general services administration …...2015/09/02 · general services administration washington, dc...

GENERAL SERVICES ADMINISTRATION Washington, DC 20405

CFO 4251.4B September 2, 2015

GSA ORDER

SUBJECT: Budget Administration Handbook 1. Purpose. This Order updates, revises and/or deletes information in the Budget Administration Handbook. 2. Scope and applicability. This Order applies to GSA organizations, programs, personnel, staff offices, and regions involved in the budget process. 3. Cancellation. CFO P 4251.4A, Budget Administration Handbook, is cancelled. 4. Nature of revision. This document is a revision of the 2005 Budget Administration Handbook. It uses the most current information and instructions in the Office of Management and Budget’s (OMB) Circular No. A-11 “Preparation, Submission, and Execution of the Budget”. This Handbook also includes editorial and format changes for compliance with Section 508 of the Rehabilitation Act (29 U.S.C. § 794 d).

a. Formatting changes include: (1) Moving Appendix A to the end of the document.

(2) Adding two additional appendices (a list of acronyms & abbreviations and an

explanation of Treasury codes) to the end of the document.

(3) Consolidating and moving the Table of Contents to the front of the document.

b. General updates to each of the Chapters are as follows: (1) Chapter 1—new references, complete with hyperlinks, were added to Part 1,

Paragraph 3. Information was updated to reflect current laws, policies, and procedures. (2) Chapter 2—the performance management framework was moved to the end

of the chapter and completely revised based on the latest information from OMB Circular No. A-11 and current laws, policies, and procedures.

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(3) Chapter 3—updates were made to reflect latest organizational changes within GSA. Furthermore, the “Revolving Fund” part has been removed, due to it being left blank in the previous version of the Handbook. Information about revolving funds can be found in Chapters 1 and 4.

(4) Chapter 4—this chapter has been repurposed to describe all of GSA’s funds

and the activities that fall under each fund (instead of being a mixture of GSA funds and GSA program offices). 5. Signature. /S/___________________________ GERARD BADORREK Chief Financial Officer Office of the Chief Financial Officer

BUDGET ADMINISTRATION HANDBOOK

U.S. GENERAL SERVICES ADMINISTRATION

2015


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TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION TO BUDGET ADMINISTRATION 1

PART 1: OVERVIEW 1 PART 2: THE FEDERAL BUDGET PROCESS 3 PART 3: FINANCING FEDERAL GOVERNMENT OPERATIONS 5

CHAPTER 2: BUDGET FORMULATION & PERFORMANCE MANAGEMENT 10

PART 1: BUDGET FORMULATION – GENERAL 10 PART 2: INTERNAL GSA BUDGET FORMULATION 11 PART 3: OMB REVIEW AND ACTION 13 PART 4: THE CONGRESSIONAL BUDGET PROCESS 16 PART 5: ENACTING APPROPRIATIONS 22 PART 6: AMENDMENTS AND SUPPLEMENTALS 28 PART 7: BUDGETARY COMMUNICATIONS & THE CONDUCT OF WITNESSES 30 PART 8: BUDGET COVERAGE AND STRUCTURE 33 PART 9: THE FEDERAL PERFORMANCE FRAMEWORK 41 PART 10: PERFORMANCE MANAGEMENT PROCESS 44

CHAPTER 3: BUDGET EXECUTION 45

PART 1: OVERVIEW 45 PART 2: FUNDING AUTHORITIES AND LIMITATIONS 49 PART 3: ADMINISTRATIVE CONTROL OF FUNDS 53 PART 4: APPORTIONMENTS AND REAPPORTIONMENTS 66 PART 5: ALLOTMENTS AND ALLOWANCES 71 PART 6: OPERATING BUDGET PLANS 74 PART 7: INTERIM FINANCING 76 PART 8: OPERATIONS IN THE ABSENCE OF APPROPRIATIONS 80 PART 9: REIMBURSEMENTS 86 PART 10: YEAR END SPENDING 90 PART 11: REDUCING ENACTED AUTHORITY 95 PART 12: FULL-TIME EQUIVALENT EMPLOYMENT 101 PART 13: CENTRALIZED COMMON COSTS 105 PART 14: FUNCTIONAL TRANSFERS 111 PART 15: OUTLAYS 114

CHAPTER 4: FINANCING GSA OPERATIONS 118

PART 1: OVERVIEW 118 PART 2: OPERATING EXPENSES 120


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PART 3: FEDERAL CITIZEN SERVICES FUND 123 PART 4: WORKING CAPITAL FUND 125 PART 5: GOVERNMENTWIDE POLICY FUND 128 PART 6: ACQUISITION WORKFORCE TRAINING FUND 130 PART 7: OFFICE OF INSPECTOR GENERAL 131 PART 8: PRESIDENTIAL TRANSITION 134 PART 9: ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS 135 PART 10: FEDERAL BUILDINGS FUND 137 PART 11: TRANSPORTATION AUDIT CONTRACTS AND CONTRACT ADMINISTRATION 144 PART 12: EXPENSES, DISPOSAL OF SURPLUS REAL AND RELATED PERSONAL PROPERTY 145 PART 13: ACQUISITION SERVICES FUND 146 PART 14: UNCONDITIONAL GIFTS 149

Document Change History 150 Appendix A: Budget Terms and Definitions A-1 Appendix B: List of Acronyms and Abbreviations B-1 Appendix C: An Explanation of Treasury Codes C-1


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CHAPTER 1: INTRODUCTION TO BUDGET ADMINISTRATION PART 1: OVERVIEW 1. Purpose and scope. Budget administration is the process established by law and regulation to obtain and apply any resources needed to accomplish agency missions. This Handbook discusses how budget administration is handled in the Federal Government with a special focus on how budget administration processes are implemented within the General Services Administration (GSA). This Handbook contains four chapters:

a. Chapter 1: Introduction to Budget Administration explains the basic nature of the Federal budget process.

b. Chapter 2: Performance Management Process and Budget Formulation describes how to measure performance goals and the steps required to formulate a budget.

c. Chapter 3: Budget Execution lists the requirements for executing a budget under various circumstances.

d. Chapter 4: GSA Operations discusses the nature and structure of several GSA accounts.

2. Applicability. The provisions of this Handbook apply to all GSA offices engaged in budgeting and executing agency resources. 3. References. The following is a list of references that pertain to budget administration. Most of them are available online, either through the GSA’s intranet or on other government websites.

a. United States Code (U.S.C.), Title 31. Contains U.S. laws pertaining to money and finance.

b. Office of Management and Budget (OMB) Circular No. A-11, Preparation,

Submission, and Execution of the Budget. Gives basic instructions regarding budget formulation, budget execution requirements, and the administrative control of resources. This document also includes instructions on integrating budget formulation with planning and performance measures. The latest version can be found at this link: https://www.whitehouse.gov/omb/circulars_a11_current_year_a11_toc . Most of the information in this Handbook is based on the instructions given in OMB Circular No. A-11; however, due to the ever-changing nature of the circular, specific sections are generally not cited.

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c. Other OMB circulars and bulletins. Provides detailed guidance on specific aspects of budget formulation or execution via numerous other OMB Circulars (relatively permanent) and Bulletins (self-cancelling or dealing with specific issues). See the OMB homepage for more: http://www.whitehouse.gov/omb.

d. Government Accountability Office (GAO). Publishes detailed performance reports on various programs and government activities. These reports contain findings and recommendations that can have an impact on the budget. The GAO website contains more information: http://www.gao.gov.

e. The Budget Appendix of the United States Government. Contains budgetary

information, specifically appropriation amounts, in the annual President’s Budget and in additional budget volumes.

f. Transcripts of House hearings. May contain information pertaining to program matters (e.g., Authorizing Committees) or to the annual budget request (Appropriations Committees).

g. House and Senate reports. Provide explanations of committee recommendations that accompany legislative and appropriations bills.

h. Appropriations acts. Contain final appropriations measures enacted into law.

i. GSA Order, Operations in the Absence of Appropriations (ADM 4220.1H). States the GSA’s official plans for operating during an appropriations lapse.

j. Agencywide budget calls. Contain annually updated guidance on policies and procedures for budget formulation and execution.

k. Budget Digest of Appropriations and Funds. Describes the history of all GSA

appropriations and funds since agency inception; updated by the Office of Budget.

l. The Internet and GSA Intranet. Most information on budget matters and Congressional action is available online. The GSA’s InSite Index (on the home page, choose the “agency topics” tab, then “references and resources”) connects to a number of valuable resources. InSite also contains a search function on the upper right corner of every page. The GSA also maintains a website for the general public containing many of the same resources: http://www.gsa.gov.

m. Other web sources.

(1) The Federal Register: https://www.federalregister.gov/.

(2) The United States Congress website: http://www.congress.gov/. Contains the daily Congressional Record and all versions of bills and reports.

http://www.whitehouse.gov/omb

http://www.gao.gov/


http://www.gsa.gov/

https://www.federalregister.gov/

http://www.congress.gov/


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(3) Government Printing Office Access: http://www.gpo.gov/fdsys/. A site providing documents published by the Government Printing Office, including bills, reports, public laws, and the code of Federal regulations.

(4) The Department of the Treasury: http://www.treasury.gov/.

(a) The Federal Account Symbols and Titles (FAST) Book. The Treasury’s book of account codes and symbols, http://www.fiscal.treasury.gov/fsreports/ref/fastBook/fastbook_home.htm.

(b) The Treasury Financial Manual. An in-depth manual that explains how to report to and interact with Treasury systems, http://tfm.fiscal.treasury.gov/content/tfm/home.html.

n. Budget terms and definitions. Appendix A of this Handbook defines a number of concepts and terms commonly used in budget administration.

o. Forms. Listed below are the forms prescribed by the Budget Administration

Handbook. These forms can be found on InSite (http://www.gsa.gov/portal/forms/type/TOP) or in the GSA’s shared drive.

(1) GSA Form 2520, Allotment (2) GSA Form 3283, Federal Buildings Fund - Operating Budget Plan (3) GSA Form 3282A, Operating Budget Plan (4) GSA Form 3285, Federal Buildings Fund Project Allowance (5) Standard Form (SF) 132, Apportionment and Reapportionment (6) SF 133, Report on Budget Execution and Budgetary Resources

PART 2: THE FEDERAL BUDGET PROCESS 4. General purpose. Article 1, Section 9, of the U.S. Constitution states that “No money shall be drawn from the Treasury, but in Consequence of Appropriations made by law…” This basic provision has evolved into a body of laws and regulations that govern the Federal budget process, assign responsibilities, and prescribe generally uniform procedures for obtaining, expending, administering, and controlling resources.

5. Roles and responsibilities.

a. The President. According to 31 U.S.C. § 1104, the President is responsible for preparing budgets for the United States government; for deciding, within certain limits,

http://www.gpo.gov/fdsys/

http://www.treasury.gov/

http://www.fiscal.treasury.gov/fsreports/ref/fastBook/fastbook_home.htm

http://tfm.fiscal.treasury.gov/content/tfm/home.html

http://www.gsa.gov/portal/forms/type/TOP


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what will go in them and how they are presented; and for making regulations to improve the compilation, analysis, publication, and the dissemination of statistical information from executive agencies. Agencies must provide any information requested by the President.

b. Central financial agencies.

(1) The Office of Management and Budget (OMB). This executive office assists the President in the preparation of the President’s Budget and supervises its administration by executive branch agencies. OMB evaluates the effectiveness of agency programs, policies, and procedures; assesses competing funding demands among agencies; and sets funding priorities. OMB ensures that agency reports, rules, testimony, and proposed legislation are consistent with the President’s Budget and with administration policies.

(2) The Department of the Treasury. The Treasury, through its Financial Management Service, disburses Federal payments such as Social Security, veterans' benefits, income tax refunds, etc.; collects Federal revenues; oversees the government’s daily cash flow; provides a centralized debt collection service to most Federal agencies; and provides governmentwide accounting and reporting. These governmentwide financial reports are used to monitor the government's financial status and establish fiscal and monetary policies.

(3) The Congressional Budget Office (CBO). A legislative branch agency that provides Congress with objective, non-partisan analyses needed for the Congressional budget process. The CBO prepares information related to the budget and the economy but does not make recommendations on policy. CBO’s services can be grouped into four categories: helping Congress formulate a budget plan; helping it stay within that plan; helping it assess the impact of Federal mandates; and helping it consider issues related to the budget and economic policy.

(4) The Government Accountability Office (GAO). This legislative branch agency is the investigative arm of the Congress. GAO helps improve the performance and accountability of the Federal Government for the American people. GAO examines the use of public funds; evaluates Federal programs and activities; and provides analyses, options, recommendations, and other assistance to help Congress create effective oversight, policy, and funding decisions. In this context, GAO works to continuously improve the economy, efficiency, and effectiveness of the Federal Government through financial audits; program reviews and evaluations; analyses; legal opinions; investigations; and other services.

c. Other agencies. The head of each executive branch agency must annually prepare and submit appropriation requests to the President in the correct form and by stated deadline (31 U.S.C. § 1108(b)(1)). Each agency head is also responsible for creating or maintaining a system of administrative controls that prevent obligations from


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exceeding apportionments and that holds any personnel who causes an over-obligation responsible for their actions (31 U.S.C. § 1514(a)).

d. Congress. Congress has the authority to pass legislation, raise revenue for the Federal Government, and authorize appropriations. Substantive authorizing legislation in some form is a prerequisite for appropriation. Appropriations may be permanent or current, may require annual action, and may be definite or indefinite regarding the authorized amounts. Congress has the sole power to appropriate, or refuse to appropriate, funds. Appropriations are made annually by Congress in response to estimates submitted by the executive branch. Congress may set or alter the availability of an appropriation; change the purposes or objects for which funds may be used; establish or revise limitations within appropriations; extend the time for making payments from balances under expired appropriations; or re-appropriate funds from an existing appropriation to make them available for additional periods or for other purposes. Congress may also limit the amount of funding otherwise available for obligation or expenditure, and can rescind all or part of an enacted appropriation.

6. The budget cycle. Budgets are developed and executed for specific fiscal years (FYs) that begin October 1 of each calendar year and end the following September 30 (31 U.S.C. § 1102). They are designated by the calendar year in which they end (for example, FY 2014 will begin October 1, 2013 and end on September 30, 2014).

a. Each fiscal year is divided into 4 quarters. The first quarter (Q1) starts on

October 1, the second (Q2) on January 1, the third (Q3) on April 1, and the fourth quarter (Q4) begins on July 1. See Table 1 for an example of how the fiscal year overlaps with the calendar year.

b. A full budget cycle for one fiscal year can require up to 3 years of preparation, and has two basic phases: formulation, the process of obtaining resources; and execution, the process of spending or administering them (see OMB Circular No. A-11 for a further explanation of the Federal budget process and its time frame). Because it can take more than 30 months to complete a budget cycle for a single fiscal year, there are usually at least three cycles in process at a time.

Table 1: The Fiscal Year vs. the Calendar Year

FY 2015 FY 2015 FY 2015 FY 2015 FY 2016 FY 2016 FY 2016 FY 2016

October 1 January 1 April 1 July 1 October 1 January 1 April 1 July 1

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Calendar Year 2014

Calendar Year 2015

Calendar Year 2015

Calendar Year 2015

Calendar Year 2015

Calendar Year 2016

Calendar Year 2016

Calendar Year 2016

PART 3: FINANCING FEDERAL GOVERNMENT OPERATIONS 7. General purpose. Funds become available to the Federal Government in a number


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of ways: individual income taxes, corporate income taxes, social insurance receipts, rents, royalties, public borrowing, etc. However, they may only be applied for authorized purposes and only to the extent that a budget or other spending authority is available. 8. Authorization. Authorization is any Congressional legislation that creates or continues the operation of a Federal agency or program, either indefinitely or for a specific period of time, and that may allow for certain types of obligations or expenditures within a program. Authorization may limit the amounts that can be provided by appropriations, or it may enable the appropriation of "such sums as may be necessary". In some cases, authorization legislation may allow a program or agency to incur debts. In other cases, the program or agency is required to make payments to individual persons, corporations, or other political subdivisions (this is known as entitlement legislation). 9. Budget authority. Every agency or program requires a budget authority before it can incur obligations. Budget authority is granted by law, and it allows programs and agencies to spend (outlay) any funds that have been authorized for that fiscal year. However, budget authority, like authorizations, may come with restrictions.

a. The basic forms of budget authority are appropriations, authority to borrow, and contract authority.

(1) An appropriation. The most common means of providing budget authority, and usually follows the enactment of an authorizing legislation (in some cases, the authorizing legislation itself provides budget authority). However, certain appropriations are not counted as budget authority because they do not authorize obligations. Examples include: appropriations to liquidate contract authority, to reduce outstanding debt, for refunds of receipts, and to liquidate deficiencies.

(2) Authority to borrow. Legally permits a Federal agency to incur obligations and make payments for specified purposes out of borrowed moneys.

(3) Contract authority. A type of budget authority that permits an agency to incur obligations in advance of appropriations, collections, or receipts that would offset or liquidate the obligations (the liquidation of an obligation is known as an outlay).

b. Budget authorities are classified by amounts specified at the time they are enacted.

(1) Definite authority. A specific sum provided at the time it is granted, regardless of whether it is in an appropriations act or another law. This includes any authority that is "not to exceed" a specified figure.

(2) Indefinite authority. Not a specific sum at the time it is granted; instead, the

sum will be determined at a future date. For example, amounts realized under an


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authority to use all or a part of certain receipts would depend on the level of receipts generated in a year.

c. Budget authority is also classified by the nature of the Congressional action that created it.

(1) Current authority. Is enacted by Congress in or immediately before the fiscal year to which it applies.

(2) Permanent authority. Is provided by one-time or standing legislation, and

becomes available every year without further Congressional action. When Congress provides this type of authority, it is "current" in the first year and "permanent" in succeeding years.

10. Obligational authority. For any given program or activity, a new budget authority may be part of the total budgetary resources available for obligation in a year.

a. Total budgetary resources include:

(1) Current and permanent appropriations that are directly available in the account through appropriations or other acts (new budget authority).

(2) Current or permanent appropriations that become available in the account because a different function or activity has been transferred to it (31 U.S.C. § 1531) (new budget authority).

(3) Contract authorities and/or authority to borrow (new budget authority).

(4) Appropriations given to the agency from a different agency in order to better fulfill the purpose of the appropriation (31 U.S.C. § 1535).

(5) Available balances of prior budget authorities. Previous budget authorities can leave carryover money if there has been a downward adjustment of obligations, a restoration of budget amounts previously withdrawn by administrative action, and/or any unspent funds from previous years.

(6) Reimbursements credited to an account to recover the cost of acquiring for

goods and services ordered by others (31 U.S.C. § 1535). (7) Collections from the public or other agencies that are authorized to be

credited to a revolving, special, or trust fund account, or to finance a continuing cycle of business-type operations.

b. In some cases, Congress may limit spending authority that would otherwise be

entirely available. This is usually done by placing limitations in annual appropriations acts that restrict the use of revenues or collections.


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11. Period of availability. Authorization and appropriation acts specify how long funds are to remain available for obligation.

a. Annual authority is available during a specified fiscal year or for less than a fiscal year.

b. Multiple-year authority is available for obligation for a definite period in excess of one fiscal year. Many capital programs have multiple-year authority.

c. No-year authority is available for obligation for an indefinite period, usually until

the objectives of the authority are accomplished.

12. Accounts. Budgetary accounts fall into two major groups: Federal funds and trust funds. These funds are created from central accounts established by the Department of the Treasury. Central treasury accounts provide the framework for each agency’s accounts. The following information pertains to central treasury accounts:

a. Each account has its own unique alphanumeric code indicating the agency, type of fund, time frame of funds availability, and other information. The Department of the Treasury’s FAST book as well as the Treasury’s Financial Manual explains how the fund codes work in greater detail. It is worth noting that the Treasury may adjust or change these codes from time to time. An example of how funds codes are assigned can be found in Appendix C.

b. For the Federal fund group, there are five types of appropriation accounts and

two types of receipt accounts. Each fund group is identified by a four digit code that falls within a specific range, or ranges, for each account; this range is shown in parentheses. For more information regarding specific terminology used here, see Appendix A. Note that the following codes are accurate as of January 2015.

(1) General Fund Expenditure Accounts (0000-3899). Contains amounts appropriated for the general support of Federal Government activities and the subsequent expenditure of the funds. An example of a GSA general expenditure account is the “Allowances and Office Staff for Former Presidents” fund.

(2) General Fund Receipt Accounts (0000-3899). Credited with all collections not earmarked for a specific purpose. This includes taxes, customs duties, and miscellaneous receipts. The GSA, for example, collects money under “Real Property” in what is known as a “clearing account”. Clearing accounts range from 3500 to 3800.

(3) Special Fund Expenditure Accounts (5000-5999). Contains special fund receipts appropriated for specific programs, and the subsequent expenditure of these funds. A GSA specific example is the “Acquisition Workforce Training Fund”.

(4) Special Fund Receipt Accounts (5000-5999). Credited with collections that are earmarked for a specific purpose other than business-like activity. For example, the


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GSA account “Receipts of Rent, Leases and Lease Payments for Government-Owned Real Property” falls under this category.

(5) Public Enterprise Revolving Fund Accounts (4000-4499). Credited with

collections, primarily from outside the government, that are earmarked to finance a continuing cycle of business-type operations. For example, the GSA’s “Land Acquisition and Development Fund”,

(6) Intragovernmental Revolving Fund Accounts (4500-4999). Credited with collections, primarily from inside the government, that are earmarked to finance a continuing cycle of business-type operations. Examples include working capital, industrial, stock, franchise, and supply funds. The “Federal Citizen Information Center Fund” also falls under this account.

(7) Management Fund Accounts (3900-3999). An account established by the Department of the Treasury that is authorized by law to credit collections from two or more appropriations to finance activity not involving a continuing cycle of business-type operations. Such accounts generally do not own a significant amount of assets, such as supplies, equipment, or loans, nor do they have a specified amount of capital (or principal) provided. As of 2015, the GSA does not have any accounts of this type.

c. The trust fund group is made up of two types of appropriation accounts and one type of receipt account.

(1) Trust Fund Expenditure Accounts (8000-8399, 8500-8999). Contains trust fund receipts appropriated to finance programs under a trust agreement or statute. A GSA specific example is the “Unconditional Gifts of Real, Personal, or Other Property” fund.

(2) Trust Fund Receipt Accounts (8000-8399, 8500-8999). Credited with collections generated by the terms of a trust agreement or statute. The “Unconditional Gifts of Real, Personal, or Other Property” fund also falls under this category.

(3) Trust Fund Revolving Accounts (8400-8499). Credited with collections used to carry out a cycle of business-type operations under law. As of 2015, the GSA does not have any accounts of this type. 13. GSA funding authorities. GSA programs are supported by multiple types of financing; Chapter 4 discusses them in detail.


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CHAPTER 2: BUDGET FORMULATION & PERFORMANCE MANAGEMENT

PART 1: BUDGET FORMULATION – GENERAL 1. General purpose. Budget formulation is the initial phase of the budget process or cycle that involves obtaining necessary workforce and dollar resources for a fiscal year. This process can take 18 months or longer, and has two major stages.

a. First, the executive branch determines the amounts that will be requested from Congress for the budget year. The Office of Management and Budget (OMB) sets the procedures for this stage according to the Budget and Accounting Act of 1921 (amended). The budget of the United States government (also known as the President's Budget) needs to be submitted to Congress no later than the first Monday in February of each year (31 U.S.C. § 1105(a)(amended)).

b. Second, Congressional review and appropriation action includes a number of formal steps that are prescribed by the Congressional Budget Act of 1974 (P.L. 93-344 (amended)), and by several laws providing for budget enforcement and deficit reduction. 2. Budget enforcement and deficit control. The processes and procedures in the Congressional Budget Act were changed substantially by a series of laws designed to reduce or limit the growth of the annual Federal budget deficit. These laws are the Balanced Budget and Emergency Deficit Control Act (BBEDCA) of 1985 as amended (P.L. 97-177) and the Balanced Budget and Emergency Control Reaffirmation Act of 1987 (P.L. 100-119) superseded by the Budget Enforcement Act (BEA) of 1990 (P.L.101-508), and the Statutory Pay-As-You-Go Act of 2010 (P.L. 111-139), and the Budget Control Act (BCA) of 2011 (P.L. 112-25) and subsequent extensions.

a. These laws set maximum deficit levels for each fiscal year, as well as caps on discretionary spending (with separate caps for defense, and non-defense programs) adjusted to reflect up to date re-estimates of economic and technical assumptions.

b. These laws prevent the President from submitting, or Congress from adopting, a budget that exceeds adjusted discretionary spending caps or results in increased projected deficits caused by new direct spending or revenue legislation.

c. The laws amended 31 U.S.C. § 1105 which requires the President to submit his or her annual budget between the first Monday in January and the first Monday in February.

d. The Congressional Budget Act of 1974 accelerated Congressional review and action on the budget (see Chapter 2, Part 4).


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e. These laws require that enacted funds be reduced (“canceled” or “sequestered”) if the amounts exceed adjusted spending caps for that year. They also require that any increase in entitlement authority be offset (“deficit neutral”) or else a sequester (cancellation of budgetary resources) will be triggered. This is referred to as pay-as-you-go ("PAYGO").

f. More information about the effects of the Congressional Budget Act on budget formulation and execution can be found in Chapter 2, Part 4 and all of Chapter 3. PART 2: INTERNAL GSA BUDGET FORMULATION 3. General purpose. This part describes the requirements determination process within the General Services Administration (GSA). 4. External controls. Internal budget formulation is not unconstrained. Requirements are developed and reviewed in relation to external budget ceilings in amounts compatible with the President's program.

a. When the annual President’s Budget is transmitted to Congress, it assumes specific out-year fiscal ceilings. OMB out-year planning assumptions are articulated in OMB's automated budget database system, MAX. In the past, each agency received an allowance letter that described policy and fiscal assumptions in the budget as well as out-year resource ceilings (these out-year numbers may also be shown in special reports supporting the printed budget).

b. These out-year ceilings are the starting point for the next fiscal year's budget

cycle. Every year, from spring to late summer, OMB conducts reviews with Federal agencies in order to help them understand Presidential policies for key areas.

(1) Part of this review involves determining any changes to previous amounts

that will be in the President's July 15 mid-session update of the budget; this is required by the Congressional Budget and Impoundment Control Act of 1974 (2 U.S.C. § 621-653 (amended)). It updates the economic and program assumptions in the budget, which can affect previous out-year amounts.

(2) During this review process, GSA provides information on the effects of

Congressional actions to date, and updates actual and projected outlay data. It may also provide, by request or on its own initiative, information on changes in program direction or content that the GSA Administrator believes should be considered in furthering the President's objectives.

(3) This OMB/agency interaction ensures that internal budget development is consistent with current or future Presidential policies.


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5. Responsibilities. The following identifies the roles and responsibilities of GSA units during budget formulation.

a. The GSA Administrator is accountable to the President for accomplishing GSA's mission; establishing agency direction, goals, performance targets, and priorities; and approving resource levels to be requested from external authorities. The Administrator is also the principal witness supporting the budget before external authorities.

b. The Chief Financial Officer (CFO), through the Director of Budget, recommends the most effective resource distribution to achieve the Administrator's priorities. The CFO, through the Director of Budget develops and issues budget and performance policy, directives, and guidance; receives, distributes, and reviews budgetary materials; and recommends adjustments or alternatives to budget estimates that could result in a more effective distribution of resources.

c. Heads of Services and Staff Offices (HSSOs) translate the Administrator's guidance into viable nationwide, mission-oriented programs and develop estimated resource needs. 6. Methods and procedures. Because the requirements for each formulation cycle can differ, the formats and procedures for internal budget development are explained in annual, agencywide budget calls.

a. Submission timeframes should allow for the maximum preparation lead-time possible within deadlines.

b. Formats and procedures should be standardized as much as possible (which

may be difficult, given the multitude of GSA programs and accounts) to make preparation and review easier.

c. Justification materials should be kept to a minimum so that decision makers can focus their attention on significant issues. If explanatory materials are required, they should be formatted in the same way as external submissions, to the greatest extent possible. This reduces the work required to convert an internal budget document into an external budget document.

d. The quantity of materials and special exhibits should be kept to a minimum for effective review.

e. Requirements are to be presented and justified in relation to a known baseline,

such as the approved current-year program, and should be ranked by priority to assist in decision making. Alternative programs may be shown, and requested funding levels can be compared to an external resources’ planning ceiling (e.g., OMB guidance).


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PART 3: OMB REVIEW AND ACTION 7. General purpose. The last budget formulation stage within the executive branch is determining the resource levels to be included in the President’s Budget.

a. The law requires that the head of each agency submit properly formatted appropriation requests to the Office of the President by the date specified. OMB acts as the President's agent in conducting reviews and making adjustments (31 U.S.C. § 1104, § 1108).

b. The formats, timing, and instructions for submission are in OMB Circular No. A-

11, and are revised annually. c. GSA’s budget request is prepared and submitted entirely within the Central

Office’s (C.O.) Office of Budget. 8. The submission. OMB Circular No. A-11 requires submitting budget and performance materials in several stages.

a. The initial submission, normally due in September of each year, includes the following:

(1) A summary and highlight statement—in the form of a transmittal letter from

the Administrator—that discusses policy assumptions, amounts requested within and above fiscal planning guidance, and areas of special concern or emphasis.

(2) A number of summary exhibits on special topics such as information technology initiatives, rental payments for space and land, research and development, financial management initiatives, and other topics that are specified annually.

(3) Detailed justification materials, in the format defined by OMB examiners.

b. Computer data should be loaded into MAX, when requested. c. Materials that will be part of the printed budget are to be completed and

submitted after the OMB passback, and after final decisions on the agency's budget have been made (see Chapter 2, Part 3, Paragraph 15).

9. OMB review. OMB examiners review the agency budget, conduct hearings on the request, and obtain additional information. This normally occurs between mid-September and late October.

a. The Administrator often meets with senior OMB officials to provide an overview of the GSA request, and to address major policy and agencywide matters. The Administrator is usually accompanied by the CFO, the Director of Budget, and as required the HSSOs.


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b. OMB examiners may conduct detailed hearings for each major GSA program

request. The principal witnesses are generally the Head of Service, key program officials, and the Director of Budget.

c. Other GSA officials may be called on to answer questions or provide additional

information. Their responses may be submitted orally and/or in writing.

10. OMB action. OMB Program Examiners evaluate the agency’s request in light of the information provided in budget materials and testimony, and in relation to the President's priorities, program performance and budget constraints.

a. In mid-to-late November, OMB Program Examiners present their recommendations to the OMB Director and other senior OMB personnel. After the Director's approval, recommendations are provided to GSA in a document titled "OMB Passback."

b. If the Administrator believes that the proposals do not support the President's

program, or are not in the public interest, he or she may appeal to the OMB Director or to the President for reconsideration. Only the most critical matters are proposed for reconsideration. Technical adjustments are generally handled by a GSA budget analyst and the OMB Program Examiner.

c. During passback and appeal, the GSA CFO, through the Director of Budget, keeps in contact with OMB and informs agency managers on the status of proposed adjustments.

(1) Final adjustments are applied according to the manner specified in the passback. When the agency has latitude in applying general adjustments, the CFO recommends a distribution of the adjustments.

(2) Sub-allocating adjustments to the activity level and below is normally the

prerogative of the affected Service or Staff Office, provided it is consistent with OMB and agency direction.

(3) The agency has the ability to distribute adjustments by object of expenditure

(object class), except when the object of adjustment is explicitly stated (e.g., a travel reduction).

d. During this adjustment time, but before the President formally submits the budget to Congress, all budget information is confidential within the executive branch. See OMB Circular No. A-11 and Chapter 2, Part 7.

e. The resource levels finally approved by the President are included in The Budget

Appendix of the United States Government, and the GSA works with OMB to complete required print materials.


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f. In February or March, the agency may receive the President's allowance letter,

which formally restates approved policies and resources for the budget year, and provides related out-year planning ceilings that are the basis for the following budget cycle (see Chapter 2, Part 8, Paragraph 36). 11. The Budget of the United States. OMB prepares the President’s Budget. GSA provides information and print materials as requested for The Appendix to the Budget. The Office of Budget prepares most and coordinates all GSA print materials.

a. Print materials consist of appropriations language, program and financing schedules, object classification schedules, narrative statements, data about work performed, employment data, and special schedules. Technical instructions for preparing print materials are in OMB Circular No. A-11.

b. Text parts are either reprinted galleys1 from the previous year’s Appendix to be

marked up with current information or new printed materials to appear in the Appendix for the first time.

(1) After the budget submission in the fall, OMB provides agencies with copies

of galleys that are marked-up as budget reviews are completed. Revisions to reprinted galleys are inserted either on the galleys or on attachments; new (original) print materials are not used for this purpose.

(2) Tables and schedules on reprinted galleys are blank; data entered into the

automated MAX budget database system will populate these tables.

(3) New print materials are submitted for all OMB-approved budget accounts, legislative items, supplemental requests, rescission proposals, and consolidations or mergers of accounts (i.e., anything not printed in the previous year's Appendix).

c. After receiving new budget determinations, OMB may ask GSA to submit revised galleys and new print materials.

(1) Print materials are submitted as a single package, and are not to be reduced in size, cut apart, or otherwise physically altered. None of the information being revised should be erased or hidden.

(2) After the submission is printed on new galley proofs, it is sent to the agency

for review and correction. All corrections are made in black. Galley proofs are returned on a calendar schedule set by OMB. The term “Galley Proofs” are preliminary versions of a publication meant for review. The term comes from the days of hand-set typography where the metal trays used to tighten and set the type into place were called galleys.

1 “Galley” is a long-standing OMB term. These days, the word “galley” refers to a PDF file.


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d. Because of tight deadlines, the GSA needs to keep all printed materials up to date, so that they will be ready when the OMB requests them.

e. After the President submits the budget to Congress, copies of the electronic

budget, Budget Appendix, and pertinent special analyses are made available to each Service and Staff Offices (SSO) and to each Region.

12. Congressional justification material. In addition to the performance plan and materials for the printed budget document, GSA also prepares detailed justifications to submit to the House and Senate Appropriations Committees. GSA may also provide copies to other committees with oversight responsibilities (e.g., House Committee on Transportation and Infrastructure).

a. Congressional justifications and performance plans are prepared by the SSO based on instructions issued by the Office of Budget. Format and content are determined by the Appropriations Committees, and are usually patterned after the previous year's submission. GSA may suggest format changes to the committees.

b. All materials are submitted to the Office of Budget as electronic files.

c. The Office of Budget reviews final drafts for consistency of format, adequacy of narrative, and inclusion of all required data. They also prepare a consolidated, agencywide exhibit, and they print the final product as a single volume.

d. GSA submits detailed justifications at the same time as the President’s Budget, or immediately after it. Annual instructions include a timetable for input of final draft materials by the SSO.

e. Copies of Congressional Justifications are available on the GSA intranet.

PART 4: THE CONGRESSIONAL BUDGET PROCESS 13. General purpose. As required by law (31 U.S.C. § 1105(a)(amended)), the President’s Budget is transmitted to Congress each year by no later than the first Monday in February. After that, Congressional action follows a formal process that leads to appropriations enactment. When received by Congress, the budget is jointly referred to the Committee on the Budget so they may start the Congressional budget process; to various legislative committees for items that require authorization; and to the Committee on Appropriations for consideration in enacting appropriations legislation.

14. Background. The modern Congressional budget process was established by the Congressional Budget and Impoundment Control Act of 1974 (P.L. 93-344 Titles I-IX, 2 U.S.C. § 621-653). Later, it was substantially modified by BBEDCA (P.L. 99-177 amended), the Balanced Budget and Emergency Deficit Control Reaffirmation Act of


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1987 (P.L. 100-119), the BEA (P.L. 101-508), the Statutory PAYGO Act of 2010 (P.L. 111-139) and the BCA of 2011 (P.L. 112-25).

a. Before the 1974 act, control of the budget essentially rested with the President. The annual request determined national priorities as well as the level and direction of Federal spending. Congress acted through uncoordinated legislative and revenue measures, and passed up to 13 independent appropriations bills a year.

b. The 1974 act was passed in order to:

(1) Ensure effective Congressional control over the budgetary process. (2) Authorize an annual Congressional determination of the appropriate level of

Federal revenues and expenditures. (3) Create a system of impoundment control. (4) Establish national budget priorities.

(5) Allow the executive branch to provide any information that will assist

Congress in fulfilling its duties. (6) Achieve greater budget discipline through statutory financial procedures.

c. Amendments to the 1985 and 1987 acts accelerate the budget timetable and state that the enacted spending authority may not result in annual budget deficits exceeding the amounts given in the acts. The BEA provides for annual spending caps that can be adjusted for economic factors. The BCA and the PAYGO Act were enacted to reinstate the statutory budget enforcement mechanism for mandatory spending, revenues and discretionary spending—to enforce a rule of deficit neutrality on new revenue and mandatory spending legislation and to establish limits ("caps") on the amount of discretionary budget authority that can be provided through the annual appropriations process for 2012 through 2021. 15. Major provisions.

a. These acts set or changed major features of the Congressional budget process:

(1) The President may not transmit a budget that would result in a deficit for a fiscal year in excess of the amount specified for that year. Similarly, Congress may not adopt a concurrent resolution that would have the same effect.

(2) After the concurrent resolution for a fiscal year is adopted, it is not in order for either chamber of Congress to consider any bill, resolution, or amendment that would increase spending or entitlement authority, or decrease revenues, if it will exceed


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that year’s deficit cap. "Not in order" means that the measures can be struck on a point of order.

(3) The procedures and deadlines for Congressional action are "...an exercise

of...rulemaking power...with full recognition of the constitutional right of either House to change such rules..." (2 U.S.C. § 904). This means that Congress may modify or waive parts dealing with its own rules and procedures.

b. The annual President’s Budget should be based on the best available estimates; include a discussion of its underlying economic assumptions; compare service estimates from last year with the current year; and display requested amounts by functional category. The President is also required to submit a mid-session update of his or her budget estimates.

c. The Congressional Budget Office (CBO) was created to support Congressional action, and a Committee on the Budget was created in each chamber to exercise jurisdiction.

(1) Congress annually passes a concurrent resolution on the budget that sets appropriate levels for: total new budget authority and outlays by major functional category; total Federal revenues and the amount of surplus or deficit in the budget.

(2) The resolution, although binding on Congress, is not a law and does not require a Presidential signature.

(3) Resolution amounts are allocated to House and Senate committees as firm targets for revenue and appropriations action. A committee may not recommend a spending authority that exceeds its targets in the allocation report.

(4) With certain exceptions, Congress will not consider any bill providing new spending or entitlement authority until the concurrent resolution is adopted.

(5) After the resolution is passed, reconciliation legislation makes any changes

needed to meet the targets. This legislation directs committees to determine and recommend changes to enacted laws providing budget, spending, or entitlement authority; to revenue laws; to the limit on the national debt; or to some combination thereof.

(6) Because there are deadlines for adopting the concurrent resolution and completing reconciliation legislation, the act, 2 U.S.C. § 640, states that the House may not adjourn for more than three days during July until it has passed all appropriations bills. There is no similar provision applying to the Senate. 16. Timing and procedures. The primary steps of the Congressional budget process, as established by the Budget and Impoundment Control Act of 1974, are noted below.


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a. The President submits his or her annual budget on or before the first Monday in February. It is referred to the Budget Committee in each Chamber.

b. By February 15, the CBO must provide the Budget Committees with a report that discusses the implications of the budget on fiscal policy and national budget priorities, and presents alternative ways of allocating budget authority and outlays to meet national needs.

c. Within six weeks of the President’s Budget transmittal, each House and Senate

committee submits its views on the budget, and the levels of new budget authority and outlays, by functional category, that it recommends be included in the concurrent resolution for programs under its jurisdiction to its respective Congressional Budget Committee.

d. Each Budget Committee reviews the CBO report and the views of other

committees; holds hearings and receives testimony from members of Congress, Federal agencies, and the public; and reports on the concurrent resolution on the budget to their respective chamber. The Senate Budget Committee reports its resolution no later than April 1.

e. The resolutions are debated, amended, and passed in each chamber under rules that limit total hours of debate and prevent amendments that would exceed legal deficit levels. Differences between the House and Senate bills are resolved in conference. The resolution becomes effective when the conference report is adopted; it does not require a Presidential signature. Congressional action on the concurrent resolution is to be completed by April 15.

(1) Unless a waiver of the Budget Act is passed, neither chamber may create a

resolution that provides new budget, spending, or credit authority, or that changes revenues or the public debt limit, until the concurrent resolution is passed.

