Circular Appendix 95-19-A

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A-1  DESIGNATION OF FUND CONTROL RESPONSIBILITIES
TO THE DIRECTOR OF HEADQUARTERS OPERATIONS

In accordance with the Administrative Control of Funds and Budget Execution Policy contained in the Office of Management and Budget (OMB) Circular A-34; Chapter 2-10, of the Departmental Accounting Policy Manual, and the Indian Health Service (IHS) Administrative Control of Funds Policy, I hereby designate the Director of Headquarters Operations (DHO) to be responsible for the following fund control processes:

1. As applicable, for the implementation and/or execution of the IHS Administrative Control of Funds Policy.
2. Ensuring that each employee within your area of supervisory responsibility, who has a role or responsibility in the fund control processes, is informed of his/her responsibilities in writing.
3. Ensuring that all information received from each office to support the IHS apportionment and reapportionment requests is as requested by the Director, Division of Resources Management (DRM), Office of Administration and Management.  This includes information associated with the execution of decisions made by the Director, IHS regarding the coordination and utilization of resources set aside and managed by Headquarters for specific projects, programs, activities, or functions (PPAF).  At a minimum, this would require a utilization plan, outlining by budget activity or sub-activity (source of funds) each PPAF and its supporting funds by major object class, a brief description of the purpose of the PPAF, the quarter in which the funds are planned for obligation, and the method or mode of obligation, i.e. contract, purchase order, travel order, personnel action, etc.
4. You shall receive Operating Plan Authority (Operating Plan Holder) from the Director, DRM, at the direction of the Director, IHS, which delegates obligational authority in the amounts and for the purposes specified thereon.  This authority cannot be further delegated.
5. In the capacity of an Operating Plan Authority Holder, you may act on behalf of the Director, IHS, and are directly responsible to the Director, IHS, for administering the funds. You are responsible for ensuring that all actions taken by you on behalf of the Director, IHS are in accordance with the stated purposes of the Operating Plan Authority and for conforming to any limitations imposed by statute, regulations, policies, etc., and/or other restrictions as determined and communicated by the Director, IHS.
6. You are subject to administrative discipline for any violation of the terms of the Operating Plan Authority; however, in the event a violation causes the related allowance and allotment to be over-obligated or over-disbursed, the DHO is also subject to the provisions of the Anti-deficiency Act.
7. Effective Date.  The above designated responsibilities are effective on the date that this memorandum is signed by the Director, IHS.

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A-2  DESIGNATION OF FUND CONTROL RESPONSIBILITIES
TO THE ASSOCIATE DIRECTOR, OFFICE OF ADMINISTRATION AND MANAGEMENT

In accordance with the Administrative Control of Funds and Budget Execution Policy contained in the Office of Management and Budget.  (OMB) Circular A-34; Chapter 2-10, of the Departmental Accounting Policy Manual, and the Indian-Health Service (IHS) Administrative Control of Funds Policy, I hereby designate the Associate Director, Office of Administration and Management (OAM) to be responsible for the following fund control processes:

1. Primary responsibility for the implementation and/or execution of the IHS Administrative Control of Funds Policy throughout IHS.
2. Primary responsibility for the implementation and/or execution of the IHS Administrative Control of Funds Policy at IHS Headquarters East.
3. Ensuring that each employee within your area of supervisory responsibility, who has a role or responsibility in the fund control processes, is informed of his/her responsibilities in writing.
4. Ensuring that the Director, Division of Resources Management, OAM, has the support necessary to carry out the responsibilities and accountability of that position within the framework and provisions of the IHS Administrative Control of Funds Policy.
5. Maintaining a relevant and current IHS Administrative Control of Funds Policy through appropriate updates resulting from revisions in statute, OMB regulations, Department of Health and Human Services (HHS) Policy, IHS reorganization, etc.
6. Effective Date.  This designation of responsibilities is effective on the date that this memorandum is signed by the Director, IHS.

