Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 i 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 ii 

Table of Contents

Table of Contents...................................................................................................................................ii

Table of Figures....................................................................................................................................iii

Listed Abbreviations.............................................................................................................................iv

Foreword................................................................................................................................................v

Chapter 1: Introduction To Funds Control............................................................................................1

1.1 Background...................................................................................................................1

1.2 Purpose and Scope of This Document ..........................................................................3

1.3 FMLoB Business Processes Within Context of Core Requirements............................5

Chapter 2: Funds Control Processes......................................................................................................6

2.1 Funds Control Appropriation and Apportionment........................................................8

2.2 Funds Control Allotment ............................................................................................11

2.3 Funds Control Sub-Allotment.....................................................................................14

2.4 Funds Control Commitment .......................................................................................17

2.5 Funds Control Obligation ...........................................................................................19

2.6 Funds Control Expenditures .......................................................................................23

2.7 Funds Control Disbursements.....................................................................................26

2.8 Funds Control Payroll Expense...................................................................................29

2.9 Funds Control Monitoring Controls............................................................................32

2.10 Cross Reference to A-11 and Title 31 .........................................................................36

Chapter 3: Payment Management Processes................................................................ 46

Chapter 4: Billing and A/R Processes 46

Chapter 5: Reporting Processes 46

Appendix A – FMLoB Vision and Business Approach.......................................................................46

Appendix B – FMLoB Controlled Vocabulary....................................................................................49

Appendix C – Financial Management Laws and Regulations.............................................................59

Appendix D - Contributors ..................................................................................................................68
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 iii 

Table of Figures

Figure 1: FMLoB Vision & Framework................................................................................................4

Figure 2: Functions That Must Be Supported by Core Financial Systems ..........................................5
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 iv 

Listed Abbreviations

BRM Business Reference Model

BFELoB Budget Formulation and Execution Line of Business

CFO Chief Financial Officer

CFR Code of Federal Regulations

CFS Core Financial System

CIO Chief Information Officer

COTR Contracting Officer’s Technical Representative

CPIC Capital Planning and Investment Control

FACTS II Federal Agencies’ Centralized Trial-Balance System II

FAR Federal Acquisition Regulation

FASAB Federal Accounting Standards Advisory Board

FBWT Fund Balance With Treasury

FC Funds Control

FEA Federal Enterprise Architecture

FEAF Federal Enterprise Architecture Framework 

FFMIA Federal Financial Management Improvement Act of 1996

FFMSR Federal Financial Management Systems Requirements

FISMA Federal Information Security Management Act of 2002

FMLoB Financial Management Line of Business

FSIO Financial Systems Integration Office

GAO Government Accountability Office

GPRA Government Performance and Results Act of 1993

IRM Information Resource Management

IT Information Technology

JFMIP Joint Financial Management Improvement Program

NIST National Institute of Standards and Technology

OFFM Office of Federal Financial Management (OMB)

OMB Office of Management and Budget

P.L. Public Law

PMA President’s Management Agenda

PPA Prompt Payment Act

SFFAC Statement of Federal Financial Accounting Concepts

SFFAS Statement of Federal Financial Accounting Standards

SGL Standard General Ledger (also USSGL - U.S. Standard General Ledger )

TAFS Treasury Appropriation Fund Symbol

TAS Treasury Account Symbol

TFM Treasury Financial Manual
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 v 

Foreword

The Financial Management Line of Business (FMLoB) is one of several Line of 

Business initiatives launched by the Office of Management and Budget (OMB) to 

improve the management of the Federal Government. The purpose of the FMLoB is to 

improve the cost, quality, and performance of Federal financial management systems 

by leveraging shared service solutions and implementing other government-wide 

reforms that foster efficiencies in Federal financial operations. A key component of the 

FMLoB is the development of standard business processes for core financial 

management functions.

The Funds Control standard business process is the first chapter in a series of standard 

business processes that support the objectives of the FMLoB. These standards will 

include the following:

• Sequenced activities for core business processes;

• Data elements and definitions related to these business processes (such as 

information contained on a purchase order, e.g., order number, item number, price 

per item, etc.);

• Relationships among the data elements as they exist in the actual business 

activities; and

• Business rules governing the process steps.

Subsequent chapters will include standard business processes for Payment 

Management, Receivables Management, Reports Management and Reimbursables.

OMB is the executive sponsor for the FMLoB initiative and, in conjunction with the Chief 

Financial Officer (CFO) Council’s Financial Systems Integration Office (FSIO) Oversight 

Transformation Team, provides oversight and guidance for the initiative. FSIO has 

direct responsibility for completing priority projects under FMLoB. This document was 

prepared by FSIO, as the managing partner of the FMLoB, in collaboration with Federal 

program agencies. Participants from both the public and private sector have

contributed to the development of the Standard Business Processes document. FSIO 

also manages:

1. Core financial systems requirements development, testing, and product certification;

2. Support to the Federal financial community by taking on special priority projects as 

determined by the OMB Controller, CFO Council, and the FSIO Executive Director; 

and 

3. Outreach through an annual financial management conference and other related 

activities.

For more information, visit the FSIO website at http://www.fsio.gov
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 1 

Chapter 1: Introduction To Standard Business 

Process

1.1 BACKGROUND

Improving financial performance across government is one of the President’s top 

management priorities. A key factor in the success of FMLoB is that Federal agencies 

implement financial management systems that produce timely, useful, and reliable 

information for decision making. Over the past few decades, the Federal Government 

increasingly has standardized the way it develops and implements its financial 

management systems. The Federal Government has committed significant resources 

to implement financial management systems that meet its information needs, and each 

successive effort has reduced the cost and improved the quality of agency financial 

systems. Agencies are continuing their efforts to comply with Federal financial 

management system requirements, applicable accounting standards, and information 

security requirements, as they develop systems that meet financial and program 

managers’ information needs.

The FMLoB initiative arose out of the need to further reduce the cost and risk of Federal 

financial system implementations. To meet these objectives and to ensure that systems 

continue to meet the information needs of the Federal Government, the FMLoB focuses 

on leveraging technology investments across government to assist in standardizing the 

underlying business processes of Federal agencies. The goals of the FMLoB are to:

1. Provide timely and accurate data for decision making.

2. Facilitate stronger internal controls that ensure integrity in accounting and other 

stewardship activities.

3. Reduce costs by providing a competitive alternative for agencies to acquire, 

develop, implement, and operate financial management systems through shared 

service solutions.

4. Standardize systems, business processes, and data elements.

5. Provide for seamless data exchange between and among Federal agencies by 

implementing a common language and structure for financial information and system 

interfaces.

Included in the FMLoB initiative is this project to establish standard business 

processes—uniform government-wide common business processes, rules, data 

components, and policies for core financial business processes. Establishing standard 

core financial business processes supports the overall premise of the FMLoB that

standardization will lead to efficiencies in Federal financial management and system 

design. This project to develop standards processes is required to ensure that the 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 2 

objectives of all financial management stakeholders are achieved in the most efficient 

manner possible.

The standard business processes described in this document adhere to the standards

established by the following organizations:

• The Office of Management and Budget,

• The Department of the Treasury, Financial Management Service, and

• The Federal Accounting Standards Advisory Board.

Many of these standards are referenced in the Federal Financial Management System 

Requirements (FFMSR). The FFMSR documents, available at FSIO’s website at 

http://www.fsio.gov, address the key provisions of Federal financial management laws, 

regulations, and central agency reporting requirements. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 3 

1.2 PURPOSE AND SCOPE OF THIS DOCUMENT

This document presents government-wide common business rules, data components, 

and policies for core financial business processes. Standardized business processes 

across the Federal Government identify opportunities to simplify processes and unify 

work across the agencies and within the Financial Management Line of Business 

(FMLoB) of the Federal Government. The outcome will be a more citizen-centered, 

customer-focused government that maximizes technology investments to better achieve 

mission outcomes. 

When complete, the Standard Business Processes will include:

• Sequenced activities for core business processes

• Data elements and definitions related to these business processes (e.g., information 

contained on a purchase order - order number, item number, price per item)

• Relationships among the data elements as they exist in the actual business activities

• Business rules governing the process steps.

The Standard Business Processes document is intended for use by the Federal 

financial management community to provide guidance for implementing efficient 

business processes that are consistent throughout the federal government. Primary 

users will include accountants, budget analysts, financial and program staff, contractors,

and software vendors who support financial management system implementations.

This document supports the FMLoB vision as part of the standardization foundation, as 

highlighted in the following diagram.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 4 

Figure 1: FMLoB Vision & Framework

The subsequent chapters in this document describe the business process flows for core 

financial business processes, the associated business rules, and the posting models for 

the process described. Each chapter also provides the data elements and the 

relationship of those data elements to the business process flows. 

Appendices include the FMLoB vision and approach to developing Standard Business 

Processes, a “controlled vocabulary” of standard terms and definitions used in this 

document, a list of relevant laws and regulations affecting Federal financial 

management and standard business processes, and acknowledgement of those who 

contributed to this document.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 5 

1.3 FMLOB BUSINESS PROCESSES WITHIN CONTEXT 

OF CORE REQUIREMENTS

The FFMSR Core Financial Management Requirements document (available at 

http://www.fsio.gov) details seven functions that must be supported in all core Federal 

financial management systems, as shown in the following figure. Each function 

contains several processes. For example, Funds Control is one of the six processes of 

the Budgetary Resource Management function.1

Implementation of standard business processes may lead to revisions to the Core 

Financial Management Requirements document and eventually incorporated into core 

Federal financial management systems.

 

External System Interfaces System 

Management

Payment

Management

Budgetary Resource 

Management

Receivable

Management

Cost

Management

General Ledger

Management

FBWT

Management

System Interfaces

Figure 2: Functions That Must Be Supported by Core Financial Systems

 

1 The remaining processes under Budgetary Resource Management are (1) Budget Planning, (2) Budget Preparation, 

(3) Budget Authority, (4) Funds Distribution, and (5) Funds Status.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 6 

Chapter 2: Funds Control Processes

This chapter addresses standardization requirements for the Funds Control (FC) 

process. A strong Funds Control process ensures that Federal dollars are managed 

properly in day-to-day operations and provides an acceptable level of accountability. 

The Funds Control processes provide safeguards that prevent the distribution, 

obligation, and expenditure of funds in excess of conventional budgetary limitations as 

established through the funds formulation and execution process. Specifically, these

processes:

• Verify availability of allotted funds for commitment.

• Verify availability of commitments & allotted funds for obligations.

• Verify availability of obligation & allotted funds for expenditure.

• Verify availability of obligation & allotted funds for payment.

The Funds Control processes described in this chapter are intended to assist agencies 

in complying with all applicable financial management statutes, regulations, and 

requirements. Funds Control is primarily addressed by the Ant-deficiency Act, which 

prohibits Federal expenditures in excess of appropriation, and guidance issued by the 

Office of Management and Budget, the Department of the Treasury, and the Federal 

Accounting Standards Advisory Board. In addition, the steps outlined in this document 

provide a roadmap for ensuring an effective Funds Control process within an agency.

This chapter focuses on an agency’s Funds Control process after the funds have been 

provided to the agency. Once the funds have been released to the agency for 

spending, the agency may further subdivide the funds into allotments and suballotments to facilitate better management of the funds. 

The following pages contain the flowcharts and process steps for the Funds Control 

processes listed below. The left sides of the flowcharts present the actual financial 

event/activity; the right sides present the Funds Control associated with each financial 

event/activity. After the flowcharts and process steps, Table 2.10 (Cross Reference to 

A-11 and Title 31) cross-references each Funds Control process step to the 

requirements of the Anti-deficiency Act and OMB Circular A-11 and Title 31, United 

States Code, Money and Finance.

Funds Control Sub-Processes

• 2.1 Funds Control Appropriation and Apportionment

• 2.2 Funds Control Allotment

• 2.3 Funds Control Sub-Allotment

• 2.4 Funds Control Commitment

• 2.5 Funds Control Obligation
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 7 

• 2.6 Funds Control Expenditures or Cost

• 2.7 Funds Control Disbursement

• 2.8 Funds Control Payroll Expense

• 2.9 Funds Control Monitoring Controls
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 8 

2.1 FUNDS CONTROL APPROPRIATION AND 

APPORTIONMENT

The following flowchart provides the steps performed when controlling funds are appropriated and

apportioned:

Funds Control (FC) 2.1 Funds Control Appropriation and Apportionment

Funds Control Funds Control Financial Event / Activity Financial Event / Activity

SGL Accounts 49xx <= 48xx 

and 4610

Yes

No

Yes

No

Yes

No

Yes

No

FC 2.1.4

Agency Prepares 

Apportionment 

Requests

FC 2.1.15

Manual 

Apportionment

FC 2.1.12

Research & 

Resolve

FC 2.1.1

Law Enacted

FC 2.1.3

Anticipated 

Resources

FC 2.1.14

Automatic 

Apportionment

?

FC 2.1.14

Automatic 

Apportionment

?

FC 2.1.8

Agency Submits 

Apportionment to 

OMB

FC 2.1.13

Record Approved 

Apportionment in 

System

FC 2.1.2

Unobligated

Carryover

Funding

FC 2.1.5

Verify 

Appropriation, 

Carryover, 

Anticipated to 

Apportionments 

FC 2.1.6

Appropriation, 

Carryover, 

Anticipated 

 > =

Apportionment

?

FC 2.1.6

Appropriation, 

Carryover, 

Anticipated 

 > =

Apportionment

?

FC 2.1.10

Verify 

Appropriation, 

Carryover, 

Anticipated to 

Approved 

Apportionments

FC 2.1.19

Research & 

Resolve

FC 2.1.9

Agency Receives 

OMB Signed 

Apportionment

FC 2.1.7

Research & 

Resolve

FC 2.1.16

Prepare Internal 

Apportionment 

Request

FC 

2.1.20

FC 2.1.11

Appropriation

 > =

Apportionment

?

FC 2.1.11

Appropriation

 > =

Apportionment

?

FC 2.1.17

Verify Approved 

Apportionment to 

Amount Recorded 

in System

FC 2.1.18

Approved 

Apportionment 

Amount Correct

?

FC 2.1.18

Approved 

Apportionment 

Amount Correct

?

FC 2.1.3.1

Continuing 

Resolution

SGL Accounts 

4119 >= 4510
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 9 

The Funds Control Appropriation and Apportionment process steps are described as follows:

Step ID Step Name Step Description

FC 2.1.1 Law Enacted The enacted law may include language for 

Appropriation, rescissions, reductions, transfers, 

re-apportionment requests, and/or continuing 

resolutions.

FC 2.1.2 Un-obligated Carryover 

Funding

Un-obligated funds are carried over for use in 

multi- and no-year funds.

FC 2.1.3 Anticipated Resources Resources anticipated include revenues planned to 

be earned.

FC 2.1.3.1 Continuing Resolution Legislation in the form of a joint resolution 

enacted by Congress, when the new fiscal year is 

about to begin or has begun, to provide budget 

authority for Federal agencies and programs to 

continue in operation until the regular 

Appropriation acts are enacted.

FC 2.1.4 Agency Prepares 

Apportionment Request

The agency prepares an apportionment request.

FC 2.1.5 Verify Appropriated, Carryover, 

and/or Anticipated Amount to 

Apportionment

The agency compares appropriated, carryover, 

and/or anticipated amount against the amount 

documented in the apportionment request.

FC 2.1.6 Appropriated, Carryover, and/or 

Anticipated Amount

> =

Apportionment

The apportionment amount cannot exceed the 

amount appropriated, carried over, and/or 

anticipated. If the amount apportioned exceeds the 

appropriation, go to step FC 2.1.7. If the amount 

apportioned is less than or equal to the 

appropriation, go to step FC 2.1.8. This control 

will prevent an apportionment from exceeding the 

appropriation.

