Is it considered an ADA violation when funds are expended out of the wrong MDEP? If not, then is it just considered an unauthorized use of funds if it does not affect the overall appropriation?
In addressing administrative control of funds and antideficieny act violations, the DOD Financial Management Regulation (FMR) DoD 7000.14, does not mention Management Decision Packages (MDEP). The spending of funds out of the wrong MDEP may well be an issue allotments and sub allotments. Volume 14, Chapter 1, paragraph 010206 says this about Apportionments, Allotments, Suballotments and Allocations:
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“The administrative control of funds process restricts obligations and expenditures (disbursements) to the amount available at the apportionment, allotment, suballotment and allocation levels. Apportionments, allotments, suballotments, allocations and other formal administrative subdivision of funds designated by a DoD Component are subject to the provisions of the ADA; therefore, obligations and disbursements of funds that exceed these limitations are violations of the ADA.”
In general, ant-deficiency act has to do with the following three things:
• Purpose Statute [31 U.S.C. § 1301]
– Requires that appropriated funds be used only for the purposes and programs for which appropriation was made
• Bona Fide Need Rule [31 U.S.C. § 1502]
– Requires that appropriated funds be used only for needs or services that arise in the year(s) of the appropriation’s obligation availability period
• Antideficiency Act [31 U.S.C. §§ 1341, 1517]
– Prohibits making or authorizing an obligation in excess of the amount available in the appropriation
– Forbids obligating funds in advance of appropriation
– Requires regulations to ensure obligations are kept within appropriated or sub-divided amounts and to fix responsibility for violations of the Act
We highly recommend that you contact the Comptroller and the Legal office for additional guidance.