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A-3  DESIGNATION OF FUND CONTROL RESPONSIBILITIES TO
THE DIRECTOR, DIVISION OF RESOURCES MANAGEMENT

In accordance with the Administrative Control of Funds and Budget Execution Policy contained in the Office of Management and Budget (OMB) Circular A-34; Chapter 2-10 of the Departmental Accounting Policy Manual, and the Indian Health Service (IHS) Administrative Control of Funds Policy, I hereby designate the Director, Division of Resources Management (DRM), Office of Administration and Management, to be responsible for the following fund control processes:

1. As applicable, for the implementation and/or execution of the IHS Administrative Control of Funds Policy.
2. Ensuring that each employee assigned to the DRM who has a role or responsibility in the fund control processes is informed of his/her responsibilities in writing.
3. Developing the apportionment and reapportionment requests for the IHS and Indian Health Facilities Appropriations and all other funds for which an apportionment is required.
4. Submitting completed and properly approved apportionment and reapportionment requests through the appropriate organizational management structure for final approval by the OMB.
5. Preparing and issuing Advices of Allotments based upon approved apportionment, reapportionment, or other applicable authority.
6. Preparing and issuing Advices of Allowances to the appropriate IHS officials as determined and directed by the Director, IHS, and based upon the Advice of Allotment, the approved apportionment and/or reapportionment, or other applicable authority.
7. Preparing and issuing Operating Plan Authority to IHS officials at Headquarters East, Rockville, MD, as determined and directed by the Director, IHS, and based on the Advice of Allowance, Advice of Allotment, the approved Apportionment and/or Reapportionment, and/or other applicable authority.
8. Preparing and submitting all reprogramming requests in accordance with Department of Health and Human Services, Public Health Service, and IHS established procedures.  This includes the requirement to obtain all of the necessary reviews and approvals within IHS.
9. Preparing and issuing meaningful resource management reports to Allottees, Allowees, Holders of Operating Plan Authority, and other officials whose role and/or responsibilities require such information.  At a minimum, these reports should provide a status of availability of funds for each organizational entity in receipt of an Advice of Allotment, Advice of Allowance, and/or Operating Plan Authority by the lowest level of detail contained in the above and should be presented at least monthly, and more frequently when requested.

The Director, DRM, is subject to statutory penalties for fund control violations when allotments issued exceed approved apportionments and reapportionments; when Advices of Allowances exceed the Allotments, Apportionments, and/or Reapportionments; and when Operating Plan Authority exceeds the Advices of Allowances, the Allotments, Apportionments, and/or Reapportionments.

The following guidance will be observed and followed in carrying out the aforementioned responsibilities:

Apportionment and Reapportionment Requests

You will ensure that the development and submission of apportionment and reapportionment requests are accomplished in accordance with the policies contained in OMB Circular A-34 and the IHS Administrative Control of Funds policy.  In support of these requests, you must also ensure the development of an annual financial operating plan or budget execution plan, based on plans prepared and submitted by each organizational entity in receipt of an Advice of Allowance and/or Operating Plan Authority.  This plan must present information by activity, sub-activity, sub-sub-activity, and by a lower sub-division of funds when the lower level is subject to the reprogramming guidelines.

It is your responsibility to ensure that the apportionment and reapportionments requests are prepared and presented to the Director, IHS for approval prior to submitting them to the OMB for approval.  The presentation shall fully explain any unique features or requirements associated with the planned use of available funds and should fully explain the basis from which the apportionment and/or reapportionment requests were developed.

Allotments

Advices of Allotments will be prepared and issued to the Director, IHS as the sole allottee for all available funds.

Allowances

Consistent with the current IHS organizational structure and delegation of program authorities, when appropriate, Advices of Allowances will be issued to the following IHS officials to enable them to meet their responsibilities in carrying out the mission of IHS:

Operating Plan Authority

As appropriate, for Headquarters East, Operating Plan Authority will be issued to individuals or positions as determined and directed by the Director, IHS, as the Allowee.

NOTE:  OPERATING PLAN AUTHORITY COULD BE ISSUED TO THE DIRECTOR OF HEADQUARTERS OPERATIONS FOR THE FUNDS ASSOCIATED WITH THE SCHOLARSHIP, CATASTROPHIC, AND TRIBAL MANAGEMENT GRANT PROGRAMS.

Violations/Penalties

Violations of some prohibitions are subject to penalties imposed by the Anti-deficiency Act.  Below the allotment level other administrative restrictions (nonstatutory prohibitions) may also be imposed.  Accordingly, the Allowee or the Holder of an Operating Plan Authority will be subject to administrative discipline should the amount of the obligational authority or any statutory limitation or administrative restriction be exceeded or violated.  However, in the event the terms of the Allowance or the Operating Plan Authority are violated and the over-obligation or over-disbursement causes a statutory violation of the allotment, the person or persons responsible for the actions will assume statutory responsibilities along with the allottee.

The penalties imposed by the Anti-deficiency Act apply to holders of obligational authority at the apportionment and allotment levels, although another person acting under delegated authority may have caused the over-obligation or over-disbursement of an appropriation, apportionment or allotment.  That person as well as the allottee and allotter, as appropriate, will be cited in the statutory violation report and be disciplined according to the severity of the charge.  Administrative discipline may be imposed for violations other than the statutory violations.  This would apply to persons who over-obligate or over-disburse the amount of an Allowance or Operating Plan Authority and/or exceed the limitation or administrative restriction placed on either one.

