{"id":353837,"date":"2016-04-04T10:47:11","date_gmt":"2016-04-04T15:47:11","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/military\/administrative-issues-benefits\/the-anti-deficiency-act-what-you-need-to-know.html"},"modified":"2016-06-20T20:25:06","modified_gmt":"2016-06-21T01:25:06","slug":"the-anti-deficiency-act-what-you-need-to-know","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/military\/administrative-issues-benefits\/the-anti-deficiency-act-what-you-need-to-know.html","title":{"rendered":"The Anti-Deficiency Act: What You Need to Know"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">The Anti-Deficiency Act: What You Need to Know<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><i>Created by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw&#8217;s team<\/a> of legal writers and editors<\/i><\/p>\n\n                | Last updated\n        <time>\n                            June 20, 2016\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n    <div class=\"fl-callout-text article-blockquote\">\n        <p>Often times, Congress limits funds only for certain purposes for a certain period of time. Federal agencies are under an obligation to spend their funds according only to these congressional mandates.<\/p>\n\n    <\/div>\n\n<p>While some people think there\u2019s little accountability for federal spending, it happens to be taken very seriously, especially in the military. Under our system of government, Congress is responsible for <a href=\"https:\/\/dictionary.findlaw.com\/definition\/appropriation.html\" target=\"_blank\" rel=\"noopener\">appropriating<\/a> funds for executive agencies, including directions for how, when, and where such funds can be spent.&nbsp;<\/p>\r\n<p>That\u2019s where the <a href=\"http:\/\/www.gao.gov\/legal\/lawresources\/antideficiencybackground.html\" target=\"_blank\" rel=\"noopener\">Anti-Deficiency Act <\/a>(ADA) comes into play. The ADA establishes civil and criminal penalties for federal employees who fail to comply with laws appropriating and authorizing the use of federal funds. Specifically, the ADA prohibits federal employees from spending money:<\/p>\r\n<ul>\r\n<li>For a purpose different from that authorized by Congress<\/li>\r\n<li>At a time when such funds are not authorized by Congress<\/li>\r\n<li>In excess of the amount authorized by Congress<\/li>\r\n<\/ul>\r\n<p>While this may seem like more of an accounting game for someone else to worry about, there are serious consequences even for what appear to be small <a href=\"http:\/\/comptroller.defense.gov\/Portals\/45\/documents\/fmr\/Volume_14.pdf\" target=\"_blank\" rel=\"noopener\">violations of the ADA<\/a>. In 2011, for example, two service members <a href=\"http:\/\/www.gao.gov\/assets\/600\/590553.pdf\" target=\"_blank\" rel=\"noopener\">received letters of reprimand<\/a> after spending up to $12,000 for items such as bottled water, a water dispenser, and paper goods because the funds for such purchases were not available at the time.<\/p>\r\n<p>Read on to learn more about the Anti-Deficiency Act and how it can impact your military career.<\/p>\r\n<h2>How Can the ADA Affect You?<\/h2>\r\n<p>As you advance in your military career, you&#8217;ll likely find yourself in a leadership position, perhaps even in a staff or staff support position where you have some responsibility over a unit&#8217;s budget or expenditures. At one time or another, you&#8217;re going to see what keeps the military going even more than fuel or MREs &#8211; funding.<\/p>\r\n<p>There are <a href=\"https:\/\/dap.dau.mil\/acquipedia\/Pages\/ArticleDetails.aspx?aid=9f96cbe4-ed8f-4d20-94c9-b89130c0eb70\" target=\"_blank\" rel=\"noopener\">5 major pots of money<\/a> available to the military through congressional appropriations:<\/p>\r\n<ol>\r\n<li><u>Military Personnel (MILPER)<\/u>: This covers such things as pay, allowances, subsistence, and travel.<\/li>\r\n<li><u>Operations and Maintenance (O&amp;M)<\/u>: This is a broader category of funding and can be used to support operations (for example, purchasing ammunition) and to maintain equipment.<\/li>\r\n<li><u>Research, Development, Test and Evaluation (RDT&amp;E)<\/u>: This covers scientific research and development performed by the military branches.<\/li>\r\n<li><u>Procurement<\/u>: This typically covers purchases of investment items with a long life-span, like Abrams tanks or F-22 Raptors.<\/li>\r\n<li><u>Military Construction (MILCON)<\/u>: This normally covers the acquisition, construction or installation of facilities.<\/li>\r\n<\/ol>\r\n<p>Congress will typically appropriate money from the federal budget into these main categories, although other categories and funding also exist.<\/p>\r\n<p>If you&#8217;ve been tasked as the OIC or NCOIC for an upcoming training event, you&#8217;ll want to make sure your unit has enough of the right kind of money to pay for what you need, whether it be money for billeting, subsistence or equipment. Typically this would come from the MILPER or O&amp;M pots, but before any money is spent, you should consult with your unit&#8217;s finance officer or legal advisor. After all, if you purchase MREs with money set aside for construction projects, that will most likely constitute an ADA violation.