DOE O 2200.5B Chg 4, Fund Accounting

DOE 2200.56 e 6-8-92 DOE 2200.5B, FUND ACCOUNTING This page must be kept with DOE 2200.5B, FUND ACCOUNTING. The subject directive has been revised to reflect organizational title, routing symbol, and other editorial revisions required by SEN-6. No substantive changes have been made. . . U.S. Department of Energy Washington, D.C, SUBJECT: FUND ACCOUNTING ORDER E G-8-92 1. ● ✎ 2. 3* 4. 5. 6. . ● 7. PURPOSE. To provide Department of Energy (DOE) accounting practices, policies, and procedures related to administrative control of funds: accounting for appropriations; accounting for other funds to include special funds, trust funds, deposit funds, and revel ving funds; and accounting for obligations. ~TIO!t. DOE 2200.5A, FUND ACCOUNTING, of 12-31-91. XQIK. The provisions of this Order apply to all Departmental elements and integrated contractors performing work for the Department as provided by law and/or contract and as implementedby the appropriate contracting officer. ~. The Bonneville Power Administration is governed by the provisions of the Government Corporation Control Act and, as such, operates in accordance with generally accepted accounting principles issued by the Financial Accounting Standards Board. The Bonneville Power Admini stration, in following generally accepted accounting principles and meeting legislative requirements, will deviate from the provisions of this Order from time totime. ~FFREw. DOE 2200.4, ACCOUNTING OVERVIEW, Attachment, provides aconsol - idatedl istingof authori tative reference sources for all subject matter contained in the DOE accounting directives (DOE 2200 series). ~. a. To provide asystemof admini strative control of funds to guard against the misuse or overobligation of funds as required by Congress, the Officeof Management and Budget, and the Department; b. To ensure that appropriated funds are properly recorded and accounted for and to ensure that all obligations are properly authorized and accounted for ina timely manner: and c. To provide the overall guidance for the financial management of reimbursable work throughout the Department. J)FFINU. DOE 2200.4, Attachment, provides a consolidated glossary of financial terms used in the accounting directives. In some instances a term maybe defined within the textof an Orderwhere its use is limited to the immediate text. DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer DOE 2200.5B 6-8-92 8. RE$PONSIBILITIES. DOE 2200.4, Chapter III, contains the responsibilities for each accounting directive. BY ORDER OF THE SECRETARY OF ENERGY: @ DONALD W. PEARMAN, JR. Acting Director A t ” Administration and Human Resource Management 2 6-8-92 DOE2200.5B ● FOFcoJJTENT~” CMPTFR I - ADMIJLISTRATIYF CONTROI OF FUNDS 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General Requirements for Fund Control System . . . . . . . . . . . . . . . . $ Budgetary Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. Management of Budgetary Resources . . . . . . . . . . . . . . . . . . . (1) Apportionments . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Allotments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

b. Types ofBudgetary Resources . . . . . . . . . . . . . . . . . . . . . . (1) Direct Obligational Authority . . . . . . . . . . . . . . . . . . (2) Reimbursable e Obligational Authority . . . . . . . . . . . . . . 4. Fund Distribution and Withdrawal . . . . . . . . . . . . . . . . . . . . . . . a. Advice of Allotments . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Direct Obligation Authority Allotments . . . . . . . . . . . . . (2) Reimbursabl eObligation Authority Allotments . . . . . . . . . b. Approved Funding Programs . . . . . . . . . . . . . . . . . . . . . . . . c,. Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Withdrawal sof Funds . . . . . . . . . . . . . . . . . . . . . . . . (2) Recovery of Prior-Year Obligations . . . . . . . . . . . . . . . . (3) Withdrawal of Direct Loan and Loan Guarantee Commitment Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Deferral s and Rescissions . . . . . . . . . . . . . . . . . . . . . 5. Execution of Allotments and Approved Funding Programs . . . . . . . . . . Commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Obligation Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . Potential Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . :: Expired Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Control Over Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Authorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ;: Certification of Fund Availability . . . . . . . . . . . . . . . . . . . c. Documents, Procedures, and Flows . . . . . . . . . . . . . . . . . . . . (1) Documents (2) Procedures aOn~~l~&”:: ::::::::::::::: ::::::: d. Reconciliations and Verifications . . . . . . . . . . . . . . . . . . . 7. Prohibited Actions, Personal Responsibility, and Penalties . . . . . . . a. Prohibited Actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Violations of the Anti -Deficiency Act (Legal Limitations) . (2) Violations of Limitations (Administrative Violations) . . . b. Personal Responsibi lity for Violations . . . . . . . . . . . . . . . . c* Penalties . . . . . . . . . . , , . . . . . . . . . . . . . . . . . . . . . . 8, Reporting of Violations Within the Department : . . . . . . . . . . . . . . a. Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . I-1 1-1 I-1 I-1 I-2 I-2 I-2 I-2 I-3 I-3 I-4 I-5 I-6 I-6 I-6 I-6 I-6 I-7 I-7 I-7 I-7 I-7 I-7 I-7 I-8 I-8 I-8 I-8 I-9 I-9 1-10 1-10 1-10 I - l o 1-10 1-11 1-11 1-12 1-13 1-14 1-16 1-16 i DOE2200.5B 6-8-92 9. 10. b. Information To Be Reported . . . . . . . . . . . . . . . . . . . . . . . . (1) Actual or Apparent Legal Violations . . . . . . . . . . . . . . . (2) Actual or Apparent Admln~strative Lfmitatlon Violations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Actfons Required After Violations Are Reported . . . . . . . . . . . . :: Apparent Violations Caused by Accounting Errors . . . . . . . . . . . e. Apparent Violations Caused by Inappropriate Withdrawal of Funds . Reporting of Violations to the President and Congress . . . . . . . . . . Reports tothePresident . . . . . . . . . . . . . . . . . . . . . . . . . :: ReportstoCongress . . . . . . . . . . . . . . . . . . . . . . . . . . . . c. Additional Reporting Requirements . . . . . . . . . . . . . . . . . . . d. TimingofReports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Internal Control Considerations . . . . . . . . . . . . . . . . . . . . . . .

Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K Control Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTFR II - ACCOUNTING FOR APPROPRMIUMAW OTHER FUNQS 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Background . . . . . . . . . . . . . . . . . . . . . , . . . . . . . . . . . :: Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Policy . . . . . . . . . . . ● . . . . ● . . . . . . . . . . . . . . . . . . . 2. ;;erview of the Appropriation Warrant, Apportionment, Approved Funding Program. and Allotment Process . . . . . . . . . . . . . . . . . . . Appropriation Warrant . . . . . . . . . . . . . . . . . . . . . . . . . . :: Apportionment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Approved Funding Program and Allotment Process . . . . . . . . . . . . 3. ;;countSymbols . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a. Appropriation or Expenditure Account Symbols . . . . . . . . . . . . . (1) FixedAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) No-YearAppropriation . . . . . . . . . . . . . . . . . . . . . . . (3) MAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b. Appropriation FundAccountType . . . . . . . . . . . . . . . . . . . . . c. ReceiptAccountSymbols . . . . . . . . . . . . . . . . . . . . . . . . . 4. TypesofAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General Fund Receipt Accounts . . . . . . . . . . . . . . . . . . . . . . ;: General Fund Expenditure Accounts . . . . . . . . . . . . . . . . . . . 5. Transactions Between Appropri ationsand Between Fund Accounts . . . . . a. NonexpenditureTransfers . . . . . . . . . . . . . . . . . . . . . . . . (1) Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) TransferAppropriation Accounts . . . . . . . . . . . . . . . . . b. ExpenditureTransfers . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2) Types of Expenditure Transfers . . . . . . . . . . . . . . . . . . (3) Processing Expenditure Transfers Within an Agency LocatfonCode . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Initiating Expenditure Transfers or Adjustments Between Agencies Within the Department of the Treasury Disbursing Area . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-16 1-16 1-18 1-18 I-lB 1-18 1-19 1-19 1-19 1-20 1-20 1-20 1-20 1-21 11-1 11-1 II-1 II-1 II-1 II-1 II-2 II-2 II-3 II-3 II-3 II-3 II-3 11-3 II-4 II-4 II-4 II-4 II-4 II-5 II-5 II-7 II-9 II-9 II-9 II-9 11-10 i i 6-8-92 DOE2200.5B . . . (5) Receiving an Expenditure Transfer or Adjustmenton Standard Form 1081. “Voucher and Scheduleof Withdrawal and Credits” . . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● (6) Expenditure Transfers Requi ring Payment by Check Outside the Department of the Treasury Disbursing Area . . . . . . . . 6. Other Types of Accounts and Their Accounting Treatments . . . . . . . . . a. Special Fund and Trust Fund Accounts . . . . . . . . . . . . . . . . . . (1) Special Fund Receipt Accounts . . . . . . . . . . . . . . . . . . (2) Trust Fund ReceiptAccounts . . . . . . . . . . . . . . . . . . . . (3) Special Fund and Trust Fund Expenditure Accounts . . . . . . . (4) Accounting Treatment.. . . . . . . . . . . . . . . . . . . . . . .

b. Consolidated Working Fund Accounts . . . . . . . . . . . . . . . . . . . c. Management Fund Accounts . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● d. Revolving-FundAccounts . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● e. Deposit Funds . . . . . . . . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● “ (1) Types ofDepositFunds . . . . . . . . . . . . . . . . . . . . . . . (2) Disposition . . . . . . . . . . . . . . . . ... ... ...-S0. (3) Review . . . . . . . . 7. Control son Availa~ii;t; ~+~~;~o;r~~t;~n~~~o~n~~ : : : : . . . ● ● ● ● ● a. b. c. d. e. f. 9* h. ;: ;: Definition . . . . . . . ;; .; . . . . . . . . . . . . . . . . . . ● . . . (1) Adjustments to Expired Accounts . . . . . . . . . . . . . . . . . (2) ClosedAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) ContractChange . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Closed Account Transactions . . . . . . . . . . . . . . . . . . . (5) Prior-Year Deobli9ations . . . . . . . . . . . . . . . . . . . . . (6) UnexpiredAccounts . . . . . . . . . . . . . . . . . . . . . . . . . (7) ExpiredAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . (8) FixedAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) Unrecorded Obligations . . . . . . . . . . . . . . . . . . . . . . Revised Duration of Expired Accounts . . . . . . . . . . . . . . . . . . Transition Period for Existing MAccount Balances . . . . . . . . . . Approving and Reporting Obligation Adjustments to Expired.Closed. andMAccounts . . . . . . . . . . . . . . . . . . . . . Cancellation of 5-Year-01 dM Account Obligations . . . . . . . . . . Alternatives for Payment of Old Obligations . . . . . . . . . . . . . Application of the l-Percent Limitation . . . . . . . . . . . . . . . . Merged Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yearend Reporting Requirements . . . . . . . . . . . . . . . . . . . . . Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Apportionment Procedures . . . . . . . . . . . . . . . . . . . . . . . . Anti -Deficiency Act Violations . . . . . . . . . . . . . . . . . . . . . I I - l o 11-10 11-10 11-10 11-10 11-11 11-11 11-11 11-11 11-12 11-12 11-12 11-13 11-13 11-13 11-13 11-13 11-13 11-13 11-13 11-14 11-14 11-14 11-14 11-15 11-15 11-15 11-16 11-16 11-17 11-17 11-18 11-18 11-18 11-18 11-19 11-19 GATIONS 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-1 Background . . . . . . . . . . . . . . . . . ............==. ● 111-1 :: Applicability . . . . . . . . . . . . . . . . . .........6.0.. 111-1 c. Policy . .0 . . . . . . ● . .0.... .*** ● * ● * ● * ● * ● * ● **” “ III-1 Statutory Requirements . . . . . . . . . . . . . . . . ... .=*. ””00” 111-2 :: Reservation of Funds . . . . . . . . . . . . . . . .. ... .0000 oocoo 111-3 i i i DOE2200.5B 6-8-92 4. Appropriation Limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . a. Annual Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Del i very of Materials Beyond the Fiscal Year . . . . . . . . . . (2) Support Service Contracts . . . . . . . . . . . . . . . . . . . . . (3) Replacement Contracts . . . . . . . . . . . . . . . . . . . . . . . b. Multiple-Year Appropriations , . . . . . . . . . . . . . . . . . . . . . c. No-Year Appropriations . . . . . . . . . . . . . . . , . . . . . . . . . . 5. Types of Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a.

b. ;: e. f. 9. h. :: k. 1. m. n. o. Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Integrated Contracts . . . . . . . . . . . . . . . . . . . . . . . . (2) Firm Fixed Price Contracts . . . . . . . . . . . . . . . . . . . . (3) Fixed Price Contracts with Escalation. Price Redetermination, or Incentive Provisions (4) Cost Reimbursement Contracts and Time and M;t&”i;l”C~;t;;c~s” (5) Indefinite-Del ivery-Type Contracts . . . . . . . . . . . . . . . (6) Contracts Under Specific Statutory Authority . . . . . . . . . (7) Other Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Purchase Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Employ ees’ Salaries . . . . . . . . . . . . . . . . . . . . . . . . (2) Other Charges Based on Salaries Travel . . . . . . . . . . . . . . . . . . . ~ : : : : : : : : : : : : : : : : Transportation of Other Goods . . . . . . . . . . . . . . . . . . . . . . Communicate ons and Public Utilities . . . . . . . . . . . . . . . . . . Agreements with Other Federal Agencies . . . . . . . . . . . . . . . . (1) DOEas Ordering Agency (Funds Out) . . . . . . . . . . . . . . . . (2) DOEas Performing Agency (Funds In) . . . . . . . . . . . . . . . Interagency Orders Required by Law . . . . . . . . . . . . . . . . . . . Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Tort Claims (2) Contractor Cl;i\; ~e};r~~~e ”B;a”r~;f” C~;t;;c~ ~p”p;a’l;:::: (3) Claims Before the U. S. Court of Claims . . . . . . . . . . . . . . Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Cost of Work Performed by One DOE Of fice for Another (2) Transfers of DOE-Owned Material s and Equipment .. .::::: (3) Adjustments in Amounts Authorized in Formal Interoffice Agreements . . . . . . . . . . . . . . . . . . . . . . Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Federal Loan Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . Foreclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. P. Payments in Lieu of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . Adjustments to Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . a. Recovery of Funds from Prior-Year Obligations of Unexpired Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Reporting Deobligations . . . . . . . . . . . . . . . . . . . . . . (2) Requests for Allotment of Funds of Unexpi red Accounts . . . . (3) Requests for Allotment of Funds of Expired Accounts . . . . . . (4) Apportionments . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5) Funds Not Approved for Allotment . . . . . . . . . . . . . . . . . I I I-3 II I-3 II I-4 I 11-4 I II-4 II I-5 I II-5 I II-5 I I I-5 I I I-5 I II-5 111-6 I I I-6 I II-6 I I I-7 I I I-7 I I I-8 I I I-9 I 11-9 I I I-9 I I I-9 I 11-9 I I I-9 111-10 111-10 I 11-10 111-10 I I 1-11 II 1-11 I I 1-11 111-11 111-11 II 1-11 111-11 I I 1-12 111-12 111-12 II 1-12 111-12 111-13 II 1-13 111-13 II 1-13 111-14 I I 1-14 111-16 111-17 111-17 . . iv 6-8-92 DOE2200.5B ● b. Amendments and Modificati onsof Agreements . . . . . . . . . . . . . . III-17 . Termination of Contra ctsand Agreements . . . . . . .......00 . III-17

:. Furnishing of Items by DOE to Contractors . ...........00. 111-18 7. Review and Reporting of Obligations . . . . . . . . . . . . . . . . . . . . . II I-18 Periodic Review and Validati OnoflJnPaid Obl igation Balances . . . 111-18 L Annual Certification . . . . . . . . . . . . . . . . . . . . . . . t-.. 111-18 ● ✎ v (and vi ) 6-8-92 DOE2200.5B LHAPTFRL TRATIVFCONTROI OF FUNCIS 1. —uumumw. a. ~. Tltle31. section 1514, ”Administrative Division of Apportion- ments,” of the United States Code requires the Secretary of Energy (S-l)to prescribe and carry out asystem for administratively controlling funds. This chapter establishes the policy and general procedures for administrative control of funds within DOE, and it specifies the penalties that applyto persons who violate these procedures. b. ~licability. This chapter conformsto the requirements of Office of Manage- merit and Budget (OMB) CircularA-34, “Instructionson Budget Execution,” andit applies to all appropriated funds, revolving funds, trust funds, and any other funds subjectto limitations, including obligations under direct loan commit- ments and loan guarantee programs. This chapter does not apply to DOE’sinte- grated contractors. All exemptions are subject to the prior approval of the Director ofOMB. DOE fund control policies and procedures shal 1 be in effect only to the extent approved byOMB. At a minimum, this chapter shall be reviewed whenever OMB issues a revised OMBClrcular A-340r whenever a person violates the Anti-Deficiency Act. c. Qbjectiv~. The administrative control of funds shall accomplish the following: (1) (2) (3) (4) (5) (6) Provide asystem to control funds so that violations of the Anti- Deficiency Act and of DOE limitations on obligations and expenditures are prevented, or, if they occur, so that violations are detected promptly. Be supported by DOE’s planning, programming, and integrated budget and accounting systems. Provide procedures for authorizing personsto formally commit andobli- gate funds and for properly documenting those commitments and obligations. Ensure that funds are expended only for the purposes intended by Congress. Ensure that all commitments and obligations are recorded in atimely manner. Ensure that all expenditures prerecorded in atimely manner andare pre- ceded by or occur simultaneously with avplid obligation offunds in an equal or greater amount. I-1 DOE2200.5B 6-8-92 Paragraph2 2. IREWTSFORFUIQ CONTROI SYSTFM . a. b. c. d. e. Administrative fund control shall be supported by planning, programm~ng, and Integrated budget and accounting systems. The integrated budget and account- ing systems shall use a consistent financial classification system. This classification system shall provide proper administrative fund control by requiring all Departmental reporting entities to show the disposition of all funds allottedto them from the DOE appropriations. The fund control system shall administratively control further distributions of apportioned budgetary resources. Itshall also monitor how those resources are applied during program execution to ensure that such resources are usedin accordance with the law and as Congress intended. To make it easier tocorre- late between distributions and applicatlonsof funds. the fund control system shall be based upon the DOE Base Table. The DOE Base Table represents the bud- getary resources avail able for obligation by DOEand is the controlling docu- mentfor the allotment and approved funding program system. (See DOE5100.llA, BUDGET EXECUTION-OFFICE OF MANAGEMENT AND BUDGET APPORTIONMENT AND TREASURY WARRANT PROCESS, of 5-18-92, and DOE 51 OO.12A, BUDGET EXECUTION--DEPARTMENT OF ENERGY BASE TABLE, of 5-14 -92.)

The system shall report data on commitments and obligations incurred monthly andyear to date and tomonth, obligational availability, costs and outlays incurred monthly and year todate, current beginning and ending uncosted and unpaid balances for each month, and remaining unobligated balances for each month. Budgetary resources shall be placed in the approved funding program allotment control systemin accordance with the DOE Base Table. Apportionments shall be allotted in accordance with the DOE Base Table, which contains the programmatic detail specified by appropriation legislation or Congress. The allotments shall provide for any legal limitations containedin appropri- ation acts and apportionments. The DOE accounting system shall provide proper approvals (front-end controls) before allotments are issued and obligations incurred. It also shall provide allottees and program managers with monthly financial accounting reports that’refl ect actual commitments, obligations, and disbursements. The accounting reports shall be timely, accurate, andcom- plete; they shall contain enough detail to inform allotteesof the statusof their funds andto heip them control obligations against administrative and legal limitations. Monthly reports shall be prepared according toappropria- tionand budget and reporting classifications for obligations. Payments shall be reported by appropriation. 3* ~. a. ~. (1) @rtio-. The Director of OMB maintains control over budgetary resources through the approval of DOE’s fund control regulations and I-2 6-8-92 DOE2200.5B Paragraph3b . through the apportionment process. which is normally the first level of funds dlstrlbutionof the Federal budget. The OMB apportionment, Standard Form (SF) 132. “Apportionment and Reapportionment Schedule.” makes funds appropriated by Congress avail able to DOE forobl igation and expenditure. Deficiency apportionments ,which are apportionments that anticipate the need fora deficiency appropriation or supplemental apportionment, must be specifically identified onthe SF-132. A comprehensive discussion of the apportionment process asit relatesto OMBand DOE is presented in DOE 51 OO.11A, BUDGET EXECUTION--OFFICE OF MANAGEMENT AND BUDGET APPROPRIATION AND TREASURY WARMNT PROCESS, and in OMBCircular A-34, “Instructionson Budget Execution.” All funds, both apportioned and nonapportioned, are control led through the system of accounts thatis illustrated in DOE 2200.10A. ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES. (2) #mQMEnu* (a) DOEmanages funds apportioned by OMBthrough asystemof administra- tive fund control that uses allotments. The allotmentis an authori- zation to incur obligations withi n a specified amount and purpose. DOE allotments aremade according to the requirements stated inOMB Circular A-34. Within the Department, the Chief Financial Officer (CFO; CR-1) and the Directorof the Office of Bud9et (CR-1O) have been delegated theresponsibil ityfor issuing allotments. The amount allotted bytht?CFO shall not exceed the amount apportioned by OMBfor those funds for which apporti onments are required. Allotments issued within the Department shall be at the highest practical level consistent with effective and efficient management. For a complete description of the DOE allotment process, see DOE 5100.14, ALLOTMENT AND APPROVED FUNDING PROCESS, of 9-17-86.