(2) If the resolution is not adopted by May 15, the House may begin considering appropriations bills. The Senate may also consider bills before the concurrent resolution is adopted if they pass a decree waiving the restriction.

f. The joint explanatory statement that accompanies the conference report includes

resolution allocation amounts for each committee that is divided between mandatory/uncontrollable and discretionary/controllable amounts. House and Senate allocations may differ for the same committee.

(1) "As soon as practicable" after the concurrent resolution is passed, the

Appropriations Committee of each chamber distributes its allocation by subcommittee, and reports the distribution.


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(2) It is not in order for either chamber to consider a spending bill until distribution and reporting is complete, nor may they consider a bill providing spending authority that exceeds the allocations.

g. After the Congressional subcommittees receive the allocations, they begin

reporting appropriations bills. On or before June 10, the House Committee on Appropriations reports all annual appropriations bills providing new budget authority for the fiscal year beginning October 1. The House must complete action on them by June 30, or it may not adjourn in July for more than three days. However, the House can waive these restrictions, and there are no similar provisions concerning the Senate.

h. To achieve savings goals, a concurrent resolution may direct committees to

reduce new budget or entitlement authority in measures that have already been passed. In these instances, each committee makes the necessary adjustments, which are then usually combined into a single "reconciliation" bill. Amendments to the bill that would increase budget authority or outlays, or reduce revenues, are not in order unless they make at least equal reductions in other areas. Reconciliation action must be completed by June 15, or the House may not adjourn for more than three days in July.

17. Functional categories. The Congressional Budget and Impoundment Control Act and 31 U.S.C. § 1105(a)(22) state that the budget should list all requirements in terms of national needs, agency missions, and basic programs. This can be accomplished by listing requirements by function category, i.e., a group of activities or programs with similar purposes that meet a specific national need. The concurrent resolution on the budget allocates amounts of authority and revenues by function.

a. Functional category data in the President’s Budget are compiled by OMB from function character codes for each account or program that are in automated systems.

b. There are 18 functions, each divided into one or more sub-functions, plus two separate categories for allowances and undistributed offsetting receipts.

(1) National Defense (code 050). Protects the Nation and its allies from

aggression. (2) International Affairs (code 150). Protects and advances the interests of the

United States and its people in international relations.

(3) General Science, Space, and Technology (code 250). Ensures U.S. strength and leadership in science and space technology.

(4) Energy (code 270). Meets government responsibilities with respect to energy.

(5) Natural Resources & the Environment (code 300). Manages public lands and resources for their preservation, conservation, and economic development; works


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with state governments to ensure a clean environment; and encourages environmental studies.

(6) Agriculture (code 350). Helps meet domestic and international trade demands for food and fiber while mitigating the adverse effects of price fluctuations on farmers.

(7) Commerce & Housing Credit (code 370). Maintains an environment in which all sectors of the economy may compete equally for credit.

(8) Transportation (code 400). Facilitates a safe and efficient national

transportation system. (9) Community & Regional Development (code 450). Supplements local

government efforts to sustain economic and social growth in both urban and rural areas.

(10) Education, Training, Employment, & Social Services (code 500). Provides education, particularly for disadvantaged, low-income, and handicapped persons, and assists them in gaining job skills and finding employment; helps employers and employees maintain stable and productive relations; provides social services for needy children, families, the elderly, and others.

(11) Health (code 550). Finances health care services, promotes disease prevention, and supports medical research and training.

(12) Medicare (code 570). Provides health insurance to the elderly and disabled.

(13) Income Security (code 600). Insures individuals against loss of income resulting from retirement, disability, death, or unemployment, and assists the truly needy.

(14) Social Security (code 650). Provides income security to the elderly and disabled through old-age and survivors insurance and disability insurance.

(15) Veterans Benefits & Services (code 700). Compensates veterans for loss of earnings resulting from service-related disabilities, provides medical care, and helps veterans return to civilian life.

(16) Administration of Justice (code 750). Protects persons and property through the enforcement of Federal laws; enables Federal courts to resolve disputes, to defend the public interest in criminal and civil proceedings, and to operate detention and correction facilities.

(17) General Government (code 800). Provides overall management, policy, and central operations for the Federal Government.


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(18) Net Interest (code 900). The cost of government borrowing and credit income from lending money.

(19) Allowances (code 920). Covers certain forms of budget transactions that are not reflected in other functional categories.

(20) Undistributed Offsetting Receipts (code 950). Reflects collections that are not distributed by agency or function.

c. GSA's programs are generally under code 800, “General Government”. PART 5: ENACTING APPROPRIATIONS 18. General purpose. This part discusses the specific steps and procedures that result in enacted appropriations.

a. The President’s Budget is jointly referred in each chamber to the Committee on the Budget, to legislative committees for items that require authorization, and to the Committee on Appropriations for enactment of authorized funding.

b. GSA operating appropriations and revolving funds are permanently authorized, and do not require routine annual authorizing action. Other accounts may require prior annual authorization.

(1) The House Committee on Transportation and Infrastructure and the Senate Committee on Environment and Public Works have jurisdiction over Federal Buildings Fund (FBF) programs, and annually authorize funding project by project. The Senate authorizes sums for all FBF activities.

(2) The House Committee on Oversight and Government Reform and the Senate Committee on Homeland Security and Governmental Affairs oversee Federal operations in general. While not normally direct participants in the budget process, they can report out legislation that affects GSA.

c. Measures referred to the Committees on Appropriations are further referred to subcommittees that have jurisdiction over individual agencies or programs. For GSA, the Subcommittees on Financial Services and General Government Appropriations Acts handle appropriations.

19. Budget hearings. Appropriations subcommittees of each chamber review justification material and conduct hearings on the budget request. Hearings are important because they form the legislative history of a bill, and testimony helps inform voting committee members.


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a. GSA House hearings usually occur in late February or March. Senate reviews, which are less formal than House hearings, usually occur between March and May. The Office of Budget will publish a schedule of these events.

(1) Preparation for hearings begins immediately after completing the budget

justification material. Potential witnesses become familiar with the details of the request, and prepare additional exhibits or reference material for possible use during the hearings. They may also review the prior year's hearings for areas in which Congress members have expressed interest.

(2) Before the hearings, the Administrator may hold briefing sessions with SSO witnesses to discuss the estimates and methods for presenting and justifying them.

b. The Administrator is the principal witness at budget hearings or a lead witness if

several hearings are scheduled. c. The Administrator's opening statement provides highlights of the request, and

how it relates to accomplishing program goals, implementing administration policies, improving agency performance, and realizing the agency's mission. If further hearings are scheduled, HSSOs or other designated GSA officials will testify as principal witnesses. Testimony and the conduct of witnesses should be consistent with the policies in OMB Circular No. A-11 and Chapter 2, Part 7. 20. Hearing transcripts. As a courtesy, agencies are allowed to review, revise, and edit hearing transcripts before they are published. This is to ensure that the statements recorded by the reporter are accurate and to supply additional data. Typically, revisions or edits are limited to clarifying technical or grammatical matters.

a. GSA normally receives a verbatim transcript one or two days after a hearing.

(1) The Office of Congressional and Intergovernmental Affairs distributes a copy to the service or staff office involved. A return date is indicated, usually within 48 hours, to meet subcommittee deadlines. Instructions for editing the transcript are provided.

(2) Written questions for the record may accompany transcripts. Questions and

answers are either appended to the transcript or sent at a later date depending on the Committee’s instructions.

(3) Answers to questions are forwarded to OMB for possible annotation and clearance, and then returned to GSA.

b. After marked-up transcripts, answers to questions, and other materials for the record are received from Services and Staff Offices, the Office of Congressional and Intergovernmental Affairs consolidates them into a master original. The master original is then returned to the Committee.


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c. Transcripts and related materials are not to be duplicated, and are considered privileged until released by the Committee.

d. Later, the Committee sends GSA a page proof for final editorial review. This review is performed by the Office of Budget.

e. After hearing volumes are printed, the Office of Congressional and Intergovernmental Affairs distributes them within the GSA. 21. House action. In accordance with Article I, Section 7 of the U.S. Constitution, the House of Representatives is the first to act on appropriation measures. The following discussion reflects a typical process, and assumes that any necessary authorization action has been completed.

a. After reviewing justification materials, testimony, and other information, the subcommittee meets in a markup session to decide what it will recommend for appropriation. Normally, subcommittee staff will have prepared a "Chairman's recommendation" as the framework for discussion. The subcommittee recommendation, in the form of a "committee print" bill and accompanying report, is sent to the full Appropriations Committee.

b. The full committee considers the subcommittee’s recommendation, and

members may propose changes that, if agreed to by majority vote, are incorporated. The Committee then reports its recommendations to the entire House. At this point, the bill and report are given an official House bill number.

c. When the bill is brought up for consideration on the floor, the House of Representatives constitutes itself as the Committee of the Whole House to consider amendments.

(1) Before then, the bill would have been given a rule set by the Committee on

Rules that specifies the duration of the debate and what type of amendments may be offered.

(2) During floor debate, a member may offer any amendment to the bill that is consistent with the rule. If agreeable to the manager of the bill (normally the Chairman of the Subcommittee), and if there is no opposition, the amendment is adopted. Otherwise, it is debated and voted upon. Only a simple majority vote is needed for adoption.

(3) It is a House rule that appropriations bills do not contain substantive legislation. Any part of a bill or amendment that is substantive can be struck on the point of order that it is legislation on an appropriations bill. However, appropriations measures frequently contain substantive law because nobody raised a point of order.


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d. After the floor debate, the Committee of the Whole House votes on the final passage of the (potentially amended) bill. Only a simple majority is needed. Once passed, the Clerk of the House signs the bill and sends it to the Senate.

e. During this process, the Office of Budget, in conjunction with the Office of Congressional and Intergovernmental Affairs, analyzes and reports on actions taken by the subcommittee, full Committee, and House floor that relate to the budget request. These analyses, as well as pertinent parts of bills and reports, are provided to GSA management officials and other affected units. 22. Senate action. In accordance with Article 1, Section 7 of the U.S. Constitution, the Senate does not initiate a separate appropriations bill, but takes action on the House bill as passed. This is why appropriations bills always bear a House Resolution (H.R.) designation. The Senate process is identical to that of the House.

a. Subcommittee action starts when House proposals are known with some degree of certainty, either after House full Committee action or after the bill has passed the House.

b. Subcommittee proposals may include changes to House-approved funding or provisions, as well as new adjustments. Actions are reflected as amendments to the House bill: material to be deleted is struck-through; substitutions or additions are in italic.

c. Full Appropriations Committee action follows, and additional changes are

possible. The bill is then reported to the whole Senate. The bill keeps its H.R. number, but is also designated "as reported in the Senate". An accompanying Senate report is filed to explain Committee recommendations.

d. As in the House, Senate floor action can result in further amendments.

(1) Normally, all Committee amendments are adopted en bloc (as a package), with the result becoming the new “original” text for purposes of further amendment.

(2) Unlike the House, floor debate is not governed by a rule, but by "unanimous consent". This carries the same authority as House debate rules, but can be modified by subsequent unanimous consent agreements.

(3) The floor manager of the bill tries to get as many things as possible included under a unanimous consent agreement. Anything left out of the agreement may be debated indefinitely. If a member holding the floor will not yield on an item that is unrestricted by the agreement, he or she may speak continually ("filibuster"). In this case, a cloture (termination of debate) petition may be filed. The cloture petition requires 60 votes to pass, but if it goes through, then each senator is limited to one additional hour of speech.


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(4) The Senate also has a standing rule against legislation on an appropriations bill, and amendments that are substantive may be struck on a point of order. However, this pertains only to Senate-initiated actions, not to any legislative items that are already contained in the House-passed bill.

(5) Adopting floor amendments and final passage of the bill requires a simple

majority vote. (6) Once the bill passes, Senate amendments are engrossed (incorporated)

and sequentially numbered.

e. The Office of Budget, in conjunction with the Office of Congressional and Intergovernmental Affairs, keeps track of Senate actions and prepares reports that compare recommended amounts and provisions with the budget request and House passage. These reports, and sections of the Committee bill and report, are provided to management officials and other affected units.

23. Statement of administration position and requests for reconsideration.

a. At appropriate stages in the process, OMB prepares statements of administration position on House and Senate proposals. They usually focus on major disagreements that bear on legal and policy considerations, rather than addressing every action taken. While these statements can affect the GSA, the GSA is generally not involved in preparing them.

b. The GSA Administrator may formally request that the Committees reconsider action that they have taken or that has been taken by the other body. These appeals by GSA may not be contrary to any statements issued by OMB.

c. Formal appeals, in the form of a letter and attachments, are made to the appropriate Chairman of the Subcommittee.

(1) Appeals can be to the House Subcommittee Chairman asking for a

proposed action modification on the floor; to the Senate Subcommittee Chairman requesting modification or reversal of a House action; or to the conferees concerning actions by both bodies.

(2) The basis for an appeal is that an adjustment was made in error, or that information is available that was not considered by the body making the adjustment.

(3) Only the most critical items that meet these criteria are appealed, since

requests for general restoration tend to be viewed as frivolous by the committees.

(4) The Office of Budget coordinates preparation of appeals, and requests input from GSA units as appropriate.


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d. Regardless of whether there is a formal appeal, the Office of Congressional and Intergovernmental Affairs and the Office of Budget continually inform the Committees of the full effects of proposed adjustments and any special circumstances that need to be considered. OMB is also kept informed of developments. 24. Conference Action and Appropriations Enactment.

a. When the Senate passes the bill, it requests a conference with the House to resolve any differences, and appoints its conferees. When the House receives the Senate bill with engrossed amendments, it may agree to the Senate’s version or disagree and request a conference. The House then selects its own conferees.

b. Conferees for each body are comprised of the members of the Appropriations

Subcommittee, plus the Chairman and Ranking Member of the full Appropriations Committee. In rare cases, other members that have a specific interest in some part of the bill may be appointed as a conferee for that item only.

c. The conferees meet to resolve differences between the two versions of the bill.

Technically, conferees do not add new provisions or change items not in disagreement; their authority is limited to recommending for each amendment:

(1) The Senate recedes from its amendment.

(2) The House recedes from its disagreement to the amendment of the Senate.

(3) Or a compromise is adopted (the House recedes with an amendment to the

amendment of the Senate).

d. When an agreement is reached, the House Committee prepares a Conference Report and an accompanying Statement of the Managers to explain the basis for recommendations. The conference report must be passed by both bodies; disagreement, or a change by either chamber, requires further conference and a new report concerning the area of disagreement.

e. When the conference report is adopted, its provisions are entered into a bill that is signed by both the Speaker of the House and the President of the Senate; then it is submitted to the President for signature.

f. Once the President signs the bill, it becomes an appropriation. If he or she vetoes it, Congress can try to override the veto by a two-thirds majority vote in both chambers, or it can refer the bill back to Committee for adjustment. An adjusted bill goes through the same process as a new one.

g. Enacted bills become public law, and are assigned a Public Law (P.L.) number by the National Archives and Records Administration.


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h. The Office of Congressional and Intergovernmental Affairs and the Office of Budget advise agency officials and units on the outcome of the conference and on the provisions and authorities in the resulting act. Copies of the conference report and appropriations act are distributed within the agency, and are on file, along with the pertinent legislative history on the GSA’s intranet.

25. Line-Item Veto. Legislation giving the President line-item veto authority passed in 1996, but in 1998 the Supreme Court ruled it unconstitutional in a 6-3 decision (Clinton v. City of New York). PART 6: AMENDMENTS AND SUPPLEMENTALS 26. General purpose. The President’s Budget is an estimate of requirements based on information available at that time. When circumstances warrant, changes to the budget request are transmitted to Congress in budget amendments and supplemental requests.

a. An amendment formally modifies estimates before the Appropriations Committees of both chambers have acted on them; if the change is proposed after the Committees have acted, it is a supplemental.

b. Requests may either be for additional amounts or for a change in appropriation language.

c. The proposals are submitted to OMB for approval. OMB action on proposed supplementals or amendments that are not transmitted with the annual budget take a minimum of three weeks.

d. If approved, the supplemental or amendment is transmitted to the House and Senate (if the House has already acted on the original request, then it is just sent to the Senate). Hard copies are furnished to each Appropriations Committee and to the CBO. Oversight committees may also get copies, if appropriate.

e. OMB Circular No. A-11 provides detailed instructions on preparing requests, exhibits, and justifications. 27. Basic policies.

a. A supplemental or amendment cannot be postponed until the next regular budget cycle if it is to be accepted. OMB Circular No. A-11 states that they will be considered only when:

(1) Existing law requires payment to be made within the fiscal year (e.g.,

pensions and other entitlements).


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(2) Liability accrues under the law, and it is in the government’s interest to liquidate the liability as soon as possible (e.g., claims on which interest is payable).

(3) An unforeseen emergency situation occurs (e.g., natural disaster requiring

expenditures for the preservation of life or property). (4) Increased workload is uncontrollable except by statutory change. (5) Or new legislation enacted after the submission of the annual budget

requires additional funds within the fiscal year.

b. Every effort is made to postpone any action that would require supplemental appropriations until the following fiscal year. Proposals that decrease or eliminate amounts, however, are submitted whenever warranted.

c. Any proposed additions to amounts in the budget should be accompanied by

proposed reductions elsewhere. d. Supplementals and amendments, whether transmitted in the annual budget or at

a later date, should conform to the policies of the Administrator and the President, and should justify program objectives and the method of financing.

28. Budget amendments. Amendments are proposed actions, including revisions to pending supplementals that change the President’s Budget request before the Appropriations Committees of both chambers have completed action.

a. The revisions may involve increases or decreases to the request, and may alter program levels or re-price budgeted programs.

b. A budget amendment follows the same path as a basic request, but over a

shorter time (in weeks or days). Agency proposals are forwarded by the Administrator to OMB for review and approval by the President. If approved, they are transmitted to Congress.

c. A budget amendment always applies to the President’s Budget as submitted or

previously amended, and is never used to appeal or otherwise change levels resulting from Congressional actions. 29. Supplementals. These are new proposals transmitted after budget action is completed by the Appropriations Committees of both chambers, regardless of whether or not appropriations have been enacted. A downward adjustment to enacted amounts is called a rescission (see Chapter 3, Part 11, Paragraph 62).

a. Supplementals are sent to Congress prior to, during, or after transmittal of the budget document for the upcoming fiscal year; i.e., at any time during the current year.


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b. New supplementals request additional amounts not previously anticipated, or they request additional amounts to cover deficiencies, such as the over-obligation of funds.

c. Whenever possible, current-year supplemental estimates are submitted with the

request for the next budget year to facilitate faster review and processing, and to make sure that related budget year requirements are considered. When supplementals are transmitted off-cycle, subsequent-year needs may remain unbudgeted, possibly requiring a budget amendment or another supplemental the following year.

d. Congress usually acts on requested supplementals by passing a single

supplemental appropriations act. This can occur late in the current fiscal year. PART 7: BUDGETARY COMMUNICATIONS & THE CONDUCT OF WITNESSES 30. General purpose. During budget formulation, GSA officials must justify budget requests and provide information to external authorities. This includes testimony and written responses to OMB, the Congress, or the public. The following information is agency policy, and includes specific instructions contained in OMB Circular No. A-11. 31. Confidentiality. Until it is officially submitted, a budget and its contents, including performance plans, are privileged and confidential, and are not released or discussed externally without explicit approval.

a. During internal GSA budget formulation, unauthorized information may not be provided to OMB, Congress, other agencies, or the public. This prevents disclosures that could limit the options available to the Administrator in determining the resource and program levels to be forwarded to OMB.

b. After an external budget has been submitted, OMB recommendations and the

President's determinations are confidential, and are not released until the budget is transmitted to Congress. This also applies to supplementals, amendments, or other changes proposed after the budget has been submitted.

c. OMB Circular No. A-11 advises that, pursuant to 5 U.S.C. § 552(b)(5), budget documents may be exempt from mandatory release to the public under the Freedom of Information Act (FOIA). Depending on the nature of the records, other FOIA exemptions may also apply. Any discretionary decision to disclose protected information should be made only after full and deliberate consideration of the institutional interests that could be implicated by disclosure, as well as after consultation with OMB. Agency heads are responsible for determining the propriety of record releases under FOIA.


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32. Communications and the conduct of witnesses. After a budget has been formally transmitted (e.g., from GSA to OMB or from the President to Congress), agency officials must support it.

a. In furnishing information on appropriation and budgetary matters, agency representatives should be aware that 31 U.S.C. § 1108(e) states that "an officer or employee of an agency...may submit to Congress or a committee of Congress an appropriations estimate or request, a request for an increase in that estimate or request, or a recommendation on meeting the financial needs of the Government only when requested by either House of Congress."

b. 18 U.S.C. § 1913 also restricts communications that are not conducted through proper official channels.

c. After formal transmittal of a budget, amendment, or supplemental request,

agency representatives should adhere to the following policies when testifying before any Congressional committee or communicating with Members of the Congress:

(1) Provide frank and complete answers to all questions. (2) Do not volunteer personal opinions that reflect positions inconsistent with

the President’s program or appropriation request.

(3) If statutory provisions exist for the direct submission of the agency budget request to the Congress, OMB may provide additional materials supporting the President’s Budget request that will be forwarded to the Congress with the agency testimony. Witnesses will be prepared to explain the agency submission, the request in the President’s Budget, and any justification material.

(4) When responding to questions from Congress on program and appropriation

requests, refrain from providing the agency’s request to OMB or plans for the use of appropriations that exceed the President’s request. Typically, witnesses are responsible for one or a few programs, whereas the President is responsible for all of the needs of the Federal Government, and compares them against each other and against the revenues available to meet such needs. Where appropriate, witnesses will explain this difference in perspective and it is not proper for them to support appropriations above the amounts requested by the President.

(5) When there is a request for a written response that involves a statement of opinion on program and appropriations requests, witnesses will provide a reply through the head of the agency.

(6) Do not let communications be perceived as an “appropriations estimate or

request…or an increase in that estimate or request” (31 U.S.C. § 1108). Agency representatives support the President's budgetary decisions and seek adjustments to


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those decisions only through established procedures if the agency head determines such action necessary.

d. The policies are not intended to prevent honest responses to questions nor to

dissuade recommending needed adjustments, but rather to make sure that policy consistency is maintained. To this end, OMB Circular No. A-11 requires prior OMB clearance for all budget related material prior to transmittal to Congressional committees, individual Members of the Congress and their staffs, or the media. 33. Agency procedures.

a. All materials that contain information pertaining to the agency's budget, or that involve significant financial transactions, will be reviewed and coordinated by the Office of the CFO, Office of Budget in conjunction with the Office of Congressional and Intergovernmental Affairs, before they are submitted to external authorities. This includes basic budget materials; prepared testimony; written responses to questions or requests from OMB, Congress, and the public; materials for OMB, members of Congress, or Congressional committees that are related to budget resources (e.g., prospectuses for oversight committees); and press releases or information for the public that concern the budget and significant financial transactions.

(1) After review, the Office of Budget coordinates actions involving OMB and the Congressional Committees on Appropriations, and obtains any clearances required by OMB Circular No. A-11.

(2) Questions from individual members of Congress, Congressional committees other than the Committees on Appropriations, other Federal agencies, and private groups or individuals are reviewed by the Office of Budget and the Office of Congressional and Intergovernmental Affairs and may additionally be reviewed by the Office of Communications and Marketing, as appropriate.

b. If an official or associate of GSA receives a FOIA request for budgetary information, the Office of General Counsel is consulted for advice on the applicability of an exemption to disclosure.

c. To avoid delays when responding to OMB, Congress, and the public, involved

parties should review items concurrently, rather than wait for a final product. d. OMB Circular No. A-11 requires that materials be submitted in time to allow

OMB five working days to review the material. In exceptional circumstances where response time is short, agencies can ask for expedited clearance.


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PART 8: BUDGET COVERAGE AND STRUCTURE 34. General purpose. This paragraph discusses principles that determine how budgets are structured and presented.

a. The purpose of a budget is to obtain the authority and resources needed to execute programs and accomplish missions. To be successful, it must fully define programs and resource requirements and show how they relate to accomplishing goals and objectives.

b. Budgets can be based on obligations or costs. Although often used

interchangeably, the terms are not synonymous. (1) Obligation-based budgets reflect the amount of authority needed for orders

placed, contracts awarded, services requested, or other obligations occurring in a budget year.

(2) Cost-based budgets show requirements at the time funds are consumed,

not when they are obligated or outlaid, and usually apply to business-type operations such as revolving funds. Special budget exhibits translate costs into obligations, outlays, and, if required, budget authority.

c. Regardless of the basis for a budget, there are standard rules for determining

account and activity structure, discussed in Chapter 2, Part 8, Paragraph 39.

d. Because accounts differ in nature and content, budget requirements are placed in uniform categories by common mission or purpose.

(1) The Congressional budget process uses functional categories to show how budgeted resources will address national needs (see Chapter 2, Part 4).

(2) The President’s Budget also displays obligations by object classification,

rather than by national mission, program, or financing source. Object classes show amounts for such common purposes as employee pay, travel, printing, rent, supplies, etc. OMB Circular No. A-11 lists and defines major object classes and subclasses. 35. Baseline estimates. Budget estimates are developed both on the basis of continuing current operations and on the basis of policy direction.

a. Baseline estimates follow the rules in Section 257 of BBEDCA, as amended. The baseline rules were recently reinstated through amendments to BBEDCA enacted in BCA. BBEDCA, as amended, requires that the President annually submits to Congress an out-year projection of the current year levels of budgetary resources, outlays, receipts for mandatory programs, government receipts based on current laws; and a projection of the current year levels of budgetary resources, outlays, and receipts into the out years for discretionary programs. This is also referred to as a "current services" estimate.


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(1) The current services base is equal to the current year amount in the most recent appropriations act or full-year Continuing Resolution (CR). It excludes proposed supplementals, but includes the effects of enacted rescissions and transfers. Continuing activities at the base level, adjusted for inflation and the future implications of current law, forms the baseline estimate for the budget year and succeeding years (up to nine years).

(2) Programs that expire under existing law do not carry forward; ones requiring periodic reauthorization continue at current rates, unless there is reason to believe they will not be renewed.

(3) Discretionary offsetting collections and receipts reflect the level of activity

anticipated under current law.

(4) Base amounts for personnel compensation and other objects are increased in the out-years by adding in OMB approved inflation factors. In the President’s Budget, these calculations are done automatically by OMB's MAX system.

(5) If the budget authority for an account is negative in the current year as a result of a rescission, reduction, or transfer of balances, the budget authority for the next budget year and out-years are estimated to be zero.

b. The budget request reflects the impact of policy determinations on the baseline. This includes changes in level of effort, program content or direction, and in substantive law.

c. Outlay estimates result from standard spend-out formulas that are applied to budget authority amounts. The formulas are based on historical spend-out rates from new budget authority and prior-year balances.

d. Comparing a current services estimate with the budget request is one tool that Congress uses to show increases or decreases resulting from policy changes and program initiatives. This type of comparison is often useful when considering internal agency plans and budgets.

36. Basis and coverage of the budget. The following lists general policies and principles on which budgets are based; they are discussed further in OMB Circular No. A-11.

a. Estimates for the current and budget years must reflect all requirements anticipated at the time of proposed program submission including the effect that demographic, economic, and other changes such as advances in technology may have on program levels beyond the budget year.


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(1) When estimates are presented within and above a control target or planning ceiling, the program included within the ceiling is a viable one, although its scope may have been reduced to remain within the target.

(2) If it appears that proposals for new legislation may require a further funding request, or may alter revenues or outlays, a tentative forecast of impact is added to the request.

(3) Amounts of supplemental appropriations needed in the current year for

unforeseen contingencies are separately identified in the budget request. For the President’s Budget, OMB notifies agencies of any supplementals that will be transmitted with the budget.

(4) All known information is included in the agency’s submission to OMB. No

supplementals or upward amendments will be considered unless they are due to unforeseen circumstances or result from later Congressional action.

b. Out-year policy estimates are consistent with assumptions for the budget year, and take into account changes in workload and spending trends, economic assumptions, and other pertinent actions or events. It is necessary to understand the degree to which budget year policy decisions affect the out-years.

c. Internal and external estimates, including out-year projections and baseline estimates, should be consistent with economic assumptions provided by OMB.

(1) All program requirements are priced at approved rates, but allowing

consideration of price changes for goods and services does not necessarily mean that the baseline is increased to accommodate their full effect.

(2) For mandatory programs, estimates reflect the full inflation rate where such an allowance is required by law and there has been no decision to propose less than required. For discretionary programs, estimates may include allowance for the full rate of anticipated inflation, for less than the full rate of inflation, or even no allowance at all.

(3) In some cases, there is a trade-off between budgeting for inflation and

budgeting for programmatic purposes. In the past, the effects of budget year approved pay raises were separately reflected under governmentwide allowances; they are now included in agency estimates.

(4) OMB Circular No. A-11 states that agency requests must be within established planning guidance levels, regardless of the effects of inflation.

d. Estimates are based on the most economical and efficient manner of

accomplishing work; and unit cost information should be developed to permit cost comparison and analysis.


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e. Estimates reflect administration policy to limit perquisites such as the use of government vehicles and aircraft, travel, executive dining facilities, conferences, real property, and fleet management.

f. Full-time equivalent (FTE) employment estimates are consistent with planning ceilings and the Federal Workforce Restructuring Act of 1994 (P.L. 103-226).

g. Estimates reflect efforts and planned actions to strengthen management and improve program performance. This includes the use of performance goals and indicators; information technology planning that directly supports strategic missions; and developing a single, agencywide, integrated financial management system.

h. Budgets reflect a commitment to providing the highest quality service possible to

Federal and non-Federal clients, including gathering the information needed to achieve customer service standards.

i. Identify offsets when proposing administrative actions such as regulations, demonstrations, program notices, guidance, or other actions not required by law that would increase mandatory spending. In addition, include a list of all planned or anticipated administrative actions that would increase mandatory spending.

j. Component requests fully support programs designed to ensure or promote equal opportunity regardless of race, ethnicity, religion, national origin, gender, disability, sexual orientation, or age. This also includes efforts to increase Federal contracting and subcontracting opportunities for women, minorities, and otherwise disadvantaged entrepreneurs.

k. Consideration is given to requesting multi-year appropriations for building, equipment, and other types of fixed capital assets that have long acquisition cycles, including major Automated Data Processing and telecommunications systems. The period of availability should match the expected length of the acquisition cycle.

l. Requests for procurement programs provide for full funding of the entire cost. Requests for major construction programs also provide for full financing of the complete cost of construction. The Antideficiency Act (31 U.S.C. § 1341) requires that sufficient budgetary resources are available to cover the full amount of unconditional obligations under any contract.

m. Agencies are required to submit certain types of leases and other unique, non-routine financing proposals to OMB for review of the budget scoring impact.

n. Agencies reflect the results of the committee reviews required by Executive Order (E.O.) 12838, which requires agencies to reduce the number and cost of non-statutory advisory committees; use the ceilings established by OMB Circular A-135 Management of Federal Advisory Committees; and separately identify the costs of advisory committees established by statute that are being proposed for termination.


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o. The value of radio spectrum required for telecommunications, radars, and related systems should be considered, to the extent practical, in economic analyses of alternative systems/solutions.

p. For agencies that are affected by the reallocation of certain frequencies from Federal to private sector use, the Commercial Spectrum Enhancement Act (P.L. 108–494 as amended by P.L. 112-96) streamlines the process for funding the relocation or modification of systems.

q. As required by E.O. 13532, affected agencies and executive departments must produce an annual plan that establishes clear goals for how the agency or department intends to increase the capacity of Historically Black Colleges and Universities to effectively compete for grants and contracts and to encourage Historically Black Colleges and Universities to participate in Federal programs.

37. Personnel compensation and benefits and related costs. Budgetary treatment of estimates for personnel compensation and related costs are based on principles defined in OMB Circular No. A-11.

a. Estimates for staffing assume that improvements in skills, organization, procedure, and supervision will steadily increase productivity, and allow for meeting new program requirements wholly or in part by simply reassigning existing personnel. Reductions are planned whenever the workload is stable.

b. Unless directed otherwise, personnel requirements are stated as FTEs. An FTE is the total number of hours worked or to be worked in a fiscal year, divided by the number of compensable hours applicable to each fiscal year. See OMB Circular No. A-11, “Section 85: Estimating Employment Levels and the Employment Summary” for the exact calculation of FTEs per year.

c. Compensation estimates are based on the total number of regularly scheduled straight-time hours worked or to be worked during a fiscal year. Under Section 15203(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (P.L. 99-272), hourly rates of compensation are determined by dividing the annual rate of basic pay by 2,087 and multiplying the result by the total hours worked/to be worked in a fiscal year.

d. Estimates are based on compensation scales in effect at the time of budget submission, adjusted for any current year pay raise as reflected in the Mid-Session Review (MSR) of economic assumptions (or as otherwise advised by OMB). The effects of locality pay are included.

e. Increases over amounts for the preceding year for premium pay are fully justified, and estimates for overtime are carefully reviewed to make sure it is used in a prudent and efficient manner. Components analyze overtime use, explore all alternatives, and make sure that adequate procedures are in place to avoid abuses.


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f. Calculations do not assume upward reclassification of positions, except when a pre-determined plan for grade adjustments has been approved by the Office of Personnel Management (OPM) and the need for funds has been established. Positions above GS/GM 15 are reflected only to the extent that they have been authorized by the OPM or in substantive law.

g. Increases for within-grade salary advancements are consistent with recent experience and take account of step-reducing actions; the net cost is expected to be offset by greater productivity and efficiency.

h. Estimates for filling vacancies in the budget year use entrance salary rates for

the positions. i. Increases in average compensation for the budget year, except from changes in

pay scales, must be explicitly justified.

j. Estimates consider any savings in compensation due to personnel reductions, delays in filling vacant positions, filling vacancies at lower rates of pay, leave without pay, part-time employment, and grade reduction actions. Terminal leave payments offset these savings.

k. Severance pay estimates for a fiscal year reflect obligations on a pay-period-by-

pay-period basis, even though liability arises at the time of employee separation.

l. The budget includes amounts for cash incentive awards. OMB Circular No. A-11 requires information on the number and percent of employees receiving awards, total expenditures, and average award amount; broken out separately for each category of special act or service awards, Senior Executive Service (SES) rank and performance awards, non-SES performance awards, and all other awards.

m. Reasonable amounts are budgeted for executive selection and development programs, as required under Title IV of the Civil Service Reform Act of 1978 and implementing guidelines from OPM.

n. Estimates reflect approved agency plans for paying recruitment and relocation bonuses as well as retention allowances.

o. Estimates for employee benefits reflect the employers’ share of contributions to Federal retirement systems (Civil Service Retirement System and the Federal Employees Retirement System), health plans, and insurance. The estimates should reflect 1) Changes to the agency contribution rates for employee retirement and of civilian and military pay raises using the pay raise assumptions specified in the MSR; and 2) increased employee Federal Employees Retirement System Revised Annuity Employee contributions for employees hired after December 30, 2012 with less than five years of prior creditable service, and reduced employer contributions for such employees, under the Middle Class Tax Relief and Job Creation Act of 2012.


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p. Reflect special rates for experts and consultants only to the extent that they are

authorized per 5 U.S.C. § 3109.

q. Reflect estimates for approved plans to pay physician comparability allowance under 5 U.S.C. § 5948. 38. Policies for selected other objects of expenditure. OMB Circular No. A-11 states policies for other selected types of effort.

a. As appropriate, budget estimates should reflect the full cost recovery policy for user fees set forth in OMB Circular No. A-25 “User Charges”. Under it, user fees should recover the full cost of providing goods or services to the public.

b. Proposals for acquisition of major systems, including information technology, must be consistent with the requirements of Title V of the Federal Acquisition Streamlining Act of 1994 and the Information Technology Management Reform Act of 1996. Where appropriate, projects should be as narrow in scope and as brief in duration as practicable to reduce risk, promote flexibility and interoperability, increase accountability, and better match mission needs with current technology and market conditions.

c. For accounts subject to appropriation action, budget year estimates should include the amount billed by the Department of Labor (DOL) for benefits paid to GSA employees in the past year under the Federal Employee Compensation Act (i.e., benefits for job-related injury or disability). For accounts not subject to appropriation action, agencies pay the bill during the current year.

d. Congress has implied that unemployment compensation for former Federal personnel is paid from appropriations available to the employing agencies. Estimates for the current and budget years should not include amounts for reimbursing the Unemployment Trust Fund. Reimbursements are to be absorbed as they are paid, and are reflected in the prior-year actual column.

e. Interagency groups (including boards, councils, committees, etc.) are financed

by direct appropriations rather than by contributions from member agencies unless these groups have received prior and specific Congressional approval, or when approval has been requested in appropriations language.

f. Estimates for the official use of United States mail, package delivery, and private

carrier service should be sufficient to pay the full cost of postage due, be consistent with Postal Service regulations, include vendor requirements, and reflect GSA governmentwide mail management instructions.

g. Estimates should not include any new expenditures or financial assistance prohibited by the Coastal Barrier Resources Act (P.L. 97-348).


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h. Estimates for the design, construction, management, operation, and

maintenance of remedial environmental projects at Federal facilities must follow policies outlined in E.O. 12088.

i. Reflect travel allowances authorized under the Federal Travel Regulations issued by GSA or comparable regulations issued by the Department of Defense (DOD) and by the Department of State, as applicable.

j. Leases of capital assets need to be justified as preferable to direct government

purchase and ownership in accordance with OMB Circular No. A-94 “Guidelines and Discount Rates for Benefit-Cost Analysis of Federal Programs”. Lease purchases and capital leases are scored upfront, in accordance with rules developed under the BEA. Appendices to OMB Circular No. A-11 discuss capital programs and scoring rules.

k. Do not assume agency prescription drug costs for the agency's retirees and/or dependents will be reduced by the Medicare Part D program. Federal entities will not receive subsidies for Part D eligible individuals for qualified prescription drug coverage.

l. Ensure that electronic and information technology acquisitions meet the requirements of Section 508 of the Rehabilitation Act of 1973 and allow individuals with disabilities access to and use of data.

39. Budget structure.

a. Budgets are presented, justified, and enacted by account. Accounts reflect the way that programs are financed (see Chapter 1, Part 3, Paragraph 10).

b. Requirements for closely related programs with a common purpose and type of financing are budgeted under a single appropriation or fund account, unless circumstances warrant separate identity. In some cases, authorizing statutes identify the types of costs chargeable to an account.

c. Unrelated activities or those with different financing sources are usually not combined.

(1) For example, several activities supporting the administration of an

organization may be included under a single operating expenses appropriation, while business-type operations for delivery of goods and services are under a revolving fund.

(2) Generally, programs in different function/subfunctions (see Chapter 2, Part 4, Paragraph 17) are not combined in one account.

d. The same budget structuring principles apply for both activities and subactivities, the primary levels at which individual kinds of work are accomplished. Similar programs


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are combined in budget activities, and further justified or controlled through subprograms or subactivities.

e. Advance OMB approval is required for changes in budget structure. These may be needed to reflect organizational or program realignments, transfers of functional responsibilities, changes in substantive law, or new programs.

(1) Proposed new accounts, changes in titles, changes in the sequence of existing accounts, and new methods of financing programs are to be submitted for OMB approval by October 1, unless OMB specifies an earlier date.

(2) If changes result from circumstances beyond agency control (such as late

Congressional action), they are submitted for OMB approval as soon as possible.

(3) OMB Circular No. A-11 requires that, when prospective internal reorganizations are likely to require budget structure changes, OMB approval for the revised structure needs to be obtained before implementing the reorganization. Budget materials will continue to reflect the existing structure until approved changes are incorporated into later budget schedules.

(4) Changes in the assignment of function or subfunction character classification codes or changes in activity/subactivity structure for program and financing schedules must be requested before the final OMB submission.

(5) Proposed changes in appropriations language should accompany the budget submission to OMB.

f. Proposed changes to decision units (program, activity, or organizational levels), decision packages, budget justification format, and budget exhibits should be discussed in advance with OMB. PART 9: THE FEDERAL PERFORMANCE FRAMEWORK (See OMB Circular No. A-11, Part 6, Section 200: “Overview of the Federal Performance Framework”). 40. General purpose. The Government Performance and Results Act (GPRA) (P.L. 103-62), established a new procedure for developing and justifying budgets in terms of the results or outcomes to be achieved. It is referred to as GPRA or "the Results Act." GPRA was updated by the GPRA Modernization Act of 2010 (GPRAMA) (P.L. 111-352) which requires agencies to set long-term goals and objectives as well as specific near-term performance goals. It heightened emphasis on priority-setting, cross-organizational collaboration to achieve shared goals, and the use and analysis of goals and measurement to improve outcomes. It also enhanced the usefulness of performance and program information by modernizing public reporting which is being phased-in.


