# **2 - Funds Management Processes** {#funds-management-processes .unnumbered}

## **Funds Management Processes**

A strong Funds Management mechanism ensures that Federal dollars are
managed properly in the operation of all Core Financial Systems and
provides an acceptable level of accountability. The Antideficiency Act
requires that the head of each executive agency, subject to the approval
of the President, prescribe by regulation a system of administrative
control not inconsistent with accounting procedures. The system shall be
designed to:

1.  Restrict obligations and payments from each appropriation or fund
    account to the lower of the amount provided in the account (31
    USC 1341) or amount of the apportionment or reapportionment (31 USC
    1514); and

2.  Enable the head of the agency to fix responsibility for an
    obligation or payment exceeding the amount provided in the account
    or the apportionment.

The President delegated this authority to the Director of the Office of
Management and Budget (OMB). OMB issues instructions on the
administrative control of funds in OMB Circular A-11. The terminology in
OMB Circular A-11 shall be used in the Funds Management processes.

When an appropriation bill is enacted into law, funds are not
automatically made available to agencies. The Antideficiency Act
requires that OMB subdivide the appropriation and any other budgetary
resources. OMB uses the apportionment and sub-apportionment schedule (SF
132) to review and subdivide the appropriation. This is intended to
promote prudent fiscal management by preventing agencies from spending
all available resources before the end of the fiscal year.

Apportionment requests are submitted to OMB by the agencies on an SF
132, "Apportionment and Reapportionment Schedule." OMB reviews the
requests and takes action. The Standard Form (SF) 132 has two sections:
The first, Budgetary Resources, details the amounts available to the
agency. The second, Application of Budgetary Resources, displays how the
agency intends to use the resources: Category A (quarterly); Category B
(by program); and Category C (planned for obligation after the current
fiscal year). Please note that Apportionments are updated throughout the
year. The SF 132 is a key legal document. It represents the President's
disposition of available resources within an appropriation of fund
account.

Apportionments establish legal spending limits for the appropriation.
These spending limits must be reflected in the Core Financial System so
that the spending limitations can be enforced systematically. Entering
these spending limits into the Core Financial System can be accomplished
by Budget and/or Finance personnel as defined within an agency.

The approved SF 132 becomes the basis for funds control within the
agency. However, agencies can further subdivide budgetary resources to
lower levels of the organization.

Prior to making these internal subdivisions, agencies typically review
their planned resource situation for the upcoming year. The result is a
blueprint (sometimes called "operating plan") for use of the available
resources.

The Funds Management processes provide safeguards that ensure the
distribution, obligation, and payments of funds within budgetary
limitations. Specifically, these processes verify the availability of:

-   Allotted and suballoted funds for commitment;

-   Committed, allotted, and suballotted funds for obligations; and

-   Obligated, allotted and suballoted funds for payment (cash outlay).

The Funds Management processes described in this chapter are intended to
detail the funds control placed on the amounts located on lines 1 thru
12 of the SF 132 and to assist agencies in complying with all applicable
financial management statutes, regulations, and requirements. In
addition, the steps outlined in this document provide standard processes
for ensuring effective Funds Control policy.

The flowcharts and process steps for the Funds Management Processes
detailed in this chapter are:

-   FM 2.1 - Budgetary Authority Process

-   FM 2.1.1 - Budgetary Resources. This section describes the recording
    of lines 1 thru 6 of the SF 132 in the Core Financial System. Once
    recorded in the Core Financial System, these budgetary resource
    amounts are available for the recording of apportionments.

-   FM 2.1.2 - Record Application of Budgetary Resources
    (Apportionment). This section describes the recording of lines 8
    thru 11 of the SF 132 in the Core Financial System. Once recorded in
    the Core Financial System, these amounts may be further sub-divided
    by an agency into allotments, sub-allotments and any other lower
    level distribution of funds.

-   FM 2.2 - Funds Distribution

-   FM 2.2.1 - Allotment Distribution

-   FM 2.2.1.1 - Allotment for (Direct) Non-Anticipated,
    Non-Reimbursable Funding. This section addresses the allotment
    process for direct or non-anticipated, non-reimbursable resources.
    Obligations or expenditures cannot be incurred until an allotment is
    made by the agency.

-   FM 2.2.1.2 - Allotment for Anticipated Reimbursable Funding. This
    section addresses the allotment process for anticipated reimbursable
    funding. Obligations cannot be incurred if reimbursable work is
    performed on behalf of a non-federal customer until an advance is
    received or working capital is provided.

-   FM 2.2.1.3 - Allotment for Anticipated Non-Reimbursable Funding.
    This section addresses the allotment processes for anticipated
    non-reimbursable resources. Anticipated amounts are not available
    for reuse until they are actually recovered. Offsetting collections
    are typically credited directly to expenditure accounts where they
    are generally available for obligation and outlay; however, any type
    of spending is prohibited unless there is cash on hand.

-   FM 2.2.2 - Sub-Allotment Distribution. This section addresses the
    sub-allotment process for allotted resources; however, this process
    is not required and is optional based upon agency practice. If
    sub-allotments are used by an agency, obligations or expenditures
    cannot be incurred until a sub-allotment is made by the agency.

-   FM 2.2.3 - Lower Level Distribution. This section addresses the
    lower level of budgetary distribution, which may be referred to as:
    allocations, sub-allocations, allowances, sub-allowances, or
    spending/operating plans. The lower level budgetary distributions
    are often based on program, projects, or organization/office and
    contribute to the administrative control of funds.

-   FM 2.3 - Funds Control Process

-   FM 2.3.1 - Establishing Commitments and Obligations for Goods and
    Services. This section describes the procedures necessary to prepare
    an obligation, for acquisitions or services, which has associated
    prior commitment accounting.

-   FM 2.3.2 - Establishing Obligations Not Requiring Commitment. This
    section describes the procedures necessary to prepare an obligation
    for acquisitions that does not require commitment accounting.

-   FM 2.3.3 - Funds Check Prior to Obligation. This section applies to
    acquisitions for which commitments and obligations are used and
    describes the procedures taken when performing a funds check prior
    to obligation of funds.

-   FM 2.3.4 - Unexpired Funds Validation and Verification. This section
    addresses the process of validating and verifying the availability
    of funds for spending transactions.

-   FM 2.3.5 - Expired Funds Validation and Verification. This section
    addresses the process of validating and verifying the availability
    of expired funds for the recording of previously unrecorded
    obligations and/or to make legitimate update adjustments to existing
    obligations until the expired authority is cancelled and the expired
    account is closed.

**Note:** The Focus Group for this effort decided that Treasury Warrants
would not be included in this document, as they are, in effect, a
verification of the appropriation (a Treasury FACTS II edit) and not an
integral element of Funds Control.

Included in the scope of this chapter are the following:

-   The Budgetary Resources (process of recording an agency's budgetary
    resources to support the establishment of available funding) and
    Funds Distribution (the process of establishing the available funds
    within the Core Financial System (see OMB Circular A-127 for the
    definition of a Core Financial System)) which are used for funds
    validation and verification.

-   The Funds Management business process standards enforce the
    distribution, obligation and payment of funds within budgetary
    limitations as established through the funds execution processes.

The following flowchart depicts the sequence and inter-relations of the
Funds Management processes:

![](media/image1.wmf){width="6.491666666666666in"
height="5.0368055555555555in"}

## 

##  **Budgetary Authority Process**

Establishing budgetary authority is the beginning of the budget
execution process. This process records an agency's budgetary resources
and supports the establishment of legal budgetary limitations within the
agency, including appropriation warrants, apportionments,
reapportionments, transfer allocations and continuing resolutions. It
also supports the establishment of funding to agencies that are not
subject to apportionment.

This section documents the recording of the apportionment and
reapportionment request (SF 132) information in the Core Financial
System in order to establish budgetary resources and the divisions of
amounts per the Apportionment Schedule.

Budgetary resources are made available as follows:

1.  Apportionment of unobligated balances carried forward and available
    to the Treasury Appropriation Fund Symbol (TAFS). This is approved
    on an SF 132 from OMB.

2.  Apportionment of amounts made available under an interim Continuing
    Resolution (CR). This approval is issued by an OMB Bulletin and may
    be followed subsequently by an SF 132 from OMB.

3.  Apportionment of amounts made available under a regular annual
    appropriations act. This is automatically apportioned by authority
    cited in OMB Circular A-11 upon enactment and is followed by an SF
    132 from OMB.

An agency's Budget Office, or the CFO in concurrence with the Budget
Office, will issue official documentation that will be used to establish
budgetary resources (e.g., enacted appropriations, anticipated
resources, prior year recoveries) as well as apportionment divisions.
This official documentation may be in the form of an actual approved SF
132, an agency internal "mock" SF 132, a CR letter, or a resources
letter. The form of official documentation will be dependent upon an
agency's internal policies and procedures. However, the intentional use
of the 'agency internal official document' is to establish the resources
and controls that support the distribution of funding in the agency's
Core Financial System.

Budget Authority is recorded in the Core Financial System for multiple
uses:

-   To establish availability of budgetary resources for use by agency
    program offices to obligate and expend in support of agency
    missions; and

-   Once the appropriate distribution has been recorded in the Core
    Financial System, funds control verification can be performed on any
    spending chain transaction, i.e., commitment, obligation and
    payment.

## **Budgetary Resources**

The Budgetary Resources process illustrates the recording of resources
as defined on lines 1 thru 6 of the SF 132. Examples of resources
recorded are: enacted appropriations; spending authority from offsetting
collections; and recoveries of prior year obligations.

When agencies establish budgetary resources in their financial system,
they typically employ use of an internal fund code, the agency-assigned
code value for a fund. It enables the derivation of other accounting
classification elements used to further classify funds. The internal
fund code may be used to derive the account identification codes
required for reporting externally to Treasury and OMB. The Common
Government-wide Accounting Classification (CGAC) structure establishes
several standard practices for segregating three types of internal funds
below the Treasury Account Symbol (TAS) level:

-   Funds that have multiple apportionment categories;

-   Funds that have both discretionary and mandatory authority; and

-   Funds that have both direct and reimbursable authority.

For guidance on CGAC, see FSIO's *Federal Financial Management
Standards,* *Common Government-wide Accounting Classification
Structure*.

Once recorded in the Core Financial System, these budgetary resource
amounts are then available for the recording of apportionments.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.1.1 -- Budgetary Resources Flowchart {#fm-2.1.1-budgetary-resources-flowchart .unnumbered}

![](media/image2.wmf){width="6.490277777777778in"
height="4.723611111111111in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart

The Funds Management Budgetary Resource process steps are described as
follows:

+--------+--------------+----------------+-----------------+-----------+
| Step   | Step Name    | Step           | Business Rules  | CFSR Req. |
| ID     |              | Description    |                 |           |
+========+==============+================+=================+===========+
| FM     | Enter        | Enter          | Enter the       | FMC-01    |
| 2      | Budgetary    | Budgetary      | budgetary       |           |
| .1.1.1 | Resources    | Resources in   | resource        | FMC-03    |
|        | from Agency  | the Core       | breakdowns      |           |
|        | D            | Financial      | prescribed by   | FMC-07    |
|        | ocumentation | System at the  | OMB CIRCULAR    |           |
|        |              | United States  | A-11 for the SF | FMC-08    |
|        |              | Standard       | 132 or official |           |
|        |              | General Ledger | documentation   | FMC-09    |
|        |              | (USSGL) level  | (e.g.,          |           |
|        |              | and to record  | carryover,      |           |
|        |              | FACTS II       | enacted         |           |
|        |              | attributes to  | appropriation,  |           |
|        |              | begin the      | anticipated     |           |
|        |              | chain of       | resources, and  |           |
|        |              | monitoring     | contract        |           |
|        |              | resources.     | authority).     |           |
|        |              |                |                 |           |
|        |              |                | Official        |           |
|        |              |                | documentation   |           |
|        |              |                | from the Budget |           |
|        |              |                | or CFO Office   |           |
|        |              |                | may take the    |           |
|        |              |                | form of a CR    |           |
|        |              |                | letter, actual  |           |
|        |              |                | or mock SF132,  |           |
|        |              |                | resource letter |           |
|        |              |                | or other such   |           |
|        |              |                | official agency |           |
|        |              |                | documentation.  |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Enter FACTS  | Enter          | Only the FACTS  | GLC-02    |
| 2      | I & II Data  | appropriate    | II attributes   |           |
| .1.1.2 | Elements     | attributes and | not inherent in | GLC-03    |
|        |              | domain values  | the internal    |           |
|        |              | for applicable | fund code are   | SMB-01    |
|        |              | USSGL accounts | entered.        |           |
|        |              | as they relate |                 |           |
|        |              | to resources   | Appropriate     |           |
|        |              | recorded       | edits and       |           |
|        |              | (e.g., public  | validation      |           |
|        |              | law,           | rules have been |           |
|        |              | supplemental   | configured for  |           |
|        |              | a              | current USSGL   |           |
|        |              | ppropriation). | crosswalks.     |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Certify      | After          | This step       | TLE-01    |
| 2      | Entry        | budgetary      | ensures a       |           |
| .1.1.3 |              | resource(s)    | separation of   | TLE-02    |
|        |              | are entered    | duties for      |           |
|        |              | into the       | review and      | TLE-03    |
|        |              | system,        | approval of     |           |
|        |              | approval must  | transaction     | TLE-04    |
|        |              | be performed   | prior to        |           |
|        |              | by appropriate | recording in    | TLE-06    |
|        |              | personnel.     | the General     |           |
|        |              |                | Ledger.         | TLE-07    |
|        |              |                |                 |           |
|        |              |                |                 | TLE-08    |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Record in    | After the      | The budgetary   | GLB-01    |
| 2      | the Core     | budgetary      | resource        |           |
| .1.1.4 | Financial    | resource(s)    | entries are     | GLC-01    |
|        | System       | are entered    | recorded using  |           |
|        | General      | into the       | the USSGL       | GLC-05    |
|        | Ledger       | system and     | Account         |           |
|        |              | approved by    | Transaction     | GLC-07    |
|        |              | appropriate    | Listing         |           |
|        |              | personnel, the | provided in the |           |
|        |              | transaction is | current         |           |
|        |              | recorded in    | Treasury        |           |
|        |              | the Core       | Financial       |           |
|        |              | Financial      | Manual (TFM).   |           |
|        |              | System General |                 |           |
|        |              | Ledger.        | Examples        |           |
|        |              |                | include, but    |           |
|        |              |                | are not limited |           |
|        |              |                | to, the         |           |
|        |              |                | following       |           |
|        |              |                | transaction     |           |
|        |              |                | codes from the  |           |
|        |              |                | current TFM:    |           |
|        |              |                |                 |           |
|        |              |                | TFM-A104 To     |           |
|        |              |                | record the      |           |
|        |              |                | enactment of    |           |
|        |              |                | appropriations. |           |
|        |              |                |                 |           |
|        |              |                | TFM-A702 To     |           |
|        |              |                | record          |           |
|        |              |                | anticipated     |           |
|        |              |                | reimbursements. |           |
|        |              |                |                 |           |
|        |              |                | TFM-A138 To     |           |
|        |              |                | record          |           |
|        |              |                | estimated       |           |
|        |              |                | recoveries of   |           |
|        |              |                | prior-year      |           |
|        |              |                | obligations.    |           |
|        |              |                |                 |           |
|        |              |                | **Note:** If a  |           |
|        |              |                | reversing entry |           |
|        |              |                | is being        |           |
|        |              |                | recorded,       |           |
|        |              |                | internal checks |           |
|        |              |                | and edits must  |           |
|        |              |                | ensure that the |           |
|        |              |                | net amount      |           |
|        |              |                | (e.g., original |           |
|        |              |                | amount +/- any  |           |
|        |              |                | prior           |           |
|        |              |                | adjustments) is |           |
|        |              |                | greater than or |           |
|        |              |                | equal to zero.  |           |
|        |              |                | Reversals can   |           |
|        |              |                | never exceed    |           |
|        |              |                | the total       |           |
|        |              |                | amount recorded |           |
|        |              |                | for the pro     |           |
|        |              |                | forma           |           |
|        |              |                | transaction     |           |
|        |              |                | code referenced |           |
|        |              |                | in the original |           |
|        |              |                | transaction(s). |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Exempt from  | Check to see   | Internal agency |           |
| 2      | Ap           | if the         | documentation   |           |
| .1.1.5 | portionment? | budgetary      | would include a |           |
|        |              | resource is    | list of agency  |           |
|        |              | exempt from    | funds that are  |           |
|        |              | Apportionment. | exempt from     |           |
|        |              |                | Apportionment.  |           |
|        |              |                |                 |           |
|        |              |                | Verify that     |           |
|        |              |                | this list of    |           |
|        |              |                | agency funds    |           |
|        |              |                | that are exempt |           |
|        |              |                | from            |           |
|        |              |                | Apportionment   |           |
|        |              |                | is always       |           |
|        |              |                | consistent with |           |
|        |              |                | OMB's list.     |           |
+--------+--------------+----------------+-----------------+-----------+

##  **Record Application of Budgetary Resources (Apportionment)**

The Apportionment process documents the recording of the amounts from
lines 8 thru 11 of the SF 132, "Application of Budgetary Resources". The
apportionment divides amounts that are available for obligation by
specific time periods (typically by quarters, but could be for an entire
fiscal year), activities, projects, object classes or a combination
thereof. The apportionment may be further sub-divided by an agency into
allotments, sub-allotments and any other lower level distribution of
funds.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.1.2 -- Record Application of Budgetary Resources (Apportionment) Flowchart {#fm-2.1.2-record-application-of-budgetary-resources-apportionment-flowchart .unnumbered}

## ![](media/image3.wmf){width="6.490277777777778in" height="4.723611111111111in"} {#section-1 .unnumbered}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Record Availability of Resources process steps are described as
follows:

