text: Chapter 2
  2-13. Allocations are formal distributions of apportionments or funds that do not require apportionment by
  the departmental-level accounting entity to an operating agency or other intermediate-level accounting
  entity. An allocation of funds represents an authorization by a designated official of a DOD Component
  making funds available within a prescribed amount to an operating agency for the purpose of making
  allotments and incurring obligations. Allocations carry the same legal and other limitations as
  apportionments. Allocations of budget authority from the service department to Army Commands
  (ACOMs), ASCCs a direct reporting unit, and Operating Agencies must be in writing. Allocations, sub-
  allocations, or their parts, that are not required to be further subdivided may be treated and recorded as
  allotments. Using Program Budget Accounting System (PBAS) or GFEBS, the HQDA issues Funding
  Authorization Documents (FADs) to allocate obligation authority and program authority to ACOMs,
  ASCCs, and OAs.
  2-14. An allotment is a formal distribution of budget authority to an execution level accounting entity. For
  example, from an ACOM to a subordinate command. It authorizes the incurrence of obligations within a
  specified amount. Sub allotments may be used to further subdivide the budget authority. Accounting for a
  sub allotment is the same as accounting for an allotment; only the term allotment will be used in this
  chapter. ACOMs, ASCCs and Operating Agencies, through PBAS or GFEBS, may issue FADs to their
  units to allot obligation authority and program authority.
  2-15. Commands may informally subdivide funds at lower levels (e.g., within an ASCC) without creating
  an absolute limitation on obligation authority. These subdivisions are considered funding targets. Targets,
  referred to as “allowances”, represent informal subdivisions of funding. In these instances, an ACOM,
  ASCC and/or Operating Agencies may implement a fund allowance system in which the lowest formal
  distribution of funds is at the ASCC level with funding allowances being issued to subordinate units. This
  system allows more flexibility in fund control and lessens the possibility of reportable ADA violations.
  Commanders are still responsible for executing their mission within the provided funding allowance and
  violations of that guidance may warrant administrative disciplinary action. Exceeding their funding
  target/allowance does not constitute a statutory violation but could result in an over-obligation or over-
  expenditure of the ACOM or ASCC funding authority. Regardless, persons responsible for exceeding their
  target/allowance will be identified by name as being responsible for any resulting ADA violation.
  2-16. Figure 2-2 illustrates the distribution of funds, both formal and informal, from OMB down to tenant
  activities and subordinate units. During contingency operations, ACOMs distribute funds informally to
  their major subordinate commands in theater through allowances. These major subordinate commands, in
  turn, push funding forward in the form of funding targets issued to their subordinate commands (usually,
  divisions and brigades). Throughout the flow of funds, commanders and any other DOD officials to whom
  funds are entrusted or formal subdivisions of funds are issued ensure that all personnel, including the actual
  fund users, contracting personnel, and other personnel involved in the administrative control and use of
  funds, are aware of, and comply with, the requirements of the Anti-deficiency Act.