(b) When allotments are issued based upon passage of a continuing resolu- tion by Congress, the Budget Execution Branch (CR-131) shall ask the Department of the Treasury for unestimated appropriation warrantto cover the amount offending provided to DOE under the terms of the continuing resolution. Appropriation laws are sometimes passed too late to allow the normal administrative lead time necessary toobtaln apportionment and warrant documents. If DOE were then towait for guidance from OMBand the Departmentof the Treasury, request appor- tionments and warrants, and wait for their receipt, DOEwould be forced lntoa ”no funds’’sltuation, even though appropriation legis- lationhad been signed into law. Uhen the passage of such legislation clearly shows that Congress intended to continue Departmental opera- tions, DOE shall proceed to allot sufficient funds on an interim basis, within the guidance of the law, to permit operations until the necessary apportionments and warrants are obtained, thus avoiding a possible no-funds situation. b. ~. Budgetary resources consist of two categories: direct obligational authority and reimbursable obligational authority. I-3 DOE2200.5B 6-8-92 Paragraph 3b(l) (1) ~.Direct obligational authority consistsof ● new budgetary authority, unobligatedba obligations, and restorations. (a) (b) (c) ~. 1 AmmmMME. Direct obl~gat” ances, recoveries ofprfor-year onal authority fsmade available pr~marily as newbudgetary authority in appropriation acts that permit obligations to belncurred and payments to bemade. An appropriation act specifies the period of availability of the authority. The universe of appropriation or fund accounts is made up of fixed (available fora definite period oftfme) and no-year accounts. The following are the three most common periods: A ~e-year(Awl)Authority -obligational authority thatts available for obligation only during a specified fiscal year and that expires at the endof the fiscal year. b Multiple year AuthQ133x. -obligational authority thatis avail- able forobllgation fora specified period oftime for more than l fiscal year. G No-yearAuthorilx-obligat~onal authority that is available for obligation for an indefinite period oftime, usually until the objectives forwhich the authority was made available are attained. z ~tractwthoritv is statutory authorization to enter into contracts or other obligations in advance of appropriations. Contract authority requires a subsequent appropriationor the collection of revenues to liquidate (pay) the obligations incurred. s ~rrowina A~. Direct obligational authority through borrowing authority permits obligations tobe incurred based upon borrowed funds, generally from the Department of the Treasury. to liquidate theobllgations Incurred. Normally, subsequent appro- priations are soughtor revenues are earned to repay the amounts borrowed. ~obliaated BalW. Direct obligational authority maybe made available from unobligated fund balances of unexpired accounts carried forward tothenewflscal year. These funds consist of unused multiyearor no-year appropriations forwhich valid needs still exfst. Unobligated fund balances mustbe reapportfonedby OMBand reallottedby theCFO; otherwfse, the funds are not available for use. verfes of Prior . Year Obliaatl~ . Dfrectoblfgatfonal authorfty may be made available through recoveries of prior-year obligations I-4 9- I “ . .

“98-LI-6 JO ‘SS330tid 9NI(lNtld a3AOllddV aNV 1N3W1011V “tI” OOU 30Cl~~S ‘uo13QUJo4ul LQUO~3}ppPJOd● s3uaum30paseaLaJ uIeJ60Jd6u}nss~ Kq uieJ60JdpaAOJddQ aq36U}3nXYCaJ0 Jatq~SUOdSaJ aq LLeqsluaid}oaJ WI “uIeJ60Jd 6U~pUn~paAOJddP ue6u~A~a3aJJat4v “S3ua~d\3aJ uPJ60Jd6U\pUnJ paMJddQ 03 panSS\SIUPJ60Jd 6ulpUnJpaAOJddP 11P UOpa33aLJaJ ALJi3dOJdpuP KLa3PJn3312 aJesuo\3e3\ulL aA~3eJ3s~u}upe 3eq3saJnsuaJa2~~40 le~oueu~d~aj.q~ aql “JeaA Le3s~~q3ea~06u~uui6aq aq3aJo~aqOd~aq303 sIueJ60Jd 6u}punJpaAOJdde paSOdOJd J\aq33jUIqnS LLeqSSJa6eueuI UIeJ60Jd “zUa\d~3aJ Uit?J60Jd bu~pun~ paAoJdde q2ea Jo4uo\waxa Jo~aLqeL}eAespun~ aqq “suJa3 Le\oueui4pue3~3eu -IUPJ60Jd U~ “Qpads SKIPJ60Jd6U~pUnJ Pii)mddeaql“~ “q .“SlUPJ60Jd 6u}pund paAOJddvM pUPaS3UaU130LLv #Oa31Apvw :S2UaUIn30p OM3 sasnod~aqz “spun~meJpq3p4 puea3nq~J3s!pol“~ “* “pa130LLK?pUPpaUO!3JOddP uaaqaAeq spun~pueaoel,d saqr+uo}12aLLo3 Lenloe L~3un UOJlP6~Lq0 Jo~ aLqeLieAe aq Iou LLeqs pue paq3aLLo2 ~ouqnq anp squnowe aJe a saLqeA~amJ 2saJaqu~ pue saLqeA~a3aJ sueoL}otuJo4aql u} szuauMedaJ 26-8-9 (3)(z)q~qdK?J6PJPd as “Ilf)zz 300 ‘3-I UP07 ● pa~e6~LqoaJe &3qqaJo~aqpa~qoLLe pue pauo~qJoddeaq Lleqs spun~asaql ● suo\q3aLLo3 Lenq3e~odnapewaJe sueo LuoqsaJa~u)pue squawfedaJ uPoLwoJ~uoLqP6}LQ0 Jo~aLqeL~eAe sa2JnosaJ KJe~a6pnq ‘SW2J60Jda a~uPJen6ueo LpUPUPOL ~2aJ\p Japun S~UalllaSJnqUl~aJ JOJ (3) . . . . (3)(z)q~qdeJ6eJed as”oozzaoa26-8-9 . . . 6-8-92 DOE2200.5B Paragraph5a c. WMcMalS. (1) (2) (3) (4) Wawalsof FW. Funds are withdrawn through areductlonln the allotment and approved funding program. No funds shall bewlthdrawn without coordinating the proposed action wtth the allotted. Any person who requests a reduction In an allotment must verify with theallotteeor designee that any funds being withdrawn from an allotment are available forwithdrawal. This verification may be made in writingor by telephone. If made by telephone, awritten recordof the conversation must be kept, including identification of the person who authorized thewithdrawal. The person who submits the request tothe CFO for areduction in an allotment must certifyon the request for the approved funding program and allotment changes that the above verification has been performed. In determining the amount of funds avail able for withdrawal. the allottee should ensure that adequate funds are reserved forliabiliti es tocover the net increases incests and obligations upon their paymentor maturity and for commitments firmly in the process of becoming obligations. Obligations and outlays incurred that exceed authorities after a withdrawal are considered apparent violations. Jlecoverv of prior-year Obl iaations . Detailed policy and guidance for determining the avail ability of appropriation and fund balances are covered in Chapter 11, “Accounting for Appropriations and Other Funds,- paragraph7. The procedures for recording and reporting the recoveryof funds from prior-year obligations are contained in Chapter III, “Account- ing for Obligations,- paragraph 6a. By the 15th of themonth following the end of the accounting period, each allottee shall review the proprietyof all downward adjustments to prior-year obligations (Financial Informa- tion System status code PY). Minor administrative errors maybe corrected by using the procedure outlined in paragraph 6a(2)(d) of Chapter III. The formal procedures describedin paragraphs 6a(2)(a) through (c) of Chapter III must be followed to correct other erroneously reported prior-year obligations. The unilateral reduction or reversal of aprior-yearobliga- tionbyan allottee may result in alegal or an administrative violation (paragraph 7a)by the allotted, because the funds already may have been used by others.

1 ofl)irect~ shall be accomplished in the same manner as thewithdrawal of funds. ~eferral sand R~scissiw. Funds maybe withdrawn from a programby a deferral or rescission. For a comprehensive discussion of rescissions and deferrals, see DOE 51 OO.13A, BUDGET EXECUTION--RESCISSIONS AND DEFERRALS. 5. OF ~ AND APPROVED FUNDING P13QM&lS . a. MmWanmt (synonymous with reservation) is the first step in applying funds. Acommitment occurs each time a program release document is signed andtrans- mittedto be acted upon. Commitments occur before oratthe same time that any I-7 6-8-92DOE2200.5B Paragraph5a obligation is created. The commitment and the certification of fund availabil- ● ityapply onlyto the fiscal year inwhich they are accomplished. When a commit- mentis recorded and availabilityis certified butno contract award takes place in the same fiscal year, the commitment is decommitted and thecertifica- tion is withdrawn effective atthe closeof business on9-30. Anew commitment anda certificationof funds must reestablished inthe new fiscal year if funds are still needed and avail able for obligation. b. Qbliaation CoX. Obligation is normally the second step in applying funds. An obligation occurs, whether ornotit is recorded inthe accounting system, when a legal responsibility arises for which the Department must expend funds. No amount shall bereported asan obligation unless it is supported bydocumen- tary evidenceof transactions authorized bylaw, such as abinding agreementin writing; a valid loan agreement: an order: a grant subsidy: a liability result- ingfromlitigationo employment, travel expenses, or public utilities; or any other legal liability of the United States. Obligation certifications and records shall be keptin aform that makes audits and reconciliations easy. Chapter III, “Accountingf orObligations ,“ contains additional guidanceon obligations. c. IMemtial Iiabilitv. When it is difficult todetermi netheprecise amountof the Government*s liability for certain transactions, suchas indefinite-price contracts, the allottee shall ensure that funds are availableto cover the Government’s potential liability, which may exceed the amount thatis recorded as a valid obligation. One way to administratively reserve funds under these ● circumstances is by using a miscellaneous commitment document. To keep funds from stagnating. reservations of funds for these potential liabilities maybe consolidated at the allotment or the approved funding program level. Allottees and program managers must determine theamount tobe reservedby using their experience with the several types of transactions involved and must review these reservations on an ongoing basis and verify them. These reservations shall also be considered when reporting fund availability requirementsto Headquarters. Because notall potential liabilities will result inobliga- tions, allottees and program managers must use judgment to determine what amount should be committed. Obligations shall then be accomplished when the liability becomes an actual obligation. For further information on contingent liabilities. see DOE 2200.6, FINANCIAL ACCOUNTING, Chapter VII, “Liabilities.” d. Expired @propriations. An appropriation act specifies the period of avail- ability of the appropriation for obligation (see paragraph 3b(l)(a)l). After the period of availability for obligation, the balances are no longer available for incurring new obligations because the time available for incurring such obligations has expired. Detailed policy and guidance covering expired accounts are in Chapter 11, “Accountingf orAppropriations and Other Funds,-. . . paragraph 7.

6. ~. All administrative control of authorizations; certifications of funds availability; flows; and reconciliations and verifications. I-8 funds systems must include documents. procedures, and 6-8-92 DOE2200.5B Paragraph 6b(3) a. WhmWWms. (1) Designation of individuals selected as authorizin90ffici alsby allottees and approved funding program recipients must be in writing and, inappli- cable, must contain information on dollar limitations of theauthoriza- tionoron use limitations. They must be kept current to reflect changes In personnel or accounting classifications. (2) The allottee or the approved funding program recipient shall determine the officials in whom the authority shal 1 finally revested. Unless specifi- cally authorized by other DOE authority, authorizations may notbe redelegatedby an authorizing official. (3) The allottee or approved funding program recipient. if notan allotted, must notify, either by notice or memorandum, all other personnel serviced bythese fundsof the identitiesof the official s who are authorized to approve program release documents and of the particulars of theauthoriza- tion. The notification shall state that all persons not so authorized are prohibited from signing program release documents, verbal lymakingcom- mitments, or incurring obligations on behalf of the activity. Thenotifi- cation should also include a stern warning that disciplinary action will betaken for any violations of the prohibition. Renotification mustbe made when any changes are madein authorizations and accounting classi- fications or in senior officials, and at least annuallyif no changes are made. (4) Each allottee or programmana9er. if notan allotted, also must notify the head of the funds control office and the servicing personnel office, travel office, and procurement office of the identities of officials who are authorized to approve program release documents. A program release document must not be accepted unless itissigned byan authorizing official. b. ~. (1) All program release documents must be certified foravailabil ity offunds before they are processed bytheservicin9 personnel office, travel office, or procurement office. (2) Servicin9personne10ffices ,travel officeso must reject any program release document that certificationof fund availability. and procurement offices does nothave aproper (3) Although the allottee impersonal lyresponsible forensuring that funds are available before incurring obligations. he or she may designate, in writing, a certifying official to perform this function. An allottee within the geographical commuting area of the accounting officeis encouraged to designate the servicing Field Element CFO (Field CFO). I-9 DOE2200.5B 6-8-92 Paragraph6c (1) ~. The procurement, travel, and personnel offices shall pre- scrlbein thelrpubllcations and directives the proper forms to be usedas program release documents and obligation documents. (2) ~dFloW. The allotted, through the certifying official and In conjunction with the procurement, travel, and personnel offices. shall establish standard procedures and distribution for program release docu- ments andoblfgation documents. The procedures mustbe distrlbutedto authorizing officials, certifying offlclals, and contracting officers. The procedures also must provide for thecommltment of funds and the certification of fund availability before processing by the procurement. travel, or personnel offices and the recording of obllgatlonstn the accounting system after the obligation Is incurred.

d. (1) Each Field CFOmust ensure that accounting reconciliations occur onyear- end certification and that differences are resolved. This Includes recon- ciliations between recorded obligations and source documents, such as contractual documents, timecards, and travel vouchers, aswell as recon- clliations between recorded expenditures and the source documents, such as bills and vouchers. Valid statistical sampling techniques may be used when appropriate. (2) Each Field CFOmust ensure that as soon as the reconciled monthly financial reports are produced, they are reviewed to determine whether obligations or outlays exceed legal or administrative limitations and that any violations are reported to the CFOwlthin prescribed tlmellmfts. (3) By the 15th of themonthfoll owing the end of theaccountfng perfodbelng reported, each approved fundfng program recipient shall review the monthly financial reports produced bytheservlclng Field CFO. Withln30 days after thelrrecelpt, each approved funding program recipient shall perform whatever reconclllatlons are necessary to determine whether the reports are complete and shall notlfytheftnance and accounting office of any dlscrepancles. 7. PROHIBITED ACTIONS. PFRSQML RW?QNSMILITY. AND PMA.LIXS . Discussed below are actions prohibited by adm~n~strative control of funds pollcles and the employees personally responsible for specific violations. Included areacttons that violate the Anti -Deffctency Act (legal llmltations) andactfons that violate DOE policy (admf ntstratlve 1 Imltatfons). I - lo 6-8-92 DOE2200.5B Paragraph 7a(l)(e) (1) Vlolatlons of the Antl-Defi clencv Act (Leaal l~mit~ . The following actions are prohibited by the Anti-Deficiency Act: (a) Obliaa~d FxpeW&u.res or A~ts to f)bl i~ tures That Fx@Oriai~ogriatioM include any case where an officer or employee of the United States has made orautho- rized an expenditure fromor created or authorized an obligation against any appropriation or fund accountin excess of the amount available in the original appropriation or fund account. Fora merged (M) account, the balances from other years in the account are no longer transferable among fiscal years. For revolving funds, a legal violation occurs when the balance lnthe revolving fundas a whole (including net accounts receivable, unfilled Federal custom- ers’ orders, and advances from others) Is insufficientto cover the total ofall current liabilities (including accounts payabl eandthe estimated amount of leave payments upon termination to be madeto employees to be separated during the current month). For self- financed revolving funds, alegal violation occurs when obligations incurred in any fiscal year exceed the amount all ottedfor that year. (b) act or Oblig_ation inAdvw of an Ap_proDriatio~ . An officeror employee shall not involve the Government in a contractor other obligation topay money for any purposein advance of appropriations made for such purpose unless the contract or obligation is authorized bylaw. Ifauthorlzedby law but not financed by an appropriation. the budget authority to cover such transactions is known as contract authority. If the contract authority is provided in anticipationof receipts, obligations incurred against the contract authority should not reliquidated until the receipts are collected and creditedto the account oranappropri ation to liquidate has been enacted.

(c) New Obli Wlms or Anv Fx?enditures in Cl osedAxQuW include any case where an officer or employee has made or authorizedan expendi- turefrom or created or authorized an obligation against an account that has reenclosed pursuant to section 1552, 1555, or15570f title 310fthe United States Code. (d) ~. An officer or employee shall not accept voluntary service for the United Statesor employ personal service exceeding that authorized by law, except for an emergency involving the preservation of human life or property. (e) Obl iaations and F@itures or ~nts to Obl igjjons and enditu_res That Fxceed the ~unt@ortioned or RWrtio~ include any case where an officer or employee has made or authorized an expenditure from or created orau$horized an obligation against any appropriation or fund account inexcess of the amount apportioned or reapportioned to the original appropriation or fund account. In 1-11 DOE2200.5B Paragraph 7a(l)(e) 6-8-92 (f) (g) (h) (i) (j) no case may more than lpercent ofunexpfred funds be usedto pay for valfdobligatfonal adjustments lfqufdatfng obligations for closed accounts. Thfs authority also may not beused to exceed theorfgfnal approprfatfone llverobl f aation or Ov~rexpmxifture of an Allotmnt . Anofflceror employee shall not authorizeor createan oblfgatfon or makean expenditure exceeding the amount permitted by the approved DOE fund control system. Qveroblfaatfon or Overexpenditure of a Credit Limf tatfm . An off i - cer or employee shall notauthorfzeor createan obligation ormake an expenditure exceeding acredftlfmftatfon (apportionment for credit programs) contained in an appropriation act restricting the amount that can be obligated or committed fora credft program. Qverobl i-!ation or Ov~df ture of Other Mmini strative Subdf vf - sjonsof Fti. An officer or employee shall not overoblfgate other admfnfstrative subdfvisfons of fundso suchas approved fundfng pro- grams. When such an action causes an overobligation oroverexpen- dftureof an allotment, apportionment, orapproprf atfono alegal vfolation has occurred, unless the apportionment orthe DOE fund control system specifies otherwfse. Mjs.useof F@. An offfcer or employee shal 1 not obligate or expend ● funds for a purpose other than that forwhfch the funds were appropri- ated. Such anactfon is aviolatfon oftitle 31, sectfon 1301, of the Unfted States Code. _Faflure or Del av fn Recordina an Oblf oat ,onJ ● An offfceroremDloyee shall notfafl or delay recording an obligation, fn antfcfpat{on-of addftfonal fundfng, when such actfon would cause an overoblfgation or overexpendftureof an allotment, apportionment, or appropriation. (2) Yfolatfons of 1 imitations (41mfnfstratfve Vfolatfu ). The following actfons do not necessarily violate the Antf-Deffcfency Act, but they are contrary to DOE polfcy for controlling appropriations and funds: (a) ~. An admfnistratfve limitation isanupperlimft placed on the amount of oblfgatfonsor expenditures that may be fncurred for a specific program, function, activity, or element of expense. Exceeding an administrative limitations subject to Departmental rather than statutory rules and penalties. For example, administrative lfmftations can reimposed on the Department by Congress, through congressional conference reports; by OMB, through any executive branch directive containing anadminfs- trative lfmftation attached to an apportionment; or by internal DOE management, through ceilings on travel. Administrative limitations specified unapproved funding programs may not be exceeded. Although admfnfstrative limitations may not be exceeded, they differ from

1-12 6-8-92 DOE2200.5B Paragraph 7b(2) . b. (b) (c) legal Ilmitatlons, because vlolatlonsofadmlni stratlve limitations are not necessarily violations of law. V’iolatlons of administrative Iimitations are violations of DOE policy and must be reported immedi- atelytothe CFO. Exceeding an administrative limitation may, however, result ln a legal violation atthe Department level . Any person causing an administrative limitation to be exceeded shall then be responsible for the resultant legal violation and shall be subject to the penalties for such violations. tal Approved Fundina Proarams . DOE officers and employees shall adhere to supplemental approved funding programs in program execution. Exceeding limitations specified in supplemental approved funding programs does not constitutea legal violationif the consolidated approved funding program isnot exceeded atthe allottee level. ~tions. Under the circumstances described in DOE5500.6B, SHUTDOWN OF DEPARTMENTAL OPERATIONS UPON FAILURE BY CONGRESSTO ENACT APPROPRIATIONS, essential activities, such as the preservation of human life or property, maybe obligated in excess of limitations for specified purposes. Persml Res@.nslbilitv for Violatiw . . The person who occupied the position atthe timea violation occurred shall be charged with the violation rather than the person who occupies the position atthe time the viol ation is discovered. (1) If the person who caused the obligation toarise was not an authorizing official, the person to beheld responsible will be one of the following: (a) (b) (c) (d) (e) The unauthorized person causing the obligation to arise. The program manager. The certifying official , unless bypassed, who was supposed to verify that program release documents had been signed only by authorized program managerse The contracting, personnel, or travel official. unless bypassed, who was supposed to verify that funds had been certified as available and that program release documents had been signed only byan authorizing official. The allotted. (2) If the obligation was based on an erroneous allotment or approved fund- ing program, but was within the limitations stated on the allotment or approved funding program, the Director of the Office of Budget shall be held responsible (see paragraph 8e). 1-13 DOE2200.5B 6 - 8 - 9 2Paragraph 7b(3) (3) If the contracting, personnel ,or travel official processed anobltgatfon document wlthoutflrst ensur{ng that sufficient funds had been certlffed as available, that official shall beheld responsible. (4) If obltgatlons exceeded the amount appropriated, apportioned, or allotted as a result ofobllgation adjustments to correct aviolatlon resultlng from funds being used for purposes other than those intended by Congress, the program manager shall beheld responsible. (5) If an expenditure was made or authorized oranobligatlon was createdor authorized under any appropriationor fund, including any revolving fund, in excess of the amount available in the appropriation or fund, the person who made or authorized the expenditure or created or authorized the obligation shall beheld responsible for the violation. (6) If an obligation was authorized or created or an expenditure was madein excess ofan apportionmentor reapportionment, the person who authorized or created the obligation ormade the expenditure shall beheld responsible for the violation.

