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FOREST SERVICE HANDBOOK
NATIONAL HEADQUARTERS (WO)
WASHINGTON, DC
FSH 6509.11k - SERVICEWIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Amendment No.: 6509.11k-2010-1
Effective Date: April 29, 2010
Duration: This amendment is effective until superseded or removed.
Approved: DONNA M. CARMICAL
Chief Financial Officer (CFO)
Date Approved: 04/27/2010
Posting Instructions: Amendments are numbered consecutively by handbook number and
calendar year. Post by document; remove the entire document and replace it with this
amendment. Retain this transmittal as the first page(s) of this document. The last amendment to
this handbook was 6509.11k-2008-1 to 6509.11k_52.
New Document
6509.11k_52
28 Pages
Superseded Document(s) by
Issuance Number and
Effective Date
6509.11k_52
(Amendment 6509.11k-2008-1, 09/22/2008)
23 Pages
Digest:
52 - Makes editorial changes to comply with Departmental Regulation 2230-001, dated
April 21, 2009, changing “annual certifications, and reviews” to “quarterly certifications,
reviews and corrective actions.”
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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FSH 6509.11k - SERVICEWIDE FINANCE AND ACCOUNTING HANDBOOK
CHAPTER 50 - ACCOUNTING
Table of Contents
52 - FUNDS CONTROL MANAGEMENT ....................................................................... 3
52.01 - Authority ..................................................................................................................... 3
52.03 - Policy .......................................................................................................................... 5
52.04 - Responsibility ............................................................................................................. 8
52.04a - Chief Financial Officer ............................................................................................. 8
52.04b - Associate Deputy Chief - West (Operations), Albuquerque New Mexico............... 8
52.04c - Director of Strategic Planning, Budget and Accountability, Washington Office
(WO) ........................................................................................................................... 9
52.04d - Director of Financial Policy, Washington Office (WO) ........................................... 9
52.04e - Director of Financial Management Systems, Washington Office (WO) .................. 9
52.04f - Director of Acquisition Management, Washington Office (WO) ........................... 10
52.04g - Director of Budget and Finance, Albuquerque Service Center (ASC-B&F) ......... 10
52.04h - Assistant Director for Budget Execution, Performance Measures, and Program
Support ...................................................................................................................... 11
52.04i - Deputy Chiefs, Regional Foresters, Forest Supervisors, Station Directors, Area
Director, Institute Director, Forest Products Laboratory Director, and Job Corps
Conservation Center Directors .................................................................................. 12
52.04j - Region, Unit, Station, Area, Institute, and Forest Products Laboratory Budget
Officers and Washington Office Deputy Area Budget Coordinators ....................... 13
52.04k - Budget Officer and Deputy Area Budget Coordinator ........................................... 13
52.04l - Program/Project Managers ...................................................................................... 14
52.04m - Procurement Official/Contracting Officer ............................................................. 15
52.05 - Definitions ................................................................................................................ 15
52.05a - Acronyms/Abbreviations ........................................................................................ 20
52.1 - Penalties .......................................................................................................................... 20
52.2 - Certification of Available Funds .................................................................................... 20
52.3 - Commitments ................................................................................................................. 21
52.4 - Obligations ..................................................................................................................... 22
52.5 - Process for Recording a Commitment and Obligation Document into Foundation
Financial Information System (FFIS) ........................................................................... 23
52.6 - Reviews of Unliquidated Obligations ............................................................................ 25
52.61 - Identify Unliquidated Obligations ............................................................................ 25
52.62 - Reviewing Unliquidated Obligations ....................................................................... 25
52.63 - Determine Validity ................................................................................................... 26
52.64 - Document Recommended Action ............................................................................. 27
52.7 - Forms .............................................................................................................................. 27
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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52 - FUNDS CONTROL MANAGEMENT
Office of Management and Budget (OMB) Circular A-11(“Preparation, Submission and
Execution of the Budget") requires that agencies establish policy to ensure administrative control
of funds to restrict obligations and expenditures to the lower of the amount of apportionments
made by OMB or the amount available for obligation and/or expenditure in the appropriation or
account. This directive establishes policy regarding the administrative control of funds within
the Forest Service. It sets forth policy and responsibilities for restricting, controlling, and
reporting obligations with respect to appropriations, apportionments, allotments and allocations.
It also outlines the penalties for violations of this policy.
52.01 - Authority
1. The Anti-Deficiency Act Title 31, United States Code, section 1341-1342, 1349-1351,
1511-1519, portion of the Budget and Accounting Procedures Act of 1950, as amended
by the Balanced Budget and Emergency Deficit Control Act of 1985, which prohibits
obligating or expending more than authorized ceilings, including funds to be sequestered.
This title establishes limitations on expending obligating amounts and voluntary services;
adverse personnel actions; criminal penalties for violations of Anti-Deficiency Act
offenders; reports on violations; apportionments, and appropriation accounting.
2. United States Code, Title 31, section 1101, 1104-1107, 3324, “Money and Finance.”
This title and sections establishes budget and fiscal requirements, appropriation authority,
and protocol for advances.
3. The Supplemental Appropriations Act of 1955 (31 United States Code, section 1108,
1501-1502) provides that an obligation is only enforceable when it is in writing; that the
purpose is to avoid inappropriate spending based on oral obligations; and, that the
balance of an appropriation limited to a definite period is available only for payment of
expenses incurred during that period.
4. United States Code, Title 31, section 1112, 1531, 3511-3512, 3524, “Money and
Finance.” This title and sections establish requirements for budget and fiscal
information; transfers and reimbursement; accounting systems requirements; and auditing
and settling accounts.
5. United States Code, Title 2, section 681-688, “The Congress.” This title establishes
requirements for Congressional consideration of proposed rescissions, reservations and
deferrals of budget authority.
6. Office of Management and Budget. Circular No. A-11, Part 4. This circular provides
instructions on budget execution.
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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7. Office of Management and Budget Circular No. A-123, Management Accountability
and Control. This circular provides guidance to Federal managers on improving the
accountability and effectiveness of Federal programs and operations by establishing,
assessing, correcting, and reporting on management controls.
