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1\. PURPOSE AND SCOPE. This procedure prescribes the Community Planning

and Development system of administrative control of funds pursuant to

HUD Handbook 1830.2 REV-3, Administrative Control of Funds; HUD

Handbook 1830.3 REV-3, Apportionment and Allotment Procedures; Section

3679, Revised Statutes, as amended (31 U.S.C. 1514), and Office of

Management and Budget [Circular No.
A-34](http://www.whitehouse.gov/omb/circulars/index.html) Revised,
Instructions on

Budget Execution. The procedure covers appropriations or other funds

subject to apportionment and allotment including credit limitations and

funds for staff expenses. This system is designed to:

a\. Restrict obligations or expenditures, credit limitations or any

other formal use of apportioned or allotted authority against

allotments issued on behalf of the Secretary of Housing and Urban

Development by the Assistant Secretary for Administration or her or

his designee.

b\. Enable the Secretary to fix responsibility for, and promptly report

to the President and the Congress on any violations of 31 U.S.C.

subchapter II.

2\. THE ANTI-DEFICIENCY ACT. See attached Appendix I for provision of
this

Act which fixes responsibility for any violation of the Anti-Deficiency

Act.

3\. TERMINOLOGY. Appendix II attached explains the terms used in this

procedure or any supplemental instructions issued hereunder and shall

have the same meaning as those defined in the Office of Management and

Budget Circular No. A-34, Revised, and in Chapter 2 of HUD Handbook

1830.2 REV-3.

4\. APPORTIONMENT OF FUNDS BY THE OFFICE OF MANAGEMENT AND BUDGET.

Appropriations and other funds available to the Department normally are

subject to apportionment by the Office of Management and Budget as

provided in 31 U.S.C. subchapter II. Such apportionments or

reapportionments are binding upon the Department in controlling the

administration of funds. Regulations governing the apportionment of

funds are contained in Office of Management and Budget Circular No.

A-34, Revised, and in HUD Handbook 1830.3, REV-3.

5\. APPORTIONMENT PROCEDURES.

a\. The Budget Division in the CPD Office of Management is responsible

for the preparation of requests for apportionments and

reapportionments of program funds and credit limitations available

to the Assistant Secretary for Community Planning and Development.

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b\. Initial requests for apportionment of funds to carry out Community

Planning and Development programs shall be prepared by the Budget

Division and submitted to the HUD Office of Budget within 5 days

after the program appropriations for the year are known.

c\. In cases where appropriations or other authority are available

prior to the start of the fiscal year, apportionment requests shall

be prepared by the Budget Division and submitted to HUD Office of

Budget by August 15.

d\. Apportionment and reapportionment requests prepared by the Budget

Division shall be fully supported in writing in terms of program

plans and objectives with respect to proposed use of available

authority. Deviations from the budgeted levels should be

thoroughly explained.

e\. Apportionment requests shall be forwarded through the Director of

the Office of Management for approval and submitted to the HUD

Office of Budget.

f\. These requests will be used by the HUD Office of Budget as the

basis for:

\(1\) Requesting the apportionment of funds from the Office of

Management and Budget after enactment of appropriations.

\(2\) Issuing interim authority to the allottee (Assistant Secretary

for Community Planning and Development).

\(3\) Issuing annual allotments within the availability of

appropriations and the apportionments made by the Office of

Management and Budget.

6\. ADMINISTRATION OF ALLOTMENTS. Allotments are issued on behalf of the

Secretary by the Assistant Secretary for Administration or her or his

designee to the Assistant Secretary for Community Planning and

Development for program funds and credit limitations.

a\. The Assistant Secretary for Community Planning and Development

shall conduct operations under her or his administrative control

within the funds allotted and within such limitations as to time

and purpose as may be indicated in the allotment, and establish

such administrative controls as may be necessary to carry out this

responsibility.

b\. The Assistant Secretary for Community Planning and Development has

designated the Director, Budget Division, to be responsible to her

or him for limiting commitments to amounts permitted by such

allotments.

c\. The Director, Budget Division shall approve as Source Officer all

Forms HUD-718, Funds Reservation and Contract Authority used for

Headquarters reservation of program funds and credit limitations.

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d\. The Budget Division will prepare all Forms HUD-617, Regional Office

Notification of Fund Availability and Reservation of Funds.

e\. The Director of the HUD Office of Finance and Accounting will

furnish the Budget Division with periodic reports for each

Community Planning and Development program, showing the status of

appropriations, revolving fund and other authorization or

apportionment, and the allotment accounts. She or he will also be

responsible for notifying the Director, Budget Division when it

appears, from data available, that the allotment is likely to be

exceeded.

f\. The Director, Budget Division shall be responsible for the review

of the financial reports received from the HUD Office of Finance

and Accounting and for notifying the Assistant Secretary for

Community Planning and Development when allotments are likely to be

or have been exceeded.