FC 2.1.7 Research & Resolve The agency researches the amount of the 

apportionment that exceeds the appropriation; it 

resolves the issue by ensuring that the 

apportionment is less than or equal to the 

appropriation.

FC 2.1.8 Agency Submits Apportionment 

to OMB

The agency submits the apportionment request to 

OMB.

FC 2.1.9 Agency Receives OMB Signed 

Apportionment

The agency receives the apportionment signed by 

OMB.

FC 2.1.10 Verify Appropriation to 

Approved Apportionment

The agency compares the amount appropriated 

against the amount provided on the approved 

apportionment.

FC 2.1.11 Appropriation

> =

Apportionment

The apportionment amount cannot exceed the 

amount appropriated. If the amount apportioned 

exceeds the appropriation, go to step FC 2.1.12. If 

the amount apportioned is less than or equal to the 

appropriation, go to step FC 2.1.13. This control 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 10 

Step ID Step Name Step Description

will prevent an approved apportionment from 

exceeding the appropriation.

FC 2.1.12 Research & Resolve The agency researches and resolves the excess 

amount of the apportionment.

FC 2.1.13 Record Approved 

Apportionment in System

The agency records the approved apportionment in 

the system, including automatically approved

Apportionment. The system must capture 

information necessary to perform funds checks. 

FC 2.1.14 Automatic Apportionment The apportionment amount can be predetermined 

and automatically generated. If the apportionment 

is not automatically generated, go to step FC 

2.1.15. If the amount apportioned is automatically 

generated, go to step FC 2.1.16. 

FC 2.1.15 Manual Apportionment Manually calculated apportionment request 

process.

FC 2.1.16 Prepare Internal Apportionment 

Request

The agency prepares an internal apportionment 

request based on the predetermined 

apportionment.

FC 2.1.17 Verify Approved 

Apportionment to Amount 

Recorded in Core Financial 

System

The agency compares the amount recorded in the 

system for the apportionment against the amount 

provided on the approved apportionment.

FC 2.1.18 Approved Apportionment 

Amount Correct

The apportionment amount in the system must 

match the amount on the apportionment. If the 

amount in the system does not match the amount 

apportioned, go to step FC 2.1.19. If the amount 

in the system matches the amount apportioned, go 

to step FC 2.1.20. This control will prevent 

approved apportionment amount from differing 

from the amount in the system.

FC 2.1.19 Research & Resolve The agency researches and resolves the amount in 

the system that does not match the apportionment.

FC 2.1.20 Continued to Step 2.1 Continued to Step 2.1
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 11 

2.2 FUNDS CONTROL ALLOTMENT

The following flowchart provides the steps performed when controlling funds are 

allotted:

FC 2.2 Funds Control Allotment

Funds Control Funds Control Financial Event / Activity Financial Event / Activity

FC 

2.1.20

No

Yes

FC 2.2.3

Apportionment

In System >=

Allotment

?

FC 2.2.3

Apportionment

In System >=

Allotment

?

FC 2.2.4

Research & 

Resolve

FC 2.2.2

Verify Approved 

Apportionment in 

System to 

Allotment

FC 2.2.5

Approve Allotment

FC 2.2.1

Prepare Allotment

No

FC 2.2.8

Research & 

Resolve

FC 2.2.6

Verify Approved 

Allotment to 

Prepared 

Allotment

FC 2.2.7

Approved

Allotment

Correct

?

FC 2.2.7

Approved

Allotment

Correct

?

Yes

No

Yes

FC 2.2.12

Research & 

Resolve

FC 2.2.10

Verify Approved 

Allotment to 

Amount Recorded 

in System

FC 2.2.9

Record Allotment 

in System

FC 2.2.11

Approved

Allotment

>= Allotment in 

System

?

FC 2.2.11

Approved

Allotment

>= Allotment in 

System

?

FC 

2.2.13

SGL 4510 >= 

SGL 4610

FC 2.2.2.1

Verify Approved 

Apportionment to 

Draft Operating 

Plan
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 12 

The Funds Control Allotment process steps are described as follows:

Step ID Step Name Step Description

FC 2.2.1 Prepare Allotment The agency prepares an allotment.

FC 2.2.2 Verify Approved Apportionment 

in System to Allotment

The agency compares the allotment in the 

system against the amount documented in the 

approved apportionment.

FC 2.2.2.1 Verify Approved Apportionment 

to Draft Operating Plan

After receiving the approved apportionment 

from OMB, the agency verifies the 

apportionment against its Draft Operating Plan 

to ensure that the plan does not exceed the 

approved apportionment.

FC 2.2.3 Apportionment

In System >=

Allotment

The allotment amount cannot exceed the 

amount apportioned. If the amount allotted 

exceeds the apportionment, go to step FC 2.2.4. 

If the amount allotted is less than or equal to the 

apportionment, go to step FC 2.2.5. This 

control will prevent the allotment from 

exceeding the apportionment.

FC 2.2.4 Research & Resolve The agency researches and resolves the excess 

amount of the allotment.

FC 2.2.5 Approve Allotment The agency approves the allotment.

FC 2.2.6 Verify Approved Allotment to 

Prepared Allotment

The agency compares the amount on the 

prepared allotment against the amount provided 

on the approved allotment.

FC 2.2.7 Approved Allotment

Correct

The approved allotment amount must match the 

prepared allotment. If the amount on the 

approved allotment exceeds the prepared 

allotment, go to step FC 2.2.8. If the amount on 

the approved allotment matches the amount on 

the prepared allotment, go to step FC 2.2.9. 

This control will prevent the allotment from 

differing from the approved allotment.

FC 2.2.8 Research & Resolve The agency researches and resolves the amount 

that does not match between the prepared and 

approved allotment.

FC 2.2.9 Record Allotment in System The agency records the approved allotment in 

the system. The system must capture 

information necessary to check for available 

funds.

FC 2.2.10 Verify Approved Allotment to 

Amount Recorded in System

The agency compares the amount recorded in 

the system for the allotment against the amount 

provided on the approved allotment.

FC 2.2.11 Approved

Allotment

>= Allotment in System

The allotment amount in the system must match 

the amount on the approved allotment. If the 

amount in the system does not match the 

amount approved, go to step FC 2.2.12. If the 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 13 

Step ID Step Name Step Description

amount in the system matches the amount 

approved, go to step FC 2.2.13. This control 

will prevent the allotment in the system from 

exceeding the approved allotment.

FC 2.2.12 Research & Resolve The agency researches and resolves the amount 

in the system that does not match the approved 

allotment.

FC 2.2.13 Funds Control Sub-Allotment This step initiates funds control sub-allotment 

or allowance; see 2.3., Funds Control SubAllotment
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 14 

2.3 FUNDS CONTROL SUB-ALLOTMENT

The following flowchart provides the steps performed when controlling funds are sub-allotted:

FC 2.3 Funds Control Sub-Allotment or Allowance

Funds Control Funds Control Financial Event Activity Financial Event Activity

FC 

2.2.13

No

Yes

No

Yes

No

Yes

FC 2.3.12

Research & 

Resolve

FC 2.3.10

Verify Approved 

Sub-Allotment or 

Allowance to 

Amount Recorded 

in System

FC 2.3.2

Verify Approved 

Allotment in 

System to SubAllotment or 

Allowance

FC 2.3.8

Research & 

Resolve

FC 2.3.7

Approved

Sub-Allotment or 

Allowance

Correct

?

FC 2.3.7

Approved

Sub-Allotment or 

Allowance

Correct

?

FC 2.3.1

Prepare SubAllotment or 

Allowance

FC 2.3.5

Approve SubAllotment or 

Allowance

FC 2.3.11

Approved

Sub-Allotment or Allowance

>= Sub-Allotment or 

Allowance in System

?

FC 2.3.11

Approved

Sub-Allotment or Allowance

>= Sub-Allotment or 

Allowance in System

?

FC 2.3.9

Record SubAllotment or 

Allowance in 

System

FC 2.3.6

Verify Approved SubAllotment or Allowance 

to Prepared SubAllotment or Allowance

FC 2.3.3

Allotment

In System >=

Sub-Allotment or 

Allowance

?

FC 2.3.3

Allotment

In System >=

Sub-Allotment or 

Allowance

?

FC 2.3.4

Research & 

Resolve

FC 

2.3.13

SGL 4610 >= SGL 

4610.xx
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 15 

The Funds Control Sub-Allotment process steps are described as follows:

Step ID Step Name Step Description

FC 2.3.1 Prepare Sub-Allotment or 

Allowance

The agency prepares a sub-allotment or 

allowance. The agency has the option to further 

subdivide the funds for control purposes.

FC 2.3.2 Verify Approved Allotment in 

System to Sub-Allotment or 

Allowance

The agency compares the sub-allotment or 

allowance in the system against the amount 

documented in the approved allotment.

FC 2.3.3 Allotment

In System >=

Sub-Allotment or Allowance

The sub-allotment or allowance amount cannot 

exceed the amount allotted. If the amount suballotted exceeds the allotment, go to step FC 

2.3.4. If the amount sub-allotted is less than or 

equal to the allotment go to step FC 2.3.5. This 

control will prevent the sub-allotment or 

allowance from exceeding the allotment in the 

system.

FC 2.3.4 Research & Resolve The agency researches and resolves the excess 

amount of the sub-allotment or allowance.

FC 2.3.5 Approve Sub-Allotment or 

Allowance

The agency approves the sub-allotment or 

allowance.

FC 2.3.6 Verify Approved Sub-Allotment or 

Allowance to Prepared SubAllotment or Allowance

The agency compares the amount on the 

prepared sub-allotment or allowance against the 

amount provided on the approved sub-allotment 

or allowance.

FC 2.3.7 Verify approved Sub-Allotment or 

Allowance Correct

The approved sub-allotment or allowance 

amount must match the prepared sub-allotment 

or allowance. If the amount on the approved 

sub-allotment or allowance exceeds the 

prepared sub-allotment or allowance, go to step 

FC 2.3.8. If the amount on the approved suballotment or allowance matches the amount on 

the prepared sub-allotment or allowance, go to 

step FC 2.3.9. This control will prevent the 

sub-allotment or allowance from differing from 

the approved sub-allotment or allowance.

FC 2.3.8 Research & Resolve The agency researches and resolves the amount 

that does not match between the prepared and 

approved sub-allotment or allowance.

FC 2.3.9 Record Sub-Allotment or 

Allowance in System

The agency records the approved sub-allotment 

or allowance in the system. The system must 

capture information necessary to perform funds 

checks.

FC 2.3.10 Verify Approved Sub-Allotment 

or Allowance to Amount Recorded 

The agency compares the amount recorded in

the system for the sub-allotment or allowance 

against the amount provided on the approved 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 16 

Step ID Step Name Step Description

in System sub-allotment or allowance.

FC 2.3.11 Approved Sub-Allotment or 

Allowance

>= Sub-Allotment or Allowance in 

System

The sub-allotment or allowance amount in the 

system must match the amount on the approved 

sub-allotment or allowance. If the amount in 

the system does not match the amount 

approved, go to step FC 2.3.12. If the amount 

in the system matches the amount approved, go 

to step FC 2.3.13. This control will prevent the 

sub-allotment or allowance in the system from 

exceeding the approved sub-allotment or 

allowance.

FC 2.3.12 Research & Resolve The agency researches and resolves the amount 

in the system that does not match the approved 

sub-allotment or allowance.

FC 2.3.13 Execute Funds This step initiates the ability to execute funds; 

see 2.4, Funds Control Commitment.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 17 

2.4 FUNDS CONTROL COMMITMENT

The following flowchart provides the steps performed when controlling funds are committed:

FC 2.4 Funds Control Commitment

Funds Control Funds Control Financial Event / Activity Financial Event / Activity

FC 

2.3.13

No

Yes

FC 2.4.1

Receive Request 

to Commit Funds

FC 2.4.2

Determine Status 

of Funds

FC 2.4.4

Research & 

Resolve

FC 2.4.3

Fund

Unexpired?

FC 2.4.3

Fund

Unexpired?

FC 2.4.6

Commitment

<=

Sub-Allotment or 

Allowance

?

FC 2.4.6

Commitment

<=

Sub-Allotment or 

Allowance

?

FC 2.4.5

Verify 

Commitment 

Amount against

Available

Sub-Allotment or 

Allowance

FC 2.4.7

Research & 

Resolve 

No

Yes

FC 2.4.8

Record 

Commitment in 

System

SGL 4700 <= 

SGL 4610

FC 2.4.6.1

Verify Other Pertinent 

Accounting 

Information 

FC 2.4.6.1

Verify Other Pertinent 

Accounting 

Information 

Yes
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 18 

The Funds Control Commitment process steps are described below:

Step ID Step Name Step Description

FC 2.4.1 Receive Request to Commit Funds An authorized official requests funds.

FC 2.4.2 Determine Status of Funds The agency verifies that the funds are available 

for commitment, as well as when funds are 

anticipated. Funds cannot be committed if an 

agreement is not in place.

FC 2.4.3 Funds

Unexpired

The funds cannot be expired or cancelled. If 

the funds are expired or cancelled, go to step

FC 2.4.4. If the funds are unexpired, go to step 

FC 2.4.5. This control will prevent a 

commitment from being processed against 

expired or cancelled funds. The control will 

allow a commitment to be processed only 

against unexpired funds.

FC 2.4.4 Research & Resolve The agency researches and resolves the proper 

use of the funds for the commitment.

FC 2.4.5 Verify Commitment Amount 

against Available

Sub-Allotment or Allowance

The agency compares the commitment against 

the amount available in the sub-allotment or 

allowance.

FC 2.4.6 Commitment

<=

Sub-Allotment or Allowance

The commitment amount cannot exceed the 

amount sub-allotted. If the amount committed 

exceeds the sub-allotment or allowance, go to 

step FC 2.4.7. If the amount committed is less 

than or equal to the sub-allotment or allowance, 

go to step FC 2.4.8. This control will prevent a 

commitment from being processed in excess of 

the sub-allotment or allowance.

FC 2.4.6.1 Verify Other Pertinent Accounting 

Information 

Verify other pertinent accounting information 

on the commitment prior to commitment in the 

Core Financial System (e.g., proper accounting 

codes for location, type of expenditure, etc).

FC 2.4.7 Research & Resolve The agency researches and resolves the excess 

amount of the commitment via a 

Reprogramming Action, which requires certain 

approvals in advance to shift funds from one 

account to another to cover the commitment.

FC 2.4.8 Record Commitment in System The agency records the commitment in the 

system. The system must capture information 

necessary to perform funds checks.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 19 

2.5 FUNDS CONTROL OBLIGATION

The following flowchart provides the steps performed when controlling funds are obligated:

FC 2.5 Funds Control Obligation

Funds Control Funds Control Financial Event / Activity Financial Event / Activity

No

FC 2.5.2

Determine Status 

of Appropriation 

and Apportionment

FC 2.5.3

Appropriation 

Enacted and

Apportionment

Signed by

OMB?

FC 2.5.3

Appropriation 

Enacted and

Apportionment

Signed by

OMB?

FC 2.5.4

Research & 

Resolve

FC 2.5.1

Receive Request 

to Obligate Funds

Yes

FC 2.5.12

Verify Status of 

Obligations

FC 2.5.9

Fund

Unexpired?

FC 2.5.9

Fund

Unexpired?

FC 2.5.8

Determine Status 

of Funds

FC 2.5.7

Research & 

Resolve

FC 2.5.17

Research & 

Resolve

FC 2.5.16

Obligation

<=

Commitment/

Sub-Allotment or 

Allowance

?

