Federal Appropriations and Fiscal Law

Every expenditure of federal funding has to comply with a complicated regime of fiscal law, especially for government contracts. This presentation, presented by Pete Dungan (materials prepared by Kenneth J. Allen), takes the fear and mystery out of this topic and explains the operation of the key fiscal laws, principles, and opinions of the Comptroller General and Attorney General in the context of government contracting. The concept of the “availability” of appropriations will be discussed in terms of the purpose of an appropriation, including the time in which the appropriation must be obligated on a contract, and the constraints of the Antideficiency Act, which defines the timing and amounts of an obligation. This Act and its requirements, prohibitions and penalties, will be thoroughly explained and illustrated with case studies of ADA violation reports submitted to Congress.

Learning Objectives:

1. Review the structure and authorities of federal fiscal law
2. Grasp concepts of “availability” and an “obligation” of an appropriation
3. Explain the Purpose Statute and “Necessary Expense Doctrine,” which control what appropriations can be used for, and the effect of a “purpose” violation
4. Assess the “life cycle” of appropriations and the “Time Law” and “Necessary Expense Doctrine,” and the effect of a “time” violations
5. Review the funding rules for severable and non-severable contracts, and the difference between “multiple year” and “multiyear” contracts
6. Understand what a “personal services” contract is
7. Introduce the Antideficiency Act and its requirements and prohibitions