text: Fund the Force
  Needs Rule” which states that the balance of an appropriation is available only for payment of expenses
  properly incurred during the period of availability, or to complete contracts properly made during the
  period of availability (31 U.S.C. § 1502(a)). An agency must incur a legal obligation to pay money within
  an appropriation’s period of availability (i.e., Unexpired period). If an agency fails to obligate funds before
  they expire, they are no longer available for new obligations. Expired funds retain their “fiscal year
  identity” for five years after the end of the period of availability. During this time, the funds are available to
  adjust existing obligations or to liquidate prior valid obligations. There are limited exceptions to this
  general prohibition against obligating funds for new work following the period of availability (exceptions
  apply to services, supplies and training).
  PURPOSE LIMITATION
  2-25. The “Purpose Statute” requires agencies to apply appropriations only to the objects for which the
  appropriations were made, except as otherwise provided by law (31 United States Code (U.S.C.) 1301(a)).
  A previous Comptroller General decision (Secretary of Interior, B-120676, 34 Comp. Gen. 195 (1954))
  devised a three-part test to determine if an intended use of public funds construed a “proper use”.
  2-26. The three components of the “necessary expense” test are:
  * Expenditure of appropriations must be for a specified purpose, or necessary and incident to the
  proper execution of the general purpose of the appropriation.
  * The expenditure must not be prohibited by law.
  * The expenditure must not be otherwise provided for (i.e., It must not fall within the scope of
  another appropriation).
  2-27. All three tests must be satisfied for the expenditure to be a proper use of appropriated funds. If two
  appropriations are available for a purpose and one of the appropriations more specifically provides funding
  for the intended purpose in the text of the legislation, then use the more specific appropriation. If two
  appropriations are equally available with respect to legislative language, then the agency may choose one
  of the appropriations, but once elected, the agency must use that appropriation for the current fiscal year
  (FY) and not change appropriations regardless of whether or not funds in the originally chosen
  appropriation are exhausted.
  AMOUNT LIMITATION
  2-28. The Anti-deficiency Act, 31 U.S.C. §§ 1341-42, 1511-19, prohibits any government officer or
  employee from:
  * Making or authorizing an expenditure or obligation in excess of the amount available in an
  appropriation (31 U.S.C. § 1341(a)(1)(A)).
  * Making or authorizing expenditures or incurring obligations in excess of formal subdivisions of
  funds; or in excess of amounts permitted by regulations prescribed under 31 U.S.C. § 1514(a)
  (also see 31 U.S.C. § 1517(a)(2)).
  * Incurring an obligation in advance of an appropriation, unless authorized by law. (31 U.S.C. §
  1341(a)(1)(B).
  * Accepting voluntary services, unless otherwise authorized by law (31 U.S.C. § 1342).
  KEY TERMS, STATUES, AND LAWS
  2-29. Fiscal law is of primary concern to financial managers. Failure to apply fiscal law principles properly
  may lead to unauthorized expenditures of funds and consequently administrative or criminal sanctions
  against those responsible. Federal agencies require congressional appropriation to operate. In some cases,
  an authorization must also be enacted before an appropriation can be obligated. An appropriation is a law
  that provides budget authority for the stated purposes. No other statutes and resolutions passed by
  Congress, including budget resolutions and authorization acts, authorize withdrawal of money from the
  U.S. Treasury. DOD regulations mandate the use of commitment accounting for all appropriations, both
  unexpired and expired. Issuing a commitment that authorizes an obligation in excess of an appropriation or