REVISED GUIDANCE FOR APPROVAL OF UPWARD OBLIGATION ADJUSTMENTS AND USE OF CURRENT APPROPRIATIONS TO FUND PAYMENTS AND ADJUSTMENTS TO CANCELED APPROPRIATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP09K00541R001000090020-2
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 38
• Document Creation Date: December 22, 2016
• Document Release Date: August 16, 2011
• Sequence Number: 20
• Publication Date: March 25, 1992
• Content Type: MEMO

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DEPARTMENT OF 'HE AIR FORCE
WASHINGTON 0C ;0330-1000
2 5 MAR 99?
MEMORANDUM FOR ALL MAJCOM/FOA/DRU COMPTROLLERS/ CONTRACTING
SUBJECT: Revised Guidance for Approval of Upward Obligation
Adjustments and Use of Current Appropriations to Fund
Payments and Adjustments to Canceled Appropriations -
INFORMATION MEMORANDUM
Since the 23 Jul 91 guidance package was issued, a lot of
work has been done across the Secretariat, the Air Staff, and
with the DoD Comptroller (DOD(C)) personnel to work policy and
procedural issues related to implementation of Public Law 101-
510. This new guidance package resolves some issues identified
to date, with the exception of expired year line item detail,
reprogramming procedures, and contract changes to include funding
target to ceiling cost growth. Open dialogue with DoD(C) for
resolving these issues continues. Air Force issues related to
internal controls for reducing cost growth and identifying
rescurces for prior year upward obligation adjustment
requirements demand everyones attention, both in the field and at
the Air Staff.
Highlights for changes contained in the revised guidance
focus on instructions for requesting upward obligation
adjustments, more strict application of the contract change rule,
and DoD appropriation adjustments to name a few. These changes
respond to DoD(C) oversight and interpretation of the revised
statute. The current DoD(C) definition for contract change is
different from our past contracting practices. Financial
manaq'ent- legal personnel and other disciplines involved in the
acquisition process need to be familiar with the DoD definition.
DoD(C) has rejected legislative proposals but is considering a
change to contract change policy. As a result, we will not
include detailed guidance for contract change until DoD(C)
renders a decision. Legislative change will not be entertained
until a thoroughly justified case is built that establishes the
need for changes.
Elimination of the "M" account and tighter rules for
financing upward adjustments are having significant impacts on
program and financial management. Emphasis must be placed on
internal oversight processes tc successfully stay within the
limits of current rules. These new rules have created changes
requiring new solutions, .nd we appreciate all the work you've
been doing to operate under new procedures.
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A lot of work remains to be done, especially to document our
case for revising rules. At the same time we are continually
working with DoD(C) to clarify and resolve policy issues. We'll
keep you updated on our progress. If you have any questions
p
concerning this guidance, please contact Gregory P. Kuechler, SAF/FMBMC, DSN 225-4938.
JOHN 'N. BEACH
Deputy iUr Budget
1 Atch
Revised Guidance
cc: DoD(C)(MS)(PB)
SAF/ FMBI/FMBO/FMBM
SAF/ FMP
SAF/GCA
SAF/AQX/AQC
AF/JAC
SAF/ LGS
DFAS-Denver Center/P
NGB/FM
AF/REC
AF/CEC
HQ USACE/CERM-ZA
NAVCOMPT/NCB32
SAFM/BUC-E
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DEPARTMENT OF THE AIR FORCE
WASHINGTON DC 20330-1000
10 JUL 1992
MEMORANDUM FOR ALL MAJCOM/FOA/DRU COMPTROLLERS/CONTRACTING
SUBJECT: Update to the Revised Guidance for Approval of Upward
Obligation Adjustments and Use of Current
Appropriations to Fund Payments and Adjustments to
Canceled Appropriations - INFORMATION MEMORANDUM
Guidance issued by the Comptroller of the Department of
Defense (DoD(C)) on 13 June 1991 required all contract changes,
including within-scope changes, to be charged to current
appropriations. Effective 8 April 1992 with narrative guidance
issued 20 April 1992, the policy for funding contract changes
reverted to the original policy contained in both the DoD 7220.9-
M, Accounting Manual, and AFR 170-8, paragraph 34. Contract
changes through 7 April 1992, citing current year funds are not
to be retroactively changed. Based on this revision, we have
modified our 25 March 1992 guidance accordingly. In addition,
DoD(C) issued reprogramming guidance to the services. We
to be Please
incorpoated
substituted that
sethis ries information
for pages
of o page l changes well.
update in
uthe 25 March 1992 guidance.
We are still talking with DoD(C) and DFAS-DE about line item
control levels, accounts receivable determined to be bad debts
payments defining
after complete obligation g to clear authority, and
tat
necessary general ledger entr
arrive after accounts close.
We of course welcome any comments you have to help resolve
"M"/expired account issues and we're available to assist with any
questions regarding this guidance. My focal point i_-F G.regory P.
5-4938
.
Kuechler, SAF/FMBMC, DSN 22
.;obert F. Swarts
Major General, USAF
2ep-.; Assistant Secretary (Buddatl
1 Atch
Guidance Update
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cc: DoD(C) (MS) (PB)
SAF/FMBI/FMBO/FMBM
SAF/FMP
SAF/GCA
SAF/AQX/AQC
AF/JAC
SAF/LGS
DFAS-Denver Center/P
DFAS-Columbus Center/CRC
NGB/FM
AF/REC
AF/CEC
HQ USACE/CERM-ZA
NAVCOMPT/NCB32
SAFM/BUC-E
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TABLE OF CONTENTS
1. Foreword (updated, July 92)
2. Changes in Appropriation Life Cycle
3. Contract Changes, Upward Obligation Adjustments, and
Sample Conditions (replaced, July 92; adds atch 3)
4. Use of Current, Expired and "M" Appropriations
(replaced, July 92)
5. Current Appropriation Controls (updated, July 92)
6. Upward Obligation Adjustment and Contract Change
Requests (updated, July 92)
7. Unrecorded Obligations and Payments (updated, July 92)
8. Antideficiency Act Violations
9. Foreign Currency Fluctuation Obligations and Payments
(addition, Mar 92)
10. DoD Appropriations (addition, Mar 92)
11. Obligating Upward Adjustments in the Accounting System
(addition, Mar 92)
12. Review of Obligated Balances in the Expired Years and
"M" Account (addition, Mar 92)
13. Prior Year Obligated Due-Outs (addition, Mar 92)
14. Reprogramming Procedures (replaced, July 92)
15. Levels of Control in Expired Accounts (Reserved for
future DoD(C) g':idar_ce)
16. Reporting Requirements (replaced, July 92)
Atchs
1. Definition of terms (updated, July 92)
2. "M" Account Cancellation Schedule (renumbered from #3 in
previous guidance)
3. Flowchart
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GUIDANCE FOR PROCESSING UPWARD OBLIGATION ADJUSTMENTS
AND USE OF CURRENT APPROPRIATIONS TO FUND PAYMENTS AND
ADJUSTMENTS TO CANCELED AND UNCANCELED APPROPRIATIONS
1. FOREWORD
The following guidance updates the SAF/FMB Guidance for
Approval of Upward Obligation Adjustments and Use of Current
Appropriations to Fund Payments and Adjustments to Cancelled
Appropriations, dated 23 July 1991, and implements the
requirements of Title 31 of the United States Code, Sections
1551-1557, as revised by P.L. 101-510, FY 1991 National Defense
Authorization Act, 5 November 1990. Also, the guidance includes
implementation instructions contained in OMB Bulletin No. 91-07,
dated 17 Jan 1991, Treasury Financial Management Bulletin No. 91-
03, dated 7 Feb 1991, Revised DOD Guidance on Accounting for
Expired Accounts, Including "M" and Merged Surplus Accounts,
dated 13 Jun 1991, DoD Accounting Guidance for Contract Changes
dated 20 April 1992, and Reprogramming Guidance dated 20 April
1992. The contract change rules for charging prior year funds
for within-scope changes are effective 8 April 1992 (notification
date from DoD(C)). Retroactive adjustments are not authorized.
