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USNRC Regulation for the 

Administrative Control of Funds

Approved December 22, 1998

1. Purpose. The purpose of this regulation is to establish an administrative control of funds system 

as required by 31 U.S.C. 1514. The regulation prescribes procedures to be followed in the 

execution of the Nuclear Regulatory Commission (NRC) budget and describes basic funds control 

principles and concepts. This regulation:

a. Establishes policy with regard to the administrative control of funds.

b. Prescribes a system for positive administrative control of funds designed to restrict obligations 

and expenditures against each appropriation or fund account to amounts available. 

c. Enables the Chairman to determine responsibility for an overobligation and overdisbursement 

of an appropriation, statutory limitation, apportionment, reapportionment, allotment, and other 

administrative subdivisions, as well as violations of limitations imposed by NRC.

d. Provides procedures for dealing with violations of the Antideficiency Act, as well as 

administrative violations of limitations imposed by the agency, including reporting 

requirements.

2. Authority. These procedures and policies are issued pursuant to the following provisions of law 

and regulations pertaining to the administrative control of funds:

a. Title 31 of the United States Code (U.S.C.), AMoney and Finance,@

(1) Sections 1341-1342, 1349-1351, and 1511-1519 (portions of the Antideficiency Act, as 

amended).

(2) Sections 1101, 1104-1108, and 3324 (portions of the Budget and Accounting Act, 1921, as 

amended).

(3) Sections 1501-1502 (part of section 1311 of the Supplemental Appropriations Act of 1950).

(4) Sections 1112, 1531, 3511-3512, and 3524 (portions of the Budget and Accounting 

Procedures Act of 1950).
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b. Title X or Pub. L. No.93-344, found at 2 U.S.C. 681-688 (the Congressional Budget and 

Impoundment Control Act of 1974).

c. The Federal Managers= Financial Integrity Act of 1982, Pub. L. 97-255.

d. Office of Management and Budget (OMB) Circular No. A-34, Revised, AInstructions on 

Budget Execution,@ [guidance now found in OMB Circular No. A-11, APreparation, 

Submission, and Execution of the Budget.@ OMB Circular A-34 has been replaced by OMB 

Circular A-11] and related OMB guidelines.

e. NRC Management Directive and Handbook 4.2, AAdministrative Control of Funds.@

f. Other pertinent agency directives.

3. Applicability and Scope. The provisions of this regulation apply to all appropriations and funds 

controlled by NRC and must be followed by all NRC offices. The system of administrative control

of funds was approved by the Office of Management and Budget on December 22, 1998 as 

required by 31 U.S.C. 1514 and supersedes NRC=s regulation for the Administrative Control of

Funds approved on July 1, 1994.

4. Definitions, Terminology and Concepts. All definitions, terminology, and concepts in the OMB 

circular No. A-34, Revised, [guidance now found in OMB Circular A-11] apply. The following 

terms are defined:

a. Appropriation. Statutory authority that allows Federal agencies to incur obligations and to 

make payments out of the Treasury for specific purposes. An appropriation usually follows 

enactment of authorizing legislation.

b. Apportionment. A distribution made by OMB of amounts available for obligation in an 

appropriation or fund account into amounts available for specified time periods, activities, 

projects, objects or combinations thereof. The apportioned amount limits the obligations 

that may be incurred. 

c. Reapportionment. A revision approved by OMB of a previous apportionment for an 

appropriation or fund account. This approved revision would ordinarily cover the same 

period, project, or activity covered in the original apportionment.

d. Allotment. Authority delegated by the head or other authorized employee of the agency to 

agency employees to incur obligations within a specified amount, pursuant to OMB.
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apportionment or reapportionment action or other statutory authority making funds available 

for obligation.

e. Administrative Division or Subdivision of Funds. Any division or subdivision of an 

appropriation or fund by an official having administrative control over such appropriation or 

fund. 

f. Agency Limitation. For fund control purposes, an agency limitation is any administrative 

division or subdivision of funds made by agency officials that restricts the use of Federal 

government funds.

g. Advice of Allowance and Financial Plan (AAFP). The AAFP is a distribution of funds 

below the allotment level. The form is divided into two sections:

(1) Advice of Allowances. The advice of allowances provides authority from the 

allottee to the authorized allowance holder to incur obligations and make 

expenditures within specified amounts, pursuant to amounts allotted to the 

allottee.

(2) Financial Plan. The financial plan includes annual allocations of funds to 

allowance holders in accordance with the NRC Budget and legislation that 

authorizes and appropriates funding for the agency.