+---------+-------------+----------------+----------------+----------+
| Step ID | Step Name   | Step           | Business Rules | CFSR     |
|         |             | Description    |                | Req.     |
+=========+=============+================+================+==========+
| FM      | Enter       | Record lines 8 | The budgetary  | FMC-01   |
| 2.1.2.1 | Ap          | thru 11 of the | resource       |          |
|         | portionment | SF 132.        | authority      | FMC-04   |
|         | Detail      |                | apportioned by |          |
|         | (A          |                | OMB and        | FMC-07   |
|         | vailability |                | available for  |          |
|         | of          |                | allotment      | FMC-08   |
|         | Resources)  |                | entries are    |          |
|         |             |                | recorded using | FMC-09   |
|         |             |                | the USSGL      |          |
|         |             |                | Account        | FMC-13   |
|         |             |                | Transaction    |          |
|         |             |                | Listing        |          |
|         |             |                | provided in    |          |
|         |             |                | the current    |          |
|         |             |                | TFM.           |          |
|         |             |                |                |          |
|         |             |                | The            |          |
|         |             |                | anticipated    |          |
|         |             |                | resources      |          |
|         |             |                | apportioned    |          |
|         |             |                | but not        |          |
|         |             |                | available for  |          |
|         |             |                | use until they |          |
|         |             |                | are realized   |          |
|         |             |                | for            |          |
|         |             |                | anticipated    |          |
|         |             |                | resources in   |          |
|         |             |                | programs       |          |
|         |             |                | subject to     |          |
|         |             |                | apportionment  |          |
|         |             |                | entries are    |          |
|         |             |                | recorded using |          |
|         |             |                | the USSGL      |          |
|         |             |                | Account        |          |
|         |             |                | Transaction    |          |
|         |             |                | Listing        |          |
|         |             |                | provided in    |          |
|         |             |                | the current    |          |
|         |             |                | TFM.           |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Identify if | User           |                |          |
| 2.1.2.2 | ap          | identifies the |                |          |
|         | portionment | resource as    |                |          |
|         | as Actual   | Actual or      |                |          |
|         | or          | Anticipated.   |                |          |
|         | Anticipated | If             |                |          |
|         |             | apportionment  |                |          |
|         |             | is             |                |          |
|         |             | anticipated,   |                |          |
|         |             | check whether  |                |          |
|         |             | resource is    |                |          |
|         |             | realized yet.  |                |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Determine   | User enters    |                | FMC-04   |
| 2.1.2.3 | Ap          | the internal   |                |          |
|         | portionment | fund code for  |                | GLC-02   |
|         | Internal    | the            |                |          |
|         | Fund Code   | apportionment. |                | GLC-03   |
|         |             | The accounting |                |          |
|         |             | classification |                |          |
|         |             | elements are   |                |          |
|         |             | typically      |                |          |
|         |             | derived not    |                |          |
|         |             | entered.       |                |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Enter       | Enter          | Category A     |          |
| 2.1.2.4 | Category A  | apportionment  | apportionments |          |
|         | Ap          | by fiscal      | are entered by |          |
|         | portionment | quarter.       | fiscal quarter |          |
|         |             |                | only with no   |          |
|         |             |                | further        |          |
|         |             |                | breakdown. Per |          |
|         |             |                | OMB Circular   |          |
|         |             |                | A-11           |          |
|         |             |                | instructions   |          |
|         |             |                | for section    |          |
|         |             |                | 1208, Category |          |
|         |             |                | A              |          |
|         |             |                | apportionments |          |
|         |             |                | distribute     |          |
|         |             |                | budgetary      |          |
|         |             |                | resources by   |          |
|         |             |                | fiscal         |          |
|         |             |                | quarter.       |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Enter       | Enter          | Category B     | SMA-03   |
| 2.1.2.5 | Category B  | apportionment  | apportionments |          |
|         | Ap          | by period.     | are entered by |          |
|         | portionment |                | activity,      |          |
|         |             |                | beginning and  |          |
|         |             |                | end date,      |          |
|         |             |                | program,       |          |
|         |             |                | project, and   |          |
|         |             |                | object class   |          |
|         |             |                | as applicable. |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Enter       | Enter          | Enter as       |          |
| 2.1.2.6 | Category C  | apportionment  | available in   |          |
|         | Ap          | to be          | future fiscal  |          |
|         | portionment | available in   | year.          |          |
|         |             | future fiscal  |                |          |
|         |             | year.          | Note: OMB      |          |
|         |             |                | designates     |          |
|         |             |                | Category C as  |          |
|         |             |                | apportioned    |          |
|         |             |                | for future     |          |
|         |             |                | use.           |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Amount or   | Is the         | Verify that    | SMB-11   |
| 2.1.2.7 | d           | budgetary      | this amount is |          |
|         | istribution | resource less  | less than or   | SMB-12   |
|         | less than   | than or equal  | equal to Line  |          |
|         | or equal to | to total       | 7 (Total       | SMB-13   |
|         | Total       | budgetary      | Budgetary      |          |
|         | Budgetary   | resources      | Resources) of  | SMC-09   |
|         | Resources?  | previously     | the SF132.     |          |
|         |             | recorded?      |                |          |
|         |             |                | For a reversal |          |
|         |             |                | entry, verify  |          |
|         |             |                | that the       |          |
|         |             |                | amount of the  |          |
|         |             |                | reversal does  |          |
|         |             |                | not exceed the |          |
|         |             |                | credit balance |          |
|         |             |                | in USSGL       |          |
|         |             |                | accounts       |          |
|         |             |                | 4510 -         |          |
|         |             |                | A              |          |
|         |             |                | pportionments/ |          |
|         |             |                | 4590 --        |          |
|         |             |                | Apportionments |          |
|         |             |                | Unavailable.   |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Research    | Budget/Finance | Designated     | SMB-16   |
| 2.1.2.8 | and Resolve | will resolve   | personnel      |          |
|         |             | the funding    | resolve        | SMC-09   |
|         |             | issue.         | applicable     |          |
|         |             |                | funding issues |          |
|         |             |                | in accordance  |          |
|         |             |                | with           |          |
|         |             |                | applicable     |          |
|         |             |                | rules,         |          |
|         |             |                | regulations,   |          |
|         |             |                | and agency     |          |
|         |             |                | guidelines.    |          |
+---------+-------------+----------------+----------------+----------+
| FM      | Certify     | After the      | This step      | SMC-09   |
| 2.1.2.9 | Entry       | budgetary      | ensures a      |          |
|         |             | resource is    | separation of  | TLE-01   |
|         |             | entered into   | duties for     |          |
|         |             | the system, it | review and     | TLE-02   |
|         |             | has to be      | approval of    |          |
|         |             | approved by    | transaction    | TLE-03   |
|         |             | appropriate    | prior to       |          |
|         |             | personnel.     | recording in   | TLE-04   |
|         |             |                | the General    |          |
|         |             |                | Ledger.        | TLE-06   |
|         |             |                |                |          |
|         |             |                |                | TLE-07   |
|         |             |                |                |          |
|         |             |                |                | TLE-08   |
+---------+-------------+----------------+----------------+----------+
| FM      | Record in   | After the      | After the      | GLB-01   |
| 2       | Core        | budgetary      | entry passes   |          |
| .1.2.10 | Financial   | resource is    | validation     | GLC-05   |
|         | System      | entered into   | edits, the     |          |
|         | General     | the system and | applicable     | GLC-07   |
|         | Ledger      | approved by    | entry is       |          |
|         |             | appropriate    | recorded.      |          |
|         |             | personnel, the |                |          |
|         |             | transaction is | Examples       |          |
|         |             | recorded in    | include, but   |          |
|         |             | the General    | are not        |          |
|         |             | Ledger.        | limited to,    |          |
|         |             |                | the following  |          |
|         |             |                | transaction    |          |
|         |             |                | codes from the |          |
|         |             |                | current TFM:   |          |
|         |             |                |                |          |
|         |             |                | TFM-A116 To    |          |
|         |             |                | record         |          |
|         |             |                | budgetary      |          |
|         |             |                | authority      |          |
|         |             |                | apportioned by |          |
|         |             |                | OMB and        |          |
|         |             |                | available for  |          |
|         |             |                | allotment.     |          |
|         |             |                |                |          |
|         |             |                | TFM-A118 To    |          |
|         |             |                | record         |          |
|         |             |                | anticipated    |          |
|         |             |                | resources      |          |
|         |             |                | apportioned    |          |
|         |             |                | but not        |          |
|         |             |                | available for  |          |
|         |             |                | use until they |          |
|         |             |                | are realized   |          |
|         |             |                | for            |          |
|         |             |                | anticipated    |          |
|         |             |                | resources in   |          |
|         |             |                | programs       |          |
|         |             |                | subject to     |          |
|         |             |                | apportionment. |          |
+---------+-------------+----------------+----------------+----------+

## **Funds Distribution**

Funds distribution is the part of the budget execution cycle in which
legally apportioned resources are distributed within an agency to
support missions, programs, and other objectives. The process
establishes multiple levels of budgetary control by allotting and
sub-allotting apportioned resources for agency management.

## 

## **Allotment Distribution**

An Allotment is an authorization within an agency (either from the
agency head or some other authorized individual) to lower levels of the
organization to incur obligations or make expenditures within a
specified amount. An agency would make these allotments in accordance
with the general apportionment requirements as stated in OMB Circular
A-11. The allotment would also be within the limitations established as
a part of recording the apportionment in the Core Financial System in
order to comply with the Antideficiency Act, which prohibits incurring
any obligation or making any expenditure in excess of an apportionment
or reapportionment. This section describes the distribution of funds as
a part of the allotment processes for:

> 2.2.1.1 (Direct) Non-Anticipated, Non-Reimbursable funding;
>
> 2.2.1.2 Anticipated Reimbursable funding; and
>
> 2.2.1.3 Anticipated Non-Reimbursable funding.

## 2.2.1.1 **Allotment for (Direct) Non-Anticipated, Non-Reimbursable Funding**

Non-Anticipated, Non-Reimbursable funding refers to those resources that
are directly appropriated through Congress and are prescribed in both
OMB Circular A-11 and the USSGL portion of the Treasury Financial
Manual. Specifically, obligations or expenditures cannot be incurred
until an allotment is made by the agency. An Allotment Advice or Advice
of Allotment document is the vehicle for the Program offices and/or
other internal administrative organization structure of available
funding.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.2.1.1 -- Allotment for (Direct) Non-Anticipated, Non-Reimbursable Funding Flowchart {#fm-2.2.1.1-allotment-for-direct-non-anticipated-non-reimbursable-funding-flowchart .unnumbered}

![](media/image4.wmf){width="6.490277777777778in"
height="4.569444444444445in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Allotment for Direct Resources process steps are described as
follows:

+---------+-------------+---------------+----------------+----------+
| Step ID | Step Name   | Step          | Business Rules | CFSR     |
|         |             | Description   |                | Req.     |
+=========+=============+===============+================+==========+
| FM      | Enter       | Use official  | Record control | SMB-25   |
| 2.      | Control     | requests      | total, then    |          |
| 2.1.1.1 | (Allotment) | (i.e.,        | distribute as  |          |
|         | Total       | allotment     | necessary.     |          |
|         | (Category A | advice) to    |                |          |
|         | or B)       | create        |                |          |
|         |             | allotment and |                |          |
|         |             | enter control |                |          |
|         |             | (allotment)   |                |          |
|         |             | total.        |                |          |
|         |             |               |                |          |
|         |             | The control   |                |          |
|         |             | total is      |                |          |
|         |             | often at the  |                |          |
|         |             | header level  |                |          |
|         |             | of the record |                |          |
|         |             | and is        |                |          |
|         |             | established   |                |          |
|         |             | to validate   |                |          |
|         |             | the line      |                |          |
|         |             | level         |                |          |
|         |             | entries.      |                |          |
+---------+-------------+---------------+----------------+----------+
| FM      | Enter       | Enter         |                | FMD-01   |
| 2.      | Allotment   | Allotment to  |                |          |
| 2.1.1.2 | D           | be            |                |          |
|         | istribution | distributed.  |                |          |
+---------+-------------+---------------+----------------+----------+
| FM      | Accounting  | Reference     | Verify         | CGAC     |
| 2.      | cla         | appropriate   | combinations   |          |
| 2.1.1.3 | ssification | accounting    | of accounting  | Co       |
|         | elements    | c             | classification | mpliance |
|         | valid?      | lassification | elements are   |          |
|         |             | elements.     | valid and      | SMA-03   |
|         |             |               | active.        |          |
|         |             |               |                | SMB-11   |
|         |             |               |                |          |
|         |             |               |                | SMB-12   |
|         |             |               |                |          |
|         |             |               |                | SMB-13   |
|         |             |               |                |          |
|         |             |               |                | SMB-30   |
|         |             |               |                |          |
|         |             |               |                | SMC-09   |
+---------+-------------+---------------+----------------+----------+
| FM      | Stop and    | If the        | Designated     | SMB-16   |
| 2.      | Resolve     | accounting    | personnel      |          |
| 2.1.1.4 | Issues      | c             | resolve        | SMC-09   |
|         |             | lassification | applicable     |          |
|         |             | elements are  | issues in      |          |
|         |             | not valid,    | accordance     |          |
|         |             | B             | with           |          |
|         |             | udget/Finance | applicable     |          |
|         |             | will resolve  | rules,         |          |
|         |             | the issue.    | regulations,   |          |
|         |             |               | and agency     |          |
|         |             |               | guidelines.    |          |
+---------+-------------+---------------+----------------+----------+
| FM      | Amount or   | Determine if  | Agencies are   |          |
| 2.      | D           | the amount or | required to    |          |
| 2.1.1.5 | istribution | distribution  | control funds  |          |
|         | less than   | is less than  | at a detail    |          |
|         | or equal to | or equal to   | level (line 8  |          |
|         | the         | the           | on SF 132).    |          |
|         | App         | A             |                |          |
|         | ortionment? | pportionment. |                |          |
|         |             | This is the   |                |          |
|         |             | A             |                |          |
|         |             | ntideficiency |                |          |
|         |             | check.        |                |          |
+---------+-------------+---------------+----------------+----------+
| FM      | Certify     | After the     | This step      | SMC-09   |
| 2.      | Entry       | allotment(s)  | ensures a      |          |
| 2.1.1.6 |             | are entered   | separation of  | TLE-01   |
|         |             | into the      | duties for     |          |
|         |             | system, it    | review and     | TLE-02   |
|         |             | has to be     | approval of    |          |
|         |             | approved by   | transaction    | TLE-03   |
|         |             | appropriate   | prior to       |          |
|         |             | personnel.    | posting to the | TLE-04   |
|         |             |               | General        |          |
|         |             |               | Ledger.        | TLE-06   |
|         |             |               |                |          |
|         |             |               |                | TLE-07   |
|         |             |               |                |          |
|         |             |               |                | TLE-08   |
+---------+-------------+---------------+----------------+----------+
| FM      | Record in   | After the     | After the      | GLB-01   |
| 2.      | General     | budgetary     | entry passes   |          |
| 2.1.1.7 | Ledger      | resource is   | validation     | GLC-05   |
|         |             | entered into  | edits, the     |          |
|         |             | the system    | applicable     | GLC-07   |
|         |             | and approved  | entry is       |          |
|         |             | by            | recorded.      |          |
|         |             | appropriate   |                |          |
|         |             | personnel,    | Examples       |          |
|         |             | the           | include, but   |          |
|         |             | transaction   | are not        |          |
|         |             | is recorded   | limited to,    |          |
|         |             | in the        | the following  |          |
|         |             | General       | transaction    |          |
|         |             | Ledger.       | codes from the |          |
|         |             |               | current TFM:   |          |
|         |             |               |                |          |
|         |             |               | TFM-A116 To    |          |
|         |             |               | record         |          |
|         |             |               | budgetary      |          |
|         |             |               | authority      |          |
|         |             |               | apportioned by |          |
|         |             |               | OMB and        |          |
|         |             |               | available for  |          |
|         |             |               | allotment.     |          |
|         |             |               |                |          |
|         |             |               | TFM-A118 To    |          |
|         |             |               | record         |          |
|         |             |               | anticipated    |          |
|         |             |               | resources      |          |
|         |             |               | apportioned    |          |
|         |             |               | but not        |          |
|         |             |               | available for  |          |
|         |             |               | use until they |          |
|         |             |               | are realized   |          |
|         |             |               | for            |          |
|         |             |               | anticipated    |          |
|         |             |               | resources in   |          |
|         |             |               | programs       |          |
|         |             |               | subject to     |          |
|         |             |               | apportionment. |          |
+---------+-------------+---------------+----------------+----------+

##  2.2.1.2 **Allotment for Anticipated Reimbursable Funding**

The recording of reimbursable resources is prescribed in both OMB
Circular A-11 and the USSGL portion of the Treasury Financial Manual.
Specifically, obligations cannot be incurred if reimbursable work is
performed on behalf of a non-federal customer until an advance is
received or working capital is provided by law. An anticipated
reimbursable is recognized by the performing agency (seller) when a
future order from a buying agency is reasonably expected. The basis of
an anticipated reimbursable is the seller's reasonable expectation
rather than the existence of a valid order at the time the buyer's
expectation is realized.

After a valid order is received from the Federal buying agency
(customer), the performing agency (seller) may incur obligations against
the order if the order is valid---i.e., the performing agency receives a
signed agreement from the Federal ordering agency and the Federal
ordering agency has recorded an obligation in the amount of the order
against its budgetary resources in the form of an undelivered order in
the ordering agency\'s account.

The Allotment for Anticipated Reimbursable Funding process flow and
corresponding step descriptions and business rules incorporate best
business practices in order to verify and validate the following:

-   Allotments for reimbursable activity should not be made unless
    appropriate obligation authority has been received, i.e., an
    accepted order or agreement from the Federal customer(s); and

-   Total reimbursable allotments, in accounting terms, should not be
    greater than the total of unfilled customer orders recorded during
    the fiscal year to date (e.g., debits in USSGL accounts 4221 --
    Unfilled Customer Orders without Advance, 4222 -- Unfilled Customer
    Orders with Advance, 4251 -- Reimbursements and Other Income Earned
    -- Receivable, and Reimbursements and Other Income Earned -
    Collected).