FC 2.5.16

Obligation

<=

Commitment/

Sub-Allotment or 

Allowance

?

FC 2.5.15

Verify Obligation 

Amount against

Available

Commitment/

Sub-Allotment or 

Allowance

FC 2.5.18

Record Obligation 

in System

Yes

FC 2.5.6

Recorded 

Obligation?

FC 2.5.6

Recorded 

Obligation?

FC 2.5.5

Verify Against 

Obligations

No

Yes

FC 2.5.11

Research & 

Resolve

Yes

No

FC 2.5.13

Obligation is 

Available

?

FC 2.5.13

Obligation is 

Available

?

No

No

Yes

FC 2.5.10

Fund

Expired?

FC 2.5.10

Fund

Expired?

FC 2.5.14

Research & 

Resolve

Yes

No

SGL 48xx <= SGL 4700 

and SGL 4610

No

FC 2.5.16.1

Submit document 

to COTR

Yes
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 20 

The Funds Control Obligation process steps are described below:

Step ID Step Name Step Description

FC 2.5.1 Receive Request to Obligate Funds An official requests the obligation of funds.

FC 2.5.2 Determine Status of Appropriation 

and Apportionment

The agency verifies that the funds are available 

for obligation.

FC 2.5.3 Appropriation Enacted and

Apportionment Signed by

OMB

The funds must be appropriated and the 

apportionment signed by OMB. If the 

appropriation is not enacted or the 

apportionment is not signed by OMB, go to step 

FC 2.5.4. If the appropriation is enacted and 

the apportionment signed by OMB, go to step 

FC 2.5.5. This control will prevent an 

obligation from occurring when the 

appropriation has not been enacted or the 

apportionment signed by OMB.

FC 2.5.4 Research & Resolve The agency researches and resolves the status of 

the appropriation or apportionment.

FC 2.5.5 Verify Against Obligations The agency reviews the obligation against 

obligations recorded and un-recorded

(Unrecorded obligations are obligations that 

were incurred legitimately during the period of 

funds availability, but were not recorded in the 

component’s records prior to expiration of the 

appropriation or fund.)

FC 2.5.6 Confirm Obligation Recorded All obligations should be recorded in the 

system. If the obligation has been made but not 

recorded, go to step FC 2.5.7. If the obligation 

has been recorded, go to step FC 2.5.8. This 

control will prevent an obligation from

occurring that is not recorded in the system.

FC 2.5.7 Research & Resolve The agency researches and resolves the 

adjustment of an existing obligation.

FC 2.5.8 Determine Status of Funds The agency verifies that the funds are available 

for obligation.

FC 2.5.9 Funds Unexpired The funds cannot be expired for a new 

obligation. If the funds are expired or 

cancelled, go to step FC 2.5.10. If the funds are

unexpired, go to step FC 2.5.15. This control 

will prevent a new obligation from being 

processed against expired or cancelled funds. 

The control will allow a new obligation to be 

processed only against unexpired funds.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 21 

Step ID Step Name Step Description

FC 2.5.10 Funds Expired The funds cannot be expired. If the funds are

expired, go to step FC 2.5.11. If the funds are

expired, go to step FC 2.5.12. This control will 

prevent an obligation from being processed 

against expired funds. The control will allow 

an obligation to be processed against expired 

funds only when there is an existing obligation 

that can be modified.

FC 2.5.11 Research & Resolve The agency researches and resolves a solution 

for processing the obligation against the proper 

funding source. There may be situations in 

which a financial event occurred before 

completion of a funds check. For example, a 

contract may have been signed indicating a use 

of expired funds. Expired funds may not be 

used for new obligations.

FC 2.5.12 Verify Status of Obligation The agency verifies that an existing obligation 

may be modified. This includes when funds are 

anticipated. Funds cannot be obligated if an 

agreement is not in place.

FC 2.5.13 Obligation Is Available The obligation must be available for increase. 

If the obligation is not available, go to step FC 

2.5.14. If the obligation is available, go to step 

FC 2.5.15. This control will prevent increases 

in obligations where they do not already exist. 

FC 2.5.14 Research & Resolve The agency researches and resolves the proper 

use of the funds for the obligation, especially 

when an obligation has been made against 

expired or cancelled funds.

FC 2.5.15 Verify Obligation Amount Against

Available

Commitment/Sub-Allotment or 

Allowance

The agency compares the obligation against the 

amount available in the commitment or suballotment or allowance.

FC 2.5.16 Obligation

<=

Commitment/

Sub-Allotment or Allowance

The obligation amount cannot exceed the 

amount committed or sub-allotted. If the 

amount obligated exceeds the commitment or 

sub-allotment or allowance, go to step FC 

2.5.17. If the amount obligated is less than or 

equal to the commitment or sub-allotment or 

allowance, go to FC 2.6.16.1 and submit 

documentation to the Contracting Officer’s 

Technical Representative (COTR), then go to 

step FC 2.5.18. This control will prevent an 

obligation from being processed in excess of the 

commitment /sub-allotment or allowance.

FC 2.5.16.1 Submit document to COTR Submit document to COTR for approval.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 22 

Step ID Step Name Step Description

FC 2.5.17 Research & Resolve The agency researches and resolves any 

obligation amount that exceeds the amount 

committed or sub-allotted. 

FC 2.5.18 Record Obligation in System The agency records the obligation in the 

system. The system must capture information 

necessary to perform funds checks.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 23 

2.6 FUNDS CONTROL EXPENDITURES

The following flowchart provides the steps performed when controlling funds are expended.

FC 2.6 Funds Control Expenditures or Cost

Funds Control Funds Control Financial Event / Activity Financial Event / Activity

No

Yes

Yes

No

Yes

Yes

No

FC 2.6.2

Determine Status 

of Appropriation 

and Apportionment

FC 2.6.1

Receive Request 

to Expend or Cost 

Funds

FC 2.6.16

Expenditure or Cost

<=

Obligation/

Sub-Allotment or 

Allowance

?

FC 2.6.16

Expenditure or Cost

<=

Obligation/

Sub-Allotment or 

Allowance

?

FC 2.6.4

Research & 

Resolve

FC 2.6.12

Verify Status of 

Expenditure or 

Cost

FC 2.6.15

Verify Expenditure 

or Cost Amount 

against

Available

Obligation/

Sub-Allotment or 

Allowance

FC 2.6.6

Recorded

Expenditure or Cost

?

FC 2.6.6

Recorded

Expenditure or Cost

?

FC 2.6.3

Appropriation 

Enacted and

Apportionment

Signed by

OMB?

FC 2.6.3

Appropriation 

Enacted and

Apportionment

Signed by

OMB?

FC 2.6.17

Research & 

Resolve

FC 2.6.9

Fund

Unexpired?

FC 2.6.9

Fund

Unexpired?

FC 2.6.11

Research & 

Resolve

FC 2.6.5

Verify Against 

Expenditures or 

Costs

FC 2.6.8

Determine Status 

of Funds

FC 2.6.18

Record 

Expenditure or 

Cost in System

FC 2.6.7

Research & 

Resolve

FC 2.6.13

Expenditure or Cost 

Is Available?

FC 2.6.13

Expenditure or Cost 

Is Available?

No

No

Yes

FC 2.6.14

Research & 

Resolve

FC 2.6.10

Fund

Cancelled?

FC 2.6.10

Fund

Cancelled?

No

Yes

SGL 49xx <= 48xx and SGL 

4610
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 24 

The Funds Control Expenditures process steps are described below:

Step ID Step Name Step Description

FC 2.6.1 Receive Request to Expend or 

Cost Funds

An official requests authorization to expend 

funds.

FC 2.6.2 Determine Status of Appropriation 

and Apportionment

The agency verifies that the funds are available 

for expenditure.

FC 2.6.3 Confirm Appropriation Enacted 

and Apportionment Signed by

OMB

The funds must be appropriated and the 

apportionment signed by OMB. If the 

appropriation is not enacted or the 

apportionment is not signed by OMB, go to step 

FC 2.6.4. If the appropriation is enacted and 

the apportionment signed by OMB, go to step 

FC 2.6.5. This control will prevent an 

expenditure or cost from occurring when the 

appropriation has not been enacted or the 

apportionment signed by OMB.

FC 2.6.4 Research & Resolve The agency researches and resolves the status of 

the appropriation or the apportionment.

FC 2.6.5 Verify Against Expenditures or 

Costs

The agency reviews the expenditure or cost 

against expenditures or costs recorded and unrecorded.

FC 2.6.6 Recorded Expenditure or Cost All expenditures or costs should be recorded in 

the system. If the expenditure or cost has been

made, go to step FC 2.6.7. If the expenditure or 

cost has not been made, go to step FC 2.6.8.

FC 2.6.7 Research & Resolve The agency researches and resolves adjustment 

of an existing expenditure or cost.

FC 2.6.8 Determine Status of Funds The agency verifies that the funds are available 

for expenditure or cost.

FC 2.6.9 Funds Unexpired The funds cannot be expired or cancelled for a 

new expenditure or cost. If the funds are

expired, go to step FC 2.6.10. If the funds are

unexpired, go to step FC 2.6.13. This control 

will prevent a new expenditure or cost from 

being processed against expired or cancelled 

funds. The control will allow a new 

expenditure or cost to be processed only against 

unexpired funds.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 25 

Step ID Step Name Step Description

FC 2.6.10 Funds Cancelled The funds cannot be cancelled. If the funds are

cancelled, go to step FC 2.6.11. If the funds are

expired, go to step FC 2.6.12. This control will 

prevent an expenditure or cost from being 

processed against cancelled funds. The control 

will allow an expenditure or cost to be 

processed against expired funds only in 

situations where there is an existing obligation, 

expenditure, or cost that can be modified.

FC 2.6.11 Research & Resolve The agency researches and resolves a solution 

for processing the expenditure or cost against

the proper funding source.

FC 2.6.12 Verify Status of Expenditure or 

Cost

The agency verifies that an existing expenditure 

is available to be modified. 

FC 2.6.13 Expenditure or Cost Is Available The expenditure or cost must be available for 

increase. If the expenditure or cost is not 

available, go to step FC 2.6.14. If the 

expenditure or cost is available, go to step FC 

2.6.15. This control will prevent increases in 

expenditures or costs where they do not already 

exist. 

FC 2.6.14 Research & Resolve The agency researches and resolves the proper 

use of funds for the expenditure or cost, 

especially in the case where an expenditure or 

cost has been made against expired or cancelled 

funds.

FC 2.6.15 Verify Expenditure or Cost 

Amount against Available

Obligation/Sub-Allotment or 

Allowance

The agency compares the expenditure or cost 

against the amount available in the obligation/

sub-allotment or allowance.

FC 2.6.16 Expenditure or Cost

<=

Obligation/

Sub-Allotment or Allowance

The expenditure or cost amount cannot exceed 

the amount obligated or sub-allotted. If the 

amount expended exceeds the obligation/suballotment or allowance, go to step FC 2.6.17. If 

the amount expended is less than or equal to the 

obligation/sub-allotment or allowance, go to 

step FC 2.6.18. This control will prevent 

processing of an expenditure or cost in excess 

of the obligation/sub-allotment or allowance.

FC 2.6.17 Research & Resolve The agency researches and resolves an 

expenditure or cost amount in excess of the

amount obligated or sub-allotted.

FC 2.6.18 Record Expenditure or Cost in 

System

The agency records the expenditure or cost in 

the system. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 26 

2.7 FUNDS CONTROL DISBURSEMENTS

The following flowchart provides the steps performed when controlling funds for disbursements:
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 27 

The Funds Control Disbursements process steps are described below:

Step ID Step Name Step Description

FC 2.7.1 Receive Request to Disburse Funds An official requests disbursement of funds.

FC 2.7.2 Determine Status of Appropriation 

and Apportionment

The agency verifies that the funds are available 

for expenditure.

FC 2.7.3 Confirm Appropriation Enacted 

and Apportionment Signed by

OMB

The funds must be appropriated and the 

apportionment signed by OMB. If the 

appropriation is not enacted or the 

apportionment is not signed by OMB, go to step 

FC 2.7.4. If the appropriation is enacted and the 

apportionment signed by OMB, go to step FC 

2.7.5. This control will prevent a disbursement 

from occurring when the appropriation has not 

been enacted or the apportionment signed by 

OMB.

FC 2.7.4 Research & Resolve The agency researches and resolves the status of 

the appropriation or the apportionment.

FC 2.7.5 Verify Status of Disbursement The agency determines whether an existing 

disbursement is available to be modified. This 

includes when funds are anticipated. Funds 

cannot be disbursed if an agreement is not in 

place.

FC 2.7.6 Disbursement Is Available The disbursement must be available for 

increase. If the disbursement is not available, 

go to step FC 2.7.7. If the disbursement is 

available, go to step FC 2.7.8. 

FC 2.7.7 Research & Resolve The agency researches and resolves the 

adjustment of an existing disbursement.

FC 2.7.8 Determine Status of Funds The agency verifies that the funds are available 

for expenditure.

FC 2.7.9 Funds Unexpired The term “unexpired funds” means funds 

appropriated for a definite period that remain 

available for obligation. The funds cannot be 

expired. If the funds are expired, go to step FC 

2.7.10. If the funds are unexpired, go to step 

FC 2.7.11. This control will prevent a 

disbursement from being processed against 

expired or cancelled funds. The control will 

allow a disbursement to be processed only 

against unexpired funds.

FC 2.7.10 Verify Against Cancelled Payables The agency compares the disbursement against 

cancelled payables.

FC 2.7.11 Authority is Available If a cancelled payable exists, then up to 1% of 

unexpired funds can be used to cover the 

request. If the amount disbursed exceeds the 

1%, go to step FC 2.7.12. If the amount 

disbursed is less than or equal to the 1%, go to 

step FC 2.7.13.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 28 

FC 2.7.12 Research & Resolve The agency researches and resolves 

disbursements in excess of the 1%, as well as 

the proper use of the funds.

FC 2.7.13 Verify Disbursement Amount 

against Available

Expenditure/

Sub-Allotment or Allowance

The agency compares the disbursement against 

the amount available in expenditure/suballotment or allowance.

FC 2.7.14 Disbursement

<=

Expenditure or Cost/

Sub-Allotment or Allowance

The disbursement amount cannot exceed the 

amount expended or sub-allotted. If the amount 

disbursed exceeds the expenditure/suballotment or allowance, go to step FC 2.7.15. If 

the amount disbursed is less than or equal to the 

expenditure/sub-allotment or allowance, go to 

step FC 2.7.17. This control will prevent a 

disbursement from being processed in excess of 

the expenditure or cost/sub-allotment or 

allowance.

FC 2.7.15 Research & Resolve The agency researches and resolves the excess 

amount of the disbursement.

FC 2.7.16 Approval of Treasury Warrant The Treasury posts a warrant for the amount of 

the appropriation. (Order on the U.S. Treasury 

that a certain dollar amount be paid with a bank 

check.)

FC 2.7.17 Verify Treasury Warrant to 

Appropriation and Amount in Core 

Financial System

The agency compares the Treasury Warrant to 

appropriation and amount.

FC 2.7.18 Verify Warrant Amount Correct The agency verifies that the warrant amount 

matches the appropriation amount. If the 

amount is correct, go to step FC 2.7.20. If the 

amount does not match, go to step 2.7.19.

FC 2.7.19 Research & Resolve The agency researches and resolves the 

discrepancy between the Treasury Warrant and 

appropriation amount. 

