General Requirements and Terminology
71.1. Purpose and authority.
This part provides guidance on the preparation of special and
supplementary messages on rescission proposals and deferrals, pursuant
to the Impoundment Control Act of 1974, Public Law 93-344, Title X (2
U.S.C. 681-688) and on the establishment of reserves under the
Antideficiency Act (31 U.S.C. 1512). It also provides instructions on
the preparation of apportionment and reapportionment requests when
funds are deferred or proposed for rescission.
71.2. General requirement.
Any budgetary resources deferred or proposed for rescission will be
reported to the Congress in special and supplementary messages and in
cumulative reports, as described in this part.
71.3. Rescissions.
A rescission is enacted legislation canceling previously enacted
budget authority before the authority would otherwise expire for the
purpose of making obligations.
Rescissions may be proposed by the President or by a Member of
Congress. The Impoundment Control Act of 1974 requires that the
President transmit a special message to Congress whenever he proposes
an amount for rescission (2 U.S.C. 683).
The President is required to report to the Congress whenever he
determines that:
--all or part of any budget authority will not be required to carry
out the full objectives or scope of the programs for which it is
provided;
--all or part of any budget authority limited to a fiscal year
(i.e., annual appropriations or budget authority for the last year
of multiple-year accounts) is to be reserved from obligation for
the entire fiscal year; or
--budget authority should be rescinded for fiscal policy or other
reasons.
The Congress must enact legislation to rescind funds. The enacted
legislation may rescind all, part of, or more than the amount proposed
by the President. If both Houses of the Congress have not completed
action on a Presidentially-initiated rescission proposal within 45
days of continuous session after the proposal is received, any funds
being withheld must be made available for obligation. Funds made
available for obligation under this procedure may not be proposed for
rescission again.
71.4. Deferrals.
A deferral is any executive action or inaction that temporarily
withholds, delays, or effectively precludes the obligation or
expenditure of budget authority. Amounts may be deferred (a) to
provide for contingencies; (b) to achieve savings made possible by or
through changes in requirements or greater efficiency of operations;
or (c) as specifically provided by law (31 U.S.C. 1512; 2 U.S.C. 684).
The President is required to transmit a special message whenever
funds provided for a specific purpose or project are deferred. The
reporting requirement covers (a) amounts deferred through the
apportionment process and (b) those deferred by an agency but not
reflected in the apportionment process. The latter, known as agency
deferrals, are actions within an agency that result from policy
decisions to obligate apportioned funds at a pace slower than intended
by Congress.
Deferrals may be overturned only by an act of Congress.
Specifically, Congress has placed language in appropriations acts to
disapprove them. Deferrals may not be made for the entire fiscal year
in cases where the funds deferred would expire at the end of the
fiscal year (i.e., for annual accounts and the last year of
multiple-year accounts). (See instructions on review of deferrals in
section 72.7.) Unless overturned by an act of Congress, deferrals of
funds that do not expire may remain in effect for the entire year or
for part of the year.
No deferral action may be taken for any period of time extending
beyond the end of the fiscal year covered by a special message. If
funds are to be deferred in the next fiscal year, another special
message must be transmitted at the beginning of that year.
Deferral actions are not appropriate when funds are not obligated
due to delays while acting to fulfill all legal, programmatic, and
administrative requirements or while searching for a way to obligate
funds in a reasonable and authorized manner to carry out program
purposes. Actions of this nature do not constitute deferrals. A
deferral is not an appropriate method to notify Congress of the
reasons why funds are not being obligated when efforts are being made
to obligate the funds.
71.5. Reserves established under the Antideficiency Act.
Reserves may be established under the Antideficiency Act (31 U.S.C.
1512) and the Impoundment Control Act (2 U.S.C. 684) solely to (a)
provide for contingencies; (b) achieve savings made possible by or
through changes in requirements or greater efficiency of operations;
or (c) as specifically provided by law. These reserves are required to
be reported in special messages to the Congress, as described in
section 72.2
On the forms prescribed by this Circular, "reserves" will be
reported as a deferral when established to provide for contingencies
(sec. 71.4) or as a rescission proposal when established to effect
savings (sec. 71.3). Exceptions must be approved by OMB.
71.6. Withholdings under continuing resolutions.
Continuing resolutions are enacted legislation that provide budget
authority and other obligational authority for Federal agencies or
activities to continue operations until a regular appropriation is
enacted or until a specified date. When a continuing resolution covers
only part of the year, any Executive withholding, even if proposed for
the duration of the resolution, will be reported as a deferral
(Comptroller General decision B-205053, dated December 31, 1981). When
a continuing resolution covers the full fiscal year, provides funds
for an activity for the full fiscal year, or covers the remainder of
the fiscal year, funds withheld may be reported as a rescission
proposal or deferral, depending on the nature of the withholding.
71.7. Withholdings under multi-year apportionments.
Where funds are available for obligation beyond the current fiscal
year, multi-year apportionments may encourage the development of full
financial plans that reflect a comprehensive approach to programs.
Multi-year apportionments are allowed in such cases and the normal
rules governing the reporting of withholdings continue to apply.
If funds available for more than one fiscal year are withheld, then
they must be reported in a special message as a rescission proposal or
deferral, as appropriate. (If the funds are apportioned for use (i.e.,
are not withheld), no special message is required). A rescission
report is required if the funds are not intended to be used before
they expire. A deferral report is required if the funds are to be
withheld temporarily.
Moreover, no deferral action may be taken for any period of time
extending beyond the end of the fiscal year covered by a message. If
the funds are to be deferred in subsequent fiscal years, deferrals are
required to be reported at the beginning of each such fiscal year.
Reporting Procedures
72.1. Reports to Congress.
The law requires the President to transmit to the Congress: (a)
special messages; (b) supplementary messages, whenever any information
contained in a special message submitted previously is revised; and
(c) cumulative reports listing the status as of the first day of the
month of all deferrals and rescission proposals previously included in
special messages. The cumulative reports are to be transmitted to
Congress by the 10th day of each month.
Instructions on reporting procedures are provided below.
72.2. Materials required for special messages.
Agencies are required to submit an original and two copies of the
following materials, as appropriate, to the Office of Management and
Budget:
--for each rescission proposal:
-a proposed rescission report (see Exhibit 72A);
-proposed rescission language (see Exhibit 72B); and
-an apportionment request (S.F. 132) that reflects the amount
withheld pending rescission on line 9 of the S.F. 132 (see
Exhibit 72C).
--for each deferral:
-a deferral report (see Exhibit 72D); and
-an apportionment request (S.F. 132) that reflects the amount
deferred on line 10 of the S.F. 132 (see Exhibit 72E).
(For information on materials required for supplementary messages,
see section 72.3 and Exhibits 72F-H.)
The rescission or deferral reports are required to include
information specifying:
--the amount proposed for rescission or being deferred;
--the affected account and specific project or governmental
functions involved;
--the reasons why the amount should be rescinded or deferred;
--the estimated fiscal, economic, and budgetary effects of the
rescission proposal or deferral;
--the effect of the rescission proposal or deferral on the objects,
purposes, and programs for which the amount was provided, to the
maximum extent practicable; and
--any other relevant facts, circumstances, and considerations.
In the case of deferrals, the report must also specify the period of
time the budget authority is to be deferred (i.e., for part of the
fiscal year or for the full year) and any legal authority invoked to
justify the deferral in addition to the Impoundment Control Act (2
U.S.C. 684).
Additional examples of deferral reports and apportionment requests
are included as exhibits, as follows:
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Type of Exhibit Description Exhibit No.
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Apportionment request.... For deferral overturned by 72I
Congress
Apportionment request.... For congressionally-initiated 72J
deferral
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The information provided by the agencies and incorporated into
special messages constitutes formal notification to the Congress of
rescission proposals and deferrals. As such, rescission and deferral
reports prepared by agencies should set forth a brief description of
the program, and a justification that presents in a logical, clear and
concise fashion the reasons for the rescission proposal or deferral, a
persuasive argument in support of each rescission proposal or
deferral, and any other relevant information. The estimated program
and outlay effect should also be specifically addressed.
For instructions on preparation of rescission and deferral reports,
see section 74.1.
72.3. Materials required for supplementary messages.
Whenever information on a rescission proposal or deferral previously
included in a special message is revised, agencies will submit an
original and two copies of:
--a supplementary report explaining the change (see Exhibit 72F for
a supplementary report for a deferral);
--the corresponding revised rescission or deferral report (see
Exhibit 72G for a revised deferral report);
--in the case of rescissions, revised proposed rescission language;
and
--in some cases, a reapportionment request (see Exhibit 72H).
(NOTE: Revisions to information (e.g., amounts withheld or
explanations) contained in rescission or deferral reports will be
preceded by an asterisk (*). The report also will be footnoted "*
Revised from previous report.")
The supplementary report, the revised rescission or deferral report,
and revised rescission language will be included in a special message
from the President to the Congress.
72.4. Cumulative reports.
OMB is responsible for preparing cumulative reports on the status of
rescission proposals and deferrals. For these reports, agencies are
required to notify OMB when all or portions of agency deferrals
(deferrals not withheld through the apportionment process) are
released.
72.5. Timing of submissions to OMB.
For deferrals and proposed rescissions withheld through the
apportionment process:
--the required materials will be submitted when the corresponding
apportionment or reapportionment requests are made to OMB, or
--if OMB suggests changes in or initiates rescission proposals or
deferrals, requested materials will be furnished expeditiously on
a time schedule determined by OMB.
The department or agency head is responsible for identifying
deferrals not withheld through the apportionment process (i.e., agency
deferrals) and for submitting the required materials immediately after
a decision is made to withhold funds.
A supplementary report (and revised rescission proposal report and
proposed rescission language, or deferral report, as appropriate) will
be submitted to OMB whenever an agency submits a reapportionment
request changing the amount of the rescission proposal or increasing
the amount of the deferral, or making any substantial changes to
information contained in a previous report.
Reductions in amounts deferred are reported in cumulative reports
based on approved apportionments. When all or portions of agency
deferrals are released, the agency should contact OMB no later than
the first day of the following month to report the release.
72.6. OMB responsibilities.
OMB will compile and transmit the special and supplementary messages
and the cumulative reports to the Congress and to the Comptroller
General. After the special and supplementary messages are transmitted
to the Congress and GAO, they are printed as House and Senate
documents and in the Federal Register.
72.7. Review of deferrals.
Agencies should review all deferrals periodically so that amounts
deferred for only part of the year may be released in time to be used
prudently before the year ends.
Deferrals of funds expiring at the end of the year should be
reviewed in June. If it is unclear whether funds are needed or could
be prudently used or if a determination is made that such amounts
should not be used before the funds expire, a rescission will be
proposed before the beginning of the fourth fiscal quarter. Only in
exceptional cases will rescissions of annual funds be proposed during
the fourth quarter. All proposed rescissions must be approved by OMB.
If amounts actually becoming available are less than previously
anticipated for indefinite budget authority, transfers,
reimbursements, or recoveries, the difference will normally be
deducted from amounts apportioned. The difference will not be deducted
from amounts deferred or otherwise unapportioned, unless specific
provision is made for a different treatment on the approved
apportionment form, or unless reapportionment action is taken.
Whenever it is determined that a deferred amount will not be required
to carry out the purposes of the appropriation or other authority, it
will be recommended for rescission as required by law (31 U.S.C. 1512
and 2 U.S.C. 683).
72.8. Proposals to lower limitations on trust or revolving funds.
Statutory limitations on the availability of trust or revolving
funds are a mechanism to control funds that would otherwise be
available for obligation under broad authority. The limitations are
generally not the source of authority to incur obligations; rather
they place a ceiling on the use of a portion of the obligational
authority by limiting the amount that can be obligated or committed
for a specific purpose. Generally amounts in trust or revolving funds
do not expire.
A proposal to lower a statutory limitation on funds that do not
expire, by itself, will not result in a rescission. Even when the
Congress enacts the lower limitation, the funds will continue to be
available for other purposes in the same account.
In the rare case when the intent is to restrict the use of such
funds permanently, the proposal must be modified usually by proposing
to amend the authorizing legislation.
If the intent is to lower the limitation and withhold such funds
temporarily, the funds may be deferred through the apportionment
process. To withhold the funds through the apportionment process
requires that the trust or revolving fund be apportioned and the
difference between the limitation and the proposed lower amount be
placed on line 10, deferred, of the apportionment for the trust or
revolving fund.
Whenever an amount is placed on line 10 of an apportionment, a
deferral report is required. As with other deferrals, if it is
intended that the funds be deferred through a subsequent fiscal
year(s), a new deferral report is required at the beginning of each
new fiscal year in which funds are to be deferred.
Whether appropriations language to reduce the limitation is also
required can be determined only after careful programmatic and legal
analyses of the account, the limitation, and the basic legislation
authorizing the program.
72.9. Apportionment action following enactment of rescissions.
In the case of Presidentially-proposed rescissions, apportionment
forms will be submitted to OMB when amounts are to be withheld through
the apportionment process pending rescission.
If Congress completes action on such a proposal within the 45-day
period prescribed by law and rescinds the exact amount proposed by the
President, reapportionment action is not required to reflect the
reduction in budget authority. The S.F. 132 will be adjusted to
reflect the enacted rescission only if reapportionment action is
requested for other reasons. On the S.F. 133, amounts on line 1A or
1C, as appropriate, will be net of enacted rescissions of new budget
authority. Enacted rescissions of unobligated balances will be
reflected on line 2A.
In all other circumstances involving congressional rescission of
amounts initially proposed for rescission by the President,
reapportionment requests will be submitted to OMB promptly upon
completion of congressional action. This includes instances when the
Congress rescinds an amount different from that proposed by the
President within the prescribed 45 days or rescinds all or any portion
of the amount proposed by the President subsequent to the expiration
of the prescribed 45 days of continuous session. In all cases,
agencies will follow congressional action on proposed rescissions
affecting their programs or activities to ensure accurate and timely
reapportionment action.
Congressionally-initiated rescissions may occur as the result of the
reconciliation process established by the Congressional Budget Act (2
U.S.C. 641) or because of changing priorities or economic conditions
during the year. Agencies will submit reapportionment requests after
final congressional approval in such cases and ensure that obligations
do not exceed reduced appropriations. When congressionally-initiated
rescissions take place, apportionments will be adjusted in the
following ways:
--Where initial apportionment action has not been completed before
rescission action is taken and sufficient time exists to revise
the apportionment request (e.g., within 30 days after the date of
enactment of the appropriation bill), the affected agency or OMB
will make appropriate changes to the S.F. 132.
--When there is insufficient time to adjust the initial S.F. 132,
the agency will submit a reapportionment request within 5 calendar
days after the date of enactment of the rescission.
72.10. Release of withholdings necessitated by congressional action or
inaction.
According to law, funds withheld pending rescission must be released
following expiration of the prescribed 45 days of continuous session
without completion of action on the proposed rescission by both Houses
of Congress. Similarly, amounts deferred must be released following
enactment of legislation disapproving a reported deferral.
In situations where funds must be released because of congressional
inaction on proposed rescissions, reapportionment requests reflecting
the release of the affected amounts will be submitted to OMB before
the end of the prescribed 45 days, as determined by OMB. The 45-day
period begins the first day following receipt of a special message by
the Congress, if the Congress is in session. If the Congress is not in
session at the time of the transmittal of a special message, the first
day on which the Congress convenes is the first day of the 45-day
period. If the second session of a Congress adjourns sine die before
the expiration of the 45 days, the special message is considered
retransmitted on the first day of the succeeding Congress and the
45-day period begins the following day. If either House recesses
during a session for more than 3 days to a day certain, the number of
days in recess is excluded from the counting period. OMB, in
consultation with the General Accounting Office, will determine the
day for the release of each proposed rescission and will notify
agencies when funds should be released.
In situations where the Congress enacts legislation to disapprove an
Executive deferral, agencies must take prompt action to ensure the
release of the affected amounts. In those cases where funds have been
deferred through the apportionment process, a reapportionment form,
reflecting release of amounts previously deferred, will be submitted
to OMB not later than the day following enactment of the legislation.
Explanation of Standard Form 132 for Rescissions and Deferrals
73.1. General information.
Deferrals.--Available budgetary resources may be withheld from
obligation temporarily through the apportionment process with the
intent of apportioning them for later use before they expire. Such
deferral action may be taken by OMB on its own initiative or at the
request of an agency. Funds may also be deferred by the agency (i.e.,
agency deferrals) but they are not reflected in the apportionment
process.
Rescissions.--Generally, amounts proposed for rescission will be
withheld during the time proposals are being considered by the
Congress. This may be accomplished through apportionment action or
through agency withholding action. When approved by OMB, funds may be
proposed for rescission without being withheld.
For amounts withheld through the apportionment process, the
following instructions will apply with respect to entries for enacted
and proposed rescissions and deferrals on the S.F. 132 and S.F. 133.
(For timing of apportionment actions, see sections 44.3, 44.4, 72.9,
and 72.10.)
73.2. Use of Standard Form 132.
The following instructions will apply with respect to rescissions
and deferrals. (See section 45.1 for a description of all entries on
the S.F. 132.)
BUDGETARY RESOURCES
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Line Entry Explanation
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Line 1. Budget
authority:
A. Appropriations Amounts shown on this line will be net of
realized.............. enacted rescissions of current year
appropriations.
C. Other new authority. Amounts shown on this line will be net of all
enacted rescissions of new budget authority
other than appropriations.
For lines 1.A and 1.C, show in a footnote the
amount of enacted rescissions on each line.
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Line 2. Unobligated
balance:
A. Brought forward, Enter the unobligated balance brought forward
October 1............. from prior years as of October 1 of the
fiscal year. In cases where balances are
rescinded during the year, amounts shown on
this line will be adjusted downward in the
amount of the enacted rescission. In these
cases, amounts shown will differ from actual
balances reported to Treasury for inclusion
in the Treasury Annual Report Appendix. Show
in a footnote the amount of enacted
rescissions on this line.
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APPLICATION OF BUDGETARY RESOURCES
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Line Entry Explanation
----------------------------------------------------------------------
Line 9. Withheld pending Enter the amount of budgetary resources to be
rescission............. withheld from availability pending
congressional action on a Presidential
rescission proposal. Such amounts are
subject to the Impoundment Control Act (2
U.S.C. 683). Include amounts proposed for
rescission "to achieve savings made possible
by or through changes in requirements or
greater efficiency of operations," in
accordance with 31 U.S.C. 1512. Also include
amounts proposed for rescission for other
reasons, as well as any unapportioned
balances of revolving funds that are being
proposed for rescission (i.e., amounts being
proposed for rescission that could be
effectively, efficiently, and legally
obligated for the purposes appropriated.)
----------------------------------------------------------------------
Line 10. Deferred....... Enter the amount of budgetary resources being
set aside for possible use at a later date,
before the funds expire. Such amounts are
subject to the Impoundment Control Act (2
U.S.C. 684). Include amounts deferred to
meet future contingencies under authority of
31 U.S.C. 1512 and 2 U.S.C. 684. These
entries will also include unapportioned
balances of revolving funds that are
temporarily withheld restrictively, i.e.,
withheld when the agency could effectively,
efficiently, and legally obligate the funds
for the purposes appropriated. Include
amounts in annual accounts deferred for
apportionment later in the year, as well as
amounts in multiple- and no-year accounts
deferred for apportionment in subsequent
years.
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Line 11. Unapportioned Use only for public enterprise and
balance of revolving intragovernmental revolving funds, as well
fund................... as trust funds that are subject to
apportionment. For these types of funds,
enter the amount of budgetary resources that
is neither apportioned nor being withheld
restrictively as a proposed rescission or
deferral, but is credited to the current
fiscal year.
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73.3. Use of Standard Form S.F. 133.
The following instructions will apply with respect to rescissions
and deferrals. (See section 53.1 for a description of all entries on
the S.F. 133.)
BUDGETARY RESOURCES
----------------------------------------------------------------------
Line Entry Explanation
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Line 1. Budget
authority:
A. Appropriations Amounts shown on this line will be net of
realized.............. enacted rescissions of appropriations.
