Purpose, Authority, and Application of Instructions

11.1. Purpose and authority.

  This Circular is issued pursuant to chapters 13 and 15 of 31 U.S.C.,
as recodified in 1982 (Public Law 97-258, 96 Stat. 877); Executive
Order 11541 of July 1, 1970; and the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344). It provides
instructions on budget execution. For reference, Appendix A contains a
crosswalk between the provisions of the Antideficiency Act, formerly
section 3679 of the Revised Statutes, and the revised language of
these provisions in 31 U.S.C., as enacted in 1982 without substantive
change, but with subsequent amendments.

  This Circular also provides instructions on monitoring Federal
outlays, obtaining exemptions from the General Accounting Office (GAO)
access to records (31 U.S.C. 716), reporting requirements for
unvouchered expenditures (31 U.S.C. 3524), closing accounts (31 U.S.C.
1551-1557), and monitoring Federal employment (P.L. 103-226).

11.2. Application of instructions.

  All appropriations, funds, and other authorizations are subject to
the instructions contained in this Circular (see section 41.1 for
exemptions from apportionment requirements).

11.3. Requirements and modifications.

  In accordance with 31 U.S.C. 1513 agencies are required to submit
information required for apportionment in the form, manner, and at the
time specified by the Director of the Office of Management and Budget
(OMB), as prescribed by this Circular. OMB may also substitute
alternative requirements in lieu of those contained in this Circular.

  Unless otherwise specified, the term "OMB" used in this Circular
refers to the OMB Resources Management Office (RMO) representative
with primary responsibility for reviewing the agency's budget.

  Advance approval by OMB is required for any modification to the
requirements of this Circular requested by an agency.


          Methods and Responsibilities for Budget Execution

12.1. Apportionment process.

  The apportionment process is intended to prevent obligation of funds
in an account in a manner that would require deficiency or
supplemental appropriations and to achieve the most effective and
economical use of amounts made available.

  Apportionments divide amounts available for obligation by specific
time periods, activities, projects, objects, or a combination thereof.
Reapportionments are made when changes occur. For example, approved
apportionments are no longer appropriate or applicable because of a
change in the amounts available for obligation or the occurrence of
unforeseen events.

  Apportionments may also set aside all or a portion of amounts
available for obligation when such action is deemed appropriate by
OMB. Amounts deferred through the apportionment process are those
portions of the total amounts available for obligation that are
specifically set aside as temporarily not available until released by
OMB. Amounts withheld pending rescission are those portions that are
set aside pending the enactment of legislation canceling the authority
to obligate such funds.

  Since budget authority, balances, and other budgetary resources are
stated in terms of authority to incur obligations, the operation of
the apportionment system and the fundamental controls described in
this Circular are on an obligation basis. Thus, apportionments are
generally based on obligations. However, OMB, at its option, may
apportion accounts on some other basis that will provide effective
controls. For example, apportionments may be made on a pre-obligation
basis, such as "administrative commitments," which are made before
firm obligations are incurred, or on the basis of object classes.

12.2. Reports on budget execution.

  The reports prescribed by Part V of this Circular provide essential
information for review of the execution of the Government's budgetary
program. They have been designed to show on a consistent basis and in
practicable detail the status of budgetary resources and related
financial data. These reports, together with other available
information, will be used for the review of apportionments by OMB and
for other budgetary purposes. The reports should also be reviewed in
the agency as a basis for initiating requests for reapportionments,
when appropriate, and for managing the rate of incurring obligations.

12.3. Responsibilities of agencies.

  Agencies are responsible for maintaining systems of accounting, of
internal control, and of administrative control to facilitate
effective management of Federal programs and to avoid violations of 31
U.S.C. 1341, 1342, and 1517. In cases where violations of these
statutes occur, agencies are responsible for preparing reports to the
President and the Congress, in accordance with Part III, and for
making necessary improvements in accounting and administrative control
systems as required to prevent future violations.

  Agencies will also be responsible for initiating requests for
apportionments and reapportionments in accordance with Part IV for
non-credit accounts and Part VI for credit accounts. In addition,
agencies will be responsible for preparing reports on budget execution
in accordance with Part V for non-credit accounts and Part VI for
credit accounts.

12.4. Responsibilities of OMB.

  Under Executive Order 11541 of July 1, 1970, responsibility for
making apportionments was delegated to the Director of OMB. OMB may
make apportionments or reapportionments on the basis of agency
requests or on its own initiative.

  The Director of OMB is also responsible for reviewing and approving
agency systems of administrative control of funds to prevent
violations of the Antideficiency Act.

12.5. Assistance in preparation of schedules.

  OMB is available to assist agencies in complying with the
requirements of this Circular. Agencies should request such assistance
from OMB.

12.6. Responsibilities for disclosure with respect to the budget.

  OMB Circular No. A-11 provides guidance to agencies on
responsibilities for disclosure of budget information. The guidance
provided by Circular No. A-11 applies to the budget execution process
as well. Agencies are reminded that Circular No. A-11:

  --governs responsibilities with respect to supplemental
    appropriation requests; and

  --includes requirements concerning clearance of reprogramming
    requests.