FC 2.7.20 Record Disbursement in System The agency records the disbursement in the 

system. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 29 

2.8 FUNDS CONTROL PAYROLL EXPENSE

The following flowchart provides the steps performed when controlling funds for 

payroll:

FC 2.8 Funds Control Payroll Expense

Funds Control Funds Control Financial Event / Activity Financial Event / Activity

No

Yes

Yes

No

Yes

Yes

No

FC 2.8.1

Receive Time and 

Expense Request

FC 2.8.2

Determine Status 

of Appropriation 

and Apportionment

FC 2.8.4

Research & 

Resolve

FC 2.8.18

Record Expense

 in System

FC 2.8.13

Research & 

Resolve

FC 2.8.8

Determine Status 

of Funds

FC 2.8.12

Expense

<=

Obligation/

Sub-Allotment or 

Allowance

?

FC 2.8.12

Expense

<=

Obligation/

Sub-Allotment or 

Allowance

?

FC 2.8.7

Research & 

Resolve

FC 2.8.9

Fund

Unexpired?

FC 2.8.9

Fund

Unexpired?

FC 2.8.11

Verify Expense Amount 

against

Available

Obligation/

Sub-Allotment or 

Allowance

FC 2.8.10

Research & 

Resolve

FC 2.8.5

Verify Time 

Reported

FC 2.8.6

All Services 

Performed within 

Time Period 

Authorized ?

FC 2.8.6

All Services 

Performed within 

Time Period 

Authorized ?

FC 2.8.3

Appropriation 

Enacted and

Apportionment

Signed by

OMB?

FC 2.8.3

Appropriation 

Enacted and

Apportionment

Signed by

OMB?

No

FC 2.8.14

Verify Against GS 

15 Step 10

FC 2.8.15

Amount <= GS 15 

Step 10?

FC 2.8.15

Amount <= GS 15 

Step 10?

FC 2.8.16

Payment Event 

Occurred?

FC 2.8.16

Payment Event 

Occurred?

Yes

No

FC 2.8.17

Research & 

Resolve

No

Yes
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 30 

The Funds Control Payroll Expense process steps are described below:

Step ID Step Name Step Description

FC 2.8.1 Receive Time and Expense 

Request

The agency receives a request to record time 

and expense.

FC 2.8.2 Determine Status of Appropriation 

and Apportionment

The agency verifies that the funds are available 

for expenditure.

FC 2.8.3 Confirm Appropriation Enacted 

and Apportionment Signed by

OMB

The funds must be appropriated and the 

apportionment signed by OMB. If the 

appropriation is not enacted or the 

apportionment is not signed by OMB, go to step 

FC 2.8.4. If the appropriation is enacted and 

the apportionment signed by OMB, go to step 

FC 2.8.5. This control will prevent an expense 

from occurring when the appropriation has not 

been enacted or the apportionment signed by 

OMB.

FC 2.8.4 Research & Resolve The agency researches and resolves the status of 

the appropriation or the apportionment.

FC 2.8.5 Verify Time Reported The agency reviews the time reported against 

authorized time.

FC 2.8.6 Confirm All Services Performed 

Within Time Period Authorized 

Time should not exceed the amount authorized. 

If the time reported exceeds the authorized 

amount, go to step FC 2.8.7. If the time 

reported is less than or equal to the 

authorization, go to step FC 2.8.8.

FC 2.8.7 Research & Resolve The agency researches and resolves the excess 

time reported.

FC 2.8.8 Determine Status of Funds The agency verifies that the funds are available 

for the expense.

FC 2.8.9 Funds Unexpired The funds cannot be expired. If the fund is 

expired, go to step FC 2.8.10. If the fund is 

unexpired, go to step FC 2.8.11. This control 

will prevent an expense from being processed 

against expired or cancelled funds. The control 

will allow an expense to be processed only 

against unexpired funds.

FC 2.8.10 Research & Resolve The agency researches and resolves the proper 

use of the funds for the expense.

FC 2.8.11 Verify Expense Amount against

Available Obligation/

Sub-Allotment or Allowance

The agency compares the expense against the 

amount available in obligation/sub-allotment or

allowance.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 31 

Step ID Step Name Step Description

FC 2.8.12 Expense

<=

Obligation/

Sub-Allotment or Allowance

The expense amounts cannot exceed the 

amounts obligated or sub-allotted. If the 

amount expensed exceeds the obligation/suballotment or allowance, go to step FC 2.8.13. If 

the amount expensed is less than or equal to the 

obligation/sub-allotment or allowance, go to 

step FC 2.8.14. This control will prevent an 

expense from being processed in excess of the 

obligation/sub-allotment or allowance.

FC 2.8.13 Research & Resolve The agency researches and resolves the excess 

amount of the expense.

FC 2.8.14 Verify Against Title 5 GS 15 Step 

10

The agency compares the cumulative amount 

expensed against GS 15 Step 10 pay. This is the 

maximum allowable cap for straight and 

overtime pay. 

FC 2.8.15 Determine if the amount <= GS 15 

Step 10

The agency determines if the amount is less 

than or equal to the amount of GS 15 Step 10 

pay.

FC 2.8.16 Determine Status of Payment 

Event 

The agency determines if the payment has 

occurred.

FC 2.8.17 Research & Resolve The agency researches and resolves the 

payment that should not have been made.

FC 2.8.18 Record Expense in System The agency records the expense in the system. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 32 

2.9 FUNDS CONTROL MONITORING CONTROLS

FC 2.9 Funds Control Monitoring Controls

Daily Activity Monthly Activity Monthly Activity Quarterly Activity Quarterly Activity Daily Activity

FC 2.9.1

Review Trial 

Balance for 

Abnormal 

Balances

FC 2.9.2

Are Balances 

Normal?

FC 2.9.2

Are Balances 

Normal?

FC 2.9.4

Continue 

Processing 

Transactions

FC 2.9.3

Research and 

Resolve Yes

No

Yes

No

FC 2.9.8

Continue 

Processing 

Transactions

FC 2.9.7

Research and 

Resolve

FC 2.9.6

Do Debits = Credits?

FC 2.9.6

Do Debits = Credits?

FC 2.9.5

Review Trial 

Balance for 

Balancing

Yes

No

FC 2.9.11

Research and 

Resolve

FC 2.9.9

Review Trial 

Balance Budgetary 

Balances

FC 2.9.10

Do Resources = 

Status of Resources 

and are proper for 

Fund Type ?

FC 2.9.10

Do Resources = 

Status of Resources 

and are proper for 

Fund Type ?

FC 2.9.12

Continue 

Processing 

Transactions

Yes

No

FC 2.9.14

Do Budgetary 

Balances Tie to 

Proprietary 

Balances?

FC 2.9.14

Do Budgetary 

Balances Tie to 

Proprietary 

Balances?

FC 2.9.13

Review Trial 

Balance Budgetary 

and Proprietary 

Balances

FC 2.9.15

Research and 

Resolve

FC 2.9.16

Continue 

Processing 

Transactions

Yes

No

FC 2.9.20

Continue 

Processing 

Transactions

FC 2.9.17

Review Trial 

Balance for 

FACTS II Edits

FC 2.9.18

Do the Accounts 

Pass the Edits?

FC 2.9.18

Do the Accounts 

Pass the Edits?

FC 2.9.19

Research and 

Resolve

Yes

No

FC 2.9.24

Continue 

Processing 

Transactions

FC 2.9.23

Research and 

Resolve

FC 2.9.21

Review Trial 

Balance for 

Budgetary 

Distribution

FC 2.9.22

Are Balances 

Proper for P.L., 

Apportionments and 

Warrants?

FC 2.9.22

Are Balances 

Proper for P.L., 

Apportionments and 

Warrants?
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 33 

The Funds Control Monitoring Controls process steps are described below:

Step ID Step Name Step Description

FC 2.9.1 Review Trial Balance for 

Abnormal Balances

For each appropriation, review the trial balance 

to ensure the Standard General Ledger accounts 

do not have abnormal balances. 

FC 2.9.2 Confirm Balances Are Normal The account balances must be normal (i.e., 

confirm accounts that should have a normal 

debit balance and accounts that should have 

normal credit balances). If the account balances 

are not normal, go to step FC 2.9.3. If the 

account balances are normal, go to step FC 

2.9.4. This control will prevent accounts from 

being posted incorrectly.

FC 2.9.3 Research & Resolve The agency researches and resolves account 

balances that are not normal.

FC 2.9.4 Continue Processing Transactions Transaction processing can continue to occur 

for those transactions that are affecting accounts 

with normal balances.

FC 2.9.5 Review Trial Balance for 

Balancing

For each appropriation, review the trial balance 

to ensure the budgetary Standard General 

Ledger account total debit balances equal the 

total credit balances. This will help to ensure 

the trial balance is in balance and transactions 

have properly updated the general ledger. 

FC 2.9.6 Confirm Debits = Credits The total debits should equal the total credits 

for each trial balance reported. If the trial 

balance does not balance, go to step FC 2.9.7. 

If the trial balance does balance, go to step FC 

2.9.8. This control will prevent transactions 

from posting out of balance.

FC 2.9.7 Research & Resolve The agency researches and resolves trial 

balances that are not in balance.

FC 2.9.8 Continue Processing Transactions Transaction processing can continue to occur 

for those transactions that are affecting accounts 

which are posting balanced transactions.

FC 2.9.9 Review Trial Balance Budgetary 

Balances

For each appropriation, review the trial balance 

to ensure the budgetary resource Standard 

General Ledger accounts equal the status of 

resources Standard General Ledger accounts, 

and the Standard General Ledger accounts are 

appropriate based on the status (unexpired, 

expired, cancelled) of the fund and type (direct, 

reimbursable, trust, etc.) of fund. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 34 

Step ID Step Name Step Description

FC 2.9.10 Confirm Resources = Status of 

Resources and Are Proper for Fund 

Type

The budgetary accounts must be recorded 

appropriately for each fund and fund type, and 

the balances of the budgetary resources 

accounts equal the accounts representing the 

status of resources. If the budgetary resources 

accounts are inaccurate, go to step FC 2.9.11. If 

the budgetary resources accounts are accurate, 

go to step FC 2.9.12. This control will prevent

budgetary transactions from posting improperly 

and from reflecting inaccurate budgetary status.

FC 2.9.11 Research & Resolve The budgetary accounts that are not proper must 

be researched and resolved.

FC 2.9.12 Continue Processing Transactions Transaction processing can continue to occur 

for those transactions that are posting to proper 

budgetary accounts.

FC 2.9.13 Review Trial Balance Budgetary 

and Proprietary Balances

For each fund, the relationship between the 

budgetary account balances and the proprietary 

account balances must be proper. Relationship 

tests, including the reconciliation to Treasury

should be reviewed to ensure accounts are 

posted properly to record the budgetary impact 

for the related proprietary accounts.

FC 2.9.14 Confirm Budgetary Balances Tie 

to Proprietary Balances

The budgetary account balances must tie to the 

proprietary account balances. If the balances do 

not relate, go to step FC 2.9.15. If the balances 

relate, go to step FC 2.9.16. 

FC 2.9.15 Research & Resolve The agency researches and resolves 

relationships that are not proper.

FC 2.9.16 Continue Processing Transactions Transaction processing can continue to occur 

for those transactions that are posting with the 

proper relationships intact.

FC 2.9.17 Review Trial Balance for FACTS 

II Edits

Each appropriation must pass the FACTS II 

edits checks.

FC 2.9.18 Confirm Accounts Pass the Edits Each edit check applied for FACTS II reporting 

must be met. If the edit checks are not passed, 

go to step FC 2.9.19. If the edit checks are 

passed, go to step FC 2.9.20. This control will 

prevent the Appropriation from meeting defined 

Treasury reporting edit checks.

FC 2.9.19 Research & Resolve The agency researches and resolves 

Appropriation that do not pass the edit checks.

FC 2.9.20 Continue Processing Transactions Transaction processing can continue to occur 

for those transactions that pass the FACTS II 

edits.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 35 

Step ID Step Name Step Description

FC 2.9.21 Review Trial Balance for 

Budgetary Distribution

The accounts must properly reflect the 

distributed funds from the resources provided 

and available by Public Law (P.L.) to 

Apportionment and the Treasury Warrant.

FC 2.9.22 Confirm Balances Proper for 

Public Law Apportionment and 

Warrants

Each appropriation’s budget distributions and 

uses of funding should be verified against 

amounts made available. If the amounts 

recorded in the system do not properly reflect 

budgetary and funds distributed, go to step FC 

2.9.23. If the amounts recorded in the system 

are properly reflected, go to step FC 2.9.24. 

This control will prevent transactions from 

exceeding funds distributed or from failing 

controls based on improperly distributed 

amounts. 

FC 2.9.23 Research & Resolve The agency researches and resolves amounts 

that are not proper.

FC 2.9.24 Continue Processing Transactions Transaction processing can continue to occur 

for those transactions that are recorded in funds 

where the amounts are properly recorded.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 36 

2.10 CROSS REFERENCE TO A-11 AND TITLE 31

The business rules for each Funds Control process are cross-referenced in the following table by to 

the requirements of the Anti-deficiency Act and OMB Circular A-11, Preparation, Submission and 

Execution of the Budget and Title 31, CFR.

The Code of Federal Regulations (CFR) is an annual codification of the general and permanent 

rules published in the Federal Register by the executive departments and agencies of the Federal 

Government. The CFR is divided into 50 titles representing broad areas subject to Federal 

regulation. Title 31, Money and Finance, includes Funds Control and the provisions of the Antideficiency Act. For further information please refer to the following website: 

http://www.access.gpo.gov/uscode/title31/title31.html

The Anti-deficiency Act, codified in Title 31, is one of the major laws through which Congress 

exercises its constitutional control of the public purse. It evolved over a period of time in response to 

various abuses. 

In its current form, the law prohibits: 

• Making or authorizing expenditure from, or creating or authorizing an obligation under, any 

appropriation or fund in excess of the amount available in the appropriation or fund unless 

authorized by law. 31 U.S.C. § 1341(a)(1)(A). 

• Involving the government in any obligation to pay money before funds have been appropriated 

for that purpose, unless otherwise allowed by law. 31 U.S.C. § 1341(a)(1)(B). 

• Accepting voluntary services for the United States, or employing personal services not authorized 

by law, except in cases of emergency involving the safety of human life or the protection of 

property. 31 U.S.C. § 1342. 

• Making obligations or expenditures in excess of an apportionment or reapportionment, or in 

excess of the amount permitted by agency regulations. 31 U.S.C. § 1517(a). 

The fiscal principles underlying the Anti-deficiency Act are really quite simple. Government officials 

may not make payments or commit the United States to make payments at some future time for 

goods or services unless there is enough money in the “bank” (i.e., available in the appropriation) to 

cover the cost in full. 

Violations of the Anti-deficiency Act are subject to administrative and penal Sanctions. The Antideficiency Act is the only official statute in Title 31to prescribe penalties of both types. 

OMB Circular A-11, Preparation, Submission and Execution of the Budget, is OMB’s 

comprehensive guidance document for the Executive Branch’s budget process.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 37 

 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

This column 

contains the 

reference 

number to the 

process flow 

that meets the 

control 

requirement.

The following contains the provisions of the 

Anti-deficiency Act, formerly section 3679 

of the Revised Statutes, and section 210 of 

the General Government Matters 

Appropriation Act, 1958. (Formerly 31 

U.S.C. 665, 665a, and 669.) 

The following provides the section in Title 31 

that was enacted without substantive change. 

Revisions to the 1982 law are italicized.

FC 2.1 – 2.7 665 Appropriation 

(a) Expenditures or contract obligations in 

excess of funds prohibited 

No officer or employee of the United States 

shall make or authorize any expenditure from 

or create or authorize an obligation under any 

appropriation or fund in excess of the amount 

available therein: nor shall any such officer 

or employee involve the Government in any 

contract or other obligation, or the payment 

of money for any purpose, in advance of 

Appropriation made for such purpose, unless 

such contract or obligation is authorized by 

law. 

