Fiscal Law Primer

The US Constitution gives Congress the authority to raise revenue, borrow funds, and appropriate the proceeds for federal agencies.

Congress can further restrict the use of appropriated funds, primarily through three fiscal limitations:

1. Purpose
   An agency may obligate and expend appropriations only for a proper purpose.

2. Time
   An agency may obligate only within the time limits applicable to the appropriation.

3. Amount
   An agency may not obligate more than the amount appropriated by Congress.

The expenditure of public funds is proper only when authorized by Congress.

Absent an exception, these items are generally considered a personal expense:

• Clothing

• Food

• Bottled water

• Entertainment

Appropriated funds may be used to purchase:

• Office furniture and equipment

• Decorations

• Business cards
  Department of Defense policy restricts commercially prepared business cards to recruiters and criminal investigators.

• Awards
  Limited authority to use appropriated funds is allowed for medals, trophies, badges and similar devices to military members for excellence in accomplishments or competitions.