An Allotment Advice or Advice of Allotment document is the vehicle for
informing the Program offices and/or other internal administrative
organization structure of available funding.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.2.1.2 -- Allotment for Anticipated Reimbursable Funding Flowchart {#fm-2.2.1.2-allotment-for-anticipated-reimbursable-funding-flowchart .unnumbered}

## ![](media/image5.wmf){width="6.490277777777778in" height="4.569444444444445in"} {#section-3 .unnumbered}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Allotment for Anticipated Reimbursable process steps are described
as follows:

+---------+-------------+----------------+-----------------+-----------+
| Step ID | Step Name   | Step           | Business Rules  | CFSR Req. |
|         |             | Description    |                 |           |
+=========+=============+================+=================+===========+
| FM      | Enter       | Enter control  | Enter control   | SMB-25    |
|         | Control     | total for      | total, then     |           |
| 2.      | (Allotment) | Allotment      | distribute as   |           |
| 2.1.2.1 | Total       | Advice.        | necessary.      |           |
|         | (Category A |                |                 |           |
|         | or B)       | The control    |                 |           |
|         |             | total is often |                 |           |
|         |             | at the header  |                 |           |
|         |             | level of the   |                 |           |
|         |             | record and is  |                 |           |
|         |             | established to |                 |           |
|         |             | validate the   |                 |           |
|         |             | line level     |                 |           |
|         |             | entries.       |                 |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Allotment   | Determine if   | For anticipated | FMC-10    |
|         | less than   | the allotment  | reimbursable    |           |
| 2.      | or equal to | is less than   | amounts, an     | FMC-12    |
| 2.1.2.2 | the balance | or equal to    | agency cannot   |           |
|         | of unfilled | the balance of | obligate        | SMB-11    |
|         | customer    | the unfilled   | greater than    |           |
|         | order?      | customer       | the balance of  | SMB-12    |
|         |             | order.         | the accepted or |           |
|         |             |                | unfilled        | SMB-13    |
|         |             |                | customer        |           |
|         |             |                | orders.         | SMC-09    |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Record      | Record the     |                 | FMD-01    |
|         | Allotment   | Allotment      |                 |           |
| 2.      | D           | distribution   |                 |           |
| 2.1.2.3 | istribution | per the advice |                 |           |
|         |             | document.      |                 |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Cannot      | If the         | Designated      | FMD-05    |
|         | Allot.      | allotment is   | personnel       |           |
| 2.      |             | greater than   | resolve         | SMB-16    |
| 2.1.2.4 | Stop and    | the balance of | applicable      |           |
|         | Resolve     | the unfilled   | funding issues  | SMC-09    |
|         |             | customer       | in accordance   |           |
|         |             | order,         | with applicable |           |
|         |             | Budget/Finance | rules,          |           |
|         |             | will resolve   | regulations,    |           |
|         |             | the funding    | and agency      |           |
|         |             | issue.         | guidelines      |           |
|         |             |                | (e.g., FAR,     |           |
|         |             |                | agency policies |           |
|         |             |                | and             |           |
|         |             |                | procedures).    |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Accounting  | Reference      | Verify          | CGAC      |
|         | cla         | appropriate    | combinations of |           |
| 2.      | ssification | accounting     | accounting      | C         |
| 2.1.2.5 | elements    | classification | classification  | ompliance |
|         | valid?      | elements.      | elements are    |           |
|         |             |                | valid and       | SMA-03    |
|         |             |                | active.         |           |
|         |             |                |                 | SMB-11    |
|         |             |                |                 |           |
|         |             |                |                 | SMB-12    |
|         |             |                |                 |           |
|         |             |                |                 | SMB-13    |
|         |             |                |                 |           |
|         |             |                |                 | SMB-30    |
|         |             |                |                 |           |
|         |             |                |                 | SMC-09    |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Stop and    | If the         | Designated      | SMA-05    |
|         | Resolve     | accounting     | personnel       |           |
| 2.      | Issues      | classification | resolve         | SMA-06    |
| 2.1.2.6 |             | elements are   | applicable      |           |
|         |             | not valid or   | issues in       | SMB-16    |
|         |             | active,        | accordance with |           |
|         |             | Budget/Finance | applicable      | SMC-09    |
|         |             | will resolve   | rules,          |           |
|         |             | the issue.     | regulations,    |           |
|         |             |                | and agency      |           |
|         |             | If the amount  | guidelines      |           |
|         |             | is greater     | (e.g., FAR      |           |
|         |             | than or equal  | agency policies |           |
|         |             | to the         | and             |           |
|         |             | apportionment, | procedures).    |           |
|         |             | Budget/Finance |                 |           |
|         |             | will resolve   | Allotment       |           |
|         |             | the issue.     | distribution    |           |
|         |             |                | cannot exceed   |           |
|         |             | If the         | the control     |           |
|         |             | allotment      | total.          |           |
|         |             | distribution   |                 |           |
|         |             | is greater     |                 |           |
|         |             | than the       |                 |           |
|         |             | control total  |                 |           |
|         |             | Budget/Finance |                 |           |
|         |             | will resolve   |                 |           |
|         |             | the issue.     |                 |           |
|         |             |                |                 |           |
|         |             | If the entry   |                 |           |
|         |             | is not ready   |                 |           |
|         |             | to be recorded |                 |           |
|         |             | in the General |                 |           |
|         |             | Ledger,        |                 |           |
|         |             | Budget/Finance |                 |           |
|         |             | will resolve   |                 |           |
|         |             | the issue.     |                 |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Amount or   | Determine if   | Ensure that the |           |
|         | D           | the amount or  | allotment does  |           |
| 2.      | istribution | distribution   | not exceed the  |           |
| 2.1.2.7 | less than   | is less than   | apportionment   |           |
|         | or equal to | or equal to    | as recorded in  |           |
|         | the         | the            | Step FM         |           |
|         | App         | Apportionment. | 2.1.1.4.        |           |
|         | ortionment? | This is the    |                 |           |
|         |             | Antideficiency |                 |           |
|         |             | check.         |                 |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Control     | Determine if   | Allotment       | SMB-25    |
|         | Total       | the allotment  | distribution    |           |
| 2.      | Correct?    | distribution   | cannot exceed   |           |
| 2.1.2.8 |             | is equal to    | the control     |           |
|         |             | the control    | total (e.g.,    |           |
|         |             | total. This is | all lines of    |           |
|         |             | the entry      | distribution    |           |
|         |             | approval step  | are added       |           |
|         |             | where the (1)  | together to     |           |
|         |             | accounting     | ensure they     |           |
|         |             | period is      | equal the       |           |
|         |             | checked to see | control total). |           |
|         |             | if it is open  |                 |           |
|         |             | or closed, (2) |                 |           |
|         |             | the accounting |                 |           |
|         |             | classification |                 |           |
|         |             | elements are   |                 |           |
|         |             | revalidated    |                 |           |
|         |             | and (3) the    |                 |           |
|         |             | control total  |                 |           |
|         |             | is checked.    |                 |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Certify     | After the      | This step       | TLE-01    |
|         | Entry       | budgetary      | ensures a       |           |
| 2.      |             | resource is    | separation of   | TLE-02    |
| 2.1.2.9 |             | entered into   | duties for      |           |
|         |             | the system, it | review and      | TLE-03    |
|         |             | has to be      | approval of     |           |
|         |             | approved by    | transaction     | TLE-04    |
|         |             | appropriate    | prior to        |           |
|         |             | personnel.     | recording in    | TLE-06    |
|         |             |                | the General     |           |
|         |             |                | Ledger.         | TLE-07    |
|         |             |                |                 |           |
|         |             |                |                 | TLE-08    |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Okay to     | Has the entry  | This step is to | SMC-09    |
|         | record in   | been reviewed  | verify that the |           |
| 2.2     | the General | and approved   | review and      |           |
| .1.2.10 | Ledger?     | by the         | approval of the |           |
|         |             | appropriate    | transaction     |           |
|         |             | personnel?     | prior to        |           |
|         |             |                | recording in    |           |
|         |             |                | the General     |           |
|         |             |                | Ledger has      |           |
|         |             |                | taken place.    |           |
+---------+-------------+----------------+-----------------+-----------+
| FM      | Record in   | After the      | The allotment   | GLB-01    |
|         | General     | budgetary      | entries are     |           |
| 2.2     | Ledger      | resource is    | recorded using  | GLC-05    |
| .1.2.11 |             | entered into   | the USSGL       |           |
|         |             | the system and | Account         | GLC-07    |
|         |             | approved by    | Transaction     |           |
|         |             | appropriate    | Listing         |           |
|         |             | personnel, the | provided in the |           |
|         |             | transaction is | current TFM.    |           |
|         |             | recorded in    |                 |           |
|         |             | the General    | Examples        |           |
|         |             | Ledger.        | include, but    |           |
|         |             |                | are not limited |           |
|         |             |                | to, the         |           |
|         |             |                | following       |           |
|         |             |                | transaction     |           |
|         |             |                | codes from the  |           |
|         |             |                | current TFM:    |           |
|         |             |                |                 |           |
|         |             |                | TFM-A120 To     |           |
|         |             |                | record the      |           |
|         |             |                | allotment of    |           |
|         |             |                | authority.      |           |
|         |             |                |                 |           |
|         |             |                | TFM-A122 To     |           |
|         |             |                | record the      |           |
|         |             |                | realization of  |           |
|         |             |                | previously      |           |
|         |             |                | anticipated and |           |
|         |             |                | apportioned     |           |
|         |             |                | authority for   |           |
|         |             |                | programs        |           |
|         |             |                | subject to      |           |
|         |             |                | apportionment.  |           |
+---------+-------------+----------------+-----------------+-----------+

##  2.2.1.3 **Allotment for Anticipated Non-Reimbursable Funding**

> The Allotment for Anticipated Non-Reimbursable Funding process
> addresses resources that are either 1) Anticipated Recoveries of Prior
> Year Obligations or 2) Spending authority from offsetting collections.
> Per Appendix H of OMB Circular A-11 and the USSGL Budgetary Accounting
> Guide, anticipated amounts are [not]{.underline} available for reuse
> until they are actually recovered.
>
> ***Anticipated Recoveries of Prior Year Obligations***
>
> Estimated amounts of anticipated recoveries, from either a Federal or
> non-federal source are recorded as an anticipated budgetary resource
> and apportioned on the SF 132. However, OMB Circular A-11 and the TFM
> prohibit any type of spending unless there are actual resources, i.e.,
> actual recoveries.
>
> In order to ensure proper internal controls and prevent Antideficiency
> Act violations, it is essential to verify and validate that the total
> amount of allotments from anticipated recoveries does not exceed the
> total of actual recoveries realized to date.
>
> ***Offsetting Collections***
>
> Offsetting collections are typically credited directly to expenditure
> accounts where they are generally available for obligation and outlay.
> However, OMB Circular A-11 and the TFM prohibit any type of spending
> unless there are actual resources or for offsetting collections --
> cash on hand.
>
> Anticipated collections, from either a Federal or non-federal source,
> are recorded as an anticipated budgetary resource and apportioned on
> the SF 132. Per OMB Circular A-11, this would be: (1) offsetting
> collections in a credit program or liquidating account, or (2)
> offsetting collections from (a) asset sales, (b) interest received on
> Federal securities, (c) compulsory collections for the public such as
> sales taxes, user charges, customs duties, license fees, (d)
> intergovernmental expenditure transfers with no benefit for the paying
> account, (e) donations, or (f) refunds.
>
> In order to ensure proper internal controls and prevent Antideficiency
> Act violations, it is essential to verify and validate that the total
> amount of allotments from anticipated recoveries does not exceed the
> total of actual recoveries realized to date (e.g., USSGL accounts 4260
> -- Actual Collections of Government-Type Fees and 4261 -- Actual
> Collections of Business Type Fees).
>
> An Allotment Advice or Advice of Allotment document is the vehicle for
> informing the Program offices and/or other internal administrative
> organization structure of available funding.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.2.1.3 -- Allotment for Anticipated Non-Reimbursable Funding Flowchart {#fm-2.2.1.3-allotment-for-anticipated-non-reimbursable-funding-flowchart .unnumbered}

![](media/image6.wmf){width="6.490277777777778in"
height="4.569444444444445in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Allotment for Anticipated Non-Reimbursable process steps are
described as follows:

+--------+--------------+----------------+-----------------+-----------+
| Step   | Step Name    | Step           | Business Rules  | CFSR Req. |
| ID     |              | Description    |                 |           |
+========+==============+================+=================+===========+
| FM     | Enter        | Verify         | If obligation   | SMB-25    |
|        | Control      | realization of | is classified   |           |
| 2.2    | (Allotment)  | anticipated    | as Direct then  |           |
| .1.3.1 | Total        | resources.     | this is         |           |
|        | (Category A  |                | allotment total |           |
|        | or B)        | Enter Control  | is for          |           |
|        |              | (Allotment)    | anticipated     |           |
|        |              | Total from the | collections or  |           |
|        |              | A              | recoveries.     |           |
|        |              | dministrative, |                 |           |
|        |              | Budget and/or  | Enter control   |           |
|        |              | Program        | total, then     |           |
|        |              | Office.        | distribute as   |           |
|        |              |                | necessary.      |           |
|        |              | The control    |                 |           |
|        |              | total is often |                 |           |
|        |              | at the header  |                 |           |
|        |              | level of the   |                 |           |
|        |              | record and is  |                 |           |
|        |              | established to |                 |           |
|        |              | validate the   |                 |           |
|        |              | line level     |                 |           |
|        |              | entries.       |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Actual       | Determine if   | If the resource | SMB-11    |
|        | Collections/ | the balance of | is anticipated, |           |
| 2.2    | Recoveries   | actual         | verify that     | SMB-12    |
| .1.3.2 | greater than | collecti       | actuals (either |           |
|        | or equal to  | ons/recoveries | recoveries or   | SMB-13    |
|        | the Control  | is greater     | collections)    |           |
|        | Total?       | than or equal  | have been       | SMC-09    |
|        |              | to the control | recorded for    |           |
|        |              | total.         | the fiscal      |           |
|        |              |                | year.           |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Enter        | If the         |                 | FMD-01    |
|        | Allotment    | anticipated    |                 |           |
| 2.2    | Distribution | balance is     |                 |           |
| .1.3.3 |              | less than the  |                 |           |
|        |              | actual balance |                 |           |
|        |              | of the         |                 |           |
|        |              | collection or  |                 |           |
|        |              | recovery, then |                 |           |
|        |              | record the     |                 |           |
|        |              | allotment.     |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Cannot       | If the         | Designated      | FMD-05    |
|        | Allot.       | anticipated    | personnel       |           |
| 2.2    |              | balance is     | resolve         | SMB-16    |
| .1.3.4 | Stop and     | greater than   | applicable      |           |
|        | Resolve      | the actual     | funding issues  | SMC-09    |
|        |              | balance of the | in accordance   |           |
|        |              | collection or  | with applicable |           |
|        |              | recovery,      | rules,          |           |
|        |              | Budget/Finance | regulations,    |           |
|        |              | will resolve   | and agency      |           |
|        |              | the funding    | guidelines.     |           |
|        |              | issue.         |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Accounting   | Reference      | Verify          | CGAC      |
|        | cl           | appropriate    | combinations of | C         |
| 2.2    | assification | accounting     | accounting      | ompliance |
| .1.3.5 | elements     | classification | classification  |           |
|        | valid?       | elements.      | elements are    | SMA-03    |
|        |              |                | valid or        |           |
|        |              |                | active.         | SMB-11    |
|        |              |                |                 |           |
|        |              |                |                 | SMB-12    |
|        |              |                |                 |           |
|        |              |                |                 | SMB-13    |
|        |              |                |                 |           |
|        |              |                |                 | SMB-30    |
|        |              |                |                 |           |
|        |              |                |                 | SMC-09    |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Stop and     | If the         | Designated      | SMA-05    |
|        | Resolve      | accounting     | personnel       |           |
| 2.2    | Issues       | classification | resolve         | SMA-06    |
| .1.3.6 |              | elements are   | applicable      |           |
|        |              | not valid or   | funding issues  | SMB-16    |
|        |              | active,        | in accordance   |           |
|        |              | Budget/Finance | with applicable | SMC-09    |
|        |              | will resolve   | rules,          |           |
|        |              | the issue.     | regulations,    |           |
|        |              |                | and agency      |           |
|        |              | If the amount  | guidelines      |           |
|        |              | is greater     | (e.g., FAR,     |           |
|        |              | than or equal  | agency policies |           |
|        |              | to the         | and             |           |
|        |              | apportionment, | procedures).    |           |
|        |              | Budget/Finance |                 |           |
|        |              | will resolve   |                 |           |
|        |              | the issue.     |                 |           |
|        |              |                |                 |           |
|        |              | If the         |                 |           |
|        |              | allotment      |                 |           |
|        |              | distribution   |                 |           |
|        |              | is greater     |                 |           |
|        |              | than the       |                 |           |
|        |              | control total  |                 |           |
|        |              | Budget/Finance |                 |           |
|        |              | will resolve   |                 |           |
|        |              | the issue.     |                 |           |
|        |              |                |                 |           |
|        |              | If the entry   |                 |           |
|        |              | is not ready   |                 |           |
|        |              | to be recorded |                 |           |
|        |              | in the General |                 |           |
|        |              | Ledger,        |                 |           |
|        |              | Budget/Finance |                 |           |
|        |              | will resolve   |                 |           |
|        |              | the issue.     |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Amount or    | Determine if   | Ensure that the |           |
|        | Distribution | the amount or  | allotment does  |           |
| 2.2    | less than or | distribution   | not exceed the  |           |
| .1.3.7 | equal to the | is less than   | apportionment   |           |
|        | Ap           | or equal to    | as recorded in  |           |
|        | portionment? | the            | step FM         |           |
|        |              | apportionment. | 2.1.1.4.        |           |
|        |              |                |                 |           |
|        |              | This is the    |                 |           |
|        |              | Antideficiency |                 |           |
|        |              | check.         |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Control      | Determine if   | Allotment       | SMB-25    |
|        | Total        | the allotment  | distribution    |           |
| 2.2    | Correct?     | distribution   | cannot exceed   |           |
| .1.3.8 |              | is equal to    | the control     |           |
|        |              | the control    | total (e.g.,    |           |
|        |              | total. This is | all lines of    |           |
|        |              | the entry      | distribution    |           |
|        |              | approval step  | are added       |           |
|        |              | where the (1)  | together to     |           |
|        |              | accounting     | ensure they     |           |
|        |              | period is      | equal the       |           |
|        |              | checked to see | control total). |           |
|        |              | if it is open  |                 |           |
|        |              | or closed, (2) |                 |           |
|        |              | the accounting |                 |           |
|        |              | classification |                 |           |
|        |              | elements are   |                 |           |
|        |              | revalidated,   |                 |           |
|        |              | and (3) the    |                 |           |
|        |              | control total  |                 |           |
|        |              | is checked.    |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Certify      | After the      | This step       | TLE-01    |
|        | Entry        | budgetary      | ensures a       |           |
| 2.2    |              | resource is    | separation of   | TLE-02    |
| .1.3.9 |              | entered into   | duties for      |           |
|        |              | the system,    | review and      | TLE-03    |
|        |              | the            | approval of     |           |
|        |              | transaction    | transaction     | TLE-04    |
|        |              | has to be      | prior to        |           |
|        |              | approved by    | posting to the  | TLE-06    |
|        |              | appropriate    | General Ledger. |           |
|        |              | personnel.     |                 | TLE-07    |
|        |              |                |                 |           |
|        |              |                |                 | TLE-08    |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Okay to      | Has the entry  | This step is to | SMC-09    |
|        | record in    | been reviewed  | verify that the |           |
| 2.2.   | the General  | and approved   | review and      |           |
| 1.3.10 | Ledger?      | by the         | approval of the |           |
|        |              | appropriate    | transaction     |           |
|        |              | personnel?     | prior to        |           |
|        |              |                | recording in    |           |
|        |              |                | the General     |           |
|        |              |                | Ledger has      |           |
|        |              |                | taken place.    |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Record in    | After the      | After the entry | GLB-01    |
|        | General      | budgetary      | passes          |           |
| 2.2.   | Ledger       | resource is    | validation      | GLC-05    |
| 1.3.11 |              | entered into   | edits, the      |           |
|        |              | the system and | applicable      | GLC-07    |
|        |              | approved by    | entry is        |           |
|        |              | appropriate    | recorded.       |           |
|        |              | personnel, the |                 |           |
|        |              | transaction is | Examples        |           |
|        |              | recorded in    | include, but    |           |
|        |              | the General    | are not limited |           |
|        |              | Ledger.        | to, the         |           |
|        |              |                | following       |           |
|        |              |                | transaction     |           |
|        |              |                | codes from the  |           |
|        |              |                | current TFM:    |           |
|        |              |                |                 |           |
|        |              |                | TFM-A116 To     |           |
|        |              |                | record          |           |
|        |              |                | budgetary       |           |
|        |              |                | authority       |           |
|        |              |                | apportioned by  |           |
|        |              |                | OMB and         |           |
|        |              |                | available for   |           |
|        |              |                | allotment.      |           |
|        |              |                |                 |           |
|        |              |                | TFM-A118 To     |           |
|        |              |                | record          |           |
|        |              |                | anticipated     |           |
|        |              |                | resources       |           |
|        |              |                | apportioned but |           |
|        |              |                | not available   |           |
|        |              |                | for use until   |           |
|        |              |                | they are        |           |
|        |              |                | realized for    |           |
|        |              |                | anticipated     |           |
|        |              |                | resources in    |           |
|        |              |                | programs        |           |
|        |              |                | subject to      |           |
|        |              |                | apportionment.  |           |
+--------+--------------+----------------+-----------------+-----------+