8. Government Accountability Office (GAO), publication GAO/OGC-91-13,
Appropriations Law. This publication defines an obligation as “an action that creates a
liability or definite commitment on the part of the government to make a disbursement at
some later time. Furthermore, GAO’s appropriation law cites nine criteria for recording
obligations. When one criterion is met, the Agency must record that transaction as an
obligation.”
9. Title 31, United States Code, section 1501, requires one of nine documented events to
justify recording an obligation. If an obligation does not meet one of these standards, it
should be deobligated immediately.
10. Departmental Regulation 2230-001, April 21, 2009, Reviews of Unliquidated
Obligations (ULO), requires Agencies to certify quarterly that reviews and corrective
actions, related to unliquidated obligations inactive for at least 12 months, were
performed.
11. Chief Financial Officers (CFO) Act of 1990 (Public Law (Pub. L.) 101-575 and 31
United States Code (U.S.C.) sec. 501 et. Seq.), establishes a Chief Financial Officer
(CFO) of the United States within the Office of Management and Budget (OMB) and a
CFO in each department. The legislation requires the CFO to develop and maintain an
integrated agency accounting and financial management system, including financial
reporting and internal controls, that provides complete, reliable, consistent, and timely
information prepared on a uniform basis and responds to the financial information needs
of agency management.
12. Closing Accounts (31 U.S.C. sec. 1551-1557), defines procedures to be followed in
closing appropriation accounts available for definite periods of time. It establishes the
availability of appropriation accounts to pay obligations. The law addresses audit,
control, and reporting requirements that remain applicable to that account after the end of
the period of availability for obligation.
13. Federal Acquisition Regulations (FAR), section 4.804, Closeout of Contract Files,
provides time standards for administratively closing contract files. For simplified
acquisition procedures (SAP), closing must be upon receipt of evidence of receipt and
final payment made; for firm-fixed price (except using SAP), closing must be within six
months of receipt of evidence of physical completion; for all other contracts, closing must
be within 20 months of receipt of evidence of physical completion; and contracts
requiring settlement of indirect costs, closing must be made within 36 months of receipt
of evidence of physical completion.
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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14. 7 CFR 3016, section 50(b), Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments Closeout Reports, provides that
within 90 days after the expiration or termination of the grant, the grantee must submit all
financial, performance, and other reports required as a condition of the grant. Upon
request, federal agencies may extend this timeframe.
15. 7 CFR 3019, section 71, Administrative Requirements for Grants and Agreements
with Institutions of Uniform Higher Education, Hospitals and Other Non-Profit
Organizations, Closeout Procedures, provides that recipients shall submit, within 90
calendar days after date of completion of the award, all financial, performance, and other
reports as required by the terms and conditions of the award. The federal awarding
agencies may extend this timeframe.
16. Treasury Financial Manual (TFM) Bulletin No. 2007-03, Intragovernmental Rules,
provides Federal entities with guidance, including business practices, for all intragovernmental business. Section III of Bulletin No. 2007-03 requires that Federal buyers
of goods and services monitor their activity and age of their orders with Federal sellers.
Federal buyers are to determine the reason for lack of activity for obligation/payable
balances that have shown no activity for more than 180 days. Once the buyer has
determined that the order has been fulfilled, the buyer shall inform the seller that the
order will be deobligated within 30 days. However, if the seller provides proof of
continuing, or unbilled work, an order’s unliquidated obligation/payable balances shall
remain available for use, and shall be reflected as such in both the buyer’s and seller’s
respective accounting systems.
52.03 - Policy
It is Forest Service policy to obligate funds and to record those obligations as required by
Appropriations Law. Allotments and suballotments must be established at the highest practical
level. Allotments and suballotments are subject to the provisions of the Anti-Deficiency Act.
Funds may be obligated up to, but must not exceed, the assigned funding level. An obligation of
funds in an amount greater than the amount allocated by account or appropriation shall be
investigated by the Albuquerque Service Center Budget and Finance (ASC-B&F), Budget
Execution, Performance Measures and Program Support staff. The Assistant Director for Budget
Execution, Performance Measures and Program Support will provide the analysis to the Director
of Strategic Planning, Budget and Accountability, Washington Office (WO) to identify the
reason for the over-obligation, and any subsequent corrective action by the account holder as
well as recommendations for an agency action. The investigation will identify the amount of the
violation, circumstances surrounding the over-obligation and the person or persons responsible
for exceeding the amounts available. The Director of Strategic Planning, Budget and
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EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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Accountability (WO) will review the results of the investigation and analysis and determine
action necessary, including recommendations to the Chief for appropriate penalties in
compliance with requirements for dealing with Antideficiency Act violations. The responsible
party may be subject to penalties (see penalties in section 52.1) if it is determined that the
assigned funding level amount was exceeded, either intentionally or through negligence.
Funds which cannot be obligated by fiscal yearend for valid and/or important needs must be
identified and reported to the appropriate management level in sufficient time to temporarily
redistribute the funds to other high priority Agency needs. These funding shifts must be made
according to Agency policy on temporary movement of funds and in accordance with federal
appropriation law (see FSM 6510.1).
1. An officer or employee of the Forest Service shall not:
a. Make or authorize an expenditure or obligation exceeding an amount available in
an appropriation or fund.
b. Involve the Forest Service in a contract or obligation for the payment of money
before an appropriation is made, unless authorized by law.
c. Make or authorize an expenditure or obligation of funds required to be sequestered
under section 252 (“pay-as-you-go” requirement) of the Balanced Budget and
Emergency Deficit Control Act of 1985.
d. Involve the Forest Service in a contract or obligation for the payment of money to
be sequestered under section 252 (see above) of the Balanced Budget and Emergency
Deficit Control Act.
e. Obligate federal funds without the existence of a written agreement, contract, order
or documentary evidence.
2. The Forest Service accounting system, Foundation Financial Information System
(FFIS), is an integral part of the funds control process. Financial management systems
should provide the tools to:
a. Record all financial transactions affecting: apportionments; reapportionments;
allotments; agency restrictions; financial plans; program operating plans; obligations
and expenditures; as well as anticipated, earned, and collected reimbursements;
b. Prepare and reconcile financial reports that display cumulative obligations, and the
remaining unobligated balance by appropriation and allotment, and cumulative
obligations by budget activity and object class; and
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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c. Allow for adequate internal review and monitoring as well as external audits of
funds management and reporting.