Section 1341: 

(a)(1) An officer or employee of the United 

States Government or the District of Columbia 

government may not—

(A) make or authorize an expenditure or 

obligation exceeding an amount available in an 

appropriation or fund for the expenditure or 

obligation; 

(B) involve either government in a contract or 

obligation for the payment of money before an 

appropriation is made unless authorized by law; 

(C) make or authorize an expenditure or 

obligation of funds required to be sequestered 

under section 252 of the Balanced Budget and 

Emergency Deficit Control Act of 1985; or 

(D) involve either government in a contract or 

obligation for the payment of money required to 

be sequestered under section 252 of the Balanced 

Budget and Emergency Deficit Control Act of 

1985. 

FC2.8 (b) Voluntary service forbidden 

No officer or employee of the United States 

shall accept voluntary service for the United 

States or employ personal service in excess 

of that authorized by law, except in cases of 

emergency involving the safety of human life 

or the protection of property. 

Section 1342: 

An officer or employee of the United States 

Government or of the District of Columbia 

government may not accept voluntary services 

for either government or employ personal 

services exceeding that authorized by law except 

for emergencies involving the safety of human 

life or the protection of property. 

This section does not apply to a corporation 

getting amounts to make loans (except paid in 

capital amounts) without legal liability of the 

United States Government. As used in this 

section, the term "emergencies involving the 

safety of human life or the protection of 

property" does not include ongoing, regular 

functions of government the suspension of which 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 38 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

would not imminently threaten the safety of 

human life or the protection of property.

FC 2.1 (c) Apportionment of Appropriation; 

reserves; distribution; review 

(1) Except as otherwise provided in this 

section, all Appropriation or funds available 

for obligation for a definite period of time 

shall be so apportioned as to prevent 

obligation or expenditure thereof in a manner 

which would indicate a necessity for 

deficiency or supplemental Appropriation for 

such period; and all Appropriation or funds 

not limited to a definite period of time, and 

all authorizations to create obligations by 

contract in advance of Appropriation, shall be 

so apportioned as to achieve the most 

effective and economical use thereof. 

Section 1512: 

(a) Except as provided in this subchapter, an 

appropriation available for obligation for a 

definite period shall be apportioned to prevent 

obligation or expenditure at a rate that would 

indicate a necessity for a deficiency or 

supplemental appropriation for the period. An 

appropriation for an indefinite period and 

authority to make obligations by contract before 

Appropriation shall be apportioned to achieve the 

most effective and economical use. An 

apportionment may be reapportioned under this 

section. 

FC 2.1 As used hereafter in this section, the term 

"appropriation" means Appropriation, funds 

and authorizations to create obligations by 

contract in advance of Appropriation. 

Section 1511: 

(a) In this subchapter, "Appropriation" means—

(1) appropriated amounts; 

(2) funds; and 

(3) authority to make obligations by contract 

before obligations. 

FC 2.1 (2) In apportioning any appropriation, 

reserves may be established solely to provide 

for contingencies, or to effect savings 

whenever savings are made possible by or 

through changes in requirements or greater 

efficiency of operations. 

Section 1512(c): 

(1) In apportioning or reapportioning an 

appropriation, a reserve may be established 

only—

(A) to provide for contingencies; 

(B) to achieve savings made possible by or 

through changes in requirements or greater 

efficiency of operations; or 

(C) as specifically provided by law. 

FC 2.2 Whenever it is determined by an officer 

designated in subsection (d) of this section to 

make apportionments and reapportionments 

that any amount so reserved will not be 

required to carry out the full objectives and 

scope of the appropriation concerned, he 

shall recommend the rescission of such 

amount in the manner provided in the Budget 

and Accounting Act, 1921 (31 U.S.C. 1 et 

seq.), for estimates of appropriations. Except 

as specifically provided by particular 

appropriations acts or other laws, no reserves 

shall be established other than as authorized 

by this subsection. Reserves established 

pursuant to this subsection shall be reported 

Section 1512(c): 

(2) A reserve established under this subsection 

may be changed as necessary to carry out the 

scope and objectives of the appropriation 

concerned. When an official designated in 

section 1513 of this title to make apportionments 

decides that an amount reserved will not be 

required to carry out the objectives and scope of 

the appropriation concerned, the official shall 

recommend the rescission of the amount in the 

way provided in chapter 11 of this title for 

appropriation requests. Reserves established 

under this section shall be reported to Congress 

as provided in the Impoundment Control Act of 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 39 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

to the Congress in accordance with the 

Impoundment Control Act of 1974 (31 

U.S.C. 1400 et seq.).

1974 (2 U.S.C. 681 et seq.).

FC 2.1 – 2.3 (3) Any appropriation subject to 

apportionment shall be distributed by 

months, calendar quarters, operating seasons, 

or other time periods, or by activities, 

functions, projects, or objects, or by a 

combination thereof, as may be deemed 

appropriate by the officers designated in 

subsection (d) of this section to make 

apportionments and reapportionments. 

Except as otherwise specified by the officer 

making the apportionment, amounts so 

apportioned shall remain available for 

obligation, in accordance with the terms of 

the appropriation, on a cumulative basis 

unless reapportioned. 

Section 1512(b): 

(1) An appropriation subject to apportionment is 

apportioned by—

(A) months, calendar quarters, operating seasons, 

or other time periods; 

(B) activities, functions, projects, or objects; or 

(C) a combination of the ways referred to in 

clauses (A) and (B) of this paragraph. 

(2) The official designated in section 1513 of this 

title to make apportionments shall apportion an 

appropriation under paragraph (1) of this 

subsection as the official considers appropriate. 

Except as specified by the official, an amount 

apportioned is available for obligation under the 

terms of the appropriation on a cumulative basis 

unless reapportioned. 

FC 2.1 (4) Apportionments shall be reviewed at least 

four times each year by the officers 

designated in subsection (d) of this section to 

make apportionments and reapportionments, 

and such reapportionments made or such 

reserves established, modified, or released as 

may be necessary to further the effective use 

of the appropriation concerned, in accordance 

with the purposes stated in paragraph (1) of 

this subsection. 

Section 1512: 

(d) An apportionment or a reapportionment shall 

be reviewed at least 4 times a year by the official 

designated in section 1513 of this title to make 

apportionments. 

Section 1512(a) the last sentence: 

. . . An apportionment may be reapportioned 

under this section. 

FC 2.1 (d) Officers controlling apportionment or 

reapportionment 

(1) Any appropriation available to the 

legislative branch, the judiciary, the United 

States International Trade Commission, or 

the District of Columbia, which is required to 

be apportioned under subsection (c) of this 

section, shall be apportioned or reapportioned 

in writing by the officer having 

administrative control of such appropriation. 

Each such appropriation shall be apportioned 

not later than thirty days before the beginning 

of the fiscal year for which the appropriation 

is available, or not more than thirty days after 

approval of the Act by which the 

appropriation is made available, whichever is 

later.

Section 1513: 

(a) The official having administrative control of 

an appropriation available to the legislative 

branch, the judicial branch, the United States 

International Trade Commission, or the District 

of Columbia government that is required to be 

apportioned under section 1512 of this title shall 

apportion the appropriation in writing. An 

appropriation shall be apportioned not later than 

the later of the following: 

(1) 30 days before the beginning of the fiscal 

year for which the appropriation is available; or 

(2) 30 days after the date of enactment of the law 

by which the appropriation is made available.

FC 2.1 (2) Any appropriation available to an agency, Section 1513(b): 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 40 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

which is required to be apportioned under 

subsection (c) of this section, shall be 

apportioned or reapportioned in writing by 

the Director of the Office of Management 

and Budget. The head of each agency to 

which any such appropriation is available 

shall submit to the Office of Management 

and Budget information, in such form and 

manner and at such time or times as the 

Director may prescribe, as may be required 

for the apportionment of such appropriation. 

Such information shall be submitted not later 

than forty days before the beginning of any 

fiscal year for which the appropriation is 

available, or not more than fifteen days after 

approval of the Act by which such 

appropriation is made available, whichever is 

later. The Director of the Office of 

Management and Budget shall apportion each 

such appropriation and shall notify the 

agency concerned of his action not later than 

twenty days before the beginning of the fiscal 

year for which the appropriation is available 

or not more than thirty days after approval of 

the Act by which such appropriation is made 

available, whichever is later. 

(1) The President shall apportion in writing an 

appropriation available to an executive agency 

(except the Commission) that is required to be 

apportioned under section 1512 of this title. The 

head of each executive agency to which the 

appropriation is available shall submit to the 

President information required for the 

apportionment in the form and the way and at the 

time specified by the President. The information 

should be submitted not later than the later of the 

following: 

(A) 40 days before the beginning of the fiscal 

year for which the appropriation is available; or 

(B) 15 days after the date of enactment of the law 

by which the appropriation is made available. 

(2) The President shall notify the head of the 

executive agency of the action taken in 

apportioning the appropriation under paragraph 

(1) of this subsection not later than the later of 

the following: 

(A) 20 days before the beginning of the fiscal 

year for which the appropriation is available; or 

(B) 30 days after the date of enactment of the law 

by which the appropriation is made available. 

When used in this section, the term "agency" 

means any executive department, agency, 

commission, authority, administration, board, 

or other independent establishment in the 

executive branch of the Government, 

including any corporation wholly or partly 

owned by the United States which is an 

instrumentality of the United States. 

Section 101: 

In this title, "agency" means a department, 

agency, or instrumentality of the United States 

Government. 

Also, section 102: 

In this title, "executive agency" means 

department, agency, or instrumentality in the 

executive branch of the United States 

Government. 

Nothing in this subsection shall be so 

construed as to interfere with the initiation, 

operation, and administration of agricultural 

price support programs and no funds (other 

than funds for administrative expenses) 

available for price support, surplus removal, 

and available under section 612c of title 7, 

with respect to agricultural commodities shall 

be subject to apportionment pursuant to this 

section.

Section 1513: 

(e) This section does not affect the initiation and 

operation of agriculture price support programs. 

Also, section 1511: 

(b) This subchapter does not apply to—

(1) amounts (except amounts for administrative 

expenses) available—

(A) for price support and surplus removal of 

agricultural commodities; and 

(B) under section 32 of the Act of August 24, 

1935 (7 U.S.C. 612c); (7 U.S.C. 612c);

The provisions of this section shall not apply Section 1341(a): 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 41 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

to any corporation which obtains funds for 

making loans, other than paid in capital 

funds, without legal liability on the part of 

the United States. 

(2) This subsection does not apply to a 

corporation getting amounts to make loans 

(except paid in capital amounts) without legal 

liability of the United States Government. 

Also, section 1342 (in part): 

... This section does not apply to a corporation 

getting amounts to make loans (except paid in 

capital amounts) without legal liability of the 

United States Government. 

Also, section 1511: 

(b) this subchapter does not apply to—

(2) a corporation getting amounts to make loans 

(except paid in capital amounts) without legal 

liability on the part of the United States 

Government; and 

(e) Apportionment necessitating deficiency 

or supplemental estimates 

(1) No apportionment or reapportionment, or 

request therefore by the head of an agency, 

which, in the judgment of the officer making 

or the agency head requesting such 

apportionment or reapportionment, would 

indicate a necessity for a deficiency or 

supplemental estimate shall be made except 

upon a determination by such officer or 

agency head, as the case may be, that such 

action is required because of (A) any laws 

enacted subsequent to the transmission to the 

Congress of the estimates for an 

appropriation which require expenditures 

beyond administrative control; or (B) 

emergencies involving the safety of human 

life, the protection of property, or the 

immediate welfare of individuals in cases 

where an appropriation has been made to 

enable the United States to make payment of, 

or contributions toward, sums which are 

required to be paid to individuals either in 

specific amounts fixed by law or in 

accordance with formulae prescribed by law.

Section 1515(b): 

(1) Except as provided in subsection (a) of this 

section, an official may make, and the head of an 

agency may request, an apportionment under 

section 1512 of this title that would indicate a 

necessity for a deficiency or supplemental 

appropriation only when the official or agency 

head decides that the action is required because 

of—

(A) a law enacted after submission to Congress 

of the estimates for an appropriation that requires 

an expenditure beyond administrative control; or 

(B) an emergency involving the safety of human 

life, the protection of property, or the immediate 

welfare of individuals when an appropriation that 

would allow the United States Government to 

pay, or contribute to, amounts required to be paid 

to individuals in specific amounts fixed by law or 

under formulas prescribed by law, is insufficient.

(2) In each case of an appropriation or a 

reapportionment which, in the judgment of 

the officer making such apportionment or 

reapportionment, would indicate a necessity 

for a deficiency or supplemental estimate, 

such officer shall immediately submit a 

detailed report of the facts of the case to the 

Section 1515(b): 

(2) If an official making an apportionment 

decides that an apportionment would indicate a 

necessity for a deficiency or supplemental 

appropriation, the official shall submit 

immediately a detailed report of the facts to 

Congress. The report shall be referred to in 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 42 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

Congress. In transmitting any deficiency or 

supplemental estimates required on account 

of any such apportionment or 

reapportionment, reference shall be made to 

such report. 

submitting a proposed deficiency or 

supplemental appropriation. 

(f) Exemption of trust funds and working 

funds expenditures from apportionment 

(1) The officers designated in subsection (d) 

of this section to make apportionments and 

reapportionments may exempt from 

apportionments trust funds and working 

funds expenditures from which have no 

significant effect on the financial operations 

of the Government, working capital and 

revolving funds established for 

intragovernmental operations, receipts from 

industrial and power operations available 

under law and any appropriation made 

specifically for—

(1) interest on, or retirement of, the public 

debt; 

(2) payment of claims, judgments, refunds, 

and draw-backs; 

(3) any item determined by the President to 

be of a confidential nature; (4) payment 

under private relief acts or other laws 

requiring payments to designated payees in 

the total amount of such appropriation; (5) 

grants to the States under title I, IV, or X of 

the Social Security Act (42 U.S.C. 301 et 

seq., 1201 et seq.), or under any other public 

assistance title in such Act. 

Section 1516: 

An official designated in section 1513 of this title 

to make apportionments may exempt from 

apportionment –

(1) a trust fund or working fund if an expenditure 

from the fund has no significant effect on the 

financial operations of the United States 

Government; 

(2) a working capital fund or a revolving fund 

established for intragovernmental operations; 

(3) receipts from industrial and power operations 

available under law; and 

(4) appropriations made specifically for—

(A) interest on, or retirement of, the public debt; 

(B) payment of claims, judgments, refunds, and 

drawbacks; 

(C) items the President decides are of a 

confidential nature; 

(D) payment under a law requiring payment of 

the total amount of the appropriation to a 

designated payee; and 

(E) grants to the States under the Social Security 

Act (41 U.S.C. 301 et seq.). 

(2) The provisions of subsection (c) of this 

section shall not apply to appropriations to 

the Senate or House of Representatives or to 

any Member, committee, Office (including 

the office of the Architect of the Capitol), 

officer, or employee thereof.

Section 1511: 

(b) This subchapter does not apply to—

(3) the Senate, the House of Representatives, a 

committee of Congress, a member, officer, 

employee, or office of either House of Congress, 

or the office of the Architect of the Capitol or an 

officer or employee of that Office.

FC 2.2 – 2.3 (g) Administrative division of 

apportionment; simplification of system 

for subdividing funds 

Any appropriation which is apportioned or 

reapportioned pursuant to this section may be 

divided and subdivided administratively 

within the limits of such apportionments or 

reapportionments. The officer having 

Section 1513: 

(d) An appropriation apportioned under this 

subchapter may be divided and subdivided 

administratively within the limits of the 

apportionment. 

