CDFM Module 3.1 Fiscal Law
Basic Axiom of Fiscal Law (the premise of fiscal law)
The established rule: Expenditure of public funds is proper only when authorized by Congress, not
that public funds may be expended unless prohibited by Congress.
Common Law
Which law: There is no law that says you can't do it.
Fiscal Law
Which Law: You can only do what the law authorized you to do.
Constitutional Authority: Article 1, section 7,8,9
Provisions of the U.S Constitution that provide the underpinning for the budget & funds control
process, (which Constitutional Authority)
Article 1, Section 7
Empowers the congress to pass bills for the raising of revenue & delineates how bills will pass from
the Congress 2 the resident for signature or veto.
Article 1, Section 8
Empowers Congress to collect taxes.
Article 1, Section 9
Requires appropriations in law before money may be spent from the Treasury.
Principles of Federal Appropriation Law
The most authoritative source of information on the proper use of appropriated funds is a volume
published by the GAO & General Counsel.Red Book, Specific over general appropriations & do not do
indirectly what you cannot do directly.
The Red Book
Contains detailed guidance & numerous cases illustrating proper & improper uses of funds. Available
on web site.
31 USC 1341, 1342, 1517 (Anti Deficiency Act)
Agencies are responsible 4 maintaining systems of accounting, internal control, & administrative
control 2 facilitate effective management of Federal programs to avoid?
Budget & Accounting Act of 1921
Requires President 2 submit annual budget 2 Congress 4 all 3 branches of the federal government,
created budget office 4 the President (OMB), & established the GAO office.
Congressional Budget Act of 1974
Governs the congressional budget process, defines key budget terms that are used in the budget
process, establishes the House & Senate budget committees & the Congressional Budget Office.
, Balanced Budget & Emergency Deficit Control Act of 1985
This law prescribes rules & procedures (sequestration) designed 2 constrain spending & receipts
legislation. Originally it enacted the GRAMM-RUDMAN-HOLLAND ACT. The budget enforcement Act
(BEA) amended it, so it is also known as the BEA.
Sections 13 & 15, 31 USC
These sections prescribe rules & procedures 4 budget execution. The statutory requirements 4 the
use, control & accountability of funds are found here. Many provisions were previously enacted as
section 3679. (ADA)
Impoundment Control Act of 1974
This law prescribes rules & procedures under which the President may withhold appropriated
amounts from obligation. (deferrals & rescissions) OMB A-11 address the requirements of this law.
OMB Circular A-11
Issued pursuant 2 chapters 13 & 15 of USC, Executive Order 11541 of July 1970, The Congressional
Budget, Impoundment Control Act of 1974,and GPRA in Section 200.
Federal Appropriation Law
Congress, under the authority of Article 1 of Constitution, generates revenue & establish taxes.
Authorities under these articles are found in the authorization & appropriation acts passed by
Congress & signed by President. Court decisions & decisions by Comptroller General further amplify
these authorities.
Fiduciary Certifier
Responsiable for the use of approproated funds to the proper Purpose, Time & Amount, and 4 those
US codes pertaining thereto.
Feduciary Responsibility
Conveys a confidence or trust.
Fund Certifying Official
Certifies that the public's funds for which they have been entrusted, certifying that funds are legal for
use under Purpose, Time & Amount restrictions placed by Congress.
ADA Violation
There is no relief from this!
Pecuniary Certifier
Responsible for the accuracy of disbursement of funds. Resp. 4 the repayment of any disbursment not
in accordance with proper Purpose.
Pecuniary Responsibility
Covers the responsibility of physical control of the monies entrusted to the care if an accountable
official of the government.
Basic Axiom of Fiscal Law (the premise of fiscal law)
The established rule: Expenditure of public funds is proper only when authorized by Congress, not
that public funds may be expended unless prohibited by Congress.
Common Law
Which law: There is no law that says you can't do it.
Fiscal Law
Which Law: You can only do what the law authorized you to do.
Constitutional Authority: Article 1, section 7,8,9
Provisions of the U.S Constitution that provide the underpinning for the budget & funds control
process, (which Constitutional Authority)
Article 1, Section 7
Empowers the congress to pass bills for the raising of revenue & delineates how bills will pass from
the Congress 2 the resident for signature or veto.
Article 1, Section 8
Empowers Congress to collect taxes.
Article 1, Section 9
Requires appropriations in law before money may be spent from the Treasury.
Principles of Federal Appropriation Law
The most authoritative source of information on the proper use of appropriated funds is a volume
published by the GAO & General Counsel.Red Book, Specific over general appropriations & do not do
indirectly what you cannot do directly.
The Red Book
Contains detailed guidance & numerous cases illustrating proper & improper uses of funds. Available
on web site.
31 USC 1341, 1342, 1517 (Anti Deficiency Act)
Agencies are responsible 4 maintaining systems of accounting, internal control, & administrative
control 2 facilitate effective management of Federal programs to avoid?
Budget & Accounting Act of 1921
Requires President 2 submit annual budget 2 Congress 4 all 3 branches of the federal government,
created budget office 4 the President (OMB), & established the GAO office.
Congressional Budget Act of 1974
Governs the congressional budget process, defines key budget terms that are used in the budget
process, establishes the House & Senate budget committees & the Congressional Budget Office.
, Balanced Budget & Emergency Deficit Control Act of 1985
This law prescribes rules & procedures (sequestration) designed 2 constrain spending & receipts
legislation. Originally it enacted the GRAMM-RUDMAN-HOLLAND ACT. The budget enforcement Act
(BEA) amended it, so it is also known as the BEA.
Sections 13 & 15, 31 USC
These sections prescribe rules & procedures 4 budget execution. The statutory requirements 4 the
use, control & accountability of funds are found here. Many provisions were previously enacted as
section 3679. (ADA)
Impoundment Control Act of 1974
This law prescribes rules & procedures under which the President may withhold appropriated
amounts from obligation. (deferrals & rescissions) OMB A-11 address the requirements of this law.
OMB Circular A-11
Issued pursuant 2 chapters 13 & 15 of USC, Executive Order 11541 of July 1970, The Congressional
Budget, Impoundment Control Act of 1974,and GPRA in Section 200.
Federal Appropriation Law
Congress, under the authority of Article 1 of Constitution, generates revenue & establish taxes.
Authorities under these articles are found in the authorization & appropriation acts passed by
Congress & signed by President. Court decisions & decisions by Comptroller General further amplify
these authorities.
Fiduciary Certifier
Responsiable for the use of approproated funds to the proper Purpose, Time & Amount, and 4 those
US codes pertaining thereto.
Feduciary Responsibility
Conveys a confidence or trust.
Fund Certifying Official
Certifies that the public's funds for which they have been entrusted, certifying that funds are legal for
use under Purpose, Time & Amount restrictions placed by Congress.
ADA Violation
There is no relief from this!
Pecuniary Certifier
Responsible for the accuracy of disbursement of funds. Resp. 4 the repayment of any disbursment not
in accordance with proper Purpose.
Pecuniary Responsibility
Covers the responsibility of physical control of the monies entrusted to the care if an accountable
official of the government.
