure that includes the revision.
Hyperlinks are denoted by bold, italic, blue and underlined font.
The previous version dated April 2019 is archived.

Incorporated references to Chapter 2 for obligations
4.4,
charged to the wrong appropriation or wrong year and for Revision
4.5
obligations incurred in advance of an appropriation.
Administrative updates to include streamlining language
for improved readability in accordance with Department
All Revision
of Defense Financial Management Regulation Revision
Standard Operating Procedures.
3-1
*December 2024
Table of Contents
VOLUME 14, CHAPTER 3: “ANTIDEFICIENCY ACT VIOLATION PROCESS” .................. 1
1.0 GENERAL ..................................................................................................................... 4

1.1 Overview ................................................................................................................. 4
1.2 Purpose .................................................................................................................... 4
1.3 Authoritative Guidance............................................................................................ 4
2.0 REPORTING SUSPECTED VIOLATIONS ................................................................. 4
2.1 Initial Discovery ...................................................................................................... 4
2.2 Initial Report ............................................................................................................ 5
2.3 Evaluation ................................................................................................................ 6
3.0 DOD COMPONENT INVESTIGATION ADMINISTRATION .................................. 6
3.1 Timeframes for Investigation .................................................................................. 6
3.2 Approving Exceptions to Timeframes ..................................................................... 6
3.3 Special Interest Investigations ................................................................................. 7
3.4 Involvement of the OUSD(C).................................................................................. 7
3.5 Investigation Costs .................................................................................................. 7
4.0 PRELIMINARY REVIEWS .......................................................................................... 7
4.1 Purpose .................................................................................................................... 7
4.2 Investigating Officer Appointment .......................................................................... 7
4.3 Conduct of the Investigation.................................................................................... 8
*4.4 Obligations Charged to the Wrong Appropriation or Wrong Year .......................... 9
*4.5 Obligations Incurred in Advance of an Appropriation ............................................ 9
4.6 Review Results ........................................................................................................ 9
4.7 Preliminary Reviews Initiated by the OUSD(C) ..................................................... 9
4.8 Oversight Entities .................................................................................................... 9
4.9 Evaluation .............................................................................................................. 10
5.0 ROLES OF THE DOD INSPECTOR GENERAL ...................................................... 10
6.0 FORMAL INVESTIGATIONS ................................................................................... 10
6.1 Overview ............................................................................................................... 10
6.2 Investigating Officer Appointment ........................................................................ 11
6.3 Conduct of Investigation and Preparation of Formal Report of ADA Violation
Investigation (ROI) ........................................................................................................... 11
6.4 Reinvestigation ...................................................................................................... 15
6.5 Formal Investigation Results ................................................................................. 16
7.0 DOD COMPONENT ROI ........................................................................................... 16
7.1 Preparation of the ROI........................................................................................... 16
7.2 Legal Coordination ................................................................................................ 17
8.0 REQUEST FOR ADVANCE DECISION ................................................................... 17
8.1 Advance Decision Package Submission ................................................................ 17
3-2
*December 2024
Table of Contents (Continued)
8.2 OUSD(C) DCFO Review ...................................................................................... 18

9.1 Disciplinary Actions .............................................................................................. 18
9.2 Imposing Discipline............................................................................................... 19
9.3 Documentation of Discipline Imposed .................................................................. 19
10.0 SUBMISSION OF THE FINAL REPORT .................................................................. 20
10.1 Submission to DCFO ............................................................................................. 20
10.2 ROI Due Date ........................................................................................................ 20
11.0 NOTIFICATION TO EXTERNAL AUTHORITIES .................................................. 20
11.1 Letter Preparation .................................................................................................. 20
11.2 Letter Content/Submission .................................................................................... 20
Figure 3-1. Checklist for Formal Investigations ................................................................... 21
Figure 3-2. Template for Initial Reports ............................................................................... 23
Figure 3-3. Template for Appointment Orders ..................................................................... 24
Figure 3-4. Template for Preliminary Review ...................................................................... 25
Figure 3-5. Template for Formal Report ............................................................................... 27
Figure 3-6. Template for Discipline Confirmation ............................................................... 31
3-3
*December 2024
CHAPTER 3
ANTIDEFICIENCY ACT VIOLATION PROCESS
1.0 GENERAL
1.1 Overview
This chapter describes the Antideficiency Act (ADA) violation process from initial
discovery to formal investigation and final report. If an activity suspects an ADA violation and
validates those concerns with an internal review, the activity must conduct an in-depth
investigation. The structured investigation process consists of two phases, a preliminary review
and, if required, a formal investigation. Generally, the preliminary review must establish that a
potential ADA violation occurred before a formal investigation begins. The preliminary review
gathers facts and establishes by adequate evidence whether an uncorrectable deficiency has
occurred. The formal investigation determines the event(s) that “more likely than not” caused the
potential violation, the responsible individual(s), and action(s) taken to ensure that a similar
violation does not reoccur. To ensure efficiency, it is important that those involved in the
investigation of, and reporting on, ADA violations are adequately trained and qualified.
Investigators are provided specific authority to collect and evaluate relevant information as well
as obtain direct support from subject matter experts and personnel throughout the process.
1.2 Purpose
This chapter addresses potential and actual violations of statutes discussed in Chapters 1
and 2. The policy directs conducting initial reviews, structuring investigations, and other
requirements to report an ADA violation properly. It also establishes training requirements for
individuals assigned to investigate potential and actual ADA violations. Additionally, this chapter
provides organizational corrective and disciplinary actions for civilian and military employees.
This chapter implements provisions of Title 31, United States Code (U.S.C.), especially
sections 1511 – 1517 and 1519 (31 U.S.C. §§ 1511 – 1517 and 31 U.S.C. § 1519) on apportionment
and allotment, and §§ 1341 and 1348 on limitations on obligations and expenditures, § on
voluntary services and personal services, and §§ 1349 and 1518 on disciplinary actions. This
chapter also implements reporting requirements as specified in 31 U.S.C. §§ 1351 and 1517(b),
and the Office of Management and Budget (OMB) Circular No. A-11, Exhibit 145A.
2.0 REPORTING SUSPECTED VIOLATIONS
2.1 Initial Discovery
A review is initiated if there is adequate information to suspect a potential ADA violation