The following policy relates to certification and review of unliquidated obligations:
1. All current and prior year obligations must be continuously reviewed, to ensure:
a. Optimum utilization of funds,
b. Obligated balances are not over or understated, and
c. Obligations are properly documented and reported.
2. Unliquidated obligations found to be unnecessary must be promptly adjusted. All
related transactions to deobligate and close out the obligations must be properly
documented and all documentation must be retained for audit purposes.
3. The Forest Service is required to certify quarterly that reviews and corrective actions
related to unliquidated obligations inactive for at least 12 months were performed.
Submit the certification to the Department Associate Chief Financial Officer - Financial
Operations (ACFO-FO), no later than 30 days after the end of each quarter.
4. The quarterly certification should include a report of unliquidated obligations
reviewed during the quarter and a list of the items deobligated to support the certification.
5. Quarterly certifications must be submitted by the following dates:
PERIOD
FIELD
CERTIFICATION DUE
TO THE ASC-B&F
FOREST SERVICE
CERTIFICATION DUE TO
THE ACFO-FO
October 1 – December 31
January 20
January 31
January 1 – March 31
April 20
April 30
April 1 – June 30
July 20
July 31
July 1 – September 30
October 20
October 31
6. Coordinate quarterly certification of unliquidated obligations between program,
contracting, and financial personnel. This certification will include agreements with
outside entities, grants, purchase orders, contracts, and miscellaneous obligations.
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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7. Monitor monthly unliquidated obligations, to ensure current and cumulative activities
are valid.
8. Deobligate any miscellaneous obligation(s) created outside of I-Web or IAS, with no
activity for the previous 12 months, unless there is a documented bona-fide need to
support the obligation/undelivered order.
9. Deobligate in I-Web or IAS, any obligation with no activity for the previous
12-months, unless there is a documented bona-fide need to support the
obligation/undelivered order.
10. Maintain ULO certification files for six years and three months, following the month
in which the related internal control review was conducted. Records should not be
destroyed if they are subject to litigation or other moratorium.
52.04 - Responsibility
52.04a - Chief Financial Officer
The Chief Financial Officer (CFO) is responsible for:
1. Ensuring proper funds control and reporting of agency fund management violations.
2. Ensuring the quality and integrity of financial data in the Foundation Financial
Information System (FFIS).
3. Providing quarterly certifications, to the ACFO-FO no later than 30 days after each
quarter, stating that reviews were performed and unliquidated obligations are valid based
on the reviews. (See Appendix B of Departmental Regulation 2230-001, dated
April 21, 2009).
4. Ensuring ULO compliance testing is performed, with the established internal control
requirements, as part of the annual quality assurance program of work.
52.04b - Associate Deputy Chief - West (Operations), Albuquerque New Mexico
The Associate Deputy Chief - West (Operations), Albuquerque, New Mexico, is responsible for
ensuring the Director of Budget and Finance, Albuquerque Service Center (ASC-B&F) is:
1. Using due diligence in implementing the policies set forth in this directive
(see 52.04h).
2. Establishing adequate internal controls over obligations.
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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3. Providing timely, unliquidated obligations (ULO) quarterly certifications to the Chief
Financial Officer, in order to comply with Departmental Regulation 2230-001, dated
April 21, 2009.
52.04c - Director of Strategic Planning, Budget and Accountability, Washington
Office (WO)
The Director of Strategic Planning, Budget and Accountability, Washington Office (WO), is
responsible for:
1. Preparing requests for apportionments and reapportionments.
2. Providing the Annual Program Direction that indicates allocations, Congressional
Direction, and/or priorities.
3. Annual work planning and accomplishment reporting, ensuring realistic program and
budget information is provided within the planning framework.
4. Preparing allocation advice in the amounts designated by appropriation, rescissions,
reprogramming, deferrals, and apportionments.
5. Ensuring that amounts allocated at the Forest Service level do not exceed
apportionments; especially during periods of continuing resolutions.
6. Ensuring adequate systems and controls are in place to facilitate sound fund
management.
52.04d - Director of Financial Policy, Washington Office (WO)
The Director of Financial Policy, Washington Office (WO) is responsible for:
1. Providing policy and guidance for the review and certification of unliquidated
obligations (ULOs).
2. Reviewing fund management authorities and regulations, and coordinating with
appropriate staffs to ensure funds control policy is updated timely.
52.04e - Director of Financial Management Systems, Washington Office (WO)
The Director of Financial Management Systems, Washington Office (WO), is responsible for:
1. Ensuring the automation of the entire spending cycle within Foundation Financial
Information System (FFIS) provides an efficient agency fund management and control
process; as well as reliable fund management reporting.
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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2. Providing year-end listing of open commitments subject to cancellation, to the
Director of Acquisition Management (AQM), and the Assistant Director of Budget
Execution, Performance Measures and Program Support, Albuquerque Service Center
(ASC-B&F), no later than 60 days prior to the end of the fiscal year affected, to ensure
commitments are cancelled and to facilitate FFIS annual close processes.
3. Ensuring that the Director, Budget and Finance, Albuquerque Service Center (ASCB&F), has cancelled all remaining commitment amounts that have not been obligated or
cancelled by the end of the fiscal year so FFIS may facilitate annual close processes.
4. Ensuring that financial systems are in compliance with funds control management;
including the ability to monitor the implementation of funds control policies.
5. Ensuring that financial systems can generate reports that identify unliquidated
obligations, inactive for 12 or more months.
52.04f - Director of Acquisition Management, Washington Office (WO)
The Director of Acquisition Management, Washington Office (WO), is responsible for:
1. Ensuring proper procurement actions, in particular, validating the availability of funds,
in accordance with this directive and for working with the Director of Financial
Management Systems and the Assistant Director for Budget Execution, Performance
Measures and Program Support (ASC-B&F), in ensuring compliance with this direction.
2. Facilitating the cancellation of all Integrated Acquisition Systems (IAS) open
commitments prior to the end of the fiscal year affected.