## 2.2.2 **Sub-Allotment Distribution**

Recording sub-allotted resources is prescribed in both OMB Circular A-11
and the USSGL portion of the Treasury Financial Manual as a further
agency sub-division of funds and is an [optional]{.underline} step based
upon agency business practices. Specifically, obligations or
expenditures cannot be incurred until an allotment or sub-allotment is
made by the agency. An Allotment Advice or Advice of Allotment document
is the vehicle for informing the Program offices and/or other internal
administrative organization structure of available funding.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.2.2-- Sub-Allotment Distribution Flowchart {#fm-2.2.2-sub-allotment-distribution-flowchart .unnumbered}

![](media/image7.wmf){width="6.490277777777778in"
height="4.569444444444445in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Sub-Allotment process steps are described as follows:

+--------+--------------+----------------+----------------+-----------+
| Step   | Step Name    | Step           | Business Rules | CFSR Req. |
| ID     |              | Description    |                |           |
+========+==============+================+================+===========+
| FM     | Enter        | Enter control  | Establish      | SMB-25    |
| 2      | Control      | (              | amount of      |           |
| .2.2.1 | (Su          | Sub-Allotment) | sub-allotment  |           |
|        | b-Allotment) | total from the | appending a    |           |
|        | Total and    | A              | unique         |           |
|        | Allotment    | dministrative, | sub-allotment  |           |
|        | Advice       | Budget and /or | identifier to  |           |
|        |              | Program        | an allotment   |           |
|        |              | Office.        | advice.        |           |
|        |              |                |                |           |
|        |              | The control    | Total of all   |           |
|        |              | total is often | distribution   |           |
|        |              | at the header  | on this        |           |
|        |              | level of the   | sub-allotment  |           |
|        |              | record and is  | must not       |           |
|        |              | established to | exceed control |           |
|        |              | validate the   | total.         |           |
|        |              | line level     |                |           |
|        |              | entries.       | Overall        |           |
|        |              |                | sub-allotments |           |
|        |              |                | cannot exceed  |           |
|        |              |                | allotment.     |           |
+--------+--------------+----------------+----------------+-----------+
| FM     | Enter        | Official       | Based upon     | FMD-01    |
| 2      | S            | requests       | allotment      |           |
| .2.2.2 | ub-Allotment | (i.e.,         | pools from     | FMD-03    |
|        | Distribution | appropriate    | referenced     |           |
|        |              | allotment      | allotment      |           |
|        |              | advice) create | advice (i.e.,  |           |
|        |              | sub-allotment. | second level   |           |
|        |              |                | of the         |           |
|        |              | Enter          | organization)  |           |
|        |              | sub-allotment  |                |           |
|        |              | amounts for    |                |           |
|        |              | categories to  |                |           |
|        |              | be control.    |                |           |
+--------+--------------+----------------+----------------+-----------+
| FM     | Accounting   | Reference      | Verify         | CGAC      |
| 2      | cl           | appropriate    | combinations   |           |
| .2.2.3 | assification | accounting     | of accounting  | C         |
|        | elements     | classification | classification | ompliance |
|        | valid?       | elements.      | elements are   |           |
|        |              |                | valid and      | SMA-03    |
|        |              |                | active.        |           |
|        |              |                |                | SMB-11    |
|        |              |                |                |           |
|        |              |                |                | SMB-12    |
|        |              |                |                |           |
|        |              |                |                | SMB-13    |
|        |              |                |                |           |
|        |              |                |                | SMB-30    |
|        |              |                |                |           |
|        |              |                |                | SMC-09    |
+--------+--------------+----------------+----------------+-----------+
| FM     | Stop and     | If the         | Designated     | SMA-05    |
| 2      | Resolve      | accounting     | personnel      |           |
| .2.2.4 | Issues       | classification | resolve        | SMA-06    |
|        |              | elements not   | applicable     |           |
|        |              | valid,         | funding issues | FMD-05    |
|        |              | Budget/Finance | in accordance  |           |
|        |              | must resolve   | with           | SMB-16    |
|        |              | the issue.     | applicable     |           |
|        |              |                | rules,         | SMC-09    |
|        |              | If the amount  | regulations,   |           |
|        |              | is greater     | and agency     |           |
|        |              | than or equal  | guidelines     |           |
|        |              | to the         | (e.g., FAR,    |           |
|        |              | Allotment,     | agency         |           |
|        |              | Budget/Finance | policies and   |           |
|        |              | must resolve   | procedures)    |           |
|        |              | the issue.     |                |           |
|        |              |                |                |           |
|        |              | If the         |                |           |
|        |              | Allotment      |                |           |
|        |              |                |                |           |
|        |              | distribution   |                |           |
|        |              | does not equal |                |           |
|        |              | the control    |                |           |
|        |              | total,         |                |           |
|        |              | Budget/Finance |                |           |
|        |              | must resolve   |                |           |
|        |              | the issue.     |                |           |
|        |              |                |                |           |
|        |              | Determined     |                |           |
|        |              | that the entry |                |           |
|        |              | is not ready   |                |           |
|        |              | to be recorded |                |           |
|        |              | in the General |                |           |
|        |              | Ledger.        |                |           |
+--------+--------------+----------------+----------------+-----------+
| FM     | S            | Determine if   | Ensure that    |           |
| 2      | ub-Allotment | the            | this           |           |
| .2.2.5 | less than or | sub-allotment  | sub-allotment  |           |
|        | equal to the | is less than   | and other      |           |
|        | Allotment?   | or equal to    | sub-allotments |           |
|        |              | the referenced | do not exceed  |           |
|        |              | allotment      | the allotment. |           |
|        |              | advice. This   |                |           |
|        |              | is the         |                |           |
|        |              | Antideficiency |                |           |
|        |              | check.         |                |           |
+--------+--------------+----------------+----------------+-----------+
| FM     | Control      | Determine if   | Allotment      | SMB-25    |
| 2      | Total        | the allotment  | distribution   |           |
| .2.2.6 | Correct?     | distribution   | cannot exceed  |           |
|        |              | is equal to    | the control    |           |
|        |              | the control    | total (e.g.,   |           |
|        |              | total. This is | all lines of   |           |
|        |              | the entry      | distribution   |           |
|        |              | approval step  | are added      |           |
|        |              | where the (1)  | together to    |           |
|        |              | accounting     | ensure they    |           |
|        |              | period is      | equal the      |           |
|        |              | checked to see | control        |           |
|        |              | if it is open  | total).        |           |
|        |              | or closed, (2) |                |           |
|        |              | the accounting |                |           |
|        |              | classification |                |           |
|        |              | elements are   |                |           |
|        |              | revalidated,   |                |           |
|        |              | and (3) the    |                |           |
|        |              | control total  |                |           |
|        |              | is checked.    |                |           |
+--------+--------------+----------------+----------------+-----------+
| FM     | Certify      | After the      | This step      | TLE-01    |
| 2      | Entry        | su             | ensures a      |           |
| .2.2.7 |              | b-allotment(s) | separation of  | TLE-02    |
|        |              | are entered    | duties for     |           |
|        |              | into the       | review and     | TLE-03    |
|        |              | system, the    | approval of    |           |
|        |              | transaction    | transaction    | TLE-04    |
|        |              | must be        | prior to       |           |
|        |              | approved by    | recording in   | TLE-06    |
|        |              | appropriate    | the General    |           |
|        |              | personnel.     | Ledger.        | TLE-07    |
|        |              |                |                |           |
|        |              |                |                | TLE-08    |
+--------+--------------+----------------+----------------+-----------+
| FM     | Okay to      | Determine if   | This step is   | SMC-09    |
| 2      | record in    | the entry has  | to verify that |           |
| .2.2.8 | the General  | been reviewed  | the review and |           |
|        | Ledger?      | and approved   | approval of    |           |
|        |              | by the         | the            |           |
|        |              | appropriate    | transaction    |           |
|        |              | personnel.     | prior to       |           |
|        |              |                | recording in   |           |
|        |              |                | the General    |           |
|        |              |                | Ledger has     |           |
|        |              |                | taken place.   |           |
+--------+--------------+----------------+----------------+-----------+
| FM     | Record in    | After the      | After the      | GLB-01    |
| 2      | General      | su             | entry passes   |           |
| .2.2.9 | Ledger       | b-allotment(s) | validation     | GLC-05    |
|        |              | are certified, | edits, the     |           |
|        |              | the            | applicable     | GLC-07    |
|        |              | transaction is | entry is       |           |
|        |              | recorded in    | recorded.      |           |
|        |              | the General    |                |           |
|        |              | Ledger.        | Examples       |           |
|        |              |                | include, but   |           |
|        |              |                | are not        |           |
|        |              |                | limited to,    |           |
|        |              |                | the following  |           |
|        |              |                | transaction    |           |
|        |              |                | codes from the |           |
|        |              |                | current TFM:   |           |
|        |              |                |                |           |
|        |              |                | TFM-A116 To    |           |
|        |              |                | record         |           |
|        |              |                | budgetary      |           |
|        |              |                | authority      |           |
|        |              |                | apportioned by |           |
|        |              |                | OMB and        |           |
|        |              |                | available for  |           |
|        |              |                | allotment.     |           |
|        |              |                |                |           |
|        |              |                | TFM-A118 To    |           |
|        |              |                | record         |           |
|        |              |                | anticipated    |           |
|        |              |                | resources      |           |
|        |              |                | apportioned    |           |
|        |              |                | but not        |           |
|        |              |                | available for  |           |
|        |              |                | use until they |           |
|        |              |                | are realized   |           |
|        |              |                | for            |           |
|        |              |                | anticipated    |           |
|        |              |                | resources in   |           |
|        |              |                | programs       |           |
|        |              |                | subject to     |           |
|        |              |                | apportionment. |           |
|        |              |                |                |           |
|        |              |                | Based on       |           |
|        |              |                | system         |           |
|        |              |                | configuration, |           |
|        |              |                | the            |           |
|        |              |                | sub-allotment  |           |
|        |              |                | can be used    |           |
|        |              |                | for Funds      |           |
|        |              |                | Control.       |           |
|        |              |                |                |           |
|        |              |                | ***Note:***    |           |
|        |              |                | This entry     |           |
|        |              |                | would be a     |           |
|        |              |                | re             |           |
|        |              |                | classification |           |
|        |              |                | of a higher    |           |
|        |              |                | level          |           |
|        |              |                | accounting     |           |
|        |              |                | classification |           |
|        |              |                | line to a      |           |
|        |              |                | lower level    |           |
|        |              |                | accounting     |           |
|        |              |                | classification |           |
|        |              |                | line in USSGL  |           |
|        |              |                | account 4610   |           |
|        |              |                | -- Allotments  |           |
|        |              |                | -- Realized    |           |
|        |              |                | Resources. .   |           |
+--------+--------------+----------------+----------------+-----------+

##  2.2.3 **Lower Level Distribution**

The use of Lower Level Distribution processes allows agencies to
maintain tighter administrative controls over obligations as prescribed
by the Antideficiency Act. These lower levels of budgetary distribution,
which are referred to as allocations, sub-allocations, allowances,
sub-allowances, and spending/operating plans, are often based on
program, projects, or organization/office. The recording of lower level
distributions of resources is prescribed in an agency's policies and
regulations for Funds Control.

**Note:** "Certify" as used in this process is defined as "review and
approve".

## FM 2.2.3 -- Lower Level Distribution Flowchart {#fm-2.2.3-lower-level-distribution-flowchart .unnumbered}

![](media/image8.wmf){width="6.490277777777778in"
height="4.569444444444445in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Lower Level Distribution process steps are described as follows:

+--------+--------------+----------------+-----------------+-----------+
| Step   | Step Name    | Step           | Business Rules  | CFSR Req. |
| ID     |              | Description    |                 |           |
+========+==============+================+=================+===========+
| FM     | Record       | Enter control  | Enter control   | FMD-01    |
| 2      | Control      | total from the | total, then     |           |
| .2.3.1 | Total        | A              | distribute to   | SMB-25    |
|        |              | dministrative, | lower levels as |           |
|        |              | Budget and/or  | necessary.      |           |
|        |              | Program        |                 |           |
|        |              | Office. This   |                 |           |
|        |              | process should |                 |           |
|        |              | start with the |                 |           |
|        |              | allotment      |                 |           |
|        |              | posting        |                 |           |
|        |              | entries.       |                 |           |
|        |              |                |                 |           |
|        |              | The control    |                 |           |
|        |              | total is often |                 |           |
|        |              | at the header  |                 |           |
|        |              | level of the   |                 |           |
|        |              | record and is  |                 |           |
|        |              | established to |                 |           |
|        |              | validate the   |                 |           |
|        |              | line level     |                 |           |
|        |              | entries.       |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Record Lower | Official       | The amount      | FMD-01    |
| 2      | Level        | requests       | recorded is     |           |
| .2.3.2 | Distribution | (i.e.,         | based upon      | FMD-03    |
|        |              | appropriate    | allotment pools |           |
|        |              | advice) create | from referenced |           |
|        |              | a lower level  | lower level     |           |
|        |              | distribution.  | distribution    |           |
|        |              |                | advice (i.e.,   |           |
|        |              |                | second level of |           |
|        |              |                | organization).  |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Accounting   | Reference      | Verify          | CGAC      |
| 2      | cl           | appropriate    | combinations of |           |
| .2.3.3 | assification | accounting     | accounting      | C         |
|        | elements     | classification | classification  | ompliance |
|        | valid?       | elements.      | elements are    |           |
|        |              |                | valid and       | SMA-03    |
|        |              |                | active.         |           |
|        |              |                |                 | SMB-11    |
|        |              |                |                 |           |
|        |              |                |                 | SMB-12    |
|        |              |                |                 |           |
|        |              |                |                 | SMB-13    |
|        |              |                |                 |           |
|        |              |                |                 | SMB-30    |
|        |              |                |                 |           |
|        |              |                |                 | SMC-09    |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Stop and     | If the         | Designated      | SMA-05    |
| 2      | Resolve      | accounting     | personnel       |           |
| .2.3.4 | Issues       | classification | resolve         | SMA-06    |
|        |              | elements are   | applicable      |           |
|        |              | not valid, the | issues in       | FMD-05    |
|        |              | Business Unit  | accordance with |           |
|        |              | must resolve   | applicable      | SMB-16    |
|        |              | the issue.     | rules,          |           |
|        |              |                | regulations,    | SMC-09    |
|        |              | If the amount  | and agency      |           |
|        |              | is greater     | guidelines      |           |
|        |              | than or equal  | (e.g., FAR,     |           |
|        |              | to the         | agency policies |           |
|        |              | Sub-Allotment, | and             |           |
|        |              | Budget/Finance | procedures).    |           |
|        |              | must resolve   |                 |           |
|        |              | the issue.     |                 |           |
|        |              |                |                 |           |
|        |              | If allotment   |                 |           |
|        |              |                |                 |           |
|        |              | distribution   |                 |           |
|        |              | does not equal |                 |           |
|        |              | the control    |                 |           |
|        |              | total,         |                 |           |
|        |              | Budget/Finance |                 |           |
|        |              | must resolve   |                 |           |
|        |              | the issue.     |                 |           |
|        |              |                |                 |           |
|        |              | If it is       |                 |           |
|        |              | determined     |                 |           |
|        |              | that the entry |                 |           |
|        |              | is not ready   |                 |           |
|        |              | to be recorded |                 |           |
|        |              | in the General |                 |           |
|        |              | Ledger,        |                 |           |
|        |              | Budget/Finance |                 |           |
|        |              | must resolve   |                 |           |
|        |              | the issue.     |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Lower Level  | Determine if   | Ensure that     |           |
| 2      | Distribution | the lower      | this lower      |           |
| .2.3.5 | less than or | level          | level           |           |
|        | equal to the | distribution   | distribution    |           |
|        | Su           | amount is less | and other       |           |
|        | b-Allotment? | than or equal  | allowances do   |           |
|        |              | to the         | not exceed      |           |
|        |              | sub-allotment. | sub-allotment.  |           |
|        |              |                |                 |           |
|        |              | This is the    |                 |           |
|        |              | Antideficiency |                 |           |
|        |              | check.         |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Control      | Determine if   | Lower level     | SMB-25    |
| 2      | Total        | the lower      | distribution    |           |
| .2.3.6 | Correct?     | level          | cannot exceed   |           |
|        |              | distribution   | the control     |           |
|        |              | is equal to    | total (e.g.,    |           |
|        |              | the control    | all lines of    |           |
|        |              | total. This is | distribution    |           |
|        |              | the entry      | are added       |           |
|        |              | approval step  | together to     |           |
|        |              | where the (1)  | ensure they     |           |
|        |              | accounting     | equal the       |           |
|        |              | period is      | control total). |           |
|        |              | checked to see |                 |           |
|        |              | if it is open  |                 |           |
|        |              | or closed, (2) |                 |           |
|        |              | the accounting |                 |           |
|        |              | classification |                 |           |
|        |              | elements are   |                 |           |
|        |              | revalidated,   |                 |           |
|        |              | and (3) the    |                 |           |
|        |              | control total  |                 |           |
|        |              | is checked.    |                 |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Certify      | After the      | This step       | TLE-01    |
| 2      | Entry        | lower level    | ensures a       |           |
| .2.3.7 |              | d              | separation of   | TLE-02    |
|        |              | istribution(s) | duties for      |           |
|        |              | are entered    | review and      | TLE-03    |
|        |              | into the       | approval of     |           |
|        |              | system, it has | transactions    | TLE-04    |
|        |              | to be approved | prior to        |           |
|        |              | by appropriate | recording in    | TLE-06    |
|        |              | personnel.     | the General     |           |
|        |              |                | Ledger.         | TLE-07    |
|        |              |                |                 |           |
|        |              |                |                 | TLE-08    |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Okay to      | Determine if   | This step is to | SMC-09    |
| 2      | record in    | the entry has  | verify that the |           |
| .2.3.8 | the General  | been reviewed  | review and      |           |
|        | Ledger?      | and approved   | approval of the |           |
|        |              | by the         | transaction     |           |
|        |              | appropriate    | prior to        |           |
|        |              | personnel.     | recording in    |           |
|        |              |                | the General     |           |
|        |              |                | Ledger has      |           |
|        |              |                | taken place.    |           |
+--------+--------------+----------------+-----------------+-----------+
| FM     | Record in    | After the      | After the entry | GLB-01    |
| 2      | General      | lower level    | passes          |           |
| .2.3.9 | Ledger       | d              | validation      | GLC-05    |
|        |              | istribution(s) | edits, the      |           |
|        |              | are certified, | applicable      | GLC-07    |
|        |              | the            | entry is        |           |
|        |              | transaction is | recorded.       |           |
|        |              | recorded in    |                 |           |
|        |              | the General    | Examples        |           |
|        |              | Ledger.        | include, but    |           |
|        |              |                | are not limited |           |
|        |              |                | to, the         |           |
|        |              |                | following       |           |
|        |              |                | transaction     |           |
|        |              |                | codes from the  |           |
|        |              |                | current TFM:    |           |
|        |              |                |                 |           |
|        |              |                | TFM-A116 To     |           |
|        |              |                | record          |           |
|        |              |                | budgetary       |           |
|        |              |                | authority       |           |
|        |              |                | apportioned by  |           |
|        |              |                | OMB and         |           |
|        |              |                | available for   |           |
|        |              |                | allotment.      |           |
|        |              |                |                 |           |
|        |              |                | TFM-A118 To     |           |
|        |              |                | record          |           |
|        |              |                | anticipated     |           |
|        |              |                | resources       |           |
|        |              |                | apportioned but |           |
|        |              |                | not available   |           |
|        |              |                | for use until   |           |
|        |              |                | they are        |           |
|        |              |                | realized for    |           |
|        |              |                | anticipated     |           |
|        |              |                | resources in    |           |
|        |              |                | programs        |           |
|        |              |                | subject to      |           |
|        |              |                | apportionment.  |           |
|        |              |                |                 |           |
|        |              |                | Based on system |           |
|        |              |                | configuration,  |           |
|        |              |                | the             |           |
|        |              |                | sub-allotment   |           |
|        |              |                | can be used for |           |
|        |              |                | Funds           |           |
|        |              |                | Management.     |           |
+--------+--------------+----------------+-----------------+-----------+

##  2.3 **Funds Control Process**

The funds control process validates and verifies the availability of
funds for spending transactions, (e.g., commitments, obligations and
expenditures). The requisition document from the agency's acquisition
system will initiate creation of a commitment in the agency's financial
system. Although OMB Circular A-11 addresses the authority to incur
obligations and expenditures (the outlay of the obligation), a
commitment is an "administrative reservation of allotted funds in
anticipation of an obligation" and therefore does draw down on fund
balances, similar to obligations and expenditures. However, an agency is
responsible for keeping appropriate fund balances, as well as the
balances for commitments, obligations and expenditures, to ensure
accurate and timely verification and reporting of available funding.