This guidance package will be updated as required to capture
current DoD rulings. In most cases, the guidance package updates
will precede AFR 172-1, Vol 1, Chap 6, updates. Use this
guidance package as the most current FMB direction until related
regulation updates to AFR 172-1 are issued. Pertinent
definitions are contained in attachment 1.
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CHANGES IN APPROPRIATION LIFE CYCLE
2.
a. Under P.L. 101-510, appropriations which had not
transferred to the "M" accounts as of 5 November 1990 must retain
fiscal year identity indefinitely. DoD(C) policy may require the
Services to retain fiscal year identity line item detail. _ajld The level of detail will be defined in the next DoD(C) policy
instruction. Fiscal year identity is required to meet statutory
requirements and line item detail to meet reporting requirements
concerning the use of current appropriations. See paragraph
eight for related Antideficiency Act violations.
b. Activities will be restricted to "M" account ceilings
based on their 1 October obligation balance each fiscal year.
Any deobligations reflected as of 30 September will be withdrawn
by the U.S. Treasury and obligation ceilings will be adjusted
accordingly. As a result, the obligated balances in the "M"
accounts cannot exceed the total obligated balances as of 1
October of each new fiscal year until cancellation of the "M"
account on 30 Sept 93. The only activity in the remaining
uncanceled "M" accounts during the transition period will be
liquidation of obligations through payment, deobligations from
"M" accounts, or authorized increases due to valid upward
obligation adjustments. In no circumstance shall the increase in
obligations exceed the 1 October baseline.
c. Obligations which may have been recorded as hedges
against future contingencies are not valid and should be
rescinded as part of fiscal year end certification procedures.
Requirements for recording obligations remain unchanged and are
contained in AFR 170-8, Accounting for Obligations.
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3. CONTRACT CHANGES. UPWARD OBLIGATION ADJUSTMENTS. AND SAMPLE
CONDITIONS
a. Public Law 101-510, (31 U.S.C. 1553) specifies that the
type of contract change which may be charged to an expired and
"M" account is "a change to a contract under which the contractor
is required to perform additional work. Such term does not
include adjustments to pay claims or increases under an
escalation clause." These latter adjustments are provided for in
the contract and do not represent contract changes.
adjustments are properly chargeable to the account cited on the
original contract.
b. Congressional intent is to monitor within-scope contract
changes made by government agencies to expired and "M" year
contracts. This is performed through the required review
process. Under the new law, our within-scope contract changes
must be approved by DoD(C) if: (1) change requires additional
work by the contractor, AND, (2) may be financed with prior year
funds, AND, (3) the funds required for the program, project, or
activity (PPA) exceed $4 million during a fiscal year (cumulative
on the PPA throughout the fiscal year). DoD(C) must notify
Congress of changes in excess of $25 million (NOTE: any
adjustment made to the PPA after the $4 million threshold is met
will have to be reviewed by DoD(C) including those items under
$100 thousand).
c. To assist in distinguishing those within-scope contract
changes that may require DoD(C) review from other upward
obligation adjustments, we created a decision tree. Also
included in the tree is a category for changes in contract scope.
The Decision Tree chart (chart at attachment three) and narrative
at paragraph g, h, and i below follow three conditions: (1)
upward obligation adjustments, (2) within-scope contract changes
that may require reporting to DoD/Congress, and (3) changes in
contract scope.
d. The three sample conditions (and related situations) and
the decision tree are only tools for analyzing contract changes
and other prior year obligation adjustments. Keep in mind that
the types of transactions listed below are not all inclusive and
only highlight areas common to most AF activities. Your command-
unique transactions will have to be evaluated in light on P.L.
101-510, Comptroller General decisions, the bona fide need rule,
and this guidance. P.L. 101-510 does not eliminate the role of
the Comptroller General; therefore, you should document the
relevant Comptroller General decision/s when making
determinations and recommendations regarding command-unique
processes. Also, use the bona fide need rule to properly
evaluate all within-scope and change in contract scope
transactions. We will evaluate all contract change/upward
obligation adjustment requests in light of the bona fide need
rule regardless of the condition identified by the requestor.
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e. Some contract changes/upward obligation adjustment
requests may contain more than one condition or action. It is up
to the initiator of the request to segregate the actions in the
request packages to expedite processing. Approval procedures are
identified in paragraph six of this guidance.
f. Funding of the transaction is approval discussed
four and five of this guidance with ain paragraph six.
g. Condition one: Upward obligation Adjustments. These
conditions are not considered to fit the contract change criteria
in 3a above and do not require DoD or Congressional review. If
the funds from the related obligation have been canceled, current
year funds must be used. See paragraphs four and five for
additional funding guidance. Transactions of the following types
will normally fall within this category:
(1) Award and incentive fees
(2) Correction of administrative errors. Includes an
obligation properly recorded and then erroneously
deobligated by contracting or a designated contracting
representative, correcting contracting errors of the
procuring contracting officer (PCO) discovered after
the contract is signed, and recording of payments made
before the appropriation is closed but not recorded by
the accountable station until after closure.
(3) Correction of accounting errors. Includes an
obligation that was properly recorded and then
erroneously deobligated by accounting, where accounting
failed to record a valid obligation, establishment or
maintenance of erroneous accounts/refund receivables,
where funding is required to cover approved
accounts/refund receivable write-offs.