3. Ensuring Grants and Agreements Specialists and procurement officials’ process
modifications to obligations balances through subsidiary systems.
4. Reviewing outstanding obligations and working with the field, Acquisitions
Management staff, and other entities as necessary, to deobligate funds that are no longer
valid.
52.04g - Director of Budget and Finance, Albuquerque Service Center (ASC-B&F)
The Director of Budget and Finance, Albuquerque Service Center (ASC-B&F), is responsible
for:
1. Using due diligence in implementing the policies set forth in this directive.
2. Establishing adequate internal controls over obligations.
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
DURATION: This amendment is effective until superseded or removed.
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3. Coordinating with the Director of Strategic Planning, Budget and Accountability,
Washington Office (WO), to ensure solvency of funds.
4. Strengthening the ULO process and monitoring the validity and accuracy of
outstanding ULO balances at the national level.
5. Ensuring review of all Non Routine ULOs is made, by appropriate staff, to determine
validity and accuracy as of yearend.
6. Providing reports and queries from the USDA Financial Data Warehouse to facilitate
the reviews and quarterly certification of unliquidated obligations.
7. Receiving quarterly certifications.
8. Processing modification transactions to reflect the appropriate unliquidated obligation
balance after the adjustment.
9. Deobligating unliquidated miscellaneous obligations, inactive for 12 months or more
and $250 or less, unless there is a documented bona-fide need for the obligation to
remain.
10. Deobligating remaining balances on miscellaneous obligations when final payments
have been processed.
11. Assisting Grants and Agreement Specialists and procurement officials in processing
modifications to obligation balances through subsidiary systems.
12. Reviewing delivered, unpaid obligation balances for incident finance and accurately
and timely adjusting the balances to reflect remaining unpaid invoices.
13. Accurately and timely processing self-reversing standard voucher adjustments
(transaction code SV) to record the effect of material, unrecorded adjustments to correct
unliquidated obligation balances.
14. Timely providing unliquidated obligations (ULO) quarterly certifications to the
Associate Deputy Chief (West) Operations, Albuquerque, New Mexico, in order to
comply with Departmental Regulation 2230-001, dated April 21, 2009.
52.04h - Assistant Director for Budget Execution, Performance Measures, and
Program Support
The Assistant Director for Budget Execution, Performance Measures, and Program Support
(ASC-B&F), is responsible for:
WO AMENDMENT 6509.11k-2010-1
EFFECTIVE DATE: 04/29/2010
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1. Monitoring internal controls to ensure adherence to funds control management policy.
2. Investigating, reporting, and following-up on Anti-Deficiency Act violations, as well
as violations of agency limitations that are not violations of the Anti-Deficiency Act.
3. Ensuring that apportionment and appropriation levels are not exceeded and that all
apportionment requirements are in compliance.
4. Processing requests for commitment and obligation transactions received from the
Regional Foresters, Station Directors, Area Director, Institute Director, Forest Products
Laboratory Director, Deputy Chiefs, and Job Corps Conservation Center Directors and
their designees in a timely manner; and overseeing the program management of any
committed and obligated balances.
5. Ensuring that the budget funding authorization is not exceeded.
6. Performing an annual review and monitoring on the use of commitments in the
Foundation Financial Information System (FFIS) and on the adequacy of the commitment
thresholds.
7. Facilitating the cancellation of all non-IAS open commitments prior to the end of the
fiscal year affected.
8. Monitoring financial reports and internal controls to ensure compliance with funds
control policy.
9. Reviewing outstanding obligations and working with the field, Acquisitions
Management, and other entities as necessary, to deobligate funds that are no longer valid.
10. Timely providing unliquidated obligations (ULO) quarterly certifications to the
Director, Budget and Finance (ASC-B&F), in order to comply with Departmental
Regulation 2230-001, dated April 21, 2009.
52.04i - Deputy Chiefs, Regional Foresters, Forest Supervisors, Station Directors,
Area Director, Institute Director, Forest Products Laboratory Director, and Job
Corps Conservation Center Directors
Deputy Chiefs, Regional Foresters, Forest Supervisors, Station Directors, Area Director, Institute
Director, Forest Products Laboratory Director, and Job Corps Conservation Center Directors are
responsible for and shall delegate the following to their designated personnel:
1. Verifying that the source(s) and amount of funds used is available and appropriate for
the goods and services procured, and the appropriate budget object code is applied when
preparing a request for procurement that meets the established threshold.
WO AMENDMENT 6509.11k-2010-1
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2. Ensuring that obligations for respective units have been reviewed monthly and that
obligated balances are valid.
3. Complying with the policy and documentation requirements for the monthly review,
quarterly certification, and corrective action of unliquidated obligations.
4. Retaining, for audit purposes, a ULO certification file to support the quarterly
certifications completed.
5. Consolidating their units’ reviews and submitting the certifications to the ASC-B&F.
6. Working with the Assistant Director of Budget Execution, Performance Measures and
Program Support (ASC-B&F) to complete and forward the form for commitment and
obligation requests, and submission of the procurement package, with necessary
supporting documentation. This is to allow for proper recording of commitment and
obligation documents in FFIS for any procurement not processed in IAS or I-Web.
7. Canceling all IAS requisitions that have not been awarded by the end of the fiscal year
(No commitments shall remain on the books at the end of the fiscal year). See section
52.04g, for direction that the Director of Budget and Finance (ASC-B&F) will facilitate
the cancellation process.
52.04j - Region, Unit, Station, Area, Institute, and Forest Products Laboratory
Budget Officers and Washington Office Deputy Area Budget Coordinators
Region, Unit, Station, Area, Institute, and Forest Products Laboratory Budget Officers and
Washington Office Deputy Area Budget Coordinators are responsible for continuously verifying
and certifying the following:
1. Consolidating all units’ reports/certifications within their region, stations, areas and
forwarding to the ASC-B&F.
2. Ensuring sources and amount of funds are available and appropriate.
3. Ensuring procurement is consistent with management policy and planning decisions.
4. Ensuring requisition review is completed by the property management officer and
information technology coordinator, if applicable.
5. Ensuring appropriate four digit budget object code is applied.
52.04k - Budget Officer and Deputy Area Budget Coordinator
The unit budget officer is responsible for:
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1. Ensuring obligated balances are accurate.
