cipline imposed and any further steps taken with respect to the officer or employee.

(d) A statement of any additional action taken by the head of the agency, including any new safeguards provided to prevent recurrence of that type of violation.

(e) A statement regarding the adequacy of the system of administrative control prescribed by the head of the agency and ap

Budget. If changes in the regulations are needed, in the judgment of the head of the agency, proposals therefor will be submitted

as provided in section 13.

The head of the agency concerned is also responsible for submitting a report on violations directly to Congress as required by law. One copy of this report shall be submitted to the Bureau of the Budget with the report to the President.

21. Terminology.

The terms used in this Regulation shall have the following meanings:

Advances.-Amount of money advanced pursuant to a statutory authorization in contemplation of the receipt of goods, services, or other assets.

Agency.-Any executive department, agency, commission, authority, administration, board, or other independent establishment in the executive branch of the Government, including any corporation wholly or partly owned by the United States which is an instrumentality of the United States. The term as used herein does not include the municipal government of the District of Columbia.

Allocation.-An amount set aside by an agency in a separate appropriation or fund account for the use of another agency in carrying out the purpose of an appropriation. This term includes amounts set aside in both "transfer appropriation accounts" and "allocated working funds."

Allotment.—An authorization by the head or other authorized employee of an agency to incur obligations within a specified amount pursuant to an appropriation or other statutory provision.

Applied cost.-The cost of goods and services placed in use or consumed.

Apportionment.—A distribution made by the Bureau of the Budget of an appropriation, contract authorization or other statutory authorization into amounts available for specified time periods, activities, functions, projects, objects, or combinations thereof. The amounts so apportioned limit the obligations to be incurred. (In the case of apportionments made under Part V of this Regulation the apportionment will relate to expenditures to be accrued instead of obligations to be incurred.)

Appropriation.-An authorization by an act of Congress to make payments out of the Treasury for specified purposes.

A one-year appropriation is one which is available for incurring obligations only during a specified fiscal year.

A multiple-year appropriation is one which is available for incurring obligations for a definite period in excess of one fiscal year.

A no-year appropriation is one which is available for incurring obligations for an indefinite period of time.

An unexpired appropriation is one which is available for incurring obligations during the current fiscal year.

An expired appropriation is one which is no longer available for obligation but is still avail

able for disbursement to liquidate existing obligations.

An open appropriation account is one the balance of which has not been carried to the "Payment of certified claims" account or to surplus; such an appropriation may be either unexpired or expired.

A closed appropriation account is one the balance of which has been transferred to the "Payment of certified claims" account or to surplus.

A definite appropriation is one the amount of which is stated in the appropriation act as a specific sum of money.

An indefinite appropriation is one the amount of which is not stated in the appropriation act as a specific sum of money, but is determinable only at some future date, such as an appropriation of the receipts from a certain source..

A permanent appropriation is one automatically made each year over a period of time by virtue of standing legislation, without annual action by Congress.

Appropriation or fund account.-An account established to make amounts available for obligation and expenditure from the Treasury. These accounts include not only accounts to which money is directly appropriated, but also revolving funds, working funds, trust funds, etc.

Appropriation receipts.-Collections which pursuant to law are deposited in the Treasury as receipts and appropriated for specific purposes. Such receipts pertain only to special and trust fund accounts.

Appropriation refunds.-Recoveries of advances and recoveries of amounts disbursed in error, which are for credit to an appropriation account. These items, such as recovery of a salary overpayment, shall not be included as reimbursements but shall be treated as reductions of payments.

Appropriation reimbursements.-Earnings or collections for commodities, work, or services furnished or to be furnished to another appropriation or to an individual, firm, or corporation, which by law may be credited to an appropriation account. (This excludes appropriation refunds as previously defined.)

Appropriation title.-A descriptive phrase assigned for purposes of identification to an appropriation account or accounts. For purposes of this Regulation, the title does not include a designation as to year; hence, there may be three or more appropriation accounts with one appropriation title open at one time each covering a different fiscal period.

ceipts. A statutory authorization to make payments for specified purposes out of moneys which have been or may be derived from sale of public debt securities of the Federal Government.

Contract authorization.—A statutory authorization under which contracts or other obligations may be entered into prior to an appropriation for the payment of such obligations.

Deposit fund.—A fund established to account for receipts that are either (a) held in suspense temporarily and later refunded or paid into some other fund of the Government, or (b) held by the Government as banker or agent for others and paid out at the direction of the owner. Such funds are not available for paying salaries, expenses, grants, or other expenditures of the Government.

Disbursements.-The amount of expenditure checks issued and cash payments made, net of refunds received, and travel advances returned, according to the disbursing officers' records. Disbursements shall include all advances. They shall exclude amounts of nonexpenditure checks which are issued for the purpose of accomplishing transfers, as defined herein.

