FY10 Procurement funds was used to make pay ment for a cancelled appropriation. The funds were obligated against the contract prior to expiring. DFAS did not make the payment prior to the funds expiring. Do I have to use current FY11 procurement fund to make the payment or can DFAS still make the payment with the FY10 obligated amount?
I have to assume that you went through all of the required procedures to authorize the use of the FY10 Procurement funds to make the payment for the cancelled appropriation. The reason for the rules regarding using current funds to pay for bills that arise from cancelled funds is because only current funds are current for the purposes of making new obligations. Therefore, only current funds can be obligated on a contract vehicle to cover bills resulting from cancelled funds.
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Once those current funds are obligated on a contract, they are able to be used to make payment for a cancelled appropriation. After their three year current period, Procurement funds enter a five year expired period. During that expired period, funds can be used to make payments on a contract as long as they were properly obligated on that contract during their current period.
Conclusion: I can find no policy, regulation or statute that leads me to believe that you must use FY11 Procurement funds at this point to cover the bill caused by the cancelled funds. Since the FY10 procurement funds were appropriately obligated on the contract during their period of availability for obligation for the purpose of payment for a cancelled appropriation, those FY10 Procurement funds can be used for payment of that bill during their expired period.
Suggestions: First, we most strongly recommend that you contact your local comptroller organization for more information and their policy interpretation of this issue. Second, it would be worth your time and effort to present this issue to your organization’s legal counsel for a consultation on what they think about it.