7\. MANAGEMENT CONTROL FOR PURPOSES OTHER THAN APPORTIONMENTS.

a\. Fund Assignments. All fund assignments (Form HUD-185, Regional

Fund and Contract Authority Assignment) will be prepared by the

Budget Division and will be processed consistent with HUD Handbook

1830.04 Procedures for Processing Program Fund and Contract

Authority Assignments.

b\. Headquarters Operating Budgets. The Director, Office of

Management, CPD is responsible for restricting obligations or

expenditures for those Salaries and Expenses object classifications

contained in the CPD Headquarters Operating Budget issued by the

Assistant Secretary for Administration, to amounts contained

therein.

c\. Administrative Constraints. While use of funds in excess of the

above administrative subdivisions will not constitute a reportable

violation under the provisions of 31 U.S.C. 1517, the incurrence of

a commitment in excess of any classification or subdivision will be

subject to administrative review and such discipline as

circumstances warrant.

8\. VIOLATIONS AND REPORTS.

a\. Violations to be Reported. As required by the Anti-Deficiency Act

and OMB instructions, reports shall be furnished to the President,

through the Director of the Office of Management and Budget, and to

the Congress on violations of the following character:

\(1\) Any case where an officer or employee of the United States has

made or authorized an expenditure from or created or

authorized an obligation (or reservation in the case of funds

apportioned on a pre-obligation basis) under any appropriation

or fund, including revolving funds, in excess of the amount

available therein. (For expired accounts, the \"Amount

available therein\" includes amounts available for restoration

to the account.)

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\(2\) Any case where an officer or employee of the United States

has authorized or created a direct loan obligation or

guarantee commitment in excess of the amount available for

those purposes, as prescribed therein.

\(3\) Any case where an officer or employee of the United States

has involved the Government in a contract or other obligation

for the payment of money for any purposes in advance of

appropriations made for such purposes, unless such contract

or obligation is authorized by law.

\(4\) Any case where an officer or employee of the United States has

accepted voluntary service for the United States (except as

authorized by Section 7(k) of the Department of Housing and

Urban Development Act) or employed personal services in excess

of that authorized by law, except in cases of emergency

involving the safety of human life or the protection of

property.

\(5\) Any case where an officer or employee of the United States

has authorized or created an obligation or made an expenditure

in excess of an apportionment, reapportionment or allotment,

reallotment, or suballotment. This includes adjustments that

cause obligations in expired accounts that have not been

merged in an \"M\" account to exceed the apportionment for the

year in which such obligations were incurred.

\(6\) Any case where an officer or employee of the United States has

authorized or created an obligation or made an expenditure in

excess of the amount permitted by the prescribed and approved

administrative control system.

b\. Procedures for Reporting. Under provisions of 31 U.S.C. 1514 and

Office of Management and Budget Circular No. A-34, Revised, the

following responsibilities are assigned:

\(1\) Any employee having knowledge of any violation shall

immediately report such violation through appropriate

supervisory officials to the Director, Budget Division.

\(2\) The Director, Budget Division shall promptly submit a report

through the Director, Office of Management for submittal by

the Assistant Secretary for Community Planning and Development

to the Assistant Secretary for Administration setting forth

the following information:

\(a\) The title and symbol (including the fiscal year) of the

appropriation or fund account, the amount involved for

each violation, and the date on which the violation

occurred.

\(b\) The name and position of the officer(s) or employee(s)

responsible for the violation.

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\(c\) All the pertinent facts of the violation, including the

type of violation (e.g. overcommitment of an allotment,

reallotment, suballotment, apportionment or

appropriation), the primary reason or cause, and any

statement of the responsible officer(s) or employee(s)

with respect to any circumstances which she or he

believes to be extenuating. The type of overcommitment;

i.e., overreservation, overobligation, or

overexpenditure, depending on the basis of the

apportionment, shall be specified.

\(d\) A recommendation as to the administrative discipline to

be imposed and any other steps recommended to be taken

with respect to the officer(s) or employee(s) or an

explanation as to why no disciplinary action is

considered necessary.

\(e\) A statement of any new safeguards provided to prevent

recurrence of that type of violation, and

\(f\) A statement regarding the adequacy of the provisions of

this regulation.

\(3\) All violations will be reported through the fund distribution

channels through which the authority involved was derived, as

well as to the Offices of Finance and Accounting and General

Counsel. In addition, as is required by Chapter 3, Paragraph

1 of HUD Handbook 2000.3 REV, \"Office of Inspector General

Activities\", the violation will be simultaneously reported to

the Department\'s Office of Inspector General. Immediately

after the violation becomes known, the Assistant Secretary for

Administration will cause to be prepared for the signature of

the Secretary a report of the violation to the President and

the Congress in accordance with the provisions of 31 U.S.C.

1517 and the Office of Management and Budget Circular No.

A-34, Revised.

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