Section 1514: 

(a) The official having administrative control of 

an appropriation available to the legislative 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 43 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

administrative control of any such 

appropriation available to the legislative 

branch, the judiciary, the United States 

International Trade Commission, or the 

District of Columbia, and the head of each 

agency, subject to the approval of the 

Director of the Office of Management and 

Budget, shall prescribe, by regulation, a 

system of administrative control (not 

inconsistent with any accounting procedures 

prescribed by or pursuant to law) which shall 

be designed to (A) restrict obligations or 

expenditures against each appropriation to 

the amount of apportionments or 

reapportionments made for each such 

appropriation, and (B) enable such officer or 

agency head to fix responsibility for the 

creation of any obligation or the making of 

any expenditure in excess of an 

apportionment or reapportionment. 

branch, the judicial branch, the United States 

International Trade Commission, or the District 

of Columbia government, and, subject to the 

approval of the President, the head of each 

executive agency (except the Commission) shall 

prescribe by regulation a system of 

administrative control not inconsistent with 

accounting procedures prescribed under law. The 

system shall be designed—

(1) to restrict obligations or expenditures from 

each appropriation to the amount of 

apportionments or reapportionments of the 

appropriation; and 

(2) to enable the official or the head of the 

executive agency to fix responsibility for an 

obligation or expenditure exceeding an 

apportionment or reapportionment. 

FC 2.2 - 2.3 In order to have a simplified system for the 

administrative subdivision of appropriations 

or funds, each agency shall work toward the 

objective of financing each operating unit, at 

the highest practical level, from not more 

than one administrative subdivision for each 

appropriation or fund affecting such unit. 

(b) To have a simplified system for 

administratively dividing appropriations, the 

head of each executive agency (except the 

Commission) shall work toward the objective of 

financing each operating unit, at the highest 

practical level, from not more than one 

administrative division for each appropriation 

affecting the unit. 

FC 2.5 – 2.6 (h) Expenditures in excess of 

apportionment; penalties 

No officer or employee of the United States 

shall authorize or create any obligation or 

make any expenditure (A) in excess of an 

apportionment or reapportionment, or (B) in 

excess of the amount permitted by 

regulations prescribed pursuant to subsection 

(g) of this section. 

Section 1517: 

(a) An officer or employee of the United States 

Government or of the District of Columbia 

government may not make or authorize an 

expenditure or obligation exceeding—

(1) an apportionment; or 

(2) the amount permitted by regulations 

prescribed under section 1514(a) of this title. 

(i) Administrative discipline; reports on 

violation 

(1) In addition to any penalty of liability 

under other law, any officer or employee of 

the United States who shall violate 

subsections (a), (b), or (h) of this section 

shall be subjected to appropriate 

administrative discipline, including, when 

circumstances warrant, suspension from duty 

without pay or removal from office; 

Section 1349: 

(a) An officer or employee of the United States 

Government or of the District of Columbia 

government violating section 1341(a) or 1342 of 

this title shall be subject to appropriate 

administrative discipline including, when 

circumstances warrant, suspension from duty 

without pay or removal from office. 

Also, section 1518: 

An officer or employee of the United States 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 44 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

Government or of the District of Columbia 

government violating section 1517(a) of this title 

shall be subject to appropriate administrative 

discipline including, when circumstances 

warrant, suspension from duty without pay or 

removal from office. 

And any officer or employee or the United 

States who shall knowingly and willfully 

violate subsections (a), (b), or (h) of this 

section shall, upon conviction, be fined not 

more than $5,000 or imprisoned for not more 

than two years, or both. 

Section 1350: 

An officer or employee of the United States 

Government or of the District of Columbia 

government knowingly and willfully violating 

section 1341(a) or 1342 of this title shall be fined 

not more than $5,000, imprisoned for not more 

than two years, or both. 

Also, section 1519: 

An officer or employee of the United States 

Government or of the District of Columbia 

government knowingly and willfully violating 

section 1517(a) of this title shall be fined not 

more than $5,000, imprisoned for not more than 

2 years, or both. 

(2) In the case of a violation of subsections 

(a), (b), or (h) of this section by an officer or 

employee of an agency, or of the District of 

Columbia, the head of the agency concerned 

or the Mayor of the District of Columbia, 

shall immediately report to the President, 

through the Director of the Office of 

Management and Budget, and to the 

Congress all pertinent facts together with a 

statement of the action thereon. 

Section 1351: 

If an officer or employee of an executive agency 

or an officer or employee of the District of 

Columbia government violates section 1341(a) or 

1342 of this title, the head of the agency or the 

Mayor of the District of Columbia, as the case 

may be, shall report immediately to the President 

and Congress all relevant facts and a statement of 

actions taken. A copy of each report shall be 

transmitted to the Comptroller General on the 

same date the report is transmitted to the 

President and Congress. 

Also, section 1517: 

(b) If an officer or employee of an executive 

agency or of the District of Columbia 

government violates subsection (a) of this 

section, the head of the executive agency or the 

Mayor of the District of Columbia, as the case 

may be, shall report immediately to the President 

and Congress all relevant facts and a statement of 

actions taken. A copy of each report shall be 

transmitted to the Comptroller General on the 

same date the report is transmitted to the 

President and Congress.

31 U.S.C. 665a. Basis of apportionment; 

need for funds for increased compensation 

for wage-board employees 

Section 1515: 

(a) An appropriation required to be apportioned 

under section 1512 of this title may be 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 45 

Process 

Reference The Anti-deficiency Act Title 31—Money And Finance

On and after June 5, 1957, any appropriation 

required to be apportioned pursuant to 

section 665 of this title, may be apportioned 

on a basis indicating the need for a 

supplemental or deficiency estimate of 

appropriation to the extent necessary to 

permit payment of such pay increases as may 

be granted those employees (commonly 

known as wage-board employees) whose 

compensation is fixed and adjusted from time 

to time in accordance with prevailing rates (5 

U.S.C. 5102(c)(7), 5341 et seq.). 

apportioned on a basis that indicates the need for 

a deficiency or supplemental appropriation to the 

extent necessary to permit payment of such pay 

increases as may be granted pursuant to law to 

civilian officers and employees (including 

prevailing rate employees whose pay is fixed and 

adjusted under subchapter IV of chapter 53 of 

title 5) and to retired and active military 

personnel 

FC 2.2 – 2.3 31 U.S.C. 669. Apportionment of 

contingent funds of departments to offices 

and bureaus (the following passage occurs 

in section 669 before the semicolon) 

In addition to the apportionment required by 

section 665 of this title, the head of each 

executive department shall, on or before the 

beginning of each fiscal year, apportion to 

each office or bureau of his department the 

maximum amount to be expended therefore 

during the fiscal year out of the contingent 

fund or funds appropriated for the entire year 

for the department, and the amounts so 

apportioned shall not be increased or 

diminished during the year for which made 

except upon the written direction of the head 

of the department, in which there shall be 

fully expressed his reasons therefore. 

Section 1513: 

(c) By the first day of each fiscal year, the head 

of each executive department of the United States 

Government shall apportion among the major 

organizational units of the department the 

maximum amount to be expended by each unit 

during the fiscal year out of each contingent fund 

appropriated for the entire year for the 

department. Each amount may be changed during 

the fiscal year only by written direction of the 

head of the department. The direction shall state 

the reasons for the change. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 46 

Chapter 3: Payment Management Processes

This Chapter will contain the flowcharts and process steps for the Payment Management 

processes listed below. These flows assume best practices in an electronic environment, 

sound internal controls and agency systems comply with OFFM Core financial system 

requirements. Policies, procedures, and requirements already covered in other authoritative 

guidance are not repeated in this document. The scope of this release for payment 

management does not include: micro-purchases, IPAC, travel, credit cards payments, 

payroll, employee awards, grants, cooperative agreements, reimbursable activity or loans. 

In addition, the standard process focuses on the financial aspects of payment management 

and does not address the procurement processes included in the overall business process.

The Payment Management processes that will be detailed in this document are:

• PM 3.1 . Ordering of Goods and Services

• PM 3.1.A . Funds Check Prior to Obligation

• PM 3.2 . Accounts Payable and Invoice Processes

• PM 3.3 . Receipt of Goods

• PM 3.4 . Acceptance of Services

• PM 3.5 . Disbursements: Bulk Files

• PM 3.6 . Disbursements: Small Volume and Next Day Payments

Chapter 4: Billing and A/R Processes

For future completion.

Chapter 5: Reporting Processes

For future completion.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 47 

Appendix A – FMLoB Vision and Business Approach

FMLoB Vision

The Financial Management Line of Business (FMLoB) Vision is to improve the cost, quality, and 

performance of financial management systems by leveraging shared services solutions and 

implementing government-wide reforms that foster efficiencies in Federal financial operations. The 

Office of Management and Budget (OMB) is the executive sponsor for the FMLoB initiative. The 

Financial Systems Integration Office (FSIO) has direct responsibility for completing priority projects 

under FMLoB. This document was prepared by FSIO in coordination with the Chief Financial 

Officers Council’s FSIO Oversight Transformation Team.

The FMLOB vision is built upon precepts that begin with standardization and transparency of 

forming the base for government financial improvement. To begin this improvement process, the 

FMLOB established the following “work streams” to begin addressing and defining standardization 

and transparency for financial operations:

1. Performance Measures: To develop performance measures (cost, quality, and timeliness) to 

assess the performance of financial services offered by a financial service organization.

2. Standard Business Processes: To develop data specifications and business rules for core financial 

management functions (e.g., funds management, payments, receipts, and reporting) to be adopted 

by all Federal agencies.

3. Common Government-wide Accounting Code Structure: To develop a common accounting 

structure used government-wide that includes an applicable set of definitions and the layout to

which Federal agencies’ new financial systems must adhere.

Under the FSIO structure, the FMLOB activities are lead by agency-sponsored teams working 

collaboratively with the broad Federal financial community. This community includes Federal 

financial policy organizations and organizations representing the financial community stakeholders. 

FMLoB Business Process Approach

The FMLoB Business Process work stream follows a standard approach in the development of each 

business process area. The FMLoB Business Process was developed through a collaborative effort of 

the Federal financial management community. The project objectives were to:

• Define the objectives of standard business process.

• Document the current business processes used within the 24 Chief Financial Officer Act agencies 

(the “as-is” environment).

• Determine which business processes should be included in the standard business process.

The FMLoB Business Process project was divided into four phases:

1. Project initiation.

2. Development of FMLoB Business Processes vision and draft proposal.

3. Validation of the FMLoB Standard Business Processes.

4. Issuance of an exposure draft of the proposed Standard Business Processes.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 48 

During the initial phase of the project, the sponsors were engaged to ensure that expectations were 

known, the project approach was acceptable, and requirements for government participation were 

defined.

The second phase established the vision for a Standard Business Processes that defined the objectives 

of developing a standard structure and its contribution to the goals of the FMLoB initiative. 

During the third phase, the draft proposal was refined and validated with three key stakeholder 

groups:

• Representatives of the 24 Chief Financial Officers Act agencies,

• Vendors of financial management systems, and

• Federal shared service providers.

From April through August 2006, FSIO conducted a number of workshops with program agencies 

and vendors to address payments and receipts, funds management, and reporting.

During the final phase of the project, the team began to develop the Financial Management Systems 

Standard Business Processes for U.S. Government Agencies document. This version is an exposure 

draft to be used to solicit further comment from the Federal financial management community before 

the FMLoB Standard Business Processes for Funds Control is adopted.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 49 

Appendix B – FMLoB Controlled Vocabulary

Term Definition Source2

Accounting 

Classification

A subset of the agency financial information 

classification. The accounting classification structure 

provides a means for categorizing financial 

information along several dimensions as needed to 

support financial management and reporting functions. 

The data elements an agency includes in its accounting 

classification structure will depend in part on the 

implementation strategy for the U.S. Standard General 

Ledger, data aggregation requirements for preparation 

of financial statements under the Chief Financial 

Officers Act, appropriation structure, and other 

reporting and management needs of the agency.

Joint Financial 

Management 

Improvement 

Program

Financial 

System 

Requirements;

http://www.fsio.

gov/fsio/fsiodata

/fsio_systemrequ

irements.shtml

Multiple sources

Agency The term "agency" means any executive department, 

military department, government corporation, 

government controlled corporation, or other 

establishment in the executive branch of the Federal 

government, or any independent regulatory agency. 

Within the Executive Office of the President, the term 

includes only OMB and the Office of Administration. 

OMB Circular 

A-130, 

Transmittal 

Memorandum 

No. 4, 

Management of 

Federal 

Information 

Resources 

(11/28/2000)

http://www.whit

ehouse.gov/omb/

circulars/a130/a1

30trans4.pdf

Allotment A subdivision of an apportionment made by an 

agency.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006)

http://www.whit

ehouse.gov/omb/

circulars/a11/cur

rent_year/a11_to

c.html

 

2 Sources are provided if available, otherwise the term definition was developed for clarification of terminology.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 50 

Term Definition Source2

Apportionment A distribution made by OMB of amounts available for 

obligation in an appropriation or fund account into 

amounts available for specified time periods, program, 

activities, projects, objects, or any combinations of 

these. The apportioned amount limits the obligations 

that may be incurred. An apportionment may be 

further subdivided by an agency into allotments, sub 

allotments, and allocations.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006) 

Appropriation A provision of law (not necessarily an Appropriation

act) authorizing the expenditure of funds for a given 

purpose. Usually, but not always, an appropriation 

provides budget authority.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006)

Budget The Budget of the United States Government setting 

forth the President’s comprehensive financial plan for 

allocating resources. The Government uses the budget 

system to allocate resources among its major functions 

and individual programs. The budget process has three 

main phases: formulation, congressional action on the 

budget, and execution. 

FASAB 

Statement of 

Federal 

Financial 

Accounting 

Standards No. 

24

http://www.fasa

b.gov/pdffiles/sf

fas-24.pdf

Budget Authority The authority provided by law to incur financial 

obligations that will result in outlays. Specific forms 

of budget authority include Appropriation, borrowing 

authority, contract authority, and spending authority 

from offsetting collections.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006) 

Budget Execution Includes Funds Control and provides features to 

record, distribute, and control budget authority and 

spending in accordance with the provisions of OMB 

Circular A-11, Part 4, Instructions on Budget 

Execution. Budget execution provides the ability to 

track the effects of financial events on the sources and 

uses of budgetary resources authorized by the 

President and Congress. Its primary purpose is to 

ensure that spending does not exceed funds 

appropriated or authorized.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006) 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 51 

Term Definition Source2

Budget Formulation During this phase of the budget cycle, the Executive 

Branch prepares the President's budget. OMB and the 

Federal agencies begin preparing the next budget 

almost as soon as the President has sent the last one to 

Congress. OMB officially starts the process by 

sending planning guidance to Executive Branch 

agencies in the Spring. The President completes this 

phase by sending the budget to Congress on the first 

Monday in February, as specified in law, although 

occasionally Presidents have sent it later for various 

reasons. 

OMB Circular 

A-11,

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006)

Carryover Funding collected in one fiscal year that was not 

obligated and is available to be used to meet 

requirements in the next fiscal year.

Treasury 

Directive: 31-04

http://www.treas

.gov/regs/td31-

04.htm

Commitment A commitment is an administrative reservation of 

funds that have not yet been obligated. Agencies use 

commitment accounts for the internal control of 

budgetary resources and to help prevent unauthorized 

use of available resources.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006) 

Disbursements Amounts paid out by Federal agencies during the 

fiscal year. This term is used interchangeably with the 

term outlay.