(7) If the Government wasinvol vedinacontract orotherobl igation for the payment ofmoney for any purpose in advance of appropriations made for this purpose, unless the contract or obligation was authorized bylaw. the person authorizing the obligationor payment under the contract shall be held responsible for the violation. (8) If voluntary service was accepted for the United States orlf personal services were employedin excess ofthose authorized bylaw, exceptin emergencies involving the preservation of human life or property, the person who accepted the voluntary service or employed the personal services shall beheld responsible for the viol ation. (9) If an obligation or expenditure was authorized or created inexcess of the amount permitted byan allotment, theallottee and the person authorizing the obligation or expenditure shall beheld responsible for the violation. c. BMiu.ks. (1) Severe penalties are provided for violating the Anti-Deficiency Act and DOE fund control limitations. In addition toany penalty or liability under law. a DOE officeror employee who authorizes ormakes expenditures exceeding available funds is subject to administrative discipline, including suspension from duty without pay or dismissal. If convictedof knowingly and willfully violating legal limitations. the officeror employee is subject to fines or imprisonment orboth. (a) Anti-Deficiency Act Violati~ . 1 ~~en.alty. An officer or employee of the United States Government who knowingly or willfully authorizes ormakes 1-14 . I . 6-8-92 . DOE2200.5B Paragraph 7c(2)(e) expenditures in excess of available funds shall be fined not more than $5,0000r imprisoned for not more than 2years, orboth. 2 ~. The following disciplinary measures maybe imposed for Anti-Deficiency Act violations in additionto or exclusive of any criminal penalty: A Counseling the violator. h Requiring additional training for the violator. c Filing aletter of reprimand in the personnel file of the violator for lyear. ~ Preparing an unsatisfactory performance appraisal . R Suspending the violator from duty for upto2 workweeks without pay. f Reassigning or terminating the violator. II Taking any other action considered necessaryby the Under Secretary (S-3) or the Secretary. (b) Administrative I Imitation Violations . Any of the permissible disci- plinary actions listedin paragraph 7;(l)(a)Zmaybe imposed for violations of DOE administrative limitations and fund control requirements that are not subject to Anti-Deficiency Act penalties. (2) In determining what, if any, disciplinary actions may be appropriate, the Under Secretary may consider any aggravating or mitigating circumstances surrounding the violation. The severityof the disciplinary action shall depend inconsideration ofall the facts and circumstances that caused the violation, including the following: (a) (b) (c) (d) (e) The seriousnessof the violation; The failure to report or late reporting of the violation. ora previous pattern of such violations: The character of the viol ation, that is, whether the violation was made knowingly and intentionally, occurred through gross or simple negligence, orwas justified to protect life or property under emergency conditions: The number of times the same violation or similar violations have occurred and the length of time between violations: and Past disciplinary actions that have proved ineffective. 1-15 DOE2200.5B Paragraph8 6-8-92 8. RF POJUING OF VIOI ATIONS WITHIN THE DFPARTMFU ●

(1) Any person whoknows abouta possfble vlolatfon fsresponsfbl e for report- fngft. The report shall be forwarded tothecognfzant Ffeld CFO and shall form the basfs for allottee reportsto the CFOonvfolatfonsor apparent vfolatlons of legal or admlnfstratfve control Ifmitatfons. (2) The Ffeld CFO shall prepare formal reports fn memorandum form fn the format prescribed fn paragraph 8b(l)and make the dfstrfbutfon as follows: (a) CFO (CR-1) (orfgfnal). (b) Allottee (one copy). (c) Office of Departmental Accounting and Ffnancfal Systems Development (CR-40) (one copy). (d) Any other person found responsfbl efnwhole or fnpart for the vfolation (one copy). (3) The allottee shall sfgnthe report and forward fttothe CFOwfthin45 days after the end of thereportfng cycle durfngwhfch the violation occurred. (4) Anypotentfal vfolatfon detected byarevfewfng, auditfngo orexamfnfng ● authorfty, except for the General Accounting Offfce, shall notbe reported asa vfolatfon untfl eftherthe Ffeld CFOhas concurred that avfolatfon exfsts or the revfewing, audftfng, or examfnfng authority has recefved concurrence from theCFO. As soon as apotentfal violatfon fs detected, ft shall be reported by telephone tothe Dfrector of the Offlceof Departmen- tal Accounting and Ffnancfal Systems Development. For reportfngrequfre- ments related to General Accounting Offfcefindfngs onpotentfal vlolatfons, see paragraph 9c(l). . . (1) ~. The following information, fnthe sequence lfsted, shall be fncludedfn the report: (a) Date the alleged vfolatlon occurred. (b) Name and locatfonoftheofff cewhere the alleged violation occurred. (c) Name and tltleof the allotment holder. (d) Name and 1 ocatfon of the certffyfng of ficfal responsible for the admfnfstratfve control of funds. 1-16 6 - 8 - 9 2 DOE2200.5B Paragraph 8b(l)(n) . . (e) Accounting classificationof the funds involved (that is. appropriation, budget, and reporting numbers). (f) Amount of fund authorization or limitation believedto have been exceeded. (g) Amount and nature (for exampl e, overobligation, overexpenditure, or exceeding of other legal limitations) of the alleged violation. (h) Name, grade, and position of the person responsible for the alleged violation (if the person is no longer employed by the office that is reporting, the report shall provide the date of departure and current address). (i) Statement of what the person did or did not do that resulted inthe alleged violation. (j) Statement about whether the alleged violation was dueto awillful act, careless disregard of instructions, emergency circumstances, or an error. (k) Detailed statement of the cause of and circumstances surrounding the alleged violation (including all pertinent dates and copiesof supporting documents, as appropriate). (1) Description of specific action taken to correct the alleged viola- tionand of newprocedures or safeguards established to prevent its recurrence. (The report shal 1 describe the specific action in suffi - cient detail to allow evaluationof its adequacy. If changes in directives, systems, or procedures are required that cannot bemade exceptby Headquarters, submit proposals by separate correspondence to the proper authority and refer tothese proposals in the reportof the alleged violation.)

(m) Asigned statement by the person determined to beresponsibl eforthe alleged violation. (Request assistance from the Office of General Counsel (GC-l)to ensure that the person’s rights and the integrity of the investigation are preserved. The statement shall include detailed facts about the person accusedof causing the alleged viola- tion. If the responsible person either declines tomake a statement or cannot be reached to obtain a statement, the report sl?all explain this clearly.) (n) If another agency is involved in the alleged violation, the report shall includea statement about the steps taken to coordinate the report with the other agency. 1-17 DOE2200.5B Paragraph 8b(2) 6-8-92 (2) 1 or Ap~ent Admlnfstratfve I imitation Viol atlons . Foradminlstra- tivellmitation vlolatlons, the information ln paragraph 8b(l)(a) through (e) along with the following information, shall”be reported, tnthe sequence listed: (a) Amount of the exceeded. (b) Amount of the administrative l~mltation allegedto have been alleged violation. (c) Description of spectflcactlon taken to correct the alleged vfola- tlon. aswell as newproceduresor safeguards establfshedto prevent ~ts recurrence. (The report shall describe the specific action in sufflcientdetafl to allow evaluation of its adequacy.) c. Actions Reaulred After Vfol atims Are Ret)ort~ . (1) The responslbflity of allottees concerning a reportable viol ation does not end when they report avlolatlon. Allottees should take immediate action to lessen the Impact of the violation. Such action may include the following measures: (a) Canceling sufflclentnoncriti calobllgations toellmlnate the deficit. (b) Initiating contract modlfi cations to reduce ortermfnate suff~clent Items not representing critical requirements. (c) Requesting addttlonal funding through the Offlceof Budget. (2) Subsequent actions taken to correct the cause ofaviol atlon donot eliminate that violation; It still must be reported. d. ent Violations =bv _tina FrrorS . If, after reviewing the circumstances surrounding the apparent violation ofa legal limitation or admfnfstrative control level lfmltation and theappltcatton of facts to applicable laws anddirectlves, the ffnance and accounting office concludes that the apparent violation was the result ofanaccountlng error, the Field CFO shall prepare a memorandum explaining the circumstances, thevlolation, and the actions taken (see paragraphs8a and bforreporttng). e. tUiolatlons wedbY I~4ateW4tWl of Fund.s . Anexcesslve orinvalfd reducttonfn an allotment or approved funding prograwthat ~s, an erroneous withdrawal of funds tn excessof the allotted orunoblfgated balanceis nota violatfonlfelther of the following condlt~ons tsmet: (1) Addltlonal obligations have not been authorized orlncurred against the funds. 1-18 6 - 8 - 9 2 DOE2200.5B Paragraph9b . . . (2) The withdrawn funds have been immediately restored ormade avatlable, through deobligation. to the account from which they were withdrawn in suff~cient amount to cover obligations previously authorized or incurred. 9. ENTAND~ . a. Rep.grts tothe Presiti. The Secretary shall furnish to the President, through the Director ofOMB, and to Congress information on any actlonsprohlb- itedbythe Anti-Deficiency Act as presented in paragraph 8. Areport tothe President onan Anti-Deficiency Act violation shall beinthe formof aletter (original and three copies) and shall include the following information, inthe sequence listed:

(1) Title and Department of the Treasury symbol (including the fiscal year) of the appropriation or fund account, the amount involved for each violation, and thedate on which the violation occurred. (2) Name and position of theoffi ceror employee responsible for the violation. (3) All facts pertaining to the viol ation, including the type of violation (such as overobligation of an appropriation, overobligationof anappor- tionment, or overobligation of an allotment) and its primary reasonor cause: any statement from the responsible officer or employee about any extenuating circumstances; and any germane report by the DOE Inspector General (IG-1). (4) Statement of the administrate vediscipline imposed and any further action planned or taken for the officer or employee invol vedin the violation. (5) When an officer or employee is suspected ofwillfully and knowingly vie- latingthe Anti-Deficiency Act, statement that all information has been submitted to the Department of Justice for a determination of whether further action is needed. (6) Statement about the adequacy of the system of administrative control prescribed by the Secretary and approved byOMB, if such approval has been given. If the Secretary determines that the regulations need tobe changed, heor she shall submit such proposals to the Director ofOMB. (7) Statement of any additional action taken byor at the direction of the Secretary. including any newprocedures or safeguardsto ensure that the violation does not recur. (8) If another agency is involved, astatement concerning the steps takento coordinate the report with the other agency. b. 13eportsto ConarW. The report to Congress shal 1 be in the form of identical reports tothe Speakerof the House of Representatives and the President Pro Tempore of the Senate. If this report is identical to the one to the President, 1-19 DOE2200.5B Paragraph9b the report tothe President shall Include astatement tothat effect. Ifitfs nonidentical, one copy of the report to Congress shall be submittedto OMBwith the report to the President. The information required for reportsto Congress is the same as that for reports to the President. C* ~. (1) Reports to the President and to Congress shall also bemadeon any viola- tion not previously reported by the Department that is included in General Accounting Office findings in connection with an audit oraninvestiga- tion. In such acase, the reports to the President and to Congress shall explain why the violation was not discovered and previously reportedby the Department. If the Department does not agree that a violation has occurred, the reports to the President and Congress shall explain DOE’s position. (2) When OMB determines that aviolation of the Anti-Defi ciency Actmay have occurred, itmay request thatan investigationor audit be undertaken or conducted by DOE. In such cases, areport describing the results of the investigation or audit shall be submitted toOMB through the Secretary. If the report shows that the Anti-Deficiency Act has been violated, the Secretary shall so inform OMB and forward to OMBacopy of the report. If the report shows that the Anti-Deficiency Act has not been violated. the Secretary shall report to the President and to Congresses soon aspossi- ble. If the Secretary does not agree that a violation has occurred, the reports to the President and to Congress shall explain DOE’s position.

d. Timina of Reports. The required reports, signed by the Secretary, must bemade to the President and to Congress as soon as aviolation is discovered. 10. ~. a. ~. Adherence to strict standards of internal control Is particularly significant inthe admini strative control of funds. DOE 1000.3B, INTERNAL CONTROL SYSTEMS, of 7-5-88, provides detailed information on each of the following standards: (1) Documentation. (2) Recording of transact” (3) Execution of transact< (4) Separation of duties. (5) Supervision, (6) Access to resources. 6-8-92 ens, ens, (7) Competent personnel. and 1-20 6 - 8 - 9 2 m (8) Reasonable assurance. DOE2200.5B Paragraph 10b(8) . . b. ~ntrol Ob.iectivU. The specific control objectives for administrate ve control of funds are to ensure that the following requirements aremet: (1) (2) (3) (4) (5) (6) (7) (8) All changes in organization, operating procedures, and legal requirements are properly conformed. Funds are expended solely for the purposes for which they were appropriated, except as otherwise provided bylaw. Funds are certified as available and committed before obligation. The identityof the responsible person andthe extentof delegated authority are clearly understood. Obligations are restricted to the period of time during whichan appropriation or fund remains avail able for obligation purposes. Obligations or expenditures are not authorized or incurred in excessof available funds orin excess of any legal or administrative limitations. Only valid obligations are recorded inthe accounting records, and all obligations incurred are recorded accurately and promptly. Outstanding commitments and obligations are validated annually. . I . 1-21 (and I-22) . . . 6-8-92 DOE2200.5B I . . . CHAPTER IL ACW.KUN.G FOR APPROPRIATIONS AND OTHER FUNDS 1. —ummumm. 1 a. ~. Ingeneral, anappropriatton Isanauthorl zation by an act of I Congress that permits aFederal agency to incur obligations or to spend public funds. DOE appropriations result from congressional appropriation actsin response to DOE budget requests. The acts provide the authorityto incur obligations, which eventually become outlays payable by the Department of the Treasury. An appropriation usually follows enactment of authorizing legisla- tion, normally a prerequisite for subsequent appropriations orother formsof budget authority (borrowing and contracting authorities) contained inappro- priation acts. By itself, authorizing legislation does not permitan agencyto Incur obligations ormake payments: the act must declare specifi cally thatan appropriation is made. Appropriations to liquidate contract authority, appro- priations to liquidate outstanding debt, and appropriations for refunds or receipts do not constitute budget authority because they do not provide author- ityto incur additional obligations. The Departmentof the Treasury estab- lishesa separate account for each appropriationor fund followingan actof Congress. DOE 5100.14, ALLOTMENT AND APPROVED FUNDING PROGRAM PROCESS. of 9-17-86. and Chapter I. ‘Administrative Control of Funds.’’ provide additi onal guidance. b. ~plicabilitv. This chapter isapplicabl etoall Departmental elements. This chapter does not apply to integrated contractors. c. w. (1) DOE appropriated funds shal 1 be expended only for the purposes intendedby Congress. (2) Asystem of administrative control of funds shall be maintained toavoid overobligation ofan appropriation.

(3) Appropriations shall not be obligated after the period of availability. 2. OVFRVIEW OF THE APPROPRIATION WJ3MT. APPORTIOWT. APPROVED MNDING PROGRAL ~. a. @ropriation Warrant. After the passage ofaDOE appropriation bill by Congress, the Departmentof the Treasury draws and forwards to DOE TFSForm 6200. “Department of the Treasury Appropriation Warrant.” The warrant is the official document issued, pursuant to law, by the Secretaryof the Treasury 11-1 DOE2200.5B Paragraph2a 6-8-92 that establishes the amount ofmoney authorized tobe withdrawn from the Department of the Treasury for paymentof obligations. (1) The warrant is received inthe Departmental Accounting and Analysis Divi- sion (DAAD) (CR-42): DAAD shall forwarda copy to the Budget Execution Branch (CR-131), which shall compare the warrant with the apportionment received from the Office of Management and Budget (OMB) to ascertain the following: (a) That thewarrant and the apportionment arereconcilabl ewith each other; (b) That the appropriation symbol is the same on both; and (c) That the legislation citation is thesame on both. (2) DAADrecords the warrant in the Departmental Control Accounts by debiting Funds with theU.S. Treasury and crediting Appropriations Received. ( 3 ) When DOE is required to operate under the provisionsof a continuing reso- lution, the Budget Execution Branch requests awarrant from the Department of the Treasury foran amount consistent with the provisions of the contin- uing resolution. When appropriation legislation is subsequently passed, the Department of the Treasury prepares awarrant to cover the difference between the continuing-resol ution warrant and the full amount of budget authority provided by the appropriation. DOE 51OO.11A, BUDGET EXECU- TION-OFFICE OF MANAGEMENT AND BUDGET APPORTIONMENT AND TREASURY WARRANT PROCESS, of 5-18-92, and volume I, part 2, chapter 2000, of the Treasury Financial Manual (I TFM 2-2000) provide further discussion of warrants. b. Apportiom. The OMB apportionment process distributes funds availabl eto DOE for obligation ofan appropriation into amounts available for specified time periods, activities, projects, or objects, or combinations thereof. (1) The Budget Execution Branch requests the apportionment (Standard Form (SF) 132, ‘Apportionment and Reapportionment Schedule”) fromOMB for budget authority. unobligated balances, reimbursements and other income, recoveriesof prior-year obligations, and restorations and writeoffs. (2) DAADrecords the approved apportionment in the Departmental Control Accounts. Further discussionof apportionments is provided in DOE 5100. 11A, BUDGET EXECUTION--OFFICE OF MANAGEMENT AND BUDGET APPOR- TIONMENT AND TREASURY WARRANT PROCESS, of 5-18-92. c. proved Fundina Pro~t Process The approved funding program (AFP)and allotment process provides the DOEac~ounting system with the inter- nal distribution of all obligational authority made available to the Depart- mentfor the fiscal year. The AFPand allotment process is used to establish II-2 6-8-92 DOE2200.5B I Paragraph3b . . . and maintain specific controls, ceilings, and limitations imposed by Congress, OMB, or the Department on the use of the funds. (1) The allotment document, HQ F2260.2, “Adviceo fAllotment.”c onfers on the allottee the authority to incur obligations and make expenditures. The allotment also conveys any legal limitations imposed ontheuse of the funds. The field elements record allotments by debiting Unexpended Allotments and crediting Unobligated Allotments.

