Questions concerning this policy chapter should be directed to:

• Veterans Health Administration
• Veterans Benefits Administration
• National Cemetery Administration
• Debt Management Center
• Financial Services Center
• Construction and Facilities Management
• All others

0401 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies regarding required coordination and oversight of supplemental appropriations.

Key points covered in this chapter:

• Office of Management (OM) will advise Administration and Staff Offices, and any pertinent national workgroups, on VA’s responsibilities for execution of supplemental appropriations, and address issues raised by the responsible organizations; and
• VA will ensure that reported data related to any supplemental appropriation is complete and accurate by maintaining regular, systematic surveillance over the fiscal execution and compliance of supplemental appropriations.

0402 Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	Format edits; definitions, references, and hyperlinks update	OFP	Full review	March 2025
0404 and 0405	Moved policy actions from Roles and Responsibilities to Policy and reordered policy provisions	OFP	Sequence actions chronologically	March 2025
040502	Add requirement to preserve hours and overtime detail for oversight work	VHA PLO	Response to prior supplemental appropriations audit findings	March 2025

For a complete list of previous policy revisions, see Appendix A.

0403 Definitions

Appropriation – Provisions of law enacted by Congress, not necessarily in an appropriations act, authorizing the Federal agency to incur obligations and make payments for a given purpose. Usually, but not always, an appropriation provides budget authority.

Budget Authority – The authority provided by law to incur financial obligations that will result in outlays. This definition is consistent with the one contained in section 3(2) of the Congressional Budget and Impoundment Control Act of 1974, which the Congress uses in the Congressional budget process. You violate the law if you enter into contracts, issue purchase orders, hire employees, or otherwise obligate the Government to make a payment before a law has provided budget authority for that purpose.

Deficiency Appropriation – An appropriation made to pay obligations for which sufficient funds were not available at the time the obligations were incurred. The need for deficiency appropriations often results from violations of the Antideficiency Act (ADA) and can be made in the same fiscal year as the over-obligated appropriation or in a later year.

Regular Appropriations – Statutes that provide funding for the continued operation of Federal departments, agencies, and Government activities for a fiscal year beginning October 1.

Supplemental Appropriation – An appropriation enacted subsequent to a regular annual appropriations act, when the need for funds is too urgent to be postponed until the next regular annual appropriations act. Supplemental appropriations can be used to provide funding for unforeseen needs. Past examples of supplemental funding impacting VA programs are the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, the American Rescue Plan (ARP), and the Sergeant First Class Heath Robinson Honoring our Promise to Address Comprehensive Toxics (PACT) Act. A supplemental appropriation made to pay obligations for which sufficient funds were not available at the time the obligations were incurred may be referred to as a deficiency appropriation. Congress may include supplemental appropriations in regular bills and continuing resolutions rather than in a separate supplemental bill. See Volume II, Chapter 1 – Appropriations Law, for additional information.

0404 Roles and Responsibilities

Assistant Secretary for Management and Chief Financial Officer (ASM/CFO) is responsible for overseeing all financial management activities relating to the Department’s programs and operations, as required by the Chief Financial Officers Act of 1990 and 38 U.S.C. §309. Responsibilities include the direction, establishment, management, and provision of policy guidance and oversight of VA’s financial management personnel, activities, and operations.

Chief Financial Officers Council (CFOC) is responsible for serving as an advisory committee to the ASM/CFO by reviewing any supplemental appropriation measures affecting VA. The Council may monitor any Administration-level and Staff Office-level spend plans.

Office of Management (OM) is responsible for establishing and coordinating national workgroups for managing supplemental appropriations spending and controls in coordination with the Office of Budget, Office of Asset Enterprise Management, Administrations, and Staff Offices as directed by ASM/CFO. OM is also responsible for coordinating and approving Congressional reporting on the use of supplemental funds.

Office of Asset Enterprise Management (OAEM) is responsible for reviewing, approving, and monitoring Administration spending plans associated with supplemental appropriations impacting capital accounts. Capital accounts include Major Construction, Minor Construction, Non-Recurring Maintenance and Leasing programs.

Office of Budget (OB) is responsible for the identification and tracking of proposed and current legislation creating supplemental appropriations or rescinding any appropriations which affect VA. OB is also responsible for reviewing, approving, and monitoring Administration and Staff Office spending plans associated with supplemental appropriations.

Office of Business Oversight (OBO) is responsible for performing ad-hoc reviews and testing of supplemental appropriation funding as directed by ASM/CFO.