Treasury 

Financial 

Manual, 

Supplement to 

Volume I

http://www.fms.t

reas.gov/TFM/

Enterprise 

Architecture

A strategic information asset base that defines the 

business, information necessary to operate the 

business, technologies necessary to support the 

business operations, and transitional processes for 

implementing new technologies in response to the 

changing needs of the business.

Federal 

Enterprise 

Architecture 

Framework, 

V.1.1, Federal 

Chief 

Information 

Officers

Council, 

September 1999

http://www.cms.

hhs.gov/Enterpri

seArchitecture/0

2_FEAF.asp
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 52 

Term Definition Source2

Federal Enterprise 

Architecture (FEA)

To facilitate efforts to transform the Federal 

Government to one that is citizen-centered, resultsoriented, and market-based, OMB is developing the 

Federal Enterprise Architecture, a business-based 

framework for Government-wide improvement.

The FEA is being constructed through a collection of 

interrelated “reference models” designed to facilitate 

cross-agency analysis and the identification of 

duplicative investments, gaps, and opportunities for 

collaboration within and across Federal agencies. 

Federal 

Enterprise 

Architecture 

Program 

Management 

Office 

http://www.whit

ehouse.gov/omb/

egov/a-1-

fea.html

Federal Enterprise 

Architecture 

Business Reference 

Model (BRM)

The BRM is a function-driven framework for 

describing the Lines of Business and internal functions 

performed by the Federal Government independent of 

the agencies that perform them. The BRM serves as 

the business layer of the Federal Enterprise 

Architecture. It provides a foundation on which the 

applications, data, and technology layers of the FEA 

are developed. Agency Capital Asset Plans (Exhibit 

300s that accompany an agency’s budget submission) 

will be mapped against this framework to identify 

opportunities for cross-agency collaboration and 

potential system redundancies.

OMB Circular 

A-11, 

Preparing, 

Executing, and 

Submitting the 

Budget

(6/30/2006)

Federal Enterprise 

Architecture 

Framework

The Federal Enterprise Architecture Framework 

(FEAF) provides an organized structure and a 

collection of common terms by which Federal 

segments can integrate their respective architectures 

into the Federal Enterprise Architecture.

Federal 

Enterprise 

Architecture 

Framework, 

V.1.1, Federal 

Chief 

Information 

Officers

Council, 

September 1999

Federal Payment Any payment made by an agency. The term includes, 

but is not limited to: (1) Federal wage, salary, and 

retirement payments; (2) vendor and expense 

reimbursement payments; (3) benefit payments; and 

(4) miscellaneous payments including, but not limited 

to, interagency payments; grants; loans; fees; 

principal, interest, and other payments related to 

United States marketable and nonmarketable 

securities, overpayment reimbursements; and 

payments under Federal insurance or guarantee 

programs for loans.

Treasury Green 

Book (Guide to 

Federal ACH 

[Automated 

Clearing House] 

Payments and 

Collections)

http://www.fms.t

reas.gov/greenbo

ok/index.html
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 53 

Term Definition Source2

Financial 

Accounting

A branch of accounting. The most noteworthy 

interpretations or classifications are those about which 

data pertain to the past and which pertain to the future. 

In other words, financial accounting is largely 

concerned with assigning the value of past 

transactions to appropriate time periods.

FASAB, 

Statement of 

Federal 

Financial 

Accounting 

Concepts No. 1: 

Objectives of 

Federal

Financial 

Reporting

http://www.fasa

b.gov/pdffiles/sf

fac-1.pdf

Financial Event or 

Activity

Any occurrence having financial consequences to the 

Federal government related to the receipt of 

Appropriation or other financial resources; acquisition 

of goods or services; payments or collections; 

recognition of guarantees, benefits to be provided, or 

other potential liabilities; or other reportable financial 

activities.

OMB Circular 

A-127, Financial 

Management 

Systems 

(7/23/1993)

http://www.whit

ehouse.gov/omb/

circulars/a127/a1

27.html

http://www.whit

ehouse.gov/omb/

memoranda/fy20

05/m05-02.html

Financial 

Management 

Systems

Financial systems and the financial portions of mixed 

systems necessary to support financial management, 

including manual or automated processes, procedures, 

controls, hardware, software and support personnel. 

Financial systems include an information system, 

comprised of one or more applications, that is used for 

(1) collecting, processing, maintaining, transmitting or

reporting data about financial events; (2) supporting 

financial or budgeting activities; (3) accumulating and 

reporting cost information, or: (4) supporting the 

preparation of financial statements. 

Federal 

Financial 

Management 

Improvement 

Act (FFMIA)

http://frwebgate.

access.gpo.gov/c

gibin/getdoc.cgi?d

bname=104_con

g_public_laws&

docid=f:publ208

.104.pdf

OMB Circular 

A-127, Financial 

Management 

Systems 

(07/23/1993)
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 54 

Term Definition Source2

Financial System An information system, comprised of one or more 

applications, that is used for any of the following:

collecting, processing, maintaining, transmitting, and 

reporting data about financial events;

supporting financial planning or budgeting activities;

accumulating and reporting cost information; or

supporting the preparation of financial statements.

A financial system supports the financial functions 

required to track financial events, or provide financial 

information significant to the financial management of 

the agency, and/or required for the preparation of 

financial statements. A financial system encompasses 

automated and manual processes, procedures, controls, 

data, hardware, software, and support personnel 

dedicated to the operation and maintenance of system 

functions. A financial system may include multiple 

applications that are integrated through a common 

database or are electronically interfaced, as necessary, 

to meet defined data and processing requirements.

FFMIA; OMB 

Circular A-127, 

Financial 

Management 

Systems 

(07/23/1993)
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 55 

Information Security The protection of information and information systems 

from unauthorized access, use, disclosure, disruption, 

modification, or destruction in order to provide: (1) 

integrity, which means guarding against improper 

information modification or destruction, and includes 

ensuring information nonrepudiation and authenticity; 

(2) confidentiality, which means preserving authorized 

restrictions on access and disclosure, including means 

for protecting personal privacy and proprietary 

information; and (3) availability, which means 

ensuring timely and reliable access to and use of 

information.

Federal

Information 

Security 

Management 

Act of 2002

http://frwebgate.

access.gpo.gov/c

gibin/getdoc.cgi?d

bname=107_con

g_public_laws&

docid=f:publ347

.107.pdf (See 

title III)

Information System A discrete set of information technology, data, and 

related resources, such as personnel, hardware, 

software, and associated information technology 

services organized for the collection, processing, 

maintenance, use, sharing, dissemination or 

disposition of information.

OMB Circular

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006) 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 56 

Information 

Technology

Any equipment, or interconnected system(s) or 

subsystem(s) of equipment, that is used in the 

automatic acquisition, storage, manipulation, 

management, movement, control, display, switching, 

interchange, transmission, or reception of data or 

information by the agency.

Federal 

Acquisition 

Regulation

2.101

http://www.acqu

isition.gov/far/in

dex.html

Internal Control A subset of management controls are the internal 

controls used to assure that there is prevention or 

timely detection of unauthorized acquisition, use, or 

disposition of the entity's assets.

OMB Circular 

A-123, 

Management’s 

Responsibility 

for Internal 

Control (Revised 

12/21/2004) 

http://www.whit

ehouse.gov/omb/

circulars/a123/a1

23_rev.pdf

Internal Control over 

Financial Reporting

Process for assessing the effectiveness of an entity’s 

internal control over financial reporting.

OMB Circular 

A-123, 

Management’s 

Responsibility 

for Internal 

Control, 

Appendix A

(Revised 

12/21/2004)

Management 

Controls

Management controls are the organization, policies, 

and procedures used by agencies to reasonably ensure 

that (1) programs achieve their intended results; (2) 

resources are used consistent with agency mission; (3) 

programs and resources are protected from waste, 

fraud, and mismanagement; (4) laws and regulations 

are followed; and (5) reliable and timely information 

is obtained, maintained, reported and used for decision 

making.

Management controls, in the broadest sense, include 

the plan of organization, methods and procedures 

adopted by management to ensure that its goals are 

met. Management controls include processes for 

planning, organizing, directing, and controlling 

program operations. 

OMB Circular 

A-123, 

Management’s 

Responsibility 

for Internal 

Control (Revised 

12/21/2004) 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 57 

Managerial Cost 

Accounting

Managerial cost accounting should be a fundamental 

part of the financial management system and, to the 

extent practicable, should be integrated with other 

parts of the system. Managerial costing should use a 

basis of accounting, recognition, and measurement 

appropriate for the intended purpose. Cost information 

developed for different purposes should be drawn 

from a common data source, and output reports should 

be reconcilable to each other

FASAB, SFFAS 

No. 4: 

Managerial Cost 

Accounting 

Standards and 

Concepts 

http://www.fasa

b.gov/pdffiles/sf

fac-1.pdf

Outlay Outlay means a payment to liquidate an obligation 

(other than the repayment of debt principal). Outlays 

generally are equal to cash disbursements but also are 

recorded for cash-equivalent transactions, such as the 

subsidy cost of direct loans and loan guarantees, and 

interest accrued on public issues of the public debt. 

Outlays are the measure of Government spending.

OMB Circular 

A-11, 

Preparation, 

Submission and 

Execution of the 

Budget 

(6/30/2006)

Payment A government disbursement of monies to any payee, 

including vendors, employees, private citizens, state, 

local and foreign governments) in accordance with 

contract terms. The payment management function 

consists of the following processes: payee information 

maintenance, payment warehousing, payment 

execution, and payment confirmation and follow-up. 

Treasury 

Financial 

Manual

Program Generally defined as an organized set of activities 

directed toward a common purpose or goal, 

undertaken or proposed by an agency in order to carry 

out its responsibilities. In practice, however, the term 

has many uses and thus does not have a well-defined, 

standard meaning in the legislative process. It is used 

to describe an agency’s mission, programs, functions, 

activities, services, projects, and processes.

Shared Services Shared services is a bringing together of functions that 

are frequently duplicated across component agencies, 

and delivering these services more efficiently and with 

a customer service orientation. It is the focus on the 

customer service aspect of the process that 

distinguishes the shared services model from the 

concept of consolidation. The focus is on the 

customers because they demand the best quality, 

timely, accurate and reliable product(s) attainable. 

Sharing services leads to the elimination of 

redundancies. The concurrent redesign of accounting 

processes, organizations and supporting systems leads 

to radical improvements in time, cost, quality and user 

satisfaction in regard to the service provided.
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 58 

Single Integrated

Financial

Management System 

A unified set of financial systems and the financial 

portions of mixed systems (e.g., acquisition) 

encompassing the software, hardware, personnel, 

processes (manual and automated), procedures, 

controls, and data necessary to carry out financial 

management functions, manage the financial 

operations of the agency, and report on the agency’s 

financial status to central agencies, Congress, and the 

public.

OMB Circular 

A-127, Financial 

Management 

Systems 

(7/23/1993)

Treasury Financial 

Manual

Guidance issued by the Department of the Treasury 

containing procedures to be observed by all agencies, 

Federal Reserve Banks, and financial institutions with 

respect to payments, collections, central accounting, 

financial reporting, and other government-wide fiscal 

responsibilities of the Treasury.

Treasury Green 

Book, Glossary

United States 

Standard General 

Ledger (USSGL)

A uniform list of accounts that support transactions 

that standardizes Federal agency accounting and 

supports the preparation of standard external reports. 

The U.S. Government Standard General Ledger Chart 

of Accounts (1) provides control over all financial 

transactions and resource balances, (2) satisfies basic 

reporting requirements of OMB and Treasury, and (3) 

integrates proprietary and budgetary accounting.

Treasury 

Financial 

Manual, Volume 

I

USSGL Account: An account, within the uniform chart of accounts used 

by Federal agencies to record budgetary and 

proprietary accounting transactions.

Treasury 

Financial 

Manual, 

Supplement to 

Volume I
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 59 

Appendix C – Financial Management Laws and 

Regulations

Federal laws deal with the appropriation of monies to agencies from Congress, including the 

appropriate use and control of these monies. Various statutes deal with the purpose, amount, and 

time of Appropriation, as well as the availability of the associated monies. 

The Office of Management and Budget (OMB) and the Department of the Treasury usually issue 

guidance or regulations for implementing financial management legislation. 

Detailed information about Federal laws and regulations may be obtained from the following 

websites:

Public Laws

http://thomas.loc.gov and 

http://www.gpoaccess.gov/plaws/index.html

Code of Federal Regulations, Title 31, Money and Finance

http://www.access.gpo.gov/uscode/title31/title31.html

Office of Management and Budget, Office of Federal Financial Management

http://www.whitehouse.gov/omb/financial/index.html

Department of the Treasury, Financial Management Service

http://www.fms.treas.gov

Federal Accounting Standards Advisory Board

http://www.fasab.gov

Following is a summary of the key financial management legislation and regulations relating to 

Funds Control. 

U.S. Constitution

Article I, Section 9

“No Money shall be drawn from the Treasury, but in Consequence of Appropriation made by Law, 

and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be 

published from time to time.”

Budget and Accounting Act of 1921

Public Law 67-13

Ch. 18, 42 Stat. 20

This law, which serves as the basis for modern financial management legislation, centralized the 

budget process. In the past, budget matters had been assigned to a variety of congressional 

committees and no central control existed. The law provided for the following: 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 60 

• Created the Bureau of the Budget; its director was to be a presidential appointee. The bureau 

was originally part of the Treasury Department, but later was transferred to the Executive 

Department and finally became the Office of Management and Budget. 

• Required that the Director of the Budget (now Director of the Office of Management and 

Budget) examine all budget requests from Congress, seek economies, and remove duplicates. 

• Required the president to submit a budget proposal and a statement of the government’s 

financial condition to Congress annually. 

• Established the General Accounting Office (now the Government Accountability Office) to 

conduct audits of government accounts. 

Anti-deficiency Act of 1921 and Anti-Deficiency Act of 1950

Public Law 81-784

US Code Title 31, Section 1341-42; 1511-1519 

The Anti-Deficiency Act of 1921: (1) prohibits the obligation or expenditure of government funds in 

excess of the amounts appropriated by Congress or in excess of amounts permitted by regulations; 

(2) forbids the obligation of any funds in advance of the official appropriation of funds; and (3) 

requires the head of each government agency to establish an administrative control system for the 

purposes of keeping obligations within the amount of apportionment, and enabling the agency to 

detect and report violations of the Anti-Deficiency Act through the Executive Branch to Congress.

The 1921 Anti-Deficiency Act was amended in 1950. In the amendment, provisions pertaining to 

apportionment ensure that Appropriation available for a fiscal year are not obligated at a rate that 

would exhaust the appropriation before the end of the period for which the appropriation is made. 

Exhausting an appropriation may result in a need for a deficiency or supplemental appropriation, or 

an increase in the authorization for administrative expenses of a corporation, or in drastic curtailment 

of the activity for which the appropriation or authorization is made. 

Congress made major revisions to the 1950 Anti-Deficiency Act under the Congressional Budget and 

Impoundment Control Act of 1974. The revised act encourages agencies to set aside reserves for 

unanticipated expenses and prohibits agencies from obligating more budget authority than is 

provided in law. Certain adjustments (e.g., a rescission) may be made to cancel or reduce budget 

authority after it has been enacted into law. The revised law sanctions supplemental Appropriation

only for legislation enacted after the President's Budget is submitted, as well as for emergencies 

related to the preservation of human life and property. 

Budget and Accounting Procedures Act of 1950

Ch. 946, 64 Stat. 832 Public Law 784, 81st Congress (64 Stat. 832)

This Act revamped the Budget and Accounting Act of 1921. Its budget provisions presented the 

financial program of the Government in simpler and more meaningful terms, providing the basis for 

a better evaluation of Government programs and activities. The accounting and auditing provisions 

laid the foundation for far-reaching improvements and simplification. For the first time, clear-cut 

legislation assigned responsibility for accounting, auditing, and financial reporting in the 

Government. 

