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  • Question

    Can I deobligate the funds against the CLINS for FY08 and reobligate with current year FY13 dollars?


    Answer

    The general rule for bona fide need states that "Officials may commit funds only to acquire goods, supplies, and services that meet the bona fide needs of the period for which Congress appropriated funds, or to replace stock used during that period.  (Reference:  DoD financial Management Regulation, Volume 3, Chapter 8, Para 0802).  Furthermore, paragraph 080303.A. Contracts of Orders for Goods, Supplies, or Services to Meet Bona Fide Need.  DoD components shall determine that the goods, supplies, or services required under contracts entered into, or orders placed obligating an annual or multiple-year appropriation, are intended to meet a bona fide need of the period for which funds were appropriated.  Such determinations shall consider estimated current consumption, the requirements that may be foreseen for future years base upon the procurement lead time, authorized stock levels, and authorized mobilization reserves.  There is additional guidance in the FMR paragraph 080303 regarding other types of contracts.  So, not knowing the nature of the of the contract, the circumstances of the hold-up of the effort by state regulators, or the type of funds originally used when the FY08 obligation occurred, I would advise you to seek out your legal consel and your command comptroller to assist in this determination. 

    Additionally, there are provisions in the Volume 3, Chapter 10: "ACCOUNTING REQUIREMENTS FOR EXPIRED AND CLOSED ACCOUNTS" addresses the policies and procedures relating to expired accounts.  This chapter covers use of current year funds for to pay an obligation, which otherwise would have been properly chargeable (both as to purpose and amount) to a closed/canceled appropriation. In the absence provisions to allow deobligation of expired funds, and the obligation of current funds, I would have to refer back to the Bona Fide Need rule. If applicable, there is one reference to the Contracts Disputes Act in paragraph 100202.C regarding the use of the "Judgement Fund". But again, the best course of action is to discuss with the appropriate comptroller and legal counsel personnel within your command. 



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