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Strategic Plans (SPs), Annual Performance Plans (APPs), and Annual Performance Reports (APRs) are the main elements of the GPRA and GPRAMA. Together, these elements create a recurring cycle of planning, execution, and reporting. 41. Definitions. The following are key terms in GPRA and GPRAMA, as defined in OMB Circular No. A-11.

a. Outcome goal: Intended results, effects, or consequence that will occur from executing a program or activity.

b. Output goal: The level of activity or effort that must be produced or provided over

a period of time or by a specified date. This includes the characteristics and attributes (e.g., timelines) established as standard in the course of producing the activity or effort.

c. Performance indicator: A value or characteristic used to measure the output or outcome associated with a performance goal.

d. Performance measure: A performance goal or indicator.

e. Program evaluation: An assessment of the manner and extent to which Federal programs achieve intended objectives.

42. Performance reports.

a. A Strategic Plan (SP) must be developed with long-term goals and objectives every 4 years, Agency Priority Goals (APGs) every two years, and performance goals at least annually.

b. Agencies may make adjustments to their SP in advance of the four-year revision cycle. Agencies are encouraged to consider changes to their strategic goals and objectives as part of the strategic reviews. Revisions may occur based on external events, changes in legislation, changes in strategy, or other factors.

c. A Strategic Plan presents the long-term objectives that an agency sets at the beginning of each new term of an administration. It describes general and longer-term goals the agency aims to achieve, what actions the agency will take to realize those goals and how the agency will deal with the challenges likely to be barriers to achieving the desired result. It should provide the context for decisions about performance goals, priorities, and budget planning, and should provide the framework for the detail provided in agency annual plans and reports.

d. The Annual Performance Report provides information on the agency's progress achieving the goals and objectives described in the agency’s SP and APP, including progress on strategic objectives, performance goals and APGs. This APR is the same as the performance section of the Performance and Accountability Report (PAR)


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published by agencies in November or the APR that is published by agencies in February. Agencies have the flexibility to publish the APR on the agency’s website either as a PAR in November or with the Congressional Budget Justification in February. GSA usually publishes its APR with the Congressional Budget Justification.

e. Annual Performance Plans include the strategic goals to frame the discussion of

plans related to the strategic objectives, performance goals, APGs and other indicators. To meet the annual performance plan and report requirements, many large agencies will publish an APP/APR using existing practices. Agencies are encouraged to publish a combined APP/APR that is organized by strategic objective to facilitate meeting Performance.gov requirements and to support strategic reviews. GSA publishes a combined APP/APR.

f. See OMB Circular No. A-11 for a detailed description of a strategic plan and other performance reports’ main elements, formats, and submission procedures.

g. Detailed content that agencies must address in agency SPs, APPs, APRs and Quarterly Performance Updates (QPU) include the following captions followed by the reports (See OMB Circular No. A-11 for further and complete description and detail of each section of the performance reports).

(1) Agency and Mission Information - SP/APP/APR. (2) Cross-Agency Priority Goals - SP/APP/QPU. (3) Strategic Goals - SP/APP/APR. (4) Strategic Objectives - SP/APP/APR. (5) Agency Priority Goals - SP/APP/APR/QPU. (6) Performance Goals - SP/APP/APR. (7) Other Indicators - APP/APR. (8) Other Information (evaluations, hyperlinks, data quality, etc.) - SP/

APP/APR.

h. In developing strategic plans and other performance reports, agencies consult with OMB, Congress, and, to a lesser extent, other stakeholders.

i. SPs are public record, and are made available—via the internet—when the plan

is transmitted to Congress.


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PART 10: PERFORMANCE MANAGEMENT PROCESS 43. General purpose. The performance management process (strategic planning, budget, and performance management cycle) is an iterative, on-going process intended to facilitate sound business and financial analysis. The Performance Management process uses goals, measurement, evaluation, analysis, and data-driven reviews to improve results of programs and the effectiveness and efficiency of agency operations. Performance management activities often consist of planning, goal setting, measuring, analyzing, reviewing, identifying performance improvement actions, reporting, implementing, and evaluating. The primary purpose of performance management is to improve performance and then to find lower cost ways to deliver effective programs. 44. Process. Planning, or lack of planning, impacts overall performance results. As important as it is to sustain a strong performance culture through agency practices, it is equally important to have reliable and effective processes that can support continuous improvement, promote standardization, and create opportunities for capacity building. The description below gives an overview of the Federal Performance Management Cycle.

a. Starting with the strategic goals and objectives in the SP, agencies establish an annual process to set and monitor performance goals and APGs.

b. Agencies use quarterly data-driven reviews to focus on targeted, short-term progress, and use strategic reviews to assess progress toward longer-term objectives.

c. Finally, agencies summarize the full year’s past performance in their APRs. These communicate publicly to external stakeholders about progress and help inform the development of the next SP or APP.


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CHAPTER 3: BUDGET EXECUTION PART 1: OVERVIEW 1. General purpose. Budget execution is the phase of the budget cycle when resources are applied to accomplish programs. This part discusses the execution process and how responsibilities for it are delegated within GSA.

a. Parts 2 through 6 describe the procedures for allocating and administering available resources in accordance with legal requirements.

b. Parts 7 and 8 discuss what happens when Congress enacts temporary

authorities, or fails to act at all, before the start of a fiscal year. c. Parts 9 through 15 deal with specific aspects of budget execution.

2. The process.

a. Budget execution occurs between the start of a fiscal year on October 1 and the following September 30, but the planning and evaluation stages can take 16 months or longer.

b. There is a planning stage before the fiscal year begins to develop initial resource allocations and operating guidelines for program execution. Final accounting certification, closeout, and performance appraisals occur after the end of the fiscal year.

3. GSA execution planning. The first step in GSA budget execution is planning for the most effective and equitable distribution of anticipated resources. This part of the budget cycle involves regional participation.

a. In late summer, the Office of Budget issues an agencywide call to prepare and

submit allowance requests for the coming year.

(1) The call provides policy guidance, economic assumptions, procedures, technical instructions, and formats for submission. It can include appendices with specific instructions for each major program area, and can include resource targets that tentatively distribute projected availability. Services and Staff Offices (SSOs) may separately issue more detailed instructions.

(2) In many cases, regional participation is on an exception basis. Responsible SSOs propose tentative levels for initial allowances. If the region accepts, the allowance is prepared and issued.


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(3) If the proposed amount is not agreeable, a region can propose an adjustment. Usually, an additional justification is submitted, showing workload, performance, or other data.

b. The Chief Financial Officer (CFO) issues allowances and provides copies to the

Office of Budget. The target for completing initial allowances is in mid-to-late-November, assuming appropriations or other full-year authorities have been enacted by that time. Allowances are discussed in Chapter 3, Part 5. 4. Program execution.

a. Because the external steps that make resources available to GSA are not always complete by October 1, program execution may begin under an interim authority to incur obligations.

(1) Interim authority is usually provided in a memorandum from the CFO that describes the kind and level of obligations that can be made, and includes conditions and/or limitations on program performance. Source allocations may be adjusted as well.

(2) Interim authority is used when annual availability has not yet been established, such as under short-term continuing resolutions. Memorandum authorities are in force until superseded by regular allowances.

b. Once allowances are issued, resources are distributed by organization or sub-activity based on operating budget plans (see Chapter 3, Part 6).

c. Resource allocations are adjusted when necessary.

(1) Unless limitations have been established, allowance holders can redistribute approved allowance amounts among operating budget plans.

(2) Allowance holders advise the OCFO whenever they determine that a portion of approved resources is not required. If appropriate, the excess funds will be withdrawn for redistribution to other units.

(3) Adjustments that would result in a net increase to quarterly or total authorities cannot be made until a revised allowance has been submitted and approved by the OCFO.

d. All financial actions are subject to GSA’s system for the administrative control of funds (see Chapter 3, Part 3).

5. Final checkout and certification. After a fiscal year is completed, it is necessary to ensure that all financial transactions are reflected in accounting reports; all reported obligations are legitimate and in correct amounts; and that availability, including income


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from other sources, has been correctly recorded. The final status for each account is certified in the year-end “Report on Budget Execution and Budgetary Resources” (SF 133), prepared by the Office of Finance (see Chapter 3, Part 4, Paragraph 31). 6. Authority and responsibilities. The Administrator of the GSA has authority over the content, method, and priority of accomplishing programs, and is responsible for complying with legal financial requirements. Authorities and responsibilities are delegated to subordinate GSA officials as discussed below. Specific responsibilities and authorities under GSA's system for the administrative control of funds are in Chapter 3, Part 3.

a. The Chief Financial Officers Act of 1990 (P.L. 101-576), 31 U.S.C. § 902, and other applicable authorities (including 31 U.S.C. subtitles II, III, and IV) assign to the CFO all financial authority and responsibility that pertain to allocation and control of resources. Through the Directors of Budget, Finance, and Financial Management Systems, the CFO and the Office of the CFO (OCFO):

(1) Directs and coordinates resource allocation within GSA. (2) Approves and issues allotments and allowances. (3) Establishes and maintains an OMB-approved system for administrative

control over obligation and expenditure of funds. (4) Formulates agency policy on budgeting, accounting, and financial

management systems. (5) Plans, directs, and coordinates financial reporting and accounting for GSA in

conformity with accepted Government Accountability Office (GAO), OMB, and Treasury accounting principles.

(6) Provides technical counsel and assistance to operating officials on budgetary

and accounting matters. (7) Coordinates the agency's financial programs with OMB, other Federal

agencies, and Congress. (8) Prepares apportionment/reapportionment requests for OMB approval. (9) Approves financial status reports for external authorities. (10) Certifies that obligations are valid. (11) Reviews and analyzes financial performance and its relationship to

approved allowances and operating budgets.


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(12) Takes appropriate action when over-obligation may have occurred, when there is excessive deviation from approved financial plans, or when there are unplanned profits or losses under revolving funds.

(13) Establishes and/or maintains an agencywide financial management system. (14) Reviews financial reports to evaluate performance and recommend

appropriate adjustments. (15) Ensures that operations under revolving and management funds are

conducted legally and efficiently, and that the funds remain financially solvent.

b. GSA’s core financial data system is called Pegasys. Pegasys is fully compliant with the Federal Managers’ Financial Integrity Act; and also satisfies Standard General Ledger requirements at the transaction level (see Chapter 3, Part 3, Paragraph 24).

c. The Heads of Services and Staff Offices (HSSOs):

(1) Follow policy guidance for assigned programs and functions, including program priority orders to be accomplished within available resources.

(2) Review proposed allowances, operating budget plans, or other resource requests or recommend the most effective allocation of resources.

(3) Develop and maintain performance measurement systems.

(4) Develop statistics on workload and cost to support financial requests.

d. Regional Administrators and HSSOs, through their OCFO support staff, are responsible for executing programs within GSA’s system for the administrative control of funds. They:

(1) Recommend the level of resources needed to execute programs.

(2) Distribute approved resources among subsidiary programs.

(3) Recommend redistribution of resources when circumstances change.

(4) Negotiate reimbursable agreements with other agencies or negotiate transfers of budget authority with other GSA components.

(5) Ensure that operations and activities are compatible with statutes,

regulations, and other instructions.


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PART 2: FUNDING AUTHORITIES AND LIMITATIONS 7. General purpose. GSA programs are supported by different types of financing: appropriations, customer reimbursements, payment for goods and services, income from rental charges, and revenues from sales. Some require Congressional action before funds become available, while others become automatically available under permanent law. This part describes the different types of funding authorities and limitations; Chapter 4 discusses how they apply to each GSA account. 8. Appropriations acts. Appropriations acts provide authority to incur obligations that will result in outlays of government funds for specified purposes, and may contain provisions that affect use of the funds and the way programs are executed.

a. Amounts in appropriations acts establish firm limitations on the level of obligations that may be incurred, and are not to be exceeded (31 U.S.C. § 1341). They are available for either specified time periods (usually one or more years), or indefinitely.

b. Although amounts are usually in the form of a new budget authority (e.g., appropriations), there may be limitations on the use of funds that otherwise would be available to an agency without restriction or Congressional action.

(1) For example, Congress annually enacts New Obligational Authority (NOA) for the Federal Building Fund (FBF) broken down by budget activity and individual project. This authority limits to the use of revenue (rental income) that would otherwise be automatically available under law.

(2) When an account like the FBF depends on appropriations action to provide spending authority, it is also subject to other provisions in the act, and to situations that affect the act as a whole (such as a lapse in appropriations; see Chapter 3, Part 8).

c. Appropriation language specifies the reasons for which a funding authority was

established. It is illegal to use such funds for other purposes, or to augment funding from other sources, without authorization from the law (31 U.S.C. § 1301).

d. Appropriation language may contain other legal restrictions. For example, it may specify that neither less than nor more than a stated amount may be used for a specific, stated purpose (a statutory "floor" or "ceiling").

e. Appropriations acts may have general provisions that apply to GSA or to the entire act. They may contain statutory restrictions or direction; e.g., "Of the above amounts, none..." or "No part of any appropriation contained in this Act shall be available for..."

9. Permanent authorities. Some funds do not need Congressional action to make them available.


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a. Permanent appropriations automatically become available each year. These funds are usually indefinite, and are determined via a relationship to some other event or circumstance (such as an authority to spend a percentage of annual income).

b. Revolving fund operations and reimbursable activities are also permanently

authorized. While Congressional action is usually needed to provide funds to the customer, no further action is needed to allow GSA to spend in the amount and manner requested by customers.

c. The Congress sometimes modifies permanent authorities by adding provisions in appropriations or other acts that change or limit amounts otherwise available. However, unless the change is permanent, it only applies during the effective period of the act in which it was included.

10. Limitations on the use of funds.

a. No matter how funds become available, there are laws and regulations that ensure that spending does not exceed funding availability. Requirements for the allocation and control of funds are discussed in Chapter 3, Part 3.

b. The use of funds must comply with all limitations and/or provisions included in appropriation acts.

c. Other considerations include Congressional suggestions, guidance, direction, or expressed interest in hearings, committee reports, and floor debates, and by OMB policy or program guidance during budget formulation (e.g., in the "passback"). While not legally binding, the intentions of those who control budget resources warrant proper attention and consideration.

11. Reprogramming. “Reprogramming” means moving funds between programs or accounts in a manner that differs from when they were originally approved or enacted. This may require a legal authority or a formal notification to, or the prior approval of, Congressional committees.

a. Each amount in an appropriations act is a separate legal entity, and funds cannot be moved among them unless authorized by law. When an appropriations act provides for the movement of sums after enactment, it is called transfer authority.

(1) Transfer authorities are used when funding requirements cannot be met any other way, except by requesting supplemental funding. While transfer authorities eliminate the need for further legislation by Congress, notification to or the prior approval of Congressional Appropriations Committees may be required.

(2) Terms vary: occasionally, transfer authority applies to a specific purpose or situation, and any related amount may be transferred. Most often it allows for the


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movement of funds up to a certain limit, either by dollar amount or a percentage of availability.

(3) Transfer authority may apply to account increases, or it can limit the amount

that accounts can be decreased. (4) All transfers cumulatively count against the limitation, which does not

change; i.e., the authority can be used up by a single large action or a number of smaller ones.

b. To assist in their oversight responsibilities, Congressional committees may

restrict the movement of funds between programs, projects or activities within an account. Reports that accompany appropriation bills will indicate the limits for reprogramming, and whether prior committee notification or approval is needed. Report language is not legally binding, unless also in the act, but it is highly recommended for consideration.

c. Moving funds among activities, or accounts accompanying the transfer of funds or responsibilities, is not considered reprogramming. The Administrator is authorized by permanent law to transfer GSA functions and funds for purposes of efficiency or economy.

12. Agency reprogramming procedures. The following GSA-specific policies apply to all proposed changes in the use of funds:

a. The CFO, through the Office of Budget, advises all GSA units on enacted amounts and on any limitations on the use of funds in appropriations acts or OMB apportionments. The Office of Budget also highlights any areas of expressed interest or intent that might condition the use of funds.

b. The Office of Budget normally prepares reprogramming requests and associated documentation. Proposals to move funds between appropriations, to the limits of an apportionment, or to areas of expressed interest, must be coordinated with the Office of Budget.

c. The Office of Budget must be consulted before making any major changes in the program or resource alignment shown in Congressional justification materials. They will advise units if notification or approval by external authorities is required.

13. Procedures for the control of expired and closed appropriations. An annual appropriation retains its identity and resources for five years after the year in which it is executed, after which it is closed and balances are returned to the Treasury. Any valid obligation adjustment occurring after an account has been closed is deducted from current year resources, subject to certain limits. Procedures have been established to ensure that obligation adjustments do not exceed balances under expired accounts, and


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to ensure that obligations for claims against closed accounts do not exceed legal limitations.

a. Until an appropriation account is closed, obligation adjustments against expired accounts are charged to the fiscal year of the original obligation. Exceeding the available unobligated balance in any year is a violation of law. Therefore, it is important that open items are continually reviewed to ensure that obligated balances are still required, and that any unrequired balances are deobligated.

b. 31 U.S.C. § 1552 states that on September 30 of the fifth fiscal year after the period of availability of a fixed appropriation, it is closed, and any remaining balance, obligated or unobligated, is canceled and becomes completely unavailable afterwards.

c. After an account is closed, obligations that would have been chargeable to that account may be paid from any current appropriation account available for the same purpose. However, such obligations must be less than or equal to 1% of the total current appropriation (31 U.S.C. § 1553).

d. Every year, the CFO establishes a maximum 1% limitation on each appropriation for the payment of claims against closed accounts. This limitation is included on the allotment and on the Central Office’s (C.O.) allowance for the account.

(1) This limitation does not restrict funds to this purpose; it simply means that

any cumulative amount that does not exceed the limitation may be used for obligations against closed accounts.

(2) OMB Circular No. A-11 provides that up to 1% of the current appropriation amount may be separately apportioned in anticipation of claims against closed accounts. If this is done, then the amount apportioned would be available only for this purpose, and cannot be spent elsewhere.

e. Obligations cannot be reestablished until a payment is made. If it is determined

that payment will be delayed, then the obligation is canceled. Payments are only withheld if there is any chance of exceeding the 1% limitation.

f. Before a payment is made, the C.O. must certify the availability of funds.

(1) OFCO budget analysts representing various GSA regional offices transmit a copy of the relevant invoice/bill and a certification form to the appropriate C.O. budget analyst.

(2) Budget analysts verify the accounting classification codes and the purchase

number.


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(3) Notification of the required action is returned to the appropriate financial analysts. OCFO reviews cumulative obligations to ensure that they do not exceed the current-year 1% limitation. Exceeding this limitation violates Antideficiency statutes.

g. These procedures only apply to annual appropriated accounts, and do not affect

revolving funds, including the FBF, or no-year appropriations and funds. Under 31 U.S.C. § 1555, any appropriation available for obligation for an indefinite period may be closed, and any balances permanently canceled, if:

(1) The Administrator or the President determines that the purposes for which

the appropriation was made have been carried out.

(2) No disbursement has been made against the appropriation for two consecutive fiscal years. PART 3: ADMINISTRATIVE CONTROL OF FUNDS 14. General purpose and background.

a. The Antideficiency Act, § 3679 of the Revised Statutes (amended), is the basic law governing the use of funds. Its provisions are in 31 U.S.C., § 1341-1342, § 1349-1351, and § 1511-1519; excerpts include:

(1) "An officer or employee of the United States Government...may not--(A)

make or authorize an expenditure or obligation exceeding an amount available in an appropriation or fund for the expenditure or obligation; or (B) involve...(the) government in a contract or obligation for the payment of money before an appropriation is made unless authorized by law." (§ 1341(a)(1)).

(2) "An officer or employee of the United States Government...may not accept voluntary services...or employ personal services exceeding that authorized by law except for emergencies involving the safety of human life or the protection of property.... As used in this section, the term 'emergencies involving the safety of human life or the protection of property' does not include ongoing, regular functions of government the suspension of which would not imminently threaten the safety of human life or the protection of property." (§ 1342).

(3) "Except as provided in this subchapter, an appropriation available for obligation for a definite period shall be apportioned to prevent obligation or expenditure at a rate that would indicate a necessity for a deficiency or supplemental appropriation for the period. An appropriation for an indefinite period and authority to make obligations by contract before appropriations shall be apportioned to achieve the most effective and economical use." (§ 1512(a)).


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(4) "...(S)ubject to the approval of the President, the head of each executive agency...shall prescribe by regulation a system of administrative control not inconsistent with accounting procedures prescribed under law. The system shall be designed to--(1) restrict obligations or expenditures from each appropriation to the amount of apportionments or reapportionments of the appropriation; and (2) enable the official or the head of the executive agency to fix responsibility for an obligation or expenditure exceeding an apportionment or reapportionment." (§1514(a)).

(5) "An officer or employee of the United States Government...may not make or

authorize an expenditure or obligation exceeding--(1) an apportionment; or (2) the amount permitted by regulations prescribed under section 1514(a) of this title." (§ 1517(a)).

(6) "An officer or employee of the United States Government... violating section

1517(a)...shall be subject to appropriate administrative discipline including, when circumstances warrant, suspension from duty without pay or removal from office. An officer or employee...knowingly and willfully violating section 1517(a)...shall be fined not more than $5,000, imprisoned for not more than 2 years, or both." (§ 1518-1519; also see § 1349(a) and 1350).

b. Furthermore, 31 U.S.C. § 1101, § 1104-1108, and § 3324 define the authority

and responsibilities of the President in preparing and executing the budget of the U.S. government.

c. Section 1501 of the same title sets requirements for documentary evidence of government obligations. Meanwhile, § 1502 establishes that the balance of any appropriation or fund limited to a definite period is only available for the payment of expenses incurred during that period of availability, or to complete contracts made within the period of availability and obligated consistently with § 1501.

d. 31 U.S.C. § 3511-3512 addresses accounting requirements, systems, and information management. These sections state that the head of each agency must establish internal accounting and administrative controls that can ensure that:

(1) Obligations and costs comply with applicable law.

(2) All assets are safeguarded against waste, loss, unauthorized use, and misappropriation.

(3) Revenues and expenditures applicable to agency operations are recorded

and accounted for properly.

e. The Impoundment Control Act (Title X of P.L. 93-344, 2 U.S.C. § 681-688) establishes legal requirements governing proposed impoundments or rescissions of enacted resources.


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f. OMB has implemented these and other provisions of law through OMB Circular No. A-11. See their instructions on preparation, submission and execution of the budget and related guidelines.

g. Per the direction in these authorities, the Administrator of GSA has established, and the Director of OMB has approved, a system of administrative controls to ensure that obligations or expenditures do not exceed the funds legally available, and to assign responsibility should violations occur.

15. Resource allocations. The GSA’s system for administrative control involves issuing allotments under apportionments, and allowances under allotments, to provide the authority to make obligations. The following lists the various levels of funds control, from the highest to the lowest:

a. Apportionment. Apportionments limit amounts available for obligation in an appropriation or fund account by time periods, activities, projects, objects or any combination thereof. The GSA’s OCFO prepares apportionment requests for GSA funds, and submits them to OMB for approval.

b. Allotment. An allotment appoints a named individual—sometimes called the “allottees”, but more commonly known as the “allotment holder”—with the authority to obligate apportioned funds, and the legal responsibility for their administration and control. Because OMB Circular No. A-11 states that responsibilities for allotment and internal reporting be placed at the highest practical organizational level consistent with effective and efficient management, only the Office of Budget may issue allotments.

c. Allowances. The allotment holder issues allowances to a named official—sometimes called the “allowees”, but more commonly known as the “allowance holder”—usually a Budget Office analyst, and convey responsibility for the administrative control of funds. Allowances may not exceed the cumulative quarterly or other authorities in the allotment, and the allotment may contain other restrictions on the use of resources. Allowances may be issued by the GSA’s OCFO to accounts that are not directly receiving apportionments or allotments to establish resource limitations.

d. Operating budget plans. Allowances result in operating budget plans that subdivide amounts by functional or organizational level and/or by major object of expenditure. These plans are for management purposes, and keep the allowance holder informed of who is responsible for work, what is to be performed, and what resources are available for it. Although the plans are technically not part of the GSA’s administrative control system (issuing them does not relieve the allowance holder of fund control responsibility) plans are closely monitored for deviations that could result in exceeding an allowance.

e. All GSA funds are subject to administrative control procedures. The GSA CFO may determine that certain non-apportioned revolving or other funds do not require


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formal allowance control, and may prescribe other procedures to ensure the integrity of financial operations and that obligations do not exceed available budgetary resources. 16. Including estimated resources on allotments and allowances. OMB’s system of apportionment, and GSA’s system of allotments and allowances, allow for the inclusion of estimated amounts of authority for anticipated reimbursements, recoveries, indefinite appropriations that do not require further Congressional action, and other income. Including these estimates, however, does not authorize obligations or expenditures in excess of resources available at the time the obligation or expenditure is made.

a. For reimbursable work, resources available for obligation equal the sum of earned reimbursements and unfilled customers' orders. This is the total dollar amount of orders received from within the Federal Government that represent valid obligations of the ordering account, and orders received from the public, including state and local governments, to the extent they are accompanied by an advance.

b. Amounts on apportionments for unrealized reimbursements or other anticipated

receipts are allotted or allowed once there is reasonable assurance that the amounts will be collected and deposited into the proper appropriation or fund.

c. Reimbursable effort is constantly monitored to ensure that obligations and

expenditures do not exceed the lesser of amounts allowed or available resources. Allowance holders must immediately inform the allotment holders of changes in anticipated reimbursements or other receipts. Allowances are adjusted and, if necessary, the GSA CFO requests reapportionment from OMB.

17. Special circumstances. Funds may be apportioned, allotted, or allowed under special circumstances or conditions:

a. On a deficiency basis (i.e., on a basis that assumes the need for supplemental funding at a later date) the approval of a deficiency apportionment by OMB does not authorize the use of any amounts not yet provided. Congress must be notified that current appropriated funds are being obligated at a faster rate than previously anticipated; however, there is no guarantee that Congress will approve any associated supplemental request.

b. Budgetary resources may be reduced by deferrals or rescissions. Amounts proposed for withholding are reflected on apportionments, allotments, and allowances, and are reported to Congress in special messages and reports.

18. Control of obligations and expenditures.

a. Under 31 U.S.C. § 1501(a) and OMB Circular No. A-11, an obligation is recorded only when there is documentary evidence of:


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(1) A written binding agreement for a purpose authorized by law, executed within the period that funds are available for obligation, for goods to be delivered, real property to be purchased or leased, or services to be performed. In Matter of: National Institute of Standards and Technology–Use of Electronic Data Interchange Technology to Create Valid Obligations, B-245714, 71 Comp. Gen. 109 (1991), the GAO stated that, for purposes of 31 U.S.C. § 1501, the definition of “writing” includes any reproduction of visual symbols via photography, multi-graphing, carbon copy, mimeograph, or otherwise. This means that Federal agencies may use electronic data interchange technologies, such as message authentication codes and digital signatures, to create valid contractual obligations that can be recorded as consistent with 31 U.S.C. § 1501(a).

(2) A loan agreement showing the amount and terms of repayment. (3) An order, required by law, to be placed with another government agency. (4) A voluntary order with another government agency. (5) An order issued under a law authorizing purchasing without advertising

when necessary because of a public exigency, for perishable subsistence supplies, or within specific monetary limits (small purchases).

(6) A grant or subsidy payable from appropriations made to contribute to

amounts that are paid in specific sums or under prescribed formulas, either by law, under an agreement authorized by law, or under plans consistent with legal authorities.

(7) A liability that may result from pending litigation. (8) Employment or services of persons, or travel expenses under laws. (9) Services provided by public utilities. (10) Other legal liability of the government against an available appropriation or

fund.

b. Obligations and expenditures from each appropriation or fund account are restricted to the lowest available appropriation made by OMB or to the amount available for obligation and/or expenditure in the appropriation or fund account.

c. An obligation for reimbursable work is not made until a written agreement is executed between the performing GSA component and the requesting Federal or GSA unit. Work may not start before then.

d. The balance of an appropriation or fund for obligation is limited to a definite period of availability for payment of expenses, or to complete contracts properly made.


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Any appropriation or fund is unavailable for expenditure beyond this period (see 31 U.S.C. § 1502(a)).

e. Under a general lapse in funding authority, such as when Congress has not yet

enacted appropriations or a continuing resolution by the beginning of a fiscal year, or if the President vetoed an appropriations bill, obligations may be incurred for purposes associated with the orderly phase-down of operations and for the protection of life and property. During such an event, the provisions of GSA Order, Operations in the Absence of Appropriations (ADM 4220.1H), apply.

f. Obligating documents should be recorded in Pegasys as soon as possible. Recording an obligation should never be delayed because of a potential lack of funds.

g. The GSA’s administrative control system is fully integrated with the agency's accounting system, which is designed to provide information on obligations, accrued expenditures, applied costs, outlays, and the status of anticipated reimbursements, as needed for management and for reports prescribed under OMB Circular No. A-11.

(1) The official accounting system defined by the GSA’s CFO provides for the recording all financial transactions that affect appropriations, apportionments, reapportionments, allotments, allowances, operating budget plans, obligations, and expenditures. Obligations are classified by allowance area (activity, project, function, or organization) and object class for adequate review of financial operations.

(2) Allowance holders use obligation data in Pegasys for internal management, obligation control, and external reporting.

h. The validity of all obligations and disbursements must be assured. When obligations are estimated or accrued, their appropriateness must be reviewed, and adjustments are made as necessary.

i. Allowance holders should be provided with regular and timely advice on their financial status to ensure that funds are available to cover all proposed obligations. Advice and reports will be based on the latest information contained in the accounting system, supplemented by any other records deemed necessary for funds control, pre-validation or other reconciliation processes. Periodic reports are provided to allotment holders and other relevant officials on the status of obligations.

j. After the close of each fiscal year, accounting source documents are reviewed and analyzed to ensure that transactions affecting appropriation and fund balances were recorded properly, accurately, and timely.

k. Allowance holders are responsible for complying with any limitations on allowances—such as restrictions on obligations for certain purposes—and for ensuring that obligations are consistent with official GSA policies. Allowance holders must also



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be prepared to report to allotment holders, the GSA CFO, or other GSA financial managers whenever allowances deviate from established financial plans.

19. Prior-Year and expired accounts. The GSA's administrative control system applies to allotments and allowances as long as they remain in force, which extends beyond the current fiscal year.

a. Allotments and allowances providing no-year authority remain current and in force until they are financially complete.

b. For purposes of new obligation, annual accounts remain available for valid

obligation adjustments after they have expired. An allotment remains in force as long as the appropriation/account has an individual identity. Allowances remain in force for different periods based on the nature of the account and administrative control needs.

c. U.S. Code Title 31 “Money and Finance”, Sections 1552, 1553, and 1554, as

amended by the National Defense Authorization Act for Fiscal Year 1991 (P.L. 101-510) mandates that an appropriation will maintain individual identity and resources for five (5) years after the current year; after that, all open items are canceled, the account is closed, and balances are returned to the Treasury. Any valid adjustments occurring after an account has been closed are paid from current-year resources, up to a maximum of 1% of the current-year appropriation.

(1) The Act states that obligations against a closed account must not exceed

the amount originally available. Therefore, the allotment for each annual appropriation maintains an identity and remains in effect until it is financially complete.

(2) Allowances under annual appropriations remain, individually, in effect for one additional year after the accounts expire. Administrative control is needed at the allowance level until it has been confirmed that obligation adjustments are valid, proper, and do not exceed allowance. Afterward, the account is managed at the allotment level.

(3) Each year, the GSA CFO establishes, at the summary account level, the maximum 1% limitation for the payment of claims against closed accounts, and includes it as a limitation on the current-year allotment; allotment holders also include it on the C.O. allowance.

20. Responsibilities. The following information summarizes the functions and responsibilities of GSA officials under the GSA's administrative fund control order.

a. The Chief Financial Officers Act delegates all authority for the allocation and control of resources, and responsibility for compliance with the Antideficiency Act, to the GSA CFO. Through the Offices of Budget, Finance, and Financial Management Systems, the OCFO:


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(1) Plans, implements, directs, and coordinates all financial reporting, accounting, and financial management support for GSA while remaining consistent with statute-based OMB, GAO, and Treasury regulations.

(2) Sets agency policy on budgeting, accounting, and financial management systems.

(3) Prepares apportionment and reapportionment requests.

(4) Directs and coordinates resource allocations within GSA, and issues/ receives allotments within the limits of apportionments.

(5) Maintains positive funds control by issuing allowances within the limits of an allotment, when acting as an allotment holder.

(6) Develops policies to ensure that the pricing of goods and services furnished

by the GSA to customers covers all intended elements of cost, reviews those charges and fees at least biennially, and makes recommendations on proposed rates and rate processes.

(7) Approves capital plans and sets policies for the management and control of cash under revolving funds.

(8) Operates an accounting system that provides accurate reports on the status and condition of appropriations and funds while remaining within the framework of management needs and external regulations.

(9) Ensures that obligations and payments are permitted by law, are properly classified in the accounting system, and that reimbursements and refunds are properly credited.

(10) Monitors the effectiveness of resource distribution and financial

performance, and regularly gives status reports to agency management.

(11) Takes appropriate action when problems are identified, when there is excessive deviation from approved financial plans, and when there are unplanned profits or losses under revolving funds.

(12) Reviews and acts upon reports of violations within the GSA's administrative funds control system.

(13) Coordinates the publication of an annual report describing the financial condition of the agency.

(14) Conveys on allowances all financial and other restrictions on allotments or as otherwise required by GSA policies.


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(15) Monitors financial performance as reported in official accounting reports and makes or recommends any necessary allocation adjustments.

(16) Ensures that operations under appropriated and revolving funds are conducted legally and efficiently, and that the funds remain financially solvent.

(17) Reports to the GSA CFO any violations of the GSA’s system for the administrative control of funds, and provides comments and recommendations on any other reports of violation.

b. Allowance holders are budget analysts under the GSA’s Office of Budget. They

work out of the C.O., and are responsible for budgeting programs. They:

(1) Recommend the level of resources needed to execute programs. (2) Provide subordinate operating officials with operating budget plans that

subdivide allowance amounts by functional or organizational level and major object of expenditure.

(3) Are responsible for ensuring that programs are executed within the

limitations on allowances.

(4) Incur obligations for approved purposes, and establish procedures to ensure that only officials who have been given the authority to obligate government funds are incurring obligations, and are doing so within the scope of their authority.

(5) Ensure the availability of funds for new obligations.

(6) Record obligating documents in Pegasys at the earliest possible time.

(7) Review and reconcile financial reports in a timely manner, and request adjustments when inaccuracies are found.

(8) Request redistribution of resources as circumstances change. (9) Negotiate and execute reimbursable agreements with other agencies and

other GSA components.

(10) Ensure that obligations are compatible with laws, regulations, and GSA policies.

(11) Report to the allotment holder and the GSA CFO any violations in the

GSA’s system for the administrative control of funds.

(12) Ensure that all financial orders are implemented within each region and office and, as appropriate, establish procedures for the local administration of


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allowances and operating budget plans. Local implementing instructions are coordinated with the Office of the GSA CFO before issuance.

c. The HSSOs and Regional Administrators are responsible for various programs,

and may receive allotments. Through their corresponding analyst in the Office of Budget, they maintain funds control by issuing allowances within the limits of an allotment or as otherwise determined to be necessary for funds not under allotment. If the OCFO is not the allotment holder, then they can recommend the most effective distribution of resources on allowances to accomplish approved program objectives.

21. Prohibited actions. The following actions violate the GSA’s system of administrative control of funds. Where indicated, they also violate the Antideficiency Act.

a. Over-obligating or over-expending an appropriation or fund account. This is any incident in which a GSA officer or associate authorizes an expenditure or obligation under an appropriation or fund in excess of the amount available in the account. This violates the Antideficiency Act (31 U.S.C. § 1341(a)).

b. Making contracts or obligations in advance of appropriations. Involving the government in a contract or other obligation before appropriations are made for that purpose violates the Antideficiency Act (31 U.S.C. § 1341(a)).

c. Accepting voluntary services. A violation of the Antideficiency Act occurs if an officer or associate of the GSA accepts voluntary service for the United States, or employs personal services in excess of those authorized by law, except in cases of emergency involving the safety of human life or the protection of property (31 U.S.C. § 1342).

d. Over-obligating or over-expending an apportionment or allotment. Any instance in which an officer or associate of the GSA has authorized an obligation or made an expenditure in excess of an apportionment, reapportionment, or allotment, violates the Antideficiency Act (31 U.S.C. § 1517(a)).

e. Exceeding allowance authorities. It is a violation of the GSA’s administrative control system if an officer or associate of the GSA makes or authorizes an expenditure or obligation in excess of amounts contained on an allowance, or exceeds any other limitation on an allowance. A violation of the Antideficiency Act occurs if the over-obligation or over-expenditure causes an allotment, apportionment, or statutory limitation to be exceeded.

f. Improper obligations. It is a violation of the GSA’s administrative control system

if an officer or associate of the GSA authorizes an expenditure or obligation without proper authority or for purposes inconsistent with law, regulation, or GSA policy. A violation of the Antideficiency Act occurs if the action results in over-obligating or over-expending an apportionment, allotment, or statutory limitation.


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g. Exceeding authorities. An officer or associate of the GSA violates the administrative control system if he or she makes allowances in excess of an allotment, interim financing authority, or an approved financial plan for funds not subject to apportionment. A violation of the Antideficiency Act occurs if the excess authority results in over-obligating or over-expending an allotment, apportionment, or statutory limitation.

h. Exceeding a prior-year allowance. Cumulatively exceeding a prior-year

allowance that is still in force violates the GSA’s system of administrative control. A statutory violation occurs if a new obligation is made against a canceled or closed account; if cumulative obligation adjustments exceed the amounts originally available in an appropriation; or if obligation adjustments related to closed accounts made in any year exceed the 1% current-year limitation for such adjustments as stipulated in P.L. 101-510. 22. Penalties.

a. By law (31 U.S.C. § 1349, § 1518), a person who violates the Antideficiency Act is subject to appropriate administrative discipline up to and including suspension from duty without pay or removal from office.

b. A person who knowingly and willfully violates the Antideficiency Act shall be fined not more than $5,000, imprisoned for not more than 2 years, or both (31 U.S.C. § 1350, § 1519).

c. Administrative discipline for violating the GSA’s system for administrative funds control varies depending on the severity of the violation or other circumstances. Penalties may include:

(1) Oral warning. (2) Letter of reprimand or censure on the official employment record. (3) Unsatisfactory performance rating. (4) Transfer to another position. (5) Demotion or loss of responsibilities. (6) Suspension from duty for a specified period without pay. (7) Removal from office.


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23. Reporting violations of administrative control procedures.

a. Any individual who knows of a possible violation of administrative control procedures must report it to the appropriate HSSO or Regional Administrator.

b. HSSOs and Regional Administrators who know of a violation must immediately

report it to the GSA CFO. The report must include:

(1) The name and position of the employee(s) responsible for the violation. (2) All pertinent facts of the violation, including the cause and a statement by

the responsible employee(s) concerning any extenuating circumstances. (3) A statement of the administrative discipline taken or proposed. (4) A discussion of additional action that may be taken to safeguard against or

prevent recurrence of the same type of violation.

c. Upon receiving a report, or when violations are otherwise brought to his or her attention, the GSA CFO notifies the reporting official in writing, concurring in the corrective actions or recommending other actions.

d. The GSA CFO provides a follow-up report to the Administrator stating which

corrective and disciplinary actions were taken.

e. Antideficiency Act violations are reported, through OMB, to the President and Congress in a letter signed by the Administrator. OMB Circular No. A-11 describes the procedures to be used. 24. Pegasys funds control.

a. Budget data entry. All Pegasys users have roles assigned to them by their Functional Coordinators or Service Representatives. Each user may have one or more roles depending on the level of the user. See http://pegasys.gsa.gov/admin/usetup.htm.

(1) High-access budget users. Enter budgeting documents at the appropriation, apportionment, and allotment levels for appropriated accounts and at the fund and master allowance levels for revolving funds. These users are in the Office of Budget.

(2) Middle-access budget users. Enter budgeting documents at the allowance level for both appropriated accounts and revolving funds. These users are Office of Budget employees that represent SSOs.

