Warner Robins Air Logistics Center People First…Mission Always Propriety of Funds/ Fiscal Law 1.

Warner Robins Air Logistics Center

People First…Mission Always

Propriety of Funds/Fiscal Law

1


People First…Mission Always 2

General Limitations

Purpose

Time

Amount



Purpose

Article 1 of the Constitution grants Congress the power of the purse

• “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law…”

The Purpose Statute (31 USC section1301)• “Appropriations shall be applied only for the objects for

which the appropriations were made except as otherwise provided by law.”

Comptroller General Decisions• Principles of Federal Appropriations Law “The Red

Books”• www.GAO.gov



Three-Part Test For Purpose

34 Comp. Gen. 195 (1954), “Necessary Expense Rule”The expenditure of an appropriation must be for a

particular statutory purpose, or necessary and incident to proper execution of the general purpose of the appropriation

The expenditure must not be prohibited by lawThe expenditure must not be otherwise provided for; it

must not fall within the scope of some other appropriation



Time

The Time Rule• An appropriation is available only for a certain time, after

which the authority to obligate expires“Bona Fide Need Rule” (31 USC section 1502)

• “The balance of a fixed-term appropriation is available only for payment of expenses properly incurred during the period of availability or to complete contracts properly made within that period.”

National Defense Authorization Act for FY1998 (10 USC section 2410a)

• Allowed DoD agencies to obligate funds in the current year to finance any severable service contract with a period of performance that does not exceed one year



Time

Maintenance & Repair Contracts• The government may obligate current funds for one-time

maintenance and repair contracts near the end of the fiscal year, even if performance does not begin until he next fiscal year

• Two conditions apply:–The requirement must represent a bona fide need of the current fiscal year

–The contract should contain a specific provision requiring that the work actually start on or before January 1 of the following fiscal year



Amount

Congressional Power of the Purse• Congress determines how much the government may

spend through the enactment of:–Appropriations

• Which establish ceilings on spending, or –Earmarking

• Which sets aside a part of a more general lump-sum appropriation for a particular purpose, as either a maximum, minimum, or both

• Congressional language–“not to exceed”–“shall be available only”–“not less than”–“shall be available exclusively”



Amount

Anti-Deficiency Act (31 USC sections 1341, 1342, & 1517)

• An officer or employee of the United States may not:– make or authorize an expenditure or obligation that exceeds an appropriation or an apportionment

–make or authorize an expenditure or obligation in advance of an appropriation, unless authorized by law

–accept voluntary services except to save human life or prevent property damage

–make or authorize an expenditure or obligation that exceeds an apportionment or reapportionment, or in excess of the amount specified in a formal subdivision of funds in accordance with agency regulations



Colors of Money



Types of Obligation Authority

Two different types• Appropriated

–Central Procurement–Research, Development, Test & Evaluation–Operations & Maintenance

• Working Capital Funds – “Revolving Funds”–Supply Management Activity Group (SMAG)

• Materiel Support Division (MSD)

»Buy, Repair & Operating• General Support Division (GSD)

–Depot Maintenance Activity Group (DMAG)–Transportation Working Capital Fund (TWCF)



Types of Air Force Appropriations

11

APPROPRIATION TITLE FUND CODE AVAILABILITY

3010 Aircraft Procurement 11 3

3011 Munitions Procurement

H8 3

3020 Missile Procurement 15 3

3080 Other Procurement 17 3

3300 Military Construction 25 5

3400 Operations & Maintenance

30 1

3500 Military Personnel 32 1

3600 RDT&E 29 2

3740 AFRC O&M 54 1

3840 ANG O&M 58 1

4930 WCF Various (64, 6E, 6P) X



Availability of Appropriations During FY10

12

1 Year 3400

2 Year 3600

5 Year 3300

3 Year3010, 3020

3080

10 09 08 07 06 01 0004 03 0205

Current/Active: Available for new obligations

Expired: Available to adjust obligations already incurred

Canceled: Accounts canceled. Obligations or adjustments that would otherwise be chargeable to these

years must be charged to active funds



3010Budget Program Activity Codes

(BPACs)

