United States Department of Agriculture
Research, Education, and Economics
ARS * CSREES * ERS * NASS
Policies and Procedures
Title: | Use of Prior Fiscal Year Appropriations |
Number: | 323.8-ARS |
Date: | 9/16/1999 |
Originating Office: | Systems, Analysis and Policy Branch, Financial Management Division, AFM/ARS |
This Replaces: | P&P 323.8 dated 3/16/90; Financial Management Manual Section 2380, dated 3/90; and FM Bulletin 91-1, dated 12/27/90 |
Distribution: | ARS Offices in Headquarters, Areas, and Locations |
This P&P states policy, responsibilities, and criteria for the use of unobligated balances of prior fiscal year appropriations. |
Table of Contents
1. Authorities
2. Policy
3. Procedures
4. Summary of Responsibilities and Delegation of Authority
5. Glossary
Exhibit 1 Sample Request for Prior Year Funds
Exhibit 2 Reply from Director, FD, to Requestor
It is ARS Policy to:
Criteria. As appropriate, use PY appropriations for the following types of PY transactions:
No charge to a PY appropriation may be made unless the transaction would have been an appropriate charge to that appropriation while it was current.
For facilities contracts, PY funds may be used to cover conditions related to the site or existing structure, which were unknown at the time the original contract was signed and when conditions must be corrected or addressed in order to complete the work as originally described in the contract.
Examples of unknown conditions related to the existing structure are:
Examples of unknown conditions related to the site are:
For other contracts, purchase orders or agreements, PY funds may generally be used to cover only those items which relate to a clearly defined deliverable. Examples of allowable PY charges are as follows:
All prior year funds requests must meet the criteria identified in Section 2, Policy.
Category 1: Requests of $1,000 or under -- A Certification of Funds
Availability is not required from the National Finance Center, Reporting Section
Number 4 (NFC-RS#4). No special approval is necessary. Automatically (or routinely)
prepare and process PY payment transactions without initiating the approval request
documentation identified below under Categories 2, 3, and 4.
Category 2: Requests from $1,001 to $10,000 -- Area or Headquarters request and approval action must be supported by administrative documentation. Approving Officials must send informational copies of approved PY fund requests to NFC-RS#4, via E-mail. A Certification of Funds Availability is not required from NFC-RS#4. Approval from the Director, Financial Management Division (FMD) is not required. The following procedures apply for Category 2 PY fund requests and approvals:
Responsible Person(s) | Procedure |
---|---|
Requesting Official -- Fundholder, Contracting Officer (CO), Authorized Departmental Officer (ADO), or Procurement and Assistance Officer (PAO) | 1. Sends a Request for
Use of Prior Fiscal Year Funds to the Area Administrative Officer (AAO)/Division
Director/or designee (e.g., Servicing Budget and Fiscal Officer (SBFO)), via E- mail. (See
Exhibit 1) The following information must be included:
|
Approving Official -- AAO/Division Director/or Designee (e.g., SBFO) | 2. Approves/Disapproves
request using the criteria listed in Section 2, Policy, and replies
back to the Requesting Official via E-mail, with an appropriate notation of the reason for
any disapproval. Includes the original message from the Requesting Official in the body of
the reply. (See Exhibit 2) 3. Sends approved requests for PY funds to NFC- RS#4, via E-mail. 4. Retains a hard copy of the E-mail message approving the use of PY funds in the official file. 5. If documentation is held at the Approving Official level, sends the vendor/contractor claim (including invoices) or order/modification to the applicable payment office for processing, with a copy of the approved request for use of PY funds. (NOTE: If the above documentation is held at the Requesting Official level, that office should submit it to the payment office, after approval.) |
Category 3. Requests from $10,001 to $25,000 (or if an appropriation (funds)
restriction notice has been issued by FMD) : Area or Headquarters
request and approval action must be supported by administrative documentation. Prior to
approval, Approving Officials must send copies of PY fund requests to NFC-RS#4, via
E-mail, and request a Certification of Funds Availability. Approval from the Director,
FMD is not required. The following procedures apply for Category 3 PY fund
requests and approvals:
Responsible Person(s) | Procedure |
---|---|
Requesting Official--Fundholder, Contracting Officer (CO), Authorized Departmental Officer (ADO), or Procurement and Assistance Officer (PAO) | 1. Sends an E-mail, Request for Use
of Prior Fiscal Year Funds, to the AAO/Division Director/or Designee (e.g., SBFO) for
approval. Includes the information identified in Category 2, Step 1, above. (See Exhibit 1) |
Approving Official--AAO/Division
Director/ or Designee (e.g., SBFO) |
2. Reviews the Request for Use of
Prior Year Funds using the criteria listed in Section 2, Policy. 3. If the request does not meet the policy criteria, sends the request back to the Requesting Official, via E-mail, with an appropriate notation of the reason for disapproval. 4. If the request meets the policy criteria, submits the request, via E-mail, to
NFC-RS#4, and asks for a Certification of Fund Availability. 6. Sends approved and disapproved requests for PY funds to NFC-RS#4, via E-mail. 7. Retains a hard copy of the E-mail message 8. If documentation is held at the Approving Official level, sends the vendor/contractor claim (including invoices) or order/modification to the applicable payment office for processing, with a copy of the approved request for use of PY funds. (NOTE: If the above documentation is held at the Requesting Official level, that office should submit it to the payment office, after approval.) |
Head, NFC-RS#4 | 9. Receives a request for Certification of Fund Availability; affirms or denies the Certification of Fund Availability, and forwards the response to the Approving Official, via E-mail. |
Category 4. Requests of over $25,000: Area or Headquarters request and approval
action must be supported by administrative documentation. Reviewing Officials must send
copies of PY fund requests to the NFC-RS#4, via E-mail, and request a Certification of
Fund Availability before requests are sent to FMD, for final approval. Final approval
from the Director, FMD is required. The following procedures apply for Category 4
PY fund requests and approvals:
Responsible Person(s) | Procedure |
---|---|
Requesting Official--Fundholder, Contracting Officer (CO), Authorized Departmental Officer (ADO), or Procurement and Assistance Officer (PAO) | 1. Sends an E-mail, Request for Use
of Prior Fiscal Year Funds, to the AAO/Division Director/or designee (e.g., SBFO) for
approval. Includes the information identified in Category 2, Step 1, above. (See Exhibit 1) |
Reviewing Official--AAO/Division Director or Designee (e.g., SBFO). | 2. Reviews the Request for Use of
Prior Year Funds using the criteria listed in Section 2, Policy. 3. If the request does not meet the policy criteria, sends the request back to the Requesting Official, via E-mail, with an appropriate notation of the reason for disapproval. 4. If the request meets the policy criteria, submits the request, via E-mail, to
NFC-RS#4, and asks for a Certification of Fund Availability. 6. E-mails the PY fund request to the Director, FMD, with the Certification of Fund Availability, to ask for approval to use PY funds. 7. Upon receipt of the approval from the Director, FMD, retains a copy of the authorization and the Certification of Fund Availability in the official file with other documentation of the FY fund approval. 8. If documentation is held at the Reviewing Official level, sends the vendor/contractor claim (including invoices) or order/modification to the applicable payment office for processing, with a copy of the approved request for use of PY funds. (NOTE: If the above documentation is held at the Requesting Official level, that office should submit it to the payment office, after approval.) |
Approving Official -- Director, FMD | 9. Receives and approves/denies a request for Use of PY Funds over $25,000; determines the appropriateness of the PY funds request, and forwards the approval/ denial of the request (See Exhibit 2) to the Requesting Official, the Reviewing Official, and to the Head, NFC-RS#4, via E-mail. |
Head, NFC-RS#4 | 10. Receives a request for Certification of Fund Availability; affirms or denies the Certification of Fund Availability, and forwards the response to the Reviewing Official, via E-mail. |
Director, FMD (or designee)
Directors, Facilities Division (FD), Procurement and Property Division (PPD), Human Resources Division (HRD), FMD; and AAO's
CO's/ADO's or Appropriate Managers
Appropriations Level Management Staff (ALMS), FMD
Head, NFC-RS#4
Fundholders, Research Leaders, and Other Managers (or others acting on their behalf)
AAO. Area Administrative Officer.
