(6) a liability that may result from pending litigation; (7) employment or services of persons or expenses of travel under law; (8) services provided by public utilities; or (9) other legal liability of the Government against an available appropriation or fund. (b) A statement of obligations provided to Congress or a committee of Congress by an agency shall include only those amounts that are obligations consistent with subsection (a) of this section. §1502.1 Balances available (a) The balance of an appropriation or fund limited for obligation to a definite period is available only for payment of expense properly incurred during the period of availability or to compete contracts properly made with that period of availability and obligated consistent with section 1501 of this title. However, the appropriation or fund is not available for expenditure for a period beyond the period otherwise authorized by law. (b) A provision of law requiring that the balance of an appropriation or fund be returned to the general fund of the Treasury at the end of a definite period does not affect the status of lawsuits or rights of action involving the right to an amount payable from the balance. * SUBCHAPTER IV-CLOSING ACCOUNTS 2 3 § 1551. Definitions; applicability of subchapter 3 (a) In this subchapter (1) An obligated balance of an appropriation account as of the end of a fiscal year is the amount of unliquidated obligations applicable to the appropriation less amounts collectible as repayments to the appropriation. (2) An unobligated balance is the difference between the obligated balance and the total unexpended balance. (3) A fixed appropriation account is an appropriation account available for obligation for a definite period. (b) The limitations on the availability for expenditure prescribed in this subchapter apply to all appropriations unless specifically otherwise authorized by a law that specifically (1) identifies the appropriate account for which the availability for expenditure is to be extended; (2) provides that such account shall be available for recording, adjusting, and liquidating obligations properly chargeable to that account; and (3) extends the availability for expenditure of the obligated balances. 2 Section 1405(a) of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1675) amended and restated subchapter IV of chapter 15 of title 31, U.S.C., secs. 1551-1557. See also sec. 1405(b) of that Act, as amended, in Legislation on Foreign Relations Through 2003, vol. I-B. 3 Sec. 1054(eX2) of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2503) restated the section catchline. It formerly read "Definitions and applications". (c) This subchapter does not apply to or (1) appropriations for the District of Columbia government; (2) appropriations to be disbursed by the Secretary of the Senate or the Chief Administrative Officer 4 of the House of Representatives. § 1552. Procedure for appropriation accounts available for definite periods (a)5 On September 30th of the 5th fiscal year after the period of availability for obligation of a fixed appropriation account ends, the account shall be closed and any remaining balance (whether obligated or unobligated) in the account shall be canceled and thereafter shall not be available for obligation or expenditure for any purpose. (b) Collections authorized or required to be credited to an appropriation account, but not received before closing of the account under subsection (a) or under section 1555 of this title shall be deposited in the Treasury as miscellaneous receipts. § 1553. Availability of appropriation accounts to pay obligations (a) After the end of the period of availability for obligation of a fixed appropriation account and before the closing of that account under section 1552(a) of this title, the account shall retain its fiscal-year identity and remain available for recording, adjusting, and liquidating obligations properly chargeable to that account. (b)(1) Subject to the provisions of paragraph (2), after the closing of an account under section 1552(a) or 1555 of this title, obligations and adjustments to obligations that would have been properly 4 Sec. 219(b)(1) of Public Law 104-186 (110 Stat. 1748) struck out "Clerk” and inserted in lieu thereof "Chief Administrative Officer". 5 Sec. 1406 of the National Defense Authorization Act for Fiscal Year 1991 (Public Law 101510; 104 Stat. 1680) required the following: "Sec. 1406. Audit of Obligated Balances of Department of Defense “(a) AUDIT REQUIREMENT.-The Secretary of Defense shall provide for an audit of each account of the Department of Defense established under paragraph (1) of section 1552(a) of title 31, United States Code, as in effect on the day before the date of the enactment of this Act. The audit shall, with respect to each such account, identify "(1) the balance in the account; "(2) the amount of such balance that is considered by the Secretary (as of the time of the audit) to represent amounts required for valid obligations (as supported by documentary evidence as required by section 1501 of title 31) and the amount of such balance that is considered by the Secretary (as of the time of the audit) to represent amounts for obligations that are considered no longer valid; "(3) the sources of amounts in the account, shown by fiscal year and by amount for each fiscal year; and "(4) such other matters as the Secretary considers appropriate. "(b) DEOBLIGATION OF OBLIGATIONS NO LONGER VALID.-Any obligated amounts in accounts of the Department of Defense established under paragraph (1) of section 1552(a) of title 31, United States Code, that are determined pursuant to the audit under subsection (a) to represent amounts for obligations that are no longer valid shall be deobligated and canceled. "(c) REPORT ON AUDIT.-Not later than December 31, 1991, the Secretary of Defense shall submit to Congress a report containing the results of the audit conducted pursuant to subsection (a). The report shall set forth "(1) the information required to be identified pursuant to subsection (a); and "(2) for each appropriation account (A) the average length of time funds have been obligated, (B) the average size of the obligation, and (iii) the object classification of the obligations, all shown for total obligations and separately for valid obligations and obligations that are no longer valid.". See also sec. 1003 of the National Defense Authorization Act for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2481), in Legislation on Foreign Relations Through 2003, vol. I-B. chargeable to that account, both as to purpose and in amount, before closing and that are not otherwise chargeable to any current appropriation account of the agency may be charged to any current appropriation account of the agency available for the same purpose. (2) The total amount of charges to an account under paragraph (1) may not exceed an amount equal to 1 percent of the total appropriations for that account. (c)(1) In the case of a fixed appropriation account with respect to which the period of availability for obligation has ended, if an obligation of funds from that account to provide funds for a program, project, or activity to cover amounts required for contract changes would cause the total amount of