FINANCIAL MANAGEMENT POLICY MANUAL

each account being charged; or the unexpended and unobligated balance
of the closed account appropriation. If the unobligated balance of the
closed account would not have been adequate, then the adjustment may
not be made and the current account is not available. Additionally, each
individual adjustment equal to or greater than $1,000,000 must be
approved by the ASN (FM&C).
6. Applicability of Antideficiency Act.
The provisions of the Antideficiency Act are applicable to all
appropriations both during and after the five-year expired period.
Additional information regarding circumstances under which violations of
the Antideficiency Act typically occur can be found in Volume 14, Chapter
2 of the DOD FMR.
7. Sources.
In addition to the sources cited above, detailed information for the
financial administration, approval, accounting and reporting of
appropriation balances and upward obligations to appropriations after the
period of availability can be found in Volume 3, Chapters 8 and 10 of the
DOD FMR as well as in the latest issuance of NAVCOMPTINST
7040.37.
(Change 67)
073303 THE JUDGMENT FUND
1. Background.
Under 41 U.S.C. Section 612, monetary judgments against the Department
of the Navy (DoN) under the Contracts Disputes Act of 1978, as amended,
that are awarded by either the Armed Services Board of Contract Appeals
or the Court of Federal Claims, are initially paid by the Department of the
Treasury. This payment is made from the permanent, indefinite
appropriation known as the Judgment Fund, established by 31 U.S.C.
1304. After such payment, the DoN is required to reimburse this
Judgment Fund.
2. Policy Governing Reimbursement.
After determining the appropriation(s) that originally funded the portion of
the contract that led to the claim and subsequent judgment, the following
policies apply when reimbursing the Department of the Treasury
Judgment Fund:
a. Since reimbursement is not an antecedent liability of the original
contract, reimbursements are not charged back to the original
appropriation unless that appropriation was still available for new
obligation at the time of the judgment.
Financial Management Policy
1-32