# Presentation: 494318

## LAWRENCE BERKELEY NATIONAL LABORATORY

**DOE Direct Funds Control**
**Financial Network**
**May 22, 2003**
**Bridget Haverty**

## LAWRENCE BERKELEY NATIONAL LABORATORY

**Budget Authority (BA):**** **Authority provided by law to enter into obligations that will result in immediate or future outlays involving Government funds.

**Guidance:**** **Written documentation produced by the appropriate DOE Program Secretarial Office for the purpose of authorizing and controlling work performed By M&O (Management and Operating) contractors.

**Definitions:**

**Point:**

**Guidance is not money.** LBNL has an obligation to have Budget Authority in our AFP or Contract Modification before incurring expenses.

## LAWRENCE BERKELEY NATIONAL LABORATORY

**LBNL has legal and administrative obligations to ensure that we do not spend in excess of our Total Obligational Authority (GSO + BA):**

**Anti Deficiency Act of 1974 **
**DOE Directives**
**Contract 98**
**Appendix F**
**Good Business Practices**

## LAWRENCE BERKELEY NATIONAL LABORATORY

**“**Direct obligational authority allotments are legal funding limitations.  **If the direct obligational allotments are either exceeded or used for a purpose other than that intended by Congress, a legal violation may occur**.”
*DOE Accounting Handbook Chapter 2*

- “... except for costs which may be incurred by the University pursuant to Article XIX, Clause 1, "Term, Termination and Expiration," of this contract, or costs of claims allowable under the contract occurring after completion or termination and not released by the University at the time of financial settlement of the contract in accordance with Article VII, Clause 3, "Payments and Advances,“ of this contract, **payment by the Government under this contract on account of allowable costs shall not, in the aggregate, exceed the amount obligated with respect to this contract**.
*Contract 98 Article VII, CL. 2 (b)*

## LAWRENCE BERKELEY NATIONAL LABORATORY

- Severe penalties are provided for violating the Anti-Deficiency Act and DOE fund control limitations.  **In addition to any penalty or liability under law, a DOE officer or employee who authorizes or makes expenditures exceeding available funds is subject to administrative discipline,** including suspension from duty without pay or dismissal.  If convicted of knowingly and willfully violating legal limitations, the officer or employee is subject to fines or imprisonment, or both.
*Criminal Penalty* – An officer or employee of the United States Government who knowingly or willfully authorizes or makes expenditures in excess of available funds shall be fined not more than $5,000 or imprisoned for two years, or both.
*DOE Accounting Handbook Chapter 2*

## LAWRENCE BERKELEY NATIONAL LABORATORY

**Controlling our spending vs Total Obligational Authority is not an arbitrary rule.  It is a contractual, legal obligation of the Laboratory and it’s employees.**
**Further reading:**
- DOE Order 135.1 Budget Execution
- DOE Manual 135.1 Budget Execution
- DOE Accounting Handbook
- DOE-UC LBL Management Contract (Contract 98)
- Principles of Appropriation Law, Volumes I & II

## LAWRENCE BERKELEY NATIONAL LABORATORY

_**Bridge Funding**_
**Please note that Bridge Funding is not infinite**
**On ****DOE**** direct funded projects, Bridge Funding cannot be carried over Fiscal Year end**
**As of July 1****st**** 2003, no new Bridge Funding for ****DOE**** projects will be approved for FY2003 **

## LAWRENCE BERKELEY NATIONAL LABORATORY

**Month End Hard Close Financial Analysis Review:**

- Cost errors can occur. -The Hard Close gives us the opportunity to identify cost errors and make corrections against appropriate funding so that costs are not transmitted in error to DOE.
**The Hard Close is not optional.**  If you are not going to be available, make arrangements before the close.
- The Hard Close required your immediate resolution of identified issues.  This is not the appropriate time for lengthy discussion.