B-179849 December 31, 1974
Highlights
This is a violation of subsection (h) of 31 U.S.C. 665 of the Anti-Deficiency Act. 623 was obligated by the Internal Security Division during fiscal year 1971 only $2. States that: "The allotment process is the principal means whereby responsibility is fixed for the conduct of program activities within the funds available. "An allotment is an authorization by the head or other authorized employee of a department or agency to incur obligations within a specified amount pursuant to an appropriation or other statutory provision.". Since the regulation provides that the allotment process is the "principal means whereby responsiblity is fixed for the conduct of program activities within the funds available" it is clear that such "allotments" constitute the primary basis of the Department's system of appropriation and apportionment control.
B-179849 December 31, 1974
The Honorable The Attorney General
Dear Mr. Attorney General:
During our review of certain administrative matters of the former Internal Security Division, Department of Justice, made pursuant to the request of the Chairman, Subcommittee on Constitutional Rights, Senate committee on the Judiciary, we noted that the total obligations incurred by the Internal Security Division during fiscal year 1971 exceeded the total amount of funds allotted.
In our opinion, this is a violation of subsection (h) of 31 U.S.C. 665 of the Anti-Deficiency Act. The cited section provides that:
"No officer or employee of the United States shall authorize or create any obligation or make any expenditure (A) in excess of an apportionment or reapportionment, or (B) in excess of the amount permitted by regulations prescribed pursuant to subsection (g) of this section." (Underscoring supplied.)
Our review disclosed that while $2,249,623 was obligated by the Internal Security Division during fiscal year 1971 only $2,030,400 had been allotted. This clearly constitutes the authorization or creation of an obligation in excess of the amount allotted.
Department of Justice Order 2030.4, dated July 15, 1970, states that:
"The allotment process is the principal means whereby responsibility is fixed for the conduct of program activities within the funds available.
"An allotment is an authorization by the head or other authorized employee of a department or agency to incur obligations within a specified amount pursuant to an appropriation or other statutory provision."
This order also requires the formal issuance by the Assistant Attorney General for Administsration of an Advice of Financial Action (AD 394) to notify agencies of allotments. Such formal notifications in this instance totaled the $2,030,400 mentioned above.
Since the regulation provides that the allotment process is the "principal means whereby responsiblity is fixed for the conduct of program activities within the funds available" it is clear that such "allotments" constitute the primary basis of the Department's system of appropriation and apportionment control.
The obligation of funds by the Internal Security Division in excess of an allotment established as a part of the Department's appropriation and apportionment control constitutes the "creation of an obligation * * * in excess of the amount permitted by regulations * * * " which is prohibited by subsection (h) of 31 U.S.C. 665 of the Anti-Deficiency Act.
Pursuant to 31 U.S.C. 665 (i)(2), you should immediately report to the President, through the Director of the Office of Management and Budget, and to the Congress, all pertinent facts regarding this violation of the Anti-Deficiency Act together with a statement of the action taken thereon.
Sincerely yours,
(SIGNED) ELMER B. STAATS Comptroller General of the United States