(4) Price inflation adjustments included in~the
original contract clause (economic and escz_____f price
adjustments), labor wage redetermination, and cost
sharing per contract clause ratios
(5) Ratification actions. Ratification actions that
occur when an obligation is incurred by an unauthorized
officer or employee and becomes binding on the Air
Force and is ratified under AF FAR Supplement
5301.602-3. Such action can occur when an employee
knowingly allows a contractor to perform work outside
the specifications of the contract without
certification of fund availability and procurement
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authorization. Charge the appropriation and fiscal
year that would have been charged had the obligation
been valid from its inception (AFR 170-8(30), gat
16(46), CG Decision 1983 20-208730).
(6) Foreign currency fluctuation (see paragraph 9 -
Foreign Currency Fluctuation Obligations and Payments).
(7) claims. In most cases, claims (in accordance with
the Contract Disputes Act of 1978) should be obligated
against the appropriation on the contract. Exceptions
and clarification follow:
(a) If a claim is paid from the statutory
Judgement Fund as a result of a decision by
Armed Services Board of Contract Appeals (ABSCA)
or the United States Claims Court, the Air Force
reimbursement to the Judgment Fund must be charged
to appropriations current at the time the board or
court decision is rendered (AFR 170-8:28).
Under 10 U.S.C. 2863 (added by Public Law
100-180, enacted 4 December 1987) and
notwithstanding any other provision of law,
meritorious contractor claims that arise under
military construction contracts or family housing
contracts may be paid from any unobligated funds
appropriated and available for military
construction or family housing construction
projects, as the case may be. Therefore, claims
on construction projects, including 0&M-funded
minor construction projects, no longer need to be
funded from the project amounts, and such claims
do not affect statutory limits.
(c) In most cases, payment for meritorious 'claims
(in accordance with the Contract Disputes Act of
1978) should be obligated against the
appropriation used on the contract. However, each
claim must be analyzed on its own merits to
determine which funds shoo-Id hp obligated to cover
the Government's liability. In every case,
consider the application of the bona fide need
rule to determine the appropriate fiscal year of
funds to charge.
(8) Definitization of undef initized contractual
actions (UCA), such as letter contracts or unpriced
orders, after the appropriation expires. The term UCA
includes any action entered into when final terms,
specifications, or price are not agreed to prior to the
start of work performance. Continually update
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definitization schedules for all UCAs issued. Extra
effort must be exercised to definitize UCAs prior to
expiration of funds.
(9) Provisioning Item Orders (PIO) price
definitization. Some contracts contain options which
allow activities to issue provisioning orders for items
such as spares, repair parts, or aerospace ground
equipment. Record obligations at the time the SF 30,
Amendment of Solicitation/Modification of Contract, is
issued to the contractor. Price definitizations
requiring additional obligations should be charged to
the same appropriation charged on the initial order
provided there is no change in the scope of the order.
(10) Contract overruns. Each transaction must be
evaluated against the bona fide need rule to determine
the proper fiscal year to charge, especially on
contracts with multiple modifications spanning several
fiscal years. If a contract modification has increased
the scope of the contract and work on the additional
effort results in an overrun, fund the overrun from
appropriations available for obligation at the time of
the contract modification which increased the scope of
the contract.
(11) Contract closeout costs. Each transaction must
be evaluated against the bona fide need rule to
determine the proper fiscal year to charge, especially
on contracts with multiple modifications spanning
several fiscal years. If a contract modification has
increased the scope of the contract and closeout costs
relating to work on the additional effort must be
funded, fund from appropriations available for
obligation at the time of the contract modification
which increased the scope of the contract.
(12) Incentive contracts funded from target to
ceiling. If cost growth from target to ceiling results
from compliance with the terms and conditions of the
contract, fund with, '%-.:c same appropriation obligated on
the contract. Some examples are: negotiation of final
overhead rates; scrap and rework; and configuration
updates.
(13) Contingency items (within the scope of the
contract). Contract provisions may authorize the
government to require additional performance involving
such areas as facilities, maintenance, repairs and
parts, etc. Fund with the same appropriation used for
the original obligation when such within scope work is
ordered.
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This
h. Condition two: within-Scope Contract Changes.
to thatsubmittedcan be
havechanges
condition identifies those contract
to expired and "M11 accounts and may
DoD(C) and Congress for approval. Within-scope contract changes
must use the same fiscal year funds as the relatedaobligationt.
unless the bona fide need rule for the same year
eneccanceled and the
must have bbeen
If the funds on the related obligation
account is closed, current year See.
paragraphs four and five for additional funding guidance.
Examples of situationsdthat will normally be within-scope
contract changes in
(1) Any contract modification that requires the
contractor to perform additional within-scope work
(2) Differing site conditions. Increased costs due to
differing site conditions.
(3) Contract defaults resulting in reprocurement
contract actions. When a reprocurement action will
result in a replacement contract, it may be funded from
the same fiscal year funds as the related obligation if
all of the following conditions are met:
(a) The Air Force has a continuing bona fide need
for the goods or services involved.
(b) The original contract was made in good faith.
(c) The original contract was terminated for
default or for the convenience of the Government.
If the original
thenGovernment, terminated for the
termination was
convenience
the result of a:
- Court order
- Determination by a contracting officer
that the contract award was improper when
there is explicit evidence that the award was
erroneous and when determination
of fact
documented with appropriate
and of law.
- Determination by other competent authority
(for example the GeneraAountingtoffice or
a Board of Contract Appeals),
contract award was improper.
(d) The replacement contract is:
- Substantially of the same size and scope
as the original contract.
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- Executed without undue delay after the
original contract is terminated.
- Awarded to a different contractor.
(4) Engineering change proposals (ECP), Value
Engineering Change Proposals (VECP), solicited or
unsolicited, and Contract Change Proposals. Since
these proposals may result in changes in contract
scope, each situation must analyzed
used to coverothe
determine which funds may properly
Government's liability.
Condition three: Change in Contract Scope. Where
i.
changes result in an increase in contract scope, the additional
work must be funded from appropriations available for current
obligation. Such transactions need not be reported to DoD or
Congress under P.L. 101-510. See paragraphs four and five for
additional funding guidance. Examples of situations which may
Whether
result in changes in contract scope are listed below.
the contract scope has been changed depends on the unique facts
and circumstances of each situation, so each must be analyzed
separately to make this determination. Situations that fall
within this category include:
(1) Increases in quantities
(2) Modifications of service contracts that increase
deliverable services or reports
(3) Increase to the number of hours to be worked
(4) Extended period of performance, especially where
extension results from AF initiative and sole purpose
of the change is to extend the period of performance.