may have occurred. An event marks the date of discovery, such as the release of internal review
findings suggesting an ADA violation may have occurred, or receipt of a status of funds report
3-4
*December 2024
showing irregularities. The activity may conduct an inquiry to confirm that the information is
accurate, complete, and sufficient suggesting that an ADA violation occurred.
2.2 Initial Report
2.2.1. Fund holders must ensure their funds are properly executed in accordance with
applicable laws and regulations. Consequently, fund holders must report all suspected violations
of the ADA. The professionals administering the funds, other than the fund holders, must also
alert proper officials to suspected violations.
2.2.2. Within two weeks of discovering a potential ADA violation, the activity holding the
allegedly misused funds conducts an initial review and prepares an initial report. The review aids
in preparing the initial report. It determines whether a suspected violation may have occurred –
even when the suspected violation is curable. Where the activity identifies a potential cure, note
the cure in the report. However, do not cure a potential ADA without concurrence from the
authorities identified in 2.2.3.
2.2.3. The activity/command channels must submit initial reports to the applicable Office
of the Assistant Secretary of the Military Department for Financial Management and Comptroller,
Combatant Commands, or the Senior Financial Manager for other Department of Defense (DoD)
Agencies and Field Activities (referred herein as DoD Component).
2.2.4. The initial report does not determine responsibility for causing the potential ADA;
it merely notifies leadership that a suspected violation may have occurred. The initial report
template is located at Figure 3-2. If the following information is available and pertinent to the
potential ADA at issue, the report must contain the following:
2.2.4.1. Accounting classification of funds allegedly misspent;
2.2.4.2. Name and location of the activity where the alleged violation occurred;
2.2.4.3. Name and location of the activity issuing the fund authorization;
2.2.4.4. Amount of the alleged violation;
2.2.4.5. Nature of the alleged violation;
2.2.4.6. Date the alleged violation occurred, and date discovered;
2.2.4.7. Means of discovery; and
2.2.4.8. Description of the facts and circumstances of the case.
2.2.5. Initial reports addressing potential voluntary services ADA violations must include
all items listed in subparagraph 2.2.4 (except subparagraphs 2.2.4.1 and 2.2.4.3).
3-5
*December 2024
2.3 Evaluation
The DoD Component must evaluate the initial report for validity and completeness. If this
evaluation determines a suspected violation may have occurred, the DoD Component must assign
a case number for tracking purposes and direct the initiation of a preliminary review. If the DoD
Component determines that the suspected violation is curable, the impacted activity/command
must provide all the necessary correcting information and documentation to the DoD Component,
correct the error, and implement appropriate internal controls to prevent a recurrence of similar
violations. There are no additional ADA violation requirements.
3.0 DOD COMPONENT INVESTIGATION ADMINISTRATION
3.1 Timeframes for Investigation
3.1.1. Complete the preliminary review within four months from the date it was directed
by the DoD Component.
3.1.2. Complete the formal investigation within nine months from the date it was directed
by the DoD Component.
3.1.3. The Office of the General Counsel (OGC) (Fiscal) completes the advance decision
legal review within three months from the date the draft formal investigation report is submitted
to the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)), Deputy Chief Financial
Officer (DCFO) requesting an advanced decision.
3.1.4. The DoD Component must consider appropriate disciplinary action and document
any disciplinary action taken. The DoD Component completes a final summary report within two
months from the Office of the Secretary of Defense (OSD) OGC (Fiscal) receipt of an advance
decision concurring with the formal investigation report. However, DoD Components may request
additional time from the DCFO to complete disciplinary actions, if required.
3.1.5. The DCFO completes and submits the letters required by OMB Circular No. A-11,
Exhibit 145A within one month after receiving the final investigation report from the DoD
Component. Complete the total process for investigating and reporting potential ADA violations
within 15 months from the start of the formal investigation. The preliminary review is not part of
the 15 months timeline.
3.1.6. All appointing officials must stipulate a due date for the ADA violation investigation
report in the investigating officer appointment memorandum. The due date must conform to the
timeframes stipulated in paragraphs 3.1.1 through 3.1.5 regardless of the scope or amount of the
potential violation.
3.2 Approving Exceptions to Timeframes
The DCFO may approve an exception to the timeframes on a case-by-case basis. Upon
request, this responsibility may be delegated to the DoD Components. This responsibility may not
3-6
*December 2024
be redelegated. The DoD Components must provide sufficient justification for the extension. The
DCFO notifies the DoD Components of any extension that is approved.
3.3 Special Interest Investigations
Special interest investigations include potential violations that are the subject of a news
release; requested by the Secretary of Defense, Deputy Secretary of Defense, or the USD(C); or
involve a high-level DoD official. When necessary, special interest investigations may deviate
from the timeframes stipulated in paragraphs 3.1.1 through 3.1.5; however, the DoD Components
must notify the DCFO when such deviations are necessary. If the DCFO agrees, the timeframes
may be extended.
3.4 Involvement of the OUSD(C)
The OUSD(C) may supervise the progress of an investigation when the nature of the
violation or the implication of individuals in the violation warrants such involvement. Such
supervision may include requirements for oral and written progress reports and may require a team
of investigating officers (IOs) and compressed timeframes.
3.5 Investigation Costs
When investigating outside the major activity/command to which the IO is assigned,

identify, and accumulate incidental costs (e.g., temporary duty, local travel). In accordance with
Volume 11A and Volume 11B, the activity/command under investigation must reimburse costs.
4.0 PRELIMINARY REVIEWS
4.1 Purpose
4.1.1. The preliminary review gathers facts adequately supporting the conclusion that an
ADA reportable violation has occurred. It does not identify responsible officials or recommend
corrective actions to prevent similar violations.
* 4.1.2. The DoD Component must assign the responsibility for conducting the preliminary
review to the activity where funds were potentially misused.
4.2 Investigating Officer Appointment
4.2.1. The DoD Component official must appoint the IO. The appointing official is at the
DoD Component level unless the Component delegates this authority to a senior Commander or
director of the organization responsible for conducting the investigation. The official appoints a
qualified IO assisted by an expert review team, if necessary. The official issues an appointment
letter within two weeks after the DoD Component’s evaluation of the initial report concluding that
a potential reportable violation has occurred. An appointment orders template is located in
Figure 3-3.
3-7
*December 2024
4.2.2. The appointing official certifies that the IO has been trained in fiscal law or
appropriations law within the last three years and can conduct a complete, impartial, and unbiased
review. Each DoD Component ensures that its ADA investigators are properly trained and that
the training is current and documented.
4.2.3. Select the IO from an organization external to the activity/command being reviewed.
4.2.4. The IO does not need to be senior in grade to the persons potentially under
investigation.
4.2.5. The IO must be competent and capable of gathering evidence, establishing facts,
documenting findings and recommendations, and preparing investigation reports of violation.
4.2.6. The IO must manage time and meet the investigation timeframes established. The
appointing official may prescribe additional training as required.
4.2.7. Appointing officials must ensure the investigation receives the appropriate level of
activity/command emphasis and the IO has adequate time and resources to conduct a thorough
investigation.
4.2.8. The appointment orders must certify that investigators are free of personal, external,
and organizational impairments. Retain the document(s) in the ADA case file.
4.2.9. Submit the appointment orders to the DoD Component. The appointment orders are
part of the case files for the investigation.
4.3 Conduct of the Investigation
4.3.1. Checklists. Figure 3-4 contains a template for the preparation of the preliminary
review report.
4.3.2. The investigator gathers facts, establishes a narrative of events, and determines what
should have happened before the preliminary review is concluded. The investigator may review
funding documents, contracts, and other key documents, as well as interview key witnesses during
the investigation.
4.3.3. The investigator must check for accounting errors such as duplications or other
errors in recording the applicable obligation and/or expenditure; obligations and/or expenditures
charged to invalid and/or improper fund accounts; and inaccurate fund status at the time the
applicable transaction occurred. If the preliminary review determines that an accounting error
occurred, the investigator must coordinate the appropriate accounting correction.
4.3.4. When an IO determines that a reportable violation can be cured, the fund holder
must attempt to correct the accounts. Complete corrections with the concurrence of the DoD
Component, and only after the DoD Component receives appropriate supporting documentation.
3-8
*December 2024
*4.4 Obligations Charged to the Wrong Appropriation or Wrong Year
For information on obligations charged to the wrong appropriation or wrong year, see
Chapter 2, subparagraph 1.2.3.1.
*4.5 Obligations Incurred in Advance of an Appropriation
For information on obligations incurred in advance of an appropriation, see Chapter 2,