Each allowance holder is responsible for ensuring compliance with the funding limitations 

specified in the current AAFP. Exceeding AAFP restrictions does not necessarily result in a 

violation of the Antideficiency Act. Exceeding AAFP restrictions is a violation of NRC=s 

administrative control of funds policies and procedures. AAFPs are intended as a means of 

meeting operational needs rather than an apportionment control device. 

5. Responsibilities and Functions of Individuals.

a. The Chairman of the Nuclear Regulatory Commission is responsible for prescribing a 

system for the administrative control of funds available to the NRC consistent with 

accounting procedures prescribed under law.

b. The Chief Financial Officer (CFO) of the NRC is authorized and directed to discharge all 

financial management activities and functions, which includes the responsibility for the 

administrative control of the NRC=s funds. The CFO is the agency official responsible for:
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(1)Approving and submitting requests to OMB for apportionment and reapportionment of 

appropriated funds available to the NRC.

(2)Issuing allotments to the Director, Division of Planning, Budget and Analysis (DPBA)

[now Budget Director]. This includes ensuring that amounts allotted are within the 

amount apportioned by OMB or otherwise authorized by law.

(3)Investigating possible Antideficiency Act violations, as well as violations of 

agency limitations that are not violations of the Act. This includes ensuring that 

designated officials are charged with individual responsibility for any overobligation 

or any expenditure in excess of allotments and allowances.

c. The Director, DPBA [now Budget Director], is responsible for:

(1)Administering the NRC budget execution and resource management process.

(2)Maintaining a system of allowances to include designating officials to be responsible for 

subdivision of funds below the allotment level (allowances) and the control of 

obligations within the limitations specified therein.

(3)Issuing AAFPs to those officials who have been delegated authority to obligate and 

expend funds within the amounts specified on the AAFP.

(4)Reviewing AAFP change requests submitted by NRC allowance holders to assess the 

impacts of such requests on the approved NRC Budget and the reprogramming 

thresholds; and referring other proposed changes to the CFO along with appropriate 

recommendations for action.

(5)Maintaining record apportionments and allotments issued to ensure that the total of the 

allotments will not exceed amounts available or otherwise violate the terms of the 

approved apportionment.

(6)Assuming supervisory authority and fiduciary responsibility for allotments issued, 

including the legal responsibilities in accordance with the provisions of the 

Antideficiency Act to ensure that allotment limitations are not exceeded.

d. NRC Allowance Holders are responsible for:

(1)Restricting obligations to the cumulative amount of funds made available on
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AAFPs. This includes formally certifying that there are sufficient funds available

in the current AAFP to enter into obligations.

(2) Complying with Federal law to include provisions of the Antideficiency Act, and 

NRC funds control policies and procedures.

e. The Director, Division of Accounting and Finance (DAF) [now the Controller], is 

responsible for:

(1) Maintaining the agency accounting system for the administrative control of funds.

(2) Accounting for and reporting on the status of NRC funds.

6. Actions Prohibited.

a. General. Each obligation or expenditure which exceeds amounts available must be 

examined to determine responsibility for causing a fund violation. Actions which 

subsequently relieve the unfavorable financial condition do not negate the fact that violation 

has occurred.

b. Statutory Prohibitions. 

An officer or employee of the NRC may not:

(1)Make or authorize an expenditure from or create or authorize an obligation against an 

appropriation or fund in excess of the amount available in the account. 

(31 U.S.C. 1341(a))

(2)Involve the NRC in a contract or other obligation for the payment of money for any 

purpose in advance of appropriations made for such purpose, unless such contract or 

obligation is authorized by law. (31 U.S.C. 1341 (a))

(3)Accept voluntary services for the United States or employ personal services in excess of 

that authorized by law, except in cases of an emergency involving the safety of 

human life or the protection of property. As used above, the term Aemergencies 

involving the safety of human life or the protection of property@ does 
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not include ongoing, regular functions of the government, the suspension of which 

would not imminently threaten the safety of human life or the protection of 

property. (31 U.S.C. 1342)

(4)Authorize or create an obligation or make an expenditure in excess of an apportionment 

or reapportionment. This includes adjustments that cause obligations in expired 

accounts that have not been merged to exceed the apportionment for the year in 

which such obligations were incurred. (31 U.S.C. 1517 (a))

(5)Authorize or create an obligation or make an expenditure in excess of the amount 

permitted by the prescribed and approved agency fund control system. (31 U.S.C. 

1517 (a))

c. Overobligations or Overexpenditure of Other Administrative Subdivisions of Funds.

Incurring obligations or expenditures in excess of amounts specified on NRC AAFPs is a 

violation of NRC=s administrative control of funds regulations and is a violation of the 

Antideficiency Act only when it causes an overobligation or overexpenditure of an 

allotment, apportionment, or appropriation unless otherwise specified by law.