2. Ensuring acquisition management, budget, and program staff attached to all units,
work together to complete the monthly unliquidated obligation reviews and quarterly
certifications for determining the validity of obligations.
3. Working with the appropriate staff to ensure timely action is taken to adjust and
deobligate identified unliquidated obligation balances.
4. Consolidating units’ quarterly certification of open obligation reports and forwarding
to the region, station and Area budget officer or deputy area budget coordinator (DABC).
52.04l - Program/Project Managers
Program/project managers are responsible, on a monthly basis, for:
1. Ensuring all purchases are authorized.
2. Ensuring expenditures are planned for in the workplan system (see FSM 6521.12).
3. Making appropriate adjustments to prevent overspending of allocated funds.
4. Adhering to agency fund management control policies in expending allocated funds.
5. Monitoring the financial activities of agreements or other obligations entered into.
6. Ensuring the accuracy of ULOs.
7. Working with the budget officer on the current status of the ULO for miscellaneous
obligations.
8. Reconciling ULOs for grants or agreements by:
a. Verifying the project’s status;
b. Ensuring receipt of all invoice requests and subsequent payments; and
c. Tracking the agreement’s accruals to determine if a valid ULO exists.
(1) Reporting valid ULOs to the units’ budget officer or DABC.
(2) Deobligating ULOs that should not exist, providing supporting documentation to
the Grants and Agreements (G&A) Specialist for closeout and/or deobligation of the
ULO.
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9. Completing, signing, and submitting form FS-6500-235, Deobligation and/or CloseOut Request Form for I-Web Grants and Agreements to your G&A specialist for
deobligation and appropriate IAS deobligation documentation request forms to
procurement official/budget approver.
52.04m - Procurement Official/Contracting Officer
As the obligating official for all procurement requests, the procurement official is responsible
for:
1. Verifying the project’s status.
2. Ensuring receipt of all invoice requests and subsequent payments.
3. Properly managing the contracts to determine if a valid ULO exists.
a. If a valid ULO exists, then the valid ULO must be reported to the units’ budget
officer or DABC. Appropriate justification should be documented in unit files.
b. If a ULO exists which must be deobligated and the obligation was created in IAS,
the procurement official must take the necessary steps in IAS to close the obligation.
Supporting documentation must be maintained in the contract files.
c. If a ULO exists which must be deobligated but the obligation was created outside
of IAS, the procurement official must provide the required supporting documentation
to the ASC-B&F. Copies of the supporting documentation must be maintained in the
contract files.
4. Taking the appropriate action to deobligate ULOs, that are determined to be no longer
needed, in accordance with USDA regulations and Agency procedures.
52.05 - Definitions
AD. Automated Disbursement; Transaction code for disbursements in FFIS.
Allocation. The amount of obligational authority transferred from one agency, bureau, or
account that is set aside in a transfer appropriation account to carry out the purpose of the
parent appropriation fund.
Allotment. An authorization by either the agency head or another authorized employee to
subordinates to incur obligations within a specified amount. Each agency makes
allotments pursuant to specific procedures it establishes within the general apportionment
requirements stated in OMB Circular No. A-11. The amount allocated by an agency
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cannot exceed the amount apportioned by the Office of Management and Budget (OMB).
An allotment is part of an agency system of administrative control of funds whose
purpose is to keep obligations and expenditures from exceeding apportionments and
allotments.
Apportionment. The action by which the Office of Management and Budget (OMB)
distributes amounts available for obligation, including budgetary reserves established
pursuant to law, in an appropriation or fund account. An apportionment divides amounts
available for obligation by specific time periods (usually quarters), activities, projects,
objects or a combination thereof. The amounts so apportioned limit the amount of
obligations that may be incurred. An apportionment may be further subdivided by an
agency into allotments, suballotments, and allocations.
Appropriation. A provision of law (not necessarily in an appropriations act) authorizing
the expenditure of funds for a given purpose. Usually, but not always, an appropriation
provides budgetary authority.
AQM. Forest Service acquisition management personnel with authority to order goods
and services obligating the government.
Budget. The Budget of the United States Government, which sets forth the President’s
comprehensive financial plan and indicates the President’s priorities for the Federal
Government.
Budget Authority. The authority provided by law to incur financial obligations that will
result in outlays. Specific forms of budget authority include appropriation, borrowing
authority, contract authority, and spending authority from offsetting collections.
Budget Execution. Includes funds control and provides features to record, distribute, and
control budget authority and spending in accordance with the provisions of OMB
Circular A-11, Part 4, Instructions on Budget Execution. Budget execution provides the
ability to track the effects of financial events on the sources and uses of budgetary
resources authorized by the President and the Congress. Its primary purpose is to ensure
that spending does not exceed funds appropriated or authorized.
Budget Officer or Unit Designee. The person responsible for ensuring the source(s) and
amount of funds is available and appropriate. This is generally an employee in a GS-56X
series position.
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Closeout. The process by which a federal awarding agency determines that all applicable
administrative actions have been completed by the recipient/cooperator and Federal
awarding agency. The administrative action must be documented with substantive
documentation indicating the completion and/or receipt of goods and services, receipt of
invoices, and payments made against the grant or agreement obligation.
Commitment. A non-binding reservation of funds for a planned purchase of goods and
services.
Deobligation. The cancellation, downward adjustment, or deletion of a previously
recorded obligation. Such adjustments may be attributable to cancellation of a project or
contract, price revisions, corrections of amounts previously recorded, or differences
between obligations previously recorded and payments made. Additionally, this includes
the portion of the Federal awarding agency’s obligated funds not obligated by the
recipient/cooperator in the pursuit of the grant/agreement (for example, the cooperator
has performed all work and invoiced a final request for $8,000 against a single Forest
Service job code, while the total Forest Service obligation for that job code on the
agreement was $9,000. The total amount to be deobligated from that job code is $1,000).
Department Charges. The cost of services provided or expenditures incurred by the
USDA on behalf of the Forest Service, such as Worker’s Compensation; Unemployment
Compensation, National Finance Center; GSA office space rent (SLUC); and Centralized
Computers, Fixed Operating Rate for Software.