subparagraph 1.2.3.2.
4.6 Review Results
The IO documents the findings of the preliminary report and accompanies the report with
a legal review. Forward this report and legal review for approval to the applicable DoD
Component and coordinate with the applicable DoD Component’s General Counsel. If the DoD
Component involved determines that there is no violation, then the preliminary report completes
the required ADA violation investigation.
4.7 Preliminary Reviews Initiated by the OUSD(C)
When an audit report informs or the OUSD(C) otherwise learns of a potential violation,
the OUSD(C) may direct the DoD Component to initiate a preliminary review of the circumstances
surrounding the potential violation. The date the OUSD(C) directs the DoD Component is the
discovery date for reporting purposes and the DoD Component must follow procedures in sections
2.0, and 3.0.
4.8 Oversight Entities
4.8.1. In some cases, the Government Accountability Office, DoD Office of Inspector
General (DoD IG), a military department audit agency, or other organizations external to a DoD
Component report that a potential violation may have occurred and recommends a preliminary
review be conducted. The DoD Component must review the finding(s) and recommendation(s)
provided in the report. The DoD Component may have to conduct an informed inquiry.
4.8.2. If the DoD Component agrees that a potential violation may have occurred and a
preliminary review is warranted, then the starting date for the investigation is the discovery date
for reporting purposes. The DoD Component must follow procedures in section 4.0 and must
supply the preliminary review status as requested by the applicable external organization.
4.8.3. If the DoD Component disagrees that a potential violation has occurred and believes
a preliminary review is not warranted, the DoD Component must provide applicable written
comments to the report outlining the disagreement consistent with policy prescribed in
DoD Instruction 7650.03 “Follow-up on General Accountability Office, DoD IG, and Internal
Audit Reports.”
3-9
*December 2024
4.8.4. If the DoD Component and the oversight activity disagree as to whether a
preliminary review is warranted, the DoD Component may request assistance from the DCFO.
4.9 Evaluation
The DCFO may routinely examine open or closed preliminary review cases.
5.0 ROLES OF THE DOD INSPECTOR GENERAL
5.0.1. The Inspector General Act of 1978 (P.L. 95-452), as amended, gives the DoD IG
the authority to conduct investigations of violations of the ADA.
5.0.2. The DoD IG reserves the right to initiate investigations of potential ADA violations,
depending upon the type, amount, or significance of the violation.
5.0.3. The DoD IG may elect to conduct investigations not requested by the OUSD(C) or
another DoD official.
5.0.4. When the DoD IG conducts such investigations, the resultant report must constitute
the official DoD report on the matter; no other DoD Component must conduct parallel or
supplemental investigations unless directed to do so by the Secretary of Defense, Deputy Secretary
of Defense, or OUSD(C).
6.0 FORMAL INVESTIGATIONS
6.1 Overview
6.1.1. Once a preliminary review concludes that a reportable and incurable violation of the
ADA has occurred, a formal investigation must be opened. Report the violation to the DCFO
within 2 weeks of the determination. The DCFO assigns the DoD Component a unique tracking
number and due date.
6.1.2. The formal investigation determines the event that caused the potential violation,
the responsible individual(s), and action(s) taken to ensure that a similar violation does not occur
in the future. Additional evidence discovery, re-interviewing witness or interviewing new witness,
re-examining documents, or discovery of new documents may be required.
6.1.3. During a formal investigation, the DCFO may request periodic status reports.
6.1.4. The DoD Component generally assigns the investigation to the activity that
performed the preliminary review. The DoD Component may request another organization to
conduct the investigation to eliminate potential conflicts of interest, or to leverage the expertise of
another activity/command.
3-10
*December 2024
6.2 Investigating Officer Appointment
6.2.1. The DoD Component official must appoint IOs. The appointing official is at the
DoD Component level unless the Component delegates this authority to a senior
activity/commander or director of the organization assigned responsibility for conducting the
investigation. A qualified IO may be assisted by a review team with expertise in the areas being
investigated, if necessary. A template for appointment orders is located in Figure 3-3. The formal
investigation may be conducted by the same IO who conducted the preliminary review.
6.2.2. The appointing official certifies that the IO/review team lead has been trained in
fiscal law or appropriations law within the last three years and can conduct a complete, impartial,
and unbiased review. Each DoD Component must ensure that its ADA investigators are properly
trained and that the training is current and documented.
6.2.3. The IO must be selected from an organization external to the activity/command

being reviewed.
6.2.4. The IO does not need to be senior in grade to the persons potentially under
investigation.
6.2.5. IOs must be competent and capable of interviewing witnesses, gathering evidence,
establishing facts, documenting findings and recommendations, and preparing violation reports.
They must also manage time and meet established investigation completion timeframes. The
appointing official may prescribe additional training as required.
6.2.6. Appointing officials must ensure that the investigation receives the appropriate level
of activity/command emphasis and gives the IO adequate time and resources to conduct a thorough
investigation.
6.2.7. The appointment orders certify that investigators and/or review team leads are free
of personal, external, and organizational impairments. Retain the document(s) in the ADA case
file.
6.3 Conduct of Investigation and Preparation of Formal Report of ADA Violation

Investigation (ROI)
6.3.1. Checklists
6.3.1.1. Figure 3-1 contains a checklist for use in the conduct of the Formal
Investigation.
6.3.1.2. Figure 3-5 contains a template for the preparation of the formal report.
3-11
*December 2024
6.3.2. Examination of Physical Evidence
During the investigation, the IO expands upon the findings established in the
preliminary investigation or makes new findings. The IO may revise dollar amounts based on
witness statements, or, as more information is obtained, facts and conclusions also may be revised.
The formal investigation finds the root cause(s) for the violation and identifies the individual(s)
making or authorizing the improper obligations or expenditures, and the corrective action(s)
implemented to reduce the risk of similar violations in the future.
6.3.3. Identifying Circumstances and Assigning Responsibility
6.3.3.1. Fully investigate all relevant aspects of the case, including all individuals
and records connected with the event. Interview key personnel involved in a violation. If an
employee to be interviewed is a member of a bargaining unit, comply with appropriate statutory
and collective bargaining agreement protections for such employee.
6.3.3.2. Examine and document key event facts leading to the potential violation
in the report and address any conflicts. If a series of events at several levels led to the violation,
then the report clearly must identify what happened at each level and how the events contributed
to the violation.
6.3.3.3. Where the subject matter of the potential violation is beyond the expertise
of the IO, a subject matter expert must evaluate the evidence along with statements from personnel
interviewed and provide an opinion on whether the key facts are correct and the conclusions
reasonable. For example, when a potential violation involves the question of whether a military
construction project results in a complete and usable facility, a civil engineer must analyze the
facts and provide an opinion.
6.3.3.4. The IO must find facts supporting all conclusions reached in the
investigation. All fact findings leading to a conclusion of an ADA violation must be supported by
a preponderance of the evidence. A preponderance of the evidence is created when the evidence
collected makes the existence of a fact more likely than not. If the IO cannot establish a fact by
the preponderance of the evidence, that fact may not be used to support a conclusion that an ADA
violation occurred or that an individual is a responsible official.
6.3.3.5. Where the IO concludes that a reportable ADA violation occurred, the IO
must find facts and conclude that the responsible official(s), the individual or individuals made or
authorized the improper obligations or expenditures pursuant to 31 U.S.C., §§ 1341(a) and/or
1517(a). Determine facts supporting an individual’s responsibility for the violation by a
preponderance of the evidence. A conclusion that an individual is a responsible official does not,
by itself, result in pecuniary liability of an accountable official under 10 U.S.C., § 2773a.
6.3.3.6. Any report that concludes an ADA violation occurred must identify one or more
responsible officials. A conclusion that no individual was responsible for the violation is not
acceptable.
3-12
*December 2024
6.3.3.7. The same individuals may be responsible for more than one violation
under the auspices of a single investigation. In these cases, the report must specifically clarify
how they contributed to each discrete violation.
6.3.3.8. The responsible official is usually the highest-ranking individual in the