7. Penalties.

a. Statutory Penalties.

(1)The law provides that any officer or employee of the United States who violates the 

prohibition of sections 1341(a), 1342, or 1517(a) of the Title 31 of the United States 

Code shall be subject to appropriate administrative discipline. Administrative 

discipline may consist of a letter of reprimand or censure for the official personnel 

record of the officer or employee; an unsatisfactory performance rating; transfer to 

another position; a suspension from duty without pay; or a removal from office.

(2)Any person who knowingly and willfully violates these prohibitions shall be fined not 

more than $5,000, imprisoned for not more than 2 years, or both.

b. Penalties for Other Administrative Subdivisions of Funds.

Depending on the severity of the violation, disciplinary or performance-based action as
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described in paragraph 7.a.(1) above may be taken against allowance holders or other 

employees where amounts certified as available for obligation or expenditure exceed the 

amounts available in agency AAFPs. Should such actions cause an Antideficiency Act 

violation, paragraph 7.a.(1) shall apply.

8. Reporting Requirements. Any individual with knowledge of a possible violation of the 

Antideficiency Act, or of this regulation, has the responsibility for reporting the alleged violation 

to the CFO immediately upon discovery. The amount of an Antideficiency Act violation is not a 

factor in determining whether a report must be submitted. All violations much be reported. 

Specific instructions for reporting such violations are contained in Part II, Section 22, of OMB 

Circular A-34, Revised [guidance now found in section 145 of OMB Circular No. A-11].

a.The CFO is responsible for investigating possible violations, preparing a report, and 

recommending proper corrective action.

b. Initial reports on apparent violations must be forwarded to the CFO. The CFO is responsible 

for reporting such violations to the Chairman, directing the proper corrective action, and 

taking disciplinary steps where warranted.

c. The Chairman is responsible for reporting to the President, through the Director of OMB, and 

to the Congress all pertinent facts relating to the violation together with a statement of 

action taken, as required by Part II, Section 22, of OMB Circular No. A-34, Revised 

[guidance now found in section 145 of OMB Circular No. A-11].

d. Overobligations of AAFP line items, which do not cause an Antideficiency Act violation, 

shall be reported to the Director, DPBA [now Budget Director]. Such violations do not 

require external reporting to OMB, Congress, or the President.

9. Relationship of Accounting and Funds Control Systems. Part II, Section 21, of OMB Circular 

No A-34, Revised, [guidance now found in Section 150 of OMB Circular No A-11] specifies the 

criteria for an adequate system of administrative control of funds to comply with the requirements 

of the Antideficiency Act, as amended, and it provides that the funds control system be fully 

supported by the accounting system.

a. The NRC accounting system shall be designed to assist responsible officials in restricting 

obligations and expenditures to amounts available in the appropriation, apportionment, 

and allotment. The system shall provide timely disclosure of:
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(1) Total obligations and expenditures incurred to date, and total budgetary resources 

available for obligations with each apportionment, allotment, or other administrative 

subdivisions;

(2) Restrictions contained in appropriation acts or other statues, along with total obligations 

and expenditures incurred to date against such restrictions; status of estimated 

reimbursement, including order received, amounts earned , and amounts collected to 

date;

(3) The authorization or creation of obligations or expenditures that exceed apportionments 

and allotments.

b. The NRC accounting system should provide for a system of financial accounts and records 

necessary to assure that obligations and expenditures can be reconciled to amounts 

appropriated, apportioned, allotted, and allocated. Accounting reports should 

display cumulative obligations and remaining unobligated balance by appropriation and 

allotment, and cumulative obligations by budget activity and object class. The 

accounting reports shall be periodically reconciled with actual apportionment, allotment, 

and obligation documents and any other pertinent financial records.

c. Failure to record an obligation in the agency=s official accounting system, or delaying such a 

recording, cannot prevent a violation of the Antideficiency Act.

10. Apportionments. The Director, DPBA, [now Budget Director] is responsible for preparing 

requests for apportionments and reapportionments of NRC=s budgetary resources using Standard 

Form (SF) 132, AApportionment and Reapportionment Schedule,@ upon enactment of relevant 

appropriation acts and as often as necessary thereafter. The CFO will approve the SF 132 request 

and submit such requests to OMB for approval in accordance with Part III of OMB Circular No. 