FFIS. Foundation Financial Information System; the Forest Service’s integrated core
financial system.
IAS. Integrated Acquisition System; the United States Department of Agriculture’s
integrated procurement system.
IC. IAS Receipt Confirmation: the transaction code for actual receipt of goods or
services created through the IAS system.
IO. IAS Obligation: the transaction code for an obligation in FFIS created through the
IAS system.
IQ. IAS Requisition: The transaction code for a requisition in FFIS created through the
IAS system.
I-Web (G&A). Forest Service Infrastructure System (Grants and Agreement) module.
IPAC. Intergovernmental Payment and Collection System; the financial system used to
transfer funds between government agencies.
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MO. Miscellaneous Order; the transaction code for an obligation in FFIS.
Non Routine ULO. An obligation created through a process which is not the norm such
as year-end obligations for undelivered ordered items. These are normally SV documents
and are created at the ASC-B&F.
Obligating Official. The Forest Service employee authorized to enter into a formal
agreement with an outside entity.
Obligations. Amounts of orders placed, contracts awarded, services received, and similar
transactions during a given period that will require payments during the same or a future
period. An obligated balance equals the cumulative amount of budget authority that has
been obligated but not yet outlayed, also known as unpaid obligations net of accounts
receivable and unfilled customer orders.
Payable Agreement. An agreement that establishes an obligation for the Forest Service to
advance or reimburse a cooperator or trading partner for performance of the terms of the
instrument.
Program Direction. The Forest Service program direction contains the operating
direction and guidance for fiscal year spending. The direction and guidance incorporates
the Agency’s mission priorities, such as those in the strategic plan, annual performance
plans, and fiscal year budget justification. It also incorporates congressional direction
and intent contained in the fiscal year appropriation acts and accompanying congressional
reports. The Washington Office develops the program direction to provide maximum
flexibility and clarity of the agency budget to line officers in achieving the goals of the
Forest Service.
PV. Payment Voucher; the transaction code for a payment in FFIS.
Reapportionments. Reapportionments are requested when changes need to be made to
the previously approved apportionment. Reapportionments may be required for any of
the following:
1. Newly obligational authority when unobligated carryover for the same appropriation
was previously apportioned.
2. Supplemental appropriations.
3. Appropriation transfers.
4. Release of deferrals or denial of proposed rescissions.
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RC. Receipt Confirmation; the transaction code for actual receipt of goods and/or
services in FFIS.
RQ. Requisition; the transaction code for commitment in FFIS.
R/S/A. Forest Service organizational elements represented by Region, Station, and Area.
TO: Travel Obligation: the transaction code for an obligation created in FFIS through
the GovTrip system.
Spending Chain. A series of accounting transactions that occur when purchasing goods
and/or services, or when other expenditures are anticipated.
Straight Payment. A spending transaction that excludes recording an obligation because
of the short time span between the placement of the order and delivery of goods and
services.
Suballotment. The distribution of spending authority and outlays by the appropriations
committees of each house of Congress to their relevant appropriations subcommittees of
jurisdiction based on the levels contained in the concurrent resolution on the budget.
Transfer. To move budgetary resources from one budget account to another. Depending
on the circumstances, the budget may record a transfer as an expenditure transfer, which
means a transfer that involves an outlay, or as a nonexpenditure transfer which means a
transfer that does not involve an outlay.
Unliquidated Obligation (ULO). The balance remaining from the amount of orders
placed; contracts or other binding agreements awarded; or services rendered after making
any payments or processing deobligations.
Unliquidated Obligation Certification File. The file that contains the working papers
supporting an unliquidated obligation review. The documentation will vary based upon
the organization level.
Unobligated Balances. Balances of budgetary resources that have not yet been obligated.
Unobligated balances expire (cease to be available for obligation) for: 1-year accounts at
the end of the fiscal year; multiple year accounts at the end of the period specified; noyear accounts only when they are rescinded by law, purpose is accomplished, or when
disbursements against the appropriation have not been made for 2 full consecutive years.
WorkPlan. The agency project work planning, tracking, and reporting system. It is a
standardized tool to be used by all organizational levels which support development and
execution of a unit’s fiscal year program of work.
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52.05a - Acronyms/Abbreviations
I-Web (G&A) module. I-Web (Grants and Agreement) module supports the Agency’s
grants and agreements management. It interfaces financial transactions to the Agency’s
accounting system.
IAS. The USDA Integrated Acquisition System supports procurement management and
interfaces financial transactions to the Agency’s accounting system.
52.1 - Penalties
Any officer or employee of the Forest Service who violates the prohibitions of the AntiDeficiency Act (31 U.S.C. 1341 (a), 1342, or 1517(a)) shall be subject to appropriate
administrative and criminal penalties.
1. Administrative discipline may consist of a(n):
a. Letter of reprimand or censure for the official personnel record of the officer or
employee.
b. Unsatisfactory performance rating.
c. Transfer to another position.
d. Suspension from duty without pay.
e. Removal from office.
2. Criminal penalties may include the following:
a. A fine of not more than $5,000;
b. Imprisonment for not more than two years; or
c. Both a fine of not more than $5,000 and imprisonment for not more than two
years.
52.2 - Certification of Available Funds
The budget officer should ensure the availability of funds prior to any commitment or obligation
for procurement of goods and services of any type. When possible, a commitment should be
established in FFIS on a requisition document based on the type of business activity. The
availability of funds for:
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1. Contracts and orders processed in the Integrated Acquisition System (IAS) occur
when the request for goods or services is entered in IAS by the requisitioner and
approved by the designated budget approver.
2. Grants and agreements processed in the I-Web (Grants and Agreements) module
occurs when the program manager enters the request in I-Web and the transaction is
approved by the budget approver. Grants and agreements must be processed in I-Web.
The procurement official is notified by the Integrated Acquisition System (IAS) and IWeb (G&A) modules after the commitment of funds has been completed. After the
Budget Officer approves the request, as discussed in section 52.04k, a copy of the
appropriate supporting documentation for each system must be forwarded to the
procurement staff. Except as required for advance acquisition planning, the procurement
staff shall not start the acquisition process without establishment of the commitment, as
required.
