Fiscal Law
1. Body of law governing use of federal funds: Fiscal Law
2. 1 October 30 Septemb:eF r iscal Year
3. Most appropriations available for obligation for limited time period Funds not
obligated in timely manner generally expire: Period of Availability
4. Transaction legally binding the government to make payment E.g.,
place an order, award a contract, receive services: Obligation
5. Federal law provides to incur obligations up to specified amount: Budget
Authority
6. Authorizes programs, but doesn't provide obligation authority E.g.,
end strength; DoD FM Certification Program; government
lodging program (i.e., Integrated Lodging Program): National Defense Autho- rization
Act (NDAA)
7. Statutory authorization "to incur obligations and make payments out of the
Treasury for specified purposes: Appropriation Act
8. In the absence of a regular appropriations act provides budget
authority to continue operations: Continuing Resolution Authority
9. "The established rule is that the expenditure of public funds
is proper only when authorized by Congress, not
that public funds may be expended unless prohibited by Congress.
United States v. MacCollom, 426
U.S. 317, 321 (1976)L
Governed by:
• The U.S. Constitution
• Legislative Authorization and Appropriations Acts
• Judicial Court Rulings and Comptroller General decisions: Affirmative Author- ity
10. "Appropriations shall be applied only to the objects for
which the appropriations were made except as otherwise
provided by law."
31 U.S.C. 1301(a)
Three part expenditure test ...
Must be for a statutory purpose or necessary/ incident to
the general purpose of the appropriation Not prohibited by
law
Not otherwise provided for in another appropriation: Purpose
11. Necessary/incident to general purpose of the
appropriation...
• Congress can't list everything....so agencies have
reasonable discretion...
1/4
1. Body of law governing use of federal funds: Fiscal Law
2. 1 October 30 Septemb:eF r iscal Year
3. Most appropriations available for obligation for limited time period Funds not
obligated in timely manner generally expire: Period of Availability
4. Transaction legally binding the government to make payment E.g.,
place an order, award a contract, receive services: Obligation
5. Federal law provides to incur obligations up to specified amount: Budget
Authority
6. Authorizes programs, but doesn't provide obligation authority E.g.,
end strength; DoD FM Certification Program; government
lodging program (i.e., Integrated Lodging Program): National Defense Autho- rization
Act (NDAA)
7. Statutory authorization "to incur obligations and make payments out of the
Treasury for specified purposes: Appropriation Act
8. In the absence of a regular appropriations act provides budget
authority to continue operations: Continuing Resolution Authority
9. "The established rule is that the expenditure of public funds
is proper only when authorized by Congress, not
that public funds may be expended unless prohibited by Congress.
United States v. MacCollom, 426
U.S. 317, 321 (1976)L
Governed by:
• The U.S. Constitution
• Legislative Authorization and Appropriations Acts
• Judicial Court Rulings and Comptroller General decisions: Affirmative Author- ity
10. "Appropriations shall be applied only to the objects for
which the appropriations were made except as otherwise
provided by law."
31 U.S.C. 1301(a)
Three part expenditure test ...
Must be for a statutory purpose or necessary/ incident to
the general purpose of the appropriation Not prohibited by
law
Not otherwise provided for in another appropriation: Purpose
11. Necessary/incident to general purpose of the
appropriation...
• Congress can't list everything....so agencies have
reasonable discretion...
1/4