(3) Low-access budget users. Enter budgeting documents at the operating plan level and below for both appropriated accounts and revolving funds. These users are in the program offices.

http://pegasys.gsa.gov/admin/usetup.htm


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b. Budgeting control. For appropriated accounts after the annual “Financial Services and General Government Appropriations Acts” has been signed into law (or any other law granting funds to GSA accounts) and the OMB apportionment has been approved:

(1) High-access users enter budgeting documents into Pegasys at the

appropriation, apportionment, and allotment levels. All the budgeting, posting, and spending controls should be set to “reject”.

(2) Middle-access users enter budgeting documents into Pegasys at the

allowance level after the high-level documents have been entered. The budgeting, posting, and spending controls should all be set to “reject”.

(3) Low-access users enter budgeting documents at the operating plan level

and below after the mid-level budgeting documents have been entered into Pegasys. The budgeting, posting, and spending controls are set as determined by the Office of Budget for each of the SSOs.

c. For appropriated accounts under a Continuing Resolution (CR):

(1) High-access users calculate availability based on guidance in the CR and from OMB. This availability will be entered into Pegasys at the appropriation, apportionment and allotment levels. The budgeting, posting, and spending controls are set according to guidance from the Director of the Office of Budget.

(2) Middle- and Low-access users may enter budgeting documents at the

allowance and operating plan levels, and below, after the high-level documents have been entered into Pegasys. The budgeting, posting, and spending controls are set in accordance with guidance issued by the Director of the Office of Budget.

d. For the Working Capital Fund (WCF) after OMB apportionment has been approved:

(1) High-access users enter budgeting documents at the fund, apportionment, and allotment levels into Pegasys. The budgeting, posting, and spending controls are all to be set to “reject”. Follow the same steps outlined in Paragraph 24.b. (1) (above).

(2) Middle-access users follow the same steps outlined in Paragraph 24.b.(2)

(above) and enter budgeting documents at the allowance level into Pegasys only after receiving notification that High-access budgeting documents have been entered into Pegasys. The budgeting, posting, and spending controls shall all be set to “reject”.

(3) Low-access users follow the same steps outlined in Paragraph 24.b.(3)

(above) and enter budgeting documents at the operating plan level and below only after receiving notification the Middle-access budgeting documents have been entered into


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Pegasys. The budgeting, posting, and spending controls may be set as determined by the Office of Budget for each SSO. PART 4: APPORTIONMENTS AND REAPPORTIONMENTS 25. Authority and scope. 31 U.S.C. § 1512 requires apportioning available resources to prevent exceeding authorities and to achieve the most economical use of funds. Although the term "appropriation" is used, it refers to appropriated amounts, funds, and contract authorities (31 U.S.C. § 1511(a)).

a. Apportionments divide amounts available for obligation by time periods, activities, functions, projects, objects, or any combination thereof. Reserves may be established to provide for contingencies, to increase savings made possible by changes in requirements or through greater efficiency of operations, or as otherwise provided by law. Any reserves must be reported to Congress and, if they remain unused or unnecessary, they are proposed for rescission (see 31 U.S.C. § 1512 and Chapter 3, part 11).

b. The President, through the Director of OMB, apportions each appropriation or fund available to an executive agency (31 U.S.C. § 1513 (b)). The law generally requires that all accounts be apportioned, but authorizes exemptions for certain types of funds (31 U.S.C. § 1516).

(1) Any trust fund or working fund where expenditures from the fund have no

significant impact on the financial operations of the United States government. (2) Any WCF or revolving fund established for intra-governmental operations. (3) Receipts from industrial and power operations available under law. (4) Appropriations made for interest on, or retirement of, the public debt. (5) Appropriations made for the payment of claims, judgments, refunds, and

drawbacks. (6) Items determined by the President to be confidential. (7) Appropriations for payment under a law requiring payment of the total

amount of the appropriation to a designated payee. (8) Grants to the states under the Social Security Act.

c. Exemptions are not mandatory; however, OMB Circular No. A-11 currently

requires apportionment for trust funds, intragovernmental revolving and WCF, receipts


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for industrial and power operations, and grants to the states under the Social Security Act, unless prior notice is given that particular accounts are to be exempted.

d. Apportionments include all budgetary resources in an account such as

reimbursements, available balances of prior-year authority, recoveries of prior obligations, etc.

e. Exceeding the limits of an apportionment violates Antideficiency statutes.

Apportionment limits can be further subdivided (31 U.S.C. § 1513(d)); this is the basis for GSA's system for the administrative control of funds.

f. An apportionment may be reapportioned as needed and should be "reviewed at

least 4 times a year by the official designated...to make apportionments." (31 U.S.C. § 1512(d)). 26. Basis and nature.

a. Apportionment is normally based on obligations, but OMB may apportion on another basis if obligations and outlays can be better controlled at some other point before firm obligations are incurred.

b. Most apportionments are made at the summary appropriation or fund level.

When more than one appropriation is enacted under the same title, separate apportionments are made for each one. OMB may apportion at lower levels, such as by groups of accounts, activities, projects, or objects. Apportionments below appropriation level will usually follow a pattern consistent with the way the account is presented in the President’s Budget.

c. Most budgetary resources are apportioned by fiscal-year quarter (category ‘A’

apportionment), but OMB can apportion them by other periods or by projects and activities (category ‘B’ apportionments).

d. Amounts are not apportioned for more than one fiscal year. For no-year or

multiple-year funds, amounts not required in the current year are shown on the apportionment form as deferred, withheld pending rescission, or as an unapportioned balance of a revolving fund.

e. When funds are apportioned for time periods of less than a full fiscal year (e.g.,

by quarter), unobligated balances at the end of a period carry forward to subsequent periods in the same year without the need for reapportionment, unless the apportionment form specifies otherwise. When budgetary resources remain available beyond the end of a fiscal year, new apportionment action is required to use them.

f. New apportionment action for a fiscal year is independent from actions in the

preceding year. Any reapportionments that occur throughout the year supersede previous action, and cover all transactions from the beginning of the fiscal year.


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g. Except in specified instances, the law requires apportionments to be created in a manner that prevents the need for a deficiency or supplemental appropriation. Apportionments must also account for any limitations imposed by the Congress.

(1) The distribution of apportionments is part of the agency's overall financial

plan for the year, and is based on a forecast of obligations which may occur as a result of work programs or operations as planned.

(2) When funds are apportioned by fiscal quarters or other periods less than the

full year, seasonal costs or other variations in fiscal requirements must be considered. If apportionments are needed in varying quarterly amounts, an explanation must accompany the agency’s request.

h. The Antideficiency Act (31 U.S.C. § 1515) allows for apportionments to include the need for supplemental budget authority when:

(1) Laws that require additional funding/expenditures beyond availability are enacted after estimates for an appropriation are submitted to Congress.

(2) Emergencies that involve the safety of human life, the protection of property,

or the immediate welfare of individuals in cases where an appropriation that would allow for the payment of, or contribution to, amounts required to be paid to individuals in specific amounts fixed by law or under formulas prescribed by law, are insufficient.

(3) Supplemental appropriations are required to permit payment of such pay

increases as may be granted pursuant to law. (4) Or laws are enacted that authorize apportionments that anticipate the need

for supplemental estimates (e.g., a continuing resolution that authorizes deficiency apportionments to meet civilian and military pay increases).

27. Apportionment requests. 31 U.S.C. § 1513 requires that the head of each agency submit to the President information required for apportionment. This must occur within 40 calendar days before the beginning of the fiscal year, or 15 days after appropriation enactment, whichever is later. The procedures and deadlines for submitting apportionment requests are in OMB Circular No. A-11.

a. Standard Form 132, Apportionment and Reapportionment Schedule is used to request apportionment for each subject appropriation or fund account. The SF 132 is submitted to OMB for each account. Additional copies may be required if a rescission or deferral is involved. OMB Circular No. A-11 shows the forms and how to complete them.

b. Apportionment requests are prepared by the Office of Budget based on estimated quarterly requirements and supporting data provided by the services and staff


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offices. They are signed by the CFO and transmitted to OMB by the following deadlines:

(1) By August 21, when all or part of the budgetary resources for an account do not require action from Congress (e.g., permanent appropriations and revolving funds).

(2) When resources for an account come from current action by Congress, schedules are to be submitted to OMB within 10 calendar days after appropriation approval or by August 21, whichever is later.

c. When an apportionment request is submitted on a deficiency basis, the SF 132

includes the notation "This apportionment request indicates a necessity for a supplemental appropriation now estimated at $XXXX.", and is accompanied by the Administrator's rationale for a deficiency apportionment, required by law (31 U.S.C. § 1515), to read as follows:

"I hereby determine that it is necessary to request apportionment [or reapportionment] of the appropriation [title] on a basis that indicates the necessity for a supplemental estimate of appropriations, because [Insert one of the reasons discussed in Paragraph 27.h].”

d. The need for a supplemental is usually reflected in quarterly apportionments by

making the request for the fourth quarter less than the amount that will be required. OMB approval of a deficiency apportionment, however, does not authorize exceeding available resources. 28. Reapportionments. Reapportionment requests are submitted to OMB as soon as there is an indication that a change is necessary.

a. Reapportionment requests are also prepared on SF 132s. Amounts are entered into columns showing the latest apportionment and the current request. OMB Circular No. A-11 provides samples.

b. A reapportionment request must be submitted within 10 calendar days after the passing of an act that increases or decreases apportioned budget authority.

c. In situations not initiated by a new act, a request should allow enough time for OMB to process the request before authority is needed.

d. In emergency situations involving the safety of human life or the protection of property, requests and OMB action may be initiated via telephone, and documented in schedules as soon as practicable afterward.

e. After the first apportionment for the fiscal year, downward adjustments of any amount to budgetary resources (including anticipated amounts) do not need to be reapportioned, unless specifically required by OMB.


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f. After the first apportionment for the fiscal year, unless OMB determines otherwise, apportioned amounts may be adjusted upwards by up to the lesser amount $400,000 or 2% of total budgetary resources, without submitting a reapportionment request. This is to reflect:

(1) Upward adjustments in the amount of unobligated balances brought

forward. (2) Increases in amounts of budget authority transfers or balance transfers. (3) Or increases in amounts of actual budgetary resources that are realized

above anticipated amounts.

g. An apportionment for a time period may not be changed after the period ends, i.e., no retroactive adjustments. 29. OMB action. Action on agency apportionment and reapportionment requests is entered by OMB into the SF 132, and is validated via a signature.

a. Once initial apportionment requests are submitted, OMB notifies agencies of the actions that must be taken by September 10 (or within 30 days after approval of spending bill), as required by law.

b. For accounts that have budgetary resources solely as a result of current action

by Congress, OMB notifies agencies affected by the action within 30 calendar days after an act that provides new budget authority has been passed, or by September 10, whichever is later.

c. When action is taken, the original SF 132 is forwarded with approval signature to

OMB. d. After OMB approves the Office of Budget’s request, the approved data is

entered into Pegasys. e. Apportionment action by OMB implies approval of, or concurrence with, any

comments inserted into the form by the requesting agency. If OMB disagrees with a specific comment, it will be noted on the approved SF 132.

f. The apportionment of funds does not guarantee the legality of their use.

30. Apportionments under Continuing Resolutions. CRs are enacted to temporarily provide funding until regular appropriations are enacted. Special rules apply under these circumstances (see Chapter 3, Part 7).

a. CRs are stopgap measures that generally prohibit starting new projects or terminating current ones.


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b. CR funding availability is usually calculated by applying a formula to an annual amount realized.

c. All amounts made available under CRs are automatically apportioned at the

lower of a historical seasonal rate or a prorated level for the effective period of the CR (e.g., a CR effective for 35 days would be prorated at 35/365 of the annual amount realized). An SF 132 apportionment request is not required.

d. Under an automatic apportionment, all footnotes and conditions on the last

proper apportionment remain in effect. e. If continuing current program activity requires an amount higher than the

automatic apportionment, or if a change to a prior year note or condition is needed, the agency submits an SF 132 at the requested level, along with justification of the need for increased funding. 31. Reports on budget execution. OMB Circular No. A-11 states that, unless otherwise specified by OMB, agencies will submit a monthly report on the status of each open account.

a. These reports provide information on program execution for external review, and show, in a uniform manner, the status of budgetary resources. They are also used by OMB to review apportionment or reapportionment requests.

b. Wherever open accounts are apportioned, the reports must have the same

coverage and level of detail as the apportionment. Expired accounts are included on the same form as the unexpired account.

c. Reports are prepared monthly by the Office of Finance on Standard Form 133;

examples of the form are in OMB Circular No. A-11. PART 5: ALLOTMENTS AND ALLOWANCES 32. General purpose. An appropriation or other availability that is apportioned may be divided or subdivided within the limits of each apportionment (31 U.S.C. 1513(d)). Under GSA's administrative control system, this is accomplished by issuing allotments and allowances. 33. Allotment. An allotment provides a named individual, the allotment holder, with the authority to obligate apportioned funds, and the legal responsibility for their administration and control. GSA allotments are issued at the level of the HSSOs. In other words, only the CFO, or his or her designee, may issue allotments.


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a. An allotment is issued for each appropriation or fund apportioned by OMB. An allotment may contain limitations and/or restrictions required by statute, OMB, and/or internal agency policy.

b. As determined by the CFO, an allotment may be issued to the CFO or to the

applicable HSSO. c. In the absence of regular appropriations and apportionments, allotments are

issued based on the amount of interim financing authority provided by a CR. Once regular appropriations or apportionments become available, conforming adjustments are made.

d. The Director of Budget, or his or her designee, prepares allotments on GSA

Form 2520, and signs them as a recommending official. The CFO or designee then signs them as the approving official.

e. The Director of Budget or designee sends the signed allotment form to the

allotment holder to serve as the basis for issuing allowances, with a copy to the Office of Finance. When the OCFO is the allotment holder, a copy is also sent to the applicable HSSO for their information. 34. Allowance. An allowance is an administrative subdivision of resources within the limits of an allotment, and grants operating elements with the authority to obligate funds. The total of all allowances may not exceed the allotment. Allotment holders issue allowances to named officials, budget analysts within the Office of Budget, who are designated allowance holders. Allowances may also be issued by the OCFO to accounts that are not apportioned or allotted in order to establish resource limitations. Allowance holders have responsibility over the administrative control of funds.

a. Initial allowances are prepared and issued annually in accordance with current procedures. Allowance holders may prepare them, or they may be prepared by allotment holders or other program officials based on information submitted by allowance holders. The allotment holder approves initial allowances and provides copies of the allowance to the Office of Finance and HSSOs.

b. During the fiscal year, requests for allowance revisions are usually prepared by allowance holders and submitted to allotment holders for review and action. Copies of allowance revisions are provided to the Office of Finance and HSSOs.

c. Whenever possible, allowances are issued electronically. Procedures include safeguards to ensure that initial allowances and subsequent changes are approved by proper authorities and are documented.

d. Allowances for appropriations, FBF operating accounts, and various other funds are prepared on GSA Form 3282. Allowance forms that have limited application to


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accounts or activities (e.g., FBF capital projects) are discussed in relevant parts of Chapter 4.

e. Allowance requests should be fully justified and must be accompanied by supporting justification and, as appropriate, operating budget plans (see Chapter 3, Part 6).

f. Allowance requests, with appropriate concurrences, are approved by the

allotment holders. When recommended allowances differ from the regional request, an explanation of the adjustment is provided either in the "remarks" block, via a markup of supporting operating plans, or in an attachment.

g. Office of Budget analysts ensure that the sum of the recommended allowances does not exceed, by quarter or in total, current allotments, and that all allotment limitations or restrictions are reflected in allowances.

h. In some cases, with the approval of the OCFO, a master allowance may be issued to an Office of Budget analyst. The budget analyst may then issues allowances to individual programs or offices. This way the OCFO remains the allotment holder, and the budget analyst gains administrative, rather than statutory, responsibilities over allowances. 35. Changes to allowances.

a. Once an allowance is issued, agency members may not adjust or withdraw from those allowances without consulting the allowance holder. Exceptions include allowances issued under interim financing procedures; when authority lapses due to failure of appropriations; when adjustments are directed by higher authority; and when an allowance is issued on a deficiency basis. However, even in these cases, the allowance holder must be part of the discussion, and this should be noted in the justification submitted with the proposed revision.

b. In cases of extreme urgency, certain procedures are permissible.

(1) A requested allowance revision may be transmitted to the allotment holders after first coordinating it by telephone between SSOs. The emergency allowance should bear the normal signatures/concurrences; include an explanation of the emergency; and note any coordination between officials. Action on the allowance is confirmed with the requester by telephone or e-mail, and an advance copy is transmitted.

(2) SSOs may unilaterally revise an allowance when requested. Under such

circumstances, the document will include concurrence by the Commissioner or designee, an explanation of the change, and notation of official concurrences. Final action is confirmed with the requestor by telephone or e-mail, and the approved document is transmitted.


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PART 6: OPERATING BUDGET PLANS 36. General purpose. Operating budget plans distribute allowance resources to the functional or organizational levels where programs are executed. They are used for both funds control and program management.

a. Operating budget plans keep track of who is responsible for performing work, what work is to be performed, and what resources are available for that work. Comparing performance data with budget plans will indicate how well the program is running, and will reveal if reallocation of resources is needed.

b. Although the plans do not officially convey authority or responsibility within the GSA’s system of administrative funds control, they do play a key role in ensuring that it functions effectively. Because they show how the allowance holder plans to distribute allowance resources, monitoring them provides an ongoing indication of allowance status. Furthermore, deviations from a budget plan can indicate a developing financial problem.

c. Plans are prepared for each level under an allowance where measurable units of

output can be established. These levels vary by project, and could be organizational units, functional programs, or any combination thereof. Annual agencywide allowance calls and program execution guidance will state the minimum level for which plans are mandatory. Allowance holders, however, may prepare plans at even lower levels if they wish.

d. Each plan distributes resources by major object of expenditure (object class). The minimum class is personnel compensation (object classes 11, 12, and 13), travel (object class 21), and a total for all other required objects; others may be added to meet management information needs.

e. All plans must be consistent with total and quarterly allowances. This includes following any allowance limitations or restrictions. 37. Format and procedures. For most GSA appropriations and funds, operating budget plans are prepared on GSA Form 3282A, “Operating Budget Plan”; however, some accounts may use other forms, as discussed in various parts of Chapter 4.

a. The forms are prepared by the regional or C.O. officials responsible for the programs or organizations to which the forms apply. Normally the official is an Assistant Regional Administrator, a Regional Commissioner, a C.O. Assistant Commissioner, or an Office Director. The official signs the form in the "requested by" block.

b. Requesting officials enter the identifying data at the top of the form, and

complete the "current plan" and "requested" columns.


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(1) For initial plans, there is no "current plan". Instead, the "requested" column reflects the totals requested for each quarter and the year. When plans are revised, the "requested" column will contain the amount that has changed from the last approved plan.

(2) In the "Funds" section, amounts are identified for each object class by quarter and in total (the form provides for a maximum of 4 object class entries). Quarterly data is not cumulative; quarterly subtotals and grand totals are entered onto separate lines.

(3) The "Specific Limitations" section contains data that restricts or limits the program account.

c. Regional plans are approved by the Regional Administrator, and C.O. plans by the HSSO.

(1) This task may not be delegated, because the purpose of creating an operating budget plan is to ensure that the allowance holder is fully aware of the planned use of resources for which he or she is responsible under GSA's administrative control system.

(2) As an administrative convenience, however, a Regional Administrator or

HSSO may choose to issue or sign summary operating budget plans for key areas, or even an aggregate plan for the entire allowance. This permits subordinate officials to approve "no net" changes to detailed plans, and enter them into the accounting system. Revisions causing a net change to a summary plan require the allowance holder’s signature.

d. Approved operating budget plans and revisions are promptly entered into the

accounting system. e. When allowance revisions are proposed during the year, revised operating

budget plans show how the new allowance will be applied. When an allowance revision is approved, the related plans are promptly entered into the accounting system.

f. During budget execution planning, operating budget plans may be used as

justification material to support allowance requests. Justification material does not need to be signed by a Regional Administrator or HSSO. Once allowances have been approved by the C.O., the plans may be returned with entries in the "approved" column to show the basis of the request. This is for information only; allowance holders may redistribute resources among the plans as necessary, provided they remain within allowance totals.


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38. Performance monitoring.

a. Budget plans establish a base against which performance (obligations) can be measured. These plans must be regularly monitored and kept up-to-date, in order to assess the effectiveness of resource distribution and to ensure that deviations do not exceed allowance limitations.

b. Depending on circumstances, procedures may be established that require

allowance holders to formally report deviations from the plan, or that limit the allowance holder's flexibility to redistribute funds among the plans. This generally occurs when program managers are under severe resource constraints, or when limited flexibility is required to ensure that a specific program is accomplished. PART 7: INTERIM FINANCING 39. General purpose.

a. Interim financing is spending authority during a CR. This allows operations to continue in the absence of regular appropriations. Interim financing ends when regular appropriations become available.

b. Although CRs are technically stopgap measures meant for short durations, CRs

have been used to cover long periods, such as the entire fiscal year. For example, GSA operated entirely under CRs for fiscal years 1981 through 1988.

c. The policies and guidelines in this Part concern operations under CRs that are effective for less than a full fiscal year. When CRs are effective for the entire fiscal year, they are treated as regular appropriations. 40. Applicability.

a. CRs affect all accounts that obtain spending authority through appropriation acts. This includes direct appropriations and activities under the FBF. Although the FBF is a revolving fund, it depends on annual Congressional action to provide NOA.

b. Most revolving funds do not depend on Congressional action for spending

authority, and operate as necessary to meet customer and inventory needs, subject to applicable statutes, regulations, and policies. If a customer agency is operating under a CR, then that agency should only be spending in accordance with the guidance specified in the CR.

c. Reimbursable orders may still be accepted provided they comply with all

applicable statutes, regulations, and policies.


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d. Permanent appropriations are not affected by CRs, unless they depend on the passage of an appropriations bill, or when the regular bill or resolution contains a provision applying to them.

e. Unobligated balances under multi-year or no-year accounts are available under

a CR; however, they must be used for the purposes for which they were appropriated, and not for items assumed to be financed by the pending appropriation. 41. Authorities. A CR is really just a current indefinite appropriation that provides authority to obligate funds during its effective period.

a. Unless otherwise specified, appropriations and obligational authority are made available in the same manner and for the same purposes as in a regular appropriation act.

b. New spending authority is indefinite; it is the amount realized during the effective period of the resolution to operate at an approved rate. In this case, “rate” means the annual program assumed in the resolution. Generally, the approved rate or annual program depends on the status of the regular appropriation bill when the resolution is enacted.

(1) Typically, when neither chamber of Congress has acted on a pending

appropriation request, activities and programs are conducted at their current rate. According to the Comptroller General, the “current rate” is defined as the total funds available for obligation for a program during the previous fiscal year.

(2) When only one chamber has acted on the budget request, activity is

conducted at the current rate or at the rate authorized by the one chamber, whichever is lower.

(3) When both chambers have acted on the budget request, operations are

continued at the lowest rate between the House, Senate, or current. (4) When funds for a program or activity are denied or omitted in one version of

an act passed by both chambers, it is continued at its current level until the matter is resolved in conference.

(5) In cases where conference action on an appropriations bill is complete, a

resolution may specifically authorize a rate of operation consistent with the conference agreement.

c. Under a CR, agencies are prohibited from starting new projects or activities and

from terminating existing ones, unless the CR specifically states otherwise.


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d. Legislative provisions, authorities, and restrictions are continued as reflected in the last enacted appropriations act for the previous year unless specified otherwise in the CR.

e. Amounts, limitations, or provisions that are directly stipulated in the resolution

supersede the more general authorities that otherwise pertain. f. Obligations may not accrue for purposes beyond the scope of the resolution,

even if amounts may be sufficient to accommodate them. That would be an illegal augmentation (31 U.S.C. § 1301), and could violate Antideficiency statutes.

(1) For example, most CRs prohibit initiating new programs. A new program is

one that requires appropriations, funds, or other authorities that were not available during the prior year.

(2) Existing programs and activities should not be expanded over their current operating level unless this is clearly permitted in the resolution.

g. Authority to incur obligations is limited to the effective period of the CR, and

authority ceases when it expires. Chapter 3, Part 8 discusses what to do if appropriations lapse.

h. Obligations and expenditures incurred under a CR are charged to, but do not increase, amounts subsequently enacted in a regular appropriations measure. 42. Apportionment. OMB Circular No. A-11 mandates that funds realized under a CR be apportioned for all accounts that require it. Apportionments provide firm limitations on amounts that may be obligated during the effective period of the resolution, and may not be exceeded.

a. When a resolution is only for a part of a year, apportionment may be automatic, or can require formal action by an agency.

(1) For all CRs, OMB usually automatically apportions the lower of a seasonal

rate or a specified percentage of the annual program realized under the CR.

(2) If an agency finds that automatic apportionment will not be adequate for the resolution period, it may submit, within 10 calendar days after the apportionment has passed, a formal apportionment request (SF 132) to OMB with a written justification for the amounts requested.

b. When a full-year authority is finally enacted, agencies must submit

reapportionment requests to OMB within 10 calendar days after enactment.

c. Preparing apportionment and reapportionment requests is discussed in Chapter 3, Part 4. Annual OMB bulletins provide technical instructions on how to implement any


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special procedures that may be needed under the terms of that year's continuing resolution. 43. Treasury warrants. A warrant is a document issued by the Secretary of the Treasury that authorizes amounts to be disbursed from the Treasury.

a. Under a CR, treasury warrants are countersigned by the Comptroller General.

b. When a regular appropriations act provides definite amounts, warrants are automatically issued by the Treasury. When amounts are indefinite, such as under a permanent appropriation or in a CR, the Treasury waits for agencies' to submit a request for warrants.

c. Requests for warrants are coordinated by the Office of Budget to ensure that they are compatible with approved apportionments. They are then prepared in the required format by the Office of Finance, and submitted to the Treasury.

d. The treasury warrant indicates which amounts fall within automatic apportionment. To indicate amounts that do not, a copy of an approved SF 132 is attached.

e. If the short-term CR is extended for further periods totaling less than a year, additional warrants are requested for the extended period. A final request is also needed once a regular appropriation is enacted. 44. Determining requirements. To ensure that adequate amounts are apportioned and warranted, analysts need to determine the minimum funding level needed to support programs and activities during the CR's effective period.

a. The purpose of a CR is to prevent disrupting ongoing activities until final amounts are approved. This generally means that:

(1) Obligations may be incurred as necessary for compensation and benefits based on entitlements and rates of pay in effect at the time.

(2) Obligations for the recurring purchase of supplies, goods, and services may

be incurred at rates needed to maintain continuity of operations through the resolution period.

(3) Obligations for nonrecurring or discretionary costs, such as travel, are kept

to a minimum or deferred until after regular appropriations are enacted. (4) Obligations are not made for new programs and projects, or for expanding

current ones, unless expressly authorized.


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b. Obligation amounts should not exceed requirements for the time period covered by the CR.

(1) If possible and economical, annual contracts or purchases are broken into

quantity or time increments that correspond to requirements for the resolution period. (2) Obligations may support efforts beyond the CR period when an obligation

must be made during that time and cannot be broken into increments. For example, obligations required for utility payments, most service contracts, payments under purchase contracts, payments of taxes, and the like are incurred in the full amount.

(3) Amounts that are accrued in advance, such as for payroll, rent, and

common distributable costs should not exceed pro-rata requirements for the resolution period.

45. Internal allocation and control. When GSA operates under a CR, the agency must adjust to internal allocation and control procedures as needed.

a. Allotments and allowances are not issued for short-term resolutions. Instead, the CFO issues a memorandum to operating units that authorizes them to incur obligations consistent with the terms of the CR. The memorandum has the force and effect of an allowance under the GSA’s administrative control system.

b. For longer resolutions that do not cover an entire fiscal year, allotments are issued within the limits of apportionments. Authority below this may continue by memorandum or by issuing allowances. If annual amounts likely to be enacted are fairly certain, allowances may cover the full year, but with a restriction that limits obligations during the CR period to apportionments.

c. If a CR covers an entire fiscal year, it is treated as a regular appropriation, and allotments and allowances are issued in the standard manner.

d. Operating under a CR often requires special control procedures, particularly when memorandum authority is used for more than a nominal period. To ensure that available amounts are not exceeded, and that programs are executed within limitations, extra procedures may be instituted to require pre-approval for certain types of transactions, or for those over a specified amount. PART 8: OPERATIONS IN THE ABSENCE OF APPROPRIATIONS 46. Background.

a. Until fiscal year 1981, whenever Congress failed to enact appropriations or a continuing resolution before the beginning of a fiscal year, agencies usually continued to operate at minimum levels until a bill was passed. The executive branch and the


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Comptroller General supported this because Congress did not plan for terminating operations and routinely ratified incurred obligations in subsequent acts.

b. On April 25, 1980, the Attorney General issued an opinion that the language and legislative history of the Antideficiency Act unambiguously prohibits officials from incurring obligations in the absence of appropriations, and warned that the Department of Justice (DOJ) would act to apply criminal penalties for violations under lapsed appropriations.

c. On August 28, 1980, OMB issued Bulletin 80-14 to provide policy guidelines for times when the Congress fails to enact authority and interrupts funds availability. On November 17, 1981, OMB provided additional instructions via a memorandum (link: http://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/attachment_a-4.pdf) based on the Attorney General’s January 16, 1981 opinion.

d. Supplement No. 1 to OMB Bulletin 80-14 of August 20, 1982 requires that agencies maintain formal plans to deal with an appropriations lapse. These plans must discuss procedures and responsibilities, describe activities that are exempt (or “excepted”) from limitations imposed by an appropriations lapse, establish systems to notify personnel of the situation, and provide for minimum program disruption until Congress enacts an appropriation.

47. Authorities. If appropriations lapse, the following authorities and principles apply, which reflect guidelines written by Congress, OMB, Office of Personnel Management (OPM), and other authorities:

a. Under the Antideficiency Act, it is a felony to obligate funds on behalf of the U.S. government in advance of appropriations unless otherwise authorized by law (31 U.S.C. 1341). Exceptions include emergencies involving the safety of human life or the protection of property 31 U.S.C. § 1342 and §1515(b)(1)(B)).

b. The Attorney General's opinion “Applicability of the Antideficiency Act Upon a

Lapse in an Agency’s Appropriations” from 1980 held that, under a lapse in appropriations, agencies could not incur any obligations that were not legally funded from prior appropriations or otherwise authorized by law. The opinion also held that the Antideficiency Act implicitly allows for Federal officers to incur minimal obligations necessary for terminating operations.

c. The subsequent Attorney General’s opinion from 1981 “Authority for the

Continuance of Government Functions During a Temporary Lapse in Appropriations” went into more detail on possible exceptions to the Antideficiency Act, including those classified as emergencies. Generally, there must be a reasonable connection between the function and the safety of human life or the protection of property. Second, there must be a reasonable likelihood that the safety of human life or protection of property would be compromised by delay in performance of the function.


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d. Section 13213(b) of the Omnibus Budget and Reconciliation Act of 1990, P. L. 101-508 (Title 13 is also known as the “Budget Enforcement Act (BEA) of 1990”), amended 31 U.S.C. § 1342.

(1) The amendment clarifies that "...the term 'emergencies involving the safety

of human life or the protection of property' does not include ongoing, regular functions of government the suspension of which would not imminently threaten the safety of human life or the protection of property."

(2) As explained in the conference report on the bill, this action was taken to

"guard against what the conferees believe might be an overly broad interpretation of an opinion of the Attorney General...regarding the authority for the continuance of Government functions during the temporary lapse of appropriations, and affirm that the constitutional power of the purse resides with Congress."

e. In an August 16, 1995 memorandum, the DOJ Office of Legal Counsel reaffirmed the validity of previous legal opinions and interpretations, with two clarifications:

(1) In determining whether certain functions qualify as an exception under the Antideficiency Act, there must be a reasonable likelihood that the safety of human life or the protection of property would be compromised "in some significant degree" by delay in the performance of the function.

(2) The use of the word "imminent" in the 1990 amendment serves "to

emphasize and reinforce the requirement that there be a threat to human life or property of such a nature that immediate action is a necessary response to the situation."

f. Based on the Attorney General's 1980 and 1981 opinions, and reaffirmed by the

1995 DOJ opinion, OMB has cited the following as primary examples of activities authorized to continue during a funding lapse:

(1) Providing for national security. (2) Providing benefit payments and performing contract obligations under no-

year, multi-year, or other funds available for those purposes. (3) Conducting activities that protect life and property. This includes:

(a) Providing essential medical care of inpatients and emergency outpatient care.

(b) Protecting public health and safety by maintaining standards for

handling food, drugs, and hazardous materials.


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(c) Continuing air traffic control and other transportation safety functions and protecting transportation property.

(d) Continuing border/coastal protection and surveillance. (e) Protecting Federal lands, buildings, waterways, equipment, etc. (f) Caring for prisoners and other persons in U.S. custody. (g) Pursuing law enforcement and criminal investigations. (h) Providing emergency and disaster assistance. (i) Preserving the U.S. economy and banking systems, including Treasury

borrowing and tax collection activities. (j) Maintaining power and the power distribution system. (k) Protecting research property.

g. Within these guidelines, agency heads may determine which activities are

necessary to operate their agencies during a lapse in appropriations.

h. Usually, activities and employees supported by permanent or no-year appropriations and revolving funds are authorized to continue if enough funds are available for obligation in the accounts and at levels required to accomplish or complete customer orders. The FBF, however, is not treated as a revolving fund under an appropriations lapse, because its current obligational authority is provided in annual appropriations acts.

i. Under GSA's current-year accounts, any activity that protects life and property;

performs contract obligations under no-year, multi-year, or other funds available for those purposes; and supports, provides services to, or otherwise enables others to perform excepted functions will not violate the Antideficiency Act. Reimbursable personnel or services may or may not be affected, depending on the status of the ordering components' funding sources.

j. For non-excepted activities, obligations may only be incurred for suspending

normal agency operations. k. Without appropriations, it is illegal for any non-excepted employees to do regular

work. It also violates the Antideficiency Act to accept voluntary services of employees for non-excepted activities (31 U.S.C. § 1342).

l. Although obligations may be incurred for exempt activities and for shutting down operations, expenditures cannot be made against lapsed appropriations; instead, new


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appropriations must be enacted to liquidate the obligations. However, obligations incurred against accounts not affected by the lapse may be liquidated.

m. “Excepted” is not the same as “essential”. Employees may be essential for conducting regular operations, and may even be required to report to work during hazardous weather conditions, but they are not necessarily excepted when those regular operations cease under a funding lapse. To be designated as excepted, they must be performing the specific functions defined in GSA Order ADM 4220.1H Operations in the Absence of Appropriations.

n. The GSA, as a rule, attempts to minimize the number of executive, management, and supervisory personnel designated as exempt/excepted, concentrating instead on employees delivering excepted services to Federal customers. Unless an office is excepted in its entirety, the general policy is that either its director or deputy director may be designated as excepted, but not both. This applies equally to the Services, Staff Offices and the Regions. 48. Implementing procedures. Below is the general framework for responding to a temporary lapse in appropriations. Generally speaking, "temporary" is defined as 30 consecutive days or less. However, in this section, “temporary” refers to only a few days. If a lapse is extended or an agency terminated, additional instructions will be issued.

a. Unless notified otherwise, all employees should report to work on the first day of a temporary lapse. The GSA Order ADM 4220.1H Operations in the Absence of Appropriations identifies excepted functions.

(1) Regional Administrators and HSSOs identify the employees who are needed to perform excepted functions, and compile a list of names. This list must be kept current.

(2) In some cases, particularly in the regions, the number of excepted

employees varies with local conditions. Regional Administrators and HSSOs determine the minimum number of personnel required to support excepted functions.

b. Released non-excepted employees are placed in non-duty, non-pay status, also known as a “furlough”, under the adverse action procedures outlined in 5 Code of Federal Regulations (CFR) § 752. The time of release must be accurately noted.

(1) Although advanced notice of a furlough is preferable, an all-employee bulletin can be used to notify staff members. However, a written copy should also be provided to each employee. If there is no time for written notice, the oral notice is acceptable (5 CFR § 752.404(d)(2)), with later written notice to confirm the action. At some point, all personnel actions must be documented; the Office of Human Resources and Management (OHRM) has the requirements.






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(2) If possible, labor unions are notified before implementing furloughs. The Labor Relations Division notifies national unions, the American Federation of Government Employees, and the National Federation of Federal Employees. Each region is responsible for notifying regional and local unions.

(3) Furloughed career SES members are entitled to the procedures in 5 CFR §

359(h). The OHRM can explain furlough procedures for them and for non-Presidential appointees, Schedule C employees, temporary employees, and non-career SES members.

c. Employees who are closing down operations or who perform excepted activities must report for duty as directed. During an appropriations lapse, they are still in pay status, but are working for delayed pay. They are not rendering gratuitous services and must report to work.

d. Non-excepted employees should monitor the media to determine when the lapse

is over, and when they should report for duty. Each Region and Headquarters unit also must establish procedures to notify released employees of when to return to work or when other circumstances require changed instructions.

e. During a lapse in appropriations, annual or sick leave may not be used by

employees in the place of a furlough.

(1) While past GSA policy and labor agreements had allowed for paid leave during a furlough if the leave had been approved before the furlough began, the OPM has determined that use of paid leave during a furlough is a violation of the Antideficiency Act. Their reasoning is that in the case of a furlough due to the lapse of appropriations, "leave is automatically canceled because the necessity to furlough supersedes leave rights."

(2) Therefore, in the event of a furlough, annual, sick, court, bone marrow, and organ donation leave is canceled. Military leave will continue to be charged even though furlough days are considered non-work days. Employees serving as witnesses or jurors would be able to retain all moneys received from the court. Canceled or interrupted leave is not forfeited, and can be used later.

f. Persons on official travel when funds lapse are handled case-by-case.

(1) Travelers performing excepted functions remain on duty. (2) Non-excepted employees under accounts affected by lapse are placed on

furlough and are recalled because there is no authority to incur new per diem obligations.

(3) Non-excepted employees in temporary duty status under accounts that are

not affected by the lapse (e.g., revolving funds) may or may not be furloughed. The


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general policy would be to have them remain in travel status, but decisions will be made on a case-by-case basis.

g. Goods and services are purchased under lapsed appropriations in the minimum

amounts required to support excepted operations.

(1) Existing definite-quantity contracts awarded for supplies or commodities are generally not affected, since they are usually fully funded at the time of award. Existing Multiple Award Schedules (MAS) contracts should not be of concern, although contracting staff working on them might be furloughed until the lapse is over.

(2) Contract options for additional quantities or to extend the term of the

contract are not exercised unless it is determined that the additional goods or services are needed to continue or support excepted operations. Contracting personnel need to consult with program and agency legal counsel before making a final decision on a contracting option.

(3) Under recurring service contracts funded by annual appropriations that

cross fiscal years, work may be continued at current or reduced levels if it is needed to support excepted operations; otherwise it may be suspended or terminated in part. Contracting personnel need to work closely with agency legal counsel to determine if terminating services for the convenience of government or reducing the level of work in a contract is necessary.

49. Excepted activities. For a complete list of excepted/exempt activities, see the GSA Order ADM 4220.1H Operations in the Absence of Appropriations. PART 9: REIMBURSEMENTS 50. General purpose. Reimbursements are amounts received by a unit under an agreement to provide goods or services to another unit. This is a contractual type of arrangement different from the continuing cycle of business operations under a revolving fund. Costs are initially financed from appropriations or from funds subject to apportionment, and payments are credited directly to the performing account. A GSA unit may perform reimbursable work for any other Federal unit, including another GSA component, if it is allowed and able to do so. 51. Authority. Basic authority for Federal agencies to enter into reimbursable agreements, and the way that they are handled, is established in 31 U.S.C. § 1535, commonly known as the Economy Act. Implementing regulations are found in 48 CFR § 17.5. The GSA in particular relies on the Federal Property and Administrative Services Act of 1949, which is discussed in Chapter 4, Part 1.



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a. The head of an agency or major organizational unit within an agency may place an order with another major organizational unit within the same agency or within another Federal agency for goods or services provided that:

(1) Funding is available within the ordering agency. (2) The head of the ordering agency or unit decides that the order is in the best

interest of the Federal Government. (3) The agency or unit filling the order is able to provide, either directly to via

contract, the goods or services. (4) The head of the ordering agency decides that the goods and services

needed cannot be provided as conveniently or cheaply by a commercial enterprise. (5) The ordering agency’s appropriation is required—by the Economy Act—to

be deobligated to the extent that the agency or the unit filling the order has not incurred obligations before the end of the period of availability of the appropriation.

b. Advances and reimbursements from other Federal Government appropriations are available for obligation—but not disbursed until received—when the ordering appropriation records a valid obligation to cover the order. The providing (servicing) agency shall charge the ordering (requesting) agency “on the basis of the actual cost of goods or services provided” as agreed to by the agencies. 52. Policies. The following rules apply to reimbursable operations, unless stated otherwise.

a. Reimbursable tasks are not accepted by a unit unless it is in the business of providing the items or services. That is, the performing unit must be able to do the work without further contractual arrangements, unless it is able to award/administer the contracts more efficiently or cheaply than the ordering unit.

b. Reimbursable arrangements do not change the nature of appropriations.