3. Contracts and orders not processed in IAS (for example, purchase orders with other
government agencies, national fire contracts/agreements, blanket purchase agreements,
and real property leases), and other expenditures (for example, land acquisitions) must be
performed by recording information on the appropriate Agency approved commitment
and obligation request document. Work with the Assistant Director for Budget
Execution, Performance Measures, and Program Support (ASC-B&F) to complete and
forward supporting documentation that must accompany these requests.
52.3 - Commitments
When the IAS or I-Web G&A request is approved by the Budget Approver, a commitment
document is automatically recorded in the Foundation Financial Information System (FFIS).
I-Web grants and agreements commitments are recorded in FFIS by I-Web when the request is
equal to or exceeds $5,000.
A commitment document is required for all non-IAS or I-Web G&A transactions of $100,000 or
more. These commitments shall be manually recorded in FFIS by the Budget Execution staff.
Units should work with the Assistant Director for Budget Execution, Performance Measures, and
Program Support (ASC-B&F) to complete and forward the Agency approved commitment and
obligation request document. Supporting documentation must be sent to Budget Execution
1-866-879-1764. The requester must be notified within 5 business days by email that the
commitment is recorded in FFIS. The requests are processed by the ASC-B&F within 3 working
days of receipt.
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ield budget officers should regularly review commitments during the year and advise Budget
Execution staff by completing the appropriate Agency commitment and obligation request
document when a decommitment is necessary. Decommitting funds releases budget authority
for other planned activities.
52.4 - Obligations
The requirement of appropriations law is to record amounts as obligations only for intended and
legal purposes, and only when supported by documentary evidence. Under no circumstances
shall reserves or estimates be recorded or reported as an obligation to cover a possible unknown
or contingent obligation. A manually entered obligation is required for all non-IAS or I-Web
transactions. A commitment transaction must precede an obligation if the obligation is at or
greater than $100,000.
Additional guidelines that must be adhered to record and manage obligations are as follows:
1. Transactions where the timing between the planned expenditure, the order, and the
payment is less than 15 days an obligation is not required prior to payment for the
immediate purchase and receipt of supplies or services.
2. Obligations, or estimates of expected obligations, must be recorded in the fiscal year
in which the goods or services are ordered or the grant or agreement was signed, against
available funds according to appropriation use guidelines.
3. Units must complete the appropriate Agency approved commitment and obligation
request document, and required supporting documentation for Budget Execution and
submit to 1-866-879-1764. The requester shall be notified within 5 business days by
email that the obligation request is completed. The requests are processed by the ASCB&F within 3 working days of receipt. This will ensure that units will have the
obligation document number(s) to provide to the vendor so that orders can be processed
in a timely manner. The exception to this rule is that all obligations for the month must
be recorded by month-end, for example, if an obligation is received the morning of the
last day of the month every attempt should be made to record that obligation before close
of business.
4. Grant and agreement documentation files must support the proper period of
performance. The obligation is no longer valid if the funding period has expired, or we
are waiting for final closeout documents from the cooperator.
5. Obligations must be recorded appropriately as either undelivered or delivered to
ensure the correct general ledger account is posted.
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6. Existing obligations must be immediately deobligated when they have no legal basis,
or were not properly authorized and supported. An obligation must be deobligated when
orders for goods and services are cancelled or a final invoice is received and the
disbursement is less than the original obligation.
7. Units must maintain FFIS obligation documents as long as the obligation is valid, and
in accordance with the 6 year, 3 months retention criteria for such documents.
8. Review payment data entered into FFIS to ensure data integrity, and supporting
documentation is maintained. For example, ensure the correct amount is entered and the
correct job codes are used.
52.5 - Process for Recording a Commitment and Obligation Document into
Foundation Financial Information System (FFIS)
Once the grant or agreement has been reviewed and approved and all parties have signed the
grant or agreement, the obligation Miscellaneous Order (MO) is created in I-Web. Personnel
from ASC-B&F must access I-Web and approve the obligation when the signed agreement is
faxed to them. When the grant or agreement is approved it must be electronically transmitted to
FFIS. When the transaction is accepted in FFIS, FFIS must then back feed to I-Web
confirmation that the MO document is established.
Once the procurement or contract has been awarded, the obligation (IO) is created in IAS and
electronically transmitted to FFIS. IAS is automatically notified of the status of the transaction.
For commitments and obligations other than IAS contracts and orders and I-Web grants and
agreements (excluding National Fire Contracts/Agreements), a transaction request shall be
submitted to the Budget Execution, Performance Measures and Program Support staff (ASCB&F). The field unit must complete and send the appropriate Agency approved commitment
and obligation request, and supporting documents as instructed to the ASC-B&F Budget
Execution personnel. Personnel from ASC-B&F, Budget Execution must review the package for
completeness and input the transaction in FFIS. The ASC-B&F Budget Execution personnel
may contact the person who submitted the transaction request if additional information is needed.
The ASC-B&F Budget Execution personnel will also notify the person who submitted the
request when the commitment or obligation transaction has successfully processed in FFIS.
For commitments of National Fire Contracts/Agreements, submit the appropriate Agency
approved commitment and obligation request, and supporting documentation to the ASC-B&F
Incident Business team for direct entry in FFIS.
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The FFIS transaction code varies depending on the type and source of the transaction. The
following information shall be used for commitments and obligations:
Process
I-Web
IAS
All Others (manually
entered)
GovTrip
Transaction Code
Commitment
RQ
IQ
RQ
Transaction Code
Obligation
MO
IO or IN
MO
Vendor Code
Commitment
FS COMMIT
COMMITC
FSCOMMIT
N/A
TO
N/A
The vendor code for the obligation varies based on the provider of the goods or services. For
example, the vendor code for GSA is 47000016FO B, whereas the vendor code for OPM is
24000001FO A.
To ensure that undelivered orders are stated correctly in FFIS, units shall use IAS, I-Web,
GovTrip, and the ASC-B&F Budget Execution procedures, to record obligations in an accurate
and timely manner. When establishing the obligation in FFIS, users must insert the instrument
number into the data fields as described below:
1. When a new Miscellaneous Order (MO) document is established by the ASC-B&F
staff at the unit’s request, include the instrument number on the header screen in the
“Responsible Person” field. This field is included in the national query (sec. 56.75d,
par. 3) and links the FFIS MO document number to the specific obligated instrument
number, such as a contract.
