Anti-Deficiency Act

FHWA

FHWA implemented a number of system controls to improve financial accountability. In the corporate accounting system, beginning with FY 2004, FHWA began controlling annual funding allocations at the allotment level to eliminate overspending. FHWA also enhanced its grant system to not allow states to de-obligate more funds than are available for such purposes. Further, FHWA implemented other policies and procedures to ensure that all payments made were done so with sufficient funds existing in the accounting system before making any payments.

FTA

FTA reported a violation of the Anti-Deficiency Act, as required by Section 1351 of Title 31, United States Code, on June 18, 2003. FTA's violation of the Anti-Deficiency Act occurred prior to FY 1984 when FTA, formerly the Urban Mass Transit Administration, over obligated several appropriations. FTA determined that deficiencies existed in three accounts. The President's FY 2005 Budget includes a general provision to allow transfer of unobligated balances from current accounts to cover the over obligations. Congress has not yet appropriated the deficiency appropriation requested by FTA to resolve this matter.

FTA implemented procedures to prevent another over obligation of budget authority.