SUBCHAPTER IV—CLOSING ACCOUNTS
§1551. Definitions; applicability of subchapter
(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.
(c) This subchapter does not apply to—
(1) appropriations for the District of Columbia government; or
(2) appropriations to be disbursed by the Secretary of the Senate or the Chief Administrative Officer of the House of Representatives.
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1551(a) | 31:701(c)(1st sentence). | July 25, 1956, ch. 727, §1(c)(1st sentence), |
1551(b) | 31:707. | July 25, 1956, ch. 727, §8, |
In subsection (b)(1), the words "District of Columbia government" are substituted for "District of Columbia" for consistency.
Editorial Notes
Amendments
1996—Subsec. (c)(2).
1992—
1990—
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment; Transitional Provisions
"(1)
"(2)
"(3)
"(4)
"(5)
"(6)
"(B) Subparagraph (A) shall not apply so as to require the deobligation of amounts—
"(i) for which there is documentary evidence that payment will be required within 180 days of the date of the enactment of this Act; or
"(ii) that are determined to be necessary for severance payments for foreign national employees.
"(7)
"(B) Any charge made pursuant to subparagraph (A) shall be subject to the maximum amount chargeable under subsection (b) of
"(8)
"(i) the obligation would have been properly chargeable (except as to amount) to the expired account before the end of the period of availability of that account; and
"(ii) the obligation is not otherwise properly chargeable to any current appropriation account of the Department of Defense.
"(B) The total amount charged to a current appropriation account under subparagraph (A) may not exceed an amount equal to the lesser of—
"(i) one percent of the total amount of the appropriations for that account; or
"(ii) one percent of the total amount of the appropriations for the expired account.
"(C) No obligation or adjustment of an obligation may be charged pursuant to the provisions of this paragraph until the Committees on Armed Services and the Committees on Appropriations of the Senate and House of Representatives are notified of the intent to make such a charge and a period of 30 days elapses after the notification is submitted.
"(D)
"(i) That the limitations on expending and obligating amounts established pursuant to
"(ii) That reports on any violations of such section 1341, whether intentional or inadvertent, are being submitted to the President and Congress immediately and with all relevant facts and a statement of actions taken as required by
"(E)
§1552. Procedure for appropriation accounts available for definite periods
(a) 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
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1552(a) | 31:701(a)(1). | July 25, 1956, ch. 727, §1(a)(1), |
31:701(a)(2). | July 25, 1956, ch. 727, §1(a)(2), |
|
31:701(b). | July 25, 1956, ch. 727, §1(b), |
|
1552(b) | 31:701(c)(last sentence). | July 25, 1956, ch. 727, §§1(c)(last sentence), (d), 5, |
1552(c) | 31:701(d). | |
1552(d) | 31:705. |
In subsection (a), the text of 31:701(b)(1)(A) and (2)(A) and the words "for the period commencing on July 1, 1976, and ending on September 30, 1976, and for any fiscal year commencing on or after October 1, 1976" are omitted as executed.
In subsection (a)(1), the words "period of availability ends" are substituted for "that period or the fiscal year or years, as the case may be, for which the appropriation is available for obligation" to eliminate unnecessary words.
In subsection (a)(2), the words "reverts to the Treasury" are substituted for "if the appropriation was derived in whole or in part from the general fund, shall revert to such fund" to eliminate unnecessary words.
In subsection (b), the words "not received before" are substituted for "not received until after" for clarity. The words "unless otherwise authorized by law" are omitted as surplus. The words "Comptroller General" are substituted for "General Accounting Office" for consistency.
In subsection (c), the text of 31:701(d)(last sentence) is omitted as executed.
In subsection (d), before clause (1), the word "heading" is substituted for "heads" for clarity and consistency.
Editorial Notes
Amendments
1990—
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by
Audit of Obligated Balances of Department of Defense
§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
(b)(1) Subject to the provisions of paragraph (2), after the closing of an account under
(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.
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1553(a) | 31:702(1st sentence). | July 25, 1956, ch. 727, §2, |
1553(b) | 31:702(last sentence). |
In subsection (a), the word "separately" is substituted for "as one fund" for clarity. The words "remains available until expended" are substituted for "shall be available without fiscal year limitation" for consistency in the revised title.