Appropriations are used only for the purposes for which they were made (31 U.S.C. § 1301). Therefore, an account may not be used to pay for reimbursable work unless said work is among the purposes of the account. Reimbursable work may not encompass projects that are specifically paid for under an appropriation. To do so is illegal. For example, a GSA unit receiving an appropriation to provide a given level of service to a customer could not bill that customer for the service. However, they could charge for additional levels of service, or for the same services provided to customers not specified by the appropriation.

c. Reimbursable income is credited to the performing unit’s account to offset the costs of doing the work. This income increases amounts available for obligation;


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however, the income may not exceed the actual cost of performing the requested work. In other words, agencies cannot profit from reimbursable income.

(1) When it is not possible or practical to determine actual costs, both parties may agree to predetermined amounts or standard rates.

(2) Reimbursable income is only available for the purposes authorized and may

not finance other efforts. Income collected in excess of actual costs is returned to the ordering unit or deposited into the Treasury’s miscellaneous receipts.

d. GSA components may not perform reimbursable work unless there is a prior written agreement specifying what is to be provided and at what cost.

e. Obligations are recorded under the performing unit’s account as costs are

incurred, and are billed to the ordering unit. When a reimbursable order is for a fixed price or standard rate, obligations and billings are based on a pre-established schedule.

f. When negotiating a reimbursable order, performing units must ensure that

authorized amounts can cover all anticipated costs. If the cost of work exceeds income, then the excess obligations are still charged to direct authority. However, this may cause an Antideficiency violation if there is not enough direct availability. 53. Allocation and control procedures. As discussed in Chapter 3, Part 3, obligational authority in apportionments, allotments, and allowances includes estimated amounts for reimbursements. This is to ensure that total obligations do not exceed availability.

a. Initial apportionments reflect the agency’s estimates of income that will be realized during the fiscal year, and are usually not adjusted by OMB. They include:

(1) Estimates of income from locally negotiated and executed reimbursable agreements.

(2) The value of centrally-managed, nationwide agreements where work is

performed locally, but income is received and credited at the appropriation level within the GSA Headquarters.

b. At the beginning of the year, estimates are based on prior-year experiences

adjusted for any known changes. c. Amounts of unrealized reimbursements are allotted when there is reasonable

assurance that the funds will be collected and deposited to the account in question. d. For operating appropriations, estimates are listed on allowances as an

obligational authority limitation that may not be exceeded. For FBF activities, reimbursable authority is not provided on allowances, but rather results from Reimbursable Work Authorizations (RWAs) from customers.


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e. Because authorities are estimates, the status of reimbursable efforts must be closely monitored to ensure that they are not exceeded.

(1) If an operating unit determines that reimbursable income will exceed

quarterly or total authority on an allowance, it immediately submits a request for additional authority to the allotment holder. This is also done when expected reimbursable work will be significantly lower than allowance authority, because in those cases the balance of reimbursable authority is not available to augment the direct program.

(2) If the requested change cannot be accommodated within existing allotment

authority, the allotment holder asks the Office of Budget to request a reapportionment from OMB. Because apportionments cannot be adjusted retroactively, early notice is needed to allow time for OMB to act on a request before authority is needed.

f. The Regional Services and Staff Offices (SSOs) monitor income and record the information in a general accounts ledger. Extra income is returned to customers or given to the Treasury. Unpaid costs remain charged to the parent account, reducing availability for the direct program.

g. If it seems as though obligations might exceed income, immediate steps are

taken to secure additional financing from the ordering unit. If income cannot be increased to cover the estimated costs, then the performing unit notifies their SSO of the situation. The performing unit provides an impact analysis on the direct program and lists actions that should be taken to avoid over-obligation.

h. A violation of the administrative control of funds occurs if, at the end of any

monthly reporting period, reimbursable obligations exceed an allowance or if obligations against RWAs exceed the total amount authorized. Exceeding an apportionment is a violation of the Antideficiency Act.

54. The Economy Act. The Federal Property and Administrative Services Act and the Government Management Reform Act (GMRA) of 1994 (103 U.S.C. § 356) state that surplus services from other Federal units may be requested unless the needed product or service can be better obtained through agency or private sector resources.

a. Federal agencies may not provide commercial activities to the private sector unless specifically authorized by law or by OMB.

b. Under OMB Circular No. A-97 “Rules and regulations permitting Federal

agencies to provide specialized or technical services to State and local units of government under Title III of the Intergovernmental Cooperation Act of 1968”, agencies must complete a Cost-Benefit Analysis (CBA) before offering to provide or receive commercial services to or from state or local governments.


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c. In accordance with OMB Circular No. A-126 “Improving the Management and Use of Government Aircraft”, agencies must conduct a CBA before retaining, purchasing, or otherwise providing Federal aircraft or aviation services. PART 10: YEAR-END SPENDING 55. General purpose. Because the potential for waste and abuse increases when funds are about to expire, additional attention is needed during the last quarter of a fiscal year to ensure that public funds are only used for necessary purposes, that obligations will not be incurred just to use them before they lapse, and that good procurement practices are not disregarded in an attempt to obligate funds quickly. 56. Year-end spending policy. In the past, OMB or OMB’s Office of Federal Procurement Policy (OFPP) issued annual instructions to agencies on ways to prevent wasteful year-end spending. While the guidelines differed slightly from year to year, they all included the basic policies listed below.

a. Agencies should:

(1) Enforce disciplinary action against officers and employees who waste public funds, particularly those who obligate funds solely to keep them from being reported as unobligated or to keep them from lapsing at the end of the year.

(2) Provide employees with incentives to prevent wasteful spending, such as

considering good spending practices as part of the criteria for cash awards and bonuses.

(3) Inform employees of ways to report waste or fraud, including hotline

information for the offices of the Inspector General. Hotline information is available at https://www.gsaig.gov/index.cfm/recovery/oig-hotline/#ContactingFraudNet.

(4) Keep obligations for the fourth quarter of a fiscal year at roughly the same

level of the first three quarters, except where seasonal requirements, essential program objectives, or lead times justify a higher level.

(5) Subject grants and other forms of Federal assistance to rigorous review to

ensure they are made for justifiable reasons and not just to keep the funds from lapsing or from being reported as unobligated.

(6) Pay special attention to high-vulnerability areas such as travel and

transportation; consulting and related services; motor vehicles; furniture and equipment; public affairs; and other areas identified in assessments based off the Federal Managers' Financial Integrity Act and OMB Circular No. A-123 “Management Accountability and Control”.

https://www.gsaig.gov/index.cfm/recovery/oig-hotline/#ContactingFraudNet


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(7) Follow procurement guidelines issued by the Administrator of OFPP.

b. Guidelines from the OFPP Administrator emphasize the need for advanced procurement planning procedures; better management, control, and surveillance of procurement activities down to the lowest field level; and following cut-off dates and standard procurement lead times.

c. The annual OMB instruction includes an OFPP checklist for preventing wasteful

year-end spending. This list contains policies for standards of conduct, needs determination, best practices, accountability, contractor selection methods, and best uses of existing contracts. Below are some specific policies from the list:

(1) Employees need to know the standards of conduct and the possible penalties that may occur if these standards are violated. They should also be reminded of their duty to report waste and fraud.

(2) Procurement actions may not be delegated or assigned to regional or

subordinate offices to avoid proper review, clearance, approvals, or other required controls.

(3) Contracts with former government employees must be closely reviewed,

and conflicts of interest should be avoided under all circumstances. (4) Orders for supplies or services must be approved in advance, unless they

are needed to mitigate an emergency situation. (5) Orders for supplies or services must comply with the agency’s internal

controls, OMB Circular No. A-123, and the Federal Managers' Financial Integrity Act (P.L. 97-255).

(6) Procurements initiated in the fourth quarter of a fiscal year should be limited

to small purchases or to cover unscheduled requirements. Larger procurements should be avoided unless absolutely necessary.

(7) Consult with The Commerce Business Daily, which lists notices of proposed

government procurement actions, contract awards, sales of government property, and other procurement information when making procurement decisions.

(8) Funds are not to be obligated in excess of anticipated needs. Anticipated

needs are based on projections from prior use and current operating levels. (9) The procurement of consulting and advisory services, and modifications of

current consulting and advisory service contracts, must be compliant with 5 U.S.C. § 3109, Federal Acquisition Regulation § 37.2, and OMB Circular No. A-123.


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(10) Purchases from GSA, the Defense Logistics Agency, other central procurement offices, or from the Federal Acquisition Service (FAS), may not exceed current need or inventory requirements.

(a) All requirements need to be validated. (b) Orders cannot be placed if the delivery cannot be made in time to meet

current need or inventory requirements. (c) Unpriced orders or undefined contractual actions may not be used

except in emergencies or unusual situations. If used, they are to be funded at minimum levels to protect the government's interest in subsequent negotiations.

(11) Renovation, moving, or redecorating should only be done when it is

essential to program objectives, required by lease arrangements, is required by statute, or in an emergency to protect the health and safety of employees.

(12) A CBA and a determination that the government is paying fair and reasonable prices must be made for all contracts and contract modifications.

(13) Unsolicited proposals should not be accepted unless they demonstrate unique or innovative concepts not otherwise available or resembling a pending competitive proposal and if they meet essential program requirements.

(14) Procurements may not be divided into smaller payments in order to use small purchase procedures. However, individual items may still be broken out for small business.

(15) Short response times or restrictive requirements may not be used to avoid

open competition or to steer contracts toward favored contractors. (16) Whenever contracts are modified—or supplemental agreements issued—

to procure additional efforts, tasks, items, or services, the additional requirements must be validated. Subcontracting substantial parts of such modifications or tasks may indicate contracts are being used to avoid competition.

(17) Funds for letter contracts may not be obligated in excess of amounts allowed by regulations, nor may they be used solely as a vehicle to obligate funds that would otherwise lapse.

d. The above guidance applies to all types of obligations and accounts.

57. Responsibilities. All GSA officials must ensure that fourth quarter operations are consistent with year-end spending policies. Noncompliance violates the GSA’s system for administrative control of funds, and is subject to disciplinary action.


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a. Regional Administrators and HSSOs ensure that all expenditures are for approved program purposes and comply with good procurement practices.

b. Regional Administrators, HSSOs, the Office of Acquisition Policy (OAP), and the Office of Government-wide Policy (OGP) ensure that all personnel who create or negotiate contracts are informed of all contract and procurement related policies.

c. Regional Administrators, and the Commissioner of the FAS, ensure that purchases made under revolving funds do not exceed the levels required to meet customer requirements or inventory/utilization needs.

d. Various aspects of acquisition management are carried out by the OAP under

the guidance of the Chief Acquisition Officer and the Senior Procurement Executive. The office’s mission is to strengthen Federal acquisition policy and operations. OAP leads positive change in acquisition policy through its role on the Federal Acquisition Regulation Council as well as through GSA acquisition policy, guidance, and reporting to stakeholders.

e. The Office of Government-wide Policy, the Inspector General, and General Counsel, as part of their ongoing responsibility to review all actions for legality and good procurement practices, place special emphasis on fourth quarter transactions.

f. The CFO advises Regional Administrators and HSSOs of annual OMB instructions and policies; establishes internal procedures to review actions for compliance; monitors obligations during the fourth fiscal quarter; and takes action when violations occur. 58. Administrative control procedures. Since the GSA already has a system within its administrative control of funds for preventing or detecting wasteful spending, only a few additional procedures are needed to enforce year-end spending policies.

a. The CFO, through the Office of Budget, monitors the rate of obligations during every quarter, compares that rate to an approved baseline, and reports findings to the Administrator when requested.

(1) For monitoring at the nationwide account level, the baseline for the fourth

quarter is the average of the first three quarters. If this amount is exceeded, components need to demonstrate that the additional obligations are seasonal or for approved program objectives.

(2) At lower operating levels, fourth quarter authority on allowances (or equivalent levels) and operating budget plans is taken as an indication of the level of obligation that is needed to maintain an approved program. Unobligated balances from previous quarters may be spent if they are needed to prevent or recover from a program funding shortage.


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b. Certain types of obligations need to be monitored to ensure that they are consistent with policy. The following examples represent instances that should be carefully examined before budget execution occurs:

(1) Proposed obligations in areas with a high potential for waste or abuse—such as procuring equipment, supplies, or services—need to meet requirements for the fiscal year charged, including reorder lead times.

(2) A proposed obligation for a purpose not normally supported by an

appropriation or account. An obligation that is actually contrary to the purposes of an appropriation would violate statute (31 U.S.C. § 1301).

(3) Cumulative obligations for an object of expenditure that exceed operating budget plans, even those within overall baseline rates. This type of expenditure might imply the use of "found" money2 for unapproved purposes.

c. Monitoring obligation rates against a baseline is only one tool used to prevent waste and abuse. Procedures must also be established as needed to make sure that obligations are consistent with policies. One of the most common procedures is to require that certain types of purchases, or those over a specific dollar amount, need prior approval before being executed.

d. Year-end spending policies and procedures are not intended to prevent the

reapplication of resources to other priorities. However, highlighting all obligations that depart from the spend plan ensures that those obligations have been reviewed and meet funds management policies.

59. Statutory limitations. From time to time, Congress may indicate its concern over possible wasteful year-end spending by enacting statutory restrictions. They usually take the form of provisions in appropriations acts. Breaking these restrictions violates Antideficiency statues.

a. Provisions often limit fourth quarter obligations to a maximum stated percentage of annual availability, regardless of the available unobligated balance. In some cases, the limitation applies to specified periods, such as the last two months of the fiscal year.

b. If such a legal limitation is placed on GSA, it will be distributed on allotments and

allowances as a firm limitation on availability for the period, rather than a baseline for monitoring. Other year-end spending policies would continue to apply.

2 “Found” money: repurposed/re-obligated money was not meant for re-obligation


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PART 11: REDUCING ENACTED AUTHORITY 60. General purpose. There are three ways in which an enacted budget or obligational authority can be reduced or canceled: rescissions, deferrals, and sequesters. The Congressional Budget and Impoundment Control Act of 1974 (Title X, P.L. 91-344: 2 U.S.C. § 681-688), the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (P.L. 100-119), the BEA (P.L. 101-508, 2 U.S.C. § 900 et seq.), and the Apportionment Statute (31 U.S.C. § 1512) are the laws that provide the power to reduce or cancel enacted authority. 61. Deferrals. A deferral is any action or inaction by an officer or employee of the U.S. government that temporarily withholds, delays, or effectively prevents the obligation of a budget authority. Deferrals are initiated within the executive branch.

a. Amounts of enacted authority may be withheld as reserves to provide for contingencies under the Antideficiency Act (31 U.S.C. § 1512(c)), for reasons listed under the Budget and Impoundment Control Act of 1974 (2 U.S.C. § 681-688), or to accommodate other laws. Reserves established under the Antideficiency Act are reported as “deferrals” when they are for contingencies and as “rescissions” when they are to create savings through changes in requirements or greater efficiency of operations.

b. Within GSA, apportioned funds may be temporarily reserved for contingencies

on allotments. The reserves are short-term and are not reported to OMB or shown in apportionments. However, formal deferrals are reflected in the apportionment process and in reports to Congress.

c. The President transmits a special message to Congress whenever enacted funds are deferred, and reports monthly on their status.

d. OMB is responsible for compiling and transmitting special messages and status reports. Agencies are responsible for preparing the deferral report itself; guidance can be found in OMB Circular No. A-11, Section 112.

e. Unless overturned by an act of Congress, deferrals remain in effect for all or part

of a fiscal year.

(1) Deferrals may only be overturned by enacting a full law. Normally these overturns occur in an appropriations act, and not a stand-alone law.

(2) Deferrals are not made for the entire fiscal year if the deferred funds would

lapse at the end of the year (e.g., for annual accounts and the last year of multiple-year accounts).


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(3) A special message cannot defer funds beyond a fiscal year. If funds must be deferred in the next fiscal year, then another special message is transmitted to Congress at the beginning of that year.

f. When budget authority is enacted via a continuing resolution that covers less

than a full year, any executive withholdings—even those proposed for the duration of the resolution—are reported as a deferral. If the resolution covers, or is extended to cover, the entire fiscal year, then withheld funds may be reported as either a deferral or a rescission, depending on the nature of the reserve.

g. Agencies should review all deferrals periodically so that appropriate action is

taken before the year ends.

(1) Deferrals of funds expiring at the end of the year are reviewed around mid-year. If the funds can be used in the remainder of the year, OMB is asked to release them for obligation.

(2) If amounts from deferred indefinite budget authorities, transfers, reimbursements, or recoveries become available at a level less than anticipated, then the difference is normally deducted from amounts apportioned, and not from amounts deferred (unless the approved apportionment allows for a different treatment).

(3) Whenever a deferred amount is not required to carry out the purposes of an appropriation or other authority, it is recommended for rescission as required by law (31 U.S.C. § 1512 and 2 U.S.C. § 683). This is done before the beginning of the fourth fiscal quarter.

62. Rescissions. A rescission is a legislative action that cancels, in whole or in part, a previously enacted budget authority that would otherwise lapse. Rescissions can be proposed by the President or by the Congress.

a. Rescissions are reflected in apportionments. The Congressional Budget and Impoundment Control Act requires the President to transmit a special message to Congress whenever he or she proposes an amount for rescission.

b. Rescissions are proposed when:

(1) All or part of a budget authority will not be required to carry out the full objective or scope of the programs for which it was provided.

(2) All or part of a budget authority limited to a fiscal year (e.g., annual

appropriations or authority for the last year of multiple-year accounts) needs to be reserved from obligation for the entire fiscal year.

(3) Or for other policy reasons.


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c. Unlike a deferral, which remains in force until the end of the fiscal year or other period of availability (or if overturned by Congress), both Chambers must complete action on a rescission proposal within 45 calendar days of continuous session, or the funds will remain available for obligation.

(1) The 45-day period begins the first day after Congress receives a special message, if Congress is in session.

(2) If Congress is not in session when the special message is sent, the first day

Congress convenes starts the 45-day period. (3) If either chamber recesses for more than three days but for a definite period,

the days in recess are not counted. (4) If the second session of Congress adjourns sine die (without date, or for an

indefinite period) before the expiration of the 45 days, the special message is considered retransmitted the first day the succeeding Congress convenes, and a new 45-day period begins the next day.

d. If the rescission fails to pass, then the funds in question become available again.

The Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (P.L. 100-119) Section 207 states that “Funds made available for obligation under this procedure may not be proposed for rescission again.”

e. Congress-initiated rescissions may occur as a result of the reconciliation

process established by the Congressional Budget Act (2 U.S.C. § 641; see Chapter 2, Part 4), or as a result of changing priorities and/or economic conditions throughout the year. 63. Deferral and rescission procedures. For deferrals or proposed rescissions, the President transmits to Congress a special message (or a supplementary message if there is a revision to the information) and cumulative reports listing the status of all deferrals and rescission proposals as of the first day of the month (2 U.S.C. § 683-685). Agencies are responsible for most of the input required for the reports.

a. For special messages, agencies submit to OMB an original and two copies of the following:

(1) An apportionment request (SF 132) that reflects the amount deferred or

withheld pending rescission.

(2) A report on the deferral or proposed rescission (formats are in OMB Circular No. A-11, Section 112).

(3) Proposed appropriation language, if for a rescission.


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b. Rescission or deferral reports briefly describe the affected program and the reasons for the deferral or proposed rescission. They should specify:

(1) The amount being deferred or proposed for rescission. (2) The affected account and the specific projects or functions involved. (3) The reasons why the amount should be deferred or rescinded. (4) The estimated fiscal, economic, and budgetary effects of the deferral or

proposed rescission. (5) The effect of the deferral or rescission on the objects, purposes, and

programs for which the amount was provided. (6) Any other relevant facts, circumstances, or considerations. (7) In the case of a deferral, the time that the amount will be withheld and the

legal authority on which it is based.

c. The above materials are to be submitted when apportionment requests are made to OMB or if OMB suggests changes in, or initiates, rescission proposals or deferrals.

d. If the information in a special message is revised, agencies submit an original and two copies of a supplementary report explaining the change, a revised rescission or deferral report, revised language if a rescission proposal and, if appropriate, a reapportionment request.

e. OMB is responsible for preparing cumulative reports on the status of deferrals and rescission proposals. Agencies notify OMB when all or part(s) of an agency’s deferrals are released (ready to be apportioned).

f. Agencies need to take action when Congress acts on deferrals or rescissions.

(1) When Congress enacts legislation to overturn an executive deferral, agencies must promptly release the affected amounts. A reapportionment request should be submitted to OMB within 24 hours following enactment of the legislation.

(2) If Congress rescinds the exact amount proposed, then a reapportionment is

not required. Reductions in budget authority can be reflected on later schedules submitted for other reasons.

(3) If Congress fails to act on a rescission proposal within the 45-day limit, or if

Congress rescinds an amount that differs from the President's proposal, then


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reapportionment requests must be submitted OMB upon completion of Congressional action.

g. The following applies to Congress-initiated rescissions:

(1) When initial apportionment action is incomplete before the rescission, and there is time to revise the apportionment request (i.e., within 30 days after the enactment of the appropriation bill), the agency or OMB changes the initial SF 132.

(2) When there is insufficient time to adjust the initial SF 132, the agency must

submit a reapportionment request within five calendar days after the enactment of the rescission. The agency must ensure that the reduced appropriation is not exceeded.

h. OMB Circular No. A-11 discusses procedures and formats in detail, and explains how different situations are reflected on SF 132 forms.

64. Sequestration. A sequester is the permanent cancellation of non-exempt budgetary resources (new budget authority, unobligated balances, obligation limitations, etc.) provided by discretionary appropriations or direct spending legislation. It is similar to a rescission, except that it is an automatic process and a new act is not needed to cancel the authority.

a. The concept of a sequester was created in the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA) (P.L. 99-177) (often called Gramm-Rudman-Hollings Act). It was modified by the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (P.L. 100-119). It was amended again as the Statutory Pay-As-You-Go Act of 2010 (PAYGO Act). In the original act, sequestration was triggered by a recommendation from the Comptroller General. After the Supreme Court declared this unconstitutional in July, 1986, the 1987 act set up an alternative process based on action by OMB.

b. The BEA (P.L. 101-508) further defined the sequestration process. Its provisions were extended through 1998 by the Omnibus Budget Reconciliation Act of 1993.

(1) The BEA made a distinction between discretionary spending and spending that resulted from substantive law (e.g., entitlements), and set separate control procedures for each.

(2) The BEA allows for annual caps on discretionary spending to be adjusted

for economic considerations.

(3) The Statement of the Managers that accompanied the BEA identified which accounts were discretionary and which were mandatory, and set rules on how certain kinds of actions would be "scored". It also exempted certain accounts from sequester, or limited the reductions that could be applied to them.


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c. A sequester happens when enacted appropriations exceed the discretionary budget authority or outlay caps for that year, or when changes in law that increase direct spending or decrease receipts are not fully offset (called a PAYGO sequester). A sequester uniformly reduces all nonexempt accounts by the percentage needed to eliminate the amount exceeding the discretionary cap, or by the amount that has not been fully offset under mandatory accounts.

d. The President’s Budget for a sequester year will include a “Preview Report” by OMB that discusses the status of discretionary appropriations and PAYGO legislation as of the preceding December 31. It also explains any differences between the Congressional Budget Office’s (CBO) recommendations and OMB’s ideas regarding how the discretionary spending caps should be adjusted.

e. The Preview Report uses the same economic and technical assumptions underlying the President’s Budget. An “Update Report” is issued afterward, and a “Final Report” is issued 15 days after the end of the Congressional session. Both these reports use the same assumptions as the Preview Report, unless estimates have been affected by laws passed in the meantime.

f. Seven days after the enactment of an appropriations act, OMB submits a BEA Report to Congress estimating the budget authority and outlays provided by the legislation for the current and budget years. The report also includes CBO estimates, and explains any differences. The OMB estimates are then used in all subsequent calculations to determine if caps have been exceeded and if a sequester is required.

g. The first determination of whether a sequester is necessary for a given fiscal

year is when OMB issues its “Final Sequestration Report”, 15 days after the end of a Congressional session. In theory, this would be near the beginning of the next fiscal year. Monitoring begins anew when Congress reconvenes.

h. Appropriations for the current fiscal year that would exceed caps trigger an

immediate sequester if enacted before July 1 (first day of the fourth quarter). If this occurs, a "within-session" sequestration report and a Presidential sequestration order are issued. A within-session sequester is only caused by newly enacted appropriations. Re-estimates of budget authority and outlays for already-enacted funds cannot trigger a sequester.

i. For a caps breach resulting from appropriations enacted after July 1, reductions needed to eliminate the breach are not applied to the current year, but are instead deducted from the caps for the following year.

j. If either the discretionary budget authority or outlay caps are exceeded, then an

across-the-board reduction of all eligible budgetary resources is required to eliminate the breach.


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(1) For certain special-rule programs, the reduction is limited to two percent. Once this limit is reached, the uniform percentage reduction for all other sequester-eligible resources is increased to a level sufficient to achieve the required reduction.

(2) If both budget authority and outlay caps are breached, then the sequester eliminating the budget authority breach takes priority. If estimated outlays still remain above the cap, then further reductions in budgetary resources are required.

k. Procedures for direct-spending, or mandatory, accounts are different.

(1) The BEA defines “direct spending” as any budget authority provided by laws other than appropriations acts, entitlement authorities, and the Food Stamp Program. In the GSA, this pertains to permanent appropriations.

(2) Section 251A of BBEDCA requires sequestration of nonexempt mandatory budgetary resources for fiscal years 2013 through 2021, commonly referred to as a Joint Committee sequestration. Subsequently, this sequestration was extended through 2024 at the percentage reduction that would apply for 2021.

(3) BBEDCA requires annual reductions to the discretionary caps for fiscal years 2016 through 2021. This is not the same as sequestration, but as described above, a breach of the discretionary caps could trigger sequestration pursuant to section 251(a) of BBEDCA.

l. In the event of a sequester, OMB calculates the uniform percentage decrease and notifies agencies of reductions by account. PART 12: FULL-TIME EQUIVALENT EMPLOYMENT 65. General purpose. Whenever personnel numbers are shown in budget schedules, they are usually expressed in terms of full-time equivalents (FTEs). FTEs are the basis for employment control.

a. An FTE is the total number of regular hours worked by employees, divided by the number of compensable hours in each fiscal year.

(1) FTEs do not include time that employees are in unpaid status (e.g., leave

without pay), but does include "nonproductive" time for annual, sick, administrative, training, or other leave (with an exception for sick leave in excess of 30 days for employees awaiting disability retirement). Overtime and holiday hours worked are not part of FTE, but are sometimes separately reported in budget schedules.

(2) To determine current year and budget year FTE employment estimates, divide the estimated total number of regular hours by the number of compensable hours in each fiscal year. However, in order to take advantage of existing payroll data,


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agencies may compute prior year FTE actuals using the regular hours obtained from their pay systems (normally based on 26 bi-weekly pay periods) and divide by a constant 2,080 hours. Table 2 below shows an example of compensable days and hours for several fiscal years.

Table 2: Compensable Days and Hours for Certain FYs

b. FTEs measure cumulative manpower applied over time. Although sometimes used as a synonym for average employment, it is not an average of the number of employees, but rather the sum of their collective time in “pay status”. An FTE is sometimes called a “staff year” or “work-year”.

(1) For example, 208,000 hours worked by the end of a 260-day fiscal year

(208,000 hours divided by 2,080) is equal to 100 FTEs. This sum is the same irrespective of how many employees were on pay status throughout that year.

(2) 100 FTEs could equal 200 employees each working half-time; or 150 employees, if 50 work full-time hours and 100 work half-time; or an infinite number of other combinations.

c. Employment changes affect FTEs in proportion to the time that personnel are on

pay status. The later in a fiscal year that an employee leaves or begins work, the less of an impact they make on that year’s FTE count.

d. In a stable environment, FTE tends to be below the number of onboard personnel because some employees may be in leave-without-pay status, and because vacant positions do not accumulate FTE. 66. Employment controls. To promote the most effective use of government resources, and to ensure that the executive branch agencies comply with FTE levels in the Federal Workforce Restructuring Act of 1994 (P.L. 103-226: 108 U.S.C. § 111), OMB uses the budget process to establish firm annual FTE employment levels for each agency. Agency heads are responsible for keeping employment within assigned levels.

a. Before 1979, Federal employment was allocated and administered based on year-end strength. In 1979, the GSA and four other agencies began a pilot project to test personnel management and control based on FTE employment. In 1982, the entire government converted to an FTE-based personnel management system.


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b. OMB uses FTE ceilings to limit total compensable work-years for each agency. Different employment categories have been excluded from FTE control at different times. Initially, two separate ceilings were provided: one for full-time permanent (FTP) employment, and a more general FTE ceiling. The separate FTP ceiling no longer applies, although its status continues to be reported alongside total FTE.

c. OMB Circular No. A-11 states that "each agency head will ensure strict

observance of total approved employment levels for his or her agency." OMB also requires agencies to submit a plan for FTE usage per reporting period.

d. Approved employment is determined through the budget process. Agency

budget requests in September show both dollar and FTE resources needed to accomplish programs.

(1) FTE requirements take into account both seasonal variations and

employment trends. FTE is related to, but does not necessarily correspond with, end-of-period onboard numbers reported to OPM on the SF 113A “Monthly Report of Federal Civilian Employment”.

(2) OMB approves FTE levels for the budget year and planning ceilings for the out-years. OMB may also revise the approved level for the current fiscal year in process.

e. Adherence to approved FTE levels is officially measured by OMB.

(1) Each fall, agencies will submit a current-year FTE usage plan that is consistent with the President’s Budget in response to an OMB Budget Data Request. If an agency does not submit a plan, OMB assumes that usage is evenly distributed throughout the fiscal year.

(2) Plans are revised if approved FTE levels change, actual data for the agency exceeds the most recent plan, or if requested by OMB.

f. When requested, progress is measured from FTE data submitted to OMB.

g. Approved FTE levels, and reports that measure performance, are the sum of the FTEs of all employment categories (part-time, full-time, temporary, or permanent), unless exceptions are cited. An employee’s position (i.e., job title) does not determine an employee's category. 67. FTE administration. It is the responsibility of each agency head to ensure that employment is kept within approved FTE levels. FTE levels are firm administrative ceilings that may not be exceeded. Because of this, employment limits are assigned to all GSA units.


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a. In the GSA, the responsibility for administration and control of FTE ceilings is delegated to the CFO.

b. When OMB provides approved current- and budget-year FTE levels, the CFO

distributes them by unit. c. OMB FTE levels are usually applied to the agency as a whole, and may be

redistributed internally. Usually, they are distributed in the same way as in the budget, unless otherwise required.

d. Normally FTE ceilings are assigned for all programs and accounts of each GSA

service, the Inspector General, and the staff offices in aggregate. These GSA units distribute them as necessary by account or subordinate organization.

e. If required by circumstances, OMB guidance, or agency policy, the CFO may

assign FTE limits to specific accounts or programs instead of by unit. f. The CFO may allocate FTEs through allotments and allowances, by

memorandum, or by less formal methods when necessary to prevent the agency, or parts of the agency, from exceeding their assigned maximum FTE levels. Exceeding an assigned FTE level violates the GSA's system for the administrative control of resources.

g. The Office of Budget regularly measures the current status of paid FTE to other

financial data, and projects FTE for the year.

(1) Like the SF 113G, the analysis is based on a 260-day year, divided into 26 pay periods of 10 days each. Each month's report shows the actual FTE generated in the last period (two pay periods, or 20 days, except that two of the reports will cover 30 days), and the cumulative FTE generated to date.

(2) The information is organized by service or office, by fund code, and by region; it is further broken down by FTP and total employment.

(3) The report also projects for each SSO the total annual FTE that would result if employment did not change for the rest of the year. This is a useful reference for determining if current employment levels are consistent with assigned FTE ceilings.

h. If employment circumstances or requirements change, units may ask the CFO to revise assigned FTE. Increases should only be requested when absolutely necessary, because they generally must be offset by decreases to other units.

(1) Under normal circumstances, OMB will only revise the agency's ceiling when examining budget submissions for the following year. Current-year FTE revisions are considered when new situations arise that absolutely require an increase in FTE.


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(2) In addition to justifying the need for additional staff resources for a unit or program, the agency must also indicate why the increase cannot be absorbed through an internal adjustment, and why the need cannot be postponed to the next fiscal year. 68. FTE management. Managing employment through FTE has advantages over other employment controls, but it does require an integrated resource management system.

a. Like dollars, FTE is an applied resource, and the two are treated in the same fashion. FTE is adjusted to correspond to funding changes and any unit or program that requires additional funding might also gain additional FTE.

b. A program manager has the flexibility to determine how to best apply this total resource package. Both the number and mix of permanent, temporary, and intermittent employees can be adjusted as needed to meet cyclic or changing requirements, provided that the resulting FTE does not exceed the FTE ceiling and available funds. Resources can be shifted among activities to maintain the most effective balance between personnel and funding.

c. There are limitations on this flexibility, such as:

(1) The original FTE concept assumed that a substantial portion of the governmental workload would be accomplished by part-time and temporary employees. When most employees are in the FTP category, shifting them among programs may not be easy or possible. Also, once employed, they continue to generate FTE throughout the year.

(2) FTEs must be constantly monitored to ensure there is enough time to make needed adjustments. Employment changes do not affect FTE already accumulated, and they have a decreasing FTE impact as the fiscal year progresses.

(3) A manager must ensure that personnel adjustments are consistent with probable FTE levels for the next year. For example, mass hiring in the last month of a fiscal year may have a minor impact on that year's FTE ceiling, but could exceed FTE ceilings for the next fiscal year. PART 13: CENTRALIZED COMMON COSTS 69. General purpose. This part discusses policies and procedures used to budget and pay for certain types of common costs.

a. Performing units sometimes submit consolidated bills that apply to a number of units or accounts. Since it is not always possible or practical for individual users to separately budget and pay for single costs, centralized procedures are used to ensure that adequate resources are budgeted, and that payment is handled in the most efficient and economical manner.


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b. When it is not possible to determine the actual cost for each component, or when known costs need to be distributed to subsidiary organizations and accounts, centralized procedures are used to distribute the total in a predetermined manner; these are referred to as "centralized charges”.

c. These “centralized common costs” procedures are also used to facilitate the

accrual and recording of obligations and to centrally pay for consolidated billings. d. This part generally applies to GSA charges that are centrally administered at the

nationwide level, but these policies also apply to regional situations. 70. Policies for cost distribution. Methods of cost distribution may vary, but they all follow these basic principles:

a. All costs distributed to an account must be chargeable to it.

(1) Appropriations are applied to the purposes for which the appropriations were made, unless otherwise provided by law (31 U.S.C. 1301)(link: http://www.gpo.gov/fdsys/pkg/USCODE-2010-title31/pdf/USCODE-2010-title31-subtitleII-chap13-subchapI-sec1301.pdf). Costs may not be distributed to an appropriation account that does not provide that type of service.

(2) If an appropriation specifically provides for the entire cost of a service, distributing costs to other financing sources is an illegal augmentation. Furthermore, if an appropriation made for a specific purpose is exhausted, the excess costs cannot be charged to other appropriation accounts.

b. If distributions do not reflect actual costs, then they should reflect the benefits derived from a service. Each unit, program, and account that benefits from a service pays a share of the total cost.

c. Once a cost distribution formula has been established for a fiscal year, it normally does not change. Amounts charged to an account could vary if total costs change, but the percentage of the total that the account is responsible for does not. This promotes budget stability.

d. Any revisions to the cost distribution formula are budgeted for the next fiscal year, and are not retroactive.

e. Cost distribution formulas are used for significant, recurring requirements.

(1) In cases of ad hoc tasking, responsible offices absorb total costs and try to seek additional funds before distributing charges to other units.

(2) When the cost of a recurring common service is small, units take turns paying the total rather than distributing the cost of each occurrence. Examples include

http://www.gpo.gov/fdsys/pkg/USCODE-2010-title31/pdf/USCODE-2010-title31-subtitleII-chap13-subchapI-sec1301.pdf

http://www.gpo.gov/fdsys/pkg/USCODE-2010-title31/pdf/USCODE-2010-title31-subtitleII-chap13-subchapI-sec1301.pdf


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the costs of annual charitable campaigns, routinely scheduled meetings, conferences, open houses, etc.

(3) Since the intent of these policies is to promote equity and budgetary stability, exceptions may be made if other approaches better achieve this end. 71. Procedures. The following discusses how the C.O. budgets and pays for centrally-administered nationwide costs. Paying for regional services is handled similarly.

a. During budget formulation, units make sure that estimates provide for the expected costs of common goods and services.

(1) For some services, the performing unit first establishes total amounts to be

charged that year. The Office of Budget then provides GSA units with the amounts that apply to them, based on information from the performing unit or an existing cost distribution formula.

(2) When a performing unit sets rates, rather than firm amounts, receiving units

develop estimates by applying the rates to the expected level of service or activity. Units will also develop estimates for costs that will result from activities they control.

b. The budgeted cost distribution, unless adjusted by authorities, is the basis for

calculating bills during program execution. c. At the beginning of the execution fiscal year, the Office of Budget notifies units of

their shares of the estimated costs for all centralized charges, and requests any additional information needed to obligate and disburse the funds.

(1) The WCF is used as a vehicle to record these distributions and charges.

(2) SSOs provide Pegasys document numbers and cost codes distributing the totals among their corresponding accounts. SSOs validate and retain the Pegasys documents as part of their files.

(3) The Office of Budget informs the United States Department of Agriculture (USDA) Financial Information and Operation Division of the distribution formula, so they may use them as the basis to perform accruals. These monthly accrual charges are income to the WCF. Obligations are accrued at approximately the same rate.

d. Once centralized charges and their distributions are established for a year, they are not revised unless circumstances require a major change. If this happens, the revised amounts are distributed on the same basis as previously described in Paragraph 71 sections “a” through “c”, and the Office of Budget advises the SSOs and the USDA Financial Information and Operation Division of the revised distribution.


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e. In cases where multiple cost codes are used, requests for adjustments are made in the second and third full weeks of July and September, respectively. Exceptions require the approval of the applicable Controller and the concurrence of the Director of Budget. 72. Centralized common services. The following are examples of nationwide GSA costs that are centrally-administered:

a. Payments to the Employee Compensation Fund. Agencies are required to include budget estimates for the amount billed by the Employment Standards Administration of the Department of Labor (DOL) for benefits paid to employees for job-related accidental injury, disability, or death. This is also known as "Worker's Compensation”.

(1) For this fund, actual costs are known for each component, and centralized

procedures are used to distribute them by account. The program is administered nationwide from the C.O. by the Office of Human Resources, with the support of the Public Buildings Service (PBS).

(2) On or before August 15 of each year, GSA is billed for actual payments

made from the Associate Compensation Fund during the preceding year (measured from July 1 through June 30). GSA revolving funds—except for the FBF—accrue worker’s compensation costs during the current FY. Appropriations and the FBF include these costs in upcoming budget requests (for example, costs for July 1, 2013, through June 30, 2014, were included in the fiscal year 2016 budget).

(3) The DOL is reimbursed at the beginning of each fiscal year or within 30

days after appropriations are enacted, whichever is later. Obligations are accrued monthly, and the billing is disbursed in lump-sum.

b. Unemployment compensation. The DOL reimburses each state for the cost of

unemployment compensation paid to former Federal employees. The Omnibus Reconciliation Act of 1980 (P.L. 96-499), requires that agencies reimburse the Unemployment Trust Fund for the cost of all claims paid after December 31, 1980. GSA's nationwide costs, plus certain contractor management costs, are budgeted and paid at the account level in the C.O. This program is administered by the Office of Human Resources Management.

(1) Actual total agency costs are known, and centralized procedures are used

to distribute them by component and account.

(2) An initial distribution is established based on prior experience. The DOL bills GSA quarterly for claims paid in the previous quarter and reimbursement is due within 30 days. The Office of Budget uses these billings to adjust previous cost distributions and obligation accruals.


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c. Health services. Based on a continuing agreement with the Department of Health and Human Services, GSA reimburses the Public Health Service for operating on-site health care facilities. Each region and C.O. centrally administers and pays the costs.