(2) DAADrecords the allotment in the Departmental Control Accountsby debiting Funds Available for Allotment and crediting Unexpended Allot- ments. DOE51OO.14, ALLOTMENT AND APPROVED FUNDING PROGRAM PROCESS. of 9-17-86, provides further discussion ofAFP’s and allotments. 3. ~CCOUNTSYMBOIS. All Government transactions are identified with applicabl efund groups, which are classified through the assignment of account symbols by the Department of the Treasury. a. roD riation or Expenditure Account Swnb.QIS consist of seven ormorealphanu- meric characters. The first two digits identify the agency responsible for the account (DOE is89). The third character represents the period of availability of the appropriation for obligation, as follows: (1) fixtiounts areappropri ationor fund accounts with balances that are available for a definite period, as follows: (a) Qne-YearAppropriation . Asingledigit (O-9) represents the last digit of the fiscal year in which theappropriati on is available for obligation. (b) Multiple-year A?jmz?riation . Two digits separated by aslash (/) indicate a multiple-year appropriation. The digit preceding the slash represents the last digit of the first fiscal year of avail- ability, and the digit following the slash represents the last digit of the final fiscal year of availability. (2) flo-Year Ap~riation.. An Xisused to indicate ano-year appropriation. which is available for obligation indefinitely. (3) J4AccWare expired accounts established before n-5-90 that contain unliquidated obligated balances and that have been merged with unliqui- dated obligated balances from prior years. DOEwill establish nonew M accounts: itwill phaseout all existing Maccounts and cancel any remaining balances on 9-30-93. b. ~. The last four digits identify the specific account by one of the appropriation fund account types describedin paragraph 4. I I-3 DOE2200.5B Paragraph3c 6-8-92 c. Jlecelpt Acmnt Svmbols consist of six digits. The first twodfgitsldentffy the agency responsible for theaccount (DOE is89). The last four digfts fden- tifytheaccount’s fund group and major class. Alistof these can be foundin ITFM 2-1500. 4. ~. There are six types ofappropri ationaccounts (general, special, trust, consolidated working fund, management fund, and revolving fund) fordepositlng and spending all public funds. The majority ofDOE’s appropriations are general fund accounts, and their accounting treatment Is descrtbedin paragraph 5. The other typesof appropriation accounts are discussed ln paragraph 6. Deposit funds, whtch technically are l~ability accounts, are also discussedin paragraph. a. ~are credited withall receipts that are notear- marked by lawfora specific purpose. The general rulewith respect tothese receipts from sources outside the Government is that all moneys received for the use of the Government shall be turned into the Department of the Treasury as general fund receipts and can be withdrawn only as a consequenceof appropria- tions made bylaw (tltle7, section 5.3. of the General Accounting Office Policy and Procedures Manual for Guidanceof Federal Agencies). General fund receipts are”deposited to specific receipt account symbols by fund group and major class, which can be foundin ITFM 2-1500. Detail ed procedures for depositing these funds are covered in OOE 2200.6, FINANCIAL ACCOUNTING, Chapter I, ‘Cash.” The deposit will be recorded as a miscellaneous receipt with adebit to Funds Returned to Treasury and a credit to Net Costof Operations. Additional guidance regarding all receipts isinOOE 2200.6, FINANCIAL ACCOUNTING, Chapter IX, “Reimbursable Work, Revenues. and Other Collections.”

b. General Fund F)@adlture Accoti . are established to record amounts appropri- ated by Congress for the general support of Government activities and the subsequent expenditureof these funcis. 5.~N APPROPRIATIONS AJjDBFT~N FIJNDACC(j(JNT~ . An appropriation transfer is a transfer that, pursuant to law, withdraws budgetary authority orbal - ances from one appropriation account for credit to another appropriation or from one fund account for creditto another fund account. An appropriation transfer requires the execution of SF-1151, “Nonexpenditure Transfer Authorization.” to transfer the funds on the Department of the Treasury records and the submission ofa reapportionment request, SF-132, “Apportionment and Reapportionment Schedule,-to OMB. An appropriation transfer request shouldbe made only tomeet the require- ments imposed by an unforeseen situation and only if postponement of theprogramo project, or activity would be detrimental to aOOE programor priority. Anappro- priation transfer should not be used to seek reconsideration ofa programor funding that was denied, limited, or increased by Congress (DOE 5160. IB, REPROGRAM- MING, RESTRUCTURING, AND APPROPRIATIONS TRANSFER PROCEDURES, of 5-18-92). In contrast, transfer appropr~ations are established to receive and dlsbursealloca- tions froman appropriatlonof another organizationor agency. Such allocations and transfers are not adjustments to budgetary authority or balances of budget author~ty. Transfer appropriations are discussedin par~graph 5a(2). II-4 6-8-92 ● a. ~. (1) e . . a’ DOE2200.5B Paragraph 5a(l) (a)Zjl Definiti~. “Nonexpendituret ransfers” between appropriations and between fund accounts refer to the establishment or modificationof appropriations on the basis of appropriation warrants, including increases or decreases In such appropriations pursuant to authorized nonexpendlture transfers between the appropriations and between fund accounts; borrowing from the Department of the Treasury and repayments of such borrowing; and credits to miscellaneous receipts representing repayment of the Government’s Investmentin a revolving fund or distribution of earnings of arevolvlng fund. 1 Nonexpenditure transfers are limited to transactions in which both the withdrawal and the credit occur within one of the following groupsof accounts: A Accounts within the budget (general, revolving, management. and special accounts), b Trust fund accounts, or c Accounts outside the budget (deposit fund accounts), 2 Withdrawals and credits of the following general types ofnon- expenditure transfers constitute all the transactions in this category and shall not rerecorded or reportedas obligations, expenditures, or reimbursements: A Transfers Witmt Benefit to the Transferri~ include reorganization transfers, redistribution of appropriations or balances, and redelegationsof authority, which permit funds to be expended under other appropriationsor fund symbols. J2 Borrowings from ~t of the Treasurv Under Loan A.ut.bor~zaw include amounts advanced by the Department of the Treasury and amounts returned on principal . Interest payments represent expenditure transactions and are excluded. c C@tal Transfers represent the transactions ofa revolving fund whereby capital investment ofDOE or earnings aretrans- ferredfor credit to designated capital transfer miscellaneous receipt accounts.

d~ Include amounts advanced bythe Federal Financing Bank to agencies authorized to issue, sell, or guarantee thelrobligatloni in lieu of borrowing from the Department of the Treasury orissulng securities tothe public. II-5 DOE2200.5B 6-8-92Paragraph 5a(l)(a)~ However, any Federal Flnanclng Bank action that reducesan appropriation balance with the Department of the Treasury rather than provides adirect advance will require obligation and disbursement transactionsto balance with the Department of the Treasury*s account. (b) ~. DOE 5160.lf30 R E p R O G R A M - MING, RESTRUCTURING, AND APPROPRIATIONS TRANSFER PROCEDURES, of 5-18-92, describes procedures for processing the approval ofan appropriation transfer request. 1 Following approval of the request, SF-1151, “Nonexpenditure Transfer Authorization,” will be used for processing nonexpendi- ture transactions. The original request for transfer shall be transmitted toDAAD for preparation of the SF-1151. Generally, only one nonexpenditure transaction request should be documented on an SF-1151. However. an SF-1151 maybe used to document more than onetransfero provided that all of them are basedon the same legal authority. The formmust containa citation of the legal authority for the transfer, including reference. wherever possible, to the United States Code. Z Following receipt of the request, DAAD shall prepare the SF-1151 and transmit the original SF-1151 and four copies to: Manager Finance and Funding Branch Financial Management Services Department of the Treasury Washington, DC 20226 DAAD shall retain one copy of the SF-1151 pending thereturn ofan accomplished copy. 3 The Department of the Treasury will transfer the funds and retain the original SF-1151. Two accomplished copies of the form will be returned toDAAD, which shall forward one to the Budget Execution Branch. 4 DAAD shall record the transfer offunds in Departmental Control Accounts from the retained copy. 1 When the accomplished SF-1151, ‘Nonexpenditure Transfer Authori- zation,” is received byDAAD from the Department of the Treasury, DAAD shall forward acopyto the Budget Execution Branch. II-6 . . . 6-8-92 DOE2200.5B Paragraph 5a(2)(a)~ Z The affected program office shall request an AFP change. and the Budget Execution Branch shall issuea revised allotment andAFP. s Detailed procedures for processing the transfer are covered in DOE 5160.lB, REPROGRAMMING, RESTRUCTURING, AND APPROPRIATIONS TRANSFER PROCEDURES. of 5-18-92. (2) ~ are established to receive and disburse allocations for the benefit of the parent accounts. These include trans- fersof partor all of an appropriationor fund between agencies where the receiving agency establishes the amount transferred in a transfer appro- priation account. Awritten agreement showing the purpose and amount tobe transferred must be completed and signed by both agencies before the allo- cation is made. Such allocations and transfers are not adjustments to budget authorityor balances of budget authority. Rather. these transac- tions, including any adjustments therein, are treated as nonexpenditure transfers atthe time the allocation ismade. The accounts carry symbols that identify the original appropriation from which moneys were advanced. 1 2 3

After DOE enters into a written agreement with the receiving agency, DAAD shall prepare SF-1151, “Nonexpenditure Transfer Authorizationo- and forward ittothe Budget Execution Branch for concurrence. After concurring, the Budget Execution Branch shall reduce the allotment of the transferring program and set the funds aside, making them unavailable for obligation by DOE because the other agency is authorized to use them. DAAD then shall submit the SF-1151to the Department of the Treasury for processing. When DAAD receivesan accomplished copy of the SF-1151 from the Depart- ment of the Treasury, indicating that the funds have been trans- ferred, DAAD shall submit acopyto the Budget Execution Branch for preparation of an advice of transfer authorization andan AFP. The agency receiving the allocation will report all transactions back to DOE atthe end of each month onan SF-133, “Report on Budget Execution.” The u%e of transfer appropriationsby DOE is limited to instances where no other reimbursement method will suffice to obtain the required services. No transfer appropriation shall reprocessed without the approval of the Chief Financial Officer (CFO: CR-l). The preferred method of reimbursement is by cash disbursement based upon receipt of abilling. Cash disbursement is coveredin DOE 2200,6, FINANCIAL ACCOUNTING, Chapter I, “Cash.” II-7 DOE2200.5B 6-8-92Paragraph 5a(2)(b) L When all or any portion of an appropriation that has been trans- ferred to another Federal agency in the current ortn aprior fiscal year isto be returned to DOE, the other Federal agency will transmit SF-1151, “Nonexpenditure Transfer Authorization,- to the Department of the Treasury to accomplish thereturn of the funds to the DOEappropri ationaccount from which they were trans- ferred. The Departmentof the Treasury, after processing the form, will transmit one copyof the form to DOE Headquarters, and DAAD shall duplicate the copy and forward ittothe Budget Execution Branch. 2 T’he Office of Budget (CR-10) shall return the unused funds tothe allottee for use, provided that they have not expired. The Budget Execution Branch shall revise the current AFPof the office involved and issuean advice of transfer authorization, reducing the transfer authority granted in the current fiscal year by the amount of the returned transfer appropriation. a The initiating program office. in reviewing the performance of the agreement, shall ensure that unused funds are returned to DOE. 1 When the accomplished SF-1151, “Nonexpenditure Transfer Autho- rization,” is received byDAAD from the Department of the Trea- sury, DAAD shall forward a copy to the Budget Execution Branch for preparation ofan allotment andAFP. The allotment issued pursu- ant to the transfer provides the authorityto incur obligations against the funds. Z For accounting purposes, DOE’s prefix shall be added to the origi - nal appropriation or fund account from the originating agency. DAAD shall report all transactions back to the issuing agency (parent account) at the end of each month. DAAD shall prepare SF-133, “Report on Budget Execution,” to report these transactions. 3 When any portion of an amount transferred toDOEis to be returned to the transferring agency, the program office returning the funds shall request that DAAD prepare SF-1151. When the Departmentof the Treasury approves the transfer, DAAD shall forward one copyof the approved SF-l151to the Budget Execution Branch. The Budget Execution Branch then shall adjust the allotment and revise the AFPofthe program office involved.

II-8 6-8-92 DOE2200.5B Paragraph 5b(3) (1) J)efiniti~. Expenditure transfers are appropriation or fund account transfers between appropriation and fund accounts indifferent groups that represent payments, repayments, or receipts for goodsor services furnished orto be furnished. Such transactions include the following: (a) Withdrawals and credits between accounts, (b) All transfers between budgetary and nonbudgetary accounts, (c) Annual travel advance adjustments. (d) Adjustments to correct errors in expenditure transactions ,and (e) Withdrawals and credits between accounts nonspecifically definedas “nonexpenditure transactions .“ . . (z) ~. The following types of expenditure transactions each withdraw from one account and credit another; the Department of the Treasury records both sides of the transaction asan expenditure and repaymentor receipt (for further discussion of these types of expenditure transfers, see ITFM 2-2500): (a) Payments to other appropriations and funds as reimbursement or advances. including the following: 1 Payments for reimbursable goods and services, Z Advance payments required bylaw, 3 Advance payments to certain revolving and working capital funds, and 4 Advance payments tomanagement funds. (b) Transactions between budgetary and nonbudgetary accounts. including withdrawals and credits between a deposit fund account and an account in any other fund group. (c) Annual travel advance adjustments between the prior- and current- year appropriations for the amount of outstanding travel advances brought forward to the current-year appropriation. (3) Prmessina Fx!xm.diture Transfers Within an A!&IULY Location CO* General Accounting Office Optional Form 1017-G, -Journal Voucher,” oro;her approved forms shall be used to effect expenditure withdrawal sand credits or adjustments to appropriation, fund, a~d receipt accounts when the transactions affect only the accounts of the same agency location code. The expenditure withdrawal sand credits or adjustments covered in the II-9 DOE2200.5B 6-8-92 Paragraph 5b(3) ● journal voucher shall be lncludedin SF-224, “Statement of Transactions ,“ provided tothe Department of the Treasury. The initiating Field Element CFO(Field CFO) shall reta~n the journal voucher. (4) LDltl atina EX@?~xLL@meats Between Agencies Wlthla eD~~ SF-1081, “Voucherand Schedule of Withdrawal and Credits,” Is prescribed for useas acombined billing and payment document by agencies within the Department of the Treasury disbursing area, that is, agencies that report on SF-2240 “State- merit of Transactions.” to process expenditure withdrawals and credits between appropriations, between fund accounts. and between receipt accounts. When SF-1081 inappropriate for use, neither SF-l166, “Voucher and Scheduleof Payments,” nora Department of the Treasury check shall be used to effect the transaction. Field CFO’susing the Department of the Treasury’s Online Payment and Collection (OPAC) System will no longer use SF-1081. For additional guidance onthe SF-1081 and OPAC. seeITFM 2-2500. ITFM6-1OOOO. and DOE 2200.6, FINANCIAL ACCOUNTING, Chapter I, ‘Cash.”

(5) eiving an Fxp.g.nditure Transfer orA~w le of Wi~l and Credi W“ AField CFOrecelving SF-1081 must enter the voucher number, the appropriationto be charged, theaccountlng month in which the transaction will be reported, and the amount (which must agree with the billed amount). Once the transaction is verified as being proper, unaccomplished copy must be returned to the billing office for reconciliation. No copy of the SF-1081 shall be sentto the Department of the Treasury. The Field CFO shall complete paymentof the SF-1081 by reporting both thecharge to its appropriation and the credit to the billing office’ s appropriation on SF-224, *Statementof Transactions.” For detailed guidance concerning payment anddlsputesof billed amounts. seeI TFM 2-2500. (6) enditure Transfers Qirina Pavmentbv Che~ Outside the ~ ~.Where transactions involve apayingor receiving agency outside of the Department of the Treasury disbursing area-that is, agencies not submitting SF-224, “Statement of Transac- tfons’’-payment must bemade by check. In such instances when a check must bepaid toDOE, the Department shall charge the other Federal agencyon SF-108O, “Voucherf orTransfers Between Appropriations and/or Funds.” Other approved forms may be used in lieu of SF-1080. For detailed guidance on SF-1080 and other charge forms, see ITFM 2-2500. 6. QTHFR TYpFS OF ACCOUNTS AND THEIR ACCOl!lUING TRFATMWS . (1) Special Fund Rewpt A.rxQWS . are credited with receipts from specific sources that are earmarked by law forspeciflc purposes. Aspeclal fund , receipt accountls not generated from a cycle of operations as a revolving fund: however, at the point of collection the receipts are available 11-10 6-8-92 DOE 2200.56 Paragraph6b (2) (3) (4) immediately orunavailabl e for expenditure, depending upon statutory requirements. Special fund accounts are classified inthe5000 major class series of account symbols. Examples ofDOE special fund accounts are 5105, Payments to States Under Federal Power Act; 5154, Clean Coal Technology: 5180. Alternate Fuels Production: and 5227. Nuclear Waste Disposal Fund. Dust F~ipt~ are credited with receipts generated by the terms of trust agreements or statutes. At the point of collection, such receipts are also available immediatelyor unavallabl e for expenditure. depending upon statutory requirements. Trust fund accounts are classi- fiedinthe 8000 major class series of account symbols, such as8575. Advances for Cooperative Work. Trust Fund Fxc@diture AccQ.uJ&s are established to record amounts appropriated from special fund or trust fund receipts tobe expended for special programs according tospeclflc provisions of the law for special funds and to be expended in carrying outspeclfic purposesor programs accordingto the terms of atrust agreement or statute for trust funds. ~. (a) All receipts for credit tospeci al funds and trust funds shal lbe accounted for under receipt account symbols assigned by the Depart- mentof the Treasury. Requests for account symbols shouldbe forwarded toDAAD. (b) Available receipts shall be scheduled for deposit according tocol- lectlon procedures detailed in DOE 2200.6, FINANCIAL ACCOUNTING, Chapter I, “Cash.” (c) For funds that are available for expenditure. the Office of Budget shall lssuean AFP document and an allotment tothe cognizant recipient.

(d) The accounting entries forrecord~n9 the obligations and expendi - turesof these available funds are thesame as those forotherappro- priated moneys. DOE 2200.6, FINANCIAL ACCOUNTING, Chapter IX, “Reimbursable Work, Revenues, and Other Collections,- establishes policies for the acceptance and deposit of funds provided by non-Federal entities as partner shares of cosponsored projects. b. ~are established to receive advance payments from other agencies and forsubsequent disbursement ofthese advances through provisions oflaw. Consolidated working funds are credited with advances from more than one appropriation for the procurement of goods or services to be fur- nishedby the performing agency with the use of lts own facilities within the same fiscal year. These accounts are subject to the fiscal year limitations of 11-11 DOE2200.5B 6-8-92 Paragraph6b the appropriations or funds from which they are advanced. Anadvance to DOE represents a liability of the working capital fund pending delivery of the goods andservfces and shall rerecorded asa llabflfty. DOE currently does not havea consolidated working fund. Thfsmethod of financing reimbursement for goods andservfces provfded by one agency for another shouldbe used onlyfn Instances where arrangements for current bfllfngs and reimbursements are Impracticable and must be approved by the Department of the Treasury. Account- Ingforamounts recefved for reimbursable work fsdfscussedln DOE 2200.6, FINANCIAL ACCOUNTING, Chapter IX, “RefmbursableWork, Revenues, and Other Collections.” C* ~ areworkfng fund accounts authorized bylaw to facflf- tateaccountfng for adminfstratfon of intragovernmental actlvftfes other than a contlnufng cycles of operations. Management fund accounts recefve advances from two or more approprfatfons and are classfffed into a single accountfn order to finance actfvfty more efffcfently. These accounts areclassfffed as efther annual or no-year accounts, depending on the circumstances. DOE does not have a management fund account. Accounting fs the same asfora consolidated workfng fund account. d. Bevel vlng-Fu@kcwnM . (1) Revolving funds areauthorlzed by Congress to provfdeflnanclng for con- tlnufng cycles ofoperatfons, and receipts derived from such operations usually are avaflable fn their entirety for expenditure without further congressional actfon. Revolving funds may beclassfffed fnto two broad categories: those established to serve the needs of agenciesof the Federal Government andthoseestabl Ishedprfmarllyto serve the needsof the public. (2) Three prfnclpal actfvftfes of DOE have revolving funds that serve the publfcfn that they sell products to customers and generate revenues: the Bonneville Power Admfnfstratfon, the Western Area Power Admfnfstratfon, and the Isotope Production and Dfstrfbutfon Fund. Thefr revenues are deposited fnself-ffnanced revolving funds, whlchare usedto ffnance current operations. “Revolvfngfund” Inthfs fnstance has a much broader appllcatfon than lnparagraph6d(l). The Bonneville fund, for example, consfsts of all receipts, collections, andrecoverfes from all sources, Including trust funds, sales of bonds, and congressional approprfatfons. All these funds areavaflable for expenditure. Addftfonal accounting procedures for the Bonneville Power Admfnfstratfon, the Western Area Power Adminlstratfon, and the Isotope Production and Dlstrlbutfon Fund are maintained at the local level.

e. J2eposlt Futirecordrecefpts and subsequent expenditures of funds held fnsus- pensetemporarfly and later returnedor paldfnto Department of the Treasury recefpts upon determfnatfon of proper dfsposftlon. Deposit fund accounts are classfffedfn the 6000 major class serfes of account symbols. 11-12 6-8-92 DOE2200.5B Paragraph 7a(3) (1) IJ@Ts&&f@Qs~ti. The deposft fund liability account shall be credited for the following types of deposits: (a) Payroll deductions for savings bonds (89X6050) or State income taxes (89X6275) pending payment: (b) Deposits received from outside sources forwhich DOEls acting solely as a banker, fiscal agent, or custodian (DOE examples fnclude Accounts 896424, Advances for Cosponsored Projects: 896425, Payments by Alleged Violators of DOE Regulations: and 896427, Low-Level Radioactive Waste): (c) Moneys held by DOE awaiting distribution on the basis oflegal deter- mination, such as money in dispute between DOE and an outside party; and (d) Unidentified remittanceso which are credited as suspense items outside the budgetin account 89X6875. (2) ~n. Once the disposition ofa receipt is determined, the Field CFO shall remove the receipt from the deposit furtd account andrecord itin the applicable account or return it, as appropriate. (3) Review. Deposit funds shall be reviewed at least quarterly to ensure that moneys in the deposit fund accounts are transferred as promptly aspossi- bleto the credits of the applicable accounts or that they are refunded appropriately. 7. . Public LawlO1-510, enacted 11-5-90, amended subchapter IVoftitle 31, United States Code, to prescribe rules for determining the avail ability of appropriation and fund balances andto establish procedures foreclosing appropriation and fund accounts. a. D~n. The accounting terms associated with procedures for closing accounts are definedas follows: (1) (2) (3) ~~~ are increases or decreases in commit- ments, obligations, or expenditures. These adjustments include recording commitments, obligations. or expenditures made or incurred before expiration or cancellation of the account, but not recorded. ~ are accounts with unliquidated or unobligated balances that have been canceled. Once balances precanceled, the amounts are not available for obligation or expenditure for any purpose. fMdzaL&CJMtij inparagraph7is an order related to an ex~sttng contract under whicha contractors required to perform additional work. The term does not include adjustments relatedto an escalation clause ortoany other obligation adjustments. Italso doesnot apply to unexpired accounts. 11-13 DOE2200.5B Paragraph 7a(4) 6-8-92 (4) (5) (6) (7) Closed Accwnt Transactl m . refer to al 1 otments and correspond ng obl i ga - tion adjustments for closed fixed accounts where current-year funds are used to cover the adjustments. They are identified in the Financial Information System by status codeMM. Prior-year Deobliaations are obligations recovered from balances of expired appropriations that will be available for allotment fora 5-year period to fund obligation adjustments certifiedly field offices. Prior- year deobligations will be identified with a PYcodein the status code field of the accounting record. The PYcode (Prior Year Deobligations) will also Identify funds recovered because ofdeobligation of prior-year obligations unexpired and no-year appropriations. Funds withdrawn and recovered will notbe available foran obligation adjustmentor reobligation unless they have been reallotted.

kpired Awunts are appropriation or fund accounts inwhichthebal - ances are available for incurring obligations because the time available for incurring such obligations has notyet expired. Expired AccoUnLs are appropriation or fund accounts whose balances areno Iongeravailable for incurring new obligations because the time available for incurring such obligations has expired. There are various typesof expired accounts: ( a ) (b) (c) (d) ExDi ed Acmtmts Established ~ are expired acco;nts that contain unliquidated obligated and unobligated bal- ances: maintain their fiscal year identity for 5years; and are available for recording, adjusting, and liquidating obligations properly chargeable to those accounts. These accounts begin with balances that expiredon 9-30-89. ~are expired accounts established before 11-5-90 that contain unliquidated obligated balances and that have been merged with unliquidated obligated balances from prior years. Generally, Maccounts have been merged and titled according to appropriation general purpose. No new M accounts will beestabllshed, and existing Maccounts are being phased out. The last ones areschedul edtobe cancel eden 9-30-93. Urplus Fun& are expired accounts established before 11-5-90 with unobligated balances that have been restored to the individual expired accounts that original ly contained only the obligated bal- ances (see paragraph 7a(7)(b)). These balances no longer existas separate accounts. Neraed Surplus Authority comprises expired accounts established before n-5-90 that have balances that were avail able for upward adjustments to previously Incurred obligations and that were can- ce!edon 12-5-go. These are unobligated balances withdrawn by the Department of the Treasury for accounts tha’thave been expired longer than 2years. ● 11-14 4 . ‘ . 6 - 8 - 9 2 ( 8 ) ( 9 ) DOE2200.5B Paragraph 7b(5) Fixed Accounts . are appropriation or fund accounts with balances that are available for adefinite period of time. The fixed accounts comprise annual and multiyear accounts. The universeof appropriationor fund accounts consists of fixed accounts and no-year accounts. Wecorti ObliaatioM are obligations that were legitimately incurred before expiration of obligational availability but that were not recorded. For purposes of paragraph 7. unrecorded obligations are included in obligation adjustments. b. ~. (1) As of n-5-90, no new obligated balances will be transferred toM accounts. Instead, separate expired accounts for each fiscal year of each fixed account will be maintained by fiscal year identity for5 years. During this 5-year period, obligations maybe adjusted and disbursements maybe made from these accounts. (2) Unobligated balances will not be withdrawn from expired accounts: they will remain avail able for legitimate obligation adjustments. but not for new obligations. As of the end of the5th fiscal year after the period of obligational availability ends for each account, all obligated and unobligated balances shall be canceled and the expired account shall be closed. No obligational adjustments or disbursements may be made from closed expired accounts. F’or example, accounts that expired in fiscal year 1989 will be closed asof9-30-94. (3) Any unliquidated obligations and unobligated balances that precanceled after the 5-year period may bepaid from the current unexpired appropriation made for the same general purpose.