C. Other new authority. Amounts shown on this line will be net of
enacted rescissions of new budget authority
other than appropriations.
For lines 1.A and 1.C, show in a footnote the
amount of enacted rescissions on each line
and explain any differences between amounts
reported and those on the latest S.F. 132.
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Line 2. Unobligated
balance:
A. Brought forward, Enter the unobligated balance brought forward
October 1............. from prior fiscal years as of October 1 of
the fiscal year. Such amounts will be net of
enacted rescissions of balances. In these
cases, amounts shown on line 2A will differ
from amounts reported to Treasury for
inclusion in the Treasury Annual Report
Appendix. Show in a footnote the amount of
enacted rescissions of balances and explain
any differences between amounts reported on
this line and those on the latest S.F. 132.
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APPLICATION OF BUDGETARY RESOURCES
----------------------------------------------------------------------
Line Entry Explanation
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Line 10. Unobligated
balances not available:
B. Withheld pending Enter the total amount withheld pending
rescission............ rescission and reported on line 9 of the
most recently approved S.F. 132.
C. Deferred............ Enter the amount deferred as shown on line 10
of the most recently approved S.F. 132.
D. Unapportioned Enter the amount shown on line 11 of the
balance of revolving most recently approved S.F. 132.
fund..................
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Preparation of Rescission, Deferral, and Supplementary Reports
74.1. Instructions on preparing rescission, deferral, and
supplementary reports.
Rescission, deferral, and supplementary reports will be prepared in
accordance with the following instructions. (Examples of these reports
are illustrated in Exhibits 72A, D, F, and G.)
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Entry Explanation
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Rescission Proposal No.. A number (RCY-XX) is used to identify each
proposed rescission. Enter "R" to designate
a proposed rescission and the last two
digits of the fiscal year for which the
rescission is proposed. OMB will assign a
serial number to distinguish between
individual reports.
If a revised rescission report is prepared,
add an "A" to the OMB-assigned serial number
(XX) of the initial rescission proposal to
indicate the first revision, a "B" to
indicate the second revision, etc.
Deferral No............. A number (DCY-XX) is used to identify each
deferral. Enter a "D" to designate a
deferral and the last two digits of the
fiscal year for which the deferral action is
taken. OMB will assign a serial number to
distinguish between individual deferrals.
If a revised deferral report is prepared, add
an"A" to the OMB- assigned serial number
(XX) of the initial deferral to indicate the
first revision, a "B" to indicate the second
revision, etc.
Agency.................. Enter the name of the department or agency
for which the rescission is proposed or the
deferral action is taken.
Appropriation title and Enter the title of the appropriation or fund
symbol................. account from which the funds are being
proposed for rescission or are being
deferred. Also include the Treasury Account
Symbol(s) to indicate the coverage of the
report. Enter the account symbols:
--for the accounts affected by the rescission
proposal or deferral; or
--for all accounts that are included under
the appropriation title--not just those
subject to the proposed rescission or
deferral.
To indicate the latter case, footnote this
line as follows:
"Includes all accounts included under this
appropriation title".
OMB identification code. Enter the 11 digit identification code used
in the most recent Budget Appendix. Show
transmittal code "0".
Grant program........... Check "Yes" only when the items are
classified as "Grants-in-aid to State and
local governments," and reported as
obligations in response to OMB Circular No.
A-11; otherwise, check "No".
Type of account or fund. Check the box that correctly identifies the
period of fund availability for the accounts
covered by the rescission or deferral
report. Show the date of expiration for each
multiple-year account identified in the
"Appropriation Title and Symbol" block.
Budgetary resources:
New budget authority... Enter the amount of new budget authority
specified in appropriation or substantive
acts that is available in the current year
for the accounts covered by the rescission
or deferral report. This amount should equal
the sum of new budget authority shown on
lines 1.A, 1.B, 1.C and 1.D of the latest
S.F. 132 in exact dollars.
Other budgetary Enter the amount of other budgetary
resources............. resources. This amount is equal to the sum
of lines 2-6 on the latest S.F. 132.
Total budgetary Enter the total amount of budgetary
resources............. resources. This should equal the amount on
line 7 of the latest S.F. 132.