decision-making process with actual or constructive knowledge of the actions taken and awareness
of the possible risks.
6.3.3.9. To establish responsibility, the IO must conclude, based on findings of fact,

that the act or omission was the proximate cause of the violation. An act or omission is the
proximate cause when it sets into motion a chain of events that directly leads to the violation, and
the violation would not have happened but for the act or omission. A violation may have more
than one proximate cause, and therefore more than one responsible official.
6.3.3.10. In some cases, the IO establishes that an individual had a duty to take an
action that may have prevented the ADA violation, knew or should have known of that duty, and
failed to take that action. In such cases, collateral evidence, such as Position Descriptions, may be
used as evidence of the individual's scope of duties. If used, such evidence must be included in
the ROI.
6.3.3.11. Activity/commanding officers, directors, budget officers, or fiscal

officers may be named because of their overall responsibility or position, or the fact that they are
designated as the holder of a subdivision of funds if they failed to properly exercise their
responsibilities. Responsible officials may also include Information Technology specialists,
program managers, facility engineers, and acquisition personnel.
6.3.3.12. The ROI must clearly identify the involvement of each individual and the
acts or omissions that were the proximate cause(s) of the violation. The following questions must
be considered:
6.3.3.12.1. Did the violation occur because an individual carelessly

disregarded instruction?
6.3.3.12.2. Did the violation occur because an individual was inadequately

trained or lacked knowledge to properly perform their job? If so, was the individual or a supervisor
at fault?
6.3.3.12.3. Did the violation occur because of an error or mistake in

judgment by an individual or a supervisor?
6.3.3.12.4. Did the violation occur because of lack of adequate procedures

and controls? If so, who was at fault?
6.3.3.12.5. Did the violation occur because of other reasons? If so, who
was at fault?
6.3.3.13. If at any time during an investigation the IO believes there may be a

criminal issue(s) involved, then the investigation must be stopped immediately. The IO must
3-13
*December 2024
consult with legal counsel to determine if the issue must be referred to appropriate criminal
investigators for resolution. The IO must notify the DoD Component of the outcome of this
consultation.
6.3.3.13.1. If at any time the IO suspects that the ADA violation was
knowing and willful, then the IO must submit all available information to the DoD Component,
which considers the case, in conjunction with the applicable Office of the General Counsel, for
submission through DoD channels to the Department of Justice pursuant to 31 U.S.C., §§ 1350 or
1519, as applicable.
6.3.3.13.2. The case closes to avoid duplication of effort or interference

with a criminal investigation. If appropriate, a new formal investigation opens at the conclusion
of the criminal investigation.
6.3.4. Rebuttal Statements
6.3.4.1. Individuals found potentially responsible for the violation are provided a
draft ROI detailing the facts and circumstances leading to the determination of their responsibility
and given two weeks to issue a rebuttal statement.
6.3.4.2. The IO grants the individuals named potentially responsible this

opportunity even if they no longer work where the violation occurred or have retired or separated
from the DoD.
6.3.4.3. The ROI documents the steps taken to notify the proposed responsible
officials and provide them an opportunity to submit a rebuttal statement. Certified mail and/or
email with tracking may be used to verify a good faith attempt was made to deliver the draft report
to the proposed responsible official.
6.3.4.4. Where proposed responsible officials may have separated and left no valid
forwarding address, make a reasonable attempt to contact them. The report must be annotated
accordingly. Summarize attempts to contact the proposed responsible official in the report.
6.3.4.5. Include the declination statement as their response if the proposed

responsible official declines to give a statement in writing.
6.3.4.6. Note if they refuse to receive the report or submit a statement of any kind
in the report. Summarize attempts to solicit a response in the report.
6.3.4.7. Support any oral statements with a memorandum for record.
6.3.4.8. The proposed responsible officials must acknowledge that they read the
draft ADA report and understand that the draft ROI names them as being responsible for the
violation. They may introduce any additional information they believe to be pertinent to the
violation case.
6.3.4.9. The IO must evaluate the rebuttal statements of the proposed responsible
officials to determine if they clarify certain facts, provide mitigating information that might alter
the draft’s conclusions, or provide additional leads that require follow up. If rebuttal statements
3-14
*December 2024
result in material changes to the draft ROI, the responsible official must have an opportunity to
review the report again.
6.3.4.10. The final ROI includes the rationale for naming the individual as a
responsible official, a synopsis of the rebuttal statements, and the IO’s assessment. The IO must
ensure the report is clearly written and the rationale for assigning responsibility to an individual is
fully justified.
6.3.4.11. Summarize the salient points of the rebuttals in the ROI. Verbatim
statements must be submitted as an exhibit. The IO assesses the accuracy of the rebuttal
statements, following up on new leads, addressing questions regarding the responsibility of other
personnel not named, and any other issues introduced by the rebuttal statements.
6.3.5. Corrective Actions
6.3.5.1. The ROI must state what actions were taken to request the proper funding.
A report stating funds are requested is not sufficient. The report must state the year, type of funds,
and the amount used to make the correction. As an example, if Operation and Maintenance (O&M)
funds were improperly used for a minor construction project costing more than the limitation for
minor construction, funds must be obligated from the Military Construction appropriation and the
O&M appropriation restored to the proper balance.
6.3.5.2. When the IO determines the causes and the individuals responsible for the
violation, officials of the DoD Component or the activity holding the funds that were misused,
must develop lessons learned and implement internal control enhancements necessary to reduce
risks for future similar nature violations. Those specific actions must be included in the formal
report.
6.3.5.3. Corrective actions must be concrete actions that have been implemented,
or that are in the process of being implemented.
6.3.5.4. Corrective actions must address the act or omission by the responsible
official(s) that led to the violation.
6.3.5.5. Investigations resulting in no reportable violation are nonetheless

permitted to recommend corrective actions, as appropriate, to address any deficiencies or practices
documented during the investigation.
6.4 Reinvestigation
If the DCFO requests a reinvestigation, then after the reinvestigation is completed or other
requested action has been taken, the applicable DoD Component must submit the revised report to
the DCFO according to applicable procedures in paragraph 6.3. The DoD Component must submit
the revised ROI within two weeks following completion of the reinvestigation or other requested
action.
3-15
*December 2024
6.5 Formal Investigation Results
6.5.1. The IO must ensure the ROI is clearly written and that each fact and conclusion is
supported by a preponderance of the evidence.
6.5.2. The DoD Component must carefully review the ROI and all enclosures.
6.5.3. The complete report must include:
6.5.3.1. Legal review;
6.5.3.2. Witness statements;
6.5.3.3. Responsible official notification;
6.5.3.4. Responsible official rebuttal or declination statement/proof of

