C hapter 2: Availability of Appropriations as to Purpose THIS PAGE INTENTIONALLY LEFT BLANK CHAPTER 2 AVAILABILITY OF APPROPRIATIONS AS TO PURPOSE I. REFERENCES. .......................................................................................................................1 II. CONSTITUTIONAL, STATUTORY AND OTHER BACKGROUND. .......................1 A. U.S. Constitution ................................................................................................................1 B. The Purpose Statute............................................................................................................ 2 C. The “Necessary Expense Doctrine” (a.k.a. The 3-part Purpose Test). .............................2 III. THE APPROPRIATION ACTS .........................................................................................4 A. Overview. ...........................................................................................................................4 B. Appropriations ....................................................................................................................4 C. Continuing Resolution Authorities .....................................................................................5 D. Researching Appropriation Acts.. ......................................................................................5 IV. EXPRESS STATUTORY PURPOSE: THE DEPARTMENT OF DEFENSE APPROPRIATIONS......................................................................................................................6 A. The Purpose Analysis Flowchart ........................................................................................6 B. Overview of DOD Appropriations. ....................................................................................6 C. Who is the purchase for? ..................................................................................................6 D. Classifying the Acquisition: .............................................................................................7 E. Overview of the Major Defense Appropriations. .............................................................9 F. Investment/Expense Threshold: ......................................................................................12 G. Systems and the Expense/Investment Threshold. ...........................................................14 H. Accounting Classifications: ............................................................................................15 I. GFEB ..............................................................................................................................17 J. Earmarks. ..........................................................................................................................17 V. IS THE EXPENDITURE OTHERWISE PROVIDED FOR IN A SEPARATE APPROPRIATION? ....................................................................................................................18 A. Overview. .......................................................................................................................18 B. If there are two appropriations equally available: ............................................................19 VI. LEGISLATION IMPACTING THE USAGE OF AN APPROPRIATION. ...............20 A. Impacts Found Within the Actual Appropriation............................................................. 20 B. Organic Legislation. .......................................................................................................20 C. Authorization Act. ............................................................................................................21 D. Miscellaneous Statutory Provisions.................................................................................. 23 E. Legislative History. ..........................................................................................................24 VII. OTHER DOCUMENTS IMPACTING THE USAGE OF AN APPROPRIATION. ..25 A. Budget Request Documentation. ......................................................................................25 B. Agency Regulations. .......................................................................................................27 C. Case Law. ......................................................................................................................29 VIII. NECESSARY EXPENSE...............................................................................................29 A. Express Statutory Purpose?. .............................................................................................29 B. “Necessary Expense” ........................................................................................................30 C. GAO’s Necessary Expense Doctrine. ...............................................................................30 D. The first prong of the “necessary expense” doctrine. .......................................................30 E. Exploring “necessary expenses” .......................................................................................31 F. Practical Aspects of applying the “necessary expense” doctrine. ..................................31 2-2 G. Agency Discretion. .........................................................................................................31 IX. TYPICAL QUESTIONABLE EXPENSES. ....................................................................33 A. Clothing ............................................................................................................................33 B. Food .................................................................................................................................33 C. Bottled Water ....................................................................................................................34 D. Workplace Food Storage and Preparation Equipment .....................................................42 E. Personal Office Furniture and Equipment. .....................................................................43 F. Entertainment. .................................................................................................................44 G. Decorations. ....................................................................................................................44 H. Business Cards. ...............................................................................................................45 I. Telephones. .....................................................................................................................45 J. Fines and Penalties. ........................................................................................................47 K. Licenses and Certificates. ...............................................................................................47 L. Awards (Including Unit or Regimental Coins and Similar Devices). ............................49 M. Use of Office Equipment. ..............................................................................................52 X. AUGMENTATION OF APPROPRIATIONS & MISCELLANEOUS RECEIPTS...53 A. General Rule - Augmentation of Appropriations Is Not Permitted.................................. 53 B. Statutory Exceptions to the Miscellaneous Receipts Statute. .........................................55 C. GAO Sanctioned Exceptions to the Miscellaneous Receipts Statute. ............................58 XI. EMERGENCY AND EXTRAORDINARY EXPENSE FUNDS. ..................................61 A. Definitions. ....................................................................................................................61 B. Historical Background. ................................................................................................... 61 2-3 C. Appropriations Language. ................................................................................................61 D. Statutory Background. ......................................................................................................62 E. Regulatory Controls. .......................................................................................................63 XII. CONCLUSION. ..............................................................................................................67 APPENDIX A: ANALYZING A PURPOSE ISSUE ...............................................................68 APPENDIX B: PURPOSE ANALYSIS FLOWCHART ........................................................75 2-4 CHAPTER 2 AVAILABILITY OF APPROPRIATIONS AS TO PURPOSE I. REFERENCES. A. U.S. Constitution, Art. I, § 9. B. 31 U.S.C. § 1301. The Purpose Statute. C. Department of Defense Appropriations Acts and National Defense Authorization Acts (annual legislation found at: http://thomas.loc.gov/home/thomas.php). D. DOD 7000.14-R, Financial Management Regulations (hereinafter “DOD FMR,” found at: http://www.dod.mil/comptroller/fmr/). E. Department of Air Force, Instr. 65-601, Budget Guidance and Procedures (16 August 2012), available at http://www.e-publishing.af.mil. F. Principles of Fed. Appropriations Law, (commonly referred to as the “Red Book”) 3d ed., vol. I, chapters. 2-4, GAO-04-261SP (January 2004), found at: http://gao.gov/legal/index.html. G. A Glossary of Terms Used in the Federal Budget Process, GAO-05-734SP (Sept. 2005) found at: http://www.gao.gov/products/GAO-05-734SP. H. OMB Cir. No. A-11, Preparing, Submitting, and Executing the Budget (July 2013), available at: http://www.whitehouse.gov/sites/default/files/omb/assets/a11_current_year/a11_2