(5) Changes to form, fit, or function of end items
beyond the scope of the original specifications.
(6) Engineering change proposals (ECP), Value
Engineering Change Proposals (VECP), solicited or
unsolicited, and Contract Change Proposals. Note that
these situations are also listed as potential within-
scope contract changes.
j. Contract Options - Funding procedures for contract
options are not addressed in this guidance package since contract
options are financed when exercised and not considered a prior
year transaction. Once the funds related to the exercised option
expire/cancel, related upward obligation adjustments would fall
within the purview of this guidance package.
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SE OF CURRENT EXPIRED AND "M" APPROPRIATIONS
4. [t '
Use of Current Appropriations
a. Use of current appropriations to finance canceled
appropriation requirements. Current appropriations must be
used to finance payment of obligations and upward obligation
adjustments against canceled "M" account years and for
payments of uncanceled "M" account obligations when
deobligated balances are not available. The Air Force may
not use more than one percent of each current appropriation
over the appropriation's life for financing canceled
obligations and upward obligation adjustments. Details of
the one percent limitation are contained in paragraph five
of this guidance.
b. Use of current year appropriations to finance changes in
contract scope. Current year appropriations must be used
for changes in contract scope and will be considered
reprogrammings when the source of funds is from a different
budget line than the requirement. Use reprogramming
procedures described in AFR 172-1 Vol 1, chapter 2. See
paragraph 14 for additional reprogramming guidance.
Use of Expired Appropriations
c. Use of expired appropriations to finance upward
obligation adjustments. After an appropriation expires, the
unobligated balance plus any deobligations may be used to
finance valid adjustments until the appropriation closes at
the end of the fifth expired year. Current year funds
cannot be used for adjustments applicable to expired years.
Unobligated balances in the expired years cannot be used to
finance "M" account adjustments.
d. Payments related to expired appropriations about to
close. Paying stations must be cognizant of accounts
bearing closed appropriations. When a request for payment
of an obligation is received, the paying office is
responsible for ensuring the funds cited are available and
are not canceled.
(1) If the funds cited are applicable to a closed
appropriation, the paying office must request a new
(current) fund citation from the accountable office
before disbursement. Payments of obligations against
an appropriation which has been closed will be funded
with current appropriations made available by the
accountable office.
(2) Authorization of a payment against an
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appropriation account which has been closed a
reportable violation of the Antideficiency Act under
AFR 177-16.
(3) Except for appropriations 7040 and 3300,
MAJCOM/FOA/DRU comptrollers of the accountable office
may approve the use of current funds to make
etthese0 and
payments in amounts of $100,000 or less. B
3300 related transactions of $100,000 and under must be
reviewed with SAF/FMBIC prior to action. Transactions
exceeding $100,000 must be processed according to
paragraph six.
Use of "M" Appropriations
e. Valid deobligations which occur in the remaining
unclosed "M" years may be used to finance valid upward
obligation adjustments applicable to those years. The
fiscal year of the "M" account deobligation does not have"to
match the fiscal year of the adjustment being funded.
account deobligated balances on the books as of the end of
each fiscal year will be withdrawn and canceled.
f. Utilization of "M" account deobligations within the
MAJCOMs is authorized. For example, ibase
ehneeds can
deobligations to cover an upward adjustment,
decrease limitation of a losing activity to increase the
limitation of a gaining activity. Ensure proper controls
are in place to prevent exceeding the MAJCOM limitation.
Information on Closed Accounts
g. As of the date of this memo, closed I'M"
are: FY 84 and prior for one-year appropriations,
prior for two-year appropriations, FY 82 and prior for
three-year appropriations, and FY 80 and prior for five-year
appropriations. The remaining "M" account years will close
according to the schedule at attachment 2.
Operating Agency Responsibility
h. The operating agency to whom the original funds were
issued is responsible for providing sources of current
appropriations for payments and upward adjustments which
relate to closed appropriations or remaining unclosed "M"
year requirements. In the event that the operating agency
responsible for the program has changed, such as the
establishment of AFSOCOM to manage SOF funding, the
operating agency currently responsible for the program must
provide current appropriation sources.
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5. CURRENT APPROPRIATION CONTROLS
appropriation. The total of
a. Checking the original acurrent funds used to fund a canceled appropriation upward
adjustment cannot cause the total obligations and expenditures
for the canceled appropriation to exceed the amount originally
appropriated to the canceled appropriation. This requirement
applies to those fiscal years whose obligated balances had not
transferred to the I'M"
the end ofvF 199after0,
appropriations that expired
be The one percent limitation. The use of current
appropriations to fund canceled obligations where payment is
imminent in the current fiscal year and upward obligation
adjustments remaining in uncanceled "M" accounts which has no
budget authority available is permitted by P.L. 1i01-on510 that
limited to one percent of each current appropriat
appropriation's life.
(1) The one percent limitation will be footnoted t by the Air Force apportionment documents app y the
Office of Management & Budget (OMB). This footnote
will not result in the withholding of any funds by OMB,
DoD or the Air Force. Withholding funds at the MAJCOM
level is not recommended.
(2) Except for appropriations 7040 and 3300, SAF/FMBMC
will provide a portion of the one percent limitation to
each MAJCOM/FOA/DRU as a ceiling on all current year
budget authorization documents. This ceiling applies
to uses of $100,000 or less. Requests for increases to
this ceiling should be forwarded to SAF/FMBMC for
approval. For 7040 and 3300 instructions see paragraph
5c (1) below.
(3) Limitation related to payments or upward
obligation adjustments in excess of $100,000 approved
by SAF/FMBMC will not be issued to the field. FMBMC
will charge the limitation held at the headquarters for
the approved requests.
(4) It should be noted that while the one percent
limitation is a ceiling, funding is not being withheld.
When current appropriations are required to fund
obligations related to canceled accounts where payment
is imminent or for an upward adjustment against an
uncanceled "M" account, the requiring office must
provide the sources. When funding is unavailable at
the MAJCOM/FOA/DRU level, consult with the SAF/FMB
appropriation manager.
(5) These ceilings are limitations subject to the
Antideficiency Act and violations are reportable under
AFR 177-16.
5-1
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Approval authority.
(1) For the Military Construction and Military Family
Housing appropriations (3300 and 7040), approval of
upward adjustments $100,000 and below, including
contract changes, will be made by SAF/FMBIC. For
upward obligation adjustments over $100,000, follow
procedures outlined in paragraph six.
(2) SAF/FMBMC will retain AirForce approval authority
for the use of current appropriations payments against canceled appropriations in excess of
$100,000, (2) all upward obligation adjustments in
excess of $100,000, and (3) contract changes in excess
of $100,000.
