Questions concerning this policy chapter should be directed to:

1101 Overview

This chapter establishes the Department of Veterans Affairs’ (VA) financial policies regarding required coordination and oversight of supplemental appropriations. This includes the implementation of new initiatives, such as disaster recovery, which are identified or issued subsequent to VA’s annual budget submission. Past examples of supplemental funding for VA are the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act, the Family First Corona Response Act, and the American Rescue Plan (ARP).

Key points covered in this chapter:

  • VA’s Chief Financial Officers Council (CFOC) 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.

1102 Revisions

See changelog.

1103 Definitions

Appropriation – A provision of law (not necessarily in an appropriations act) authorizing the expenditure of funds 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. The specific forms of budget authority are appropriations, borrowing authority, contract authority, and spending authority from offsetting collections.

Regular Appropriations – Provide most of the funding for a fiscal year beginning October 1.

Supplemental (Deficiency) 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, such as response and recovery costs due to a disaster. 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. The need for a deficiency appropriation 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. Congress may include supplemental appropriations in regular bills and CRs rather than in a separate supplemental bill.

1104 Roles and Responsibilities

CFO Council (CFOC) serves as an advisory committee to the VA CFO by reviewing any supplemental appropriation measures affecting VA. The Council collaborates with Administration and Staff Offices and any pertinent national workgroups to define VA’s responsibilities for execution of supplemental appropriations, and addresses issues raised by the responsible organizations. The Council may monitor any Administration- level spend plans.

Office of Management (OM) is responsible for establishing and coordinating national workgroups for supplemental appropriations. OM will consolidate the Administration- level spend plans developed to execute supplemental funding, and address any issues raised from CFO Council’s oversight of those plans. OM will coordinate and approve Congressional reporting on the use of supplemental funds.

Office of Budget (OB) is responsible for the identification and tracking of proposed and current legislation creating or rescinding supplemental appropriations which affect VA. OB will notify the VA CFO when changes affecting VA funding will occur. OB will collaborate with the CFO Council, Administrations and Staff Offices to ensure appropriate apportionment of funding. OB will review, approve and monitor Administration and VACO Staff Office spending plans associated with supplemental appropriations.

Office of Business Oversight (OBO) will perform ad-hoc reviews and testing of supplemental funding as directed by VA CFO.

Administration and Staff Office CFOs are responsible for implementing VA’s financial policy.

1105 Policies

110501 General Policies

  1. A will execute supplemental and deficiency appropriations in accordance with its system of administrative control of funds required by Office of Management and Budget (OMB) Circular No. A-11. For more information see VA Financial Policy Volume II, Chapter 3 – VA Fund Control Policy.
  2. Supplemental appropriations may be designated in the appropriation language as exempt from the budget enforcement limits. VA will utilize these appropriations in accordance with Section 251(b)(2)(A)-(D) of the Balanced Budget and Emergency Deficit Control Act (BBEDCA) (P.L. 99-177).
  3. VA may not expend funds from existing appropriations in anticipation of a supplemental or deficiency appropriation being enacted.

110502 Oversight Requirements

  1. OM, CFOC and the Administration(s) and/or Staff Office(s) will review language of any supplemental appropriation to determine VA’s responsibility of compliance with statutory requirements and standards.
  2. OM, CFOC and the Administration(s) and/or Staff Office(s) responsible for execution of supplemental funding will establish and coordinate national workgroups to develop procedures essential for oversight of supplemental funding including the process and/or methodology that will be used to justify, allocate and track costs.
  3. OM, CFOC and the Administration(s) and/or Staff Office(s) 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.
  4. Any issues surrounding the proper execution and reporting of supplemental funding unresolved by the Administration and/ or Staff Offices will be raised to the CFOC for resolution.
  5. Monthly the Administration and/or Staff Office CFO(s) 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 VA Financial Policy Volume II, Chapter 5 – Obligations Policy.
  6. OM will coordinate and approve Congressional reporting on the use of supplemental appropriations.

1106 Authorities and References

1107 Rescissions

None.

1108 Questions

Questions concerning this financial policy should be directed to the following points of contact: