text: Chapter 2
  c. No-year budget authority. The language for a specific appropriation of budget authority
  or the authorization of the appropriation may make all or some portion of the amount available
  "until expended." In other words, obligations can be incurred against the appropriation
  indefinitely provided you do not exceed the appropriated or authorized amount. This is no year
  budget authority. Authorizing laws that make appropriations seldom limit the period of
  availability, so most budget authority provided in authorizing laws is no-year budget authority.
  2-39. Period of Availability for making obligations and disbursements. Appropriations have “phases”
  over its legal life span until no action may be taken against the appropriation. Rules of obligation vary
  depending on the phase:
  * Unexpired phase. During this time period, the budget authority is available for "new"
  obligations and for disbursement. Activities (e.g., agencies, organizations, commands,
  installations) may make "new" grants or sign "new" contracts during this phase. This phase lasts
  for a set number of years. Annual budget authority lasts for up to one fiscal year. Currently,
  multi-year authority lasts from over one fiscal year up to 15 fiscal years.
  * Expired phase. During this time period, the budget authority is no longer available for new
  obligations but is still available for disbursement. This phase normally lasts five years after the
  last unexpired year. Specifically, activities may not incur new obligations against expired budget
  authority. However, adjustments to obligations that were made before the budget authority
  expired are authorized in this phase. Activities may use expired authority to make adjustments to
  obligations or disbursements only during a five-year period that usually begins with the first
  expired year. The expired period can be lengthened by legislation.
  * Canceled phase. After the last expired year, the account is closed, and the balances are
  canceled. The authority to disburse is canceled and is no longer available for any purpose. Any
  old bills with valid obligations that show up after the account is closed must be obligated against
  and disbursed from currently available (i.e., In the unexpired phase) budget authority for the
  same general purpose.
  KEY STATUTES AND LAWS
  2-40. Financial management policies and procedures follow a strict set of standards that are governed by
  statutory and regulatory principles, and other requirements by Congress and other governing bodies. It is
  imperative that all financial managers are aware of the current statutes and laws applicable to each area of
  operations.
  Anti-Deficiency Act (ADA)
  2-41. The Anti-Deficiency Act is codified under sections 1341, 1342, 1344, and 1511-1517, Title 31, and
  is implemented by OMB Circular No. A-11, Part 4, DOD Directive 7200.1, and DOD 7000.14-R, Volume
  14. It states that an officer or employee may not make or authorize an obligation or expenditure that
  exceeds an amount available in an appropriation or formal subdivisions of funds. The GAO has determined
  that this statute prohibits obligations in excess of appropriated amounts and obligations that violate
  statutory restrictions or other limitations on obligations or spending. Government officials who authorize or
  make prohibited obligations or expenditures are subject to criminal sanctions and administrative discipline,
  including suspension without pay and removal from office. Good faith or mistake of fact does not relieve
  an individual from responsibility for a violation. Factors such as “a heavy workload at year end” or an
  employee’s “past exemplary record” generally are relevant only to determine the appropriate level of
  discipline, not to determine whether the commander should impose discipline.
  2-42. Violations of the Anti-deficiency Acts have increased in recent years drawing unwanted attention
  from Congress and the GAO and prompting agencies to take action. The Assistant Secretary of the Army
  for Financial Management and Comptroller published a memorandum dated 2 Jun 06 which directed
  organizations to review the training of fund certifying officers and encouraging organizations to conduct
  refresher training at least every three years. If an apparent violation is discovered, the agency must report
  and investigate. Violations could result in administrative and/or criminal sanctions. (See DODFMR, vol. 14