(3) MAJCOM/FOA/DRU comptrollers must recommend and
designate current appropriation sources when requesting
approval. Follow the process identified in paragraph
six.
(4) Other than 7040 and 3300 appropriations, use of
current year funds to cover canceled account
requirements and contract changes less than or equal to
$100,000 are approved by MAJCOM/FOA/DRU comptrollers.
Approval may be delegated below MAJCOM level provided
such adjustments are clearly identified and
periodically reviewed at MAJCOM level. See paragraph
6b. for reporting requirements.
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o. PWARD OBT TGATION ADJUSTMENT AND CONTRACT C ANGE REQUESTS
a. Adjustments, including accounting error correction
transactions, and contract changes greater than $100,000 that
ed by
comust
involve any individual action or contract
tdbenapprovedobytinq
be
SAF/FMBMC before the adjustment may
records. Obligations may not be the net of upward adjustments
against downward adjustments to avoid this approval requirement.
b. MAJCOM/FOA/DRU comptrollers provide
information to SAF/FMBMC when requesting adjustment
change approval:
I. PROGRAM/PROJECT INFORMATION:
1. Program and/or project name
2. Name of contractor or vendor
3. Contract number
4. Date of original contract
5 Type of contract. If a time & materials contract,
please indicate whether the effort is/is not severable.
6. Contract purpose
II. ACCOUNTING INFORMATION:
7. Appropriation
8. Fiscal year of adjustment
9. Budget program account code (BPAC) for procurement
funds, budget authorization account number (BAAN) for
Military Family Housing and Military Construction
funds, and program element (PE) for RDT&E and O&M
funds.
III. ADJUSTMENT NARRATIVE DETAIL:
10. Amount of the adjustment
11. Expected obligation/liquidation date for adjustment
12. Amount of additional obligation authority needed,
if any
13. Purpose of the adjustment. There may be situations
where more than one condition is applicable. Cite all
conditions to expedite processing of the request.
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Select from the following list of standardized
purposes: claim, contract closeout costs, incentive
fee, award fee, administrative error, accounting error,
cost overrun, price inflation (escalation or economic
price adjustment), foreign currency fluctuation costs,
target to ceiling, and reprocurement.
14. Justification for using expired funds,
deobligations from remaining "M" accounts, or current
funds when the appropriation properly chargeable has
been canceled. This justification should be complete
and explain why an adjustment is properly chargeable to
the type of funds requested. Do not merely restate the
purpose of the contract. State what events have
occurred that require an increase in the amount of
funds originally obligated for this effort. When the
increase is caused by a design or specification change,
state when that change was incorporated into the
contract. If the increase is due to an estimating
error, explain the basis of the original estimate. For
3600 upward adjustments, provide the period of
performance as well as the date of the contractual
instrument authorizing the work. For all adjustments,
include supporting and convincing arguments for
justifying the obligation of expired/"M" year funds.
IV. HISTORIC OBLIGATION INFORMATION:
15. Current amount obligated against this contract.
16. Total amount obligated for the program, project, or
activity.
17. Amounts previously deobligated from this contract
or other relevant obligating document.
18. Amounts previously deobligated for the program
project or activity.
V. SOURCE OF FUNDS:
19. Identify the appropriation to be used for funding
the adjustment. If current year funds must be used to
support an upward obligation adjustment related to a
canceled appropriation, indicate this requirement. If
current year funds are identified to support a contract
change, indicate this requirement. If expired year
funds are used to support an upward adjustment only
identify the appropriation to be used. Even though no
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other additional information must be supplied, the
certifiers of the request must verify that statutory
limits are not exceeded by the increase in funding.
20. Source of deobligations, if applicable. State
contract number, fiscal year, appropriation and PE,
BPAC, MFP, or project for each deobligation which will
finance the upward obligation adjustment. Identify the
source of the deobligation.
'I. DETERMINATIONS:
21. Determination that this adjustment is/is not a
contract change. Applicable definition for contract
change is contained in paragraph three of this
guidance. Include the name, title and telephone number
of the contracting officer making this determination
(along with the name of any legal personnel providing
advice if desired). Signature required.
22. Determination that this adjustment is/is not within
scope of the original contract. Include the name,
title and telephone number of the contracting officer
making this determination (along with the name of any
legal personnel providing advice if desired).
Signature required.
23. Determination that this adjustment is a proper
charge to the funds identified in 7,8, & 9 above.
Include the name, title and telephone number of the
Accounting and Finance officer making this
determination. Signature required.
24. Determination that the adjustment will not exceed
the statutory and administrative limits per AFR 177-16
and public law (authorization/appropriation bill
limitations) established for the program, project,
budget line, or appropriation. Include the name, title
and telephone number of the Budget Officer making this
determination. Signature requited.
VII. MAJCOM/FOA/DRU COMPTROLLER SIGNATURE:
25. Any upward obligation adjustment request (i.e.
prior year or contract changes) in excess of $100,000
must be signed by the MAJCOM/FOA/DRU comptroller before
forwarding to SAF/FMBMC. We recommend that the
packages be prepared at the lowest level (i.e. action
officer/FM personnel at base level) with a cover letter
from the MAJCOM/FOA/DRU comptroller. Approval
authority at the MAJCOM comptroller level may be
delegated to the MAJCOM Director of Budget. SAF/FMBMC
will return to the sender all upward obligation
6-3
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adjustment and contract change requests where the
requesting signature is at a level lower than
MAJCOM/FOA/DRU comptroller or delegated FMB.
c. Upward obligation adjustment requests and contract
changes less than or equal to $100,000. Other than 7040 and 3300
appropriations, expired or merged appropriation account upward
obligation adjustments and contract changes less than or equal to
$100,000 shall be approved by MAJCOM/FOA/DRU comptrollers. All
7040 and 3300 appropriation requests $100,000 and below must be
reviewed with SAF/FMBIC. Approval may be delegated below MAJCOM
level provided such adjustments are clearly identified and
periodically reviewed at MAJCOM level.-* Supporting documentation
regarding these adjustments must be readily available to support
reporting requirements to DoD(C) and Congress. MAJCOMs must be
assured that all necessary reviews are conducted at lower levels
prior to rendition.
d. Inquiries for status on requests. Base activities
should follow-up with MAJCOM budget fes regarding
SAF/FMBMC
on accounts forwarded to SAF for approval. /rding
provide status information in response to MAJCOM/FOA/DRU budget
office inquiries. Lower levels should work through the
MAJCOM/FOA/DRU for information regarding status. Under no
circumstances will SAF/FMB provide information to contractor
inquiries. Contractor questions should be directed to the
program offices.
e. Recording approved requests in the accounting system.