2. When updating an existing MO, insert the instrument number in the correct field to
provide cross-reference information.
3. When initiating a grant or agreement in I-Web, insert the instrument number in the
“Responsible Person” field.
When an invoice is processed for payment, ensure payments (PV) refer to the document
identifier number of the established MO. Use of the document number invokes referencing
which automatically reduces or liquidates the prior entry in the spending chain (for example, the
MO liquidates the RQ and the PV liquidates the MO). Referencing is important because it
ensures obligations are not duplicated in the accounting system.
The committed amounts for anticipated recurring expenditures and planned expenditures should
be modified monthly (downward) to reflect the results of actual obligations and payments.
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52.6 - Reviews of Unliquidated Obligations
This section provides servicewide direction for quarterly certification of unliquidated obligations
(ULO). The Forest Service is required to certify quarterly unliquidated obligation balances, in
accordance with the timeframe in section 52.03, Policy, of this direction.
Quarterly certifications and corrective actions are necessary to:
1. Properly report obligation balances,
2. Certify the validity of obligated balances,
3. Make funds available that otherwise would not be used,
4. Reduce the risk of misuse and theft of funds, and
5. Improve the Treasury Department’s ability to forecast outlay and borrowing needs.
52.61 - Identify Unliquidated Obligations
The following procedures apply to the obligating official/responsible person who must conduct
the review of each selected unliquidated obligation to determine:
1. Whether delivery or performance of goods or services has occurred or is expected to
occur; and
2. If accounting corrections are necessary to the obligation data in the accounting system.
Use the pre-populated ULO Review report posted on the ASC-B&F Reports Dashboard to
identify unliquidated obligations that will be reviewed monthly and certified quarterly.
52.62 - Reviewing Unliquidated Obligations
The validity of unliquidated obligations is not only a legal requirement but critical to budget
execution and good funds management. Amounts inappropriately recorded as unliquidated
obligations represent missed opportunities to pursue other funding needs. This makes the
continuous emphasis on the accuracy of unliquidated obligations very important to the whole
Agency and the Federal government in its entirety. This effort will require participation and
coordination among program personnel, acquisition management, budget, and finance staffs.
This review will incorporate agreements with outside entities, grants, purchase orders, contracts,
TDY travel, and other miscellaneous obligations.
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Use the ASC-B&F, pre-populated form FS-6500-218, which identifies the open obligations, to
assist in the review and certification. Quarterly certification must be completed on the prepopulated report, mentioned above, using the e-mail functions of the form. In addition,
certification from R/S/A and DABC’s must include a certification memo processed through the
correspondence database.
52.63 - Determine Validity
1. During the review period, the unit budget officer or DABC should request the
employee who entered into a formal agreement with an outside entity to review the
selected unliquidated obligation(s) for validity.
2. In determining whether an obligation was valid when it was created, the obligating
event must meet certain criteria. An obligation may only be recorded as a result of a
formal order legally requiring the agency to pay a future liability.
3. Verbal commitments, promises, and offers by others inside or outside of the Agency
have no legal standing to be considered an obligation. Spreadsheet calculations do not
constitute adequate documentation to obligate funds.
4. The reviewing official should consider, if applicable:
a. The period of fund availability;
b. The timeliness of delivery or performance;
c. The completeness and accuracy of information provided by grant or contract
parties;
d. Whether funds have been expended in a manner which is consistent with the
percentage of completion;
e. Whether remaining funds are sufficient to complete the order in accordance with
specifications;
f. Justifications for amendments to funding levels;
g. Reasons for lack of activity, such as litigation or delay in contract closeout;
h. Any provisions of the agreement or contract that may permit or prohibit
deobligation or reprogramming; and
i. Whether supporting documentation exists for recorded unliquidated obligations,
and any other relevant factors, when making a determination on the validity of an
ULO.
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52.64 - Document Recommended Action
As a result of the review, the reviewing official for each selected transaction must notify the unit
budget officer or DABC that the review is complete and the results thereof. The notification
should confirm the review and validation of each selected unliquidated obligations.
The review should disclose undelivered orders requiring immediate management actions, such
as, orders:
1. That does not have a legal basis, or are not properly authorized and supported by
appropriate documentation;
2. Which have been completed and have not been closed out;
3. Under which no future payments are expected;
4. Under which delinquent payment exists and additional research is needed to determine
why the invoice has not been processed or paid; and
5. That has accounting errors because of duplicated entry or incorrect amounts.
52.7 - Forms
The following forms are available and should be used by Financial Management.
All the forms listed can be found at http://fsweb.fs.usda.gov
1. Form FS-6500-2, Request/Amendment for Travel Authorization.
2. Form FS-6500-207, Request to Increase Government Travel Card Limit.
3. Form FS-6500-208, Reimbursable or Advance Collection Agreement Job Code
Assignment.
4. FS-6500-224, Commitment & Obligation Request Form
5. Form FS-6500-229, Request for Reimbursement – Employees and Volunteers.
6. Form FS-6500-230, Blanket Purchase Agreement (BPA) Invoice Receipt
Certification.
7. Form FS-6500-231, Vendor Code Information Worksheet.
8. Form FS-6500-232, Miscellaneous Payments Transmittal Form.
9. Form FS-6500-236, Authorization to Terminate Collection Action.
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10. Form FS-6500-237, Lockbox Content Manifest.
11. Form FS-6500-238, Inquiry on Missing or Lost Payment.
12. Form FS-6500-242, System Change Request (CR) Form.
13. Form FS-6500-243, Reimbursable & Advance Collection Agreement (RACA)
Closeout Request/Notification Form.
14. Form FS-6500-245, Donation-Found-Transfer-In Form for Capitalized Assets.
15. Form FS-6500-248, Designation of Collection Officer.
16. Form FS-6500-252, FFIS Table Update Request.
17. Form FS-6500-253, Collection Officer Audit Check List.
18. Form FS-6500-254, Commitment and Obligation Request for OPM Investigation.