(4) Payment of an old balance from unexpired funds is limited tol percentof the unexpired appropriation made for the same general purpose. Specifically, the following limitations apply: (a) For an annual account, the limitationis lpercent of the annual appropriation for the account, not total budgetary resources. (b) For amultiyear account, the limitation oflpercentappl iesto the total unexpired funds available in the first year of the multiyear account. Thus, if amultiyear account for fiscal years 1992 through 1994 were enacted in fiscal year 1992 and the l-percent limitation were equal to $100,000, if$90.000 were used by the end of the fiscal year 1992, then the unused, unexpired portion ($10,000) would remain available for use during fiscal years 1993 and 1994. (5) No other budgetary resources may be considered in applying the l-percent limitation. Previously unrecorded obligations, as defined in paragraph 7a(9), may be paid from an unexpired accountas if they were canceled bal- ances. Paragraph 7g describes alternatives for payment of old balancesin excess of the l-percent limitation. 11-15 DOE2200.5B Paragraph 7b(6) 6-8-92 (6) When payments areto bemade from a current appropriation account for ● obligations ofa closed account, DAAD shall request a subclass account from the Departmentof the Treasury in order to record such payments on the Department of the Treasury’s books and shall report such payments monthly on SF-224, ‘Statement of Transactions.” Requests for subclass accounts must resubmitted in writing and include the purposeof the payment. The mailing address is: Budget Reports Branch Financial Management Service Department of the Treasury Liberty Center (UCP, Room 749) Washington. DC 20227 c. Transition Period for Fxistina MA.c_c_gunt Balw . (1) Except as noted in paragraph 7e, amounts transferred to M accounts before 9-30-90 will remain available for disbursement until 9-30-93. During this 3-year transition period, at the end of each fiscal year, any unobligated balance not used to offseta legitimate increase in obligationin an M account must be canceled and will not be available for restoration. (2) As of 9-30-93, any obligated balance in an M account will be canceled. Any payment associated with such abalanceor with the related account that comes due after 9-30-93 may bepaid from the unexpired appropriation made for the same purpose, subject to the following limitations: (a) No more than lpercent of the u~expired appropriation ortheunex- pendedbal anceof the original appropriation, whichever islesso may be used to pay any canceled balance (see paragraph 7b(4) for treatment of annual and multiyear appropriate ens). (b) No payment may be made that would cause cumulative outlays to exceed the unexpended balance of the original appropriation. The CFO shall arrange to track the determinable unexpended balance of each appropriation in an M accountto ensure that the limitis not exceeded. d. Approvinu aml-k.p.p.g Obligation ~ to FUed. Closed. and MAQzuI&. (1) There are specific reporting and approval requirements for obligation adjustments related toa contract change, whichis an order relatedto an existing contract under whicha contractors required to perform additional work. (2) Certain obligation increases related to a contract change must be approved in advance by the Secretary (S-l) or a designated officer inthe Secre- tary’s immediate office. Approval must bereque+ted when a transaction will cause cumulative increases at the appropriation level for contract changes during a fiscal year to exceed $4 million. ●

11-16 . . 6-8-92 DOE2200.5B Paragraph7f (3) Contract changes that resul tln cumulative adjustments of$25 millionor more at the appropriation level duringa fiscal year also require special approval. Such a pending obligation must bereportedln writing bythe Secretary, in advance ofobli9ation. to the appropriate authorize ngcom- mittees of Congress and to the Committees on Appropriations of both the House of Representatives and the Senate. The report must include a description of the legal basis for theobli9ati0n and the policy reasons for the obligation proposed. The obligation may not be made or recorded in the Financial Information System until 30 days have elapsed following submissionof the report and until obligational authority is allotted. OMBmay set cumulative levels, currently set atthe appropriation level , but not amounts. e. cellation of 5-Year-Old Mkci?unt Obliaati~ . (1) (2) (3) (4) (5) Any unobligated and unliquidated obligations balances that werein M accounts longer than 5years (accounts that expiredby theend of fiscal year 1983) were canceled and withdrawnas of 3-6-91, except under eitherof the following circumstances: (a) There was documentary evidence that apayment should have been made by 5-5-91. (b) The obligation was necessary for severance payments for foreign nationals. Any residual balances after 5-5-91 were withdrawn and canceled effective 5-6-91. Department of the Treasury Bulletin 91-03, “MergedSurpluses, Closed Accounts, M Accounts and Fiscal Yearend Reporting.” of 12-31-90, contains guidance for canceling. withdrawing, and reporting these 5-year-ol d M account obligations. The Departmentof the Treasury will revise ITFM 2-2000 and ITFM2-4200 to include these new requirements. At the end of each fiscal year after 1991, any unobligated and unliquidated obligations balances that have been inM accounts longer than 5 years must be canceled. This rule applies to accounts that expired atthe endsof fiscal years 1984 through 1988. For accounts that expired atthe endsof fiscal years 1984 and 1985, obligated balances must be canceledat the end of 9-30-91 (the source documents will identify the fiscal year). For example, accounts that expiredat theend of fiscal year 1984 mustbe cancel eden 9-30-91. Obligations related to these canceled balances may be paid from unexpired (that is. current) appropriations, subject to the limitations statedin paragraphed. For payment alternatives, see paragraph7f. f. ~.~he availability for expenditure ofa specific account may be changed throu9h specific legislative authority. Where the nature of the program requires disbursements beyond the 5-year period, the Office of Budget shall submltproposed chan9es to appropriation 11-17 DOE2200.5B 6-8-92 Paragraph7f i7. h. i. j. Ianguage for approval bythe OMB budget examiner. The office should request this authority only if payment of old balances from unexpired funds (basedon historical outlay data) would regularly exceed the l-percent limitationor would severely impact the current program. Absent thisOMB authority. DOEmust seek reappropriation ofa canceled balance and must defer payment until the appropriation is available. Inmost instances, payment of canceled balances will not reeligible for funding from the Department of the Treasury’ sGeneral Claims Fund.

lication of the l-Percent Limitation . The l-percent limitation isa single, cumulative limit, and all aspects of the Anti-Deficiency Act are applicable to fund limitations. In nocase may more than l percentof unexpired funds be usedto pay any combination of canceled obligations (see paragraph7b for treatment of annual and multiyear appropriations). This authority also may not beused to exceed an original appropriation. The Financial Information System will track the unexpended balances ofall expired appropriations not cancel edto prevent overpayment. For obligations pertaining to closed accounts, the Budget Execution Branch shall maintain balances and ensure that the l-percent limitation is not exceeded. IWg.ed Sur~. All merged surplus authority was canceledon 12-5-90. Conse- quently, merged surplus amounts are no longer avail able for restoration toDOE accounts and should be removed from Departmental records as available funds. This appliesto accounts with obligational authorities that expired at the end of fiscal year 19880r before. The Department of the Treasury will take the necessar y steps to cancel and restore merged surplus funds. Merged surplus authority is not to be confused with withdrawn surplus authority. ~.Following the closeof each fiscal year, the Secretary shall submit to the President. the Secretary of the Treasury, and Congress a report regarding unliquidated obligations, unobligated balances, canceled balances, and adjustments made to appropriation accounts during the completed fiscal year. Thereport is due 15 daysafter the President’ sb~dget is submittedto Congress. The Department of the Treasury will issue implementing instructions. QmdmMmm. appropri- the (1) Some collections are authorized or required to be credited toan ation or fund account. when such collections are received after account is closed, they shall be depositedin miscellaneous receipts. Collections would typical lyoccur for administrative accounts receivable, reimbursable work, or refunds. (2) Audit requirements, lim~tations on obligations, and reporting require- mentsthat areapplfcabl eto an unexpired account shall continue to apply to that account after theend of the period of availability for obligation or expenditure of that account. 11-18 6-8-92 DOE2200.5B Paragraph71 (3) The President orthe Secretary may Close an account available for an indefinite period (no-year account) if its purpose has been fulfi lledand if no disbursements have been made for2 consecutive fiscal years. k. &portio~ent Proc_. Except as otherwise determined byOMB, DOEis required to request thatl percent of every account shall be separately appor- tionedat the beginning of the fiscal year for the purpose of paying legitimate obligations related to canceled and closed appropriations. To the extent that DOE does not needto use these funds for paying such obligations, the Department may request reapportionment of such funds. Also. to the extent that supplemen- tal appropriations are enacted, reapportionment of the ”l-percent” funds may be requested. The Office of Budget shall issue implementing instructions. 1. Anti -Deficiency Act Violati~ . Asa result of the new rules and proceduresin determining the avail ability of appropriation and fund balances, changes were madein determining whether there has been a violation of the Anti-Deficiency Act. These changes have been included in Chapter I, “AdministrativeC ontrol of Funds, ” paragraph 7. 11-19 (and 11-20) 6-8-92

CHAPTFRJU FOR OBl~ DOE2200.5B . . 1. llmmumm. a. ~. This chapter prescribes general requirements appllcableto incurring, recording, and reporting obligations. Illustrative entries for recording obligations arein DOE22OO.1OA, ACCOUNTS, CODES, AND ILLUSTRATIVE ENTRIES, Chapter III, ‘Accounting Entries.” b. Applicability. This chapter appliesto all Departmental elements. This chapter does not apply to integrated contractors. C. W. Departmental policy for obligationsis as follows: (1) (2) (3) (4) (5) (6) (7) (8) (9) Obligations must be incurred for the purpose for which they are intended and within the time limits applicable to the appropriation. Unless specified otherwise bylaw, afiscal year appropriation maybe obligated only tomeeta bona fide need arising in the fiscal year(s) for which the appropriation is available. Adequate controls must be exercisedto ensure that fund limitations are not exceeded. Each obligation mustbe recorded when eras soon as possible after the event that gives riseto it, but inno case later than the endof the month in which the event occurs. Every valid obligation must rerecorded, even when authority for the obligation has been exceeded with regard to dollar limitations, purpose, or time constraints. Guidance covering avail ability of prior-year funds isin Chapter II, “Accounting for Appropriations and Other Funds,” paragraph. Each obligation must be managed effectively from the point of inception through cost and payment or deobligation. At least annually, acomplete reviewof all unpaid obligations mustbe conducted, and all unsubstantiated obligations and excess funds mustbe deobligated. Recovery offunds obligated in prior years must be recorded and reportedas such, unless otherwise excluded. These funds may bedeobligated at any time, but they shall not be available for reuse until they have been formally allotted. Documentary evidencein support of obligations must be maintained. 111-1 DOE2200.5B Paragraph2 2. ~. 6-8-92 a. b. c. d. e. Before obligations can be legally incurred, appropriations for that purpose must be madeby Congress and apportioned by the Office of Management and Budget (OMB). except in those cases where there is specific statutory authority for executing contracts without appropriations. Further discussionof the avail- ability of appropriations is in Chapter I, ‘Administrative Control of Funds,” and Chapter II, “Accounting forAppropriations and Other Funds.” Contingent liabilities are discussed in DOE 22006, FINANCIAL ACCOUNTING, Chapter VII, “Liabilities.” Except as otherwise provided bylaw, each sum appropriated shall be applied solely to the purpose for which itis intended, andto no other. Atime-limited appropriation is available for obligation only during the period for whichit is authorized, but it remains available for adjustments, including previously unrecorded valid obligations, and expendituresto liquidate valid obligations for5 additional years. Allottees administering appropriated funds shall be responsible for ensuring that the amount obligated under any particular statutory limitation does not exceed the limitation and for establishing such records or accounts and preparing such reports as maybe necessary to ensure compliance with the limitation. An amount shall be recorded as an obligation only when it is supported by documentary evidence of one of the following (31 U.S. C. 1501(a)):

(1) Abinding agreement between an agency and another person (includingan agency) that fulfills both of the following criteria: (a) In writing, inaway and form and for a purpose authorized bylaw, and (b) Executed before theend of the period of availability forobl igation of the appropriation or fund used for specific goods to redelivered, real property to be boughtor leased, or workor service tobe provided: (2) Aloanagreement showing the amount and terms of repayment; (3) An order required bylaw tobe placed with an agency; (4) An order issued under a lawauthorizing purchases without advertising under any of the following conditions: (a) When necessary becauseof a public exigency, (b) For perishable subsistence suppl ies,and (c) Withfn specificmonetary limits; III-2 6-8-92 (5) (6) (7) (8) (9) DOE2200.5B Paragraph4a Agrantor subsidy payabl eunderany of the following conditions: (a) From appropriations made for payment of, or contributions to, amounts required to be paid in specific amounts fixed by law or under formulas prescribed bylaw. (b) Under an agreement authorized bylaw, and (c) Under DOE-approved plans consistent with and authorized bylaw: Amiability that may result from pending litigation; Employment or services of persons or expenses of travel under law; Services provided bypubl ic utilities; and Other legal liability of the Government against unavailable appropriation or fund. 3. ~OF FUNDS. In accordance with Chapter I, “Administrative Control of Funds,” funds shall be reserved prior to incurring obligations. A reservation (also referred teas “commitment”o r’ ’initiation” )offunds is a budgetary and accounting action taken to reserve funds to insure that funds are available before contractual documents are consummatedor to insure that funds are available for current-year requirements for travel, payroll, or miscellaneous noncontractual obligations. A reservation permits the processing of obligations upto the amount of the reservation without recertification of funds availability. If an obligation will exceed the amountof the reservation, then funds mustbe recertified. A reser- vation is recorded each time a program release document is created and funds are certified as available. Reservations also are recorded for expected payroll expenditures. contingent liabilities, and other anticipated expenditures. Fund reservations are valid only during the fiscal year inwhich they are executed. If funds are notobllgated bytheend of the fiscal year, anew reservation offunds must be made in the new fiscal year. 4. ~.One of the primary means of control of appropriations by Congress isby placlng time llmitson their availability. Atime-l imitedappro- priation is available for obligation only during the period forwhich itis made, but it remains available for 5years for adjustments, including previously unre- corded valid obligations, and for expenditures to liquidate properly made obliga- tions. The numbering system for identifying appropriations is in Chapter 11, ‘Accounting forAppropriations and Other Funds.” Classified on the basis of duration, appropriations areof fixed duratfon (annual and multfpleyear) andno year. An appropriation is assumed to bean annual appropriation unless the appropriation language specifically states otherwise. a. wal~ropriations. An annual appropriation (also called afiscalyear ora l-year appropriation) is made for a specified fiscal year and is available for obligation only during the fiscal year forwhich itwas made. Unless specified otherwise bylaw, the appropriation is available only to meet bona fide needs of

III-3 DOE2200.5B Paragraph4a 6-8-92 the fiscal year for which itwasapproprl ated. If annual funds arenotobll- gatedby the end of the fiscal year forwhich they were appropriated, they areno longer available for obl~gatton and are saldtohave ’’expired.” Expfred accounts matntain their fiscal year identity for 5years and are available for recording, adjusttng, and liquidating obligations properly chargeableto those accounts. Further discussionof fund availabilityis in Chapter II, para- graph. Unless specified otherwise bylaw, the bona fide need rule (applicable only for annual or multiple-year funds) means that obligations maybe incurred only to meet needs arising in the current fiscal year. For example, suppose that as the end of afiscal year approaches, a program purchases a truckloadof stores Inventory when Itis clear, based occurrent usage, that lt already has in stock enough stores inventory to last several years into the future. It would appear that the program is merely trying touseup its appropriation before itexplres, and the purchase would violate the bona fide need rule. Determinationof what constitutes abonafide need for afiscal year depends largely onthe facts and circumstancesof each case. The following are some Instances of bona fide need: (1) Del ivery of Materials Beyond the Fiscal year . An obligation can bemade against current-year funds for materials to redelivered andpaidforln the next fiscal year if delivery is not possible within the current fiscal year and ifthe goods are not standard commerci al items that are readily available from other sources. (z) ~. If aservice contractual lsfor aproduct (for example, a report), then the entire amount maybe obligated against the current-year appropriation. If the service contract simply provides fora continuing service, then only the amount of services to be providedin the current fiscal year maybe obligated. (a) If a contract performance period has extended beyond the period of availabilityof a fiscal year appropriation and it becomes necessary to terminate the contract because of contractor’s default orfor convenienceof the Government in response to a court order or deter- mination by another competent authority that the contract award was improper, the moneys remain available tofund a replacement contract provided that the following are true: I The original award was made in good faith, Z The agency has a continuing bona fide need for the goods or st?rvices involved. a The replacement contract is of the same size and scope as the original contract, and ~ The replacement contract is executed without undue delay after the original contract is terminated. III-4 . 1 - 6-8-92 DOE2200.5B Paragraph 5a(2) (b) If acontract is determined to be invalid and canceled rather than terminated. no binding agreement is considered to have ever existed, and the original funds cannotbe regarded as having been obligated; therefore, in the case of a cancellation. the original funds are not available to fund a “repla cementc ontract” in the following fiscal year (38 Comp. Gen. 190(1958)). b. Mul tipl e-Year Ap.fu4wi ations . A multiple-year appropriation is available for obligation for adefinite period in excessof lfiscal year. Except for the extended period of availability, a multiple-year appropriation is subjectto the same restrictions applicable toan annual appropriation and remains avail- ableas an expired account for5 years following the definite period, for recording, adjusting, and liquidating obligations.

c. Jjo-Year ADpror)riatioM . Ano-year appropriation is available for obligation without fiscal year limitation. All statutory time limits on when the funds may be obligated and expended are removed, and the funds remain available for their original purposes until they are obligated and expended. In addition to the restrictions that maybe imposed by the apportionment, thereis an important statutory restrictionon the availability of no-year funds. An appropriation account available foran indefinite period shall be closed. and any remaining obligated or unobligated balance in that account shall be canceled and there- after shall not be available forobl igation or expenditure for any purposeif the following are true: (1) The Secretary or the President determines that the purposes forwh” appropriation was made have been carried out, and (2) No disbursement has been made against the appropriation for2 cons{ fiscal years. 5. TYPES OFOB~ . a. Q2MzKLs. chthe cutive (1) ~ Contracts. An obligation shall be recorded based onan inte- grated contract or contract modification that normallyis supported bya locally issued approved funding program providing for operational requirements of the current year. It is essential that each contractor”s cost and outstanding commitment levels be followed closely to ensure that the program being carried out does not exceed funds obligated onDOE’s records. Approved funding programs issued to contractors shall be con- sistent with amounts obligated by DOE, including appropriate adjustments and limitations intheevent ofa continuing resolution. (z) ~.Obligations shall be recorded forthe total amount stated in a firm fixed price contract when the contractis executed. An exceptionto this policy ismade if the, contract contains a limitation of Government obligation clause and the project has been approved through the budget process for incremental funding: then the contract may be III-5 I DOE2200.5B Paragraph 5a(2) 6-8-92 funded incrementally: that is, obligations maybe recorded to cover termination costs and current-year requirements only. When the termi- nation costs decline as the project approaches completion, the obligations shouldbe reduced accordingly. (3) ed Price Cmtracts with ~lation. Price R~on. or Incx.n- tive Provisions. When afixed price contract is executed, an obligation shall be recordedin the amount of the price stated in the contract orin the amount of the billing price if the contract incl udes an incentive clause. The initial obligation shall includean amount to cover the expected payments to be made under thevariabl e conditions of the con- tract, such as engineering services, prepaid transportation, and con- tainer deposits. The recorded obligation shall be adjusted to cover price revisions atthe time the revisions are determinedin accordance with the contract. (4) Cost Reimburse ent Contracts@ Time and Material Contracts include cost plus fixed fee~cost, cost sharing, cost plus incentive fee, cost plus award fee, time and material, and labor hour contracts. When a contracts executed. an obligation shall be recorded in anamount notin excess of the total estimated costs, including the fixed fee in thecaseof acost plus fixed fee contract and the target fee in the case ofa cost plus incentive fee contract. Adjustments to the initial recorded obligation shall be made otily when they are supportedby properly executed modifications to the contract. (5) Indefinite-Del iverv-TY?e Contracts .