delivery/statement from IO regarding inability to contact;
6.5.3.5. Evaluation of responsible official statements;
6.5.3.6. Ongoing/completed corrective actions;
6.5.3.7. For ADAs susceptible to accounting adjustments, fund certifications

supporting conclusions that the ADA is/is not correctable; and
6.5.3.8. SME functional reviews decisions that drove fund determinations,

especially with respect to Military Construction, information technology procurements, and
covered Defense Business Systems.
6.5.4. An incomplete ROI must be returned to the activity/command for rework. A firm
suspense must be given to the activity/command to resubmit a legally supportable report.
7.0 DOD COMPONENT ROI
7.1 Preparation of the ROI
7.1.1. The DoD Component ROI must follow the same general format as described in
Figure 3-5. However, it is generally a stand-alone product without enclosures or attachments.
Remove extraneous information not supporting conclusions from the report. The DoD Component
must keep these records and provide them on request.
7.1.2. Remove or clarify confusing information. Verify key dates mentioned in the report.
Numbers in tables, graphs, and text must be accurate, consistent, and easy to follow. Unnecessary
tables and photographs may be removed.
3-16
*December 2024
7.1.3. Personally Identifiable Information must be redacted and superfluous argument(s)
not supporting the findings must be removed. Witness names must be replaced with position titles
where practicable, to avoid potential Personally Identifiable Information concerns.
7.1.4. The ROI must be concise and avoid unnecessary historical background or references
to external documents. Highlight salient points and address gaps in the narrative, utilizing extant
supporting documentation.
7.2 Legal Coordination
7.2.1. Prepare the DoD Component ROI in close coordination with counsel and verify all
information in the IO’s report and compare it to information in the exhibits. When in doubt, staff
the changes with the activity/command to ensure there are no material misstatements of fact and
to ensure any factual gaps in the record are closed.
7.2.2. When the violation is incurable, the type of ADA violation is ultimately 31 U.S.C.
§1341 (exceeding an appropriation or in advance of an appropriation), 31 U.S.C. §1517 (exceeding
apportionment or formal subdivision) or 31 U.S.C. § 1342 (accepting voluntary services for the
United States, or employing personal services not authorized by law).
7.2.3. Remove proposed responsible officials if facts do not support responsibility and
legal concurs. Identify additional responsible individuals and coordinate adding them to the report
with the IO. Proposed responsible officials are generally the highest-ranking individual in the
decision-making process with actual or constructive knowledge of the actions taken.
7.2.4. If the formal investigation was materially incomplete, or the facts do not support the
conclusions, return the ROI to the activity/command for revision and/or reinvestigation. Give the
activity/command a firm suspense to resubmit a legally supportable ROI.
7.2.5. Coordinate with the appropriate stakeholders and annotate the ROI accordingly if
the ADA violation involves the funds or personnel of another DoD Component.
7.2.6. Prepare an ROI if the results of a formal investigation led to a determination by the
DoD Component that there was no violation. The ROI must contain appropriate justification that
supports a revised finding that no violation occurred.
8.0 REQUEST FOR ADVANCE DECISION
8.1 Advance Decision Package Submission
8.1.1. Submit the ROI, to include the individual(s) responsible for the potential violation,
to the DCFO with a copy to the DoD Office of the Deputy General Counsel (Fiscal) (OGC (Fiscal))
requesting an Advance Decision for a determination of whether the case is or is not an ADA
violation.
3-17
*December 2024
8.1.2. Advance Decision is the pre-decisional OGC (Fiscal) review of the DoD
Component ROI and determination that evidence substantiates the ADA violation and the naming
of responsible officials. The Advance Decision examines the role of the proposed responsible
officials and determines whether they may be legally held accountable in accordance with
31 U.S.C. §§1341(a), 1517, and 1342.
8.1.2.1. If the OGC (Fiscal) determines that no violation is substantiated, then the
DoD Component is notified that no further action is required, and the investigation is closed.
8.1.2.2. If the OGC (Fiscal) concurs that the proposed responsible officials are
correctly identified and the violation is substantiated by a preponderance of the evidence, then the
DoD Component is notified and informed discipline against one or more individuals named in the
report may proceed.
8.2 OUSD(C) DCFO Review
The DCFO must review each ADA violation report for completeness, clarity, and
compliance with reporting requirements. If the report is determined incomplete by DCFO or OGC
(Fiscal), then the ROI must be returned to the applicable DoD Component. The DoD Component
must provide additional documentation, modify the report, or accomplish other actions as
requested within the period specified by the DCFO.
9.0 DISCIPLINARY ACTION
9.1 Disciplinary Actions
9.1.1. Following OGC (Fiscal) concurrence and receipt of an advance decision from the
OUSD(C), the DoD Component sends a tasking memorandum from the DoD Component to the
appropriate organization or individual for potential administration of adverse action, as deemed
warranted, along with a copy of the report.
9.1.2. The individual imposing discipline must be independent and free of external
influence.
9.1.3. The disciplinary officer(s) must follow the appropriate disciplinary procedures
applicable to the military member or civilian employee who has been determined in the ADA
investigative process to be a responsible individual. The disciplinary officer consults with the staff
judge advocate or servicing legal office, as well as the civilian personnel office (in the case of a
civilian employee).
9.1.4. The IO is prohibited from also being appointed as the disciplinary officer. The IO
does not have a role in recommending or determining discipline.
3-18
*December 2024
9.2 Imposing Discipline
9.2.1. Administrative Penalties
9.2.1.1. Document disciplinary action taken in the individual’s personnel file in

accordance with established policies.
9.2.1.2. Administrative discipline for a civilian employee may include but is not
limited to, written/oral counseling, written/oral admonishment or reprimand, reduction in grade,
suspension from duty without pay, or removal from office.
9.2.1.3. Military personnel may be subject to appropriate administrative discipline

or to action under the Uniform Code of Military Justice (Common Access Card required.)
9.2.1.4. In general, individuals no longer on active duty or employed by a DoD

Component may not be disciplined. However, disciplinary actions may still be imposed against
some retired individuals who have separated from military service if it is warranted by
circumstances and determined to be legally appropriate by counsel. DoD has no authority to
discipline retired or former civilian employees.
9.2.2. Criminal Penalties
9.2.2.1. An officer or employee found responsible for committing a violation

knowingly and willfully may be subject to criminal penalties. The IO consults with legal counsel
to determine if the investigation must be referred to the appropriate criminal investigation
organization for action.
9.2.2.2. 31 U.S.C. § 1350, prescribes that an officer or employee of the United