Amounts approved for upward adjustment to expired, "M" year, or
canceled appropriations must be obligated and liquidated
promptly.
f. Timing of requests for adjustment. Emergency requests
will be worked on a case-by-case basis for valid urgent
requirements. Requests for upward adjustments should routinely
be submitted at least two weeks in advance of the need, to allow
time for staffing. At fiscal year-end all requests should be
submitted not later than the 10 September. Any request after 10
September should be discussed with FMBMC prior to submission.
The time for staffing will increase for adjustments: without
funding sources at the MAJCOM level, of accounts under dispute,
on accounts that SAF/FMB may request SAF General Counsel review,
or on accounts that may have to go to DoD(C) for approval.
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a. Any obligation which was not recorded prior to closure
of the appropriation that funded the obligation must be financed obl with current appropriations and processed
properlyarecorded andithenon
adjustment. An obligation which was
erroneously deobligated by contracting or a designated
contracting representative will be treated as a correctiontif an
administrative error (see paragraph 3g(:2) for
about administrative errors). If the obligation erroneously
deobligated corresponds to an uncanceled "M" account, funds may
provided from valid
ated d corresponds s to a fclthe osedobligation
appropriation,
erroneously deobligated 4a.
follow guidance outlined in paragraph b. Unmatched disbursements for closed accounts. Any
payment which occurred prior to the closure of an appropriation
but was not recorded in the official accounting and finance
records of the accountable station before the date of closure
will be treated as an administrative error. Correction of the
error condition will not constitute a violation
payment the
Antideficiency Act. This includes "bn station ient cycles
year
where the payment is made by paying
prior to account closure but not
DFAS-DE is until the currently next working fiscal year instructions. We will
amend this guidance when the instructions are released.
Accounting
c. Accounting error correction transactions.
error transactions shall not be processed against closed accounts
(see paragraph 3g(3)) for additional information on accounting
errors). Accounting error corrections over $100,000 must be sent
to SAF/FMBMC for approval prior to recording the transaction
against current year appropriations. Follow procedures outlined
in paragraph 6.
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3. ANTIDEFICIENCY ACT VIOLATIONS
In accordance with AFR 177-16, the following are reportable
violations of the Antideficiency Act:
a. Total obligations, including adjustments to obligations,
exceed the original appropriation. This includes any obligation
against an appropriation or fund account in excess of the amount
available in the original appropriation or fund account. This
applies to all appropriation accounts, the obligated balance of
which had not transferred to the "M" account as of 5 November
1990. As a result of the new law, fiscal year identity is
required for all appropriation accounts indefinitely.
b. New obligations or expenditures in canceled accounts.
Included are any obligations or expenditures against an
appropriation account canceled pursuant to sections 1552, 1555,
1557 of Title 31 United States Code.
c. Total obligations, or adjustments to obligations, exceed
the amount apportioned or allotted. Included is any obligation
against any appropriation or fund in excess of the amount
apportioned or allotted to the original appropriation or fund
account.
d. All aspects of the Antideficiency Act are still
applicable to fund limitations. The one percent limitation is a
single, cumulative limit. In no case may more than one percent
of unexpired funds be used to pay any combination of canceled
obligations (Ref 0MB Bulletin No. 91-07).
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rocedures for making a payment
s
i
p
ne
a. This paragraph outl
from a successor "M", expired, or canceled account when the
foreign currency exchange rate is higher/lower than the
established budget rate.
b. Per the AFR 170-8, obligations remained at the budget
rate until payment occurred or lapsed to the successor "M"
rate
account. Obligations should have ;;Mjuaccount.cuThenamounts
when the appropriation lapsed periodically
established in the "M" account should have been p
adjusted when signifnofvanlobligationhstillhingthea"M"
occurred. Upon payment
account, the full amount recorded will be paid from the "M
account until the "M" account is canceled in full on 30 Sep 93.
(1) If the amount paid from the "M" account is less
than the hdifference obligation, of
collects the recorded obligation and the amount paid.
(2) If the amount to be paid exceeds the obligated
amount in the "M" account and there have been
to
insufficient deobligations in the current period
cover the increase, the excess over the obligated
amount is charged to the current year b si
annronriation and applied against the one percent
limitation. go no charge the centrally managed
allotment (CMA) for transactions paid from both the "M"
account and current appropriations.
(3) If the "M" account obligation has been canceled,
the amount due must be paid from a current year
appropriation. Payment at the current year budget rate
should be charged to the basic current year
appropriation. The bettwiseemaden
and the rate current when Pnr?erappropriate foreign currency
charged or credited to the appropriate foreign
charged to the
fluctuation CMA. Apply only
basic appropriation against the one percent limitation.
c. Accounts existing during the five expired years after
the period of availability for obligation ends must retain line
year identity. The appropriation remains
item detail and fiscal Y
available for recording, adjusting and liquidating obligations
properly chargeable to that account. Current procedures for the
use of the foreign currency fluctuation CMA continue in effect.
Once the account cancels, follow procedures as outlined in
paragraph d below.
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d. When expired accounts cancel, the payments related to
the canceled accounts must be paid from current year
appropriations. Canceled obligations involving designated
foreign currencies will be disbursed by charging the basic
appropriation at the current-year budget rate and charging or
budget
crediting the CMA for the difference between the
the current rate. As stated above, only
the basic appropriation impacts on the one percent limitation.
e. - Any proposed upward obligation adjustment to the foreign
currency CMA in excess of $100,000 must be approved by SAF/FMBMC
prior to being recorded in the accounting system. Provide the
same information in the request submissions as defined in
paragraph six of this guidance package.
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10. DOD APPROPRIATIONS
a. Per DoD(C), Services are accountable for ensuring all
budget authority (appropriations) executed through the Air Force,
including non-expenditure transfers (identified by the government
agency appropriation symbol code 97) receive the same scrutiny
against Public Law 101-510 requirements as other Service
appropriations. The appropriations are provided for Air Force
projects and the control of these projects is under the Air Force
umbrella.
b. Apply the procedures regarding upward obligation
adjustments, including SAF/FMBMC review of changes over $100,000,
for the DoD appropriations as specified in this guidance. All
financial managers must ensure that the obligations 9re ordedmdot
not exceed the amounts authorized by law.
be used for valid upward adjustments to the remaining "M"
accounts if "M" account funds are unavailable for obligation.
have adjustments
Valid upward obligation
accounts will also
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i1. OBLIGATING UPWARD A USTMENTS IN-THE ACCOUNTING SYSTEM
a. There are several checks and balances that must be
performed prior to automatically recording the obligation. The
first check is to determine whether there is or is not a valid
obligation. AFR 170-8 requires that only those transactions
which meet specified standards for legitimate obligations are
recorded. The standards are further defined in Section B-
Obligations-General, paragraph 4 of AFR 170-8. The second check
is application of the bona fide need rule. Application of the
rule depends largely on the facts and circumstances of the
specific case. Applying the rule plays a major role in
determining the proper appropriatione fiscal
correct fund citation. Selecting
not and should not be limited to the AFO.
b. Direction for determining the correct fund citation
should also come from a variety of sources such as statutes,
regulations or headquarters direction. This happens to be the
case when there appears to be a lack of funds at the base level
to cover an obligation related to expired or "M" year funds.