(a) Qpen-End or Indefinite (MntitY Contracts include ’’call” contracts, “options” contracts, “as desired-or-wish, want, orwill” con- tracts, “basic agreements” and ”basic ordering agreements.” ”blanket purchasing agreements” for small orders, and ’’indefinite delivery contracts.” These contracts are collectively termed “openend” because they place no obligation onthe Government, regardless ofits requirements. to place orders beyond any stated minimum quantity. Funds for the stated minimum quantity are obligated upon executionof the contract. Funds for any quantityin excess of the stated minimum are obligated upon issuance of the order. (b) ~ provide for deliveriesof definite quan- tities of specific goods or services for fixed periods, with deliver- Iesscheduled at designated locations. DOE is obligated to purchase the quantityof supplies or services designated in the scheduleof a definite quantity contract. Depending upon the situation. adefi- nite quantity contract may provide fora fixed unitora fixed price. The entire contract amount is recorded as an obligation against the appropriation available at the time of contract award. (c) ~ts ContrWprovideforfi Iling’all actual purchase requirements for specific goods or services during specified con- ● tract periods, with deliveries to rescheduled by placing orders with III-6 . . . . 6-8-92 DOE2200.5B Paragraph 5a(7)(c) the contractor. Because a contractor does not normally incur expenses against the contract and DOE does notincur alegal obliga- tionto pay until a delivery order is issued, the obligationis recorded when the dellvery order is Issued, andltls based on the dollar limitation affixed to the delivery order. (d) IAsk Order ~are usually service-related contracts that are awarded for specific performance periods. Subsequent to the awardof sucha contract, atask orderis issued to the contractor. The task order provides the scope ofwork, the deliverable. and the expected cost for the deliverable. Becausea contractor does not normally incur expenses against the contract and DOE does notincur a legal obligation to pay until a task orderis issued, the obligation is recorded when thetask orderis issued, andltis based on the dollar limitation affixedto the task order. (6) ~. The DOE obligation for a contract under specific statutory authority (such as the acquisition of source material or utility services) shall be recorded at the beginningof each month or quarter for the estimated deliveries during that period. At the end of each fiscal year. the unpaid obligation under the contract shall be adjusted to the actual or estimated amount then determined to be due for deliveries actually received through the endof the fiscal year. If con- tracts for procurement of source materials or utility services under spe- cific statutory authority require DOE to pay for all ora portion of special facilities constructed for purposes of carrying out the contract and if the unamortized portion of the costof such facilities automati- cally becomes due when the contract is canceled, the DOE liability for the unamortized portion of thecost of such facilities shall be obligated only when the contract is canceled. (a) (b) (c) Contracts Authorizing Variations in CUr&lWs An obligation shall be recorded when acontract is executed and only”in the amount and for the quantity specified for delivery, exclusive of permitted varia- tions. The amount sorecordedshal 1 be increased or decreased to cover the amount for the quantity actually delivered and accepted.

CQKIIJJ are contracts or agreements that contain more than one type of obligation. The total amount to rerecorded as an obligation upon execution of such a contract should bethe sumof amounts arrived atas appropriate for each of the various types. ~ involve procurement of 1 and and interest inland. buildings and other structures, additionsto buildings, nonstructural improvements, and fixed equipment. Obliga- tions shall be established upon exe~ution of the contracts for the total amounts involved, in the absence of incremental fundingas described in paragraph 5a(2). I DOE2200.5B 6-8-92 Paragraph 5a(7)(d) (d) ~ convey the right to ““ PrW- ● ertybelongfng to others foraperlodof t~meln return for paymentof rent under terms set outin a contract. Leases fundedby annual appropriations may not exceed the fiscal year unless alongertermls speclfical lyauthorlzed byleglslation or the General Services Administration delegates long-term leastng authority for specific circumstances. Therefore, the obligation using annual appropria- tions will normally delimited to the period of availability of the appropriation. DOE may lease property for more than lyear provided that no-year funds are obligated for the full term of the lease. However, if such alonger term lease includes a cancellation clause, the obligation shall be limited to only the amount required for the fiscal year plus the required cancellation payment. Long-term leases without cancellation clauses in the contracts mayunnecessar- ilytie upfunds for long periods, and they are generally not consis- tent with good financial management. Additional details are provided in DOE 4300.1 C, REAL PROPERTY MANAGEMENT, of 6-28-92. (e) ~. A letter contract, or any amendment thereto, must be sufficiently specific and definitive to show the purpose and scope of the contract final lyto be executed and, when accepted inwriting by the contractor, shall constitute docu- mentary evidenceto support the recording of an obligation at the time the document is executed. The obligation shall be recordedin the amount stated as themaximum under the letter or amendment. The maximum shall be the amount necessary to cover costs and commitments ● to be incurredby the contractor before the executionof a definitive contract. The obligation so recorded shall be increased or decreased to the amount provided for in the definitive contract when itis exe- cuted. If the letter merely indi catesthe Government’s intentionto enter intoa contractual relationshipat a later date, the amount involved shall be treated as preservation rather than an obligation. (f) ~. For condemnation proceedings, theesti- mated priceof theland at the time the Attorney General is requested to start the proceedings, adjusted tothe amountof thepayment tobe held in escrow when there is a declaration of the taking, shall be obligated. (g) ~ital l@aMare defined in DOE 2200.6, FINANCIAL ACCOUNTING, Chapter VI, ‘Plant and Capital Equipment.” Each lease shall be obligated for the entire amount of the lease. b. Iicants. Grant obligations are incurred at the time unauthorized contracting officer signs the Notice of Financial Assistance Award. The grantee need not sign the Notice of Financial Assistance Award, accepting the award, for the obligation to reincurred and recorded. Once funds have been obligated fora grant, amodification or an amended Notice of Financi~l Assistance Award, signed byan authorized contracting officer, is required todeobligate funds. This appliesto anewly awarded grant not accepted by the grantee, toareduc- tionin an amount previously awarded, andto acloseout adjustment tothe

III-8 6-8-92 DOE2200.5B Paragraph 5f balance ofaDOE obllgat~on. DOE4600.lA, FINANCIAL ASSISTANCE PROCEDURES MANUAL. of 4-1-87, treats the various steps in the grant process in detail . C . hmhw9da. obligations purchase orders for materials d. ~. (1) s SalariM . At shall rerecorded in the amounts stated in the or services atthe time they are issued. the close of each pay period. the actual amounts earnedby and paid to employees during the pay period from computations based on payrolls shall be obligated. Additionally, each month theesti- mated amounts due but not paid to employees are accrued and obligated, and this obligation is adjusted or reversed in the following month. (z) ~.Living and quarters allowances; equal- ization allowances under title5, section 3373, of the United States Code: and employers’ shares of contributions to retirement funds. insurance premiums, and Federal Insurance Contributions Act and medicare taxes are obligated at the time employees’ salaries are earned and obligated as stated in paragraphed. Other allowances, such as uniform allowances and incentive awards, are obligated when they become payable to the employees. Severance payis obligated for the pay period covered. ona pay-period-by-pay-period basis. Annual leave for DOE employees isobli- gated when it becomes due and payableas terminal leave, orwhen otherwise specifically authorized bylaw, rather than atthe time the leave is earned. e. Travel. Travel is obligated on the basis of approved travel orders issued and includes the total estimated transportation and employee travel expense for lodging, perdiemo rented or privately owned vehicles. registration fees, and incidental travel expenses. For temporary-duty travel that does not span fiscal years, an estimated amount for all travel and related expenses is recorded as an obligation and adjusted to the actual amount upon settlementof approved vouchers and receipts. For temporary-duty travel that spans fiscal years, the travel expenses are obligated in the fiscal year when the actual lia- bilityto the Government is incurred. Expenses that shouldbe obligated during the fiscal year when travel commences are all transportation expenses from and to thetraveler’s duty station: per diem and miscellaneous costs incurred before the endof the fiscal year; and any other costs requiring payment in the current fiscal year, such as conference or seminar registration fees. All other expenses that relate to the next fiscal year (normally, per diem andmis- cellaneous costs) are obligated when funds are made available at the beginning of the next fiscal year, either from newappropri ationsor from allotted carryover for no-year appropriations. For permanent-change-of-station travel, an obligation is recorded against the current-year funds in which the emPloYee is issued the travel orders. f. ~.When Government bills of lading, other corn- mercial contracts, and intragovernmental orders for specific transportation are awardedor issued, funds are obligated. Atyearend, transportation that has not commenced is excluded; however, such an excluded item shoul dbe III-9 DOE2200.5B 6-8-92 Paragraph5f recorded as anobllgation of thesucceedtng fiscal year lfthetransportatlon ● Is still expected to bemade. In the case of expenses for shipment of household goods and for other change-of-station expenses, an obligation shall be recorded against current-year funds when the employee is issued travel orders. Theobligatlon shall remain recorded until it isllquldatedby payment, modification, or cancellation of the travel orders.

9 . ~. Normally, at the close of each month the estimated or actual amounts for metered services received in that month are obligated. h. ~. The Economy Act of 1932 (31 U.S. C. 1535) Isan exampleof an authority that allows DOE toenter Into agreements, to either acquire orprovlde goods orservlces. with other Federal agencies. DOE 2200.6, FINANCIAL ACCOUNTING. Chapter IX, “Reimbursable Work, Revenues, and Other Collections,” provides the policies for funds-in agreements, and DOE 2200.5B, FUND ACCOUNTINGO Chapter II, “Accounting for Appropriations and Other Funds,” provides the policies for funds-out agreements. (1)~. An agreement made by DOE with another Federal agency for the furnishing of material s or services that are chargeableto DOE’s appropriations shall rerecorded as a valid obligation for the full amount stipulated in the agreement asofthe date ofaccep- tance. However. for agreements issued under the authority of the Economy Act. the amounts obligated under appropriations other than no-year appropriations must bedeobligated by DOEto the extent that they have not ● been obligated by the performing agency. When the agreementis executedby a transfer appropriation (SF-1151, “Nonexpenditure Transfer Authorize- tion”), the obligationls recorded basedon the obligation reportedly the performing agency on Its SF-133, “Report on Budget Execution. ” (z) ~. Funds provided under reimbursabl e agreements areto be used solely for the intended purposes andin accor- dance with the legal and other limitations imposed on theuse of funds as specified in the agreements. Failure to adhereto these limitations constitutes an unauthorized use of funds and a potential violationof title 31, section 1301, of the United States Code. (a) ncieswlth No-YeaJQ@proDri atl~ Because no-year funds are avail able indefinitely, DOEmayobli~ate these funds tothe full extent of the agreement when the requirements of this chapter are met. (b) ~. when the ordering agency’s funds availability for obllgationls restricted bythe appropriation actto the fiscal year, DOE must obligate funds accord- ingly. For DOE to incur an obligation applicable to such funds for work to be performed in succeedlngyears, theobligatlon must meet both abonafide need of the current fiscal year and the requirements of a valid obligation (see paragraph 2e). Under the Economy Act, any ● unobligated funds asofthe last day of the fiscal year applfcableto 1 111-10 , . * . (3)~. As contractors have the option of presenting their cl aims directly to the U.S. Court of Cl aims, the finance office shall obligate funds In the same manner as described ln paragraph 5j(2). 6-8-92 DOE2200.5B Paragraph 5k(l) agreements under fiscal year appropriations must be reported promptly to the ordering agency and areno longer available for obligations. There is, however, an exception for Economy Act agree- ments that also cite the Project Order Law(41 U.S.C. 23). Project order interagency agreements are sometimes used by military depart- ments for ordering work and materials under the provisions of the Project Order Law. Unlike other Economy Act transactions, aproject order agreement is not required to bedeobligated at yearend if the performing agency has not incurred valid obligations under the agreement.

f. ~. In some instances. the law requires that orders for suppliesor services be placed with certain Federal agencies operat- ingunder self-sustaining, revolving, or working-capital funds establishedby law. An obligation shall be recorded atthe time the order is issued to the other agency, even though the work maybe completed or supplies may be delivered during the ensuing fiscal year. Such orders shall be reviewed annually. j. claims. (1) Tort Claims. In the case of an award, compromise, or settlement ofatort claim byDOEin an amountof $2,5000r less, funds are obligated. on the date of the award, compromise. or settlement (28 U.S.C. 2672)0 outof appropriations made available to DOE. An award, compromise. or settlement in excess of$2,500 shall be disclosed as a contingent liability but shall be paid by the General Accounting Office under the Permanent Appropriation (31 U.S.C. 1304(a)), in accordance with the instructions foundin DOE 2200.6, FINANCIALACCOIJNTING, Chapter VII, ’’Liabilities.” (2) ontractor Claims Before the Board of Contract ADtieal~ Insufficient funds are not obligated under the contract, the Field Eiement Chief Financial Officer (Field CFO) obligates funds in either of the following cases: (a) whena compromise or settlement agreement in favorof the contractors effected while a claim is before the Board of Contract Appeals (BC-1), onthedate (eras soon after the date as possible) of the compromiser settlement agreement, and (b) if the board decision is adverse to DOE, on the date the decision becomes final (30days after receipt of the decision by either party, unless either party requests board reconsideration within the 30-day period). The status of aboard decision can be ascertained by checking with the board recorder. k. Transfers. (1) YOne DOF Office for Ano~ . When the performing office (or cost-type contractor) enters into an interoffice agreement based upon a certified request to perform work for which funds have been 111-11 DOE2200.5B 6-8-92 Paragraph 5k(l) reserved from another DOE office for the transfer of both the cost and the ● payment, the performing office shall not record the obligation inits accounts but rather shall send the requesting officea copy of theobliga- tion document. The requesting office shal 1 recorda reservation upon issuing the certified request and an obligation asofits effective date upon receipt of the obligating document. Accounting for transfers is covered further in DOE2200.9B, MISCELLANEOUS ACCOUNTING. Chapter VII, ‘Transfers.* (2) J~ials am@@mmt When both the cost and the payment for transfersof DOE-owned (nonexcess)\ateri alsor equipment are transferredto the receiving office, the receiving office shal 1 recordan obligationof funds upon issuance of the interoffice agreement to the performing office to avoid the possibil ity of violating the Anti - Deficiency Act. The transferring office shall record adeobligation upon receipt of the approved interoffice agreement. The transfer of excess materials and equipments a nonfund transaction and does not require obligation. (3) tsin Amounts A~g. In theevent of any potential increase in the amount of an obligation foran interoffice transfer, the performing office shall promptly request amod- ification to the interoffice agreement from the requesting office priorto incurring the obligation. The obligation adjustment shall be supportedby the obligating documents. Upon receiptof the documentation, the request- ing office shall adjust the amount obligated. Attheend of the fiscal ● year, the requesting office shall inquire of the performing office whether any decreases have been madein the amount obligated so that unliquidated funds may bedeobligated accordingly.

1. hter~. DOEls not liable for interest unless it has consentedto be liable for interest, either by the enactment of legislationor by contractual agree- ment. When DOEis liable, the Field CFO shall obligate interest for the amount that is owed during the reporting month. m. lsm.s. DOE can make loans only when it is authorized to do so by enabling leg- islation. A loan agreement is essentially contractual in nature; therefore, to have a valid obligation there must be aproposal by oneparty andan acceptance by another. Approval of the loan application must be communicated tothe applicant during the fiscal year to recharged, and there must be documentary evidence of that communication. If aloan applicationis made in one fiscal year and approval is not communicated to the applicant until the following fiscal year, the obligation is chargeable to the lateryear. When the amountof a loan andthe termsof repayment are agreed upon in the application, electronic notificationof approval is legally acceptable. To supporta recordable obli- gation, the agreement must be definite and specific. The loan agreement shall be obligated for the total amount of the loan. and itis not reduced by collect~onon the loan. n. ~. A F~deral loan guarantee is treated as a contingent liability rather than an obligation of funds. When aloan is guaranteed, no 111-12 — 6-8-92 DOE2200.5B Paragraph6a obligation of funds occurs untfl DOE becomes legally requlredto honor its guarantee, general ly upon default by the borrower. The total amount of the guarantee orthe sumof the unpaid principal and applicable accrued interest, whicheveris lower. shall be obligated upon receipt of documentary evidenceof the default. The documentation may bein the form ofa demand from the lender for payment of the defaulted loan. If funds have not been appropriated, aloan fromthe Department of the Treasury may be secured. if authorized bylegisla- tion, to make a timely payment. Inthis evento therequest fora supplemental appropriation must include the total due the Department of the Treasuryo including interest calculated basedon the expected payment date. Theprinci - pal and interest are obligated upon receipt of the allotment. For further information on loan guarantees, see DOE 2200.6, FINANCIAL ACCOUNTING, Chapter VII, ‘Liabilities. a o. _Forecl~. The cost of foreclosure shal 1 be obligated when the cost is identified and authorized in accordance with aloan default or delinquent receivable settlement action. p. JWne.nts in Lieu ofTWare discretionary payments made to render financial assistanceto States and local governments inwhich DOE has acquired property previously subject to State and local taxation and onwhich the Department carries outactivitles authorized by the Atomic Energy Act of1954. as amended. Funds budgeted for payments in lieu of taxes must be specifical Iy identifiedin the documentation supporting the budget request. In accordance with Office of Management and Budget (OMB)Circular A-340 “Instructionson Budget Execution,” payments in lieu of taxes are recordedas obligations in the periods inwhich they are authorized to bepaid and due. See also DOE 2100.12A, PAYMENT FOR SPECIAL BURDENS AND IN-LIEU OFTAXESO of 6-9-92, for additional information.

6. ~ occur under many conditions, for example, final liq- uidation ofan amount different from the original obligation, initial obligation determined tobe invalid, difference from previously recorded estimate, andcor- rection of bookkeeping errors. Deobligation is statutorily required forappropri- ations obligated underan Economy Act agreement to the extent that the performing agency hasnot incurred valid obligations under the agreement bytheend of the period of availability (the noted exceptions to this deobligation requirement are project orders, as discussed in paragraph 5h(2)(b)). Adjustments increasingan obligation after the expiration of the appropriation must be coordinated with the Budget and Execution Branch (CR-131). In addition, Public Law 101-510 requires that asof9-300f the 5th fiscal year after the period of obligational availability ends, effective with fiscal year 1989, for each account or appropriation all obli- gated balances shall be canceled. For further information on adjustments. see Chapter II. ‘Accounting forAppropriations and Other Funds,” paragraph 7. a. . OMBCir- cular A-34, “Instructionson Budget Execution,” requires accounting and reporting for adjustments to unexpired accounts. The circular states that changes in obligations incurred in prior years must notbe netted against current obligations but rather must be reported separately, on SF-133, ‘Report on Budget Execution,” as recoveries ofprtor-year obligations. Exceptionsto this policy are listed lnparagraph 6a(2)(e). OMBwill automatically 111-13 DOE2200.5B 6-8-92 Paragraph6a reapportion recoveries that are reportedon line 4Aof the monthly SF-133, but these funds will not be automatically avail able to program offices forreobli- gation. These funds will beused to offset management initiatives and. where justified, allotted to program offices. (1) ~. The following guidance applies to prior-year deobligations. with the exception of the exemptions listed in 6a(2)(e): (a) Downward adjustments of prior-year obligations at the individual contract level shall be identifiedin submissions to the DOE Finan- cial Information System with status code ofPY. Status code PYshall be encoded in both the unobligated allotments (5XXX)and the unpaid obligations (6XXX) accounts. Each recoveryof funds obligatedin a prior year wil 1 require an allotment authority withdrawal entry with summary classification code 11. Status code PYmust reinserted in both expended allotment (4211 and 4311) and unobligated allotment accounts on the withdrawal entries madeby the field organizations. (b) Themost recently obligated funds shall bedeobligated first unless otherwise identifiabl e. Whenever theamountdeobl igated is greater than the balance availabl efordeobligation from the current fiscal year activity, the deobligation is charged to the balance available for deobligation from the preceding fiscal year. This processes repeated back through preceding fiscal years until the full amount deobligatedis recorded. Obligations adjusted within the same ● fiscal year as they were originally obligated are again available for new obligations as ifthey had never been obligated in the first place. Any new obligationis subject to the restrictions governing the appropriation. (c) An erroneously reported prior-year deobligation must notbe cor- rected unilaterallyby the allotted. To avoida potential deficiency violation, the allottee shall request allotmentof funds required to correct the error, using the procedures described below.

