Avoiding Anti-Deficiency Violations

Hello SmartBloggers,

The Office of Charge Card Management (OCCM) would like to provide some additional guidance to help avoid Anti-Deficiency violations.   The Anti-Deficiency Act was created in 1982 to help mitigate the number of times that purchases are made which exceed the amount obligated or appropriated for those purchases.

According to the U.S. Government Accountability Office (GAO), the Anti-Deficiency Act prohibits federal employees from:

• making or authorizing an 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 penalties for violation of this act may be either administrative, where someone is suspended without pay or removed from office, or penal where someone is charged a fine or imprisoned.

This Act is in accordance with the Federal Acquisition Regulation (FAR) Part 32.702, which states:

“No officer or employee of the Government may create or authorize an obligation in excess of the funds available, or in advance of appropriations (Anti-Deficiency Act, 31 U.S.C. 1341), unless otherwise authorized by law. Before executing any contract, the contracting officer shall—
(a) Obtain written assurance from responsible fiscal authority that adequate funds are available or
(b) Expressly condition the contract upon availability of funds in accordance with 32.703-2.
 
To help avoid any potential violations, you should:

• Always seek approval before making a purchase
• Frequently check with the budget person for your portfolio to ensure there are sufficient funds in the account to cover your upcoming purchase
• Consult your legal department before accepting any terms and conditions relating to the products or services you’re acquiring
• Check with your legal department and/or policy office to learn your policies regarding social media
• Check with your supervisor before making posts to social media websites to ensure you are following all proper policies

If you have any further questions, please contact the Office of Charge Card Management at (703) 605-2808 or gsa_smartpay@gsa.gov.