Expenditures, accrued.-The charges incurred for goods and services received and other assets acquired, whether or not payment has been made and whether or not invoices have been received. (See section 22 for more detailed explanation.)

Fiscal year. The period beginning July 1 and ending June 30 of the following calendar year. The fiscal year is designated by the calendar year in which it ends, e. g., the fiscal year 1954 is the year beginning July 1, 1953, and ending June 30, 1954.

Liabilities.—The amounts owed for goods and services received and other assets acquired. This will also include amounts administratively approved for payment of grants, pensions, awards, and other indebtedness not involving the furnishing of goods and services.

Limitation.-A statutory restriction in an appropriation or other authorization which establishes the maximum amount which may be used for specified purposes.

Object classification.—Analysis according to the types of services, articles, or other items involved, e. g., personal services, supplies and materials, and equipment. (See section 71 for the prescribed object classification.)

Obligations incurred.—Amounts of orders placed, contracts awarded, services received, and similar transactions during a given period requiring future payment of money. Such amounts shall include payments not preceded by obligations, except ad

which continues available part or all of the unobligated balance of an appropriation account which would otherwise expire for obligation purposes. It excludes authorizations which continue available for disbursement, but not for obligation, a balance of an appropriation account which would otherwise be closed.

Reserves.-Portions of appropriations, contract authorizations, or other funds set aside by the Bureau of the Budget for (a) savings which are made possible by or through changes in requirements, greater efficiency of operations, or other developments, and (b) contingencies.

Revolving and management funds.-Funds authorized by specific provisions of law to (a) finance a continuing cycle of operations, with receipts derived from such operations available in their entirety for use by the fund without further action by Congress, or (b) facilitate accounting for and administration of intragovernmental operations which are financed by two or more appropriations of an agency. References in this regulation to “revolving funds" will include all of these funds.

Special fund.-A fund established to account for receipts of the Government which are earmarked by law for a specific purpose, but are not generated from a cycle of operations for which there is continuing authority to reuse such receipts.

Transfer appropriation account.-An account established to receive (and subsequently disburse) advances which are treated as nonexpenditure transactions at the time the advance is made. These accounts carry symbols identified with the original appropriation.

Transfer between appropriation accounts.-An adjustment, pursuant to law, which withdraws amounts available for obligation and expenditure from one appropriation account for credit to another. Payments to other accounts for goods or services received, or to be received, shall not be considered transfers.

Trust fund.—A fund established to account for receipts which are held in trust for use in carrying out specific purposes and programs in accordance with an agreement or a statute.

Unappropriated

contract authorizations.--The amount of contract authorizations for which appropriations have not been made.

Undelivered orders.-The amount of unpaid obligations outstanding for which goods and services have not been received.

Undisbursed balance.-Amount of appropriations, or other sums received, remaining after deducting disbursements.

Unobligated balance.—The sum remaining after deducting the cumulative obligations from either (a) apportionments or (b) amounts available for obligation.

Unpaid obligations.-Obligations incurred for which payments have not been made. This consists of liabilities and undelivered orders.

Warrants.-Official documents which pursuant to law are issued by the Secretary of the Treasury and countersigned by the Comptroller General of the United States upon the basis of which moneys are authorized to be withdrawn from the Treasury.

Working fund.-An account established to receive (and subsequently disburse) advance payments, pursuant to law, from other agencies or bureaus. The term does not include revolving funds as defined herein. "Allocated working funds" are those which receive advance payments from a single appropriation, and carry symbols identified with the parent account. "Consolidated working funds" are those which may receive advances from two or more appropriations.

The

22. Concept of obligations and accrued expenditures. A. Concept of obligations.-As defined in section 21 of this Regulation, "obligations incurred" consist of orders placed, contracts awarded, services received, and similar transactions during a given period requiring future payment of money. amounts of obligations to be reported include payments not preceded by obligations, except advances for travel, and reflect adjustments for the differences between obligations and actual payments. Such amounts shall also be net of cancellations and refunds arising during the reporting period.

The principles that are used in determining which fiscal year's appropriation is to be charged at the end of the fiscal year shall also be used for the determination of the obligations for any period within the fiscal year.1

In those cases where the precise amount of obligations is not known at the time they are incurred,

'Although the Federal Employees Pay Act of 1945 permits the option of charging the earnings for a pay period falling in 2 fiscal years to the appropriation current at the end of the pay period, the House Appropriations Committee (Report 990, 80th Cong.) and the Director of the Bu

the best estimate shall be used of the amount which will subsequently be paid.

B. Concept of accrued expenditures.-As defined in section 21 of this Regulation, "accrued" expenditures consist of charges incurred for goods and services received or other assets acquired, whether or not payment has been made and whether or not invoices have been received. Generally, goods shall be considered received at the time title passes to the Government. The accrued expenditure occurs at the time the liability arises or at the time payment is made, whichever is earlier.