Reporting

The Director, DRM is responsible for ensuring that all employees in DRM are informed that any employee who becomes aware of an apparent fund violation, either legal or administrative, should report the apparent violation in writing in accordance with the IHS Administrative Control of Funds Policy.

Effective date

This designation of responsibilities is effective on the date that this memorandum is signed by the Director, IHS.

(Insert IHS Director signature block here.)

cc:  Associate Director, OAM

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A-4  DESIGNATION OF FUND CONTROL RESPONSIBILITIES TO THE AREA DIRECTORS

In accordance with the Administrative Control of Funds and Budget Execution Policy contained in the Office of Management and Budget (OMB) Circular A -34; Chapter 2-10, of the Departmental Accounting Policy Manual, and the Indian Health Service (IHS) Administrative Control of Funds Policy, each IHS Area Director, and the Associate Director, Office of Health Program Research and Development (OHPRD), are hereby designated to be responsible and accountable as follows:

1. For being the official recipient of Advices of Allowance (Allowee) for their respective Areas.  Accordingly, you are responsible for the implementation and/or execution of the IHS Administrative Control of Funds Policy ,within your respective Area.
2. The Advices of Allowance issued by Headquarters East, delegates obligational authority in the amounts and for the purposes specified thereon.  You may act on behalf of, and you are directly responsible to, the Director, IHS, as the allottee, for administering the funds in accordance with the stated purposes of the allowance and for conforming to any limitations of law or other restrictions as noted thereon.
3. You are authorized to further subdivide the Advices of Allowance received for your respective Area.  In executing this authority, the you are responsible for implementing and maintaining a proper system for subdividing the Area allowances through the issuance of Operating Plan Authority in accordance with the IHS Administrative Control of Funds Policy.  This system must ensure that Operating Plan Authority is issued only to those IHS officials authorized by the Director, IHS.
4. Each Area Director and the Associate Director, OHPRD and the Holder of Operating Plan Authority are subject to administrative discipline for any violation of the terms of the allowance and/or Operating Plan Authority.  However, if a violation occurs and causes the related allotment to be over-obligated or over-disbursed, you and the Holder of Operating Plan Authority are also subject to the provisions of the Anti-deficiency Act.
5. Ensuring that each IHS employee within your respective Area, who has a role or responsibility in the fund control processes is informed of his/her specific responsibilities in writing.
6. Ensuring that responses to all requests from Headquarters for information to support the IHS apportionment process are completed.
7. Serving as the approving official for all requests submitted from your respective Area office to Headquarters for changes in the Area Allowances, such as proposals for reprogramming of funds.

The following guidance must be observed and followed in carrying out the aforementioned fund control responsibilities:

Scope

All provisions of this circular apply to all funds available to the IHS and to all IHS employees who are responsible for:  systems for administrative control of funds; the budget execution and reporting prescribed in OMB Circular A-34; the issuance and control of funds authorizations; incurrence of obligations and/or authorization of disbursements, and the identification and reporting of statutory and non-statutory fund control violations.

Internal Control

You must ensure that the Administrative Control of Funds Policy is implemented consistent with the General and Specific Standards for Internal Control in the Federal Government as contained in Title 2, General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies, and the OMB Circular A-123.

Apportionment and Reapportionment Requests

You may redesignate the responsibility for the development of the Area information to be used by Headquarters in support of the IHS Apportionment and Reapportionment Requests; however, you must approve the submission of this information.  This information also represents the basis for the distribution of funds on the Advices of Allowance.

Operating Plan Authority

Operating Plan Authority is a classification of obligational authority below the Advice of Allowance level and represents the lowest subdivision level of resources permissible.  Therefore, any further administrative subdivision of obligational authority below this level is prohibited.

You are responsible for the issuance of Operating Plan Authority for your respective Area in accordance with the IHS Administrative Control of Funds Policy.

Violations/Penalties

Violations of some prohibitions are subject to penalties imposed by the Anti-deficiency Act.  Below the Allotment level, other administrative restrictions (non-statutory prohibitions) may also be imposed.  Accordingly, the Allowee or the Holder of an Operating Plan Authority will be subject to administrative discipline should the amount of the obligational authority or any statutory limitation or administrative restriction be exceeded or violated.  If the terms of the Allowance or the Operating Plan Authority are violated and the over-obligation or over-disbursement causes a statutory violation of the allotment, the person or persons responsible for the actions will assume statutory responsibilities along with the allottee.