A-34, Revised [guidance now found at section 121 of OMB Circular No. A-11]. The OMBapproved SF 132 constitutes the authority of obligate funds in accordance with provisions 

contained in the apportionment schedule. The amounts apportioned by OMB as indicated on the 

SF 132 are limitations on the amount made available for obligation pursuant to section 1512 of 

Title 31 U.S.C. NRC Management Directive and Handbook 4.2, AAdministrative Control of 

Funds,@ is the agency directive that covers apportionment of funds, supplemental appropriations, 

reprogramming and transfers between accounts. Specific requirements for apportionments and 

reapportionments are contained in Part III of OMB Circular No. A-34, Revised [guidance now 

found in section 145 of OMB Circular No. A-11].
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11. Allotments.

a.Function and Purpose. NRC funds shall be formally allotted as a means for establishing, 

within appropriation limitations established by Congress and funds apportioned by OMB, the 

amounts available for obligation and expenditure. The allotment shall be established and 

maintained in such a manner as to assure compliance with all limitations, including those of 

the Antideficiency Act, as amended. Only the CFO is authorized to approve changes to the 

allotment structure. 

b.Allotment Procedures. Allotments will be issued by the CFO to the agency allottee using 

formal document(s). At a minimum, the advice of allotments shall include:

(1) Amount available for obligation

(2) Funding Source (e.g. appropriation, reimbursement, etc.)

(3) Time period of availability

(4) Position title of allottee

(5) Other agency limitations

(6) Justification for changes in allotments. (In some cases, changes will cause the need for a 

reapportionment or reprogramming.)

There may be an instance where it is necessary to use a more rapid means of communication 

such as a telephone or E-mail.

c. Control Level. Allotments should be made at the highest practical level consistent with 

effective and efficient management and control. Amounts allotted may not exceed the 

amount apportioned by OMB or amounts appropriated by Congress. Allotments are 

subject to provisions of the Antideficiency Act.

d. Restrictions. Advice of allotments shall indicate such limitations as to amounts and 

purpose as may be necessary to ensure compliance with limitations as established in 

apportionments by OMB and under appropriations enacted by Congress.

(1) The sum of allotment amounts issued shall not exceed the apportionment or amount 

appropriated by Congress.

(2) Allotments or other administrative subdivisions shall be fixed in amounts and changed 

only when authorized by the authority who issued the subdivision initially.
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(3) Congressional restrictions contained in appropriation acts shall be covered.

(4) Allotments may include other administrative limitations as may be appropriate to give 

effect to budget determinations.

(5) Responsibility for obligations or expenditures against an allotment resulting from an 

unauthorized procurement or act rests with the person performing the unauthorized 

procurement or act.

12. Anticipated Amounts and Reimbursable Work.

a. Apportionments may include amounts of budgetary resources that are anticipated and 

others that arise from reimbursable work. The amount apportioned for any 

appropriation or fund account that includes anticipated amounts shall not be allotted 

unless there is a reasonable assurance that such items will be collected and deposited to 

the credit of the NRC appropriation or fund that incurred the obligation. This inclusion 

of anticipated amounts in determining the amounts available for apportionment does not 

authorize an agency to obligate or make expenditures in excess of the total amount 

available for obligation.

b. If the total availability of allotments includes estimated resources, the amounts must be 

adjusted from time to time for significant changes in these orders so that allotments and 

related allowances, obligations, and expenditures are restricted to the amounts which 

will actually be available. NRC officials receiving allotments and allowances containing 

reimbursements or anticipated amounts will maintain constant and careful oversight to 

ensure that anticipated appropriate fund adjustments shall be made and other appropriate 

action, including reapportionment shall be taken. The system and administrative control 

should, therefore, be designed to keep obligations and expenditures from exceeding 

apportionments and allotments, or from exceeding budgetary resources available for 

obligation, whichever is smaller. Specific requirements for anticipated amounts and 

reimbursable work are contained in Sections 11.2 and 21.4 of OMB Circular No. A-34, 

Revised [guidance now found in sections 20 and 121 of OMB Circular No. A-11.]

13. Deficiency Apportionments.

a. Apportionments that anticipate the need for deficiency appropriation of a supplemental 

appropriation und 31 U.S.C. 1515, will be specifically identified on the apportionment 

request (SF 132) and submitted to OMB for approval.

b. To qualify as a deficiency apportionment, the request must be required by:

(1) laws enacted subsequent to the transmittal to Congress of the annual budget for the year;

(2) emergencies involving human life, the protection of property, or the immediate welfare 
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of the individuals; or

 

(3) specific authorization by law.

c. The approval of a deficiency apportionment by OMB and its transmittal to Congress merely 

advises the Congress that funds appropriated to date are being obligated to a more rapid rate 

that previously anticipated. This notification does not guarantee that the Congress will 

approve any part of any associated supplemental requests and does not authorize the use of 

any amounts not yet provided.