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Warner Robins Air Logistics Center
People First…Mission Always
Propriety of Funds/Fiscal Law
1
Warner Robins Air Logistics Center
People First…Mission Always 2
General Limitations
Purpose
Time
Amount
Warner Robins Air Logistics Center
People First…Mission Always 3
Purpose
Article 1 of the Constitution grants Congress the power of the purse
• “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law…”
The Purpose Statute (31 USC section1301)• “Appropriations shall be applied only for the objects for
which the appropriations were made except as otherwise provided by law.”
Comptroller General Decisions• Principles of Federal Appropriations Law “The Red
Books”• www.GAO.gov
Warner Robins Air Logistics Center
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Three-Part Test For Purpose
34 Comp. Gen. 195 (1954), “Necessary Expense Rule”The expenditure of an appropriation must be for a
particular statutory purpose, or necessary and incident to proper execution of the general purpose of the appropriation
The expenditure must not be prohibited by lawThe expenditure must not be otherwise provided for; it
must not fall within the scope of some other appropriation
Warner Robins Air Logistics Center
People First…Mission Always 5
Time
The Time Rule• An appropriation is available only for a certain time, after
which the authority to obligate expires“Bona Fide Need Rule” (31 USC section 1502)
• “The balance of a fixed-term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period.”
National Defense Authorization Act for FY1998 (10 USC section 2410a)
• Allowed DoD agencies to obligate funds in the current year to finance any severable service contract with a period of performance that does not exceed one year
Warner Robins Air Logistics Center
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Time
Maintenance & Repair Contracts• The government may obligate current funds for one-time
maintenance and repair contracts near the end of the fiscal year, even if performance does not begin until he next fiscal year
• Two conditions apply:–The requirement must represent a bona fide need of the current fiscal year
–The contract should contain a specific provision requiring that the work actually start on or before January 1 of the following fiscal year
Warner Robins Air Logistics Center
People First…Mission Always 7
Amount
Congressional Power of the Purse• Congress determines how much the government may
spend through the enactment of:–Appropriations
• Which establish ceilings on spending, or –Earmarking
• Which sets aside a part of a more general lump-sum appropriation for a particular purpose, as either a maximum, minimum, or both
• Congressional language–“not to exceed”–“shall be available only”–“not less than”–“shall be available exclusively”
Warner Robins Air Logistics Center
People First…Mission Always 8
Amount
Anti-Deficiency Act (31 USC sections 1341, 1342, & 1517)
• An officer or employee of the United States may not:– make or authorize an expenditure or obligation that exceeds an appropriation or an apportionment
–make or authorize an expenditure or obligation in advance of an appropriation, unless authorized by law
–accept voluntary services except to save human life or prevent property damage
–make or authorize an expenditure or obligation that exceeds an apportionment or reapportionment, or in excess of the amount specified in a formal subdivision of funds in accordance with agency regulations
Warner Robins Air Logistics Center
People First…Mission Always 9
Colors of Money
Warner Robins Air Logistics Center
People First…Mission Always 10
Types of Obligation Authority
Two different types• Appropriated
–Central Procurement–Research, Development, Test & Evaluation–Operations & Maintenance
• Working Capital Funds – “Revolving Funds”–Supply Management Activity Group (SMAG)
• Materiel Support Division (MSD)
»Buy, Repair & Operating• General Support Division (GSD)
–Depot Maintenance Activity Group (DMAG)–Transportation Working Capital Fund (TWCF)
Warner Robins Air Logistics Center
People First…Mission Always
Types of Air Force Appropriations
11
APPROPRIATION TITLE FUND CODE AVAILABILITY
3010 Aircraft Procurement 11 3
3011 Munitions Procurement
H8 3
3020 Missile Procurement 15 3
3080 Other Procurement 17 3
3300 Military Construction 25 5
3400 Operations & Maintenance
30 1
3500 Military Personnel 32 1
3600 RDT&E 29 2
3740 AFRC O&M 54 1
3840 ANG O&M 58 1
4930 WCF Various (64, 6E, 6P) X
Warner Robins Air Logistics Center
People First…Mission Always
Availability of Appropriations During FY10
12
1 Year 3400
2 Year 3600
5 Year 3300
3 Year3010, 3020
3080
10 09 08 07 06 01 0004 03 0205
Current/Active: Available for new obligations
Expired: Available to adjust obligations already incurred
Canceled: Accounts canceled. Obligations or adjustments that would otherwise be chargeable to these
years must be charged to active funds
Warner Robins Air Logistics Center
People First…Mission Always 13
3010Budget Program Activity Codes
(BPACs)
100000 – Aircraft Weapon System110000 – Modifications120000 – Aircraft Common Support Equipment *130000 – Post Production Charges150000 – Aircraft Replenishment Spares **160000 – Aircraft Initial Spares & Repair Parts ***190000 – Miscellaneous Production Charges
* BP12 requirements costing less than $250K per unit were transferred to the O&M appropriation in FY06 (Will be revised in FY11)