OMB Circular A-11, Appendix H -- Checklist For Fund Control Regulations
stipulates that the following steps be addressed in an agency's policy
that states the regulations under which basic fund control principles
and concepts will be put into operation:

-   Establish a policy with regard to the administrative control of
    funds;

-   Prescribe a system for positive administrative control of funds
    designed to restrict obligations and expenditures (disbursements) to
    the amount available in each appropriation or fund account;

-   Restrict both obligations and expenditures from each appropriation
    or fund account to the lower of the amount of apportionments made by
    OMB or the amount available for obligation and/or expenditure in the
    appropriation or fund account;

-   Enable the head of your agency to identify the person responsible
    for any obligation or expenditure exceeding the amount available in
    the appropriation or fund account, the OMB apportionment or
    reapportionment, the allotment or sub-allotments made by the agency,
    any statutory limitations, and any other administrative subdivision
    of funds made by the agency; and

-   Provide procedures for dealing with violations of the Antideficiency
    Act as well as violations of other administrative subdivision of
    funds that are not violations of the Antideficiency Act. An agency
    is responsible for establishing a policy for administrative control
    of Funds.

Please see OMB Circular A-11, Appendix H -- Checklist for Fund Control
Regulations for additional guidance.

**Note:** In addition, the agency also must establish the level at which
funds management will be verified and validated, e.g., once allotments
and any lower level distributions of funding have been completed, the
active accounting classification elements at which available funding
will be checked must be established both as a part of the current year's
funding internal controls and in the Core Financial System to enable
proper editing.

## 

## 2.3.1 **Establishing Commitments and Obligations for Goods and Services**

The establishment of commitments and obligations for goods and services
result in outputs to the accounts payable and invoicing processes. The
requisition document from the agency's acquisition system will initiate
creation of a commitment in the agency's financial system. Vendor
maintenance that may be associated with requisitions, commitments, and
obligations is not within the scope of this chapter.

The steps contained in the flowchart below describe the procedures
necessary to prepare an obligation that has a prior commitment. Please
note that the "Verify Funding Available" step included in the flowchart
is the trigger point for the Funds Validation and Verification flows
(2.3.4 and 2.3.5).

## FM 2.3.1 -- Establishing Commitments and Obligations for Goods and Services Flowchart {#fm-2.3.1-establishing-commitments-and-obligations-for-goods-and-services-flowchart .unnumbered}

![](media/image9.wmf){width="6.490277777777778in"
height="5.2243055555555555in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Funds Management process steps Establish Commitments and Obligations
for goods and services are described as follows:

+--------+---------+---------------+-----------------------+---------+
| Step   | Step    | Step          | Business Rules        | CFSR    |
| ID     | Name    | Description   |                       | Req.    |
+========+=========+===============+=======================+=========+
| FM     | Prepare | Personnel     | Authorized personnel  | CGAC    |
| 2      |         | authorized by | who are designated as | Com     |
| .3.1.1 | Requ    | the Business  | requistioners should  | pliance |
|        | isition | Unit prepare  | be the only personnel |         |
|        |         | a requisition | assigned authority    | FME-19  |
|        |         | for purchase  | within the system to  |         |
|        |         | of goods or   | initiate a            |         |
|        |         | services to   | requisition.          |         |
|        |         | fulfill a     |                       |         |
|        |         | bona fide     | This designated       |         |
|        |         | need for      | requisition personnel |         |
|        |         | acquisition.  | enters required       |         |
|        |         |               | information on the    |         |
|        |         |               | requisition including |         |
|        |         |               | the following:        |         |
|        |         |               |                       |         |
|        |         |               | -   Suggested or      |         |
|        |         |               |     recommended       |         |
|        |         |               |     vendors, as       |         |
|        |         |               |     applicable (or a  |         |
|        |         |               |     justification for |         |
|        |         |               |     a specific        |         |
|        |         |               |     vendor)           |         |
|        |         |               |                       |         |
|        |         |               | -   When the goods or |         |
|        |         |               |     services are      |         |
|        |         |               |     needed            |         |
|        |         |               |                       |         |
|        |         |               | -   For services, the |         |
|        |         |               |     necessary period  |         |
|        |         |               |     of performance    |         |
|        |         |               |                       |         |
|        |         |               | -   An estimate of    |         |
|        |         |               |     the cost to       |         |
|        |         |               |     procure the goods |         |
|        |         |               |     or services       |         |
|        |         |               |                       |         |
|        |         |               | -   Appropriate       |         |
|        |         |               |     accounting        |         |
|        |         |               |     classification    |         |
|        |         |               |     elements          |         |
|        |         |               |                       |         |
|        |         |               | -   Point of contact  |         |
|        |         |               |     information for   |         |
|        |         |               |     the agency        |         |
|        |         |               |     official(s)       |         |
|        |         |               |     ordering and/or   |         |
|        |         |               |     receiving the     |         |
|        |         |               |     goods or services |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Aut     | The           | The requisition is    | TLE-03  |
| 2      | horized | requisition   | reviewed to ensure    |         |
| .3.1.2 |         | is reviewed   | the data entered      |         |
|        | Requ    | and validated | matches the           |         |
|        | isition | by a          | requisition           |         |
|        |         | designated    | supporting            |         |
|        |         | official.     | documentation.        |         |
|        |         |               |                       |         |
|        |         | The output is | This designated       |         |
|        |         | an authorized | requisition personnel |         |
|        |         | requisition.  | signs the form        |         |
|        |         |               | (preferably           |         |
|        |         |               | electronically) to    |         |
|        |         |               | authorize the         |         |
|        |         |               | request.              |         |
|        |         |               |                       |         |
|        |         |               | An agency may define  |         |
|        |         |               | certain types and/or  |         |
|        |         |               | amounts of            |         |
|        |         |               | acquisition requests  |         |
|        |         |               | (e.g., property,      |         |
|        |         |               | information           |         |
|        |         |               | technology), for      |         |
|        |         |               | which the requisition |         |
|        |         |               | must be authorized by |         |
|        |         |               | an additional person  |         |
|        |         |               | or persons with       |         |
|        |         |               | applicable            |         |
|        |         |               | supervisory or        |         |
|        |         |               | managerial authority. |         |
|        |         |               |                       |         |
|        |         |               | Personnel with the    |         |
|        |         |               | appropriate authority |         |
|        |         |               | must review the       |         |
|        |         |               | accounting            |         |
|        |         |               | classification        |         |
|        |         |               | elements, including   |         |
|        |         |               | the Treasury Account  |         |
|        |         |               | Symbol and Business   |         |
|        |         |               | Event Type Code       |         |
|        |         |               | (TAS-BETC).           |         |
|        |         |               |                       |         |
|        |         |               | Capital assets should |         |
|        |         |               | be identified during  |         |
|        |         |               | the requisition phase |         |
|        |         |               | of the Payment        |         |
|        |         |               | Management chapter.   |         |
|        |         |               |                       |         |
|        |         |               | A manager with        |         |
|        |         |               | funding authority     |         |
|        |         |               | reviews and           |         |
|        |         |               | electronically        |         |
|        |         |               | authorizes the        |         |
|        |         |               | commitment of funds   |         |
|        |         |               | for the requisition.  |         |
|        |         |               | This occurs as part   |         |
|        |         |               | of step FM 2.3.1.3,   |         |
|        |         |               | \"Verify Funding      |         |
|        |         |               | Available"            |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Verify  | The Core      | The system certifies  | FME-01  |
| 2      | Funding | Financial     | availability of       |         |
| .3.1.3 | Av      | System (Core  | required funding      | SMB-11  |
|        | ailable | Financial     | prior to committing   |         |
|        |         | System)       | budgetary resources.  | SMB-12  |
|        |         | checks        |                       |         |
|        |         | whether       |                       | SMB-13  |
|        |         | funding is    |                       |         |
|        |         | available to  |                       | SMC-09  |
|        |         | commit funds  |                       |         |
|        |         | from          |                       |         |
|        |         | applicable    |                       |         |
|        |         | budgetary     |                       |         |
|        |         | resources.    |                       |         |
|        |         | This process  |                       |         |
|        |         | is executed   |                       |         |
|        |         | by performing |                       |         |
|        |         | the           |                       |         |
|        |         | applicable    |                       |         |
|        |         | steps in FM   |                       |         |
|        |         | 2.3.4         |                       |         |
|        |         | (Unexpired    |                       |         |
|        |         | Funds         |                       |         |
|        |         | Validation    |                       |         |
|        |         | and           |                       |         |
|        |         | Verification) |                       |         |
|        |         | as referenced |                       |         |
|        |         | on the        |                       |         |
|        |         | flowchart.    |                       |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Com     | After the     | The entries are       | FME-02  |
| 2      | mitment | requisition   | recorded in the       |         |
| .3.1.4 | Records | is entered    | General Ledger using  | FME-03  |
|        | in      | into the      | the USSGL Account     |         |
|        | General | system and    | Transaction Listing   | FME-08  |
|        | Ledger  | approved by   | provided in the       |         |
|        |         | appropriate   | current TFM.          | FME-12  |
|        |         | personnel,    |                       |         |
|        |         | funds are     | Examples include, but | GLB-01  |
|        |         | checked and a | are not limited to,   |         |
|        |         | commitment    | the following         | GLC-01  |
|        |         | transaction   | transaction codes     |         |
|        |         | is recorded   | from the current TFM: | GLC-05  |
|        |         | in the        |                       |         |
|        |         | General       | TFM-B302 To record a  | GLC-06  |
|        |         | Ledger.       | commitment of         |         |
|        |         |               | unobligated amounts   |         |
|        |         |               | in programs subject   |         |
|        |         |               | to apportionment.     |         |
|        |         |               |                       |         |
|        |         |               | TFM-B304 To record a  |         |
|        |         |               | commitment of         |         |
|        |         |               | unobligated balances  |         |
|        |         |               | in programs exempt    |         |
|        |         |               | from apportionment.   |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Funded  | The funded    | Acquisition Office    | TLE-07  |
| 2      |         | requisition   | officials who have    |         |
| .3.1.5 | Requ    | is            | completed             |         |
|        | isition | automatically | standardized training |         |
|        |         | routed to the | programs are          |         |
|        |         | Acquisition   | certified to act as   |         |
|        |         | Office.       | purchasing agents on  |         |
|        |         |               | behalf of the agency  |         |
|        |         |               | and have been granted |         |
|        |         |               | access to the         |         |
|        |         |               | agency's Acquisition  |         |
|        |         |               | System.               |         |
|        |         |               |                       |         |
|        |         |               | These qualified       |         |
|        |         |               | Acquisition officials |         |
|        |         |               | may be referred to as |         |
|        |         |               | a Contracting         |         |
|        |         |               | Officer's Technical   |         |
|        |         |               | Representative (COTR) |         |
|        |         |               | or a Contracting      |         |
|        |         |               | Officer's             |         |
|        |         |               | Representative (COR). |         |
|        |         |               |                       |         |
|        |         |               | Upon receipt of a     |         |
|        |         |               | requisition, the      |         |
|        |         |               | Acquisition official  |         |
|        |         |               | reviews it to         |         |
|        |         |               | determine whether it  |         |
|        |         |               | has been              |         |
|        |         |               | appropriately         |         |
|        |         |               | completed and         |         |
|        |         |               | authorized.           |         |
|        |         |               |                       |         |
|        |         |               | If the Acquisition    |         |
|        |         |               | official notes errors |         |
|        |         |               | or omissions in the   |         |
|        |         |               | requisition, it is    |         |
|        |         |               | returned to the       |         |
|        |         |               | Business Unit to be   |         |
|        |         |               | corrected and         |         |
|        |         |               | resubmitted.          |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Perform | Once the      | Acquisition performs  |         |
| 2      | Acqu    | contractor    | the procurement       |         |
| .3.1.6 | isition | has been      | process in accordance |         |
|        | Process | chosen, an    | with applicable       |         |
|        |         | Acquisition   | regulations (e.g.,    |         |
|        |         | official      | FAR, agency           |         |
|        |         | prepares the  | guidelines).          |         |
|        |         | award         |                       |         |
|        |         | documents     | Federal               |         |
|        |         | (such as      | (intragovernmental)   |         |
|        |         | contracts,    | buy and sell          |         |
|        |         | purchase      | transactions will be  |         |
|        |         | orders, and   | included in a future  |         |
|        |         | delivery      | release of the        |         |
|        |         | orders).      | Standard Business     |         |
|        |         | Although      | Process document.     |         |
|        |         | multiple      |                       |         |
|        |         | steps         |                       |         |
|        |         | comprise this |                       |         |
|        |         | part of the   |                       |         |
|        |         | process, such |                       |         |
|        |         | steps are     |                       |         |
|        |         | beyond the    |                       |         |
|        |         | scope of this |                       |         |
|        |         | document.     |                       |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Federal | The           |                       | SMC-01  |
|        | Vendor? | cont          |                       |         |
| 2      |         | ractor/vendor |                       | PMA-01  |
| .3.1.7 |         | is identified |                       |         |
|        |         | as either a   |                       |         |
|        |         | federal or    |                       |         |
|        |         | non-federal   |                       |         |
|        |         | vendor.       |                       |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Inte    | Applicable    | Goods/services to be  |         |
| 2      | ragency | procedures    | acquired via an       |         |
| .3.1.8 | A       | are performed | interagency assisted  |         |
|        | ssisted | to acquire    | acquisition, are      |         |
|        | Acqu    | g             | subject to the        |         |
|        | isition | oods/services | procedures and        |         |
|        |         | through the   | responsibilities      |         |
|        |         | assistance of | outlined in the OMB   |         |
|        |         | another       | Office of Federal     |         |
|        |         | agency or     | Procurement Policy    |         |
|        |         | agencies.     | (OFPP) Interagency    |         |
|        |         |               | Acquisition Memo.     |         |
|        |         |               |                       |         |
|        |         |               | An interagency        |         |
|        |         |               | acquisition is the    |         |
|        |         |               | term used to describe |         |
|        |         |               | the process by which  |         |
|        |         |               | one agency            |         |
|        |         |               | (requesting agency),  |         |
|        |         |               | uses the contracts    |         |
|        |         |               | and/or contracting    |         |
|        |         |               | services of other     |         |
|        |         |               | agencies (servicing   |         |
|        |         |               | agencies) to obtain   |         |
|        |         |               | supplies and          |         |
|        |         |               | services.             |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | I       | The           | Vendors must be       | FME-01  |
| 2      | nitiate | Acquisition   | registered in the     |         |
| .3.1.9 | and     | official      | Central Contractor    | FME-21  |
|        | Au      | prepares and  | Registration (CCR)    |         |
|        | thorize | authorizes an | database except for   | PMA-01  |
|        | Award   | electronic    | contracts and         |         |
|        | D       | award         | agreements identified | PMA-02  |
|        | ocument | document.     | in FAR Volume I, Part |         |
|        |         |               | 4, Subpart 4.11.      | PMA-04  |
|        |         |               |                       |         |
|        |         |               | A unique obligation   | PMA-05  |
|        |         |               | number is assigned to |         |
|        |         |               | the award document.   | PMA-06  |
|        |         |               | The number must       |         |
|        |         |               | reference the         | PMA-07  |
|        |         |               | commitment number.    |         |
|        |         |               |                       | PMA-08  |
|        |         |               | The obligation        |         |
|        |         |               | number, document ID,  | PMA-09  |
|        |         |               | and accounting        |         |
|        |         |               | classification        | PMA-10  |
|        |         |               | elements must be      |         |
|        |         |               | included in the       | PMA-15  |
|        |         |               | obligation data       |         |
|        |         |               | maintained in the     | PMA-16  |
|        |         |               | General Ledger and    |         |
|        |         |               | subsidiary ledger.    | PMA-17  |
|        |         |               |                       |         |
|        |         |               | An award document     | SMA-01  |
|        |         |               | must not be routed to |         |
|        |         |               | end-users until an    | SMB-01  |
|        |         |               | obligation is         |         |
|        |         |               | recorded in the       | SMB-03  |
|        |         |               | General Ledger and    |         |
|        |         |               | subsidiary ledger.    | SMB-08  |
|        |         |               | Once the Acquisition  |         |
|        |         |               | official prepares and | SMB-24  |
|        |         |               | authorizes the award  |         |
|        |         |               | document, funds       | SMC-01  |
|        |         |               | checks are performed  |         |
|        |         |               | in the Core Financial |         |
|        |         |               | System to determine   |         |
|        |         |               | whether required      |         |
|        |         |               | funding is available  |         |
|        |         |               | for each line item of |         |
|        |         |               | the obligation.       |         |
|        |         |               |                       |         |
|        |         |               | The requested         |         |
|        |         |               | obligation amounts    |         |
|        |         |               | are subjected to      |         |
|        |         |               | tolerance checks      |         |
|        |         |               | against the           |         |
|        |         |               | referenced            |         |
|        |         |               | commitment(s).        |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Advance | The agency    | The agency must       |         |
| 2.     | R       | determines    | follow FAR            |         |
| 3.1.10 | equest? | whether an    | requirements and      |         |
|        |         | advance has   | agency policies and   |         |
|        |         | been properly | procedures for the    |         |
|        |         | requested on  | issuance of advances. |         |
|        |         | the           | FAR Volume I, Part    |         |
|        |         | obligation.   | 32, Subparts 200      |         |
|        |         |               | through 207, provides |         |
|        |         |               | regulations for       |         |
|        |         |               | commercial item       |         |
|        |         |               | purchase financing.   |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Process | An advance    |                       | FME-02  |
| 2.     | Advance | request is    |                       |         |
| 3.1.11 |         | processed and |                       | FME-29  |
|        |         | warehoused    |                       |         |
|        |         | for payment.  |                       | SMC-02  |
+--------+---------+---------------+-----------------------+---------+
| FM     | Obl     | An obligation | Once an obligation    | FME-02  |
| 2.     | igation | is recorded   | document passes       |         |
| 3.1.12 | Records | in the        | funding and tolerance | FME-08  |
|        | in      | General       | checks, it is         |         |
|        | General | Ledger.       | recorded in the       | FME-12  |
|        | Ledger  |               | General Ledger and    |         |
|        |         |               | the appropriate       | GLB-01  |
|        |         |               | amount of the         |         |
|        |         |               | commitment is         | GLC-01  |
|        |         |               | liquidated.           |         |
|        |         |               |                       | GLC-05  |
|        |         |               | This designated       |         |
|        |         |               | business unit         | GLC-06  |
|        |         |               | requisition person is |         |
|        |         |               | notified              | SMC-02  |
|        |         |               | electronically of the |         |
|        |         |               | approved order and    | TLE-07  |
|        |         |               | obligation.           |         |
|        |         |               |                       |         |
|        |         |               | The entries are       |         |
|        |         |               | recorded using the    |         |
|        |         |               | USSGL Account         |         |
|        |         |               | Transaction Listing   |         |
|        |         |               | provided in the       |         |
|        |         |               | current TFM.          |         |
|        |         |               |                       |         |
|        |         |               | Examples include, but |         |
|        |         |               | are not limited to,   |         |
|        |         |               | the following         |         |
|        |         |               | transaction codes     |         |
|        |         |               | from the current TFM: |         |
|        |         |               |                       |         |
|        |         |               | TFM-B306 To record    |         |
|        |         |               | current-year          |         |
|        |         |               | undelivered orders    |         |
|        |         |               | without an advance.   |         |
|        |         |               |                       |         |
|        |         |               | TFM-B308 To record    |         |
|        |         |               | current-year          |         |
|        |         |               | undelivered orders    |         |
|        |         |               | with an advance.      |         |
|        |         |               |                       |         |
|        |         |               | TFM-B310 To record a  |         |
|        |         |               | current-year          |         |
|        |         |               | undelivered order     |         |
|        |         |               | without an advance    |         |
|        |         |               | where the commitment  |         |
|        |         |               | is more than the      |         |
|        |         |               | undelivered order for |         |
|        |         |               | commitments in        |         |
|        |         |               | programs subject to   |         |
|        |         |               | apportionment.        |         |
|        |         |               |                       |         |
|        |         |               | TFM-B312 To record a  |         |
|        |         |               | current-year          |         |
|        |         |               | undelivered order     |         |
|        |         |               | without an advance    |         |
|        |         |               | where the commitment  |         |
|        |         |               | is more than the      |         |
|        |         |               | undelivered order for |         |
|        |         |               | commitments in        |         |
|        |         |               | programs exempt from  |         |
|        |         |               | apportionment.        |         |
|        |         |               |                       |         |
|        |         |               | TFM-B314 To record a  |         |
|        |         |               | current-year          |         |
|        |         |               | undelivered order     |         |
|        |         |               | without an advance    |         |
|        |         |               | where the commitment  |         |
|        |         |               | is less than the      |         |
|        |         |               | undelivered order for |         |
|        |         |               | commitments in        |         |
|        |         |               | programs subject to   |         |
|        |         |               | apportionment.        |         |
|        |         |               |                       |         |
|        |         |               | TFM-B316 To record a  |         |
|        |         |               | current-year          |         |
|        |         |               | undelivered order     |         |
|        |         |               | without an advance    |         |
|        |         |               | where the commitment  |         |
|        |         |               | is less than the      |         |
|        |         |               | undelivered order for |         |
|        |         |               | commitments in        |         |
|        |         |               | programs exempt from  |         |
|        |         |               | apportionment.        |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Award   | Notification  | The document must be  | TLE-07  |
| 2.     | D       | of the        | available to          |         |
| 3.1.13 | ocument | sys           | applicable offices    |         |
|        |         | tem-generated | that perform the      |         |
|        | Notif   | award         | receipt, acceptance,  |         |
|        | ication | document is   | and invoice           |         |
|        |         | provided to   | processing activities |         |
|        |         | the           | as well as the        |         |
|        |         | Receiving,    | vendor/payee.         |         |
|        |         | Business      |                       |         |
|        |         | Unit, and     | The award document    |         |
|        |         | Finance       | copy should include   |         |
|        |         | functional    | at a minimum, but is  |         |
|        |         | areas of the  | not limited to, the   |         |
|        |         | agency and to | obligation number,    |         |
|        |         | the           | line item             |         |
|        |         | vendor/payee. | information,          |         |
|        |         |               | accounting            |         |
|        |         |               | classification        |         |
|        |         |               | elements, TAS,        |         |
|        |         |               | applicable vendor     |         |
|        |         |               | information, and      |         |
|        |         |               | contract terms.       |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Award   | The Receiving | The Core Financial    | TLF-01  |
| 2.     | Do      | view includes | System must enable    |         |
| 3.1.14 | cument- | information   | access to the         | TLH-03  |
|        | Re      | applicable to | Receiving view of the |         |
|        | ceiving | the Receiving | award document to     |         |
|        | View    | functions.    | applicable authorized |         |
|        |         |               | personnel.            |         |
|        |         |               |                       |         |
|        |         |               | A view does not       |         |
|        |         |               | represent physical    |         |
|        |         |               | storage, but the      |         |
|        |         |               | ability to view a     |         |
|        |         |               | particular segment of |         |
|        |         |               | stored data.          |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Award   | The Business  | The Core Financial    | TLF-01  |
| 2.     | Do      | Unit view     | System must enable    |         |
| 3.1.15 | cument- | includes      | access to the         | TLH-03  |
|        |         | information   | Business Unit view of |         |
|        | B       | applicable to | the award document to |         |
|        | usiness | the Business  | applicable authorized |         |
|        | Unit    | Unit          | personnel.            |         |
|        | View    | functions.    |                       |         |
|        |         |               | A view does not       |         |
|        |         |               | represent physical    |         |
|        |         |               | storage, but the      |         |
|        |         |               | ability to view a     |         |
|        |         |               | particular segment of |         |
|        |         |               | stored data.          |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Award   | The Finance   | The Core Financial    | TLF-01  |
| 2.     | Do      | view includes | System must enable    |         |
| 3.1.16 | cument- | information   | access to the Finance | TLH-03  |
|        | Finance | fields        | view of the award     |         |
|        | View    | applicable to | document to           |         |
|        |         | the Finance   | applicable authorized |         |
|        |         | functions.    | personnel.            |         |
|        |         |               |                       |         |
|        |         |               | A view does not       |         |
|        |         |               | represent physical    |         |
|        |         |               | storage, but the      |         |
|        |         |               | ability to view a     |         |
|        |         |               | particular segment of |         |
|        |         |               | stored data.          |         |
+--------+---------+---------------+-----------------------+---------+
| FM     | Award   | The Vendor    | The vendor copy of    |         |
| 2.     | Do      | Copy includes | the award document is |         |
| 3.1.17 | cument- | information   | sent to the           |         |
|        | Vendor  | applicable to | vendor/payee.         |         |
|        | Copy    | the vendor\'s |                       |         |
|        |         | legal         | A view does not       |         |
|        |         | obligation to | represent physical    |         |
|        |         | provide goods | storage, but the      |         |
|        |         | and services  | ability to view a     |         |
|        |         | to the        | particular segment of |         |
|        |         | agency.       | stored data.          |         |
+--------+---------+---------------+-----------------------+---------+