ABFO. Area Budget and Fiscal Officer.
ADO. Authorized Departmental Officer.
ALMS. Appropriation Level Management Staff, FMD.
Annual Appropriation. An appropriation of funds by the Congress for a fixed period of
time. Annual appropriations remain available for the current fiscal year and an additional
five fiscal years to make payments to liquidate liabilities arising from obligations made
within the fiscal year for which the funds were appropriated.
CG. Comptroller General.
Closed Appropriation. An appropriation that has gone past the additional 5 fiscal
years for which the funds were appropriated.
CO. Contracting Officer.
CY. Current (Fiscal) Year.
Expired Appropriation. An appropriation whose annual authority has lapsed, but which remains available for five fiscal years to liquidate valid obligations incurred during the unexpired period, and for prior year fund transactions.
FMD. Financial Management Division.
FOB. Fiscal Operations Branch, FMD.
GAO. General Accounting Office.
NFC. National Finance Center.
OMB. Office of Management and Budget.
PAO. Procurement and Assistance Officer.
PY. Prior (Fiscal) Year.
RS#4. Reporting Section Number 4, NFC.
SBFO. Servicing Budget and Fiscal Officer (ABFO and Chief, FOB).
U.S.C. United States Code.
-Sd-
W. G. HORNER
Deputy Administrator
Administrative and Financial Management
2 Exhibits
Sample Request for Prior Year Funds
From: Oak C. Wood (owood@ars.usda.gov)
To: DIRECTOR, FD
Subject: Request for Prior Year Funds
Date: 5/1/98
Unit: ARS, FD
13 Main Street
Laurel, MD 13676
Contractor: Spruce & Evergreen Corp
10203 Causeway Street
Boston, MA 02003
CONTRACT MODIFICATION
Contract: 50-1JA4-8-1211
Accounting Code: 601XXXXXXXX
Amount: $1,400
Justification:
During the renovation of the headhouse in Marblehead, MA, it was suspected that asbestos
was present. To confirm this, samples must be taken and analyzed before the renovation can
be completed. The modification to the contract will provide for a 14 bulk sample test to
determine the presence of asbestos.
The change is within the scope of the original contract. The presence of asbestos was
an unknown condition at the time the parties signed the contract. The condition must be
addressed in order for the contractor to complete the renovation of the headhouse.
The legal citation for the change is FAR 52.236-2, Differing Site Conditions.
From: DIRECTOR, FD
To: OWOOD
Date: 4/10/98 1:41pm
Subject: Request for prior year Funds -Reply
>>> Oak C. Wood 03/31/98 01:33pm >>>
Date: 5/1/98
Unit: ARS, FD
13 Main Street
Laurel, MD 13676
Contractor: Spruce & Evergreen Corp
10203 Causeway Street
Boston, MA 02003
CONTRACT MODIFICATION
Contract: 50-1JA4-8-1211
Accounting Code: 601XXXXXXXX
Amount: $1,400
Justification:
During the renovation of the headhouse in Marblehead, MA, it was suspected that asbestos
was present. To confirm this, samples must be taken and analyzed before the renovation can
be completed. The modification to the contract will provide for a 14 bulk sample test to
determine the presence of asbestos.
The change is within the scope of the original contract. The presence of asbestos was
an unknown condition at the time the parties signed the contract. The condition must be
addressed in order for the contractor to complete the renovation of the headhouse.
The legal citation for the change is FAR 52.236-2, Differing Site Conditions.
=======
APPROVED
/s/
DIRECTOR, FD
CC: Contracting/Procurement
SBFO
NFC-RS#4 (erobertson@usda.gov)