(2) ntof Funds of UngxDired Acco~ . Allottees must request allotment, submit justificationo and receive approval for all allotments of funds of unexpired accounts. Requests for allotmentof funds may bemade at any time during theyear for funds made available in the current year through deobligation. The procedure tobe followed before funds may reallotted isas follows: (a) The allottee must submit each request for allotment toor through the cognizant Headquarters program organization. The request shall contain the following: I The appropriation title and symbol. z The amount of the request. a The budget and reporting classification. 111-14 6-8-92 DOE2200.5B Paragraph 6a(2)(e)Z ~ The approved funding program code. 5 A narrative justification for allotmentof funds recovered through prior-year deobli gation. The justification shall state whether the request is necessary tomeet emergency circumstances: Is mandated bylaw: is a liability that is in the best interest of the Government to liquidate as soon as possible: or is necessaryto prevent the detrimental delay or postponement of aproject, program, or activity. Any request notmeeting these criteria shall be returned to the requester with an appropriate explanation. (b) The Headquarters program organization shall revieweach request for allotment of unexpired accounts and determine whether or not the request can be met with current-year funding. (c) If the request cannot bemet with current-year funding. the Head- quarters program organization shall submit arequest for allotment, which shall include the same information as in paragraph 6a(2)(a), to the Budget Analysis Division (CR-14) for review. Ifthe requestis approved and the funds have been made available through prior-year deobligations, the Office of Budget (CR-1O) shall issue a revised allotment and approved funding program. (d) Correction of Minor Administrative Frrors . For correction of the following minor administrative errors, the formal approval proce- dures delineatedin paragraphs 6a(2)(a) through (c). normally shall notbe required: identificationof an erroneous prior-year deobli- gation after the funds have been recovered and discovery of account- Ing errors. such as transposition of amounts or applying amountsto the wrong contract. To avoid a potential deficiency violation, upon discovery of the situations described above the servicing Field CFO shall promptly notify the Budget Execution Branch (CR-131) bytele- phone ormail and request allotment of the funds. Upon receipt of the notification. the Budget Execution Branch will issuea revised allotment and approved funding program, correcting the error. However, If an erroneous deobligation involves asignificantdol lar amountor is of particular interest or concern to the Chief Financial Officer (CFO: CR-l). additional supportive justification maybe required. The allottee shall not correct the erroneous transaction: the correction is effected when the allotmentis Issued. (e) tionsfroml@aulrewt to FormallYR~ The allottee shall formally request that the funds reallotted. Th~ following funds are exempt from the requirement to request allot- ment, and deobligations of these funds should notbe recorded or reported as prior-year deobligations: 1 Revolving and trust funds; z Power marketing administrations continuing or emergency funds; 111-15 [ DOE2200.5B I Paragraph 6a(2)(e)3 3 U lz Special Foreign Currency Approprfatfon: Geothermal Resources Development Fund:

Funds not subject to apportionment, including transfer appropriations; Relmbursablework for other Federal agencies: Transfers ofwork using intra-DOE work orders; Institutional conservation schools and hospitals grant program; Strategic Petroleum Reserve petroleum account (off budget); Oblfgatfons for salary, training. travel (to include permanent change ofstatfon and temporary duty), and purchase orders for less than $25,000: Adjustments to accruals: and Transfer of obligations from one organizationto another because ofa changein contract administration and theoblfgatfon amount, the obligations should be reduced accordingly. (3) for A1-tof Fun.duxir~d &CQM&S ● (a) Expired AccW. Unobligated balances ofexpi red accounts remain available for5 years for legitimate obligation adjustments. (Asof 9-30-93, all obligated balances in M accounts shall be canceled.) Each allottee must request an allotment and submit justfficatfon and a certfficatfon for any allotment of funds ofexpf red accounts dfrectly to the Budget Execution Branch. The request andjustifica- tfonshouldcontafn the fnformatfonlfsted fnparagraph 6a(2). In addition, the certification must state that the request for allot- mentisfor valfd obligation adjustments. indirectly relatedto activity conducted in the expired appropriation from which payments areto bemade, andwfll not cause theorfginal amount of the appropriation tobe exceeded. (b) ~. At the end ofthe5-yearperfod descrfbedin para- graph 6a(3)(a), oron 9-30-93 forM accounts, all unlfqufdatedobli- gations and unobligated balances shall be canceled and theexpired accounts shall be closed. Any subsequent payment or obligation associated with one of these closed accounts that comes due shall be paf d from an unexpf red approprf atfon made for the same general purpose current at that tfme. To obtain fundfng from the unexpired accounts, an allotment request must be submitted dfrectlyto the Budget Execution Branch along wfththe justfffcation andcertfffca- tiondescribed in paragraph 6a(3)(a). The certiffcatfon shall state ● that the allotment Istobe used for valid obligation payments 111-16 6-8-92 DOE2200.5B Paragraph6c directly related to actlvfty conducted ~n the unexpired appropriation from whfch payment isto bemade. (c) ~will perform the programmanager function for all closed account balances. Thlsresponsiblllty will Include maintaining balances of every closed account andensurlng thatno more than Ipercent of the unexpired appropriationor the unexpended balances of the appropriation .whichever is less, tsusedto pay any canceled obligation and that no paymentis made that would cause cumulative outlays to exceed the unexpended balance of the original appropriation. Foraddltional guidance onthese requirements, see Chapter II, ’’Accounting for Appropriations and Other Funds,” paragraph 7. (4) &portio_ for recoveries of prior-year obligations shall beaccom- pl i shed by the use of the fol 1 owi ng footnote on the bottom of SF-132, “Apportionmentand Reapportionment Schedule”: “In addition tothe amount apportioned herein, recoveries of prior-year obligations are automati- cally apportioned.” Expired accounts will not reapportioned. For additional apportionment requirements, see Chapter I1, ‘Accounting for Appropriations and Other Funds,” paragraph7.

(s) ~. For budgetary purposes, theCFO, through the Officeof Budget, shall treat funds not approved for allotment to program organizations as programmatic deferrals oras rescissions, or apply thereto offset management initiatives orto offset unfunded require- ments by following reprogramming, appropriation transfer, or other appropriate procedures in accordance with DOE 51OO.13A, BUDGET EXECUTION-RESCISSIONS AND DEFERRALS, of 5-18-92, and DOE5160.lB, REPRO- GRAMMING, RESTRUCTURING, AND APPROPRIATIONS TRANSFER PROCEDURES, of 5-18-92. b. of Aar~ . Mhen contract amendments ormodi- fications involve changes in amounts for any reason, including corrections of estimates, required obligation adjustments shall be recorded when the changes in amounts are formalized and from funds currently available. However, whena change orderis issued and the amount involvedis not stated, the obligation shall be adjusted on the basis of the best available estimate. Contract changes under whicha contractors required to perform additional work involving “Expired, Closed, or MAccountsW have specific reporting and approval require- merits, which are described in Chapter II. “Accounting for Appropriations and Other Funds, ” paragraph 7. C* ~. Iihena contractor agreement ister- minated in whole orinpart for the convenience ofDOE by giving anotice of termination tothe other party tosuch contractor agreement, the pertinent obligation shall be decreasedto an amount sufficient to meet the settlement costs under the termination. The obligation shall not be decreased below the amount estimated by the contracting officer orithe basis of the best evidence available of the amount dueasa result of such termination. The deobligation shall be supportedby contract modification or formal termination agreement, 111-17 I DOE2200.5B 6-8-92 Paragraphed d. ~= Uhencertain items are procuredby the contractorwlth the estimated cost included ~n the contract amount obli- gatedand it becomes necessary oradvtsable for DOE to supply such items, a modification or other applicable contract action shall reflecta changein amount. and the pertinent obligation shall be reduced accordingly. Loanof equipment by DOE toa contractor may require similar action. a. Periodic Review and Validation of Unpaid Obl iaation WWcfs Field CFO’s have primary responsibility for ensuring that all known transacti~ns meeting the criteria of title 31, section 1501, of the United States Code (see para- graph2e) have been obligated; that the unpaid balances of these obligations are valid: and that appropriate actions are taken to deobligate any invalidor excess balances. To meet these responsibil ities, Field CFO’sneed the full cooperationof the procurement andpro9ram officials. This is particularly true in the area of verifying that unpaid obligation balances are realistic and necessary. Aggressive followup on acquisitionor assistance instruments will result ln prompt deobligationof unneeded balances and allow earlier reuse for current programs ortomeet budget reductions. To accomplish this objective, Field CFO’s shall perform regular reviews of unpaid balances during theyear, with particular emphasis enlarge-dollar. inactive. prior-year obligations. In conducting these reviews, Field CFO’s shall obtain independent evaluation and confirmation of the amounts needed to liquidate procurement documents from the cognizant contracting officers and, as appropriate, the program officials. In assessing confirmed amounts. Field CFO’s may request additional information ● to support the validity and continued need for the unpaid obligation balance from the contracting officer, the program official , orboth.

b. @l CertificatiM. Annually, Field CFO’s are required tocertify tothe accuracy of the balances contained on TFS 2108, “Yearend Closing Statement.” To make this certification, Field CFO’s must ascertain that all known obliga- tions prerecorded and correctly stated and that each meets the criteria established intitle 31, section 1501, of the United States Code (see paragraph 2e). The reviews conducted under paragraph 7awill assist in this certifica- tion. Additionally. afiscal yearend review must be conducted to ensure that all appropriate adjustments have been recorded asofthe last day of the fiscal year. To ensure that all valid obligations have been recorded, this review should include payments made and invoices orother evidence of liability received during the period between the endof the fiscal year and the cutoff date established bythe CFO. 111-18 . U.S. Department of Energy Washington, D.C. PAGE CHANGE I DOE 2200. 5B Chg 11 11-12-92 SUBJEcT, FUND ACCOUNTING 1. PURPOSE. To transmit revised pages to DOE 2200.5B, FUND ACCOUNTING, of 6-8-92. 2. EXPLANATION. To incorporate in Chapter III, “Accounting for Obligations,” a change In policy for deobligation of funds from purchase and delivery orders. 3. FILING INSTRUCTIONS. a. Remove Pages Dated Insert Pages Dated 111-17 and 111-18 6-8-92 111-17 6-8-92 111-18 11-12-92 b. After filing the attached pages, this transmittal may be discarded. BY ORDER OF THE SECRETARY OF ENERGY: DOLORES L. ROZZI Director of Administration and Management e DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer 1 DOE 2200.5B Paragraph6c 1 \ 6-8-92 (4) (5) (c) directly related to activity conducted in the unexpired appropriation from which payment is to be made. tFxecutlon Branch. will perform the program manager function for all cl osed account balances. This responsibility will include maintaining balances of every closed account and ensuring thatno more than lpercent of the unexpired appropriation or the unexpended balances of the appropriation .whichever is less. isusedto pay any canceled obligation and that no payment is made that would cause cumulative outlays to exceed the unexpended balance of the original appropriation. For additional guidance on these requirements, see Chapter II, “Accounting forAppropriations and Other Funds.” paragraph. A??ortl onme ts . for recoveries of prior-year obligations shall beaccom- pl i shed by t;e use of the fol 1 owing footnote on the bottom of SF-132. ‘Apportionment and Reapportionment Schedule”: “In addition tothe amount apportioned herein, recoveries of prior-year obligati ons are automati- cally apportioned.- Expired accounts will notbe apportioned. For additional apportionment requirements. see Chapter II, “Accounting for Appropriations and Other Funds,” paragraph 7. ~. For budgetary purposes, theCFO. through the Officeof Budget, shall treat funds not approved for allotment to program organizations as programmatic deferral sor as rescissions, or apply thereto offset management initiativesor to offset unfunded require- ments by following reprogramming, appropriation transfer. or other appropriate procedures in accordance with DOE51OO.13A. BUDGET EXECUTION–RESCISSIONS AND DEFERRALS. of 5-18-92. and DOE5160.lB, REPRO- GRAMMING. RESTRUCTURING, AND APPROPRIATIONS TRANSFER PROCEDURES. of 5-18-92.

b. ModiflcaWsof Aare_. . Uhen contract amendments ormodi- fications involve changes In amounts for any reason, including correctionsof estimates. required obligation adjustments shall be recorded when the changes in amounts are formalized and from funds currently available. However. when a change orderis issued and the amount involvedis not stated, the obligation shall be adjusted on the basis of the best available estimate. Contract changes under whicha contractors required to perform additional work involving “Expired. Closed, or M Accounts-have specific reporting and approval require- ments, which are described in Chapter II. ‘Accounting for Appropriations and Other Funds.- paragraph 7. c. Termination ofContrac-Aaree- . When a contractor agreement ister- minated in whole orinpart for the convenienceof DOE by giving a noticeof termination to the other party to such contract or agreement. the pertinent obligation shall be decreased toan amount sufficient to meet the settlement costs under the termination. The obligation shall not be decreased below the amount estimated by the contracting officeron the basis of the best evidence available of the amount due as a result of such terminate on. The deobligation shall be supportedby contract modification or formal termination agreement~ 111-17 ! DOE 2200.5B Chg 1 11-12-92 t Paragraph6c d. 7. except for the deobligation of small purchase and delivery orders where theCO — may use a locally approved formin lieuofa contract modification to indicate that remaining funds are unneeded for further payment and shouldbe deobligated. For the purpose of this exception. small purchase and delivery orders shall delimited to the FAR 13 definition of $25.000 or less. tractors When certain items are procured by the contractor with the estimated cost in~luded in the contract amount obli- gatedand it becomes necessary or advisable for DOE to supply such items. a modification or other applicable contract action shall reflect a change in amount. and the pertinent obligation shall be reduced accordingly. Loanof equipmentby DOEtoa contractor may require similar action. REVIEW AND REPORTING OFOJIIGATIW . a. .Kriodic RexhwaM Validation of Mpaid Obllaatlon Bala ces . . . Field CFO’s have primary responsibility for ensuring that all known trans~cti&s meeting the criteria oftitle 31, section 1501, of the United States Code (see para- graph2e) have been obligated: that the unpaid balances of-these obligations are valid; and that appropriate actions are taken to deobligate any invalidor excess balances. To meet these responsibil ities. Field CFO’s need the full cooperationof the procurement and program officials. This is particularly true in the area of verifying that unpaid obligation balances are realistic and necessary. Aggressive followup on acquisitionor assistance instruments will result inpromptdeobl igation of unneeded balances and allow earlier reuse for current programsor to meet budget reductions. To accomplish this objective, Field CFO’s shall perform regular reviews of unpaid balances during theyear. with particular emphasis enlarge-dollar. inactive. prior-year obligations. In conducting these reviews, Field CFO’s shall obtain independent evaluation and confirmation of the amounts neededto liquic!ate procurement documents from the cognizant contracting officers and. as appropriate, the program officials. In assessing confirmed amounts, Field CFO’s may request additional information to support the validity and continued need for the unpaid obligation balance from the contracting offi cer, the program official. orboth.

b. -1 Certification. Annually. Field CFO’s are required tocertify to the accuracy of the balances contained onTFS 2108, “Yearend Closing Statement.” To make this certification. Field CFO’s must ascertain that all known obliga- tions prerecorded and correctly stated and that each meets the criteria established in title 31, section 1501, of the United States Code (see paragraph 2e). The reviews conducted under paragraph 7awill assist in this certifica- tion. Additionally, aflscal yearend review must be conducted to ensure that all appropriate adjustments have been recorded asofthe last day of the fiscal year. To ensure that all valid obligations have been recorded, this review should include payments made and invoices or other evidence of liability received during the period between the end of the fiscal year and the cutoff date established bythe CFO. Vertical line denotes change. 111-18 I t i 0 U.S. Department of Energy Washington, D.C. PAGE CHANGE 11-12-92 SUBJECT: FUND ACCOUNTING 1. PURPOSE. To transmit revised pages to DOE 2200. 5B, FUND ACCOUNTING, of 6-8-92. 2. EXPLANATION . To incorporate in Chapter III, “Accounting for Obligations ,“ a change In pol icy for deobl igation of funds from purchase and del ivery orders. 3. FILING INSTRUCTIONS, a. Remove Pages Dated Insert Pages Dated 111-17 and 111-18 6-8-92 I I I -17 6-8-92 II 1-18 11-12-92 b. After filing the attached pages, this transmittal may be discarded. BY ORDER OF THE SECRETARY OF ENERGY: DOLORES L. ROZZI Director of Administration and Management o DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer i L t’ 6-8-92 a (4) (5) ( c ) DOE2200.5B Paragraph6c directly related to activity conducted in the unexpired appropriation fromwhich payment is to be made. will perform the program manager function for all closed account balances. This responsibility will include maintaining balances ofevery closed accountant ensuring that no more than 1 percent of the unexpired appropriationor the unexpended balances of theappropri ation, whicheveris less, isusedto pay any canceled obligation and that no payment is made that would cause cumulative outlays to exceed the unexpended balanceof the original appropriation. For additional guidance on these requirements, see Chapter II, ‘Accounting forAppropriations and Other Funds,” paragraph. rtlonments for recoveries of prior-year obligations shall beaccom- plishedby the use of the following footnote on the bottom of SF-132, “Apportlonmentand Reapportionment Schedule”: ‘In addition tothe amount apportioned herein, recoveries of prior-year obligations are automati- cally apportloned.- Expired accounts will notbe apportioned. For additional apportionment requirements. see Chapter II, ‘Accounting for Appropriations and Other Funds,- paragraph 7. ~.For budgetary purposes, theCFO, through the Office of Budget, shall treat funds not approved for allotment to program organizations as programmatic deferrals eras rescissions, or apply them to offset management initiatives or to offset unfunded require- ments by following reprogramming, appropriation transfer. or other appropriate procedures in accordance with DOE 5100.13A. BUDGET EXECUTION-RESCISSIONS AND DEFERRALS. of 5-18-920 and DOE5160.lB, REPRO- GRAMMING. RESTRUCTURING, AND APPROPRIATIONS TRANSFER PROCEDURES, of 5-18-92.

b. Amgndme~ tlodifi~ ofAare~ . When contract amendments ormodi- ficationslnvolve changes in amounts for any reason, including corrections of estimates, required obligation adjustments shall be recorded when the changes in amounts are formalized and from funds currently avail able. Iiowever. whena change orderis issued and the amount involved is not stated. the obligation shall be adjusted on the basis of the best available estimate. Contract changes under which a contractors required to perform additional work involving ‘Expired, Closed, or M Accounts-have specific reporting and approval require- ments, which are described in Chapter 11. ‘Accounting for Appropri ations and Other Funds.* paragraph 7. c. Termlnationof Cent acts&Aa eementS. r r . When a contractor agreement ister- minated in whole orin part for the convenience of DOE bygivtng a noticeof terminationto the other party to such contract or agreement, the pertinent obligation shall be decreased to an amount sufficient to meet the settlement costs under the termination. The obligation shall not be decreased below the amount estimated by the contracting officeron the basis of the best evidence avail able of the amount dueas a result of such terminate on. The deobligation shall be supported by contract modlffcation or formal termination agreement, 111-17 z DOE 2200.5B Chg 1 11-12-92 Paragraph6c ‘a a except for the deobligationof small purchase and delivery orders where theCO may use a locally approved formin lieu ofa contract modification to indicate that remaining funds are unneeded for further payment and should be deobligated. For the purpose of this exception. small purchase and delivery orders shall delimited to the FAR 13 definition of $25,0000r less. d. ~. When certain items are procuredby the contractor with the estimated cost included In the contract amount obli- gated and it becomes necessary or advisable for DOE to supply such items, a modification or other applicable contract action shall reflect a changein amount. and the pertinent obligation shall be reduced accordingly. Loanof equipmentby DOEtoa contractor may require similar action. .a. .~Field CFO’s have primary responsibility for ensuring that all known transaction smeeting the criteria oftitle 31. section 1501, of the United States Code (see para- graph2e) have been obligated: that the unpaid balances of-these obligations are valid; and that appropriate actions are taken todeobligate any invalidor excess balances. To meet these responsibil ities, Field CFO”s need the full cooperation of the procurement and program officials. This is particularly true in the area of verifying that unpaid obligation balances are realistic and necessary. Aggressive followup on acquisitionor assistance instruments will result in prompt deobligation of unneeded balances and allow earlier reuse for current programs orto meet budget reductions. To accompi ish this objective. Field CFO’s shall perform regular reviews of unpaid balances during theyear. with particular emphasis on large-dollar. inactive, prior-year obligations. In conducting these reviews, Field CFOOs shall obtain independent evaluation and confirmation of the amounts needed to liquic!ate procurement documents from the cognizant contracting officers and, as appropriate. the program officials. In assessing confirmed amounts, Field CFO’s may request additional information to support the validity and continued need for the unpaid obligation balance from the contracting officer, the program official, orboth.

b. Annual Certification. Annually, Field CFO”s are required tocertify to the accuracy of the balances contained onTFS 2108, ‘Yearend Closing Statement.- To make this certification, Field CFO’s must ascertain that all known obliga- tionsare recorded and correctly stated and that each meets the criteria established in title 31, section 1501, of the United States Code (see paragraph 2e). The reviews conducted under paragraph7a will assist in this certifica- tion. Additionally, afiscal yearend reviewmustbe conducted to ensure that all appropriate adjustments have been recordedas of the last day of the fiscal year. To ensure that all valid obligations have been recorded, this review should include payments made and invoices or other evidence of liability received during the period between the end of the fiscal yearand the cutoff date establ i shed by the CFO. Vertical line denotes change. 111-18 1 I US Department of Energy PAGE CHANGE ! d Washington, D.C. a m 4-2-93 SUBJECT: FUND ACCOUNTING 1. PURPOSE. To transmit revised pages to DOE 2200.5B, FUND ACCOUNTING, of 6-8-92. 2. EXPLANATION. To incorporate Chapter III, “Accounting for Obligations, ” guidance on reporting uncosted obligations. 3. FILING INSTRUCTIONS. a. Remove Paqes Dated Insert Paqes Dated v (and vi) 6-8-92 v (and vi) 4-2-93 111-15 and 111-16 6-8-92 111-15 6-8-92 111-16 4-2-93 111-19 and 111-20 4-2-93 m b. After filing the attached pages, this transmittal may be discarded: — BY ORDER OF THE SECRETARY OF ENERGY: LINDA G. SYE Acting Director of Administration and Management ,0 DISTRIBUTION: INITIATED BY: All Departmental Elements Office of Chief Financial Officer b 4-2-93 . DOE 2200. 5B Chg 2 @ b. Amendments and Modificati ons of Agreements . . . . . . . . . . . . . . III-17 Termination of Contra cts and Agreements . . . . . . . . . . . . . . . . 111-17 :: Furnishing of Items by DOE to Contractors . . . . . . . . . . . . . . . II 1-18 7. Review and Reporting of Obligations . . . . . . . . . . . . . . . . . . . . . II 1-18 Periodic Review and Validation of Unpaid Obligation Balances . . . 111-18 :: Annual Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . 111-18 c. Reporting of Uncosted Obligations . . . . . . . . . . . . . . . . . . . 111-19 (1) Encumbered Uncosted Obligation . . . . . . . . . . . . . . . . . . 111-19 (2) Unencumbered Uncosted Obligation . . . . . . . . . . . . . . . . 111-19 Vertical 1 ine denotes change. v (and vi ) 0 \ 6-8-92 DOE2200.5B Paragraph 6a(2)(e)Z The approved funding program code. A narrative justification for allotmentof funds recovered through prior-year deobligation. The justification shall state whether the request is necessary to meet emergency circumstances; is mandatedby law; is a liability that is in the best interest of the Government to liquidateas soon as possible; or is necessary to prevent the detrimental delay or postponement of aproject, program, or activity. Any request notmeeting these criteria shall be returned to the requester with an appropriate explanation. (b) The Headquarters program organization shall revieweach request for allotment of unexpired accounts and determine whether or not the request can be met with current-year funding. (c) If the request cannot bemet with current-year funding, the Head- quarters program organization shall submita request for allotment, which shall include the same information as in paragraph 6a(2)(a). to the Budget Analysis Division (CR-14) for review. Ifthe requestis approved and the funds have been made available through prior-year deobligations. the Office of Budget (CR-1O) shall issuea revised allotment and approved funding program.