** BP15 requirements are now submitted through the MSD Initial Spares Budget*** There are two types of BP16, Reimbursable & Exempt
Warner Robins Air Logistics Center
People First…Mission Always 14
3011Budget Program Activity Codes
(BPACs)
350000 – Procurement of Ammunition, Air Force360000 - Reimbursement
Warner Robins Air Logistics Center
People First…Mission Always 15
3020Budget Program Activity Codes
(BPACs)
200000 – Missile Weapon System210000 – Modification220000 – Missile Support Equipment230000 – Space Programs240000 – Missile Industrial Responsiveness250000 – Missile Replenishment Spares & Repair Parts260000 – Missile Initial Spares & Repair Parts280000 – Procurement Other Than Air Force290000 – Other Support
Warner Robins Air Logistics Center
People First…Mission Always 16
3080Budget Program Activity Codes
(BPACs)
820000 – Vehicular Equipment830000 – Electronics & Telecommunications Equipment840000 – Other Base Maintenance & Support Equipment850000 – Air Force Forest Management Program860000 – Spares & Repair Parts870000 – Procurement Other Than Air Force
Warner Robins Air Logistics Center
People First…Mission Always 17
3600Budget Program Activity Codes
(BPACs)
610000 – Basic Research620000 – Applied Research630000 – Advanced Technology Development640000 – Demonstration & Validation650000 – Engineering & Manufacturing Development660000 – Management & Support670000 – Operational System Development690000 – Reimbursement Transactions
Warner Robins Air Logistics Center
People First…Mission Always 18
3400O&M Coding Structure
Budget Activity (BA)• Replaced Major Force Programs• Broad categories grouping similar capabilities & missions
Program Element Code (PEC)• Each BA is subdivided into more specific mission
breakdowns called Program ElementsDoD Element of Expense (DODEE)
• Groups specific Air Force Element of Expense Investment Codes
Element of Expense & Investment Code (EEIC)• Common element to base level activities• Used to identify the type of resources consumed
Warner Robins Air Logistics Center
People First…Mission Always 19
3400O&M Budget Activities
BA 01 – Operating Forces
3 Mission Areas• Air Operations: Overall support for all fighter/bomber forces,
intercontinental ballistic missiles, air launched strategic/tactical missiles, support ranges, command/base support personnel/activities
• Combat Related Operations: Support element for combat forces and employs a wide range of assets to accomplish many missions
• Space Operations: Assets/force structure to provide the capability to launch payloads into earth orbits, communicate with space based platforms, & worldwide network of sites/terminals to relay data gathered by satellite constellations
Warner Robins Air Logistics Center
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3400O&M Budget Activities
BA 02 – Mobilization
6 Mission Areas• Airlift Operations: Supports day to day activities such as
tactical airlift, air refueling, operational airlift for movement of personnel/cargo
• Airlift Operations Command: Supports HQ Air Mobility Command including administrative support, training & preparing airlift forces to meet wartime objectives
• Control, Communications & Intelligence: Provides the capability to direct/control airlift/aircrews for worldwide deployment, provides intransit visibility of cargo/passengers
Warner Robins Air Logistics Center
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3400O&M Budget Activities
BA 02 – Mobilization
6 Mission Areas• Mobilization Preparedness: Provides capability to sustain crisis
situations through the provision/prepositioning of war readiness materials, includes manpower, support equipment, facilities, supports medical wartime mission
• Payment to Transportation Business Area: Funding to meet transportation costs not covered in rate structure
• Base Support: Provides personnel support functions, base infrastructure, other essential needs to sustain mission capability, quality of life, preservation of physical plant structure
Warner Robins Air Logistics Center
People First…Mission Always 22
3400O&M Budget Activities
BA 03 – Training & Recruiting
3 Mission Areas• Accession Training: Produces enlisted/officer personnel
needed to meet total force requirements, provides a military indoctrination program to facilitate a smooth transition from civilian life to military environment
• Basic Skill & Advanced Training: Provides training & education essential to operate, maintain, manage complex Air Force weapon systems/support structure
• Recruiting & Other Training & Education: Supports personnel acquisition operations, voluntary education programs & Air Force Junior Reserve Officer Training Corps (ROTC)
Warner Robins Air Logistics Center
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3400O&M Budget Activities
BA 04 – Administration & Servicewide Activities
4 Mission Areas• Logistics Operations: Includes depot maintenance, engineering
& installation support, acquisition & combat support, personnel support
• Servicewide Activities: Ensures combat capability & maintain readiness, support to units/personnel in diverse geographic locations
• Security Program: Supports Air Force Office of Special Investigations & Classified Programs
• Support to other Nations: Includes security assistance, humanitarian assistance, participation in international & multinational activities, NATO, etc.