In those cases where the precise amount of accrued expenditures is not known at the time the goods and services are received, the best estimate shall be used of the amount which will subsequently be paid.

A strict application of the concept of accrued expenditures would provide for the complete reflection in the reports of all goods and services received or other assets acquired for a given period, and would exclude any goods and services received earlier or to be received in a later period. Since it is not always practicable to attain absolute precision in carrying out this principle, modifications of the concept will be permitted to the extent indicated below. C. Application to types of transactions.-The application of the concept of obligations and accrued expenditures to the various types of transactions in determining the time, or the point in the procurement process, at which each becomes an obligation incurred and an accrued expenditure is discussed below. Except in those cases where there are special statutory provisions, these concepts shall be followed in the determination of obligations and accrued expenditures for purposes of this Regulation.

This Regulation provides for the reporting of accrued expenditures for those accounts which are apportioned on an accrual basis under Part V. It requires the reporting of accrued expenditures in other cases only at the option of the agency or in selected cases when requested by the Bureau of the Budget. It is anticipated that such a request will be made only where an agency has an accounting system which produces the data regularly, or where it is expected that an agency will arrange its accounting system to produce the data at some specified date in the future. (See section 41 for reporting requirements.)

end of the reporting period. Do not include accrued Annual leave until it becomes due and payable as terminal leave, except in the case of (a) revolving funds and (b) any other cases specifically authorized by law.

Accrued expenditures.-Same as obligations incurred.

TRAVEL-Obligations incurred.-Include transportation purchased and reimbursements earned by employees and others for per diem allowances, for use of privately owned vehicles, and for incidental travel expenses.

Accrued expenditures.-Same as obligations incurred.'

TRANSPORTATION OF THINGS Obligations incurred. Include United States Government bills of lading issued to commercial carriers, other commercial contracts, and intragovernmental orders for specific transportation. In the case of reimbursements to an employee (upon a commuted basis) for transportation of his household effects, include the anticipated amount to be paid under orders actually issued to the employee.

Accrued expenditures.-Include United States Governmen⚫ bill of lading issued to commercial carriers and amounts earned under other commercial contracts and intragovernmental orders for specific transportation. Also include reimbursements earned by an employee (upon a commuted basis) for transportation of his household effects.' COMMUNICATION AND UTILITY SERVICES-Obligations incurred.-Include amounts for services received. In those cases where bills are rendered for a period beginning in one month and ending in the following month, the services received subsequent to the latest billing date need not be included. In the case of postage, include the cost of stamps purchased and the amount accrued for penalty mail dispatched during the reporting period.

Accrued expenditures.-Same as obligations incurred.'

RENTS Obligations incurred.-Include amounts accrued for the use of property during the reporting period.

Accrued expenditures.-Same as obligations incurred.

PRINTING AND REPRODUCTION, OTHER CONTRACTUAL SERVICES, SUPPLIES and MATERIALS, AND EQUIPMENT— Obligations incurred.-Include orders placed and contracts awarded.

Where it is desired, accrued expenditures may be reported on a more precise basis than stated above.

ing Office.-Include only orders which deflnitely authorize the Government Printing Office to proceed with a particular job. Where an agency transmits a request in such form that it represents nothing more than an inquiry as to the probable cost of a given job, there is no obligation to be reported under this Regulation.

(2) Orders involving deliveries of stock from other appropriations or funds.-The inclusion of an amount as an obligation where an order. is placed for deliveries of stock from other appropriations or funds depends largely upon the capacity in which the supplying activity functions with respect to the particular transaction: (a) where an order involves common use standard stock items that the supplying activity has on hand or on order for prompt delivery at published prices, the obligation is incurred at the time the order is placed by the requisitioning activity; (b) where the order involves stock items other than those referred to in (a), the obligation is incurred by the requisitioning activity at the time of issuance of a formal notification from the supplying activity that such items are on hand or on order and will be released for prompt delivery; (c) where the order involves execution of a specific contract, the obligation is incurred by the requisitioning activity at the time the contract is entered into by the supplying activity.

(3) Interagency orders.-Include the total amount of orders issued pursuant to section 601 of the Economy Act (31 U. S. C. 686) and similar legislation. When advance payments are made which are not preceded by such interagency orders, the advance payments shall be considered as obligations incurred. Intraagency orders which are on a contractual and reimbursable basis shall be treated in a like manner. (Note, however, that under section 1210 of the General Appropriation Act, 1951, an advance payment under section 601 of the Economy Act is available for obligation by the receiving agency only for the same period as the account from which the advance is made.)

(4) Cost-plus-fixed-fee and other types of contracts without a fixed price.-Include obligations on the basis of the total estimated cost of contracts (including the total fixed fee, if any). This figure shall be reported for the month during which the contract is let and subsequent adjustments upward or downward in the estimated cost (or the fixed fee, if any) shall be reflected in subsequent reports.