States Government who knowingly and willfully violates 31 U.S.C., §§ 1341 or 1342 must be
fined not more than $5,000, imprisoned for not more than 2 years, or both. 31 U.S.C. § 1519
discusses the violation of 31 U.S.C., § 1517 and provides the same level of punishment. Criminal
penalties for military personnel may include punishment under Article 15 of the Uniform Code of
Military Justice or trial by Courts-Martial.
* 9.2.2.3. Include in the ROI a statement from the DoD Components to the DCFO
that criminal penalties may be required.
9.3 Documentation of Discipline Imposed
9.3.1. A suggested template for use by the disciplinary officer is located at Figure 3-6. In
documenting discipline, the officer imposing discipline must acknowledge the following:
9.3.1.1. An ADA violation is a violation of federal statute;
9.3.1.2. ADA violations constitute misuse of DoD funds, even if the misuse was
not knowing or willful and the misuse was not ultimately harmful to DoD, or the DoD Component;
3-19
*December 2024
9.3.1.3. DoD is required to report violations of the ADA to the President (via the
Director, OMB), the U.S. Congress, and the Government Accountability Office;
9.3.1.4. An unwilful or unintentional violation alone does not justify a decision not
to administer disciplinary action; and
9.3.1.5. Disciplinary actions must consider the severity of the violation.
9.3.2. Moreover, the officer imposing discipline must provide a written statement
addressing why the disciplinary penalty imposed or not, is commensurate with the severity of the
violation.
10.0 SUBMISSION OF THE FINAL REPORT
10.1 Submission to DCFO
Submit the original or an electronic copy of the final ROI, including a discussion of the
disciplinary actions taken, to the DCFO and include a copy of all pertinent documents referenced
in the body of the report.
10.2 ROI Due Date
The ROI is due to DCFO within 14 months from the date the formal investigation began.
11.0 NOTIFICATION TO EXTERNAL AUTHORITIES
11.1 Letter Preparation
Following receipt of an acceptable final ADA violation report from the applicable DoD
Component, the DCFO prepares the required letters, in accordance with OMB Circular No. A-11,
Exhibit 145A, that report an ADA violation to the President through the Director of the Office of
Management and Budget, the President of the Senate, the Speaker of the House of Representatives,
and the Comptroller General of the United States. The notification letters must be coordinated
with the OGC (Fiscal), Office of the Assistant Secretary of Defense for Legislative Affairs, and
Office of the Deputy Comptroller (Program/Budget).
11.2 Letter Content/Submission
These letters are submitted to the USD(C) for signature and forwarded to the external
authorities identified in paragraph 11.1. The letters and the attached ROI, notify the external
authorities of the violation, its cause(s) and circumstances, the names of the individual(s)
responsible for the violation, and the disciplinary action taken.
3-20
*December 2024
Figure 3-1. Checklist for Formal Investigations
Initial Phase
• Open formal investigation
• Assign case control number for tracking
• Notify DCFO
• Direct activity to appoint an investigating officer
• Provide appointment memo to the DoD Component
• Name support team
• Conduct in-brief session
• Determine the scope of the investigation
• Consult legal counsel
• Review the results of the Preliminary Review
• Familiarize the team with a legal basis for potential violation
• Consult governing statutes, and regulations
• Meet with staff requesting or reporting investigation
• Compile a list of witnesses and questions
• Make travel arrangements
Phase II
• Examine for physical evidence
 Assemble and analyze evidence
 Trace and document transactions and funding documents
• Determine the roles and responsibilities of participants and decision-makers at each echelon
 Develop a chronology of events
 Consult subject matter experts and have them prepare written opinions, as required
 Interview witnesses
 Determine specific acts or decisions leading to violation
 Assign responsibility for making/authorizing violation
• Make an initial assessment of whether anyone appears to have intentionally violated the
ADA with knowing and willful intent. If so:
 Halt investigation and notify appointing official
 Consult with a legal advisor
• Prepare initial draft of findings
Phase III
• Notify proposed responsible officials
 Allow two weeks for submission of rebuttal statements
 Document delivery of report via email tracking or certified mail
 Make a reasonable effort to locate former officials or employees
 Provide draft report
• Analyze rebuttals to determine if they necessitate new interviews and follow up on new leads
if required
 Incorporate salient points from rebuttals in the revised report
3-21
*December 2024
Figure 3-1. Checklist for Formal Investigations (continued)
 Insert assessment on the impact of the rebuttal statements, if any, on conclusions

 Enclose verbatim rebuttals as an enclosure to report
Phase IV
• Engage activities involved to develop corrective actions to reduce the risk of similar violations
recurring:
 Document corrective actions that have already been put in place
 Quantify enhanced controls being implemented
 Obtain a listing of planned corrective actions and milestones
• Incorporate lessons learned and corrective actions in the report
• Finalize Formal Report
• Obtain legal review
Phase V
• Appointing official verifies the following information before endorsement and release:
 Is a copy of the investigating officer’s appointment memorandum included in the report?
 Does the report include the case control number, title of the appropriation/fund involved,
Treasury symbol, amount, date of occurrence, date discovered, a description of how the
potential violation was identified, the name and title of the investigating officer, the dates,
place, and scope of the investigation?
 Is the evidence clearly documented in the report and is the evidence relevant to the case?
 Does the evidence appear to be complete or are significant factors missing that should be
considered? Do there appear to be relevant unanswered questions?
 Are the findings clearly stated, logical, supported by the evidence, and relevant to the case?
 Is each finding that is based upon testimony properly cross-referenced to the testimony?
 Are the findings and conclusions fully substantiated by the evidence and testimony?
 Were all conflicts in testimony addressed in the report?
 Does the report include a clear description of the causes and circumstances surrounding the
violation?
• Transmit report to DoD Component
Final Phase
• DoD Component reviews report
• DoD Component initiates the summary report
• Coordinate with counsel
• DCFO review of report
• Obtain an Advance Decision
• Complete Investigation – Insert discipline imposed into the report.
• Send notification letters to external authorities
• Complete closure
3-22
*December 2024
Figure 3-2. Template for Initial Reports
Activity/command Letterhead
Initial Memorandum
MEMORANDUM FOR (DoD Component)
SUBJECT: Alleged Antideficiency Act Violation (Location and Subject Matter)
1. Reference: DOD Financial Management Regulation, Volume 14, Chapter 3.
2. In accordance with the reference, the initial report of an alleged Antideficiency Act Violation
(ADA) follows:
a. Accounting classification of funds allegedly misused:
b. Name and location of the activity where the alleged violation occurred:
c. Name and location of the activity issuing the fund authorization:
d. Amount of fund authorization or limitation that was allegedly exceeded:
e. Amount and nature of the alleged violation:
f. Date the alleged violation occurred:
g. Date of Discovery:
h. Means of Discovery:
i. Description:
Signature Block of
Activity/commanding Officer or
Head of Activity
3-23
*December 2024
Figure 3-3. Template for Appointment Orders
Investigating Officer Appointment
MEMORANDUM FOR (Investigating Officer’s Name)
SUBJECT: Appointment as Investigating Officer, Case Number.
1. References:
a. Department of Defense (DoD) Financial Management Regulation Volume 14, Chapter 3.
b. Cite Initial Report.
2. You are hereby appointed as an investigating officer to conduct a preliminary review/formal

investigation of a potential Antideficiency Act (ADA) Violation that allegedly occurred at
(location or activity) in Fiscal Year xx.
3. I certify you have received qualifying fiscal law training within the previous three years and are
qualified to perform this investigation. You are free of any known conflicts of interest and able to
perform an independent review. You will be assisted by (names of legal advisor and support team
subject matter experts).
4. A report detailing the results of your preliminary review/formal investigation will be submitted
no later than (suspense date). Your report must include the facts surrounding the alleged violations
and include a legal review, which supports the conclusion an ADA violation did or did not occur.
5. Provide any additional instructions to the investigating officer.
6. The point of contact for this report is xxx, who can be reached at (phone), or (email)
Signature Block of Appointing Official
3-24
*December 2024
Figure 3-4. Template for Preliminary Review
Preliminary Review
DEPARTMENT OF THE XXX