obligations from that appropriation during a fiscal year for contract changes for that program, project, or activity to exceed $4,000,000, the obligation may only be made if the obligation is approved by the head of the agency (or an officer of the agency within the Office of the head of the agency to whom the head of the agency has delegated the authority to approve such an obligation). (2) In the case of a fixed appropriation account with respect to which the period of availability for obligation has ended, if an obligation of funds from that account to provide funds for a program, project, or activity to cover amounts required for contract changes would cause the total amount obligated from that appropriation during a fiscal year for that program, project, or activity to exceed $25,000,000, the obligation may not be made until (A) the head of the agency submits to the appropriate authorizing committees of Congress and the Committees on Appropriations of the Senate and the House of Representatives a notice in writing of the intent to obligate such funds, together with a description of the legal basis for the proposed obligation and the policy reasons for the proposed obligation; and (B) a period of 30 days has elapsed after the notice is submitted. (3) In this subsection, the term 'contract change' means a change to a contract under which the contractor is required to perform additional work. Such term does not include adjustments to pay claims or increases under an escalation clause. (d)(1) Obligations under this section may be paid without prior action of the Comptroller General. (2) This subchapter does not (A) relieve the Comptroller General of the duty to make decisions requested under law; or (B) affect the authority of the Comptroller General to settle claims and accounts. § 1554. Audit, control, and reporting (a) Any audit requirement, limitation on obligations, or reporting requirement that is applicable to an appropriation account shall remain applicable to that account after the end of the period of availability for obligation of that account. (b)(1) After the close of each fiscal year, the head of each agency shall submit to the President and the Secretary of the Treasury a report regarding the unliquidated obligations, unobligated balances, canceled balances, and adjustments made to appropriation accounts of that agency during the completed fiscal year. The report shall be submitted no later than 15 days after the date on which the President's budget for the next fiscal year is submitted to Congress under section 1105 of this title. (2) Each report required by this subsection shall (A) provide a description, with reference to the fiscal year of appropriations, of the amount in each account, its source, and an itemization of the appropriations accounts; (B) describe all current and expired appropriations accounts; (C) describe any payments made under section 1553 of this title; (D) describe any adjustment of obligations during that fiscal year pursuant to section 1553 of this title: (E) contain a certification by the head of the agency that the obligated balances in each appropriation account of the agency reflect proper existing obligations and that expenditures from the account since the preceding review were supported by a proper obligation of funds and otherwise were proper; (F) describe all balances canceled under sections 1552 and 1555 of this title. (3) The head of each Federal agency shall provide a copy of each such report to the Speaker of the House of Representatives and the Committee on Appropriations, the Committee on Governmental Affairs, and other appropriate oversight and authorizing committees of the Senate. (c) 6*** [Repealed-1991] (c) 6 The head of each agency shall establish internal controls to assure that an adequate review of obligated balances is performed to support the certification required by section 1108(c) of this title. § 1555. Closing of appropriation accounts available for indefinite periods An appropriation account available for obligation for an indefinite period shall be closed, and any remaining balance (whether obligated or unobligated) in that account shall be canceled and thereafter shall not be available for obligation or expenditure for any purpose, if— (1) the head of the agency concerned or the President determines that the purposes for which the appropriation was made have been carried out; and (2) no disbursement has been made against the appropriation for two consecutive fiscal years. 6 Sec. 1004(b) of the National Defense Authorization Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 1457) (1) struck out subsec. (c), and (2) redesignated subsec. (d) as subsec. (c). The former subsec. (c) had required the Director of the Congressional Budget Office to estimate the effect on the Federal deficit of payments and adjustments made with respect to sections 1552 and 1553 of this title for each agency and annually report on the same. Sec. 1004(a) of Public Law 102-190 further required the following: "(a) TEMPORARY REQUIREMENT FOR OMB REPORT.-At the same time that the President submits to Congress the budget for each of fiscal years 1993, 1994, 1995, and 1996 under section 1105 of title 31, United States Codes, the Director of the Office of Management and Budget shall submit to Congress a report regarding the effect on the Federal Deficit of payments and adjustments made with respect to sections 1552 and 1553 of such title for the fiscal year in which such budget is submitted, the fiscal year preceding that fiscal year, and the fiscal year covered by that budget. The report shall include separate estimates for the accounts of each agency.". § 1556. Comptroller General: reports on appropriation ac counts (a) In carrying out audit responsibilities, the Comptroller General shall report on operations under this subchapter to (1) the head of the agency concerned; (2) the Secretary of the Treasury; and (3) the President. (b) A report under this section shall include an appraisal of unpaid obligations under fixed appropriation accounts for which the period of availability for obligation has ended. § 1557. Authority for exemptions in appropriation laws A provision of an appropriation law may exempt an appropriation from the provisions of this subchapter and fix the period for which the appropriation remains available for expenditure. § 1558. Availability of funds following resolution of a protest 7 (a) Notwithstanding section 1552 of this title or any other provision of law, funds available to an agency for obligation for a contract at the time a protest is filed in connection with a solicitation for, proposed award of, or award of such contract shall remain available for obligation for 90 working days after the date on which the final ruling is made on the protest. A ruling is considered final on the date on which the time allowed for filing an appeal or request for reconsideration has expired, or the date on which a decision is rendered on such an appeal or request, whichever is later. (b) Subsection (a) applies with respect to any protest filed under subchapter V of chapter 35 of this title or under section 111(f) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 759(f)). 7 Added by sec. 813(a) of Public Law 101-189 (103 Stat. 1494). |