MAJCOMs and higher authorities should review the facts and
circumstances of the case to concur with the base level that, in
fact, the suggested fund citation is correct, PRIOR TO RECORDING
the transaction in the accounting system.
c. DoD Accounting Manual 7220.9-M, Chapter 25 (L), states,
all upward obligation adjustments against expired appropriation
accounts (including' P.L. 101-510 defined contract changes) that
exceed $100,000 shall not be accomplished automatically (to
include recording the transaction in the accounting system).
These adjustments must be submitted for approval to SAF/FMBMC
BEFORE recording in the accounting system. In no case may any
upward adjustment greater than $100,000 be placed on the books
without approval by SAF/FMBMC.
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12 , REVIEW OF IOUIDsTED OBLIGATION (ULO) BA LANCES IN THE
EXPI RED YEARS AND "M" ACCOUNT
LiA a ~
a. Periodic verifications of ULO balances must be
accomplished, including a reconciliation of ULO balances to
supporting documents, and a review of documents to ensure each
obligation conforms to valid criteria. Supporting this
requirement, the AFR 170-8 requires that a proper and
unliquidated obligation be deobligated when standards for
recording are no longer met. More explicitly, changes from
Public Law 101-510, year-end certification requirements, and
potential impacts on current year financing all direct more
thorough attention.
b. Now more than ever, a special effort must be placed on
attending to obligations that are unduly outstanding or inactive.
Because of the magnitude of the "M" account audit findings from
AFAA and DoDIG reviews, we suggest that MAJCOMs put special
emphasis on the quarterly review of expired (especially fourth
and fifth years) and "M" account balances.
c. To guarantee a thorough review, ensure field activities
follow guidance as outlined in AFR 177-102 (10-22 and 11-14c) and
AFR 177-120 (2-44) for validity review and update procedures.
Ensure files document the follow-up effort and provide a clear
audit trail supporting adjustments. Provide support to field
activities regarding non-response to follow-up action. Malt
with contracting officers if follo R action to
procurement off receive
attention, Last but not least, place emphasis with field
activities to elevate problems in a timely manner.
d. Negative unliquidated obligations should not normally
exist except when used as progress payments against contracts or
as valid refund receivables.
(1) Progress payments relieve the contractor from
complete financing of contracts for large amounts, or
which extend over a long period of time. Accounting
entries for progress payments consist of posting
disbursements and appropriation refunds.
Disbursements, net of refunds, always represent the
unliquidated balance of the progress payment (reference
AFR 177-102 (17-14)).
(2) Refund receivables represent the second type of
negative ULO. Refunds are a reduction in expenses and
are processed against the appropriation and fiscal year
that the expense was recorded. Refund receivables
(except for central procurement (CP) contracts) are
posted as a reverse accrued expenditures unpaid (AEU)
and CP contracts are recorded as a reverse undelivered
orders outstanding (UOO) ; both creating negative
12-1 ?
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unliquidated obligations (reference AFR 177-101 (21),
AFR 177-102 (27)).
(3) Even in these circumstances, negative balances in
the progress payment account should not exceed the
contract and/or contract line item number (CLIN)
balance. When a negative balance does exceed the
contract/CLIN balance, or in situations where a
negative balance exists outside of valid refund
receivables, exception reports should be generated for
management review of an abnormal situation.
(4) If the negative unliquidated balance was generated
from a by-others cycle related to an erroneous
disbursement from another paying station, follow the
guidelines established in AFR 177-101, 21-3 and 27-48
for recording reversal entries and correcting the
problem with the DLA paying station and/or accountable
station.
(5) The AF will not be allowed to close any account
which reflects a negative cash balance until either
corrections have been made or an offsetting collection
is recorded which will cause the cash balance to become
positive. If during the negative ULO analysis you
determine the negative is a true accounts receivable,
establish a refund receivable and cancel the negative
ULC. Take assertive action to ensure the receivable is
collected promptly. This refund receivable should
remain on the books until such time as a collection is
received. If the collection is received after the
account is closed, the funds should be deposited to
receipt account 3200, "Collections of Receivables from
Cancelled Accounts".
(6) The Department of Defense is responsible for
maintaining records for any open items (obligations or
receivables) for as long as they are outstanding, even
if the account is closed. The fact that the account is
closed does not mean that these items are no longer
valid.
(7) Also, give attention to old refund receivable
accounts. Uncollected receivables will erode available
fund balances required for upward adjustments. Follow
collection action in applicable accounting regulations.
(8) When a negative unliquidated obligation in the
accounting system is determined invalid, report the
release of individual or cumulative negative
unliquidated obligations over $100,000 to SAF/FMBMC.
Use the monthly report in paragraph 16 to accomplish
this task.
_2-2
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(9) Should the release of a negative unliquidated
obligation determined to be invalid cause the
appropriation to be in a negative balance, contact the
MAJCOM immediately for resolution. The MAJCOM/FOA/DRU
must contact SAF/FMBMC upon determining that sufficient
funds are unavailable to correct the deficiency.
e. Your emphasis on the ULO validation process will help
prevent any DoD audit follow up findings free funds ~ for use
va
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13. PRIOR YEAR OBLIGATED DUE-OUTS
a. Based on guidance from DFAS-Denver Center, obligated
due-outs will be charged to a like year appropriation to comply
with legislative requirements to maintain fiscal year identity.
The Project Fund Management Record (PFMR) and Organization Cost
Center Record (OCCR) records will be modified, effective with a
1 April 1992 Standard Base Supply System (SBSS) release, to
identify actual year of obligation for current year plus three
prior fiscal years. Obligations charged to the fourth prior
fiscal year, also known as the fifth year of obligation, will
continue to be identified as "M" year; however, the 1 April 1992
release will produce management notices to assist in identifying
fifth year obligations.
b. At the end of the five expired years, fund balances will
be canceled and withdrawn by the Treasury. Obligated due-outs
will be charged to a like year current appropriation and must not
exceed the one percent limitation. These carry over obligations
must be considered along with other canceled expenses against the
one percent limitation.