(1) Annual total amounts are based on the types of services contracted for

GSA. The negotiated amount does not change during the year unless a supplemental billing is made. The Office of Human Resources administers this program through the C.O.

(2) Total costs in the GSA/Public Health Service agreement are distributed by

SSO based on employment ratios in the buildings to which they apply. The Central Office pays for the GSA’s main building. C.O. units in other buildings are separately billed and provide separate accounting data.

(3) During budget formulation, units base estimates for the budget year on past

costs, adjusted for inflation and projected employment changes. (4) If an agreement is not signed by the beginning of the fiscal year, cost

distribution and obligation accruals are based on the same formula mentioned in (3), above. This distribution is adjusted once the cost agreement is known and when a supplemental billing is received.

d. Network Services 2020 (NS2020). Is a nationwide GSA long-distance telephone service provided by contract. Costs are budgeted and paid at the account level by the C.O. The NS2020 uses the Information Technology Fund to bill customers, pay contractors, and recover management and overhead costs.

(1) Charges are based on actual use, i.e., any calls placed by GSA

components. There is a two-month billing lag; however, the Office of Budget provides a list of charges to each component on a monthly basis. Final reconciliations are made the following year.

(2) The initial distribution of long-distance costs to components is based on a twelve-month analysis of “call detail data” developed by the Space, Mail, and Telecommunications Branch of the Administrative Operations Division, OHRM. Since call detail data is not available for all locations, some estimates are used.

e. Postage and fees. All costs for official mailings are paid to the U.S. Postal Service (USPS) and the Centralized Administrative Support Units (CASU). This program is administered by OGP.

(1) The Office of Budget provides units with guidelines for budget formulation, particularly if significant variations from past trends or rate changes are expected.


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(2) During the execution year, an estimated total cost is established based on past actual data and anticipated changes, and units distribute the total by account. Actual costs are reported by USPS and CASU based on mail meter readings.

(3) The distribution is periodically modified based on reported actual data. Final

actual costs are known, and the accounts reconciled, in the second quarter of the following fiscal year.

f. General-use printing: This centralized cost covers the GSA’s general-use forms,

letterheads, pre-printed envelopes, manuals, catalogs, telephone directories, press releases, newsletters, annual reports, Congressional justifications, and other printing that benefits GSA users.

(1) General-use printing costs are estimated by the OGP. (2) Distribution of printing costs is based on FTE ratios. The distribution

formula is usually weighted to favor certain personnel categories, such as administrators.

g. Rent payments to the Federal Buildings Fund. Currently, PBS uses two billing methods to collect rent income. They are the Department of Treasury’s Intragovernmental Payment and Collection system (IPAC) and the GSA Billed Office Address Code (BOAC) system.

(1) IPAC is an automated billing and collection system accessed through the Government Online Accounting Link System II (GOALS II) maintained by the Department of Treasury. Approximately 95% of all rent receipts are collected using the Treasury IPAC system.

(2) The second billing system is the BOAC, a manual payment system where

agencies pay for goods and services with Treasury checks or a “Voucher and Schedule of Withdrawal and Credit” (SF 1081). Generally, DOD agencies are on this system. Payments made using the SF 1081 must be recorded by the paying agency on their “Statement of Transaction” (STF 224) by their finance office.

(3) GSA encourages the use of the automated IPAC system. It provides a

faster method of paying and resolving billing issues, reduces paperwork, and allows for rapid transfer of funds.

(4) Bills for both systems are calculated on the 15th of every month. A record

of the bill, and of the IPAC transaction (if applicable), is made available to the customer shortly afterward.

(5) With IPAC agencies, payment is made through the IPAC system the week

the rent bills are made available. BOAC agencies should pay as soon as they receive their rent bills.


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(6) At the beginning of every fiscal year, each GSA SSO distributes enacted amounts by fiscal quarter and fund source, and then gives the information to the Office of Finance. Whenever bills are received, amounts are automatically obligated based on this accounting distribution.

(7) For GSA space that is occupied by GSA components, the Office of Finance provides units with copies of bills reflecting their current space assignments. These space assessments are transmitted to regional offices for analysis and comment. Any space assessments disputed by operating components, or any forecast changes in space utilization, are resolved between the C.O. and PBS. Any changes made as a result are incorporated into a later or year-end reconciliation bill. PART 14: FUNCTIONAL TRANSFERS 73. General purpose. This part describes policies and procedures for moving resources associated with the transfer of functions among organizational units or accounts.

(1) The use of appropriations is limited to the purposes for which they were enacted (31 U.S.C. § 1301). However, they may be adjusted when a purpose or activity financed in one account is proposed to be permanently financed in another. This may occur to consolidate appropriations, distribute financing of an activity between two or more accounts, transfer functional responsibility, or align funding with changes in organizational structure.

(2) This is not the same as a reprogramming, which is where funds are moved between accounts within a year to meet special needs (see Chapter 3, Part 2, Paragraph 11). 74. Authorities. By law, the President and heads of executive agencies have the authority to reorganize or transfer functions and activities among components. This basic authority may be augmented from time to time in legislative or appropriations acts.

a. The Federal Property and Administrative Services Act of 1949 (amended) authorized the Administrator of General Services "in his discretion... to regroup, transfer, and distribute...functions within the General Services Administration.... (and) to transfer the funds necessary to accomplish said functions and report such transfers to the Director of the Office of Management and Budget." (40 U.S.C. § 754).

b. External to GSA, the authority to move associated funds is in 31 U.S.C. § 1531.

(1) An appropriation available for a specific function or activity that is transferred by law may be used by the gaining organization or unit for the same purposes.


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(2) For transfers within an agency, the head of the agency determines, with the President's approval, the amount to be transferred with the function. For transfers between executive agencies, the President decides the amounts to be transferred.

(3) Transferred amounts are credited to and merged with the receiving

account, and the sum is counted as one amount. c. The same policies and procedures generally apply to manpower resources (i.e.,

FTE) dedicated to a function or activity.

75. Policies. Since agency heads determine transfer amounts with the approval of the President, proposals to move funds along with functions between agencies or accounts require OMB concurrence through either the budget or apportionment process.

a. Where possible, proposed functional transfers are included in the agency's September budget submission to OMB. Most often, they are proposed for the upcoming fiscal year, and are reflected in budget materials for the current and future planned fiscal years. If approved, programs are executed on the new basis from the beginning of the first applicable year.

b. Off-cycle transfers are to be avoided. They involve fractions of annual

requirements, disrupt the orderly flow of program execution, and may cause other unforeseen budgetary problems.

(1) If there are compelling reasons to make an off-cycle transfer of function,

there must be enough lead time to prepare necessary documents, obtain OMB approval, and make changes to the payroll and accounting systems.

(2) If possible, the transfer is made effective at a conveniently divisible part of

the year, such as at the beginning of a fiscal quarter, a pay period, or other accounting period.

c. A functional transfer is not a budget expedient to overcome temporary resource

problems, but rather a management decision used to facilitate the most efficient or economical method of accomplishing a mission.

(1) Accounts may not benefit from a transfer. If more than the balance of resources available for a purpose is transferred, the gaining account is illegally augmented; if less, the losing account is unlawfully subsidized.

(2) When the amounts enacted for a function or activity are not specifically identified within an appropriation, a fair and reasonable value that reflects the amounts that would have been applied to the purpose under the losing account is transferred.

d. These policies also apply to transfers that involve different types of funding.


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(1) If responsibility for a function changes, off-cycle, from an appropriated to a non-appropriated (e.g., revolving fund) source, then the gaining fund bills the appropriation for the amount required. Later in the fiscal year, the function is dropped from the appropriation and becomes entirely supported by the revenues of the gaining fund.

(2) When the gaining account is an appropriation fund, it is reimbursed during

the current fiscal year from the losing non-appropriated source. Afterwards, the account relies on new budget authority from appropriations.

e. When a function is transferred, the gaining unit is normally responsible for

negotiating an agreement on the resource amounts to be transferred and for ensuring that necessary budget and execution steps are coordinated. Transfers are implemented by an agency or executive order, or by a written agreement between affected parties. 76. GSA procedures.

a. When the Administrator approves an internal functional transfer, the affected GSA units must agree to the FTE and dollar resources to be transferred. If the parties cannot agree on the amounts, then the CFO arbitrates a solution. The HSSO may also appeal an arbitrated solution to either the CFO or the Administrator.

b. After transfer amounts are finalized, the Office of Budget ensures that they are

properly reflected in budget materials, and that FTE levels are adjusted. c. The Office of Budget also includes the transfer on apportionment and

reapportionment requests.

(1) Amounts are added to or subtracted from accounts based on the effective date of the transfer.

(2) Changes between appropriation accounts are shown as net transfers to budget authority and, if applicable (usually for multiple-year accounts), as unobligated balances. When filling out the corresponding SF 132, be sure to include a footnote indicating the authority for the action.

(3) A transfer to an appropriated account from a non-appropriated account does not involve obtaining new budget authority, and is shown as an increase to anticipated reimbursements and other income.

(4) Transfers to non-appropriated accounts are included on the SF 132 as part of anticipated reimbursements and other income. If an appropriation is the source, its respective SF 132 is not adjusted because the budget authority will still be obligated under that account.


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(5) As a convenience, and with the CFO's approval, transfers that are effective for most of the year may be treated as a full year transfer by moving both the obligated and unobligated balances of availability.

d. When apportionments and reapportionments are approved, the Office of Budget

and the Office of Finance take further implementing actions, such as:

(1) Establishing a new account structure and coding with the Treasury. (2) Requesting cash warrants from the Treasury. (3) Transferring resources with an SF 1151. (4) Including the transfer on allotments and allowances. (5) Accruing obligations on a predetermined basis to reimburse non-

appropriated accounts. (6) Reflecting the transfer on the monthly SF 133, “Report on Budget

Execution”. PART 15: OUTLAYS 77. General purpose. Outlays are checks issued, interest paid on public debt, advances to others, net refunds and reimbursements, or other payments made. Here, the terms "expenditure" and "net disbursement" are used interchangeably.

a. Traditionally, primary emphasis during the budget process has been placed on budget authority and obligations because they are the basis for enacting and controlling resources. Outlays, however, have taken on an increasingly important role in determining budget policy and appropriations enactment.

b. Since outlays are a form of spending, they directly influence the Federal deficit.

(1) A budget deficit results when spending (outlays) exceeds income. Limiting or reducing a deficit requires increasing income and/ or reducing spending authority.

(2) BBEDCA (P.L. 99-177) set decreasing maximum deficit levels for each fiscal year, leading to a zero deficit; it was updated and extended by the BEA of 1990 (P.L. 101-508). However, most of these requirements expired in 2002. The Statutory Pay-As-You-Go Act of 2010, which did not amend BBEDCA, reinstated a statutory pay-as-you-go rule for revenues and mandatory spending legislation. The Budget Control Act of 2011 (BCA), which amended BBEDCA, reinstated discretionary caps on budget authority.


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(3) The BEA prevents the President from submitting, or Congress from adopting, a budget that would result in exceeding budget authority and outlay limits for each year. It also requires that previously enacted authority be reduced if it cumulatively causes the limits for a year to be exceeded. This is discussed in Chapter 2, Parts 1 and 4, and Chapter 3, Parts 1 and 11.

(4) Outlay estimates are not used as ceilings because they result from, rather than generate, budget activity. Yet, it is important to accurately estimate outlays in the budget, because the estimates can directly or indirectly influence amounts of budget authority that can be provided.

(5) During budget formulation, program outlay rates may be compared to each

other to determine the most effective mix of programs that can be achieved within a fixed outlay target. 78. Estimating outlays. Agencies are responsible for accurately estimating outlays.

a. Outlay estimates are developed for each GSA account when the annual budget is submitted to OMB, and are revised throughout the year as necessary.

b. Outlays result from liquidating obligations made during a fiscal year.

(1) When estimating outlays, any time gaps between the incurring of obligations and the receipt of, and payment for, goods and services must be fully accounted for.

(2) Estimates must also take into consideration the viability of obligations (i.e., the likelihood that unliquidated obligations will have to be paid).

(3) Spend-out rates—the amount of outlays from new budgetary resources made available compared to the total of new budgetary resources, expressed as a percentage—and outlays resulting from balances of prior-year budgetary resources should be consistent for each budget account. For example, an account that historically outlays 80 percent of its funding should continue that assumption.

c. Yearly gross obligations are offset by any income received that is properly creditable to the account by law or OMB policy. This includes reimbursements, payments to revolving funds, collections, or other income.

d. Outlays are not always positive. Negative outlays (expressed as a negative number under "obligations incurred, net”) result when receipts, reimbursements, or other income during a year exceed gross new obligations and the amount of obligated balances liquidated. This most often happens under revolving funds.

e. Outlay estimates in the budget are revised whenever adjustments to requested authority will increase or decrease obligations, and when anticipated reimbursements or other income factors change.


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f. Outlay calculations in the budget are usually handled automatically through OMB's MAX system. Detailed instructions are in OMB Circular No. A-11. 79. Reporting outlays. OMB Circular No. A-11 requires agencies to prepare and report a monthly outlay plan for each new fiscal year. This assists OMB in monitoring spending, and improves the Treasury Department’s forecasts for cash operating balances, borrowing requirements, and debt. Realistic estimates allow the Treasury to borrow the minimum amount needed to finance activities, which reduces interest and the level of cash balances maintained.

a. Estimates are based on the best judgment of amounts to be spent each month over the period covered by the report. They are usually consistent with the President's most recent budget or Mid-Session Review (MSR) base, updated to reflect recent or upcoming Congressional actions. They also reflect recent trends and expected events. Agencies are required to contact OMB and Treasury whenever there are significant changes in outlay trends or patterns.

b. A brief statement may accompany each report to explain the assumptions used and any unusual or special circumstances affecting them. Statements may also describe what may occur if anticipated actions fail to happen. Any large ($50 million or more) cash payment or receipts that occur on a single day must be reported.

c. Report information is basically the same as what is in annual budget documents,

including information for all appropriations and funds administered by the agency. Most of GSA’s data can be summarized by the following categories:

(1) Real property activities. (2) Supply and technology activities. (3) General activities. (4) Deductions for offsetting receipts. (5) Total outlays for the agency.

d. Four outlay reports are required (formats are listed in OMB Circular No. A-11).

All reports are electronically submitted to OMB and the Treasury Office of the Fiscal Assistant Secretary/Office of Fiscal Projections. The Office of Budget prepares and submits them for the GSA, based on input from all SSOs.

(1) By October 1, the agency must provide initial monthly outlay estimates for

the current year (October through September). Agency estimates are compared to amounts in the MSR.


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(2) In early to mid-January the estimates for the remainder of the current year (December to September), the October to September budget year estimates, and the October to November actuals are due. Agency estimates are compared to amounts in the MSR.

(3) In late March/early April the estimates for the remainder of the current

year (March to September), the October to September budget year estimates, and the October to February actuals are due. Agency estimates are compared to amounts in the President’s Budget.

(4) In late June/early July the estimates for the remainder of the current year

(June to September), the October to September budget year estimates, and the October to May actuals are due. Agency estimates are compared to amounts in the President’s Budget.

e. In addition to explaining the difference between the latest public estimates and

those of the agency, each update also reconciles any differences from previous reports.


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CHAPTER 4: FINANCING GSA OPERATIONS PART 1: OVERVIEW

1. General purpose. The GSA was established on July 1, 1949, in section 101 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. § 471 et seq.). The Act granted the GSA a variety of administrative and real and personal property functions previously assigned to other Federal agencies. Later laws and executive orders have modified many of the original functions, and added new ones. This chapter deals with current, ongoing GSA funds, and does not discuss nonrecurring or special purpose accounts, or former GSA units that are no longer part of the agency.

a. This chapter describes how current GSA organizations and programs are funded. Although the nature and sources of financing do not change much from year to year, they are not static. Governing statutes may amend the types or authorities of accounts. Accounts may also be added, deleted, or modified by Congressional appropriation action.

b. Additional information can be found in various GSA Budget Digests, documents

that correspond to each fund and are periodically updated and issued by the Office of Budget, which traces the history and evolution of all GSA accounts since agency inception.

c. The funds listed in this chapter are not in any particular order. 2. Sources and types of financing. GSA activities are financed from four basic sources: appropriations; customer funds (either as reimbursements or through the agency's revolving funds); rental payments under the Federal Buildings Fund (FBF); and receipts or other income. Some types of funding become automatically available for use, while others require Congressional action.

a. Appropriations finance both ongoing mission costs and special, non-recurring requirements. They are enacted via Congressional action and provide sums for specific time periods. Most appropriations are annual (enacted for and expiring after one fiscal year).

b. Most of GSA's annual financing is provided by customers via direct

reimbursement or through revolving funds. A majority of these funds become available without the need for direct Congressional action.

(1) Reimbursable work is performed either under appropriations (for customers

not directly supported by accounts), or under the FBF (for services over and above the standard level provided in return for rental payments). Obligations/costs under these direct accounts are liquidated by payments from ordering units.


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(2) Customers pay for goods and services provided under GSA's revolving funds. Revolving funds are permanently authorized accounts that support a continuing cycle of operations financed by receipts from those operations. Annual Congressional action is not required, except when appropriations are needed for capitalization or other special purposes.

c. FBF activities are primarily financed with rent money collected from tenants in

GSA-controlled facilities. However, this revenue is not available to FBF until Congress enacts New Obligational Authority (NOA) in an appropriations act. NOA is technically a limitation on the use of revenue (40 U.S.C. § 592(c)(1)).

d. With a permanent authority, GSA may use certain proprietary receipts to finance certain programs. The amount of receipts available is usually indefinite, determined annually by its relationship to some event or circumstance. These amounts are automatically available, either through fund operations or as a permanent appropriation.

(1) Although no Congressional action is needed to make these funds available, Congress may enact NOA, or revenue limitations, similar to the way use of rental income is restricted under the FBF.

(2) The agency has two permanent appropriations:

(a) Disposal of Surplus Real and Related Personal Property (called Expenses, Disposal), uses proceeds from the sale of surplus real property to finance the contractual costs of selling properties.

(b) Expenses of Transportation Audit Contracts and Contract Administration, is financed from collected contract overcharges.

e. In a limited number of cases, appropriations are proposed by and enacted for other agencies, then transferred to GSA for execution. They mostly involve new construction or major repair/alteration projects under the FBF.

3. Making resources available.

a. Most of GSA's appropriations and FBF NOA are provided in the annual Financial Services and General Government Appropriations Acts.

b. Regardless of financing source, all GSA accounts are subject to OMB

apportionment and to the GSA’s system for the administrative control of funds, unless specified otherwise.

c. Customer orders are actually a resource made available to a revolving fund, and

is used to fund reimbursable work. Reimbursable work cannot begin without a valid funded customer order.


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d. If new authority is not enacted by the start of a fiscal year, then resources may not be available and work may have to stop. However, temporary resources may be provided by a Continuing Resolution (CR) until full authority is enacted.

4. Organization and account structure. GSA is organized into services and staff offices, with operations carried out in the Central Office (C.O.) and 11 geographic regions.

a. Historically, the agency's funding structure mirrored its organizational structure, with a separate annual appropriation for each Service and Staff Office (SSO) and with business-type operations conducted under revolving funds.

b. The early-to-mid-1990s saw a general migration of programs from appropriations

to revolving funds to realize the concept of full-cost recovery for services. As the remaining appropriations became smaller, certain programs were consolidated into umbrella appropriations. However, other programs, such as the Office of Inspector General (OIG), continue to receive separate, direct appropriations.

c. With the exception of appropriation-financed real property disposal, Public

Buildings Service (PBS) activities remain entirely supported through the FBF, under NOA enacted annually by Congress. Customers also reimburse the FBF for services above the standard levels provided for in rental charges.

d. GSA and its components may be given special-purpose appropriations for special

or one-time needs. PART 2: OPERATING EXPENSES 5. Background and general purpose. Operating Expenses (OE) is an annual appropriation that supports the central planning, direction, and management of agency programs. OE activities are not feasible or appropriate for a user-fee arrangement, hence the need for appropriation. Major OE programs include the personal property utilization and donation activities of the Federal Acquisition Service (FAS); the real property utilization and disposal activities of the Public Buildings Service; the activities of the Civilian Board of Contract Appeals; and Management and administration activities. Annual appropriations language also provides authority to use stated sums for official reception and representation expenses. The functions of the appropriation are generally authorized in the Federal Property and Administrative Services Act of 1949 (40 U.S.C. § 471 et seq. (amended)). 6. Budget activities. Externally, this appropriation is counted as one budget activity called “operating expenses”. Internally, each component of the OE account has its own direct budget activity series.

a. The Personal Property Utilization and Donation program transfers personal property no longer needed by a particular Federal agency to other Federal agencies,


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State and local governments, and nonprofit organizations. This program is also known as the FAS Personal Property program.

b. The Office of Real Property Utilization and Disposal transfers or sells unneeded

property assets. This program is managed by PBS and works with all Federal landholding agencies to identify, manage, and dispose (usually via sale or auction) of unneeded property.

c. The Office of Communications and Marketing (OCM) provides a variety of

marketing product and services. It also represents the GSA in the media.

(1) The Media Affairs Division. This is the agency’s official contact point for all media interactions with GSA. They field all media inquiries regarding GSA programs, products, initiatives, people, and policies.

(2) The Communications Division. This division plans and executes external

and internal communications activities for the agency. This organization develops and implements enterprise wide information campaigns across technology platforms, including web, video, and social media.

d. Management and Administration supports the Administrator, Regional

Administrators, and their respective staffs, as well as coordinating governmentwide emergency response and recovery.

(1) The Administrator and Regional Administrators. They are responsible for the execution of all functions assigned to GSA by law and regulation.

(2) The Office of Congressional and Intergovernmental Affairs (OCIA). OCIA is

GSA’s liaison with Congress and other Federal agencies. OCIA coordinates meetings and testimony before Congressional Committees, helps Congressional offices resolve issues related to GSA programs and services, supports the GSA legislative program with the Congress, and coordinates services to over 1,400 House-district and Senate-state offices for the Congress.

(3) The Office of Mission Assurance (OMA). OMA executes GSA’s

responsibilities during domestic and national security emergencies to aid Federal agencies, and State and local governments, support client agency needs, and restore GSA operations. OMA ensures the continuation of the agency’s critical business processes by integrating and coordinating activities across all domains of security (physical, cyber, personnel, and industrial). OMA also supports the agency’s continuity mission by developing agencywide guidance, policies, plans and procedures as well as testing, training, and exercises to ensure readiness. OMA is also funded from the Working Capital Fund (WCF), to assure the safety, privacy, and security of GSA facilities, people, and IT assets nationwide.


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e. The Civilian Board of Contract Appeals (CBCA). CBCA settles contract claims between government contractors and civilian Federal agencies under the provisions of the Contract Disputes Act of 1978.

(1) CBCA also hears and decides on cases including Contract Disputes Act

appeals relating to Indian Self-Determination and Education Assistance Act contracts and appeals from disallowance by the Secretary of the Interior of costs payable under that Act; appeals of final administrative determinations of the Federal Crop Insurance Corporation pertaining to standard reinsurance agreements; claims involving transportation rate determinations; and travel and relocation expense claims by Federal civilian employees.

(2) The National Aeronautics and Space Administration, the United States Postal

Service, the Postal Rate Commission, and the Tennessee Valley Authority are exempt from CBCA’s jurisdiction.

(3) CBCA also provides arbitration services to external customers, such as the

Department of Energy, on a reimbursable basis. 7. Budget formulation.

a. Because the OE account is comprised of separate SSO programs, the Office of

Budget summarizes and compiles each SSO’s Strategy and Action Plan and proposed initiatives for the budget year. Based on input from the Director of Budget, the Administrator approves the initiatives that will be included in the OMB budget submission. The Office of Budget then reviews SSO plans and initiatives, edits them, and adds the information into the OMB budget submission, and subsequently into the Congressional Budget Justification.

b. Justifications and other materials for each Service are prepared by its respective

Controller, and are submitted to the Office of Budget in electronic format. The Controller for the Office of the Chief Financial Officer (OCFO) submits information for the Staff Offices.

c. During formulation, the Office of Budget advises Controllers of how their part of

the account has been affected by OMB or Congressional adjustments.

8. Budget execution.

a. The OE account is apportioned by OMB as a category 'A' apportionment (authority is provided by fiscal year/quarter).

b. First, the Budget Analyst writes the Chief Financial Officer’s (CFO) name in the

‘Issued To’ field. It is then approved with a signature from the CFO and the Director of Budget. Then, under this allotment, budget analysts enter allowances into Pegasys providing funds to the Regional Administrators and the C.O. programs.


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(1) Each allowance identifies separate amounts intended for Office of Citizen Services and Innovative Technologies (OCSIT), FAS, PBS, and other staff programs. The sum of allowances may not exceed the amount apportioned and allotted for that purpose.

(2) Allowance holders may redistribute the funding based on reprogramming

authorities established at the time.

(3) Allowances for this account are issued in electronic form. PART 3: FEDERAL CITIZEN SERVICES FUND 9. Background and general purpose. The Federal Citizen Service Fund (FCSF) is a public enterprise (revolving) fund established by P.L. 98-63 on July 30, 1983 (40 U.S.C. § 761). In FY 2015, the Electronic Government (E-Gov) Fund became a subfunction of FCSF. See the FCSF budget digest for more information on this fund.

a. The FCSF promotes the development, production, and dissemination of government documents or product information to the public. Initially established on October 26, 1970, by Executive Order (E.O.) 11566 as the “Consumer Product Information Coordinating Center”, the name was changed in April 1972, to the “Consumer Information Center”, in March 2002 to the “Federal Citizen Information Center”, and in 2009 to the “Federal Citizen Services Fund.”

b. The FCSF helps Federal agencies identify and share information of general

interest collected as a byproduct of government research, program, and procurement activities; promotes public awareness of information through various media services; publishes the quarterly Consumer Information Catalog; and coordinates the distribution of consumer publications from its central facility in Pueblo, CO.

c. Between 1973 and 1983, administrative costs were financed entirely by direct

appropriations, with the cost of printing and distributing publications funded by reimbursement from participating agencies.

d. In 1983, the Supplemental Appropriations Act (P.L. 98-63) established the Consumer Information Center Fund to make FCSF a more businesslike operation. The costs of FCSF activities are now financed by monies deposited to the fund, consisting of annual appropriations, reimbursements from agencies, user fees collected from the public, and other incidental income.

e. In FY 2015 the E-Gov fund became a part of FCSF. The E-Gov Fund was created in 2002 under the Electronic Government Act (P.L. 107-347) and received an annual appropriation.


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(1) E-Gov funding went towards initiatives that use the internet and other electronic methods to provide individuals, businesses, and other government agencies with improved access to Federal information, benefits, services, and systems.

(2) E-Gov and FCSF were combined due to the similarities between the budget

activities carried under each fund.

f. The Financial Services and General Government Appropriations Act annually provides an appropriation for the fund, and sets a limit on total obligations and on administrative expenses. Appropriations language requires that revenues and collections exceeding the limitation on total obligations remain in the fund, and are to be expended when authorized by appropriations acts. 10. Budget activities. FCSF resources are placed in the following budget categories.

a. The Office of Citizen Services and Innovative Technologies (OCSIT) serves as a centralized location for the public to efficiently find and use information about Federal programs, benefits, and services. OCSIT identifies, tests, and deploys innovative technologies that allow Federal agencies to provide improved services and to facilitate an open, collaborative, and transparent government. Working closely with other government agencies—Federal, state, local, and international—OCSIT collects, consolidates and creates information and services to make them user-friendly and available to the public.

(1) Office of Citizen Services (OCS). OCS meets citizen needs for information, services, and engagement with their government through an array of direct services via the Internet, phone, email, and print. They have two main centers.

(a) The Federal Citizen Information Center (FCIC) delivers government

information and services to the public through the Contact Center Services Division (manages the National Contact Center); the Web management and Content Divisions (manages content for various .gov websites and social media); and the Publications Services and Citizen Outreach (provides printed and digital publications and reaches out to teachers, librarians, and community groups).

(b) The Center for Excellence in Digital Government transforms how the

government delivers services and information to the public by using analytics, training, service standards, and best practices.

(2) Office of Innovative Technologies (OIT). OIT develops information

technology projects and staff support for Electronic Government initiatives that enable agencies to deliver the most efficient services to citizens while increasing transparency in government. OIT identifies, tests, and releases new and innovative technologies and platforms for governmentwide use. The organization also develops, manages, and provides staffing support for most of the E-Gov project areas.


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(3) Office of Information Technology Services Solutions (OITSS). OITSS supports OCSIT initiatives by maintaining a shared, cost-effective, open standard infrastructure to support the mission of OCSIT. It provides support for infrastructure, mobile platforms, collaboration tools, search and analytics software, open source products, and content delivery, while maintaining compliance with Federal policies, procedures, practices, and standards. These services are consolidated to provide the most efficient cost model for supporting all of the OCSIT programs.

11. Budget formulation.

a. Although the FCSF account is technically a revolving fund, it uses appropriations as the primary means of funding administrative expenses, making it subject to the same review procedures as other appropriations.

(1) Estimates for printing and distributing publications must be consistent with

available fund balances and projected income, since appropriations are not made for this purpose. This estimate must also include the expected workload, because obligation limitations may not be exceeded, even if reimbursements become available later.

(2) For administrative expenses, realistic estimates of income from user fees

are needed to ensure that appropriations requested are adequate. Only appropriations and income from user fees are used to finance this type of expense. User fee income is also used to fund special projects.

b. Congressional review and enactment of authority follows the process discussed in Chapter 2, Parts 4 and 5. FCSF is a part of the Financial Services and General Government Appropriations Acts.

12. Budget execution. FCSF is a category 'A' apportionment and must consider total budgetary resources such as new appropriations, unobligated balances, and anticipated reimbursements. Amounts apportioned, however, may not exceed the total obligation limitation in the appropriation act. Any difference is to be included in the unapportioned balance of a revolving fund “Budgetary Resources: Deferred” line entry. PART 4: WORKING CAPITAL FUND 13. Background and general purpose. The WCF is a full-cost recovery revolving fund that finances administrative support services to GSA and other Federal organizations, including small agencies and commissions. The WCF is the mechanism that GSA uses to provide and improve service delivery of administrative support functions to all GSA programs. The fund was initially authorized by the Independent Offices Appropriation Act, 1946 (P.L. 79-49; 40 U.S.C. § 293), which also provided an initial capitalization of $50,000. Additional capital appropriations have been made over the years.


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a. Reimbursable services include information technology management, budget and financial management, payroll, legal advice and services, human resources, equal employment opportunity services, oversight of GSA contracting activities, emergency planning and response, and oversight of facilities management and other administrative services. This account also funds liaison activities with the U.S. Small Business Administration to ensure that small and disadvantaged businesses receive a fair share.

b. The WCF is authorized to recover, through billing rates, all costs associated with providing requested services, including charges for personnel, materials, and equipment (including maintenance, repair, depreciation, and replacement).

c. The WCF is the account through which administrative support obligations and reimbursements flow. Language in the Appropriations Act for 1995 (P.L. 103-329: 108 U.S.C. § 2403), states that amounts received for certain services should be credited to the fund. It also requires that entities using these services be charged at rates that return the full cost of operations. 14. Budget activities. The WCF is grouped into three types of services.

a. Shared services. WCF activity managers provide or coordinate the delivery of common services to internal GSA offices. These services are reimbursed after delivery to ensure full cost recovery. The WCF allows GSA to achieve economies of scale in providing these services to both internal customers and other customer agencies. GSA offices may not cancel or opt out of paying for these services. Examples of services include: GSA Rent, IT and telecommunication services, human resource services, procurement operations, management of GSA occupied space, acquisition policy, legal services, and financial management services.

b. Selected services. WCF activity managers may offer additional services to internal GSA offices. These services are specific to individual GSA offices and are documented in Intra-Agency Agreements. Internal GSA offices may cancel services within terms and conditions negotiated in the Intra-Agency Agreements.

c. External services. WCF activity managers provide or coordinate the delivery of specific services to other Federal organizations, including small agencies and commissions. These WCF activities are reimbursed for the provision of services, a characteristic typical of a business. The costs for providing the services are reimbursed by billing the external Federal customers for the provision of goods and services at rates that are approved by GSA’s CFO. Examples of services provided include: human resource services, IT and telecommunication services, administrative support for home-state/district offices for the Congress, and financial management services.

d. In addition, GSA transfers unobligated balances from its expired appropriated

accounts into the Major Equipment Acquisition and Development activity of the WCF. Upon Congressional approval, the Major Equipment Acquisition and Development


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activity may be utilized for agencywide investments such as: acquisition of capital equipment, automated data processing systems and financial and management information systems.

e. The WCF is also used as a holding account for special purpose activities. 15. Budget formulation.

a. The Controller for the OCFO advises each Service of its share of the total that needs to be reimbursed. This distribution is based on actual workload, benefit derived, or a combination.

b. The SSOs then decide on a further distribution by individual account. Amounts

applying to appropriations and the FBF will be included in annual budget requests. Under revolving funds, the proposed rate structure anticipates, in part, recovering the amount that is paid to the WCF.

c. Analysis of budgetary requirements takes into account anticipated customer

workload, staffing levels, and opportunities created by changing technology. Billing rates are set to generate the income needed to cover budgeted expenses. Furthermore, an estimate is made of the level of income and expenses expected for the fiscal year.

d. During OMB’s review of the budget request, they can suggest adjustments that

affect total estimated obligations and staffing. Generally, Congress does not review revolving funds, including the WCF.

16. Budget execution. Internal control procedures have been established to monitor program execution and ensure the financial integrity of the fund.

a. Under the master allowance, the Associate Administrator or designee issues Allowances to Regional and C.O. officials for their direct and reimbursable administrative programs. At the same time, SSOs are requested to provide Pegasys document numbers for the distribution of centralized administrative services reimbursements. This will be the basis for posting function-related income to the WCF.

b. Income for directly-requested reimbursable services (mostly commissions) is accrued monthly based on unfilled customer orders established by the Office of Finance at the beginning of the year.

c. A separate master allowance is issued to the CFO for the centralized services

program. d. Additional allowances may be issued to other components with a particular

interest in WCF operations for that year.


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e. Income and expenses are carefully monitored during the year to ensure balance. f. Exceeding a master allowance or allotment violates GSA's system for the

administrative control of resources.

g. Although a basic financial goal is to break even, it is not a violation of Antideficiency statutes if expenses exceed income for a year (a net loss). A temporary loss can be recouped from subsequent-year earnings.

h. A violation of Antideficiency statutes occurs if, at the total fund level, current liabilities plus undelivered orders exceed the sum of cash, receivables, advances, and unfilled customer orders. PART 5: GOVERNMENTWIDE POLICY FUND 17. Background and general purpose. Governmentwide3 policy is an annual appropriation that funds governmentwide policy development, support, and evaluation functions associated with real and personal property, supplies, vehicles, aircraft, information technology, acquisition, transportation, and travel management. The functions of the appropriation are authorized by the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. § 471 et seq.).

a. All of the money in the Government-wide Policy fund goes to the Office of Government-wide Policy (OGP), although OGP is not solely funded by the governmentwide policy account (some of their funds come from reimbursable activities).

b. OGP was established in 1995. From FY 1995 through FY 2002, OGP activities

were funded by the Policy and Operations account, which provided for both OGP activities and the directly funded operating expenses of GSA. In FY 2003, the Policy and Operations account was divided into the “Operating Expenses” account and the “Policy and Citizen Services” account. The Policy and Citizen Services account originally provided funding for OGP and OCSC. [Note: OCSC no longer exists. It has been divided into the Office of Communications and Marketing (OCM) and the Office of Citizen Services & Innovative Technologies (OCSIT).]

c. In FY 2004, the Citizen Services component of the Policy and Citizen Services account was transferred into the OE account, and the Policy and Citizen Services account was changed to the “Governmentwide Policy” account.

d. For more information about the history of OGP, see the OGP budget digest.

3 According to U.S. Government Printing Office (GPO) Style Manual - 2008, “governmentwide” is spelled without a hyphen in all cases EXCEPT when referring to the Office of Government-wide Policy.


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18. Budget activities. OGP is financed from annual appropriations to pay for the salaries and expenses of OGP staff and governmentwide policy programs. Additionally, OGP receives reimbursable authority, allowing Federal agencies to pay for the cost of governmentwide services. OGP has six activities.

a. The Office of the Associate Administrator. This office contains the head of OGP and his or her staff. This activity is funded through appropriations.

b. The Office of Executive Councils. This Council provides support to Federal

interagency management councils, increasing their effectiveness in solving challenges across agencies, spurring innovation, and improving policy outcomes. This office collaborates with OMB and Federal management councils to identify governmentwide performance improvement initiatives based on proven practices; leads working groups to advance these initiatives across agencies; establishes performance goals; and facilitates implementation of new processes and programs across government. This is a reimbursable activity.

c. The Office of Asset & Transportation Management. Develops policies and guidance to help agencies implement effective management processes for government assets. Policy program areas include aircraft, motor vehicles, personal property, real property, transportation, mail, passenger travel, relocation allowances and entitlements, and Federal Advisory Committees. This activity is funded through appropriations.

d. The Office of Information, Integrity, & Access. Has a range of responsibilities

including identity, credential, and access management; internet “dot gov” domain management; information asset management; and electronic and information technology accessibility. This activity is both reimbursable and funded through appropriations.

e. The Office of High-Performance Green Buildings. Works to reduce the economic

and environmental footprint of Federal buildings through evidence-based guidance and best practices. This activity is funded through appropriations.

f. The Office of Acquisition Policy. Responsible for carrying out GSA’s acquisition

policy role within the government. Most notably, this office is in charge of the Federal Acquisition Institute (FAI). FAI trains Federal civilian employees how to purchase goods and services on behalf of the Federal Government while complying with all modern procurement policies. This activity is both reimbursable and funded through appropriations.

19. Budget formulation. The OGP initially provides the Office of Budget with Strategic Action Plans and proposed initiatives for the fiscal year.

a. Based on input from the Director of Budget, the Administrator approves the initiatives that will be included in the OMB budget submission.


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b. The Office of Budget reviews OGP’s plans and initiatives, edits them, and then

compiles the information into the OMB budget submission. 20. Budget execution. The Government-wide Policy Account is apportioned by OMB.

a. The Budget Analyst writes the CFO’s name in the ‘Issued To’ field of the allotment document. It is then approved with a signature from the CFO and the Director of Budget. Under the authority of the allotment, the CFO Controller enters the allowance into Pegasys authorizing the CFO Controller to provide for the OGP.

b. The Office of the Controller provides budget execution support for this account. PART 6: ACQUISITION WORKFORCE TRAINING FUND 21. Background and purpose. The Acquisition Workforce Training Fund (AWTF) is a permanent, indefinite appropriation that finances training resources for the acquisition workforce of all executive agencies except for the Department of Defense (DOD). This fund was created to ensure that the government’s non-defense acquisition workforce has enough training and experience to adapt to the changing nature of Federal Government acquisition. AWTF is managed by FAI in consultation with the Office of Federal Procurement Policy and the FAI board of directors (FAI is under OGP).

a. This fund is authorized by 41 U.S.C. § 433(h)(3), as amended by Section 854 of Title VII of the National Defense Authorization Act for Fiscal Year 2008 (P.L. 110-181, January 28, 2008). The establishment and operation of the FAI is authorized by 41 U.S.C. § 1201, as amended by Section 864 of Title VIII of the National Defense Authorization Act for Fiscal Year 2011 (P.L. 112-81, December 31, 2011).

b. The fund is authorized to be credited with up to 5% of the fees collected from

non-DOD activities by the GSA and other civilian agencies that manage Government-wide Acquisition Contracts (GWACs), Multiple Award Schedules (MAS) contracts, and other multi-agency contracts. These funds are available for obligation during the year in which they are collected plus the two following fiscal years. 22. Budget activities. This account is not separated by budget activities at this time. Instead, receipts remitted to this fund are mostly used for one purpose: to develop training resources for the non-defense acquisition workforce. 23. Budget formulation. Formulations are based on the amount of receipts anticipated to be collected in the budget year. Congressional action is not required to provide funding for this account, since it is a permanent appropriation financed from receipts. Proposed amounts represent new budget authority.