Warner Robins Air Logistics Center
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Centrally Managed Programs
Managed by the Centralized Asset Management (CAM) Office (AFMC/FMB & A4F)
• Depot Purchased Equipment Maintenance (DPEM)• Contractor Logistics Support (CLS)• Sustaining Engineering (SE)• Technical Orders• Support Equipment (with the exception of Vehicles)
CAM Process Guide
Warner Robins Air Logistics Center
People First…Mission Always 25
Depot Purchased Equipment Maintenance
DPEM Process Guide, Chapter 92 AFMC Financial Management Reference (FMR) Handbook
DPEM buys:• Program Depot Maintenance (PDM) aircraft & missiles• Unprogrammed work (107 requests)• Engine overhauls and 2LM• Depot Field Team (DFT) & Contract Field Team (CFT)• Software Maintenance (Process Guide, Chapter 97 AFMC
FMR Handbook)• Other Major End Items (OMEI)• Area/Base/Maintenance (ABM)• Exchangeables (Stock Fund Exempt)• Storage (AMARC & other sources)
Warner Robins Air Logistics Center
People First…Mission Always 26
Contractor Logistics Support (EEIC 578)
CLS Process Guide, Chapter 101 AFMC FMR HandbookUses:
• O&M tasks normally performed by an organic support activity for a system, equipment, or item for extended periods of time or for the life of the system, to include the following logistics support elements:
–Item Management–Configuration Management–Data Management–Supply & Distribution–Repair & Depot Maintenance–Operating Command Organizational Maintenance–Other maintenance levels as negotiated
CLS can range from a single logistics support element to all logistics support elements
Warner Robins Air Logistics Center
People First…Mission Always 27
Sustaining Engineering (EEIC 583)
SE Process Guide, Chapter 96 AFMC FMR HandbookEngineering effort required to define the problem &
identify the corrective actionUses:
• Aircraft Structural Integrity Program (ASIP)• Mishap/Safety Investigations• Failure Analysis• Resolution of deficiencies• Feasibility studies
Does not pay for developmental engineering
Warner Robins Air Logistics Center
People First…Mission Always 28
Technical Data Sustainment (EEIC 594)
Technical Order (T.O.) Process Guide, Chapter 85 AFMC FMR Handbook
Uses:• Sustainment of Tech Data• Digitization of Tech Data• Viewing Equipment to use data digitally
Does not pay for Tech Data:• During program acquisition• Related to modifications• On CLS programs
Does not pay for AFMC management costs
Warner Robins Air Logistics Center
People First…Mission Always 29
4930 Industrial FundCost Authority
Managed by AFMC• Allocated to the ALCs• Two different types
–Depot Maintenance Activity Group (DMAG)–Supply Management Activity Group (SMAG)
• Materiel Support Division (MSD)• General Support Division (GSD)
»Provided to the MAJCOMs »MAJCOMs issue to their units
Managed by USTRANSCOM & AMC• Transportation Working Capital Fund (TWCF)
Warner Robins Air Logistics Center
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How A Revolving Fund Works
DIRECT APPROPRIATIONDIRECT APPROPRIATION
CREATES OBLIGATIONCREATES OBLIGATIONAUTHORITY TO PROVIDEAUTHORITY TO PROVIDE
PAYMENTS TO:PAYMENTS TO:
DEPOT OR SUPPLIER—FORDEPOT OR SUPPLIER—FORPRODUCTION, MAINTENANCE ORPRODUCTION, MAINTENANCE OR
PURCHASE OF:PURCHASE OF:
MAINTENANCE OR INVENTORYMAINTENANCE OR INVENTORY— — AT BASES & DEPOTS, WHO ISSUEAT BASES & DEPOTS, WHO ISSUE
ITEMS OR PROVIDE SERVICE TO:ITEMS OR PROVIDE SERVICE TO:
CUSTOMERS—WHO PAYCUSTOMERS—WHO PAYFOR INVENTORY OR MAINTENANCE FOR INVENTORY OR MAINTENANCE
WITH O&M $, PLUS:WITH O&M $, PLUS:
SURCHARGES—TOSURCHARGES—TOFINANCE PURCHASE OF FINANCE PURCHASE OF REPLACEMENT ITEMS REPLACEMENT ITEMS
& COVER OVERHEAD WHICH:& COVER OVERHEAD WHICH: