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    Getting replacement funding can be a burden on the buying activity. Instead of finding replacement funding to cover a rejected invoice due to canceled funds can funding from another ACRN be used to pay the invoice if the color of money is consistent and the money to be used has been determined excess?


    Answer

    This right out of the BCF 225 textbook:
     
    When a valid, certified invoice or other “bill” from a vendor or supplier arrives at the paying finance office after that appropriation goes into the “closed” status (i.e., funds are “cancelled”), determination of which fiscal year funds should be cited for payment should be relatively simple but is sometimes misunderstood: pay the invoice with currently available funds of the same appropriation account cited for the original contract or other obligation document. This is consistent with U.S. Code, Title 31, Section 1552(a), which states that after the five year expired status period, “the account is closed and any remaining obligated and unobligated balance is cancelled and thereafter shall not be available for obligation or expenditure for any purpose”.
     
     
     
    Section 1553(b) of Title 31 further states that “obligations and adjustments to obligations that would have been chargeable to that account prior to closing and that are not otherwise chargeable to current appropriations of the agency may be charged to current appropriations of the agency for the same purpose”. Within DoD, the requirements of Title 31 have been set forth in Chapter 10, Volume 3, of the FMR.
     
     
     
    According to Chapter 10, Volume 3, of the FMR, there are specific restrictions on the use of currently available funds used to pay an invoice resulting from an obligation that cites a “cancelled” appropriation that has moved into the “closed” period. The total amount of charges to the current year appropriation account may not exceed the lesser of the following:
     
    ·  unexpended balance of the closed appropriation account; or
     
    ·  unexpired unobligated balance of the currently available appropriation account being charged; or
     
    ·  one percent of the total original amount appropriated to the current appropriation account being charge.
     
     
     
    So, since the funds under ACRN AB in your case are expired, they cannot be used.  You must use funds that are still current and available for new obligation (Procurement FY11, 12 & 13, RDT&E FY12, 13, etc.).

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