100000 – Aircraft Weapon System110000 – Modifications120000 – Aircraft Common Support Equipment *130000 – Post Production Charges150000 – Aircraft Replenishment Spares **160000 – Aircraft Initial Spares & Repair Parts ***190000 – Miscellaneous Production Charges

* BP12 requirements costing less than $250K per unit were transferred to the O&M appropriation in FY06 (Will be revised in FY11)

** BP15 requirements are now submitted through the MSD Initial Spares Budget*** There are two types of BP16, Reimbursable & Exempt




(BPACs)

350000 – Procurement of Ammunition, Air Force360000 - Reimbursement




(BPACs)

200000 – Missile Weapon System210000 – Modification220000 – Missile Support Equipment230000 – Space Programs240000 – Missile Industrial Responsiveness250000 – Missile Replenishment Spares & Repair Parts260000 – Missile Initial Spares & Repair Parts280000 – Procurement Other Than Air Force290000 – Other Support




(BPACs)

820000 – Vehicular Equipment830000 – Electronics & Telecommunications Equipment840000 – Other Base Maintenance & Support Equipment850000 – Air Force Forest Management Program860000 – Spares & Repair Parts870000 – Procurement Other Than Air Force




(BPACs)

610000 – Basic Research620000 – Applied Research630000 – Advanced Technology Development640000 – Demonstration & Validation650000 – Engineering & Manufacturing Development660000 – Management & Support670000 – Operational System Development690000 – Reimbursement Transactions



3400O&M Coding Structure

Budget Activity (BA)• Replaced Major Force Programs• Broad categories grouping similar capabilities & missions

Program Element Code (PEC)• Each BA is subdivided into more specific mission

breakdowns called Program ElementsDoD Element of Expense (DODEE)

• Groups specific Air Force Element of Expense Investment Codes

Element of Expense & Investment Code (EEIC)• Common element to base level activities• Used to identify the type of resources consumed



3400O&M Budget Activities

BA 01 – Operating Forces

3 Mission Areas• Air Operations: Overall support for all fighter/bomber forces,

intercontinental ballistic missiles, air launched strategic/tactical missiles, support ranges, command/base support personnel/activities

• Combat Related Operations: Support element for combat forces and employs a wide range of assets to accomplish many missions

• Space Operations: Assets/force structure to provide the capability to launch payloads into earth orbits, communicate with space based platforms, & worldwide network of sites/terminals to relay data gathered by satellite constellations




BA 02 – Mobilization

6 Mission Areas• Airlift Operations: Supports day to day activities such as

tactical airlift, air refueling, operational airlift for movement of personnel/cargo

• Airlift Operations Command: Supports HQ Air Mobility Command including administrative support, training & preparing airlift forces to meet wartime objectives

• Control, Communications & Intelligence: Provides the capability to direct/control airlift/aircrews for worldwide deployment, provides intransit visibility of cargo/passengers




BA 02 – Mobilization

6 Mission Areas• Mobilization Preparedness: Provides capability to sustain crisis

situations through the provision/prepositioning of war readiness materials, includes manpower, support equipment, facilities, supports medical wartime mission

• Payment to Transportation Business Area: Funding to meet transportation costs not covered in rate structure

• Base Support: Provides personnel support functions, base infrastructure, other essential needs to sustain mission capability, quality of life, preservation of physical plant structure




BA 03 – Training & Recruiting

3 Mission Areas• Accession Training: Produces enlisted/officer personnel

needed to meet total force requirements, provides a military indoctrination program to facilitate a smooth transition from civilian life to military environment

• Basic Skill & Advanced Training: Provides training & education essential to operate, maintain, manage complex Air Force weapon systems/support structure

• Recruiting & Other Training & Education: Supports personnel acquisition operations, voluntary education programs & Air Force Junior Reserve Officer Training Corps (ROTC)




BA 04 – Administration & Servicewide Activities

4 Mission Areas• Logistics Operations: Includes depot maintenance, engineering

& installation support, acquisition & combat support, personnel support

• Servicewide Activities: Ensures combat capability & maintain readiness, support to units/personnel in diverse geographic locations

• Security Program: Supports Air Force Office of Special Investigations & Classified Programs

• Support to other Nations: Includes security assistance, humanitarian assistance, participation in international & multinational activities, NATO, etc.