The penalties imposed by the Anti-deficiency Act apply to holders of obligational authority at the apportionment and allotment levels, although another person acting under delegated authority may have caused the over-obligation or over-disbursement of an Appropriation, Apportionment or Allotment.  That person as well as the allottee and allotter, as appropriate, will be cited in the statutory violation report and be disciplined according to the severity of the charge.

Administrative discipline may be imposed for violations other than the statutory violations.  This would apply to persons who over-obligate or over-disburse the amount of an Allowance or Operating Plan Authority and/or exceed the limitation or administrative restriction placed on either one.

Reporting

You are responsible for ensuring that all employees within your respective Area are informed in writing of their responsibilities to report fund control violations, either legal or administrative, in accordance with the IHS Administrative Control of Funds Policy.

Effective Date

The above designation of responsibilities is effective on the date that this memorandum is signed by the Director, IHS.

(Insert IHS Director signature block here.)

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A-5  FORMAT FOR DESIGNATING FUND CONTROL
RESPONSIBILITIES TO THE SERVICE UNIT DIRECTORS

In accordance with the Administrative Control of Funds and Budget Execution Policy contained in the Office of Management and Budget (OMB) Circular A-34; Chapter 2-10 of the Departmental Accounting Policy Manual, and the Indian Health Service (IHS) Administrative Control of Funds Policy, you are hereby designated the following fund control responsibilities:

1. As applicable, for the implementation and/or execution of the IHS Administrative Control of Funds Policy.
2. Ensuring that each employee within the __________________________ Service Unit, who has a role or responsibility in the fund control processes, is informed of his/her responsibilities in writing.
3. You are the official recipient of the Operating Plan Authority (Operating Plan Holder) issued by the Area Office which delegates obligational authority in the amounts and for the purposes specified thereon.  This authority cannot be further delegated.
4. In the capacity of an Operating Plan Holder, you may act on behalf of and are responsible to the Director, ___________________________ Area IHS for administering the funds in accordance with the stated purposes of the Operating Plan Authority and for conforming to any limitations of law or other restrictions as noted thereon.
5. You shall be subject to administrative discipline for any violation of the terms of the Operating Plan Authority; however, if a fund control violation occurs and causes the related Allowance and Allotment to be over-obligated or over-disbursed, you will also be subject to the provisions of the Anti-deficiency Act.

The following guidance must be observed and followed in carrying out the above fund control responsibilities:

Scope

All provisions of the Administrative Control of Funds Policy apply to all funds available to IHS and to all IHS employees who are responsible for:  systems for administrative control of funds; the budget execution and reporting prescribed in OMB Circular A-34; the issuance and control of funds authorizations; incurrence of obligations and/or authorization of disbursements; and the identification and reporting of statutory and non-statutory fund control violations.

Operating Plan Authority

Operating Plan Authority is a classification of obligational authority below the Advice of Allowance level and represents the lowest subdivision level of resources permissible.  Therefore, any further administrative subdivision of obligational authority below this level is prohibited.

Violations/Penalties

Violations of some prohibitions are subject to penalties imposed by the Anti-deficiency Act.  Below the Allotment level, other administrative restrictions (non-statutory prohibitions) may also be imposed.  Accordingly, the allowee or the Holder of an Operating Plan Authority will be subject to administrative discipline should the amount of the obligational authority or any statutory limitation or administrative restriction be exceeded or violated.  If the terms of the Allowance or the Operating Plan Authority are violated and the over-obligation or over-disbursement causes a statutory violation of the Allotment, the person or persons responsible for the actions will assume statutory responsibilities along with the allottee.

The penalties imposed by the Anti-deficiency Act apply to holders of obligational authority at the apportionment and allotment levels, although another person acting under delegated authority may have caused the over-obligation or over-disbursement of an Appropriation, Apportionment or Allotment.  That person as well as the allottee and allotter, as appropriate, will be cited in the statutory violation report and be disciplined according to the severity of the charge.

Administrative discipline may be imposed for violations other than the statutory violations.  This would apply to persons who over-obligate or over-disburse the amount of an Allowance or who Operating Plan Authority and/or exceed the limitation or administrative restriction placed on either one.

Reporting

You are responsible for ensuring that all ___________________________ Service Unit employees are informed that any employee who is aware of an apparent fund control violation, either legal or administrative, should report the apparent violation in writing in accordance with the IHS Administrative Control of Funds Policy.

Effective Date

This designation of responsibilities is effective on date that this memorandum is signed by the Area Director.

(Insert Area Director signature block here.)

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