(d) Correction of Minor Administrat ive E rrors. For correction of the following minor administrative errors, the formal approval proce- dures delineatedin paragraphs 6a(2)(a) through(c). normally shall notbe required: identification of an erroneous prior-year deobli- gation after the funds have been recovered and discovery of account- ing errors, such as transposition of amounts or applying amounts to the wrong contract. To avoid a potential deficiency violation. upon discovery of the situations described above the servicing Field CFO shall promptly notify the Budget Execution Branch (CR-131) bytele- phone ormail and request allotment of the funds. Upon receipt of the notification, the Budget Execution Branch will issue a revised allotment and approved funding program, correcting the error. However, ifan erroneous deobligation involves a significant dollar amount oris of particular interest orconcern to the Chief Financial Officer (CFO; CR-l). additional supportive justification maybe required. The allottee shall not correct the erroneous transaction; the correction is effected when the allotments issued. (e) Exempt onsi from Rea uirement to Formallv Reauest Allotment ofFund~ The allottee shall formally request that the fundsbe allotted. Th~ following funds are exempt from the requirement to request allot- ment. and deobligations of these funds should not be recorded or reported as prior-year deobligations: 1 Revolving and trust funds; Z Power marketing administrations’ continuing or emergency funds; I I 1-15 DOE 2200.5B Chg 2 Paragraph 6a(2)(e)3 4-2-93 3 5 U lz Special Foreign Currency Appropriation; Geothermal Resources Development Fund: Funds not subject to apportionment, including transfer appropriations: Reimbursable work for other Federal agencies: Transfers ofwork using intra-DOE work orders (includes reconciling transfers): Institutional conservation schools and hospitals grant program: Strategic Petroleum Reserve petroleum account loffbud9et): Obligations for salary, training, travel (to include permanent change of station and temporary duty), and purchase orders for 1 ess than $25,000: Adjustments to accruals: and Transfer of obligations from one organization to another because ofa changein contract administration and the obligation amount, the obligations should be reduced accordingly. (3) ts for Allotmentof FundsofFxD ired Accoun%. (a) Expired Ac~ . Unobligated balances of expired accounts remain available for5 years for legitimate obli9ati on adjustments. (Asof 9-30-93, all obligated balancesin M accounts shall be canceled.) Each allottee must requestan allotment and submit justification and a certification for any allotment of funds of expired accounts directly to the Budget Execution Branch. The request andjustifica- tion should contain the information listedin paragraph 6a(2). In addition. the certification must state that the request for allot- ment is for valid obligation adjustments, is directly related to activity conducted in the expired appropriation fromwhich payments areto be made, and will not cause the original amount of the appropriation to be exceeded. o

(b) Closed Accou nts. At the endofthe 5-year period described inpara- graph 6a(3)(a), or on9-30-93for M accounts, all unliquidatedobli- gations and unobligated balances shall be canceled and the expired accounts shall be closed. Any subsequent paymentor obligation associatet.i with one of these closed accounts that comes due shall be paid from an unexpired appropri ationmade for the same general purpose current atthat time. To obtain funding from the unexpired accounts, an allotment request mustbe submitted directly to the Budget Execution Branch along with the justification andcertifica- 0 tiondescribed inpara9raPh 6a(3)(a). The certification shall state that the allotment isto be used for valid obligation payments 111-16 Vertical line denotes change. 4-2-93 DOE 2200.5B Chg 2 Paragraph 7c(2) (b) c. Re~ortinQ of Uncosted Obligations. An uncosted obligation is the balance of the amounts obligated by the Department under its integrated management and operating (M&O) contracts for which costs have not yet been incurred by the integrated M&O contractor. Requirements for reporting uncosted balances are established to ensure that analyses of uncosted obligations are performed as part of the budget formulation process. Data on uncosted obligations for both capital and operating funds shall be reported three times a year: as of 3-31, 6-30, and 9-30 through supplementary reporting due 4-30, 7-31, and 11-30, respectively. (Specific reporting requirements will be provided by the Office of Departmental Accounting and Financial Systems Development (CR-40), pending inclusion in DOE 2200.8B, ACCOUNTING SYSTEMS, ORGANIZATIONS, AND REPORTING, Chapter II, “Internal Reporting.”) The uncosted obligations shall be reported based on the following categories: (1) Encumbered Uncosted Obligation represents uncosted balances under con- tracts awarded by the integrated M&O contractor and uncosted balances related to other integrated M&O contractor liabilities. Encumbrances consist of uncosted balances of purchase orders issued; contracts and subcontracts awarded, including the full liability under lease purchases and capital leases; termination cost for incrementally funded firm fixed price contracts, operating lease agreements, and multiyear service con- tracts that contain termination clauses; and other agreements for the acquisition of goods and services not yet received and uncosted balances related to other integrated M&O contractor liabilities. Encumbrances include uncosted balances of work orders or authorizations issued to integrated M&O construction contractors, provided that such work is specific in scope and has clear milestones or tangible deliverables. (2) Unencumbered Uncosted Obligation is that portion of the uncosted obliga- tion balance that has not yet been encumbered by the integrated M&O con- tractor. The unencumbered uncosted obligation balance consists of the following categories: (a) Amroved Work ScoDe consists of balances for work that is clearly defined in task or work authorizations or program direction letters. Such work must be specific in scope and have clearly defined mile- stones and tangible deliverables where possible. This category may not at yearend include any costs for which funds are appropriated in the subsequent fiscal year (for example, level-of-effort for research and development activities or to maintain capability in Defense Programs). Any balances in this category resulting from delays and slippages are prime candidates for reversion to the remaining unencumbered category (see below), absent convincing justification for retention.

(b) Prefinancinq is funding maintained for the purpose of ensuring con- tinuity of contractor operations during a potential funding lapse at the beginning of the fiscal year. Prefinancing is limited to the amounts required to cover salaries and related benefits and other mandatory requirements, such as rent and utilities, not otherwise Vertical line denotes change. 111-19 DOE 2200.5B Chg 2 Paragraph 7c(2)(b) covered in the to20 calendar # ,1 4-2-93 \ encumbered and approved work scope categories, forup a days. (c) -ininu Unencu_ is the portion that remains after subtracting approved work scope and prefinancing and is potential excess funding resulting from project and program underruns and changing program missions that maybe available for withdrawal and reallocationto I support current or future Departmental funding requirements. 111-20 Vertical line denotes change. * ‘) o 1. 2. 3. e BY U.S. Department of Energy Washington, D.C. PAGE CHANGE I DOE 2200.5B Chcj3 I 6-14-93 SUBJECT: FUND ACCOUNTING PURPOSE. To transmit revised pages to DOE 2200.5B, FUND ACCOUNTING, of 6-8-92. EXPLANATION. To incorporate in Chapter III, “Accounting for Obligations,” a clarification of policy guidance for the funding of service contracts. FILING INSTRUCTIONS. a. Remove Pacies Dated Insert Paues Dated iii and iv 6-8-92 iii 6-8-92 iv 6-14-93 III-3 and III-4 6-8-92 II I-3 6-8-92 II I-4 6-14-93 b. After filing the attached pages, this transmittal may be discarded. ORDER OF THE SECRETARY OF ENERGY: LINDA G. SYE Acting Assistant Secretary for Human Resources and Administration DISTRiBUT~N: INITIATED BY: All Departmental Elements Office of Chief Financial Officer t 6 - 8 - 9 2 DOE2200.5B (5) Receiving an Expenditure Transfer or Adjustmenton Standard Form 1081, “Voucher and Schedule of Withdrawal and Credits” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (6) Expenditure Transfers Requiring Payment by Check Outside the Department of the TreasurY Disbursing Area . . . . . . . . 6. Other Types ofAccounts and Their Accounting Treatments . . . . . . . . . a. Special Fund and Trust Fund Accounts . . . . . . . . . . . . . . . . . . (1) Special Fund Receipt Accounts . . . . . . . . . . . . . . . . . . (2) Trust Fund ReceiptAccounts . . . . . . . . . . . . . . . . . . . . (3) Special Fund and Trust Fund Expenditure Accounts . . . . . . . (4) Accounting Treatment.. . . . . . . . . . . . . . . . . . . . . . . b. Consolidated Working Fund Accounts . . . . . . . . . . . . . . . . . . . Management Fund Accounts . . . . . . . . . . . . . . . . . . . . . . . . . ;: Revolving-FundAccounts . . . . . . . . . . . . . . . . . . . . . . . . . e. Deposit Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Types ofDepositFunds . . . . . . . . . . . . . . . . . . . . . . . (2) Disposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Controls unavailability ofAppropriation Accounts . . . . . . . . . . . . a. Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1) Adjustments to Expired Accounts . . . . . . . . . . . . . . . . . (2) ClosedAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) ContractChange . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) Closed Account Transactions . . . . . . . . . . . . . . . . . . . (5) Prior-Year Deobligations . . . . . . . . . . . . . . . . . . . . . (6) Unexpired Accounts . . . . . . . . . . . . . . . . . . . . . . . . . (7) ExpiredAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . (8) FixedAccounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) Unrecorded Obligations . . . . . . . . . . . . . . . . . . . . . .

b. Revised Duration of Expired Accounts . . . . . . . . . . . . . . . . . . Transition Period for Existing MAccount Balances . . . . . . . . . . ;: Approving and Reporting Obligation Adjustments to Expired, Closed, andMAccounts . . . . . . . . . . . . . . . . . . . . . e. Cancellation of 5-Year-01 dMAccount Obligations . . . . . . . . . . f. Alternatives for Payment of Old Obligations . . . . . . . . . . . 9. Application of the l-Percent Limitation . . . : : . . . . . . . . . . . h. Merged Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i. Yearend Reporting Requirements . . . . . . . . . . . . . . . . . . . . . j. Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . k. Apportionment Procedures . . . . . . . . . . . . . . . . . . . . . . . . 1. Anti -Deficiency Act Viol ations . . . . . . . . . . . . . . . . . . . . . NG FOR WATIONS 11-10 11-10 11-10 11-10 11-10 11-11 11-11 11-11 11-11 11-12 11-12 11-12 11-13 11-13 11-13 11-13 11-13 11-13 11-13 11-13 11-14 11-14 11-14 11-14 11-15 11-15 11-15 11-16 11-16 11-17 11-17 11-18 11-18 11-18 11-18 11-19 11-19 1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111-1 Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II 1-1 ;: Applicability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II I-1 a c. PO1 i CY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . II I-1 2. Statutory Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . II I-2 3. Reservation of Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 111-3 iii DOE 2200.5B Chg 3 , 6-14-93 4. Appropriation Limitations . . . . . . . . . . . . . . ● ● . . ● . ● o ● o s ● ● a. Annual Appropriations . . . . . . . . . . . . . . . . . . 0 0 ● o “ ● “ “ (1) Del i very of Materi als Beyond the Fiscal Year . . . . . . . . . . (2) Service Contracts . . . . . . . . . . . . . . . . . . . . . . . . . . (3) Replacement Contracts . . . . . . . . . . . . . . . . . . . . ● ● ● b. Multiple-Year Appropriations . . . . . . . . . . . . . . . . . . . . . . c. No-Year Appropriations . . . . . . . . . . . . . . . ● . . . . . 0 “ ● “ “ 5. Types of Obligations . . . . . . . . . . . . . . . . . 0 . . 0 “ “ “ o “ o “ ● “ a. b. :: :: 9. h. i. j. k. 1. m. n. o. P. Contracts . . . . . . . . . . . . . . . . . . “ “ “ ● “ ● “ o “ “ o 0 0 0 “ ● (1) Integrated Contracts . . . . . . . . . . . . . . . . . . . . . . . . (2) Firm Fixed Price Contracts . . . . . . . . . . . . . . . . . . . . (3) Fixed Price Contracts with Escalation, Price Redetermination, or Incentive Provisions . . . . . . . . . . . (4) Cost Reimbursement Contracts and Time and Material Contracts (5) Indefinite-Del ivery-Type Contracts . . . . . . . . . . . . . . . (6) Contracts Under Specific Statutory Authority . . . . . . . . . (7) Other Contracts . . . . . . . . . . . . . . . . . . . ● . . “ “ ● c ● Grants . . . . . . . . . . . . . . . . . . ● ● ● ● ● ● ● ● “ ● o 0 ● o ● ● “ ● Purchase Orders . . . . . . . . . . . . . . . . . . ● ● . ● o 0 ● o . ● “ ● Payroll . . . . . . . . . . . . . . . . . . . . . . . “ “ s “ “ ● “ “ “ “ “ ●

(1) Employ ees’ Salaries . . . . . . . . . . . . . . . . . . . . . . . . (2) Other Charges Based on Salaries . . . . . . . . . . . . . . . . . Travel . . . . . . . . . . . . . . . . . . . . . . . ● . ● “ ● ● ● “ “ “ o “ o Transportation of Other Goods . . . . . . . . . . . . . . . . . . . . . - Communicate ons and Public Utilities . . . . . . . . . . . . . . . . . . Agreements with Other Federal Agencies . . . . . . . . . . . . . . . . (1) DOE as Ordering Agency (Funds Out) . . . . . . . . . . . . . . . . (2) DOE as Performing Agency (Funds In) . . . . . . . . . . . . . . . Interagency Orders Required by Law . . . . . . . . . . . . . . . . . . . Claims . . . . . . . . . . . . . . . . . . . . . “ “ ● ● “ “ ● o “ o 0 0 ● o “ (1) Tort Claims . . . . . . . . . . . . . . . . . . . . . . . . “ “ ● o 0 (2) Contractor Claims BefOrethe Board of Contract Appeal s.... (3) Cl aims Before the U.S. Court of Claims . . . . . . . . . . . . . . Transfers . . . . . . . . . . . . . . . . . . . . . ● “ o 0 “ “ “ ● “ ● ● o ● (1) Cost of Work Performed bYOne DOE Of fice for Another . . . . . (2) Transfers of DOE-Owned Material s and Equipment . . . . . . . . (3) Adjustments in Amounts Authorizedin Formal Interoffice Agreements . . . . . . . Interest . . . . . . . . . . . . . . . . . . . Loans . . . . . . . . . . . Federal Loan Guarantees Foreclosures . . . . . . . Payments in Lieu of Taxes 6. Adjustments to Obligations . a. Recovery of Funds from Pr- Unexpired Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or-Year Obl i gat- . . . . . . . . . . (1) ~ ReDorting Deobligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ons of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II I-3 II I-3 I I I-4 II I-4 II I-4 II I-5 I II-5 II I-5. . . 1- 1 L 1-3 II I-5 II I-5 II I-6 II I-6 I II-6 II I-7 I I I-7 II I-8 II I-9 I I I-9 II I-9 II I-9 I I I-9 II I-9 111-10 II 1-10 II 1-10 II 1-10 111-11 111-11 111-11 II 1-11 II 1-11 111-11 II 1-11 111-12 - - - . - 1 11-lZ II 1-12 111-12 I I 1-12 II 1-13 111-13 II 1-13 I I 1-13 I I 1-14 (2) Requests -for Allotment Of Funds of UnexPi red Accounts . . . . 111-14 (3) Requests for Allotment Of Funds of ExPired Accounts . . . . . . 111-16 (4) Apportionments . . ..........”.””” ““ ““ .“ .... 111-17 (5) Funds Not Approved for Allotment . . . . . . . . ....””””. 111-17 iv Vertical line denotes change. ? 6-8-92 DOE2200.5B Paragraph4a (5) Agrantor subsidy payable under any of the following conditions: (a) From appropriations made for payment of. or contributions to. amounts required to be paid in specific amounts fixedby Iaw or under formulas prescribed bylaw, (b) Under an agreement authorized bylaw, and (c) Under DOE-approved plans consistent with and authorized bylaw: (6) Amiability that may result from pending litigation: (7) Employment or services of persons or expenses of travel under law; (8) Services provided by public utilities; and (9) Other legal liability of the Government against unavailable appropriation or fund.

3. RVATIONOF FUNDS In accordance with Chapter I, “AdministrativeC ontrol of Funds,” funds shall ~e reserved prior to incurring obligations. A reservation (also referred teas ‘commitment’’ or ’’initiation”) of funds is a budgetary and accounting action taken to reserve funds to insure that funds are available before contractual documents are consummated orto insure that funds are available for current-year requirements for travel, payroll, or miscellaneous noncontractual obligations. A reservation permits the processingof obligations upto the amount of the reservation without recertification of funds availability. If an obligation will exceed the amountof the reservation, then funds mustbe recertified. A reser- vation is recorded each time a program release document is created and funds are certified as available. Reservations also are recorded for expected payroll expenditures. contingent liabilities, and other anticipated expenditures. Fund reservations are valid only during the fiscal year in which they are executed. If funds are not obligated bytheend of the fiscal year, anew reservation offunds must bemade in the new fiscal year. 4. APPROPRIATION LIMI TATIONS. One of the primary means of control of appropriations by Congress isby placing time limits on their availability. Atime-limited appro- priation is available for obligation only during the period forwhich itis made, but it remains available for 5years for adjustments. including previously unre- corded valid obligations, and for expenditures to liquidate properly made obliga- tions. The numbering system for identifying appropriationsis in Chapter II, “Accountingf orAppropriations and Other Funds.” Classified on the basisof duration. appropriations are of fixed duration (annual and multiple year) andno year. An appropriation is assumed to bean annual appropriation unless the appropriation Ianguage specifically states otherwise. a. Annua 1 ADDrO r)riations An annual appropriation (also called afiscal yearora l-year appropriation)~s made for a specified fiscal yearand is available for obligation only during the fiscal year for which it was made. Unless specified otherwise bylaw, the appropriationis available only tomeet bona fide needs of the fiscal year for which itwasappropri ated. If annual funds arenotobli- gatedby the end of the fiscal year forwhich they were appropriated, they areno longer available for obligation and are said to have “expired. ” Expired 111-3 e DOE 2200.5B Chg 3 6-14-93 Paragraph 4a accounts maintain their fiscal year identity for 5 years and are available for recording, adjusting, and liquidating obligations properly chargeable to those m accounts. Further discussion of fund availability is in Chapter II, para- graph 7. Unless specified otherwise by law, the bona fide need rule (applica- ble only for annual or multiple-year funds) means that obligations may be incurred only to meet needs arising in the current fiscal year. For example, suppose that as the end of a fiscal year approaches, a program purchases a truckload of stores inventory when it is clear, based on current usage, that it already has in stock enough stores inventory to last several years into the future. It would appear that the program is merely trying to use up its appropriation before it expires, and the purchase would violate the bona fide need rule. Determination of what constitutes a bona fide need for a fiscal year depends largely on the facts and circumstances of each case. The following are some instances of bona fide need: (1) J)eliverv of Materials Beyond the Fiscal Year. An obligation can be made against current-year funds for materials to be delivered and paid for in the next fiscal year if delivery is no