REPORT OF ANTIDEFICIENCY ACT VIOLATION
Name of Component/Agency and Case No.
1. Appropriations(s) Involved/Title, Symbol, and Apportionment Status. Example: Fiscal Year

(FY) Operation and Maintenance, Defense-wide (9710100)
2. Where Violation Occurred.
3. Name and Location of Activity Issuing the Fund Authorization.
4. Amount of Violation.
5. Date Violation Occurred.
6. Type of Violation(s). Provide 31, U.S.C., section violated and a brief description of the
violation and state whether the violation was an over-obligation of an appropriation, an
apportionment, or an allotment. Example: 1341(a)(1)(A), exceeded the amount available in
appropriation or fund.
7. Effect of Violation on the Next Higher Level of Funding. State whether the violation affected
the next higher level of funding.
8. Date and Description of How Violation Was Discovered. Provide the date and who/how the
violation was discovered.
9. Causes and Circumstances Surrounding the Violation. Provide a detailed description of the
violation. Include the following:
a. A detailed summary of what caused the violation and the associated circumstances; what
actions should have been, but were not, taken by specific individuals; what actions were taken that
should not have been taken; and why the violation happened.
b. The scope of the investigation and the methods used to accomplish the investigation,
for example, face-to-face interviews; research of legal, financial, and management issues; and
written explanation of the facts of the potential violation. Discuss the evolution of the issues
investigated, number of people interviewed, mitigating circumstances surrounding the violation,
issues that could or could not be proven during the investigation and the supporting rationale, any
issues that cannot be agreed upon by those individuals involved, and any other comments that are
pertinent to the investigation.
3-25
*December 2024
Figure 3-4. Template for Preliminary Review (continued)
c. If the investigation has been undertaken because of an audit report, then identify that
report by title, number, date, and issuing audit organization. If the investigation was conducted
because of a memorandum or letter directing an investigation, then reference that document and
attach a copy to the report.
10. Conclusion. Summarize your findings in a paragraph to support your conclusion that a
violation has occurred or that a violation did not occur.
11. Additional Information. Provide details not covered above.
3-26
*December 2024
Figure 3-5. Template for Formal Report
DOD COMPONENT OR AGENCY

REPORT OF ANTIDEFICIENCY ACT VIOLATION INVESTIGATION
Name of Component/Agency and Case No.
1. Appropriation(s) Allegedly Exceeded.
Treasury Symbol or Fund Account, and Apportionment Status. Example: Fiscal Year (FY)
Operation and Maintenance, Defense-wide (97 20102010 0100)
2. Where Violation(s) Occurred.
3. Name and Location of Activity Issuing the Fund Authorization.
4. Amount of Violation.
Provide total and breakdown, if applicable.
5. Date Violation(s) Occurred.
6. Type of Violation(s).
Provide the section(s) of title 31, U.S.C. that was violated. For example, 31, U.S.C. §§§
1341(a)(1)(A), 1342 or 1517(a)(2).
7. Effect of Violation(s) on the Next Higher Level of Funding.

State whether the violation(s) influenced the next higher level of funding.
a. Exceeding an administrative subdivision at the local level can lead to the next higher
level exceeding its subdivision of funds and to the DoD Component's apportionment
and appropriation being exceeded.
b. For instance, if an installation exceeded an amount in operating budget authority or an

allotment, did this cause the higher activity/command operating budget authority or
allocation to also be exceeded? If the higher activity/command operating budget
authority or allocation is exceeded, also state why the DoD/Component apportionment
or appropriation was also exceeded.
8. Name and Position of Responsible Individual(s).
a. If a violation(s) involves a centrally managed allotment, then the head of the operating
agency at the time the violation was incurred must be named responsible.
b. Include the position description of the proposed responsible official as a backup to the
report.
3-27
*December 2024
Figure 3-5. Template for Formal Report (continued)
9. Signed Statement(s) of Responsible Individual(s).

State whether a statement(s) was received from the individual(s). If so, enclose the verbatim
statement. The ADA report must summarize salient points of the proposed responsible
official’s statements and an evaluation of their relevance by the investigating officer. The
introduction of new witnesses and new evidence in the rebuttal statements must be addressed.
Each individual named responsible for the violation(s) must be given the opportunity to state
any circumstances believed to be extenuating. If the proposed responsible official could not
be located or refused to provide a statement, the report must detail measures taken to contact
them and solicit a response. The individual(s) found responsible for the alleged violation must
be:
a. Allowed to consult with legal counsel.
b. Advised that a violation(s) has been determined to have occurred, and that he or she is
named a responsible individual for the violation(s) and must be allowed to review the
report and examine evidence on which the determination was based.
c. Allowed to submit a sworn or unsworn statement regarding the alleged violation(s)

after reviewing the report and evidence.
d. The report must include an evaluation of any facts or circumstances and the effects on
the report when the statement of the responsible officer(s) or individual(s) differs from
the report itself. If the statement has no effect on the report, state the reason(s) why.
Material changes in findings as they relate to the role of the proposed responsible
official must be staffed with the proposed responsible official a final time.
10. Date(s) and Description of How Violation(s) Was Discovered.
Provide date(s) and who/how violation(s) was discovered.
11. Causes and Circumstances Surrounding the Violation(s).
Provide a detailed description of the violation(s). Include the following:
a. A brief, clear description of the causes and circumstances surrounding the violation(s);
what caused the violation(s) and the associated circumstances; what actions should
have been, but were not, taken by a specific individual(s); what actions were taken that
should not have been taken, but were; and why the violation(s) happened. The
description must state clearly, what the individual(s) responsible for the violation(s)
did, or failed to do, that caused the violation(s). State whether the violation(s) was due
to careless disregard of instructions; an error; a lack of adequate training, procedures,
or controls; or due to other reasons. The report must not be so brief that it does not
clearly convey the essential facts and circumstances of what happened.
3-28
*December 2024
Clearly state in sufficient detail what happened. If the violation(s) involved an

appropriation with a negative balance, then state whether the cause of the negative
balance was systemic or a unique situation.
b. The scope of the investigation and the methods used to accomplish the investigation,
for example, face-to-face interviews; research of legal, financial, and management
issues; and written explanation of the facts of the potential violation. Discuss the
evolution of the issues investigated, number of people interviewed, mitigating
circumstances surrounding the violation(s), issues that could or could not be proven
during the investigation and the supporting rationale, any issues that cannot be agreed
upon by those individuals involved, and any other comments that are pertinent to the
investigation.
c. Results of interviews of individuals involved in the violation(s) and a summary of how

the area(s) procedures and processes operated that were involved in the investigation.
Discuss the issues and the areas or functions that were reviewed, evaluated, and
investigated; the names, ranks, and titles of the individuals that were interviewed; and
a discussion on any related areas and matters that were not investigated and the
rationale for omitting them from the investigation.
d. If the investigation has been undertaken because of an audit report, then identify that
report by title, number, date, and issuing audit organization. If the investigation was
conducted because of a memorandum or letter directing an investigation, then reference
that document and attach a copy to the report. To ensure all essential items are
discussed, use the results of the checklist Figure 3-1.
12. Evidence of Willful Intent to Violate.
State whether the ADA was knowingly and willfully violated. If the violation was willfully
committed, was the case referred to appropriate criminal investigators? If criminal
investigators or the Department of Justice declined to pursue the case, clearly state the
outcome.
13. Disciplinary Action Taken.
This section is not used by the investigating officer and must have a statement that discipline
will be implemented only after DCFO review.
The DoD Component will complete this section only after discipline is implemented and
documented.
3-29
*December 2024
14. Corrective Action Taken.
State what procedural actions were taken and completed to preclude violations from happening
in the future. This must include a description of specific action(s) taken to correct the violation.
State what funds were used to make necessary accounting corrections, such as appropriation,
title, and fiscal year. Include any procedural changes or new safeguards established to prevent
the recurrence of the same type of violation. Describe actions in detail so that the adequacy of
the corrective action(s) may be evaluated. This includes improvement of overall and specific
policies, procedures, and processes used by the functional areas involved in the violation;
revised statutes or regulatory guidance that may have been involved; established or improved
internal procedures; and assurance that a similar violation will not occur in the future.
Reference documentation of corrective actions in an enclosure.
15. Administrative Control of Funds.
Name and position of the holder of the funds and an evaluation of whether their exercise of
fund control responsibilities contributed to the violation.
16. Component or Agency Coordination.
State steps taken to coordinate the report with the other components or agencies involved (if
applicable).
17. Additional Information.
If applicable.
3-30
*December 2024
Figure 3-6. Template for Discipline Confirmation
OFFICE SYMBOL
MEMORANDUM FOR DoD Component
SUBJECT: Disciplinary Action imposed on Mr./Ms.__________________, Antideficiency Act

Violation Case XX-XX
1. An ADA violation occurred when Mr./Ms.__________________, while assigned to (activity

or installation) issued/authorized _________________. This resulted in an uncorrectable
violation of the Antideficiency Act.
2. I understand that (a) an Antideficiency Act violation is a violation of Federal statute; (b)
Antideficiency Act violations constitute a misuse of DoD funds even though the misuse may
not have been knowing or willful, and despite whether the disciplinary officer considers the
misuse harmful to DoD, the Military Department or Service, or to the Defense Agency; (c) the
Department is required to report the violation to the President (via the Director, Office of
Management and Budget), the U.S. Congress, and to the Government Accountability Office;
(d) an unwilful or unintentional violation does not justify a decision to not administer
disciplinary action; and (e) disciplinary action must be commensurate with the severity of the
violation, and factors leading to the violation or its resolution may be considered.
3. As identified in the formal investigation, Mr./Ms.__________________ is an individual

primarily responsible for this violation. Mr./Ms.__________________ caused an
uncorrectable violation of the ADA when he/she (state specific actions). As the officer charged
with imposing discipline in this case, I issued (state actions) to Mr./Ms.__________________.
While I considered _____, I have determined that _______________ is appropriate for the
following reasons: ________________. No further discipline against Mr./Ms.
___________________ will be taken.
4. My point of contact for this action is xxx who can be reached at (xxx) xxx-xxxx, email: xxx.
Signed
Disciplinary Officer
3-31
DoD 7000.14 - R
CHAPTER 4: "ARCHIVED"

(COMPTROLLER)
DoD 7000.14 - R

(COMPTROLLER)
DoD 7000.14 - R

(COMPTROLLER)
DoD 7000.14 - R

(COMPTROLLER)
DoD 7000.14 - R

(COMPTROLLER)
DoD 7000.14 - R

(COMPTROLLER)

volume_14

Uploaded by

Copyright:

Available Formats

volume_14

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

volume_14

Uploaded by

Copyright:

Available Formats

DoD 7000.

VOLUME 14: “ADMINISTRATIVE CONTROL OF

UNDER SECRETARY OF DEFENSE

Volume 14 Table of Contents

CHAPTER 1: “ADMINISTRATIVE CONTROL OF FUNDS” ................................................ 1-1

CHAPTER 2: “ANTIDEFICIENCY ACT VIOLATIONS” ....................................................... 2-1

CHAPTER 3: “ANTIDEFICIENCY ACT VIOLATION PROCESS” ....................................... 3-1

CHAPTER 4: “ARCHIVED” ...................................................................................................... N/A

CHAPTER 5: “ARCHIVED” ...................................................................................................... N/A

CHAPTER 6: “ARCHIVED” ...................................................................................................... N/A

CHAPTER 7: “ARCHIVED” ...................................................................................................... N/A

CHAPTER 8: “ARCHIVED” ...................................................................................................... N/A

CHAPTER 9: “ARCHIVED” ...................................................................................................... N/A

VOLUME 14, CHAPTER 1: “ADMINISTRATIVE CONTROL OF FUNDS”

SUMMARY OF MAJOR CHANGES

Unless otherwise noted, chapters referenced are contained in this volume.

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

The previous version dated June 2020 is archived.

PARAGRAPH EXPLANATION OF CHANGE/REVISION PURPOSE

VOLUME 14, CHAPTER 1: “ADMINISTRATIVE CONTROL OF FUNDS” .......................... 1

1.1 Overview ........................................................................................................................ 3

2.0 POLICY ............................................................................................................................. 4

2.1 Defense-wide Appropriations ........................................................................................ 4

ADMINISTRATIVE CONTROL OF FUNDS

1.3 Authoritative Guidance

Administrative division of apportionments and control of funds is prescribed by Title 31,

1.3.1. 31 U.S.C. §§ 1341–1342, 31 U.S.C. §§ 1349-1351, and 31 U.S.C. §§ 1511-1519

1.3.3. 31 U.S.C. §§ 1501-1502

1.3.5. 2 U.S.C. §§ 681-688 (Congressional Budget and Impoundment Control Act

2.1 Defense-wide Appropriations

2.2 Administrative Control Systems

DoD Components must:

2.3 Reporting Requirements for Administrative Control Systems

2.4 Delegations of Authority

2.5 Statutory Limitations and Duties of DoD Officials

2.5.9. Maintain internal control systems to ensure that:

2.5.10. Issue and maintain appropriate delegations of authority.

2.6 Apportionments, Allotments, Suballotments and Allocations

The administrative control of funds process restricts obligations and expenditures

2.6.1. Apportionments. An apportionment is a distribution made by OMB of amounts

2.6.1.1. When DoD appropriations or other funds are required to be apportioned

2.6.1.3. Apportionments that anticipate the need for a deficiency appropriation or

2.6.1.3.1. Laws enacted subsequent to the transmittal of the annual budget

2.6.1.3.2. Emergencies involving human life, the protection of property, or

2.6.2. Allotments. An allotment is a subdivision of an apportionment that is made by the

2.6.2.1. The USD(C) must make allotments of apportioned amounts, in writing, to

2.6.2.1.1. The original signed document or an authenticated copy bearing a

2.6.2.1.2. At a minimum, this document must contain the following basic

2.6.2.1.2.1. Amount available;

2.6.2.1.2.2. Funding source;

2.6.2.1.2.3. Time period of availability;

2.6.2.1.2.4. Position and title of the responsible official and other

2.6.2.1.2.5. Justification for changes in allotments.

2.6.2.1.3. A suballotment is a subdivision of an allotment. It is a formal

2.6.2.3. The use of an electronically reproduced equivalent of an original signature

2.6.2.3.2. One set of access codes must be used to issue fund

2.6.2.3.3. Other controlled access codes must be used to process a signature

2.6.2.3.4. The authentication, signature element, and symbol must be

2.6.2.4. Anticipated transfers or other items of anticipated receipts may be

2.6.2.5. Allocations are subdivisions of suballotments, or subdivisions of