In subsection (b), the words "Comptroller General" are substituted for "Comptroller General of the United States" and "General Accounting Office" for consistency. The words "affect the authority" are substituted for "abridge the existing authority" to eliminate unnecessary words. The words "settle claims and accounts" are substituted for "settle and adjust claims, demands, and accounts" for consistency with
Editorial Notes
Amendments
1990—
"(a) Each appropriation account established under
"(b) Under regulations prescribed by the Comptroller General, obligations under subsection (a) of this section may be paid without prior action of the Comptroller General. However, this subchapter does not—
"(1) relieve the Comptroller General of the duty to make decisions requested under law; or
"(2) affect the authority of the Comptroller General to settle claims and accounts."
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by
§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
(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
(D) describe any adjustment of obligations during that fiscal year pursuant to
(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
(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) 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
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1554(a) | 31:703(a)(1st, 2d sentences, last sentence proviso). | July 25, 1956, ch. 727, §3(a), |
1554(b) | 31:703(a)(3d sentence, last sentence less proviso). |
In subsection (a), the words "head of the agency" are substituted for "agency concerned" for consistency. The word "President" is substituted for "Director of the Office of Management and Budget" because sections 101 and 102(a) of Reorganization Plan No. 2 of 1970 (eff. July 1, 1970,
In subsection (b), the words "withdrawal or restoration" are substituted for "transactions" the first time it appears.
Editorial Notes
Amendments
1991—Subsecs. (c), (d).
"(1) The Director of the Congressional Budget Office shall estimate each year the effect on the Federal deficit of payments and adjustments made with respect to
"(2) The Director shall include in the annual report of the Director to the Committees on the Budget of the Senate and House of Representatives under paragraph (1) of section 202(f) of the Congressional Budget Act of 1974 a statement of the estimates made pursuant to paragraph (1) of this subsection during the preceding year (including any revisions to estimates contained in earlier reports under such paragraph). The Director shall include in any report under paragraph (2) of that section any revisions to such estimates made since the most recent report under paragraph (1) of such section."
1990—
Statutory Notes and Related Subsidiaries
Change of Name
Committee on Governmental Affairs of Senate changed to Committee on Homeland Security and Governmental Affairs of Senate, effective Jan. 4, 2005, by Senate Resolution No. 445, One Hundred Eighth Congress, Oct. 9, 2004.
Effective Date of 1990 Amendment
Amendment by
Reporting Requirement Regarding Effect of Certain Payments and Adjustments on Federal Deficit
§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.
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1555(a) | 31:706(less proviso). | July 25, 1956, ch. 727, §6, |
1555(b) | 31:706(proviso). |
In subsection (a), the words "indefinite period" are substituted for "not limited to a definite period of time" for consistency in the revised title. The words "consecutive fiscal years" are substituted for "full consecutive fiscal years" to eliminate an unnecessary word.
In subsection (b), the words "or were heretofore withdrawn from the appropriation account by administrative action" are omitted as executed.
Editorial Notes
Amendments
1990—
"(a) An unobligated balance of an appropriation for an indefinite period shall be withdrawn in the way provided in
"(b) An amount of an appropriation withdrawn under this section may be restored to the applicable appropriation account to pay obligations and to settle accounts."
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by
§1556. Comptroller General: reports on appropriation accounts
(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.
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1556(a) | 31:703(b)(1st sentence words before 4th comma). | July 25, 1956, ch. 727, §3(b), |
1556(b) | 31:703(b)(1st sentence words after 4th comma, last sentence). |
In the section, the word "President" is substituted for "Director of the Office of Management and Budget" because sections 101 and 102(a) of Reorganization Plan No. 2 of 1970 (eff. July 1, 1970,
Editorial Notes
Amendments
1990—
"(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 appropriation accounts established under
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by
§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.
(
Revised Section | Source (U.S. Code) | Source (Statutes at Large) |
---|---|---|
1557 | 31:708. | July 25, 1956, ch. 727, §9, |
Editorial Notes
Amendments
1990—
Statutory Notes and Related Subsidiaries
Effective Date of 1990 Amendment
Amendment by
§1558. Availability of funds following resolution of a formal protest or other challenge
(a) Notwithstanding
(b) Subsection (a) applies with respect to—
(1) any protest filed under subchapter V of
(2) an action commenced under administrative procedures or for a judicial remedy if—
(A) the action involves a challenge to—
(i) a solicitation for a contract;
(ii) a proposed award of a contract;
(iii) an award of a contract; or
(iv) the eligibility of an offeror or potential offeror for a contract or of the contractor awarded the contract; and
(B) commencement of the action delays or prevents an executive agency from making an award of a contract or proceeding with a procurement.
(Added
Editorial Notes
Amendments
1996—
Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment
Amendment by