## 2.3.2 **Establishing Obligations Not Requiring Commitment**

Obligations not requiring commitment refers to those events, such as
training and travel, which do not require commitment accounting.
Agencies should have policies in place that delineate the types of
obligations that can be made without commitment accounting.

The steps contained in the flowchart below describe the procedures
necessary to prepare an obligation without a prior commitment. Please
note that the "Verify Funding Available" step, which is included on the
flowchart, is the trigger point for the Funds Validation and
Verification flows (2.3.4 and 2.3.5).

## FM 2.3.2 -- Establishing Obligations Not Requiring Commitment Flowchart {#fm-2.3.2-establishing-obligations-not-requiring-commitment-flowchart .unnumbered}

![](media/image10.wmf){width="6.489583333333333in"
height="3.814583333333333in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Funds Management Establishing Obligations not Requiring Commitments
process steps are described as follows:

+--------+---------+------------------+---------------------+--------+
| Step   | Step    | Step Description | Business Rules      | CFSR   |
| ID     | Name    |                  |                     | Req.   |
+========+=========+==================+=====================+========+
| FM     | I       | The Business     | Agencies should     | FME-21 |
| 2      | dentify | Unit official    | implement policies  |        |
| .3.2.1 | Bona    | has a bona fide  | and procedures      | FME-24 |
|        | fide    | need for a       | describing which    |        |
|        | Need    | properly         | type of obligations | PMA-01 |
|        |         | incurred expense | may be made without |        |
|        |         | not requiring    | commitment          | PMA-02 |
|        |         | commitment       | accounting.         |        |
|        |         | accounting and   |                     | PMA-04 |
|        |         | generates an     |                     |        |
|        |         | obligation in    |                     | PMA-05 |
|        |         | the system based |                     |        |
|        |         | on data entered  |                     | PMA-06 |
|        |         | to record the    |                     |        |
|        |         | goods, services, |                     | PMA-07 |
|        |         | grant or         |                     |        |
|        |         | cooperative      |                     | PMA-08 |
|        |         | agreement.       |                     |        |
|        |         |                  |                     | PMA-09 |
|        |         |                  |                     |        |
|        |         |                  |                     | PMA-10 |
|        |         |                  |                     |        |
|        |         |                  |                     | PMA-16 |
|        |         |                  |                     |        |
|        |         |                  |                     | PMA-17 |
|        |         |                  |                     |        |
|        |         |                  |                     | SMA-01 |
|        |         |                  |                     |        |
|        |         |                  |                     | SMB-01 |
|        |         |                  |                     |        |
|        |         |                  |                     | SMB-22 |
|        |         |                  |                     |        |
|        |         |                  |                     | SMB-24 |
+--------+---------+------------------+---------------------+--------+
| FM     | Federal | The              |                     | SMC-01 |
| 2      | Vendor? | c                |                     |        |
| .3.2.2 |         | ontractor/vendor |                     | PMA-01 |
|        |         | is identified as |                     |        |
|        |         | either a federal |                     |        |
|        |         | or non-federal   |                     |        |
|        |         | vendor.          |                     |        |
|        |         |                  |                     |        |
|        |         | Federal          |                     |        |
|        |         | (in              |                     |        |
|        |         | tragovernmental) |                     |        |
|        |         | buy and sell     |                     |        |
|        |         | transactions     |                     |        |
|        |         | will be included |                     |        |
|        |         | in a future      |                     |        |
|        |         | release of the   |                     |        |
|        |         | Standard         |                     |        |
|        |         | Business Process |                     |        |
|        |         | document.        |                     |        |
+--------+---------+------------------+---------------------+--------+
| FM     | Inte    | Applicable       | Goods/services to   |        |
| 2      | ragency | procedures are   | be acquired via an  |        |
| .3.2.3 | A       | performed to     | interagency         |        |
|        | ssisted | acquire          | assisted            |        |
|        | Acqu    | goods/services   | acquisition are     |        |
|        | isition | through the      | subject to the      |        |
|        |         | assistance of    | procedures and      |        |
|        |         | another agency   | responsibilities    |        |
|        |         | or agencies.     | outlined in the OMB |        |
|        |         |                  | Office of Federal   |        |
|        |         |                  | Procurement Policy  |        |
|        |         |                  | (OFPP) Interagency  |        |
|        |         |                  | Acquisition Memo.   |        |
|        |         |                  |                     |        |
|        |         |                  | An interagency      |        |
|        |         |                  | acquisition is the  |        |
|        |         |                  | term used to        |        |
|        |         |                  | describe the        |        |
|        |         |                  | process by which    |        |
|        |         |                  | one agency          |        |
|        |         |                  | (requesting         |        |
|        |         |                  | agency), uses the   |        |
|        |         |                  | contracts and/or    |        |
|        |         |                  | contracting         |        |
|        |         |                  | services of other   |        |
|        |         |                  | agencies (servicing |        |
|        |         |                  | agencies) to obtain |        |
|        |         |                  | supplies and        |        |
|        |         |                  | services.           |        |
+--------+---------+------------------+---------------------+--------+
| FM     | I       | The Business     | A unique obligation | FME-21 |
| 2      | nitiate | Unit official    | number is assigned  |        |
| .3.2.4 | Obl     | prepares the     | to the obligation   | FME-24 |
|        | igation | order for goods  | document recorded.  |        |
|        | Not     | and services not |                     | PMA-01 |
|        | Re      | requiring        | The obligation      |        |
|        | quiring | commitment.      | number, document ID | PMA-02 |
|        | Com     |                  | and accounting      |        |
|        | mitment |                  | classification      | PMA-04 |
|        |         |                  | elements must be    |        |
|        |         |                  | included in the     | PMA-05 |
|        |         |                  | obligation data     |        |
|        |         |                  | maintained in the   | PMA-06 |
|        |         |                  | General Ledger and  |        |
|        |         |                  | subsidiary ledger.  | PMA-07 |
|        |         |                  |                     |        |
|        |         |                  | The Core Financial  | PMA-08 |
|        |         |                  | System must prevent |        |
|        |         |                  | new obligations to  | PMA-09 |
|        |         |                  | inactive or         |        |
|        |         |                  | debarred vendors or | PMA-10 |
|        |         |                  | vendors with        |        |
|        |         |                  | expired CCR         | PMA-16 |
|        |         |                  | registrations.      |        |
|        |         |                  |                     | PMA-17 |
|        |         |                  | An agency may       |        |
|        |         |                  | develop and         | SMA-01 |
|        |         |                  | implement policies  |        |
|        |         |                  | and procedures to   | SMB-01 |
|        |         |                  | determine threshold |        |
|        |         |                  | amounts under which | SMB-22 |
|        |         |                  | acquisitions may be |        |
|        |         |                  | made without        | SMB-24 |
|        |         |                  | requiring the       |        |
|        |         |                  | recording of        |        |
|        |         |                  | commitments.        |        |
+--------+---------+------------------+---------------------+--------+
| FM     | Verify  | The Core         | Once the            | FME-01 |
| 2      | Funding | Financial System | Acquisition         |        |
| .3.2.5 | Av      | checks whether   | official            |        |
|        | ailable | funding is       | electronically      |        |
|        |         | available to     | prepares the        |        |
|        |         | obligate funds   | obligating          |        |
|        |         | from applicable  | document, funds     |        |
|        |         | budgetary        | checks are          |        |
|        |         | resources. This  | performed in the    |        |
|        |         | process is       | Core Financial      |        |
|        |         | executed by      | System to determine |        |
|        |         | performing the   | whether required    |        |
|        |         | applicable steps | funding is          |        |
|        |         | in FM 2.3.4      | available for each  |        |
|        |         | (Unexpired Funds | line item of the    |        |
|        |         | Validation and   | obligation.         |        |
|        |         | Verification) as |                     |        |
|        |         | referenced on    | The system          |        |
|        |         | the flowchart.   | certifies           |        |
|        |         |                  | availability of     |        |
|        |         |                  | required funding    |        |
|        |         |                  | prior to obligating |        |
|        |         |                  | budgetary           |        |
|        |         |                  | resources.          |        |
+--------+---------+------------------+---------------------+--------+
| FM     | Au      | A request for    | Another official    | TLE-01 |
| 2      | thorize | authorization is | within the Business |        |
| .3.2.6 | Obl     | electronically   | Unit must review    |        |
|        | igation | routed to the    | the obligation to   |        |
|        |         | appropriate      | ensure it is        |        |
|        |         | individual       | authorized and      |        |
|        |         | within the       | valid.              |        |
|        |         | Business Unit to |                     |        |
|        |         | authorize the    |                     |        |
|        |         | obligation.      |                     |        |
+--------+---------+------------------+---------------------+--------+
| FM     | Obl     | An obligation is | Once an obligating  | FME-02 |
| 2      | igation | recorded in the  | document passes     |        |
| .3.2.7 | Records | General Ledger.  | funding and         | FME-08 |
|        | in      |                  | tolerance checks,   |        |
|        | General |                  | it is recorded in   | FME-12 |
|        | Ledger  |                  | the General Ledger. |        |
|        |         |                  |                     | GLB-01 |
|        |         |                  | Entries are         |        |
|        |         |                  | recorded using      | GLC-01 |
|        |         |                  | USSGL Account       |        |
|        |         |                  | Transaction Listing | GLC-05 |
|        |         |                  | provided in the     |        |
|        |         |                  | current TFM.        | GLC-06 |
|        |         |                  |                     |        |
|        |         |                  | Examples include,   |        |
|        |         |                  | but are not limited |        |
|        |         |                  | to, the following   |        |
|        |         |                  | transaction codes   |        |
|        |         |                  | from the current    |        |
|        |         |                  | TFM:                |        |
|        |         |                  |                     |        |
|        |         |                  | TFM-B306 To record  |        |
|        |         |                  | current-year        |        |
|        |         |                  | undelivered orders  |        |
|        |         |                  | without an advance. |        |
|        |         |                  |                     |        |
|        |         |                  | TFM-B308 To record  |        |
|        |         |                  | current-year        |        |
|        |         |                  | undelivered orders  |        |
|        |         |                  | with an advance.    |        |
+--------+---------+------------------+---------------------+--------+

##  2.3.3 **Funds Check Prior to Obligation**

The Funds Check Prior to Obligation process refers to contractual
acquisitions for which commitments and obligations are used. Included
are steps to compare an obligation request to an underlying commitment,
assess availability of funds, and liquidate commitments at the time of
obligation.

Please note that the 'yes' response for decision point FM 2.3.3.3 "Pass
Tolerance Check?" is the trigger point for the Funds Verification and
Validation flows (2.3.4 and 2.3.5).

The steps contained in the flowchart below describe the procedures
necessary to perform a funds check prior to the obligation of funds.

## FM 2.3.3 -- Funds Check Prior to Obligation Flowchart {#fm-2.3.3-funds-check-prior-to-obligation-flowchart .unnumbered}

![](media/image11.wmf){width="6.490277777777778in"
height="4.903472222222222in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart.

