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ADA Case Studies

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Welcome to

Pentagon Infallibility

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A FISCAL "PHILOSOPHY"THE SUPREME COURT

"The established rule is that theexpenditure of public funds is proper

only when authorized by Congress, NOTthat public funds may be expended unless

prohibited by Congress."

United States v. MacCollom,

426 U.S. 317 (1976)

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FISCAL

CONTROLS

PURPOSE TIME

AMOUNT

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FISCAL

CONTROLS

P T

A

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FISCAL

CONTROLS

COLOR YEAR

ACCOUNT

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FISCAL

CONTROLS

C Y

A

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Early Detection / Early Correction!

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Antideficiency Act

(ADA)

31 U.S.C. 1341 Make or authorize ob or exp in excessof amount legally available

Ob or exp in advance of

31 U.S.C. 1342 Voluntary Services

Personal Services

31 U.S.C. 1517 In excess of formal subdivision In excess of amounts permitted by

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Antideficiency Act

(ADA)

Purpose, Time,and Amountviolations

Duty to correct If cannotcorrect, a legal

deficiency

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3OCT95/ellcessor/k-669

ANTIDEFICIENCY ACT

Means of EnforcementFlash Report

Preliminary Investigation

Formal Investigation

Report thru OMB to POTUS andCongress

DoD FMR,Volume 14

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Antideficiency Act

(ADA) Violations

Knowing andwillful = criminal

$5,000 fine +two years inprison

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Antideficiency Act

(ADA) ViolationsOther violators

Oral admonitionWritten reprimandSuspension

Withdraw warrantTerminate

employment

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ItstheLaw

ItstheLaw

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CASE STUDIES(Real cases!)

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HQ, AMC General Rules

Service Contract (OMA)

GSA $41M then, $100M now

Personal Property (OPA) Construction (MCA)

Problems Purpose Violation Uncorrectable

Purchased with

BRAC (~$20M)

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Relocatable Buildings

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Tactical Shelters at

Fort Huachuca

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Tactical Shelters at

Fort Huachuca

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Detainee Facility at

Camp Bucca LOGistics Civil Augmentation Program(LOGCAP)

Service Contract -- OMA $17 million (2 phases complete) JAG MAJ caught phase 3

Construction -- MCA

Problems Pure construction, not a service OMA funded No CCA, no MCA, no authorization ADA violation

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Detainee Facility at

Camp BuccaDoDIG ADA reportnames two GOs

Retroactive CCAaction failed Retroactive

10 U.S.C. 2808action pending ADA violation (31

U.S.C. 1517)

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Government Purchase

Card (GPC)Two employees wentshopping

Gift cards, clothing,electronics, music CDs,lingerie, appliances, cellphones, jewelry Certifying officers

negligent Personal expenses, so noappropriation legallyavailable ADA violation

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Unauthorized Item

1st Cavalry Div unit patch Left shoulder (assignment)

Right shoulder (SSI-FWTS) Ordered 60,000 patches (at$90,000) with horses headreversed no retreat!

G-1 deniedNecessary and Incident? No ADA violation

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TIME

Offload to DOI GovWorks FY04 MIPR, FY04 OMA

Mod in May 05 (for HornedOwl Program) funded withexcess FY04 OMA 31 U.S.C. 1502(a)

Bona Fide Need Rule FY05 OMA available; three-part test for correctability metNo ADA violation

http://www.flickr.com/photos/37996634820@N01/2959090/

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AMOUNT

Reserve Personnel,Army (RPA) in 2005

Hurricanes Katrina &Rita, increases inenlistments & bonuses,mistake in MERHCF

$59M shortfall Transfers from twoother appropriations ADA violation

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In Advance Of

IT: Storage AreaNetwork

Multi-year lease ofhardware + software Three years $3.4M total, but

$100K in first year(down payment) Contracting inadvance of an

appropriation!

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Personal Services

General and TechnicalAdministrative Support

SOW says no personalservices FAR 37.104: on site, equipfurnished by Govt, servicesapplied to integral effort, need >

one year, Govt direction orsupervision Like more employees 31 U.S.C. 1342

Uncorrectable ADA violation

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RECOUPMENT

Government Purchase Card 51 polo shirts for team membersas major milestone reward

33 polo shirts for uniformity anduniqueness while staffing displayat Quad A (a NFE) Clothing is a personal expense Purpose violation ADA case

$1,934.60 erroneous paymentrecovered from pay! Recoupment applied to prior-year RDT&E account ADA violation avoided

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