<\/p>\r\n<h2>ADA Investigations and Penalties<\/h2>\r\n<p>Let&#8217;s say that you accidentally spent last year&#8217;s O&amp;M money to support a training operation this year. If that money was only appropriated for last year, this could constitute an ADA violation because only current money can be used for current year needs. Even though you may have been swamped at the time and only inadvertently made the mistake, this is no defense as good faith or mistake of fact <a href=\"http:\/\/comptroller.defense.gov\/Portals\/45\/documents\/fmr\/current\/14\/14_09.pdf\" target=\"_blank\" rel=\"noopener\">will not relieve you from liability<\/a> for an ADA violation. This is all the more reason to speak with a finance officer or legal advisor before you spend any funds.<\/p>\r\n<p>Upon discovery of an ADA violation, a formal investigation will take place. If it determines that an ADA violation took place, your military branch is <a href=\"https:\/\/www.whitehouse.gov\/sites\/default\/files\/omb\/assets\/a11_current_year\/s145.pdf\" target=\"_blank\" rel=\"noopener\">required to report<\/a> it along with all ADA violations (regardless of dollar amount) to:<\/p>\r\n<ul>\r\n<li>The President<\/li>\r\n<li>Congress<\/li>\r\n<li>Comptroller General<\/li>\r\n<li>Office of Management and Budget<\/li>\r\n<\/ul>\r\n<p>In addition, the Government Accountability Office (GAO) publishes summary reports of ADA violations online. Depending on the circumstances and nature of the violation, you may receive an adverse administrative action such as <a href=\"https:\/\/www.findlaw.com\/military\/administrative-issues-benefits\/what-is-non-judicial-punishment.html\">non-judicial punishment<\/a>, or you may face prosecution in a court-martial. A knowing and willful violation of the ADA is considered a <a href=\"http:\/\/www.gpo.gov\/fdsys\/pkg\/USCODE-2011-title18\/html\/USCODE-2011-title18-partII-chap227-subchapA-sec3559.htm\" target=\"_blank\" rel=\"noopener\">Class E Felony<\/a> subject to a $5,000 fine, 2 years imprisonment, or both.<\/p>\r\n<p>However, if you find yourself in this situation, it may not be all doom and gloom and you may be able to avoid having the President learn your name from the GAO. For example, there are ways to correct ADA violations after the fact, so long as proper funds were available at the time of the violation and at the time of the correction.<\/p>\r\n<h2>Additional Resources<\/h2>\r\n<p>If you&#8217;re interested in learning more about the Anti-Deficiency Act and your legal liabilities, you should <a adhocenable=\"false\" href=\"https:\/\/lawyers.findlaw.com\/military-law\/\" target=\"_blank\" rel=\"noopener\">speak with a military attorney or a civilian attorney who specializes in military law<\/a> especially because congressional appropriations and authorizations frequently change.<br>\r\n<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-up\" clip-path=\"url(#clip0_604_3418)\">\n                        <path id=\"Vector\"\n                              d=\"M6 21H3C2.46957 21 1.96086 20.7893 1.58579 20.4142C1.21071 20.0391 1 19.5304 1 19V12C1 11.4696 1.21071 10.9609 1.58579 10.5858C1.96086 10.2107 2.46957 10 3 10H6M13 8V4C13 3.20435 12.6839 2.44129 12.1213 1.87868C11.5587 1.31607 10.7956 1 10 1L6 10V21H17.28C17.7623 21.0055 18.2304 20.8364 18.5979 20.524C18.9654 20.2116 19.2077 19.7769 19.28 19.3L20.66 10.3C20.7035 10.0134 20.6842 9.72068 20.6033 9.44225C20.5225 9.16382 20.3821 8.90629 20.1919 8.68751C20.0016 8.46873 19.7661 8.29393 19.5016 8.17522C19.2371 8.0565 18.9499 7.99672 18.66 8H13Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\"\n                              stroke-linejoin=\"round\"><\/path>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3418\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"><\/rect>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"No\"\n                value=\"no\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">No<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\">\n                    <g id=\"thumbs-down\" clip-path=\"url(#clip0_604_3423)\">\n                        <path id=\"Vector\"\n                              d=\"M16 0.999995H18.67C19.236 0.989986 19.7859 1.18813 20.2154 1.55681C20.645 1.9255 20.9242 2.43905 21 3V10C20.9242 10.5609 20.645 11.0745 20.2154 11.4432C19.7859 11.8119 19.236 12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n               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was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--understandable\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Easy to understand\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--understandable\"\n                        >Easy to understand<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--solved-problem\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Solved my problem\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n         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id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n              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