LAWRENCE BERKELEY NATIONAL LABORATORY

1. LAWRENCE BERKELEY NATIONAL LABORATORY Appropriations Law Presented By: Dwayne Frey Financial Network May 16, 2002

2. LAWRENCE BERKELEY NATIONAL LABORATORY Availability of Appropriations • Whether appropriated funds are legally available for something depends on three things: P.T.A. • PURPOSE of the obligation must be authorized; • Obligation must occur within TIME limits of appropriation; and • Obligation must be within AMOUNTS established by Congress.

3. LAWRENCE BERKELEY NATIONAL LABORATORY • Specific Purpose Authorities and Limitations • Except where specifically appropriated for, entertainment cannot normally be said to be necessary to carry out the purposes of an appropriation. Entertainment includes food, drink, music, recreational facilities, performances, etc. Exceptions: training, award, and cultural awareness. • As a general proposition, no authority exists for the government to use appropriated funds to pay for fines and penalties. • Appropriated funds may not be used for personal gifts, unless statutory authority exists. • Other examples: insurance, lobbying, membership fees, etc.

4. LAWRENCE BERKELEY NATIONAL LABORATORY Availability of Appropriation: Amount • Earmarking: obligations/expenditures in excess of earmarks are illegal. • Antideficiency Actprohibits: • Making or authorizing an expenditure form, or creating or authorizing an obligation under, any appropriation or fund in excess of the amount available in the appropriation or fund unless authorized by law; • Involving the government in any contract or other obligation for the payment of money for any purpose in advance of appropriations made for such purpose, unless the contract or obligation is authorized by law; • Accepting voluntary services for the United States, or employing personal services in excess of that authorized by law, except in cases of emergency involving the safety of human life or the protection of property; and

5. LAWRENCE BERKELEY NATIONAL LABORATORY • Making obligations or expenditures in excess of an apportionment or reapportionment, or in excess of the amount permitted by agency regulations. • Augmentation of Appropriation – As a general proposition, an agency may not augment its appropriations from outside sources without statutory authority. Augmentation would allow an agency to undercut the congressional power of the purse. • Miscellaneous Receipts Statute states “…an official or agent of the Government receiving money for the Government from any source shall deposit the money in the Treasury as soon as practicable without deduction for any charge or claim.” (Exceptions: statutory authority; repayment)

6. LAWRENCE BERKELEY NATIONAL LABORATORY “On Budget” – “By Budget” • FY01 year-end cost variances show practice of over-runs/under-runs within pools for net zero sum Laboratory variance: FY01 Lab Variances ($K) Indirect ($511) Org Burden ( 10) Recharge 105 Other 417 Total $ 0

7. LAWRENCE BERKELEY NATIONAL LABORATORY • In FY01, indirect divisions approached year-end goal of zero variance by division over-all vs. by cost pool: FY 01 Lab Variances ($K) Div ADiv BDiv C Indirect $ 28 $ 44 $ (47) Org Burden ( 6) (30) (46) Recharge 12 n/a n/a Other n/a n/an/a Total $ 34 $ 14 $ ( 1)

8. LAWRENCE BERKELEY NATIONAL LABORATORY • Over-all zero variance approach leads to: • Increased number of ledger transactions • More man hours during year-end close • More compliant with budget goals • In FY02, indirect divisions to target zero variance by pool vs. by division over-all • Other factors for zero variance by pool in FY02: • Expected increase in DOE oversight • Maintain/elevate good accounting practices