PREFACE

Government managers are under more pressure today than perhaps at any time in our nation’s history. They are asked to do more with less, while complying with many new laws and regulations without the benefit of additional resources.

The manner in which agencies use government funds is also under scrutiny as never before. The current fiscal crisis of large budget deficits, unfunded liabilities, and debt burden has made budget hawks out of even the most ardent advocates of government spending. Widespread use of blogs and other social media has made de facto inspectors general out of uncounted citizens who search for misuse of taxpayer dollars.

The President has published executive orders on reducing the number of improper payments, and Congress passed the Improper Payments Elimination and Reduction Act of 2010. The pressure is on to use every federal dollar wisely and properly.

Yet government managers often don’t know all the rules on the proper use of funds. What might seem like a logical, efficient action could very well be illegal. Even managers with the purest of intentions can run afoul of the myriad laws, rules, regulations, and decisions that govern the proper use of government funds.

I wrote this book to serve as a guide to help government managers use government funds properly and legally. All government managers should be able to use it beneficially, because I have written it for the generic government manager, not necessarily one familiar with government financial management policies and procedures. My goal is to keep you, your boss, and your agency out of trouble.

The book will also help government purchase card holders and approvers understand the situations in which they might be risking violation of one or more federal laws, rules, or policies. Auditors, too, should find the book a valuable resource when conducting both financial and performance audits.

This book is designed to be a basic go-to resource to find the answers to fiscal law questions that federal government managers face in on a regular basis. It is based largely, though not solely, on the Government Accountability Office’s (GAO’s) Principles of Federal Appropriations Law (known as the Red Book). It is arranged in a format that loosely follows the Red Book, which will make more detailed research easier for managers using it. I chose the most pertinent topics from the 2,000-plus pages of the Red Book and present them in a straightforward way in a short, pertinent, and usable resource that all government managers will find valuable.

The Government Manager’s Guide to Appropriations Law may be used in a couple of ways. It can be strictly a reference, enabling the manager to quickly find the rules on a specific issue. It could also be read cover to cover as a primer on appropriations law for those managers who have not yet had the opportunity to take formal classroom training. Short quizzes designed to ensure understanding of key points and to reinforce learning are available on the Government Manager’s Essential Library website for most of the chapters. Care has been taken to group related topics in a logical flow. The reader is cautioned to read the entire section devoted to an issue to get a complete answer.

Although the materials in the book have been thoroughly researched and are as accurate and current as possible, do not rely on this book as a legal reference. Consult your agency’s internal regulations and your legal counsel about specific issues.

I hope you find this book informative, helpful, thought provoking, and, on occasion, entertaining.

—William G. Arnold