BOP Program Statement 8510.02 § 10

the sale of its manufactured products rather than allocations

from appropriated funds.

— While FPI’s budget process is used to estimate sales volume

and related costs for the year, it does not control

procurement action to the same extent as operating budgets

control Congressional allocations.

FPI’s pre-validation process for procurement action is concerned

with the availability of a sales order rather than fund

allocation. Sales generate the funds required to pay for

operating costs and expenses.

— There are exceptions. Vocational training expenditures and

administrative expenses for Central Office activities are

limited by Congressional appropriation language. FPI

establishes its own limitations, frequently based on

Congressional mandates, in such areas as travel expenses,

PS 8510.02

1/21/2003

Page 6

meritorious pay for Bureau inmates, and major equipment and

facility expenditures. Pre-validation procedures are

required for expenditures in these areas.

While pre-validation procedures are not generally appropriate for

UNICOR financial activities, effective control of FPI’s cash

balances is a necessity. Since FPI is required to be self-supporting, sophisticated plans are developed to ensure that

production activity generates sufficient cash to meet operating

needs.

— Vendor invoices should be paid promptly, but consistent with

current Federal cash management policies;

— Good relations must be maintained with desired sources of

supply;

— Adequate facilities and equipment must be available;

— Payrolls must be paid promptly; and

— Sufficient quantities or raw materials must be on hand to

keep production lines operating.

All monetary receipts of UNICOR factories are deposited to a

Corporation account with the U.S. Treasury and are subject to use

by corporate entities in accordance with laws generally

applicable to Government agencies.

There is only one account for the Corporation. Deposits and

disbursements are identified by two separate Treasury accounting

station codes. Monthly deposits and disbursements are subject to

reconciliation with the Treasury. In addition the UNICOR cash

account balance with Treasury is subject to monthly

reconciliation. Cash availability for a UNICOR location is

controlled at the Central Office level.