Term -Anti-Deficiency Act

Anti-Deficiency Act was passed in 1905 and is now codified in section of Title 31, United States Code (U.S.C.). This law limits the amount of
funds available for obligation and expenditure in an attempt to avoid
situations of deficient funding. Funds are only available if authorized
and appropriated as to correct purpose, time, and amount. Violations of
these restrictions are reported as violations of Department of Defense
Directive 7200.1 of May 4, 1995, Administrative Control of
Appropriations, and can result in administrative disciplinary action
and possible criminal penalties. To facilitate prevention of
“deficiencies” in funding, the [Navy] is required by law to establish
and operate a system of administrative controls over appropriated and
non-appropriated funds. These controls regulate funding amounts,
purposes, and timing. This system also provides data on funds
availability and facilitates determination of individuals responsible
for violations.

    Air Force Materiel Command Financial
Management Reference System.    FAR 32.702
Contract Funding Policy provides:

    “No officer or employee of the
Government may create or authorize an obligation in excess of the funds
available, or in advance of appropriations (Anti-Deficiency Act, 31
U.S.C. 1341), unless otherwise authorized by law. Before executing any
contract, the contracting officer shall–
       (a) Obtain written
assurance from responsible fiscal authority that adequate funds are
available or
       (b) Expressly
condition the contract upon availability of funds in accordance with

See DoD Financial Management Regulation (DoDFMR) 7000.14-R, Volume 14, Administrative Control of Funds and Antideficiency Act Violations, March 2001.

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