Centrally Managed Programs

Managed by the Centralized Asset Management (CAM) Office (AFMC/FMB & A4F)

• Depot Purchased Equipment Maintenance (DPEM)• Contractor Logistics Support (CLS)• Sustaining Engineering (SE)• Technical Orders• Support Equipment (with the exception of Vehicles)

CAM Process Guide



Depot Purchased Equipment Maintenance

DPEM Process Guide, Chapter 92 AFMC Financial Management Reference (FMR) Handbook

DPEM buys:• Program Depot Maintenance (PDM) aircraft & missiles• Unprogrammed work (107 requests)• Engine overhauls and 2LM• Depot Field Team (DFT) & Contract Field Team (CFT)• Software Maintenance (Process Guide, Chapter 97 AFMC

FMR Handbook)• Other Major End Items (OMEI)• Area/Base/Maintenance (ABM)• Exchangeables (Stock Fund Exempt)• Storage (AMARC & other sources)



Contractor Logistics Support (EEIC 578)

CLS Process Guide, Chapter 101 AFMC FMR HandbookUses:

• O&M tasks normally performed by an organic support activity for a system, equipment, or item for extended periods of time or for the life of the system, to include the following logistics support elements:

–Item Management–Configuration Management–Data Management–Supply & Distribution–Repair & Depot Maintenance–Operating Command Organizational Maintenance–Other maintenance levels as negotiated

CLS can range from a single logistics support element to all logistics support elements



Sustaining Engineering (EEIC 583)

SE Process Guide, Chapter 96 AFMC FMR HandbookEngineering effort required to define the problem &

identify the corrective actionUses:

• Aircraft Structural Integrity Program (ASIP)• Mishap/Safety Investigations• Failure Analysis• Resolution of deficiencies• Feasibility studies

Does not pay for developmental engineering



Technical Data Sustainment (EEIC 594)

Technical Order (T.O.) Process Guide, Chapter 85 AFMC FMR Handbook

Uses:• Sustainment of Tech Data• Digitization of Tech Data• Viewing Equipment to use data digitally

Does not pay for Tech Data:• During program acquisition• Related to modifications• On CLS programs

Does not pay for AFMC management costs



4930 Industrial FundCost Authority

Managed by AFMC• Allocated to the ALCs• Two different types

–Depot Maintenance Activity Group (DMAG)–Supply Management Activity Group (SMAG)

• Materiel Support Division (MSD)• General Support Division (GSD)

»Provided to the MAJCOMs »MAJCOMs issue to their units

Managed by USTRANSCOM & AMC• Transportation Working Capital Fund (TWCF)



How A Revolving Fund Works

DIRECT APPROPRIATIONDIRECT APPROPRIATION

CREATES OBLIGATIONCREATES OBLIGATIONAUTHORITY TO PROVIDEAUTHORITY TO PROVIDE

PAYMENTS TO:PAYMENTS TO:

DEPOT OR SUPPLIER—FORDEPOT OR SUPPLIER—FORPRODUCTION, MAINTENANCE ORPRODUCTION, MAINTENANCE OR

PURCHASE OF:PURCHASE OF:

MAINTENANCE OR INVENTORYMAINTENANCE OR INVENTORY— — AT BASES & DEPOTS, WHO ISSUEAT BASES & DEPOTS, WHO ISSUE

ITEMS OR PROVIDE SERVICE TO:ITEMS OR PROVIDE SERVICE TO:

CUSTOMERS—WHO PAYCUSTOMERS—WHO PAYFOR INVENTORY OR MAINTENANCE FOR INVENTORY OR MAINTENANCE

WITH O&M $, PLUS:WITH O&M $, PLUS:

SURCHARGES—TOSURCHARGES—TOFINANCE PURCHASE OF FINANCE PURCHASE OF REPLACEMENT ITEMS REPLACEMENT ITEMS

& COVER OVERHEAD WHICH:& COVER OVERHEAD WHICH:

Warner Robins Air Logistics Center People First…Mission Always Propriety of Funds/ Fiscal Law 1.

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