This law was the forerunner of the Federal Manager’s Financial Integrity Act of 1982. It placed the 

responsibility for establishing and maintaining adequate systems of accounting and internal control 

upon the head of each executive agency. It required that systems must conform to the accounting 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 61 

principles, standards, and related requirements prescribed by the Comptroller General of the United 

States. The law required the Department of the Treasury to render overall Government financial 

reports to the President, the Congress and the public. Each agency was required to furnish the 

Secretary of the Treasury with reports and information relating to the agency's financial condition 

and operations as the Secretary may require for effective performance. The Secretary's 

responsibilities include the system of central accounting and financial reporting for the Government.

Debt Collection Act of 1982 and Debt Collection Improvement Act of 1996

These Acts require proper collection of debts, to authorize the compromise or suspension of some 

debts, and to authorize the use of certain collection tools that are available in the private sector. The 

use of electronic payment and offset methods is required.

OMB Guidance:

OMB Circular A-129, Managing Federal Credit Programs (11/2000) 

This Circular prescribes policies and procedures for justifying, designing, and managing Federal 

credit programs, and for collecting non-tax receivables. It sets principles for designing credit 

programs, including: 

• Preparation and review of legislation and regulations; 

• Budgeting for the costs of credit programs and minimizing unintended costs to the Government; 

and 

• Improving the efficiency and effectiveness of Federal credit programs. 

Circular A-129 also sets standards for extending credit, managing lenders participating in 

Government guaranteed loan programs, servicing credit and non-tax receivables, and collecting 

delinquent debt.

Federal Managers' Financial Integrity Act (FMFIA) of 1982

Public Law 97-255

The Federal Managers' Financial Integrity Act of 1982 amended earlier legislation to strengthen 

internal control and accounting systems throughout the Federal Government and to help reduce 

fraud, waste, abuse, and misappropriation of federal funds. FMFIA requires Agency heads to 

establish controls that reasonably ensure:

• Obligations and costs are in compliance with applicable law;

• Funds, property, and other assets are safeguarded against waste, loss, unauthorized use or 

misappropriation; and

• Revenues and expenditures are properly recorded and accounted for.

FMFIA holds agency managers accountable for correcting noted deficiencies and requires that 

agencies annually identify and report internal control and accounting system problems and planned 

remedies. The act also requires that OMB establish, in consultation with the Comptroller General, 

guidelines that the agencies shall follow in evaluating their systems of internal accounting and 

administrative control. 

OMB Guidance:
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 62 

OMB Circular A-123, Management’s Responsibility for Internal Control (Revised 12/21/2004), is 

the primary vehicle for implementing FMFIA in the executive branch and describes internal control 

requirements. 

http://www.whitehouse.gov/omb/circulars/a123/a123_rev.html

OMB Circular A-136, Financial Reporting Requirements, provides instructions for reporting on 

internal controls. As part of these reporting requirements, agencies also report annually on whether 

their accounting systems comply with the provisions of Circular OMB A-127, Financial Management 

Systems. 

http://www.whitehouse.gov/omb/circulars/a123/a123_rev.html

OMB Circular A-127 prescribes policies and standards for agencies to follow in developing, 

operating, evaluating, and reporting on financial management systems generally.

http://www.whitehouse.gov/omb/circulars/a127/a127.html

http://www.whitehouse.gov/omb/memoranda/fy2005/m05-02.html

Chief Financial Officers Act of 1990

Public Law 101-576

The Chief Financial Officers Act of 1990 sets expectations for agencies to develop and deploy 

modern financial management systems to routinely produce accurate, reliable, and timely program 

cost information; and to develop results-oriented reports on the government's financial condition. 

This Act laid the foundation for significant financial management reform in the Federal Government 

by emphasizing strong financial leadership, improved systems of accounting, financial management 

and internal control, and reliable financial information. Key provisions include:

• Strong financial management leadership: Established the OMB Deputy Director for Management 

position to coordinate and supervise OMB's general management functions; the Office of Federal 

Financial Management, headed by a Controller, to carry out specified financial management 

functions; Chief Financial Officer (CFO) and Deputy CFO positions in major agencies to provide 

financial management direction; and the Chief Financial Officers Council to coordinate financial 

management matters

• Enhanced financial management systems: Requires agency CFOs to develop and maintain 

agency financial management systems that comply with applicable accounting principles, 

standards, and requirements, internal control standards, and requirements of OMB and Treasury 

that enable systems to report cost information, integrate accounting and budgeting, and 

systematically measure performance.

• Improved financial information: Requires the preparation and audit of financial statements of the 

agencies covered by the Act and revised the procedures for the audit of financial statements of 

Government corporations. 

OMB Guidance:

Circular A-123, Management’s Responsibility for Internal Control

Circular A-127, Financial Management Systems
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 63 

Circular A-130, Management of Federal Information Resources

http://www.whitehouse.gov/omb/circulars/a130/a130trans4.pdf

OMB re-issued Circular A-130 in revised form in December 2000 as Transmittal Memorandum No. 

4. The expanded version of A-130 provides guidance on the Paperwork Reduction Act, the ClingerCohen Act, the CFO Act, and others. This includes the requirement for all electronic systems, 

including financial management systems, to have a defined association with the agency’s enterprise 

architecture.

The circular provides specific guidance on collecting and managing information and records 

management, including:

• Electronic information collection;

• Provision of information to the public;

• Information dissemination systems; and

• Information safeguards.

It further mandates agencies to establish a capital planning and investment control process (CPIC) 

that links information technology investments to improved mission performance. The CPIC also 

establishes the links among agency processes including strategic planning, IT planning, enterprise 

architecture integration, performance planning, financial management planning pursuant to the Chief 

Financial Officers Act of 1990, and budget formulation and execution. 

Circular A-136, Financial Reporting Requirements

Federal Accounting Standards Advisory Board (FASAB)

http://www.fasab.gov

To bolster the CFO Act, in 1990 the Director of OMB, Secretary of the Treasury, and Comptroller 

General of the United States, the three officials responsible for Federal financial reporting, 

established the FASAB to recommend accounting standards and principles for the United States 

Government.

The FASAB develops and recommends Statements of Federal Financial Accounting Standards 

(SFFAS) for use by the federal government. Once adopted by OMB, these standards serve as

Generally Accepted Accounting Principles for Federal governmental entities.

The accounting standards that have resulted from FASAB’s work are central to effectively meeting 

financial management improvement goals of the CFO Act and other legislation. In particular, 

FASAB’s standards for managerial cost accounting, as described in SFFAS No. 4, are a primary 

source of guidance. This and other FASAB standards foster financial information and reporting that 

is understandable, relevant, and reliable concerning the financial position, activities, and results of 

operations for the Federal Government and its departments and agencies. Furthermore, the standards 

prescribe accounting systems and internal control that help demonstrate that Federal programs are 

conducted in compliance with laws and regulations.

Government Performance and Results Act (GPRA) of 1993

Public Law 103-62
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 64 

The Government Performance and Results Act (GPRA) changed the Federal Government's 

budgeting and policymaking mechanisms by shifting managerial emphasis to actual program 

execution and comparison of results with desired outcomes. This legislation promotes a focus on 

results, service, quality, and customer satisfaction and holds federal agencies accountable for 

achieving program results and requires them to identify missions, set goals, measure performance, 

and report on their accomplishments.

Under GPRA, each federal agency must develop and submit a multi-year strategic plan, which 

contains the agency’s mission statements and long-term strategic goals. Agencies must also submit 

annual performance plans, which include performance goals linked to the budget and indicators of 

how performance will be measured. Annual performance reports, also required under the Act, 

provide information on the extent to which the agency met its annual performance goals.

OMB Guidance:

OMB Circular A-11, Preparation, Submission and Execution of the Budget

http://www.whitehouse.gov/omb/circulars/a11/current_year/a11_toc.html

Government Management Reform Act (GMRA) of 1994 and Federal Financial Management 

Act (FFMA) of 1994

Public Law 103-356

The Government Management Reform Act of 1994 and the Federal Financial Management Act of 

1994 expanded financial statement audit coverage to include Department-wide and Governmentwide audited financial statements. This legislation mandated statutory requirements for reports to 

Congress, the use of electronic funds transfers for payments, and the submission of annual audited 

financial statements to the Director of OMB. The Chief Financial Officers Act was expanded under 

GMRA to require the 24 agencies responsible for 99 percent of Federal spending to prepare annual 

audited financial statements. It also requires the Department of the Treasury to produce a 

consolidated financial statement for the Federal Government, which the Government Accountability 

Office is to audit annually. 

OMB Guidance:

Circular A-136, Financial Reporting Requirements

Paperwork Reduction Act of 1995

Public Law 104-13

The Paperwork Reduction Act of 1995 applies life-cycle management principles to information 

management and focuses on reducing the government's information-collection burden. It designates 

senior information resources manager positions in the major departments and agencies with 

responsibility for a wide range of functions. The Act also created the Office of Information and 

Regulatory Affairs within OMB to provide central oversight of information management activities 

across the federal government. 

OMB Guidance:

Circular A-130, Management of Federal Information Resources
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 65 

Clinger-Cohen Act of 1996

Public Law 104-106

The Clinger-Cohen Act of 1996 (formerly the Information Technology Management Act of 1995) 

repeals Section 111 of the Federal Property and Administrative Services Act of 1949 (40 USC 759), 

often referred to as the Brooks Act, which gave the General Services Administration exclusive 

authority to acquire computer resources for all of the Federal Government. Clinger-Cohen assigns 

overall responsibility for the acquisition and management of information technology (IT) in the 

Federal Government to the Director of OMB. It also gives authority to acquire IT resources to the 

head of each executive agency and makes them responsible for effectively managing their IT

investments. 

Among other provisions, the Act requires agencies to: 

• Base decisions about IT investments on quantitative and qualitative factors associated with 

the costs, benefits, and risks of those investments 

• Use performance data to demonstrate how well the IT expenditures support improvements to 

agency programs 

• Appoint Chief Information Officers to carry out the IT management provisions of the act and 

the broader information resources management requirements of the Paperwork Reduction 

Act. 

• Develop and maintain an integrated system architecture to help (1) ensure an agency invests 

only in integrated, enterprise-wide business solutions and (2) move resources away from nonvalue added legacy business systems and nonintegrated system development efforts. 

OMB Guidance:

OMB Circular A-11, Preparation, Submission and Execution of the Budget (6/30/06) 

OMB Circular A-127, Financial Management Systems (07/23/1993) 

This circular augments FFMIA by specifically mandating that federal agencies implement integrated 

core accounting and financial management systems. To be fully integrated, the system must address:

• Standard data classification (both data and format);

• Common processes for handling similar accounting events;

• Consistent internal control mechanisms; and

• Elimination of duplicate transaction entry.

It incorporates, by reference, Circulars A-123, Management’s Responsibility for Internal Control and 

A-130, Management of Federal Information Resources, as well as all Federal financial management 

systems requirements published by JFMIP / FSIO.

OMB Circular A-130, Management of Federal Information Resources (11/28/2000)

Federal Financial Management Improvement Act (FFMIA) of 1996

Public Law 104-208

The Federal Financial Management Improvement Act of 1996 requires agencies to implement and 

maintain systems that substantially comply with (1) Federal accounting standards, (2) the United 

States Government Standard General Ledger (USSGL) at the transaction level, and (3) Federal 

financial management systems requirements. In addition, the FFMIA requires agencies’ auditors to 

report whether agency systems comply with FFMIA’s systems requirements. Agencies that 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 66 

determine their systems do not substantially comply must develop and submit remediation plans to 

OMB.

Circular A-127

Circular A-130, Appendix III

Circular A-136, Financial Reporting Requirements

JFMIP’s Federal Financial Management Systems Requirements

Reports Consolidation Act of 2000

Public Law 106-531

The Reports Consolidation Act of 2000 authorizes the consolidation of certain financial and 

performance management reports required of federal agencies. This law streamlines reporting 

requirements by allowing each agency to submit a consolidated financial and performance report 

within 180 days of the ends of fiscal years 2000 and 2001, and within 150 days of the end of every 

fiscal year after that. 

OMB Guidance:

Circular A-136, Financial Reporting Requirements

Accountability of Tax Dollars Act of 2002

Public Law 107-289

http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=107_cong_public_laws&docid=f:publ289.107.pdf

This Act requires virtually all Federal agencies to prepare financial statements and have them 

audited. It also amends the Reports Consolidation Act of 2000 by requiring agencies to combine 

financial and performance reports into an annual Performance and Accountability Report, which 

must be published by November 15 of each year for the preceding fiscal year. 

OMB Guidance:

Circular A-136, Financial Reporting Requirements

Federal Information Security Management Act (FISMA) of 2002

(Public Law 107-347, Title III) 

This law reiterates security requirements contained in existing OMB policies and in Federal laws 

such as the Computer Security Act of 1987, the Paper Reduction Act of 1995, and Clinger-Cohen 

Act of 1996. The Act mandates that federal agencies implement an information security program and 

designate a senior information security officer. FISMA also established evaluation and reporting 

requirements that requires each agency to report any significant deficiencies and an information 

security policy, procedure or practice. If relating to financial management systems as a lack of 

substantial compliance with FFMIA. 

OMB Guidance:
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 67 

Circular A-130, Management of Federal Information Resources

Title 5 Provisions for Overtime Pay

Overtime (or premium) pay provided under Title 5, United States Code, is pay for hours of work 

officially ordered or approved in excess of 8 hours in a day or 40 hours in an administrative 

workweek.

Under 5 U.S.C. 5547(a) and 5 CFR 550.105, premium pay cannot be paid to General Schedule 

employees (including law enforcement officers and other covered employees) to the extent that 

doing so would cause an employee’s basic pay, overtime pay, the dollar value of compensatory 

time off, night pay, annual premium pay, Sunday premium pay, and holiday premium pay to 

exceed the greater of the biweekly rate for—

(1) GS-15, step 10 (including any applicable special salary rate or locality rate of pay),

 or

(2) level V of the Executive Schedule. 
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 68 

Appendix D - Contributors

The following individuals and organizations contributed to the development of the Funds Control 

Exposure Draft:

FEDERAL AGENCIES:

Department of Commerce Karen McBride

Antonio Emanuel (Bureau of the Census)

Department of Defense Bruce Brown

Department of Education Sylvester Osineme 

Anthony Robinson

Environmental Protection Agency Valerie Chun

General Services Administration 

Financial Systems Integration Office

Mary Mitchell

Terry Gricher

Denis Gusty

Keith Thurston

Doris Chew (doris.chew@gsa.gov 

202.219.0528)

Dale Miller (dale.miller@gsa.gov 

202.219.0543)

Michael Ploen (Michael.ploen@gsa.gov 

202.219.0529)

Department of Housing & Urban Development Irene Aggrey

National Aeronautics and Space Administration MelaJo Kubacki 

Chandran Pillai

Office of Management and Budget Adam Goldberg 

David Alekson

Billy Mea 

Social Security Administration Kristina Poist

Department of Transportation Joanne Choi

Mike Hammer (Federal Aviation Administration)

J.B. Morgan (Federal Aviation Administration)

Meredith Parcila

Blanca Tovias (Federal Aviation Administration)

Department of the Treasury Holden Hogue (Financial Management Service)

Department of Veterans Affairs Bonnie Duncan

NON-FEDERAL

Accenture

Booz Allen Hamilton

CGI Federal

Deloitte & Touche

DSG

IBM

Oracle

SAP

Savantage
Funds Control Exposure Draft V1.0.doc DRAFT - 3/9/2020 69