The Funds Management Funds Check Prior to Obligation process steps are
described as follows:

+---------+-----------+-------------------+-------------------+-------+
| Step ID | Step Name | Step Description  | Business Rules    | CFSR  |
|         |           |                   |                   | Req.  |
+=========+===========+===================+===================+=======+
| FM      | O         | The amount of the | Once the Core     | F     |
| 2.3.3.1 | bligation | pending           | Financial System  | ME-02 |
|         | Amount    | obligation is     | determines a      |       |
|         | Equal to  | compared to the   | commitment exists | S     |
|         | Co        | amount of the     | related to this   | MB-03 |
|         | mmitment? | applicable        | obligation, it    |       |
|         |           | commitment to     | determines if the | S     |
|         |           | determine if the  | obligation amount | MC-02 |
|         |           | obligation is     | equals the        |       |
|         |           | equal to the      | commitment        | S     |
|         |           | commitment        | amount.           | MC-08 |
|         |           | recorded in the   |                   |       |
|         |           | Core Financial    |                   |       |
|         |           | System.           |                   |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | O         | The amount of the | If the obligation | F     |
| 2.3.3.2 | bligation | pending           | amount is not     | ME-02 |
|         | Amount    | obligation is     | equal to the      |       |
|         | Less than | compared to the   | commitment        | S     |
|         | the       | amount of the     | amount, determine | MB-03 |
|         | Co        | applicable        | if the obligation |       |
|         | mmitment? | commitment to     | amount requested  | S     |
|         |           | determine if the  | is less than the  | MC-02 |
|         |           | obligation amount | commitment        |       |
|         |           | requested is less | recorded in the   | S     |
|         |           | than the          | Core Financial    | MC-08 |
|         |           | commitment        | System.           |       |
|         |           | recorded in the   |                   |       |
|         |           | Core Financial    |                   |       |
|         |           | System.           |                   |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Pass      | The amount by     | Agencies set      | S     |
| 2.3.3.3 | Tolerance | which an          | tolerance levels  | MB-19 |
|         | Check?    | obligation        | in accordance     |       |
|         |           | exceeds a         | with applicable   | S     |
|         |           | commitment is     | rules,            | MB-20 |
|         |           | compared line     | regulations, and  |       |
|         |           | item by line item | agency guidelines |       |
|         |           | to pre-determined | (e.g. FAR, agency |       |
|         |           | tolerance levels  | policy and        |       |
|         |           | for quantities    | procedures).      |       |
|         |           | and prices of     |                   |       |
|         |           | goods or          |                   |       |
|         |           | services.         |                   |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Resolve   | Designated        | Designated        | F     |
| 2.3.3.4 | Issue     | personnel perform | personnel resolve | MD-05 |
|         |           | applicable        | funding issues in |       |
|         |           | actions to        | accordance with   | S     |
|         |           | resolve the       | applicable rules, | MB-16 |
|         |           | funding issue.    | regulations, and  |       |
|         |           |                   | agency            | S     |
|         |           |                   | guidelines.       | MB-18 |
|         |           |                   |                   |       |
|         |           |                   | If funding is not | S     |
|         |           |                   | made available,   | MC-09 |
|         |           |                   | the obligation    |       |
|         |           |                   | request is        |       |
|         |           |                   | rejected.         |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Issue     | If the amount of  | The Core          |       |
| 2.3.3.5 | Resolved? | the obligation    | Financial System  |       |
|         |           | request exceeds   | should route the  |       |
|         |           | the tolerance     | funding issues to |       |
|         |           | level within the  | applicable        |       |
|         |           | Core Financial    | authorized        |       |
|         |           | System and/or     | personnel who     |       |
|         |           | funds are not     | will either       |       |
|         |           | available,        | discontinue the   |       |
|         |           | research must be  | transaction or    |       |
|         |           | performed to      | make funds        |       |
|         |           | identify and      | available.        |       |
|         |           | resolve the       |                   |       |
|         |           | funding issue.    |                   |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Reject    | If the issue is   | Agencies should   | S     |
| 2.3.3.6 | O         | not resolved, the | designate         | MB-18 |
|         | bligation | obligation        | applicable        |       |
|         | Request   | request is        | personnel to      |       |
|         |           | rejected.         | monitor           |       |
|         |           |                   | obligation        |       |
|         |           |                   | requests, which   |       |
|         |           |                   | fail to pass      |       |
|         |           |                   | funds checks and  |       |
|         |           |                   | reject such       |       |
|         |           |                   | requests as       |       |
|         |           |                   | required.         |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Generate  | Following the     | The message       | T     |
| 2.3.3.7 | Message   | rejection of the  | should be         | LE-07 |
|         | for       | obligation        | initiated         |       |
|         | Business  | request, a        | electronically    | T     |
|         | Unit and  | message is        | once the          | LE-08 |
|         | Ac        | generated for the | obligation        |       |
|         | quisition | Business Unit and | request is        |       |
|         |           | Acquisition       | rejected.         |       |
|         |           | Office.           |                   |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Not       | Notification is   | The message       | T     |
| 2.3.3.8 | ification | sent to the       | should be         | LE-07 |
|         | Sent to   | Business          | electronically    |       |
|         | Business  | Unit/Acquisition  | routed to         | T     |
|         | Unit/Ac   | Office of the     | applicable        | LE-08 |
|         | quisition | rejected          | personnel within  |       |
|         | Office    | obligation.       | the Business Unit |       |
|         |           |                   | and Acquisition   |       |
|         |           |                   | Office (e.g.,     |       |
|         |           |                   | requisitioner,    |       |
|         |           |                   | acquisition       |       |
|         |           |                   | official).        |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Is this   | Determine if this | The Core          |       |
| 2.3.3.9 | the Final | is the last       | Financial System  |       |
|         | O         | obligation to be  | should check      |       |
|         | bligation | made from this    | whether funds     |       |
|         | on this   | commitment.       | will remain on    |       |
|         | Co        |                   | the commitment    |       |
|         | mmitment? |                   | based upon        |       |
|         |           |                   | whether the       |       |
|         |           |                   | requisitioner has |       |
|         |           |                   | indicated in the  |       |
|         |           |                   | system that       |       |
|         |           |                   | remaining funds   |       |
|         |           |                   | should be         |       |
|         |           |                   | de-committed.     |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Liquidate | The portion of    | The agency must   | S     |
| 2       | Portion   | the commitment    | liquidate the     | MC-02 |
| .3.3.10 | of        | applicable to the | commitment by     |       |
|         | C         | obligation is     | posting entries   |       |
|         | ommitment | liquidated.       | to the Core       |       |
|         | that is   |                   | Financial System  |       |
|         | Obligated |                   | using the USSGL   |       |
|         |           |                   | Account           |       |
|         |           |                   | Transaction       |       |
|         |           |                   | Listing in the    |       |
|         |           |                   | current TFM. The  |       |
|         |           |                   | agency reverses   |       |
|         |           |                   | (only for the     |       |
|         |           |                   | portion of the    |       |
|         |           |                   | commitment that   |       |
|         |           |                   | is obligated) the |       |
|         |           |                   | previously        |       |
|         |           |                   | identified (FM    |       |
|         |           |                   | 2.3.1.4,          |       |
|         |           |                   | Commitment        |       |
|         |           |                   | Records in        |       |
|         |           |                   | General Ledger)   |       |
|         |           |                   | entries.          |       |
|         |           |                   |                   |       |
|         |           |                   | Examples include  |       |
|         |           |                   | but are not       |       |
|         |           |                   | limited to, the   |       |
|         |           |                   | following         |       |
|         |           |                   | transaction codes |       |
|         |           |                   | from the current  |       |
|         |           |                   | TFM:              |       |
|         |           |                   |                   |       |
|         |           |                   | TFM-B302 To       |       |
|         |           |                   | record a          |       |
|         |           |                   | commitment of     |       |
|         |           |                   | unobligated       |       |
|         |           |                   | amounts in        |       |
|         |           |                   | programs subject  |       |
|         |           |                   | to apportionment. |       |
|         |           |                   |                   |       |
|         |           |                   | TFM-B304 To       |       |
|         |           |                   | record a          |       |
|         |           |                   | commitment of     |       |
|         |           |                   | unobligated       |       |
|         |           |                   | balances in       |       |
|         |           |                   | programs exempt   |       |
|         |           |                   | from              |       |
|         |           |                   | apportionment.    |       |
+---------+-----------+-------------------+-------------------+-------+
| FM      | Entire    | If the obligation | The agency        |       |
| 2       | C         | and commitment    | reverses the      |       |
| .3.3.11 | ommitment | are equal or if   | previously        |       |
|         | L         | the obligation    | identified (FM    |       |
|         | iquidated | has been          | 2.3.1.4,          |       |
|         | in the    | identified as the | Commitment        |       |
|         | General   | final one to be   | Records in        |       |
|         | Ledger    | made against the  | General Ledger)   |       |
|         |           | commitment, the   | transaction codes |       |
|         |           | entire commitment | from the current  |       |
|         |           | or remaining      | TFM.              |       |
|         |           | amount is         |                   |       |
|         |           | liquidated in the | Examples include, |       |
|         |           | General Ledger.   | but are not       |       |
|         |           |                   | limited to, the   |       |
|         |           |                   | following         |       |
|         |           |                   | transaction codes |       |
|         |           |                   | from the current  |       |
|         |           |                   | TFM:              |       |
|         |           |                   |                   |       |
|         |           |                   | TFM-B302 To       |       |
|         |           |                   | record a          |       |
|         |           |                   | commitment of     |       |
|         |           |                   | unobligated       |       |
|         |           |                   | amounts in        |       |
|         |           |                   | programs subject  |       |
|         |           |                   | to apportionment. |       |
|         |           |                   |                   |       |
|         |           |                   | TFM-B304 To       |       |
|         |           |                   | record a          |       |
|         |           |                   | commitment of     |       |
|         |           |                   | unobligated       |       |
|         |           |                   | balances in       |       |
|         |           |                   | programs exempt   |       |
|         |           |                   | from              |       |
|         |           |                   | apportionment.    |       |
+---------+-----------+-------------------+-------------------+-------+

##  2.3.4 **Unexpired Funds Validation and Verification**

Unexpired funds refer to balances, which are still available under the
agency's spending authority. As prescribed in OMB Circular A-11,
Agencies are responsible for keeping appropriate fund balances,
including the balances for commitments, obligations and expenditures, to
ensure accurate and timely verification and reporting of available
funding. The Unexpired Funds Validation and Verification process
describes the steps required to validate and verify the availability of
unexpired funds for spending transactions.

## FM 2.3.4 -- Unexpired Funds Validation and Verification Flowchart  {#fm-2.3.4-unexpired-funds-validation-and-verification-flowchart .unnumbered}

![](media/image12.wmf){width="6.490277777777778in"
height="4.878472222222222in"}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart

The Unexpired Funds Validation and Verification process steps are
described as follows:

+---------+-------------+----------------+-----------------+----------+
| Step ID | > Step Name | > Step         | Business Rules  | > CFSR   |
|         |             | > Description  |                 | > Req.   |
+=========+=============+================+=================+==========+
| **FM    | **Document  | **The document | **Combinations  | **       |
| 2.      | data with   | represents the | of accounting   | SMB-21** |
| 3.4.1** | accounting  | detailed       | classification  |          |
|         | cla         | account        | elements must   |          |
|         | ssification | distribution,  | be valid and    |          |
|         | elements**  | including      | active.**       |          |
|         |             | appropriate    |                 |          |
|         |             | accounting     |                 |          |
|         |             | classification |                 |          |
|         |             | elements to be |                 |          |
|         |             | submitted for  |                 |          |
|         |             | funds          |                 |          |
|         |             | availability   |                 |          |
|         |             | v              |                 |          |
|         |             | erification.** |                 |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Funding   | **Verification | **An agency is  | **       |
| 2.      | established | that an        | responsible for | FME-01** |
| 3.4.2** | for         | Allotment or   | establishing a  |          |
|         | accounting  | any lower      | policy for      |          |
|         | cla         | level          | administrative  |          |
|         | ssification | distribution   | control of      |          |
|         | line?**     | was made to    | Funds.**        |          |
|         |             | the Allotment  |                 |          |
|         |             | pool indicated | **The policy    |          |
|         |             | by the account | must also       |          |
|         |             | distribution   | address         |          |
|         |             | (accounting    | restricting     |          |
|         |             | classification | obligations and |          |
|         |             | line) and the  | expenditures    |          |
|         |             | established    | from exceeding  |          |
|         |             | level of Funds | the lower of    |          |
|         |             | Control as     | the amount of   |          |
|         |             | established by | apportionments  |          |
|         |             | the agency as  | made by OMB or  |          |
|         |             | per Appendix H | the amount      |          |
|         |             | of OMB         | available for   |          |
|         |             | Circular       | obligation      |          |
|         |             | A-11.**        | and/or          |          |
|         |             |                | expenditure in  |          |
|         |             |                | the TAFS.**     |          |
|         |             |                |                 |          |
|         |             |                | **See OMB       |          |
|         |             |                | Circular A-11,  |          |
|         |             |                | Appendix H --   |          |
|         |             |                | Checklist For   |          |
|         |             |                | Fund Control    |          |
|         |             |                | Regulations.**  |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Message   | **Electronic   | **Business unit | **       |
| 2.      | to preparer | notification   | to be notified  | SMB-12** |
| 3.4.3** | that funds  | to document    | an Allotment or |          |
|         | are not     | preparer that  | lower level     | **       |
|         | established | funds were     | distribution    | TLE-07** |
|         | for         | never          | was never       |          |
|         | accounting  | established    | established for | **       |
|         | cla         | for the        | the accounting  | TLE-09** |
|         | ssification | account        | classification  |          |
|         | line**      | distribution   | element         |          |
|         |             | line.**        | specified in    |          |
|         |             |                | the account     |          |
|         |             |                | distribution.** |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Research  | **If funds are | **Designated    | **       |
| 2.      | and Resolve | not available, | personnel       | FMD-05** |
| 3.4.4** | Issues**    | the Business   | resolve         |          |
|         |             | Unit will      | applicable      | **       |
|         |             | research and   | issues in       | SMB-16** |
|         |             | resolve the    | accordance with |          |
|         |             | issue.**       | applicable      | **       |
|         |             |                | rules,          | SMC-09** |
|         |             |                | regulations,    |          |
|         |             |                | and agency      |          |
|         |             |                | guidelines.**   |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | > **Funding | > **The        | **The agency    | **       |
| 2.      | > Issue     | > appropriate  | shall resolve   | SMC-09** |
| 3.4.5** | >           | > functional   | funding issues  |          |
|         | Resolved?** | > area         | in accordance   |          |
|         |             | > determines   | with            |          |
|         |             | > if funding   | age             |          |
|         |             | > issues       | ncy-established |          |
|         |             | > related to   | policies and    |          |
|         |             | > the document | procedures.**   |          |
|         |             | > can be       |                 |          |
|         |             | > resolved.**  |                 |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | > **Reject  | > **Documents  | **Agencies      | **       |
| 2.      | >           | > that do not  | should          | SMB-11** |
| 3.4.6** |  Document** | > pass funding | designate       |          |
|         |             | > validation   | applicable      | **       |
|         |             | > and          | personnel to    | SMB-12** |
|         |             | > verification | monitor         |          |
|         |             | > checks are   | documents that  | **       |
|         |             | > rejected.**  | fail to pass    | SMB-13** |
|         |             |                | funds checks    |          |
|         |             |                | and reject such | **       |
|         |             |                | documents.**    | SMB-18** |
|         |             |                |                 |          |
|         |             |                | **The           | **       |
|         |             |                | originator of   | SMC-09** |
|         |             |                | the document is |          |
|         |             |                | electronically  |          |
|         |             |                | notified that   |          |
|         |             |                | the document    |          |
|         |             |                | has been        |          |
|         |             |                | rejected due to |          |
|         |             |                | lack of         |          |
|         |             |                | available       |          |
|         |             |                | funding.**      |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | *           | **Verification | **An agency is  | **       |
| 2.      | *Sufficient | that an        | responsible for | FME-01** |
| 3.4.7** | Funding     | Allotment or   | establishing a  |          |
|         | A           | any lower      | policy for      | **       |
|         | vailable?** | level          | administrative  | FME-02** |
|         |             | distribution   | control of      |          |
|         |             | was made to    | Funds.**        | **       |
|         |             | the 'funding   |                 | FME-03** |
|         |             | pool' as       | **The policy    |          |
|         |             | indicated by   | must also       | **       |
|         |             | the account    | address         | FME-04** |
|         |             | distribution   | restricting     |          |
|         |             | (accounting    | obligations and | **       |
|         |             | classification | expenditures    | FME-10** |
|         |             | line) and the  | from exceeding  |          |
|         |             | established    | *the lower of*  |          |
|         |             | level of Funds | the amount of   |          |
|         |             | Control as     | apportionments  |          |
|         |             | established by | made by OMB or  |          |
|         |             | the agency as  | the amount      |          |
|         |             | per Appendix H | available for   |          |
|         |             | of OMB         | obligation      |          |
|         |             | Circular       | and/or          |          |
|         |             | A-11.**        | expenditure in  |          |
|         |             |                | the TAFS.**     |          |
|         |             |                |                 |          |
|         |             |                | **See OMB       |          |
|         |             |                | Circular A-11,  |          |
|         |             |                | Appendix H --   |          |
|         |             |                | Checklist for   |          |
|         |             |                | Fund Control    |          |
|         |             |                | Regulations**   |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Pass      | **Validation   | **The agency    | **       |
| 2.      | Ant         | that the       | must verify     | FME-01** |
| 3.4.8** | ideficiency | amount of      | that the amount |          |
|         | Test?**     | funding 'drawn | of the          | **       |
|         |             | down' does not | transaction for | FME-10** |
|         |             | put the TAFS   | the fund code   |          |
|         |             | into an        | cited, when     |          |
|         |             | Antideficiency | added together  |          |
|         |             | condition.**   | with any and    |          |
|         |             |                | all other fund  |          |
|         |             |                | codes (if       |          |
|         |             |                | applicable) for |          |
|         |             |                | the specific    |          |
|         |             |                | TAFS does not   |          |
|         |             |                | exceed the      |          |
|         |             |                | overall amount  |          |
|         |             |                | apportioned by  |          |
|         |             |                | OMB.**          |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Message   | **Electronic   | **Business unit | > **     |
| 2.      | to preparer | notification   | to be notified  | SMB-12** |
| 3.4.9** | that funds  | to document    | that funds are  | >        |
|         | are not     | preparer that  | not available   | > **     |
|         | available   | there are      | and that the    | TLE-07** |
|         | for         | insufficient   | Funds Override  | >        |
|         | accounting  | funds          | Official has    | > **     |
|         | cla         | available for  | been            | TLE-09** |
|         | ssification | the account    | notified.**     |          |
|         | line**      | distribution   |                 |          |
|         |             | line.**        |                 |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Message   | **Electronic   | **As a part of  | > **     |
| 2.3     | to Override | notification   | providing OMB   | TLE-07** |
| .4.10** | Official    | to the         | with the        |          |
|         | for Failed  | designated     | agency's Funds  |          |
|         | Funds       | Funds Override | Control policy  |          |
|         | Check**     | Official that  | and             |          |
|         |             | there are      | regulations, an |          |
|         |             | insufficient   | appropriate     |          |
|         |             | funds          | individual is   |          |
|         |             | available for  | identified who  |          |
|         |             | the account    | is responsible  |          |
|         |             | distribution   | for any         |          |
|         |             | line.**        | obligation or   |          |
|         |             |                | expenditure     |          |
|         |             |                | exceeding the   |          |
|         |             |                | amount          |          |
|         |             |                | available in    |          |
|         |             |                | the             |          |
|         |             |                | appropriation   |          |
|         |             |                | or fund         |          |
|         |             |                | account, the    |          |
|         |             |                | OMB             |          |
|         |             |                | apportionment   |          |
|         |             |                | or              |          |
|         |             |                | r               |          |
|         |             |                | eapportionment, |          |
|         |             |                | the allotment   |          |
|         |             |                | or              |          |
|         |             |                | sub-allotments  |          |
|         |             |                | made by the     |          |
|         |             |                | agency, any     |          |
|         |             |                | statutory       |          |
|         |             |                | limitations,    |          |
|         |             |                | and any other   |          |
|         |             |                | administrative  |          |
|         |             |                | subdivision of  |          |
|         |             |                | funds made by   |          |
|         |             |                | the agency.**   |          |
|         |             |                |                 |          |
|         |             |                | **The agency    |          |
|         |             |                | must also       |          |
|         |             |                | provide         |          |
|         |             |                | procedures for  |          |
|         |             |                | dealing with    |          |
|         |             |                | violations of   |          |
|         |             |                | the             |          |
|         |             |                | Antideficiency  |          |
|         |             |                | Act as well as  |          |
|         |             |                | violations of   |          |
|         |             |                | other           |          |
|         |             |                | administrative  |          |
|         |             |                | subdivision of  |          |
|         |             |                | funds that are  |          |
|         |             |                | not violations  |          |
|         |             |                | of the          |          |
|         |             |                | Antideficiency  |          |
|         |             |                | Act.**          |          |
|         |             |                |                 |          |
|         |             |                | **See OMB       |          |
|         |             |                | Circular A-11,  |          |
|         |             |                | Appendix H --   |          |
|         |             |                | Checklist for   |          |
|         |             |                | Fund Control    |          |
|         |             |                | Regulations.**  |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Age       | **Process to   | **As a part of  | **       |
| 2.3     | ncy-defined | allow review   | providing OMB   | SMB-10** |
| .4.11** | process for | and, if        | with the        |          |
|         | override    | appropriate,   | agency's Funds  |          |
|         | approval of | approval for   | Control policy  |          |
|         | tr          | the            | and             |          |
|         | ansaction** | transaction.   | regulations, an |          |
|         |             | This would     | appropriate     |          |
|         |             | occur under a  | individual is   |          |
|         |             | CR or other    | identified who  |          |
|         |             | circumstances  | is responsible  |          |
|         |             | where the      | for any         |          |
|         |             | Funds Override | obligation or   |          |
|         |             | Official is    | expenditure     |          |
|         |             | aware of       | exceeding the   |          |
|         |             | additional     | amount          |          |
|         |             | funding        | available in    |          |
|         |             | available to   | the             |          |
|         |             | cover the      | appropriation   |          |
|         |             | transaction    | or fund         |          |
|         |             | amount so as   | account, the    |          |
|         |             | not to put the | OMB             |          |
|         |             | TAFS into an   | apportionment   |          |
|         |             | A              | or              |          |
|         |             | nti-deficiency | r               |          |
|         |             | condition.**   | eapportionment, |          |
|         |             |                | the allotment   |          |
|         |             |                | or              |          |
|         |             |                | sub-allotments  |          |
|         |             |                | made by the     |          |
|         |             |                | agency, any     |          |
|         |             |                | statutory       |          |
|         |             |                | limitations,    |          |
|         |             |                | and any other   |          |
|         |             |                | administrative  |          |
|         |             |                | subdivision of  |          |
|         |             |                | funds made by   |          |
|         |             |                | the agency.**   |          |
|         |             |                |                 |          |
|         |             |                | **The agency    |          |
|         |             |                | must also       |          |
|         |             |                | provide         |          |
|         |             |                | procedures for  |          |
|         |             |                | dealing with    |          |
|         |             |                | violations of   |          |
|         |             |                | the             |          |
|         |             |                | Antideficiency  |          |
|         |             |                | Act as well as  |          |
|         |             |                | violations of   |          |
|         |             |                | other           |          |
|         |             |                | administrative  |          |
|         |             |                | subdivision of  |          |
|         |             |                | funds that are  |          |
|         |             |                | not violations  |          |
|         |             |                | of the          |          |
|         |             |                | Antideficiency  |          |
|         |             |                | Act.**          |          |
|         |             |                |                 |          |
|         |             |                | **See OMB       |          |
|         |             |                | Circular A-11,  |          |
|         |             |                | Appendix H --   |          |
|         |             |                | Checklist for   |          |
|         |             |                | Fund Control    |          |
|         |             |                | Regulations.**  |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **Override  | **If override  | **The agency    | **       |
| 2.3     | Approved?** | approval has   | Funds Override  | SMC-09** |
| .4.12** |             | occurred, the  | Official must   |          |
|         |             | transaction    | ensure          |          |
|         |             | posts to the   | sufficient      |          |
|         |             | General        | applicable      |          |
|         |             | Ledger. If     | funding is      |          |
|         |             | override       | available prior |          |
|         |             | approval has   | to allowing the |          |
|         |             | not occurred,  | transaction to  |          |
|         |             | notification   | record to the   |          |
|         |             | is sent to the | General         |          |
|         |             | Business Unit  | Ledger.**       |          |
|         |             | and the        |                 |          |
|         |             | transaction is |                 |          |
|         |             | cancelled.**   |                 |          |
+---------+-------------+----------------+-----------------+----------+
| **FM    | **message   | **Electronic   | **Business Unit | **       |
| 2.3     | to preparer | notification   | to be notified  | TLE-07** |
| .4.13** | that        | to document    | that funds are  |          |
|         | override    | preparer that  | not available   | **       |
|         | for funding | override       | and that the    | TLE-08** |
|         | is not      | approval was   | Funds Override  |          |
|         | approved**  | not granted.** | Official has    |          |
|         |             |                | not approved    |          |
|         |             |                | the override    |          |
|         |             |                | transaction.**  |          |
+---------+-------------+----------------+-----------------+----------+