Administration and Staff Office CFOs are responsible for monitoring the proper execution and oversight of supplemental appropriations. They are responsible for coordinating supplemental appropriation requests and approval with OB (non-capital accounts) and OAEM (capital accounts).

0405 Policies

040501 General Policies

1. VA will execute supplemental and deficiency appropriations in accordance with its system of administrative controls required by Office of Management and Budget (OMB) Circular A-11. For more information see Volume II, Chapter 3 – VA Funds Control.
2. Supplemental appropriations may be designated in the appropriation language regarding purpose, period of availability, and amount of budget authority. VA will comply with guidance from the President and OMB in executing the specified Congressional spending authority in accordance with applicable Treasury warrants.
3. VA will adhere to supplemental appropriations guidance and oversight as required by 31 U.S.C. §§ 1104, 1106, 1107, 1501, and 1515.
4. VA may not expend funds on activities or objects outside the purpose, period, or amount of existing appropriations in anticipation of a supplemental or deficiency appropriation being enacted.

040502 Oversight Requirements

1. To ensure compliance with statutory requirements and standards, OM, Administrations, and Staff Offices will review language of any supplemental appropriation to determine VA’s responsibilities.
2. OM, Administrations, and Staff Offices responsible for execution of supplemental funding will establish and coordinate national workgroups to develop procedures essential for the oversight of supplemental funding, including the process and/or methodology that will be used to justify, allocate, and track costs.
3. OM will collaborate with Administrations and Staff Offices and any pertinent national workgroups to define VA’s responsibilities for execution of supplemental appropriations, and address issues raised by the responsible organizations.
4. OB and OAEM will notify ASM/CFO when changes affecting VA funding will occur.
5. OB will collaborate with Administrations and Staff Offices to ensure the appropriate apportionment of funding.
6. OM will consolidate Administration-level spend plans developed to execute supplemental funding, and address any issues raised from CFOC’s oversight of those plans.
7. OM, Administrations, and Staff Offices responsible for execution of supplemental funding will ensure data is complete and accurate by maintaining regular, systematic surveillance over the fiscal execution and compliance of supplemental appropriations.
8. Monthly, Administration and Staff Office CFOs responsible for the execution of the supplemental appropriation, will review obligations and associated spending data, compile supplemental appropriation obligation reports for planned activities, compare estimated to actual spending, calculate anticipated carryover or lapsed funding, and identify any additional needs or excess funds. Obligations shall be reviewed in accordance with Volume III, Chapter 2 – Obligations.
9. Pending automation of salary expense reporting a supplemental appropriation purpose instance, all offices impacted will track work hours and expense of overtime dedicated to supplemental spending oversight. Retention of these records will exceed the National Archives and Records Administration retention standard for salary payment records as needed to maintain availability for an audit of supplemental appropriation spending.
10. Any issues surrounding the proper execution and reporting of supplemental funding unresolved by Administrations and Staff Offices will be raised to the CFOC for resolution.
11. Office of Business Oversight (OBO) will assess risks, internal controls, and will collaborate with ASM/CFO on operational improvement strategies.
12. OM will coordinate, approve, and submit reports to Congress on the use of supplemental appropriations.

0406 Authorities and References

• United States Code (U.S.C.)
  • 31 U.S.C. § 901, Establishment of agency Chief Financial Officers, also known by the originating law, the Chief Financial Officers Act of 1990
  • 31 U.S.C. § 1104, Budget and appropriations authority of the President
  • 31 U.S.C. § 1106, Supplemental budget estimates and changes
  • 31 U.S.C. § 1107, Deficiency and supplemental appropriations
  • 31 U.S.C. § 1501, Documentary evidence requirement for Government obligations
  • 31 U.S.C. § 1515, Authorized apportionments necessitating deficiency or supplemental appropriations
  • 38 U.S.C. § 309, Chief Financial Officer
• Public Laws
  • P.L. 93-344, Congressional Budget and Impoundment Control Act of 1974
  • P.L. 116-136, Coronavirus Aid, Relief, and Economic Security Act of 2020
  • P.L. 117-2, American Rescue Plan of 2021
  • P.L. 117-168, Honoring our PACT Act of 2022
• VA Financial Policy Publications
  • Volume II, Chapter 1 – Appropriations Law
  • Volume II, Chapter 3 – VA Funds Control
  • Volume III, Chapter 2 – Obligations

0407 Rescissions

Volume II, Chapter 11 – Supplemental Appropriations Oversight, May 2022.

Appendix A: Previous Policy Revisions

Section	Revision	Office	Reason for Change	Effective Date
Various	New policy	OFP	Implementation of policy for the oversight of supplemental appropriations	May 2022