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24. Budget execution. Annual funding authority is provided by OMB apportionment. Funds are available for obligation during the year in which they are collected plus two subsequent years. Funds must be obligated on a first-in, first-out basis: Funds collected in previous years must be fully obligated before new funds may be obligated.4

a. A Treasury warrant is needed to authorize disbursements. The Office of Budget provides information to the Office of Finance, which makes the formal request to Treasury.

b. An apportionment approved by OMB is needed to spend resources provided by permanent law (mandatory appropriations). Resources are apportioned by the Treasury Account Fund Symbol (TAFS). The apportionment identifies amounts available for obligation and expenditure. It specifies and limits the obligations that may be incurred and expenditures made for specified time periods, programs, activities, projects, objects, or any combination thereof.5

c. The Budget Analyst writes the CFO’s name in the ‘Issued To’ field of the

allotment document, reflecting available receipts. It is then approved with a signature from the CFO and the Director of Budget. Under this allotment, the CFO Controller enters an allowance into Pegasys authorizing the CFO Controller to provide for FAI.

d. Fees collected from non-DOD executive agencies are made available to FAI via transfer from the GSA Receipt Fund: “Receipts, Acquisition Workforce Training Fund” to the GSA Expenditure Account--“Acquisition Workforce Training Fund”.

e. Exceeding an allowance violates the GSA’s system for the administrative control of funds. Exceeding an allotment or a Treasury Warrant is a statutory violation. A statutory violation also occurs if total obligations exceed the authorized 5% of fees collected from non-defense executive agencies for the year, regardless of authorities provided by apportionment or allotment.

f. To keep track of the multiyear funds, the AWTF will have a different fund number for each year that receipts are collected.

g. Funds remain available for obligation for up to two years after collection.

h. Each non-DOD executive agency that administers governmentwide or multiagency contracts must credit the AWTF Fund with 5% of the fees collected from the non-DOD executive agencies. PART 7: OFFICE OF INSPECTOR GENERAL

4 GSA Office of Budget’ Acquisition Workforce Training Fund, and Funds Control Plan. 5 OMB Circular No. A-11, Section 20 Terms & Concepts, Apportionment.


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25. Background and purpose. The Office of Inspector General (OIG) receives an annual appropriation supporting agencywide audit, investigation, and inspection functions. Funds are only available for new obligation during the year for which they are enacted.

a. OIG was established under the Inspector General Act of 1978 as amended, (P.L. 113-176: 5 U.S.C. App.). Before that, GSA's audit and investigation functions had been performed by the Office of Audits and Investigations under the Office of the Administrator, funded by the General Management and Agency Operations (GMAO) appropriation.

b. After passage of the Inspector General Act, the new office was funded under

GMAO. Later, to ensure its autonomy, Congress created a separate appropriation in the 1979 Supplemental Appropriations Act. During 1979, the OIG was supported by both GMAO and the supplemental appropriation. Since then, however, it has been financed by a separate appropriation.

c. In addition to salary and other costs, the OIG is authorized to pay, up to a stated sum, for information and detection of fraud against the government, including payment for recovery of stolen government property.

d. When requested, audits and investigations may be performed for other agencies on a reimbursable basis. 26. Budget activities. The OIG has a formal budget activity structure; however, external budgets only distinguish between direct and reimbursable services. The OIG has grouped its operations under the following titles:

a. The Office of Audits oversees GSA’s use of taxpayer dollars. The goal of these audits is to support GSA’s primary business lines while ensuring their integrity, economy, and efficiency. Audit coverage is used to meet a number of requirements.

(1) Program Audits produce formal audit reports that provide GSA management

with independent assessments and input on potential solutions to issues. (2) Information Technology and Systems Audits evaluate whether GSA’s

information systems are designed to enable efficient and effective operations, contain adequate system controls, are properly secured, and meet user requirements.

(3) Oversight of the agency’s contracts for performance of the annual financial

statements audit required under the 1990 Chief Financial Officer’s Act, and the annual audit of the effectiveness of GSA’s information security program and practices required under the Federal Information Security Management Act.


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(4) Non-Financial Statement Audits provide an independent assessment of whether the agency’s financial information is presented fairly in accordance with recognized criteria.

(5) Regulatory Audits conducted in accordance with applicable laws and

regulations.

(6) Internal Control Audits designed to test the controls built into GSA’s programs and systems to determine whether those controls are operating as intended and are achieving effective and efficient operations, reliable financial and performance reporting, and in compliance with applicable laws and regulations.

b. The Office of Investigations is comprised of special agents with full statutory law enforcement authority. They may make arrests, execute search warrants, serve subpoenas, and carry weapons. Allegations investigated by OIG special agents include bribery, kickbacks, extortion, public corruption, false claims, credit card fraud, theft, diversion of excess government property, counterfeit products, product substitution, false statements, and a variety of other fraud related crimes. The scope of the Office of Investigations includes:

(1) Investigations of alleged criminal violations and civil fraud by contractors,

employees and others related to GSA acquisition programs. (2) Criminal investigations relating to the integrity of GSA programs, operations,

and personnel. (3) The development and implementation of proactive investigations which

address systematic investigative issues that cross GSA regional boundaries. (4) Investigations of allegations of serious misconduct by high-ranking GSA

officials.

c. The Office of Inspections and Forensic Auditing independently and objectively: (1) Analyzes and evaluates GSA’s programs and operations through

management and programmatic inspections and evaluations (hereinafter inspections) that are intended to provide insight into issues of concern to GSA, Congress, and the American public.

(2) Reviews and evaluates potentially fraudulent or otherwise criminal activities

through the use of forensic auditing skills, tools, techniques, and methodologies. (3) Formulates, directs, and coordinates quality assurance for the OIG.

d. Executive direction and business support offices:


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(1) Office of the Inspector General. The Inspector General (IG), Deputy Inspector General, and their support staff supervise, coordinate, and provide policy and programmatic direction for all activities within the OIG, including audit and investigation activities, Congressional affairs, and media relations. The IG recommends policies for and coordinates activities to promote economy and efficiency in the prevention and detection of fraud and abuse in the programs and operations of GSA.

(2) Office of Counsel. This office provides legal advice and assistance to all

OIG components nationwide, represents the interests of the OIG in connection with audits and investigations and in litigation arising out of or affecting OIG operations, and advises on statutes and regulations and assists with legislative concerns. Counsel represents the OIG in personnel matters before administrative tribunals and provides support to U.S. Attorneys Offices and the Department of Justice (DOJ) in False Claims Act and other litigation. The Office of Counsel also is responsible for the OIG's ethics and disclosure programs.

(3) Office of Administration. This office consists of a multidisciplinary staff that provides budgetary, human resources, information technology, facilities, space, and other administrative support and services to all OIG offices. The Office of Administration is responsible for providing the technical, financial, and administrative infrastructure to the OIG. 27. Budget formulation. Although the OIG has semi-autonomous status, its budget program must still be structured within GSA's resource planning ceilings. Proposed internal adjustments to the OIG budget request are referred directly to the Administrator for consideration. Later review and action by OMB and the Congress follows the same pattern as other appropriated GSA accounts. 28. Budget execution. Once OIG appropriations are enacted and apportioned by OMB, an allotment (GSA Form 2520) is issued to the IG to serve as the basis for further resource allocation. PART 8: PRESIDENTIAL TRANSITION 29. Background and purpose. This appropriation is automatically enacted every four years to provide for the orderly transfer of executive power after a President’s term expires and a new President is inaugurated. It covers official expenses of the incoming and outgoing administrations as authorized by the Presidential Transition Act of 1963 (P.L. 88-277: 3 U.S.C. § 102 (amended by P.L. 94-499)), by the Presidential Transition Effectiveness Act (P.L. 100-398), and by the Presidential Act of 2000 (P.L. 106-293). 30. Budget formulation. In October, 2000, P.L. 106-293 authorized the payment of expenses incurred during the Presidential transition for briefings, workshops, or other activities needed to acquaint prospective Presidential appointees (e.g., department heads and appointees to the Executive Office of the President) with the types of


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problems and challenges that they will face prior to assuming the responsibilities of their positions. 31. Budget execution. Under the allotment, an allowance is issued by the CFO to support the Presidential Transition Team. These funds must be available the day after the general election in November. The allowance may be accompanied by an operating budget plan, which distributes funding between the President-elect and Vice President-elect.

a. If there is no Presidential transition, such as when the incumbent President is re-elected, then the funds are sent back to the Treasury.

b. The Presidential Transition funds expire roughly 6 months after they are enacted. PART 9: ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS 32. Background and purpose. GSA has an annual appropriation that pays benefits and other legal entitlements to former Presidents and their surviving spouses. Funds are available for obligation during the year for which they are enacted.

a. The Former Presidents Act of 1958 (P.L. 85-745: 3 U.S.C. § 102 (amended)), authorized the Administrator of General Services to pay, or provide for the payment of, the following entitlements:

(1) A pension for each former President, paid monthly, at an annual rate equal to the highest annual rate of pay for the head of an executive department (Executive Level I). The allowance is not paid for any period during which the former President holds an elective or appointed office in the Federal Government or the government of the District of Columbia.

(2) An annual allowance of $20,000 (this number has not been updated since the 1958 Act) for each surviving spouse of a deceased former President, starting the day after the former President dies, and ending the last day of the month before the spouse dies (allowances are paid at the end of the month, and would not be paid for the month in which the spouse died), or if the surviving spouse remarries before reaching 60 years of age. The allowance is not paid for any period that the spouse holds any elective or appointed office in the Federal Government or the government of the District of Columbia. This allowance may be waived.

(3) Reimbursement to US Postal Services (USPS) for the cost of franked mail. A former President or surviving spouse may send nonpolitical mail within the United States, its territories, and possessions as franked mail (see Appendix A for a definition of “franked mail”).


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(4) Suitable office space for each former President, appropriately furnished and equipped, at a place within the US specified by the former President.

(5) An office staff, to be selected by and responsible only to the former

President. The annual salary of an individual staff member may not exceed the highest annual rate of basic pay provided by law for Executive Level II.

(6) Travel expenses for the former Presidents and a maximum of two members of their staff.

b. This program is administered through the OCFO in the C.O. and through the

Office of the Regional Administrator in the regions.

33. Budget activities. For the external budget, the appropriation is divided into two activities.

a. Allowance and pensions covers the annual cost of former President’s allowances at authorized rates, and the annual cost of allowances for each surviving spouse of a deceased former President.

b. Office support costs include program costs supporting former Presidents, such

as for office space, furnishings, equipment and supplies; salaries of office staff; postal services; travel; and communications costs. 34. Budget formulation. Budget formulation for this account is no different than for any other appropriation account. A large portion of the account is for statutory entitlements, which means that major adjustments to the account cannot happen unless the laws governing the account change. 35. Budget execution. GSA does not exercise program direction over the funds provided under this account, but is responsible for their legal administration and control, and for ensuring that proposed obligations and expenditures comply with laws and regulations. This account is administered by the Office of Budget.

a. The Former Presidents appropriation is apportioned by OMB, and an allotment is issued to the CFO for the total amount available.

b. Pursuant to authorizing legislation, pensions for former Presidents and surviving spouses are paid at the end of the month by the Secretary of the Treasury. The Office of Budget requests that the Office of Finance prepare a “Non-expenditure Transfer Authorization” (GSA Form 1151) transferring available funds to Treasury for disbursement.

c. Any reimbursements for surviving spouses’ franked mail are administered by the

Office of the Regional Administrator.


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d. With the exception of pensions and allowances for widowed spouses, the regional allowance includes funding for all support to former Presidents/ widowed spouses, including activities that are administered and paid for at the C.O. All obligations are incurred through Regional Offices, so that the full cost is visible and accounted for in one place. PART 10: FEDERAL BUILDINGS FUND 36. Background and purpose. The Federal Buildings Fund (FBF) is an intragovernmental quasi-revolving fund authorized and established by the Public Buildings Amendments of 1972 (P.L. 92-313: 40 USC § 592(a)). It finances real property management and related activities of GSA's PBS. Before the FBF became effective in 1975, program activities were funded through a number of direct GSA appropriations and revolving funds.

a. The FBF gets its revenue by collecting rent charged to Federal agencies for space and services provided in GSA-controlled buildings. Other FBF income includes reimbursements for services above the standard level, recoveries of prior-year obligations, income from leasing space, and appropriations made for specific projects or activities.

b. One purpose for creating this fund was to ensure adequate financing for major projects. Direct appropriations are not always available, but charging rent at a commercially-equivalent rate generates income above annual operating requirements, creating a balance that could be used for additional projects.

c. The FBF does not function like a true revolving fund because the laws establishing the Fund restrict expenditures to amounts specified in annual appropriations acts. In other words, Congress provides annual limitations on how revenue can be used (40 U.S.C. § 592(c)(1)).

(1) Each construction, major repair/alteration, or lease project costing above a specific dollar threshold (periodically adjusted for inflation) must be authorized before it can be funded.

(2) Congress enacts NOA in annual appropriations acts. NOA is provided in

total for the fund, in total for each of its budget activities, and separately for each construction, major repair, and alterations project. Reimbursable activity is not included in NOA, and any obligations incurred must fall within income collected.

(3) Because NOA is provided through annual appropriations action, the FBF is

subject to most of the same budget and administrative funds control processes and restrictions as any other appropriation.

d. NOA is available until expended, with certain restrictions.


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(1) Amounts provided for a construction, repair, or alteration project expire after a date specified in the act, usually two years. As long as any portion of a project's initial funding amount is obligated within the period of availability (e.g. for design services), the remaining amount does not expire.

(2) NOA for remaining FBF activities remains available until expended; and

unobligated balances may be carried forward into subsequent years.

e. Congress may enact direct appropriations to the FBF to provide additional income and increase NOA.

f. The FBF's total obligational authority for a year is the sum of NOA enacted for

that year, unobligated balances brought forward from previous years, energy rebates, revenue from the sale of excess materials, and income from customers for reimbursable work.

g. In addition to its own activities, PBS also performs building construction work under appropriations transferred to it by other agencies.

(1) Normally, GSA only requests authorization and funding for general-purpose

space. When agencies require special-purpose facilities, or dedicated general-purpose space, they budget for and receive direct appropriations for those projects.

(2) GSA is usually asked to prepare rough building sketches to serve as the

basis for cost estimates and budget justification. The enacted appropriations may then be transferred to GSA for execution.

(3) Work is performed through architectural and construction contracts

supervised by professional GSA staff financed under the FBF. Supervision costs are reimbursed from the transferred funds. 37. Budget activities. The FBF has five basic direct activities and reimbursable programs.

a. New Construction and Acquisition of Facilities. This activity provides for space

acquisition through direct Federal financing for facility construction, including extensions to existing buildings; design and construction services; and the purchase of existing buildings from private or government sources.

(1) Each major project is separately authorized, and has an enacted NOA limitation covering all costs for site acquisition, design and construction services, and construction. Authorization and NOA for purchase of existing buildings may be provided in a lump sum.


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(2) FBF appropriation language states that, provided that offsetting savings have occurred in other projects, the NOA for each construction project in an appropriation act may not be exceeded by more than 10% of the amounts included in the transmitted prospectus without further Congressional action.

b. Repairs and Alterations (R&A). This program provides for the repair and/or alteration of facilities under GSA control, both Government owned and leased—if the work is not included in the lease rate. Examples of repair work includes preserving the value and continued use of Federal assets; making health and safety modifications; preparing vacant buildings for occupancy; meeting an occupant’s special requirements; and maintaining historic properties. This program is divided into line item and non-line item projects.

(1) Line item projects are those with estimated costs exceeding a statutory

threshold and thus require authorization. For these items, NOA is individually budgeted, enacted, and administered for each project.

(2) Non-line item projects are below the legal threshold and do not require

individual approval. They are usually short term (funds are obligated within one year), and are budgeted and enacted as a lump sum.

(3) FBF appropriation language states that the NOA limitation for each line item

R&A project may be escalated by 10 percent (or more, if approved by Congress) if the increase can be funded from savings in other line item R&A projects or from non-line item R&A funds.

(4) Appropriation language also authorizes, with prior Appropriations Committee

approval, funding for emergency repairs and additional projects, if they can be accomplished within the total amount available for R&A.

c. Installment Acquisition Payments. This activity pays interest on purchase

contracts for facilities acquired through private investment capital. These purchase contracts are paid over time until the government fully owns the property.

d. Rental of Space (also known as Leasing). This activity pays lessors for general-purpose space and land leased by Federal agencies, except where lease authority is delegated. Under some circumstances, the lease of special purpose space is also funded from the activity.

(1) NOA covers payment for existing and projected new leases; rental rate increases; and any services performed by lessors under lease agreements, including tenant alterations. Also included is payment to the USPS for space acquired in USPS buildings by GSA for other agencies.

(2) The Treasury, Postal Service and General Government Appropriations Act

of 1990 (P.L.101-136) included a provision that authorized the GSA to accept rent payments from customers for lease expansion space and to use such payments in


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addition to the NOA in the Rental of Space activity. GSA treats this provision as indefinite authority to acquire lease expansions that generate new income to the FBF. Any expansion not included in GSA’s NOA request to Congress is considered an indefinite authority. The indefinite authority amount includes the part-year cost of the fiscal year in which the space is acquired, and the full-year cost of the first fiscal year thereafter.

(3) The GSA tries to avoid leasing privately-owned buildings and land. However, exceptions are made when:

(a) Federal space needs cannot be met using existing government owned

or leased space. (b) Leasing proves to be more cost-effective than constructing or altering a

current Federal building. (c) Or space requirements are too small, or the anticipated term of

occupancy is too short, to warrant new construction.

e. Building Operations. This budget activity consolidates several, smaller activities.

(1) Building services. Provides services for government-owned and leased

facilities, including cleaning, utilities and fuel, maintenance, security, and miscellaneous services (such as moving, evaluation of new materials and equipment, and field supervision).

(2) Salaries and expenses. Provides general management and administration of all real property related programs including salaries and benefits paid from the FBF, administrative costs (IT services, transportation, management support, etc.) funded directly by the FBF, and contributions to the GSA WCF. These services are provided to tenant agencies at predetermined levels in return for payment of rent. If requested by agencies, services are also performed above established levels on a reimbursable basis (40 U.S.C. 592(b)(2)).

f. When requested, GSA performs, and is reimbursed for, a range of building

services above the standard level provided for in the base rent. Some of these are needed when agencies have heavy cyclic workload or operate in several shifts. Examples include space adjustments, interior design work, additional utilities, cleaning at above-standard levels, and professional architect/engineer services for specialized construction or alteration.

g. Protection of GSA controlled facilities is provided by the Federal Protective Service/Department of Homeland Security (FPS/DHS).


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38. Budget formulation. FBF budget estimates involve forecasting income, estimating NOA requirements, and then balancing the two.

a. In preparation for internal budget reviews, PBS C.O. asks the regions for detailed program information to use for basing budget estimates. Data must be developed at the regional level for such things as anticipated non-line item R&A; local tax and utility rates; changes in occupied space; anticipated costs of current and renewable leases; agency requests for expansion; cleaning and maintenance; and Full-Time Equivalent (FTE) employment needs. Input may also address capital projects (line item construction or R&A), although these are usually identified during long-range planning due to lengthy development lead times.

b. After regional data is reviewed by PBS, with estimates for C.O. and centrally-administered activities included, the internal budget is prepared and submitted to the Office of Budget. It includes an analysis of anticipated rental income and other sources from which requested NOA will be financed.

c. Internal review of the budget request examines the relationships between revolving fund income and expense as well as the NOA requested for each activity and project. When structuring a program within overall fund availability, operating activities are first accommodated at the minimum levels required to meet approved program requirements. Then capital projects are prioritized within remaining availability. Employment is reviewed for impact on total GSA FTE planning ceilings.

d. Once a budget program is approved by the Administrator, it is packaged in the manner and format required for submission to OMB (addressed in annual formulation guidance). At the same time, prospectuses are prepared for line item construction and R&A projects valued at more than the determined threshold. OMB requires that these be transmitted with the budget submission.

e. External review and action follow the processes described in Chapter 2, Parts 3 and 4.

(1) Justification and testimony in support of estimates are presented in the same manner as appropriated accounts, since enactment will occur as part of an appropriations measure.

(2) In addition to possible NOA adjustment, OMB and Congress may also take

action that will affect projected income. If this happens, NOA must be reviewed to ensure it remains consistent with the revised income. 39. Authorization of capital projects. The Public Buildings Act of 1959 (40 U.S.C. § 3307(a) (amended)) prohibits appropriations made to construct, alter, purchase, acquire, or lease any building or space costing more than a determined threshold, unless it has been approved by the Congress. The Public Buildings Amendments of 1998 permits the Administrator to annually adjust the threshold by a set amount to


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reflect increases or decreases in expenses as determined by the Department of Commerce’s composite index of construction costs (40 U.S.C. § 3307(g)).

a. GSA submits to these Congressional committees a prospectus describing the need for, and scope of, each lease, construction, repair or alteration project costing more than the current threshold. For major R&A, this requires identifying exactly which expenditures are needed to correct, modify, or upgrade an existing building and its systems. Recurring repairs and repairs to leased buildings are exempt from the prospectus requirement, regardless of cost, as are projects to remedy emergency situations.

b. OMB review and approval is required for all prospectuses before they are sent to

Congress. c. A project is considered authorized if its prospectus is approved by a resolution

by both House and Senate full committees. d. An approved prospectus does not provide authority to incur obligations. NOA

must be provided in annual appropriations acts, which might not fund all authorized projects. It is possible for an appropriation act to not provide NOA for an item that developed too late for the prospectus process. As a matter of comity (that is, mutual courtesy or civility) within Congress, availability of NOA is usually contingent upon approval of a prospectus by the authorizing committees.

e. If prospectus authorization is not complete by the time appropriations action is

taken, the House and Senate Appropriations Committees will often only include funding for projects approved by their own legislative committees (e.g., the House bill will only include NOA for House-authorized projects). Final approved funding results from a House/Senate conference on the appropriations bill.

40. Budget execution.

a. Once an appropriation or CR is enacted, OMB issues an apportionment to GSA that provides, in total and by quarter, total obligational authority for the FBF.

b. Based on this authority, the CFO issues a single allotment (GSA Form 2520; see Chapter 3, Part 5) to the Commissioner of PBS that conveys legal responsibility for compliance with Antideficiency statutes.

(1) The allotment shows the types of available resources such as direct appropriations; prior-year unobligated balances and recoveries available under no-year accounts; amounts of anticipated direct reimbursements; income from rent; and any reserves withheld from the total. Approved obligational authority is further distributed as quarterly limitations. Allotment authority in total or by quarter may not exceed OMB apportionment.


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(2) This allotment also includes any other limitations required by law, apportionment, or agency policy.

(3) An integral part of the allotment is an attachment that distributes total authority to each FBF budget activity.

(4) The allotment must be entered into the Pegasys accounting system before PBS can issue allowances (sub-allocation of the allotment).

(5) PBS issues allowances to units within allotment authority; procedures and forms vary by activity. 41. Reimbursable programs. Substantial reimbursable work is performed under the FBF. However, unlike appropriated accounts, reimbursable obligational authority is not provided on an allowance. Instead it is provided in the amount of orders received in reimbursable work authorizations (RWAs) issued by other agencies or GSA offices that request a specific scope of work within an established dollar limitation. Basic reimbursable policies and procedures are described in Chapter 3, Part 9. 42. Funds control violations. The following summarizes how violations of funds control procedures described in Chapter 3, Part 3 can occur under different FBF programs.

a. A violation of GSA's administrative funds control system occurs if:

(1) Direct obligations under any allowance (current or prior year) exceed, in total or by quarter, the authorities provided by the allowance.

(2) Obligations exceed specific allowance limitations (e.g., going over

employment ceilings, etc.). (3) Total reimbursable obligations cumulatively exceed reimbursable authority

at the end of a reporting period, or total reimbursable obligations exceed reimbursable income at the account (allotment) level.

(4) Or if obligations are incurred for purposes or in a manner contrary to agency

policy.

b. A violation of Antideficiency statutes occurs if:

(1) Cumulative direct and reimbursable obligations exceed, in total or by quarter, obligational authority on the FBF apportionment or allotment.

(2) Direct obligations exceed the total direct authority provided on an

apportionment or allotment.


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(3) Obligations against any prospectus-level construction or R&A project exceed the NOA limitations provided for that project.

(4) Total FBF obligations exceed balances in the fund, regardless of approved

obligational authority. (5) Obligations exceed any other limitations in an appropriation act,

apportionment, or allotment, or are incurred in any amount for a purpose or in a manner prohibited in an appropriation act or other statute.

PART 11: TRANSPORTATION AUDIT CONTRACTS AND CONTRACT ADMINISTRATION 43. Background and purpose. This permanent, indefinite appropriation, as authorized by 31 U.S.C. § 3726, provides for the detection and recovery of overpayments to carriers/service providers of government moves under rate and service agreements that are established by GSA or by other Federal agency traffic managers. Program expenses are financed from overcharges collected from transportation service providers as a result of post-payment audits that examine the validity, propriety, and conformity of charges with the proper rate authority.

a. Transportation audits were performed exclusively by in-house personnel until 1982, when GSA proposed that commercial contracts be used for augmentation. In 1983, the appropriation for Operating Expenses, Transportation and Public Utilities Service (later merged into successor appropriations) granted the authority to use funds to award and administer audit contracts. Contractor payment is limited to a maximum of 50% of any overcharges identified in an audit.

b. Although increasing sums were spent each year, it became clear that the effort

could not realize its full potential as long as it had to compete for limited direct appropriations. The Supplemental Appropriations Act of 1985 (P.L. 99-88) allowed collected overcharges and similar-type refunds to cover the expenses of transportation audit contracts and contract administration, up to a maximum of 40% of annual collections.

c. Due to the program's success, the 40% dollar limitation was increased, and

finally removed by P.L. 99-627 on November 7, 1986, which amended 31 U.S.C § 3726. This new law authorized prepayment for certain transportation bills, permanently authorized payment of audit contractors from overpayments collected, and mandated that net overpayments collected are to be deposited in the Treasury. 44. Budget activities. This account is divided into two activities: covering the expenses of transportation audit contracts, and the expenses of administering them.


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45. Budget formulation. The annual budget is based on the amount of overcharges anticipated to be collected during the fiscal year. Congressional action is not required to provide funding for the account, since it is a permanent appropriation financed from receipts. Proposed amounts, however, represent new budget authority and are treated as such in budget schedules. At times, Appropriations Committees may recommend amounts different from the budget, and OMB fully considers these views (and the consequences of contrary action) when it apportions authority for the year. 46. Budget execution. Annual funding authority is provided by OMB apportionment.

a. First an allotment is issued to the CFO, and then an allowance is issued to the Commissioner of FAS (see Chapter 3, Part 5).

b. Because it is an indefinite appropriation, annual action is needed to secure a

Treasury warrant that authorizes disbursements. The Office of Budget provides information to the Office of Finance, which makes the formal request to Treasury.

c. Exceeding authorities on an allowance violates the GSA’s system for the

administrative control of funds. Exceeding the authorities provided by the allotment, or obligating amounts in excess of the levels warranted by the Treasury, is a statutory violation. PART 12: EXPENSES, DISPOSAL OF SURPLUS REAL AND RELATED PERSONAL PROPERTY 47. Background and purpose. Expenses, Disposal of Surplus Real and Related Personal Property (also known as “Expenses, Disposal”) is a permanent, indefinite appropriation authorized by Section 204(b) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. § 485(b)(amended)). The section was added by P.L. 83-760 in 1954, and later re-codified as 40 U.S.C. § 572. This program is administered by PBS.

a. This mandatory appropriation provides for the efficient disposal of real property assets that no longer meet the needs of landholding Federal agencies. Fees of auctioneers, brokers, appraisers, and environmental consultants; surveying costs; costs of advertising; costs of environmental and historical preservation services; highest and best use of property studies; property utilization studies; and deed compliance inspections are paid out of receipts from disposals each year. Auctioneers and brokers familiar with local markets may be used to accelerate the disposal of surplus real property. This fund supplements in-house real property disposal activities under the Policy and Operating Expenses appropriation and efforts under the FBF to improve space utilization by leasing surplus government owned space.

b. Financing is provided by the sale of surplus property and by out-leasing government owned space. By law, amounts collected in excess of the needs of the fund must be transferred to the Land and Water Fund of the Department of the Interior.


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48. Budget activities. The program is divided into five budget activities. Disposal services are also provided on a reimbursable basis.

a. Appraisers' fees, auctioneers and broker fees, and surveying. Pays contractors for appraising surplus properties and government owned space, and pays commercial auctioneers and brokers for surveying of surplus properties.

b. Advertising program. Pays contractors for advertising expenses related to the disposal of surplus properties.

c. Environmental services. Pays contractors for determining whether there are any

factors or conditions that would prevent the transfer, disposal, or sale of Federal property to any agency, government organization, or person.

d. Historical Preservation services. Pays contractors for determining if there is any

historical value associated with a property, and what restrictions might apply to its disposal and sale.

e. Out-leasing of Government owned space. This activity provides any services

related to out-leasing of government owned space. 49. Budget formulation.

a. Requirements are developed in conjunction with in-house real property disposal effort and anticipated receipts.

b. Congressional action is not required to provide funding for the account, since it

is a permanent appropriation financed from receipts. As such, related budget authority and outlays are listed under the “mandatory” category, like an entitlement. 50. Budget execution. Annual funding authority is provided by OMB apportionment.

a. The CFO issues an allotment to the Commissioner of PBS using GSA Form 2520. The Commissioner issues allowances under the allotment.

b. Because Expenses, Disposal is a permanent indefinite appropriation, annual

action is needed to secure a Treasury warrant. The Office of Budget provides information to the Office of Finance, which makes the formal request to Treasury.

c. Exceeding authorities on an allowance violates the GSA’s system for the

administrative control of funds. Exceeding the authorities provided by the allotment or exceeding a Treasury Warrant are statutory violations. PART 13: ACQUISITION SERVICES FUND


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51. Background and purpose. The Acquisition Services Fund (ASF) is a full-cost recovery revolving fund that finances the operation of the FAS. The ASF provides for the acquisition of IT solutions, telecommunications, motor vehicles, supplies and a wide range of goods and services for Federal agencies. This fund recovers all costs through fees charged to Federal agencies for services rendered and commodities provided. The ASF is authorized by 40 U.S.C. § 321, which requires the Administrator to establish rates to be charged to agencies receiving services that: (1) fully recover costs and (2) provide for the long-term capital requirements of the ASF. The ASF is authorized to retain earnings to cover the cost of replacing fleet vehicles (Replacement Cost Pricing), maintaining supply inventories adequate for customer needs, and funding investments specified by the Cost and Capital Plan. 52. Budget activities.

a. Assisted Acquisition Services (AAS). Focuses on service delivery and assisting customers in making informed procurement decisions. AAS complements the programs of the Integrated Technology Services and General Supplies and Services portfolios by providing acquisition, technical, and project management services that assist agencies in acquiring and deploying information technology and professional services solutions at the best value for taxpayer dollars.

b. General Supplies and Services (GSS). Provides customer agencies a wide

range of general products such as furniture, office supplies, and hardware products. GSS centralizes acquisitions on behalf of the Federal Government in order to strategically procure goods and services at reduced costs, while ensuring regulatory compliance for customer procurements. This activity also provides personal property disposal services to customer agencies.

c. Integrated Technology Services (ITS). Furnishes customer agencies with IT and

telecommunications products and services. ITS provides its services through multiple channels including its Network Services program, Regional Telecommunications program, IT Schedule 70, and GWACs.

d. Travel, Motor Vehicle and Card Services (TMVCS). Provides customer

agencies with a broad scope of services that includes travel and relocation services, freight management, motor vehicle acquisition, fleet management, and charge card services.

e. Integrated Award Environment (IAE). Creates and maintains an environment

that realizes and maximizes the power of Federal procurement standards through a mix of agency fee-for-service contributions and ASF funding. IAE's mission is to work with the Federal acquisition workforce and its business partners to standardize, integrate, and streamline the Federal procurement process through electronic means while increasing transparency and ensuring compliance with all applicable Federal award regulations.


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53. Budget formulation. The ASF is financed primarily by payments from other Federal agencies for goods and services acquired on their behalf. Payments include reimbursements (or advances) for the cost of property and services acquired through the fund, plus a fee fixed by the Administrator. Certain statutory activities are financed by appropriations.

a. GSA ensures full cost recovery by establishing rates and fees according to the following principles:

(1) ASF rates will be calculated at the business line level. Generally, each business unit will be expected to recover all operating costs in the fiscal year expensed. Business lines may be permitted to incur planned losses in a limited number of circumstances, so long as the ASF in total recovers all costs.

(2) All contributions and deductions, including estimated profits and losses and

all capital investments and one-time costs, will be based on reliable projections of cost, prepared in accordance with cost estimation best practices.

(3) Business units will monitor performance throughout the year, and take

immediate action to correct unplanned profits or losses.

b. ASF has the authority (40 U.S.C. § 321) to retain revenues collected in excess of costs incurred in order to maintain sufficient stocks and supplies, to provide for the replacement of motor vehicles, and for “other anticipated operating needs reflected in the cost and capital plan”.

c. The ASF Cost and Capital plan is used to ensure sufficient capital is maintained

to sustain operations and to finance investments for FAS. The plan has two components: an allocation of the prior-year’s net operating results and a multi-year plan for business and investment reserves.

d. Analysis of budgetary requirements takes into account the costs associated with:

(1) The acquisition of products and services to fill customer orders. (2) The acquisition of products in advance of customer orders, which are

warehoused until requested by a customer. (3) The acquisition of recurring services through managed service contracts. (4) Establishing multiple-award and indefinite delivery/indefinite quantity

contracts for the use of multiple Federal agencies.

e. Funds may be obligated for any purpose consistent with the authority of the fund as outlined in 40 U.S.C. § 321. This includes:


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(1) Procuring personal property and non-personal services. (2) Procuring personal services relating to the provision of IT. (3) Paying the cost of repair, rehabilitation, and conversion of personal property,

including personal services. (4) Paying direct and indirect costs of contracting, procurement, inspection,

storage, management, distribution, and accountability of property and non-personal services procured by GSA.

f. During OMB’s review of the budget request, they can suggest adjustments that

affect total estimated obligations and staffing. Generally, Congress does not review revolving funds, including the ASF. 54. Budget execution. Internal control procedures have been established to monitor program execution and ensure the financial integrity of the fund.

a. Under the master allowance, the FAS Commissioner or designee issues allowances to Regional and C.O. officials for their direct and reimbursable administrative programs. At the same time, SSOs are requested to provide Pegasys document numbers for the distribution of centralized administrative services reimbursements. This will be the basis for posting function-related income to the ASF.

b. Fees are collected on a regular basis. Funds collected are immediately

available for reobligation without further authorization or approval by Congress. c. Income and expenses are carefully monitored during the year to ensure balance. d. Exceeding a master allowance or allotment violates GSA's system for the

administrative control of resources. e. Although a basic financial goal is to break even, it is not a violation of

Antideficiency statutes if expenses exceed income for a year (a net loss). A temporary loss can be recouped from subsequent-year earnings.

f. A violation of Antideficiency statutes occurs if, at the total fund level, current

liabilities plus undelivered orders exceed the sum of cash, receivables, advances, and unfilled customer orders.

PART 14: UNCONDITIONAL GIFTS 55. Background and purpose. The full name of this trust fund is “Unconditional Gifts of Real, Personal, or Other Property”. This fund account is used to receive gifts and monies donated by private citizens, U.S. state or local governments, other Federal agencies, and foreign states. These gifts can be received at any time, and officially


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become GSA property once they are added to this fund. How the GSA uses these gifts varies on a case-by-case basis.


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Document Change History

Version Date Author Description of Changes

V 1.0 September 16, 2005 GSA Agent Original Version

V 1.2 June 18, 2014 Victoria Oosterhout Updated Draft (overall format, Chapter 1)

V 1.3 July 24, 2014 Kim Sauls Updated Draft (Chapter 2)

V 1.4 September 9, 2014 Victoria Oosterhout Updated Draft (overall format)

V 1.5 October 20, 2014 Victoria Oosterhout Updated Draft (Chapter 4)

V 1.6 November 20, 2014 Kim Sauls, Victoria Oosterhout

Updated Draft (Chapter 3, appendices)

V 1.7 January 28, 2015 Victoria Oosterhout Updated Draft (entire handbook)

V 1.8 May 6, 2015 Victoria Oosterhout, Cheryl Bradford

Incorporated initial feedback from the Directives Management Branch.

V 1.9 May 28, 2015 Victoria Oosterhout, Kim Sauls, Cheryl Bradford

Incorporated additional feedback from the Directives Management Branch.

V 1.10 June 11, 2015 Victoria Oosterhout, Kim Sauls, Cheryl Bradford

Incorporated feedback from the Office of Congressional and Intergovernmental Affairs.

V 1.11 June 25, 2015 Victoria Oosterhout, Kim Sauls, Cheryl Bradford

Incorporated feedback from Region 7.

V 1.12 July 15, 2015 Victoria Oosterhout, Cheryl Bradford

Incorporated feedback from the Office of Inspector General.

V 2.0 Month DD, YYYY Craig Hull Final Version

While the document is in the draft stage, its version numbers should end with a numeral greater than X.0, (for example: 0.1, 0.2, 1.1, etc.). Once a draft has been approved for finalization, the version number goes up by one in the document change history. All final versions end in X.0 (for example: 1.0, 2.0, etc.). The date of draft or final version approval becomes the latest revision date of the document.


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Appendix A: Budget Terms and Definitions

A

Accounting classifications. A prescribed uniform system of coding financial transactions used to sort obligation and expenditure data; in some cases, the same terms may have different meanings when used to generally describe budget administration.

Accounts. Federal and trust funds are established as central accounts in the Treasury to provide the framework for a set of balanced accounts on the books of the agency concerned. There are five types of appropriation accounts and two types of receipt accounts for Federal funds, and two types of appropriation and one type of receipt account for trust funds.

Account symbol. An alphanumeric designation of seven or more characters to identify for each account the agency responsible, the period of availability, and the account or fund group.

Accrued costs. The financial expense resulting from goods and services received, other assets acquired, and construction and repair work put in place during a fiscal year, whether or not paid for, and regardless of when the order was placed or funds obligated.

Administrative control of funds. A system required by law and prescribed by regulation to prevent the over-obligation or over-expenditure of available resources, and to fix responsibility and set penalties if an over-obligation or over-expenditure occurs.

Administrative limitation. An internal restriction on the use of resources.

Advance. An amount paid prior to the later receipt of goods, services, and other assets. Advances are ordinarily made only to payees to whom an agency has an obligation, and they do not exceed the amount of the obligation.

Agency. Any department, agency, commission, authority, administration, board, or other independent establishment in the executive branch of the government, including a corporation wholly or partly owned by the United States that is an independent instrumentality.

Allocation. Strictly the amount of budget authority transferred from one agency, bureau, or account that is set aside in a transfer appropriation account to carry out the purposes of the parent appropriation or fund. However, this term has been used more loosely throughout the document.

Allotment. An authorization by either the agency head or another authorized employee to his/her subordinates to incur obligations within a specified amount. Each agency


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makes allotments pursuant to specific procedures it establishes within the general requirements stated in OMB Circular No. A-11.

Allowance. In GSA, a sub-allocation of resources under an allotment that conveys to a named individual, the “allowee” or “allowance holder”, the authority to obligate funds and the responsibility (administrative, rather than legal) for their control. The sum of allowances does not exceed total and quarterly (if applied) limitations on a parent allotment.

Annual Salary Rate (ASR). The amount established by law (5 U.S.C. § 5504(b)) to compensate an employee at each grade and step for a standard work year of 52 workweeks of 40 hours each, i.e., 260 paid days or 2,080 paid hours. In accordance with Section 15203(a) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (P.L. 99-272), however, hourly rates of pay are determined by dividing the annual rate of basic pay by 2,087, rather than 2,080; amounts paid to an employee for 2,080 hours, which may be more or less than the published annual salary rate. ASR is also a budget term used to indicate the total yearly compensation paid to all permanent and temporary employees in an organization. NOTE: Total yearly compensation paid is based on the number of compensable hours applicable to each fiscal year (2080, 2088, or 2096). The total amount paid could be more or less than the stated annual rate.

Annualize. To project for a full year that which exists for only part of a year; e.g., rental of equipment for 6 months at a cost of $100 would cost $200 if annualized for a full year.

Antideficiency Act. Section 3679 of the Revised Statutes, as amended; as codified in title 31 U.S.C. Chapters 13 and 15. The basic law governing the use of funds, it prohibits obligating or expending funds in excess or in advance of amounts appropriated or otherwise legally available, and sets penalties for violation.

Apportionment and reapportionment. A distribution made by OMB of amounts available for obligation in an appropriation or fund account into amounts available for specified time periods, activities, projects, objects, or any combinations of these. The amounts so apportioned limit the obligations that may be incurred. An apportionment may be further subdivided by an agency into allotments, sub-allotments, and allocations.