## 2.3.5 **Expired Funds Validation and Verification**

Expired funds refer to balances that are no longer available under the
agency's spending authority. However, agencies are still responsible for
keeping appropriate fund balances for expired funds to ensure accurate
and timely verification and reporting of expired/cancelled funding. The
process requires validating and verifying the availability of expired
funds for the recording of previously unrecorded obligations and/or
making legitimate upward adjustments to existing obligations until the
expired authority is cancelled and the expired account is closed.

Please see OMB Circular A-11 for additional guidance.

**Note:** Verification of available funding in expired accounts is
performed at the fund account or TAFS level as opposed to the detailed
Allotment pool or accounting classification line level for the year-end
closing entries (e.g., when a fund account expires and rolls up all
unobligated balances to USSGL account 4650 Allotments -- Expired
Authority).

## FM 2.3.5 -- Expired Funds Validation and Verification Flowchart  {#fm-2.3.5-expired-funds-validation-and-verification-flowchart .unnumbered}

## ![](media/image13.wmf){width="6.490277777777778in" height="4.878472222222222in"} {#section-5 .unnumbered}

See Appendix C -- Business Process Flowcharts, Symbols, and Definitions
for an enlarged version of the flowchart

The Expired Funds Validation and Verification process steps are
described as follows:

+---------+------------+----------------+-----------------+----------+
| Step ID | Step Name  | Step           | Business Rules  | CFSR     |
|         |            | Description    |                 | Req.     |
+=========+============+================+=================+==========+
| **FM    | **Upward   | **The detailed | **The detail    | **       |
| 2.      | Adjustment | upward         | data from the   | SMB-21** |
| 3.5.1** | Document   | adjustment     | document being  |          |
|         | Data**     | data to be     | processed and   |          |
|         |            | submitted to   | submitted for a |          |
|         |            | funds          | funds check.**  |          |
|         |            | availability   |                 |          |
|         |            | v              |                 |          |
|         |            | erification.** |                 |          |
+---------+------------+----------------+-----------------+----------+
| **FM    | **         | **Verification | **An agency is  | **       |
| 2.      | Sufficient | that there is  | responsible for | FME-02** |
| 3.5.2** | expired    | sufficient     | establishing a  |          |
|         | funding    | monies         | policy for      | **       |
|         | av         | available in   | administrative  | FME-03** |
|         | ailable?** | the            | control of      |          |
|         |            | Allo           | Funds.**        | **       |
|         |            | tments-Expired |                 | FME-04** |
|         |            | Authority      |                 |          |
|         |            | account to     |                 | **       |
|         |            | cover the      |                 | FME-10** |
|         |            | upward         |                 |          |
|         |            | adjustment to  |                 | **       |
|         |            | an existing    |                 | SMB-11** |
|         |            | obligation.**  |                 |          |
|         |            |                |                 | **       |
|         |            |                |                 | SMB-12** |
|         |            |                |                 |          |
|         |            |                |                 | **       |
|         |            |                |                 | SMB-13** |
|         |            |                |                 |          |
|         |            |                |                 | **       |
|         |            |                |                 | SMC-09** |
+---------+------------+----------------+-----------------+----------+
| **FM    | **Message  | **Electronic   | **Business Unit | **       |
| 2.      | to         | notification   | to be notified  | TLE-07** |
| 3.5.3** | preparer   | to document    | that funds are  |          |
|         | that funds | preparer that  | not available   | **       |
|         | are not    | there are      | and that the    | TLE-08** |
|         | available  | insufficient   | Funds Override  |          |
|         | for        | funds          | Official has    |          |
|         | accounting | available for  | been            |          |
|         | clas       | the account    | notified.**     |          |
|         | sification | distribution   |                 |          |
|         | line**     | line.**        |                 |          |
+---------+------------+----------------+-----------------+----------+
| > **FM  | **Research | **If funds are | **Designated    | **       |
| > 2.    | and        | not available, | personnel       | FMD-05** |
| 3.5.4** | Resolve    | the Business   | resolve         |          |
|         | Issues**   | Unit will      | applicable      | **       |
|         |            | research and   | issues in       | SMB-16** |
|         |            | resolve the    | accordance with |          |
|         |            | issue.**       | applicable      | **       |
|         |            |                | rules,          | SMC-09** |
|         |            |                | regulations,    |          |
|         |            |                | and agency      |          |
|         |            |                | guidelines.**   |          |
+---------+------------+----------------+-----------------+----------+
| **FM    | **Message  | **Electronic   | **As a part of  | **       |
| 2.      | to         | notification   | providing OMB   | TLE-07** |
| 3.5.5** | Override   | to the         | with the        |          |
|         | Official   | designated     | agency's Funds  | **       |
|         | for Failed | Funds Override | Control policy  | TLE-08** |
|         | Funds      | Official that  | and             |          |
|         | Check**    | there are      | regulations, an |          |
|         |            | insufficient   | appropriate     |          |
|         |            | funds          | individual is   |          |
|         |            | available for  | identified who  |          |
|         |            | the account    | is responsible  |          |
|         |            | distribution   | for any         |          |
|         |            | line.**        | obligation or   |          |
|         |            |                | expenditure     |          |
|         |            |                | exceeding the   |          |
|         |            |                | amount          |          |
|         |            |                | available in    |          |
|         |            |                | the             |          |
|         |            |                | appropriation   |          |
|         |            |                | or fund         |          |
|         |            |                | account, the    |          |
|         |            |                | OMB             |          |
|         |            |                | apportionment   |          |
|         |            |                | or              |          |
|         |            |                | r               |          |
|         |            |                | eapportionment, |          |
|         |            |                | the allotment   |          |
|         |            |                | or              |          |
|         |            |                | sub-allotments  |          |
|         |            |                | made by the     |          |
|         |            |                | agency, any     |          |
|         |            |                | statutory       |          |
|         |            |                | limitations,    |          |
|         |            |                | and any other   |          |
|         |            |                | administrative  |          |
|         |            |                | subdivision of  |          |
|         |            |                | funds made by   |          |
|         |            |                | the agency.**   |          |
|         |            |                |                 |          |
|         |            |                | **The agency    |          |
|         |            |                | must also       |          |
|         |            |                | provide         |          |
|         |            |                | procedures for  |          |
|         |            |                | dealing with    |          |
|         |            |                | violations of   |          |
|         |            |                | the             |          |
|         |            |                | Antideficiency  |          |
|         |            |                | Act as well as  |          |
|         |            |                | violations of   |          |
|         |            |                | other           |          |
|         |            |                | administrative  |          |
|         |            |                | subdivision of  |          |
|         |            |                | funds that are  |          |
|         |            |                | not violations  |          |
|         |            |                | of the          |          |
|         |            |                | Antideficiency  |          |
|         |            |                | Act.**          |          |
|         |            |                |                 |          |
|         |            |                | **See OMB       |          |
|         |            |                | Circular A-11,  |          |
|         |            |                | Appendix H -    |          |
|         |            |                | Checklist for   |          |
|         |            |                | Fund Control    |          |
|         |            |                | Regulations.**  |          |
+---------+------------+----------------+-----------------+----------+
| **FM    | **Agen     | **Process to   | **As a part of  | **       |
| 2.      | cy-defined | allow review   | providing OMB   | TLE-01** |
| 3.5.6** | process    | and, if        | with the        |          |
|         | for        | appropriate,   | agency's Funds  |          |
|         | override   | approval for   | Control policy  |          |
|         | approval** | the            | and             |          |
|         |            | transaction.   | regulations, an |          |
|         |            | This would     | appropriate     |          |
|         |            | occur under a  | individual is   |          |
|         |            | CR or other    | identified who  |          |
|         |            | circumstances  | is responsible  |          |
|         |            | where the      | for any         |          |
|         |            | Funds Override | obligation or   |          |
|         |            | Official is    | expenditure     |          |
|         |            | aware of       | exceeding the   |          |
|         |            | additional     | amount          |          |
|         |            | funding        | available in    |          |
|         |            | available to   | the             |          |
|         |            | cover the      | appropriation   |          |
|         |            | transaction    | or fund         |          |
|         |            | amount so as   | account, the    |          |
|         |            | not to put the | OMB             |          |
|         |            | TAFS into an   | apportionment   |          |
|         |            | Antideficiency | or              |          |
|         |            | condition.**   | r               |          |
|         |            |                | eapportionment, |          |
|         |            |                | the allotment   |          |
|         |            |                | or              |          |
|         |            |                | sub-allotments  |          |
|         |            |                | made by the     |          |
|         |            |                | agency, any     |          |
|         |            |                | statutory       |          |
|         |            |                | limitations,    |          |
|         |            |                | and any other   |          |
|         |            |                | administrative  |          |
|         |            |                | subdivision of  |          |
|         |            |                | funds made by   |          |
|         |            |                | the agency.**   |          |
|         |            |                |                 |          |
|         |            |                | **The agency    |          |
|         |            |                | must also       |          |
|         |            |                | provide         |          |
|         |            |                | procedures for  |          |
|         |            |                | dealing with    |          |
|         |            |                | violations of   |          |
|         |            |                | the             |          |
|         |            |                | Antideficiency  |          |
|         |            |                | Act as well as  |          |
|         |            |                | violations of   |          |
|         |            |                | other           |          |
|         |            |                | administrative  |          |
|         |            |                | subdivision of  |          |
|         |            |                | funds that are  |          |
|         |            |                | not violations  |          |
|         |            |                | of the          |          |
|         |            |                | Antideficiency  |          |
|         |            |                | Act**           |          |
|         |            |                |                 |          |
|         |            |                | **See OMB       |          |
|         |            |                | Circular A-11,  |          |
|         |            |                | Appendix H -    |          |
|         |            |                | Checklist for   |          |
|         |            |                | Fund Control    |          |
|         |            |                | Regulations**   |          |
+---------+------------+----------------+-----------------+----------+
| **FM    | **Override | **If override  | **The agency    | **       |
| 2.      | A          | approval has   | Funds Override  | SMB-18** |
| 3.5.7** | pproved?** | occurred, the  | Official must   |          |
|         |            | transaction    | ensure          |          |
|         |            | posts to the   | sufficient      |          |
|         |            | General        | applicable      |          |
|         |            | Ledger. If     | funding is      |          |
|         |            | override       | available prior |          |
|         |            | approval has   | to allowing the |          |
|         |            | not occurred,  | transaction to  |          |
|         |            | notification   | record to the   |          |
|         |            | is sent to the | General         |          |
|         |            | Business Unit  | Ledger.**       |          |
|         |            | and the        |                 |          |
|         |            | transaction is |                 |          |
|         |            | cancelled.**   |                 |          |
+---------+------------+----------------+-----------------+----------+
| **FM    | **Message  | **Electronic   | **Business Unit | **       |
| 2.      | to         | notification   | to be notified  | TLE-07** |
| 3.5.8** | preparer   | to document    | that funds are  |          |
|         | that       | preparer that  | not available   | **       |
|         | override   | override       | and that the    | TLE-08** |
|         | for        | approval was   | Funds Override  |          |
|         | funding is | not granted.** | Official has    |          |
|         | not        |                | not approved    |          |
|         | approved** |                | the override    |          |
|         |            |                | transaction.**  |          |
+---------+------------+----------------+-----------------+----------+
| **FM    | **T        | **The          | **The           | **       |
| 2.      | ransaction | transaction is | transaction is  | FME-02** |
| 3.5.9** | records in | recorded in    | recorded in the |          |
|         | General    | the General    | General Ledger. | **       |
|         | Le         | Ledger.**      | At the same     | FME-04** |
|         | dger/Funds |                | time, the       |          |
|         | Balance    |                | appropriate     | **       |
|         | updated**  |                | funds balances  | FME-08** |
|         |            |                | are also        |          |
|         |            |                | updated thereby | **       |
|         |            |                | keeping the     | FME-10** |
|         |            |                | balances in     |          |
|         |            |                | line with the   | **       |
|         |            |                | General         | FME-12** |
|         |            |                | Ledger.**       |          |
|         |            |                |                 | **       |
|         |            |                | **Examples      | GLB-01** |
|         |            |                | include, but    |          |
|         |            |                | are not limited | **       |
|         |            |                | to, the         | GLC-01** |
|         |            |                | following       |          |
|         |            |                | transaction     | **       |
|         |            |                | codes from the  | GLC-04** |
|         |            |                | current TFM:**  |          |
|         |            |                |                 | **       |
|         |            |                | **TFM-D126 To   | GLC-05** |
|         |            |                | record an       |          |
|         |            |                | upward          | **       |
|         |            |                | adjustment to   | GLC-06** |
|         |            |                | prior-year paid |          |
|         |            |                | delivered       | **       |
|         |            |                | orders.**       | GLD-01** |
|         |            |                |                 |          |
|         |            |                | **TFM-D106 To   | **       |
|         |            |                | record an       | GLD-02** |
|         |            |                | upward          |          |
|         |            |                | adjustment of   | **       |
|         |            |                | prior-year      | GLD-03** |
|         |            |                | unpaid          |          |
|         |            |                | delivered       | **       |
|         |            |                | orders and to   | GLD-04** |
|         |            |                | accrue          |          |
|         |            |                | additional      | **       |
|         |            |                | liability when  | GLD-05** |
|         |            |                | the adjustment  |          |
|         |            |                | is not recorded | **       |
|         |            |                | as a            | GLD-06** |
|         |            |                | prior-period    |          |
|         |            |                | adjustment      | **       |
|         |            |                | (USSGL account  | GLD-07** |
|         |            |                | 7400 or 7401).  |          |
|         |            |                | The authority   | **       |
|         |            |                | has expired.**  | SMC-02** |
+---------+------------+----------------+-----------------+----------+