Amount proposed for On rescission reports, enter the amount of
rescission............. budgetary resources proposed for rescission.
Amount to be deferred... On deferral reports, enter the amount of
budgetary resources to be deferred, as
follows:
Part of year........... --report the amount to be deferred for part
of the current year. Use when amounts to be
deferred would expire at the end of the year
(i.e., for annual accounts and the last year
of multiple-year accounts).
Entire year............ --report the amount to be deferred for the
entire current year. Use only when the funds
remain available beyond the end of the
fiscal year.
Legal authority......... Indicate any legal authority in addition to
sections 1012 and 1013 of the Impoundment
Control Act (2 U.S.C. 683-684) for a
rescission proposal or deferral.
Antideficiency Act...... Check this box when a rescission is proposed
or a deferral action is taken under
authority of the Antideficiency Act (31
U.S.C. 1512).
It will be used only when (a) a rescission is
proposed to achieve savings made possible by
or through changes in requirements or
greater efficiency of operations or (b) a
deferral is made to withhold funds
temporarily to provide for contingencies.
Other................... Check this box when the legal authority for
the rescission proposal or deferral is a law
other than the Antideficiency Act or the
Impoundment Control Act and cite the public
law containing the legal authority.
Type of budget authority In most cases, the type of budget authority
will be "Appropriation", e.g., funds made
available through annual appropriations
acts. If contract authority (provided by an
authorization act) is being proposed for
termination, check that box. Other types of
budget authority (authority to borrow)
should be described under "Other."
Justification........... Provide a justification that briefly
describes: (a) the activities funded by the
account; (b) the rationale for the deferral
or the proposed rescission and the
consequences of not expending the funds;
and (c) the authority for withholding the
funds in addition to the Impoundment Control
Act.
Since these reports are transmitted by the
President to the Congress, they should be
written precisely and concisely so that
those who are not familiar with the program
will be able to understand the proposal.
Estimated program effect When there is no estimated program effect,
enter "None" on the appropriate line. This
will normally be the case for rescissions
proposed and deferrals made pursuant to the
Antideficiency Act.
When there is a program effect, include a
brief, clear statement of the expected
effect.
Outlay effect........... Show outlay savings for proposed rescissions
for 19CY through 19BY+4, as appropriate.
Include outlay changes for deferrals for 19CY
through 19BY+4, as appropriate.
Enter "None" for the outlay effect for
deferrals reported pursuant to the
Antideficiency Act.
Footnotes............... For the account(s) covered by deferral or
rescission report, cite any past or current
year rescission proposals or deferrals.
For a revised rescission or deferral report,
indicate all sections containing changes
from initial report with an asterisk (*) and
provide the footnote "* Revised from
previous report." Subsequent revisions to a
report will also indicate changes from the
previous report with the specified
footnotes.
When more than one Treasury account is
affected by a proposed rescission or
deferral, OMB may require detail on
budgetary resources and changes thereto
should be supplied at the Treasury account
level.
Supplementary report.... A supplementary report will be prepared
whenever the purpose of the rescission
proposal or deferral has not changed and (a)
the amount of the proposed rescission
changes; (b) the amount of the deferral
increases; or (c) other substantial changes
are made to the previous report.
When the purpose of a deferral changes, OMB
may determine that a new deferral report is
required. In such cases, a supplementary
report is not required.
No supplementary report is needed when the
amount of a deferral decreases. Reductions
in deferrals are reported by OMB to the
Congress in monthly cumulative reports based
on approved apportionments. When all or
portions of agency deferrals (i.e.,
deferrals not withheld through the
apportionment process) are released, the
agency should contact its OMB representative
no later than the first day of the following
month so that these deferrals can also be
reported by OMB in cumulative reports.
The supplementary report should specify: (a)
the amount of the initial proposed
rescission or deferral reported in a special
message or, in cases where revised reports
have been made previously, the amount of the
latest revision reported in a special
message; (b) the amount currently being
deferred or proposed for rescission, (c) the
amount of the increase in the deferral or
change in proposed rescission; and (d) the
reason for the change. (See Exhibit 72F for
the format of supplementary reports.)
For materials required to be submitted with a
supplementary report, see section 72.3.
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