Appropriation. A provision of law (not necessarily in an appropriations act) authorizing the expenditure of funds for a given purpose: 1) An authorization by an act of Congress that permits Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes; 2) An amount, from a fund balance or budget that has been designated for a specific purpose and is not available for other uses.

Appropriation account. A summary account established in the Treasury for each appropriation or fund showing transactions applying to the account (see Accounts).

Appropriation language. The text of an appropriation item in a bill or act that identifies the agency, amounts, and purposes for which funds are appropriated; it may also alter


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the time period of availability from that otherwise set in the act, or direct or limit the use of funds. It is often called "bill language" to denote its statutory nature, as opposed to "report language" that is advisory.

Appropriation limitation. A provision in appropriations language or elsewhere in an act that restricts or prevents the use of funds for certain purposes, or that limits use of funds to specific purposes.

Augmentation of appropriations. An illegal action that occurs when other sources are used to increase funding for a purpose entirely supported by an appropriation, if this is not otherwise authorized in law.

Authorization. Substantive legislation that sets up or continues legal operation of a Federal agency or program, sanctions a particular type of obligation/expenditure, or otherwise approves the use of public monies for stated purposes. Authorizations may be current or permanent, and definite or indefinite. Generally, authorization is a prerequisite to appropriation of funds; sometimes agencies receive authorization directly in an appropriations act.

Average employment. The average of all employees in pay status for a period of time, but commonly used to mean staff years or work years, the full-time equivalent of total time worked by all employees (i.e., total hours worked in a period, divided by the number of hours that a single full-time employee would work in the period) (see Full-Time Equivalent).

Average grade. For classified employees, average grade is determined by multiplying each grade number (e.g., GS-9) by the number of positions in the grade, adding the results, and dividing the sum by the total number of positions; computations are carried out to two decimal places. Senior Executive Service (SES) positions are not included.

Average salary. Average salary for graded positions is computed by dividing total compensation paid or budgeted for all employees at annual salary rates by the total number of positions; payments for overtime, night differentials, overseas duty, and pay above the stated rate are excluded. For ungraded positions, it is total compensation divided by actual or expected average employment.

B

Balanced Budget Act. The Balanced Budget Act of 1997, P.L. 105-33, set yearly spending caps that would eliminate budget deficits and result in a budget surplus by FY 2002. It also amended the Congressional Budget and Impoundment Control Act of 1974 to make permanent certain changes that were enacted as part of the Budget Enforcement Act of 1990. It also amended the Balanced Budget and Emergency Deficit Control Act of 1985 to extend through FY 2002 changes made in the Budget Enforcement Act of 1990, and to make further refinements in the process and enforcement (sequester) mechanisms (see Budget Enforcement Act).


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Balanced Budget and Emergency Deficit Control Acts (BBEDCA). The Balanced Budget and Emergency Deficit Control Act of 1985, P.L. 99-177 of December 12, 1985, also called Gramm-Rudman-Hollings, made major changes to the budget process. It set statutory maximum budget deficit levels by fiscal year leading toward a zero deficit; prohibited the President from submitting a budget, or Congress from adopting a budget resolution, that would result in exceeding the legal deficit limits; changed 31 U.S.C. 1105 to require that the President submit his annual budget by the first Monday following January 3 of each year (later amended to the first Monday in February); modified procedures and accelerated budget timetables in the Congressional Budget and Impoundment Control Act of 1974; and required that spending authority in an execution year be "sequestered" (reduced or canceled) in the amount that projected deficit levels for a year exceeded legal maximums. The Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, P.L. 100-119 of September 29, 1987, revised the previous annual deficit limits, replaced an earlier sequestration process, and changed the law pertaining to rescissions and deferrals. Many of these provisions were further extended or modified by the Budget Enforcement Act of 1990 and the Balanced Budget Act of 1997 (see Balanced Budget Act, Budget Enforcement Act).

Bill. Most legislative proposals before Congress are in the form of bills, designated by H.R. in the House and S. in the Senate, depending on the chamber in which they originate. They are assigned numbers in the order in which they are introduced during the two-year period of a Congressional term.

Borrowing authority. The authority provided by law to incur financial obligations that will result in outlays. You violate the law if you enter into contracts, issue purchase orders, hire employees, or otherwise obligate the government to make a payment before a law has provided budget authority for that purpose. Budget authority has several forms. For revolving funds, budget authority authorizes obligations and outlays using offsetting collections typically provided in authorizing laws. Appropriations acts limit obligations in some cases. Obligations may be incurred against orders from other Federal accounts, but not from the public.

Budget activity. A specific and distinguishable line of work performed by a governmental unit to discharge a function or sub-function for which the governmental unit is responsible. Activities within most accounts identify the purposes, or types of activities financed. For example, food inspection is an activity performed in the discharge of the health function. A budget activity is presented in the “program by activities” section in the Program and Financing Schedule for each account in the Budget of the United States Government.

Budget amendment. A proposal, submitted by the President after budget transmittal but prior to completion of appropriation action by the Congress, that revises previous requests.

Budget authority. Authority provided by law to incur obligations that result in immediate or future outlays of government funds. Appropriations acts are the most common


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means of providing budget authority, although the following types of appropriations are not recorded as budget authority because they do not authorize incurring additional obligations: to liquidate contract authority, to reduce outstanding debt, for refunds of receipts, and to liquidate deficiencies. Other forms of budget authority are borrowing authority, contract authority, and authority to obligate and expend the proceeds from offsetting collections (spending authority from offsetting collections). Budget authority may be definite or indefinite, depending on whether or not amounts are specified when the authority is granted, and becomes available from current Congressional action or from permanent authority (see also New Budget Authority).

Budget cycle. The period of budget administration for a fiscal year. It begins with formulating initial estimates and ends with post-execution performance review, covering a period of as much as three years.

Budget deficit. The amount by which the government's budget outlays exceed its budget receipts for a period. Deficits are financed primarily by borrowing from the public.

Budget Enforcement Act. The Budget Enforcement Act of 1990, title 13 of the Omnibus Budget Reconciliation Act of 1990, P.L. 101-508 of November 5, 1990, made a number of changes in the budget process. It modified the deficit control acts of 1985 and 1987 (Gramm-Rudman-Hollings) to set caps on categories of discretionary spending as well as on levels of permissible deficit; to require deficit-neutral, pay-as-you-go procedures for changes in revenue and entitlement measures; and to provide for multiple sequesters if spending caps or deficit limits are exceeded. It also permanently revised the due date for submitting the President's annual budget to Congress to as soon after January 3 as possible, but no later than the first Monday in February. Its basic provisions and some modifications were reenacted in the Balanced Budget Act of 1997 (see Balanced Budget Act).

Budget estimates. Formally organized material prepared and submitted to support requests for funding that describes and justifies program and financial requirements.

Budget execution. The phase of the budget cycle when enacted or otherwise available resources are applied to accomplish program requirements, and are administered and controlled within legal authorities and limitations.

Budget formulation. The phase of the budget cycle that involves developing requirements and obtaining appropriations or other resources needed for program execution.

Budget of the United States Government. The budget for a fiscal year for the Federal Government, transmitted by the President to Congress as soon as possible after January 3, but no later than the first Monday in February, of each year (31 U.S.C. § 1105 (amended)).

Budget surplus. The amount by which government receipts exceed outlays for a given period.


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Budget update. A statement that summarizes the effects on a pending budget of changes that have occurred since it was originally submitted. The President may submit updates at any time, but he or she is required by the Budget and Impoundment Control Act of 1974, as amended, to transmit a mid-session update of budget estimates by July 15 of the year in which the budget is submitted.

Budget Fiscal Year (BFY). Year of funding authority. Determines the fiscal year against which the fund can be legally obligated or expensed.

Budgetary resources. 1) For purposes of budget execution, budgetary resources include new budget authority, available unobligated balances at the beginning of the year, reimbursements and other income, recoveries of prior year obligations from unexpired accounts, and restorations. 2) An amount available to enter into new obligations and to liquidate them. Budgetary resources are made up of new budget authority (including direct spending authority provided in existing statute and obligation limitations), and unobligated balances of budget authority provided in previous years.

Business-like activity. Also known as "business operations", involves any activity that is performed for the primary purpose of making a profit. Business activities can include things like operations, marketing, production and administration.

C

Call. A formal request for units to submit budget estimates or recommended distribution of available resources; it includes policies, formats, instructions, and deadlines for submission of the data.

Ceiling. A firm limitation established by higher authority on dollar and/or personnel resources. It may be a maximum amount within which budgets are developed, such as agency fiscal planning levels from OMB, or a restriction on obligations, outlays, or employment during budget execution.

Category ‘A’ apportionment. Any apportionment that is financially distributed according to fiscal quarter.

Category ‘B’ apportionment. Any apportionment that is financially distributed by project or activity, or for any length of time other than a fiscal quarter.

Chief Financial Officers Act. The CFO Act of 1990 (P.L. 101-576, revised) provided for CFO positions in 25 major agencies and required annual reports on the financial condition of government entities and on the status of management controls. Under the Act, Federal agencies are subject to the same kinds of financial reporting that have long been required in the private sector and by state and local governments.

Clearing account. An account, usually temporary, that contains amounts that will be transferred to a different account. For example, a company might use a clearing account to hold revenue and costs when completing year-end fiscal calculations. When


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the company has finished placing the revenue and costs in the account it can then transfer the amount to the company's net earnings.

Component. A discrete organizational part or unit of a larger organization. Depending on context, it can be a service, staff office, or region within GSA, or a specific office within a service or region.

Concurrent Resolution on the Budget. A resolution, or agreement, passed by both chambers of Congress, and not requiring the President's signature, that establishes the Congressional Budget of the U.S. government for a fiscal year; it sets binding targets for later Congressional action. Under the Congressional Budget Act of 1974 (2 U.S.C. § 621), as amended, Congress completes action on the concurrent resolution by April 15 of each year.

Congressional Budget. The budget set forth by the Congress in its concurrent resolution. It includes the appropriate level of total budget outlays and new budget authority, subdivided by major functional categories; recommended levels of Federal revenues; the appropriate level of public debt; and the amounts, if any, of surplus or deficit in the budget. Informally, the term is also used to refer to the President’s Budget that has been submitted to Congress.

Continuing Resolution. A measure enacted by Congress to provide budget authority/ appropriations to continue ongoing activities when a regular appropriation is not enacted by the beginning of a fiscal year (October 1); it stipulates the rate at which obligations may be incurred, and possibly other authorities or restrictions, during its effective period. Technically "stopgap" interim financing measures, continuing resolutions have also been used as de facto omnibus appropriations that cover large segments of the government for a full fiscal year.

Contract authority. Contract authority permits you to incur obligations in advance of an appropriation, offsetting collections, or receipts to make outlays to liquidate the obligations. Typically, Congress provides contract authority in an authorizing statute to allow you to incur obligations in anticipation of the collection of receipts or offsetting collections that will be used to liquidate the obligations.

Controllability. The ability under existing law to control outlays during a fiscal year. "Relatively uncontrollable" usually refers to spending that cannot be materially altered without changing existing law, such as for entitlements or payments due under prior year obligations.

Crosswalk. A matrix that reconciles two or more sets of data for comparability or that displays data on a "then and now" basis, with intervening changes.

Current services budget. An estimate of the budget authority and outlays that would be required if programs and activities were carried on without policy changes, adjusted only for the projected future implications of current law and changes in economic assumptions.


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D-E

Deferral. Any executive branch action or inaction that temporarily withholds, delays, or effectively precludes the obligation or expenditure of budgetary resources. The President reports deferrals to Congress by special message. They are not identified separately in the budget.

Deficit. The amount by which outlays exceed receipts in a fiscal year. It may refer to on-budget, off-budget, or unified budget deficit.

Deficiency appropriation. An appropriation made to an expired account to cover obligations incurred in excess of available funds.

Deficiency apportionment. A distribution of available budgetary resources for a fiscal year that anticipates the need for supplemental budget authority; they are made only under specified conditions. The need for additional authority is usually shown by making the amount apportioned for the fourth quarter less than the amount required. A deficiency apportionment, however, does not authorize exceeding available resources.

Deobligation. An agency's cancellation or downward adjustment of previously recorded obligations.

Disbursement. Amounts paid out by Federal agencies during the fiscal year. This term is used interchangeable with the term outlay.

Employees in pay status. Employees on the agency payroll (including those on detail to another agency) at a given time. Employees on furlough or detailed from another agency are excluded.

Engrossed Bill. The final copy of a bill as passed by one chamber, with the text as amended by floor action and certified by the Clerk of the House or the Secretary of the Senate.

Enrolled Bill. The final copy of a bill that has been passed in identical form by both chambers, certified by an officer of the chambers of origin, and sent to the House Speaker, the Senate President Pro Tempore, and the President for signature.

Entitlement authority. The authority, generally provided by an authorizing statute, to make payments (including loans and grants) to persons or non-Federal entities who meet the requirement established by law.

Expenditure. A term that has the same definition as outlay.

Expired account. An account for which authority to incur new obligations has lapsed, although valid adjustments can be made to existing obligations, and from which outlays may be made to pay existing obligations and liabilities.


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Extra paid day(s). Days in excess of the standard work year of 260 paid days or 2,080 paid hours. Every fiscal year begins on October 1 and ends on the following September 30; depending on where these dates fall in the administrative workweek, a fiscal year can also contain 261 or 262 paid days. The one or two extra days are reflected in estimates for the fiscal year in which they occur.

F

Filled positions. Positions occupied at some point during a reporting period, such as on the last day of a month or year.

Fiscal Year (FY). The government's accounting period. It begins on October 1 and ends on September 30, and is designated by the calendar year in which it ends. The following are often used in the budget instead of naming specific fiscal years:

1) Past year (or prior year) (PY). The fiscal year immediately preceding the current year; the last completed fiscal year.

2) Current Year (CY). The fiscal year immediately preceding the budget year; it is

also used to refer to the fiscal year being executed.

3) Budget Year (BY). The fiscal year for which budget estimates are developed and submitted.

4) Out years (BY+ 1, BY+2, BY+3, BY+4). The first, second, third, and fourth fiscal

years following the budget year. Franked mail. Mail is “franked” whenever the sender does not have to pay postage. Instead, postage is paid by the United States Government. All elected officials receive franked mail privileges while they are in office. Former Presidents and the spouses of former Presidents also receive mail franking privileges (see Chapter 4, Part 9).

Full funding. Including budgetary resources for the total cost of a program or project at the time it is budgeted, whether or not all obligations are made in the budget year; pertains to multiple-year programs and accounts.

Full-time employees. Those who are regularly scheduled to work the number of hours and days required by the administrative workweek for their group or class. They may occupy permanent or temporary positions; it is the nature of the appointment, not the position that determines the classification.

Full-Time Equivalent (FTE). The basic measure of the levels of employment used in the budget. It is the total number of hours worked (or to be worked) divided by the number of compensable hours applicable to each fiscal year.

Function. A means of presenting budget authority, outlay, and expenditure data for Federal programs according to their major end purpose (e.g., national defense, health,


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income security, general government, etc.). This is one way in which the President’s Budget is presented and considered during the Congressional budget process.

Fund. A financial entity consisting of resources set aside for the purpose of carrying on specific activities or attaining certain objectives (see Accounts).

Furlough. A mandatory but temporary leave of absence from employment, usually without pay. Commonly used during periods of reduced funding, continuing resolution years, sequestrations, and/or to avoid violating Antideficiency laws.

G-K

General provisions. Language in an appropriation or other act that applies to multiple appropriations or titles contained in that act, and which states authorities for or limitations on program execution or resource availability (e.g., "none of the funds in this Act may be used for....").

Government Performance and Results Act (GPRA). Requires agencies to submit strategic and performance plans to Congress and report on accomplishments (P.L. 103-62).

Gramm-Rudman-Hollings. Popular name for the Balanced Budget and Emergency Deficit Control Act of 1985, P.L. 99-177 of December 12, 1985, named after the primary sponsors of the legislation. Its provisions were modified by subsequent acts (see Budget Enforcement Act).

Grants. Assistance awards in which substantial involvement is not expected between the Federal Government and the recipient during performance of the contemplated activity.

GSA-Wide goal. The major areas of emphasis for the agency through which it will carry out its mission.

Holiday pay. Additional pay above the stated annual rate for work performed on holidays falling within the basic workweek.

Identification code. An 11-digit code for each account in the budget of the United States government (President's Budget) that identifies the agency, the account, the timing of transmittal to Congress, the type of fund, and the account's functional classification.

Impoundment. Any executive action or inaction that temporarily or permanently withholds, delays, or precludes the obligation or expenditure of budgetary resources.

Incremental funding. The provision or recording of budgetary resources for a program or project based on obligations estimated to be incurred within a fiscal year when such budgetary resources will not cover all the program's or project's obligations.


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Initiatives. A related group of actions intended to solve a management problem or capitalize on an opportunity. Initiatives are generally one-time efforts and do not repeat themselves year-to-year.

Intermittent employee. One who is employed on an irregular or occasional basis with no prearranged hours or days of work, with compensation only for actual time worked.

Joint Resolution. Either of the following: (1) A Congressional action that becomes law in the same manner as a bill (that is, bicameral enactment and presentment to the President). While there is no real difference between a bill and a joint resolution, the latter is generally used in dealing with matters such as a single appropriation for a specific purpose. Joint resolutions are typically used to increase the statutory limit on the public debt and for continuing appropriations. These joint resolutions require a majority vote, just as bills do. (2) A Congressional action used to propose amendments to the Constitution. Resolutions to propose amendments to the Constitution are not presented to the President for approval. Adoption of a joint resolution to propose a constitutional amendment requires a two thirds majority vote. An amendment proposed by a joint resolution becomes effective when ratified by three-fourths of the states.

L-N

Lapse. To expire, as in authority that has lapsed, or to be absent, as in an appropriations lapse. It is also a budget term that describes the difference between onboard employment with compensation at stated annual rates, and the actual FTE worked and compensation paid; the savings result from delays in filling vacancies, absences without pay, etc.

Leave with pay. Leave that is chargeable to normal paid leave pending separation by disability or optional retirement, subject to certain criteria. This status is not counted toward employment level limitations.

Leave Without Pay (LWOP). Leave that is not charged to normal paid leave.

Long-Term target. Any target set four or more years in the future.

Mark. Colloquial term for the results of action on a budget request. It usually compares amounts requested with those recommended or approved, and identifies the reasons for proposed adjustments.

New Budget Authority. A term from the Congressional Budget Act, used in the Congressional budget process for any statutory changes in permanent, contract, borrowing, or entitlement authority that would increase amounts otherwise available by law.

New Obligational Authority (NOA). Spending authority that sets or limits amounts available for new obligation. For example, NOA in annual appropriations acts for GSA's Federal Buildings Fund limits the use of receipts and revenues that would otherwise be


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available. NOA is not counted as new budget authority for purposes of the Budget Enforcement Act.

Night differential. A percentage in excess of basic compensation for hours worked between 6 p.m. and 6 a.m., when part or all of a regular tour of duty falls between these hours.

O

Object classification. A uniform classification identifying the obligations of the Federal Government by the types of goods or services purchased (such as personal compensation, supplies and materials, and equipment) without regard to the agency involved or the purpose of the programs for which they are used.

Obligations. A binding agreement that will result in outlays, immediately or in the future. Budgetary resources must be available before obligations can be incurred legally.

Obligated balance. The cumulative amount of budget authority that has been obligated but not yet outlaid.

Obligational authority. The sum of (1) budget authority provided for a given fiscal year, (2) unobligated balances of amounts brought forward from prior years, (3) amounts of offsetting collections to be credited to specific funds or accounts during that year, and (4) transfers between funds or accounts. The balance of obligational authority is an amount carried over from one year to the next because not all obligational authority that becomes available in a fiscal year is obligated and paid out in that same year. Balances are described as obligated, unobligated, or unexpended.

Obligations incurred. Amounts of orders placed, contracts awarded, services received, and similar transactions during a period that will require outlays during the same or a future period. An obligation incurred, net, is total obligations less offsetting collections reported for the account.

Operating budget plans. The budget or financial plan for revenue and expenses for an organization’s operations. In essence, an operating budget is a projected income statement.

Outcome. Accomplishments or results that occur because of the service efforts of government entities.

Outlays. A payment to liquidate an obligation (other than the repayment of debt principal). Outlays are generally equal to cash disbursements but also are recorded for cash-equivalent transactions, such as the subsidy cost of direct loans and loan guarantees, and interest accrued on public issues of the public debt. Outlays are the measure of government spending.

Output. A tabulation, calculation, or recording of activity or effort that can be expressed in a quantitative or qualitative manner.


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Oversight Committee. The Congressional committee or subcommittee charged with overseeing the operation of an agency or program and, usually, the committee providing annual appropriation authorization for agency programs that require it.

Overtime. Special pay for work performed beyond the basic work period.

P-Q

Part-time employee. One who is regularly employed on a prescheduled tour of duty that is less than the specified hours or days of work for full-time employees in the same group or class. Such employees may occupy permanent or temporary positions; it is the nature of the appointment, not the position, that determines how they are reported for budget and ceiling purposes.

Passback. A document that contains OMB's initial recommendations on an agency budget request. For GSA, passback normally occurs in mid-to-late-November of each year. As modified by the results of subsequent discussions between OMB and agency decision-makers, it is the basis for estimates reflected in the President’s Budget.

Performance goal. A desired level of accomplishment expressed in tangible, measurable terms against which actual achievement can be compared. Performance goals must be annual, and can be either outcome goals or output goals.

Performance measure. Standards used to evaluate the effectiveness and efficiency of the work being performed.

Permanent employee. One whose employment is without time limit or for not less than one year; it is the nature of the appointment, not the position, that determines how they are reported for budget and ceiling purposes.

Permanent position. One that is established without time limit, or for a limited period in excess of one year, or which is occupied for a year or more regardless of the intent when it was established.

Personnel benefits. Cash allowances directly paid to current Federal employees, such as housing, subsistence, relocation, and other allowances when authorized; and payments to other funds for the benefit of employees, e.g., the employer share of employee retirement, life and health insurance, retirement, accident compensation, Federal Insurance Contribution Act taxes, and other such payments.

Personnel compensation. Gross payment for services of Federal employees, including wages; overtime; holiday, night work, hazardous duty and other differentials; and cash incentive awards.

Pocket veto. The act of the President withholding his approval of a bill after Congress has adjourned. When Congress is in session, a bill becomes law without the President's signature if he does not act on it within 10 days, excluding Sundays; but if


A-14

Congress adjourns sine die6 within the 10 day period, the bill will die even if the President does not formally veto it (see Veto).

President's allowance. A document issued by the Office of Management and Budget, after the President’s Budget is formally submitted to Congress that notifies an agency of the amounts approved by the President for inclusion in that annual budget. It may also contain program direction and planning estimates for out-year programs.

President's budget. See Budget of the United States Government.

Pre-validation. Determining that funds are available in advance of creating obligations.

Program. Generally, an organized set of activities directed toward a common purpose or goal that an agency undertakes or proposes to carry out its responsibilities. Because the term has many uses in practice, it does not have a well-defined, standard meaning in the legislative process. It is used to describe an agency's mission, programs, functions, activities, services, projects, and processes.

Projections. Estimates of budget authority, outlays, receipts, or other budget amounts extending several years into the future. Projections are generally intended to indicate the budgetary implications of existing or proposed programs and legislation. Projections may include alternative programs and policy strategies and ranges of possible budget amounts. Projections usually are not firm estimates of what will occur in future years, nor are they intended to be recommendations for future budget decisions.

R

Reappropriation. Congressional action to restore or extend availability of all or part of unobligated budget authority that otherwise would lapse, either for the same or for different purposes.

Recess. Colloquially, a period of time in which Congress is not in session, but different from adjournment in that a recess does not end the legislative day and does not interrupt unfinished business. The House usually adjourns from day-to-day, but the Senate often recesses, thus meeting on the same legislative day for several calendar days or even weeks at a time.

Refunds. Recoveries of erroneous or excess payments that are credited to an appropriation or fund account. The items, such as the recovery of a salary overpayment or a return of the unused portion of a travel advance, are not recorded as reimbursements, but as reductions to obligations and outlays.

Reimbursements. Amounts received or to be received for goods or services under circumstances other than a continuing cycle of business-type operations.

6 To adjourn sine die means to adjourn for an indefinite period, i.e., if Congress adjourns without setting a return date.


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Reconciliation Legislation. A procedure under the Congressional budget process that brings existing tax and spending laws into conformity with ceilings or assumptions contained in the annual concurrent resolution on the budget. The reconciliation bill, requiring Presidential signature, may enact new revenue measures, reduce enacted budget or spending authority, direct future spending reductions, change entitlements, or a combination of them. The Congressional Budget Act of 1974 (2 U.S.C. § 621), as amended, requires Congress to complete action on reconciliation legislation by June 15 of each year.

Reprogramming. Moving funds between programs or accounts, other than for functional transfers, different from the manner contemplated when they were originally approved or enacted. Movement between appropriations and FBF activities requires legal authority, and may involve formal notification to, or the prior approval of, Congressional committees (see Transfers).

Rescission. An item in an appropriations bill or joint resolution that cancels, in whole or in part, enacted budget authority before it would otherwise lapse. Rescissions proposed by the President are transmitted to Congress by special message; Congress may also initiate a rescission. Under Section 1012 of the Budget and Impoundment Control Act of 1974 (2 U.S.C. § 683), budget authority deferred pending rescission must be made available for obligation if both chambers of Congress do not complete action on a rescission bill within 45 days of continuous session (see Sequestration).

Reserves. Portions of budgetary resources set aside by OMB to (1) provide for contingencies, or (2) effect savings made possible by or through changes in requirements or greater efficiency of operations. Reserve accounts are usually set up to make a balance sheet clearer by reserving or apportioning some of a business's capital against future purchases or liabilities (such as the replacement of capital equipment or estimates of bad debts).

Resolution. A simple resolution is a measure introduced in the House (H Res) or Senate (S Res) that deals with matters entirely within the prerogative of that body, and that requires neither passage of the other body nor approval by the President. It does not have the force of law.

Restoration. The return of resources previously withdrawn, usually the return of unobligated balances previously withdrawn, to pay obligations and settle accounts.

Revolving Fund. A financial entity authorized in law to finance a business-like cycle of operations, with receipts from the operations entirely available for use by the fund (see Accounts).

Rider. A provision, often not germane, that is added to a bill in the hope that it will survive conference action and become law when the bill is enacted.


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S

Scorekeeping. The process of estimating the budgetary effects of pending and enacted legislation, and comparing them to limits set in a Congressional budget resolution or legislation. For purposes of the Congressional Budget Process and appropriations action, the Budget Committees and the Congressional Budget Office are responsible for scorekeeping. For purposes of sequestration, the Office of Management and Budget is responsible for scorekeeping under the law.

Sequestration. A process established by the Balanced Budget and Emergency Deficit Control Act of 1985, (P.L. 99-177), to cancel enacted budget or spending authority when necessary to prevent deficits for a year from exceeding legal maximums. After the Supreme Court declared the process unconstitutional as originally enacted, a revised automatic procedure was enacted in the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, P.L. 100-119 of September 29, 1987. The process was further refined by the Budget Enforcement Act of 1990, (P.L. 101-508 of November 5, 1990).

Severance pay. Payment to an employee who is involuntarily separated. Entitlements are based on years of service and age.

Short-term target. Target set three years or less in the future.

Spending authority. A concept related to budgetary resources that are used as the basis for sequestration under the Balanced Budget and Emergency Deficit Control Act of 1985. It is defined in Section 401(c)(2) of the Congressional Budget and Impoundment Control Act of 1974, as amended, as various types of authority to incur obligations that do not need budget authority to be provided in advance in appropriations acts. They include authority to enter contracts; to incur indebtedness; to make payments to persons or governments who meet legal requirements; to forego the collection of proprietary offsetting receipts; and to make any other payments, including loans, grants, and payments from revolving funds.

Strategic plan. A written description of what an organization ultimately seeks to attain. It contains sufficient detail to enable the reader to discern what the organization seeks to accomplish and how the organization seeks to accomplish it. A Strategic Plan can be of any duration, but generally covers a period of five years or longer.

Strategy. A coordinated approach aimed at achieving an important result.

Substantive law. Public law other than appropriation law; sometime called basic law. It authorizes the executive branch to carry out a program of work. Authorizing legislation is substantive law.

Supplemental appropriation. Additional appropriations proposed or enacted in an execution year for purposes too urgent to be postponed until the next regular appropriation cycle.


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T-U

Target. A quantitative standard, volume, value or rate, set in advance, attainment of which represents success.

Temporary employee. One whose appointment is limited to less than a year.

Terminal leave. Unused accrued annual leave for which lump-sum payment is made when an employee resigns or is terminated.

Transfers. To move budgetary resources from one budget account to another.

Trust funds. Accounts established to collect and disburse funds to carry out specific purposes or programs under a trust agreement or statute.

Undelivered orders. The value of goods and services ordered and obligated which have not been received. This amount includes any orders for which advance payment has been made but for which delivery or performance has not yet occurred.

Unexpended balance. The sum of the unobligated and obligated balances.

Unfilled customers' orders. The dollar amount of orders accepted for goods and services to be furnished on a reimbursable basis.

Ungraded positions. All positions, including wage board, not covered by the Classification Act of 1949 (63 Stat. 945).

U.S. Code. A consolidation and codification of the general and permanent laws of the United States arranged by subject under 50 titles, the first six dealing with general and personnel subjects, and the other 44 alphabetically arranged from agriculture to war. Title 31, dealing with money and finance, governs most aspects of budget administration; to simplify the language of laws relating to fiscal affairs of the government, P.L. 97-258, September 13, 1982, 96 Stat. 877, enacted title 31 into positive law.

Unobligated balance. The cumulative amount of budget authority that is not obligated and that remains available for obligation under law.

V-Z

Veto. Disapproval by the President of a bill or joint resolution. When Congress is in session, the President must veto a bill within 10 days, excluding Sundays, after he has received it or it becomes law without his signature. When the President vetoes a bill, he returns it to the chamber of origin with a message stating his or her objections. See also pocket veto.

When Actually Employed (W.A.E.). Intermittent employees.


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Wage-Board Employees. Those in graded positions in recognized trades, crafts, or custodial work, who are excepted from the Classification Act of 1949 (63 Stat. 954), as amended, and who are paid at rates prevailing for similar work in comparable locations.

Warrants. An official document issued by the Secretary of the Treasury, pursuant to law, that establishes the amount of appropriations that can be obligated and disbursed.

Working capital. Current assets other than unexpended balances, less current liabilities, available for financing accrued costs.

Working Capital Fund. A revolving fund that operates as an accounting entity. In these funds, the assets are capitalized and all income is in the form of offsetting collections derived from the funds' operations and available in their entirety to finance the funds' continuing cycle of operations without fiscal year limitation. A working capital fund is a type of intragovernmental revolving fund.

Year-end strength. The number of personnel an organization has on staff by the end of a fiscal year. Prior to FY 1979, all Federal agencies used year-end strength to calculate budgets for future fiscal years (they now use FTEs).


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Appendix B: List of Acronyms and Abbreviations

For acronyms that appear more than once in this Handbook

AAS Assisted Acquisition Services APG Agency Priority Goal APP Annual Performance Plan APR Annual Performance Report ASF Acquisition Services Fund ASR Annual Salary Rate AWTF Acquisition Workforce

Training Fund BBEDCA Balanced Budget and

Emergency Deficit Control Act BCA Budget Control Act BEA Budget Enforcement Act

BOAC Billed Office Address Code

C.O. Central Office

CASU Centralized Administrative

Support Services

CBA Cost-Benefit Analysis

CBCA Civilian Board of Contract

Appeals

CBO Congressional Budget Office

CFO Chief Financial Officer

CFR Code of Federal Regulations

CR Continuing Resolution

DOD Department of Defense

DOJ Department of Justice

DOL Department of Labor

E.O. Executive Order

E-Gov Electronic Government

FAI Federal Acquisition Institute

FAS Federal Acquisition Service

FAST Federal Account Symbols and

Titles

FBF Federal Buildings Fund

FCSF Federal Citizen Services Fund

FOIA Freedom of Information Act

FTE Full-Time Equivalent

FY Fiscal Year

GAO Government Accountability

Office

GMAO General Management &

Agency Operations

GPO Government Printing Office

GPRA Government Performance and

Results Act

GPRAMA GPRA Modernization Act of 2010

GSA General Services

Administration

GSS General Supplies & Services

GWAC Government-wide Acquisition

Contracts

H.R. House Resolution

HSSO Heads of Services and Staff

Offices

IAE Integrated Award

Environment

IG Inspector General

IPAC Intragovernmental Payment

and Collection (System)

IT Information Technology

ITS Integrated Technology

Services

MAS Multiple Award Schedules

MSR Mid-Session Review

NOA New Obligational Authority

NS2020 Network Services 2020

OAP Office of Acquisition Policy

OCFO Office of the Chief Financial

Officer

OCIA Office of Congressional and

Intergovernmental Affairs

OCM Office of Communications and

Marketing

OCSIT Office of Citizen Services &

Innovative Technologies

OE Operating Expenses


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OFPP Office of Federal Procurement

Policy

OGP Office of Government-wide

Policy

OIG Office of the Inspector

General

OHRM Office of Human Resources

Management

OMA Office of Mission Assurance

OMB Office of Management and

Budget

OPM Office of Personnel

Management

P.L. Public Law

PAR Performance and Accountability Report

PAYGO Pay-As-You-Go

PBS Public Buildings Service

QPU Quarterly Performance Updates

R&A Repairs & Alterations

RWA Reimbursable Work

Authorizations

SES Senior Executive Service

SF Standard Form

SP Strategic Plan SSO Service and Staff Office

TMVCS Travel, Motor Vehicle, & Card

Services

U.S.C. United States Code (of Law)

USDA United States Department of

Agriculture

USPS United States Postal Service

WCF Working Capital Fund


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Appendix C: An Explanation of Treasury Codes

The following information has been taken directly from this website: http://docs.oracle.com/cd/E18727_01/doc.121/e13455/T340593T340601.htm, and http://docs.oracle.com/cd/E18727_01/doc.121/e13455/T340593T340600.htm#FFNDGRPSCHAP respectively. Federal Account Symbols A Federal account symbol is a group of numbers that identifies the agency responsible for the appropriation and fund classification without regard to the period of availability to incur new obligations. The Federal account symbol is the summary level of the treasury symbol.

A treasury symbol is a group or combination of numbers to identify the agency responsible for the appropriation, period of availability, and fund classification. One can define treasury symbols in accordance with a prescribed system of account classification and identification as set forth by the Department of the Treasury.

In the “Define Federal Account Symbols” window, you enter fields such as financing account and cohort segment that are listed in the Federal Agencies’ Centralized Trial-Balance System II (FACTS II). In addition, the “Define Federal Account Symbols” window contains fields that comprise an agency’s treasury symbol, which is built dynamically from fields entered in this window. When building the treasury symbol, fields that are optional, such as department transfer, treasury appropriation fund symbol (TAFS) sub-account, or TAFS split code, and fields that do not have a value entered are not recorded as part of the treasury symbol, as shown in the table below.

Note: GSA has a department (dept.) code of 047. The following table is an example of a particular treasury symbol (069).

Treasury Symbol Examples

Dept. Code

Acct. Code

Dept. Transfer

Time Frame

Years Available

Est. FY Expiration

TAFS Sub-acct

TAFS Split Code

Treasury Symbol

069 2345 15 Single 1 1999 1999 69-15-99-2345

069 2345 15 Multi-year

3 1999 2001 69-15-9901-2345

069 2345 15 No-year 1999 69-15-X-2345

069 2345 Single 1 1999 1999 69-99-2345

069 2345 Multi- 2 1999 2000 921 69-9900-

http://docs.oracle.com/cd/E18727_01/doc.121/e13455/T340593T340601.htm

http://docs.oracle.com/cd/E18727_01/doc.121/e13455/T340593T340600.htm#FFNDGRPSCHAP

http://docs.oracle.com/cd/E18727_01/doc.121/e13455/T340593T340600.htm#FFNDGRPSCHAP


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year 2345-921

069 2345 10 Multi-year

5 1999 2003 921 023 69-9903-2345-921-022

069 2345 No-year 1999 69-X-2345

Defining Federal Account Symbols Use the “Define Federal Account Symbols” window to define a Federal account symbol and its associated treasury symbols and appropriations. Prerequisites Before defining Federal account symbols, one must:

1) Define treasury account codes.

2) For agencies that report cohorts, define an accounting flexfield segment that captures the cohort years.

3) Define accounting periods.

To define Federal account symbols, navigate to the “Define Federal Account Symbols” window. The following table describes selected fields on the “Define Federal Account Symbols” window:

Define Federal Account Symbols Window Description

Field Name Description

Treasury Department Code

Department code assigned by the Department of Treasury (Starting October 31, 2014, Department Codes are to be 3 digits, instead of 2)

Treasury Account Code

Account code assigned by the Department of Treasury

Federal Account Symbol Name

User-defined description of Federal account symbol

Financing Account Federal account symbols that represent a receipt account; includes direct, guaranteed, or non-financing

Cohort Segment Accounting Flexfield segment that lists cohort year; required if financing account is direct or guaranteed

Budget Account Code

Code that links appropriate budget account to treasury symbol


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Start Date Date indicating when Federal account symbol established

End Date Date indicating an agency is terminated and all associated treasury symbols are cancelled

Department Transfer

Department of Treasury agency code receiving funds through an allocation transfer

Time Frame Appropriation time frame

Years Available Number of years appropriation is available; required if time frame is multi-year; disabled for all other time frames

Year Established Year appropriation established

Expiration Expiration date of appropriation; required if time frame is one-year or multi-year

Cancellation Cancellation date of appropriation; required if time frame is one-year or multi-year

Treasury Symbol Treasury symbol. For one-year appropriations, fiscal year is last two digits of established fiscal year. For multiple-year appropriations, fiscal year is last two digits of established fiscal year and last two digits of calculated expiration date. For no-year or revolving appropriations, value is X.

The following table describes selected fields on the “Define Federal Account Symbols” window, Sub-accounts Splits tab:

Define Federal Account Symbols Window Description, Sub-accounts Splits Tab


Department Transfer

Department of Treasury agency code receiving funds through an allocation transfer

Sub-acct Account subdivision of treasury symbol; assigned by Department of Treasury

Split Code Treasury symbol subdivision name; assigned by Office of Management and Budget (OMB) or Department of Treasury

Split Name Name of subdivision of treasury symbol; assigned by OMB or Department of Treasury

Treasury Symbol

Treasury symbol; compilation of department code, department transfer account code, fiscal year, main account code, TAFS sub-account, and TAFS split code. Optional fields that do not have a value entered are not included as part of treasury symbol.


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Parameters Opens Define Appropriation Parameters window

Treasury Account Codes Setup

Accounts are the basis for reporting for the Federal Government's financial transactions. Accounts are classified as receipt or expenditure accounts and are assigned to a fund type and treasury account code or funds group based on account characteristics and the nature of the transactions that the account supports. Treasury account codes are required to run the following processes:

1) FACTS I 2) FACTS II/GTAS 3) Year-End Closing

Note: FACTS II uses the term Treasury Account Code and FACTS I uses the term Fund Group to refer to the same field.

Treasury account codes are also required to enter data in the “Define Federal Account Symbols” window. The following rollup groups are required by FACTS:

1) Clearing accounts 2) Deposit fund accounts 3) Unavailable receipt accounts for Treasury General Fund 4) Unavailable receipt accounts for Special and Trust Fund

Users define Treasury account codes in the Federal Account Symbols and Titles (FAST) Book, a supplement of the Treasury Financial Manual.

Defining Treasury Account Codes

To define treasury account codes, navigate to the Define Treasury Account Codes window. The following table describes selected fields on the Define Treasury Account Codes window.

Define Treasury Account Codes Window Description


Treasury Account Code

Treasury account code; assigned by Department of Treasury

Rollup If selected, indicates that this is a rollup treasury account code that is to be reported in FACTS I

Federal Account Symbol Name

Treasury account code description; also called Federal account symbol name


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Fund Type Fund type, such as General Fund, Deposit Fund, Trust Fund, Special Fund, Revolving Fund Receipt Account, Management and Consolidated Working Fund, or Clearing Account

Receipt Account Receipt account type; enabled when Fund Type is General Fund, Special Fund, or Trust Fund. Valid values include Available and Unavailable

FACTS I Rollup Determines what rollup treasury account code or fund group that the selected treasury account code belongs to for FACTS I reporting. Note: This field is available if the fund type is Clearing Account or Deposit Fund or if the receipt account is unavailable. This field is disabled if Rollup is selected.

[Descriptive Flexfield]

User-customization field

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