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14. REPROGRA1O1ING PROCEDURES
a. The majority of the guidance contained in this paragraph
applies to Air Staff processes and are provided for information
only.
Ab This section
s
to fund
b. Changes in contract scoavailable appropriations
procedures for use of currently
changes in contract scope.
1. Normal applicable reprogramming (DD form 1415)
procedures and thresholds will apply when currently
available appropriations are used to fund changes in
contract scope.
2. Changes funded from currently available
appropriations will be funded from, and reflectred
ram
against, the current corresponding thelprogram,for which
element or program applicable the change is being made.
3. If an applicable corresponding line item no longer
exists in the currently available appropriation for the
program for which the change is being made, a new line
item for the program in question will be created to
reflect the change adjustment. Reprogramming threshold
procedures for this newly created line will be the same
as for the creation of any other new line item.
4. Any line item or program can be the funding source
for changes funded from currently available funds.
However, the funding source line item or program will
be subject to normal reprogramming thresholds.
c. Within-scope contract changes and upward obligation
adjustments for canceled accounts. This section will define the
procedures for using currently available appropriations to fund
upward obligation adjustments and within-scope contract changes
for contracts funded by appropriations that have been closed.
1. The appropriation currently available for the same
purpose shall be charged. Specific limitations are as
follows:
(a) The sum of all such amounts funded from
currently available appropriations shall not
exceed the lower of (1) one percent of the
originally appropriated amount of the current
appropriation being charged or (2) the current
unexpended balance of the closed account
(exception is closed "M" years).
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(b) The unexpended balance is the net of:
(1) the sum of the unobligated balance plus
the unliquidated obligated balance of the
account at the time it was closed, and,
(2) less any and all obligations incurred and
payments made subsequent to the cancellation
of the original account when such obligations
and payments would otherwise have been
properly charged to the appropriation had the
appropriation not been closed.
Normal reprogramming (DD form 1415) procedures and
2.
thresholds will not apply when currently available
appropriations are used to fund obligations or
adjustments to obligations which would otherwise have
been funded from a canceled account before it was
canceled. Charges shall be reflected in a line item on
the Report of Programs, DD form 1416, entitled
"Canceled Account Adjustments."
(a) Within an appropriation, reprogramming
thresholds may be exceeded in currently available ses or nanceithe?CancelednAccount Adjustmentsulineto
finance
item.
(b) If reprogramming thresholds are exceeded for
increases or sources to finance these obligations
or adjustments to obligations, Column K, of the DD
form 1416 amount footnoted to
canceled
threshold
account adjustments.
(c) The Canceled Account Adjustments line item
will be a separate line item or program element
and added as an entry within a single budget
activity.
d. Within-scope contract changes and upward obligation
adjustments using expired year funds. This section discusses the
procedures for using expired year appropriations to fund within-
scope contract changes and upward obligation adjustments. There
has been no requirement to submit programmingeactioonsrfor
expired accounts, and this policy shall
obligation adjustments and within-scope contract changes will be
funded in the appropriation which initially financed the
contract.
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15. 'FE'EL OF CONTROL IN EXPIRED ACCOUNTS
'Reserved for future DoD(C) guidance)
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a. For Monthly Reporting Requirements: Report all within
scope contract change adjustments $100,000 and underotohSAF/FMBMC
not later than the 15th of the month following the
reported. Negative response rdata mononthlwiy
be consolidated with the SAF/FMBMC
contract changes to monitor program, project and activity
The report should be
adjustments as required by P.L. 101-510.
titled "Within Scope Contract Changes Equal to or Less Than
$100, 000 for (month and year), OAC XX". The report must contain
the following information:
1. Amount of the adjustment financed
2. Reason for adjustment (see paragraph 3 of this
guidance for reportable within scope contract
changes)
3. Accounting classification (Line item detail
for all appropriations except O&M. For O&M,
appropriation and fiscal year only.)
4. Funding Source
b. For Fiscal year-End Reporting Requirements: Report
approval of upward obligation adjustments and use uentayyear
appropriations for canceled requirrementsbequal to
reports or le rr SAF/FMBMC
$100,000 for the entire fiscal Y Negative
not later than 15 September each fiscal year-end. reports required. The report should be titled "Fiscal Year-End Rdl 19XX Report of Prior Year ctouor LessAdjustments
$100n000dfor OACaXXa
Current Year Charges)
The report must be in the following format:
FY Type of Transaction
APPN r i
(1) (2 (3)
)
NOTES: 1. Appn: Report requires only totals by appropriation
2. FY: Funding source fiscal year
3. Type of Transaction: Three possible choices:
use of Current Year funds for upward obligation
adjustments against canceled accounts where
disbursement will occur before expiration of the
current year, payments of obligations related to
(1)
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canceled accounts and upward obligations and payments
for uncanceled "M" accounts where insufficient funds
exist in the "M" accounts, (2) use of Expired Year
funds for upward obligation adjustments and within-
scope contract changes, and (3) use of "M" Year funds
for upward obligation adjustments and within-scope
contract changes.
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DEFINITION OF TERMS
a celed a ro riatio An appropriation which is no
C nged
longer available for adjustments or payments. Appropriations are
closed or canceled at the end of the five year expired period.
Contract Change, A change to a contract which requires the
contractor to perform additional
claims, increases under escalation costs
include adjustments to pay
or corrections for administrative or accounting errors.
Cur e t or currently available appropriations An appropriation
ired
which is available for new obligations
appropriationseforrmultxip-year
status. This includes all unexpired
accounts.
Expired appropriation An appropriation which is no longer
new law canceled. The
available for new obligations but
five years.
expired period is extended by the appropriation retains fiscal year
During the expired period, an aintegrity and is available for adjusting and liquidating
obligations, excluding contract changes.
"M" account or years. An appropriation or year corresponding with
the following fiscal years (FY) : one-year appropriations - FY 88
and prior to FY 85; two-year appropriations - FY 87 and prior to FY
84; three-year appropriations - FY 86 and prior to FY 83; and five-
year appropriations - FY 84 wand prior Baccountsased on 101-
510, 30
510, no additional funds
Sept 1990 and all funds currently in the "M" account will be
eliminated by 30 Sept 1993.
U ward obli ation stment or adjust
increase in the originally
the period of availability for new obligations. These adjustments
include claims, award and incentive fees, correction
administrative errors, correction of accounting errors, price
inflation adjustments (economic or escalation price adjustments),
and foreign currency fluctuation charges to name a few.
Unrecorded obligations. obligations which have occurred and are
documented; however, through oversight were not recorded in the
official Air Force accounting and finance records.
Attachment 1
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