4 FAH-3 H-130
OBLIGATION OF APPROPRIATIONS
(CT:FMP-104; 08-12-2019)
(Office of Origin: BP/RPBI)
4 FAH-3 H-131 SCOPE
(CT:FMP-104; 08-12-2019)
This subchapter addresses basic budgetary responsibilities
and controls for individuals managing the recording and tracking of
obligations. Policies and authorities concerning obligation validity criteria
are contained in 4
FAM 050.
4 FAH-3 H-132 PURPOSE OF OBLIGATION
CONTROL
(CT:FMP-39; 06-15-2007)
Obligation control is necessary to prevent overexpenditure
of available funds. Allotments are made to prevent deficiencies in
appropriations and expenditures in excess of appropriation limitations. The
allotment document prescribes firm and fixed limitations on the amount of the
allotment that allottees may not exceed.
4 FAH-3 H-133 MANAGEMENT RESPONSIBILITY
for funds control
(CT:FMP-39; 06-15-2007)
a. Funds are allotted to bureau assistant secretaries,
office directors, chiefs of mission, or principal officers in accordance with
the control responsibilities stated in 4 FAM 082.1.
Final responsibility for the funds may be delegated in writing to the highest
ranking officials in the decisionmaking processes, who have actual or constructive
knowledge of what actions are taken in the obligations and expenditure of
funds. Generally, this will be the office/bureau budget officer domestically
or the post management or financial management officer abroad.
b. At posts abroad, the management officer is
responsible for supervising the obligation of funds and for ensuring that
fiscal personnel discharge laws and regulations. The financial management
officer, when assigned to post, will have the responsibilities prescribed by 4 FAM 021.2-4
and will also ensure that obligating documents are properly prepared and
approved.
4 FAH-3 H-134 METHOD OF CONTROL
4 FAH-3 H-134.1 Approval of Funds
Availability
(CT:FMP-77; 08-20-2013)
a. The officer responsible for obligating funds (the
responsible officer) must approve all funding requests. In addition, where
commitments are not recorded in the financial management system (e.g., at
locations abroad), the responsible officer must review obligation documents
prepared by authorized officials before releasing them to vendors, travelers,
contractors, other agencies, etc.
b. The responsible officer must also initiate the
necessary obligation documents related to normal recurring charges to ensure a
positive control on all obligations against the allotment and the balance of
funds still available.
c. The responsible officer must disapprove obligating
documents when funds are not available and return the document to the issuing
officer with the advice that it cannot be processed because of insufficient
funds.
d. If funds are not available, the responsible officer
can seek additional funding to obtain resources necessary to support critical
operational or policy efforts.
4 FAH-3 H-134.2 Basis of
Establishing Obligations
(CT:FMP-39; 06-15-2007)
a. Responsible officers or their staffs must record
properly approved obligations for nonrecurring salary and allowances due
through the end of the accounting month and other obligations on the basis of
orders for materials, supplies, equipment or services, travel authorizations,
contracts, and similar transactions. Recurring payroll obligations are
generated through the automated system.
b. In order to provide maximum control over the
unobligated balances of allotments and to avoid Anti-Deficiency Act violations,
state these obligations as fully and as accurately as possible. These amounts
must include obligations that may be paid at another office.
4 FAH-3 H-134.3 Record of
Obligations and Unobligated Balance
(CT:FMP-77; 08-20-2013)
a. The financial management office in domestic
facilities and at locations abroad maintains a current record of each
allotments unobligated balance by using the Departments financial management
system. As part of the process described in 4 FAH-3
H-134.1, the responsible officer must ensure that each obligation document
is checked against the account for sufficiency of unobligated funds before
release. Under no circumstances can an obligation document be released that
would overobligate the allotment.
b. When sufficient funds are available and an expense
has been administratively approved, the responsible officer must promptly
process and record in the account the obligating documents. Incurring and
recording an obligation thus reduces the amount of funds available for future
obligation.
4 FAH-3 H-134.4 Payment of
Obligations
(CT:FMP-77; 08-20-2013)
The responsible officer in all locations must ensure that
all proposed payments are supported by valid obligations. Paying an amount
that exceeds the established obligation requires an official modification to
the obligation (unless within system thresholds), which has the direct effect
of reducing the unobligated allotment balance.
4 FAH-3 H-134.5 Payment When Goods are
Received or Services Rendered
(CT:FMP-77; 08-20-2013)
The responsible officer must process and record a payment
when goods have been received or services have been rendered and no obligation
has been established, even if the allotment or allowance has been exceeded.
4 FAH-3 H-135 CONTROLS FOR
FISCAL-SERVICED POSTS
4 FAH-3 H-135.1 Recurring Charges
(CT:FMP-39; 06-15-2007)
After an allotment or operating allowance is received, the
responsible officer at the fiscal-servicing post must determine the total
amount required by all posts in the country to meet normal recurring charges,
other established expenses, and any special items. He or she will advise each
fiscal-serviced post of the types and amounts of recurring charges and special
items of expenditure. The fiscal-servicing post arranges payment. The
responsible officer at the fiscal-servicing post is responsible for
establishing obligations on its records for all such charges.
4 FAH-3 H-135.2 Petty Expenditures
(CT:FMP-39; 06-15-2007)
The responsible officer at the fiscal-servicing post
estimates an amount that may be used by fiscal-serviced posts for petty
expenditures and notifies each post of the obligation number and the maximum
amount made available for this purpose. This amount must not be exceeded,
unless the fiscal-servicing post gives specific authorization. The
fiscal-servicing post may request that fiscal-serviced posts pay on certain
certified vouchers from the operating cash advance.
4 FAH-3 H-135.3 Increases,
Decreases, and New Obligations
(CT:FMP-39; 06-15-2007)
In the event a fiscal-serviced post contemplates
activities not within previously authorized limitations that would require
increases in obligations or the establishment of new obligations, the
responsible officer at the fiscal-servicing post must approve the increased
funding before any orders may be placed. This applies to any and all increases
in obligations or establishment of new obligations. When a fiscal-serviced
post finds that it will not need any funds that have been reserved for it by
the fiscal-servicing post, the fiscal-serviced post must advise the
fiscal-servicing post immediately. Fiscal-serviced posts must direct all
requests for adjustments in obligations to the fiscal-servicing post and not to
the Department.
4 FAH-3 H-136 THROUGH H-139 UNASSIGNED