Overview
FAR 32.702 establishes the foundational requirement that government officials must comply with the Anti-Deficiency Act by ensuring funds are available before incurring obligations. It mandates that Contracting Officers verify funding or include specific contingencies before executing any contract.
Key Rules
- Anti-Deficiency Act Compliance: No government employee may authorize an obligation that exceeds available funds or occurs before an appropriation is made, unless specifically authorized by law.
- Mandatory Verification: Before signing a contract, the Contracting Officer must obtain written assurance from the proper fiscal authority that sufficient funds are currently available.
- Conditional Exception: If funds are not yet available, the Contracting Officer must expressly condition the contract upon the future availability of funds, following the procedures in FAR 32.703-2.
Practical Implications
- Contracting Officers must coordinate closely with budget and finance offices to secure "certified" funds (often via a PR or MIPR) before a contract award can legally proceed.
- Failure to follow these procedures can result in administrative and criminal penalties for the individuals responsible for the over-obligation or unauthorized commitment.