UNCLASSIFIED (U)
4 FAH-3 H-100
BUDGETING
4 FAH-3 H-110
BUDGETING
(CT:FMP-76; 08-20-2013)
(Office of Origin: BP/RPBI)
4 FAH-3 H-111 DEFINITIONS
(CT:FMP-76; 08-20-2013)
Appropriation Act: A public law passed by Congress andsigned by the President that provides funds for committing obligations andmaking payments (expenditures) out of the Treasury for specified purposes. Forthe Department, an appropriation act must include waiver of statutory requirementsfor separate authorizing legislation whenever such authorizing legislation hasnot been enacted first.
Authorization Act: A public law passed by Congress andsigned by the President that establishes or continues the operation of afederal program or agency either indefinitely or for a specific time period, orthat controls obligations or expenditures within a program. Authorizationlegislation usually is a prerequisite for appropriations acts. Anauthorization act for the Department usually sets limits on the amounts thatcan be appropriated, by account; the authorization act does not, however,provide the actual dollars for a program nor does it enable an agency ordepartment to make commitments to spend funds in the future.
Budget: The identification of resources, bothpersonnel and funding, required to accomplish the organization’s goals andobjectives and programs for a specific period of time. A budget is a tool forplanning, managing, and controlling the use of resources. The Department ofState emphasizes the interdependence of these functions by publishing anintegrated performance budget.
Budget authority: Becomes available during the fiscal yearto enter into obligations that result in immediate or future outlays ofGovernment funds. Most budget authority is in the form of appropriations; otherforms are borrowing authority, contract authority, and the authority toobligate and expend offsetting receipts and collections. Appropriations fallinto two categories:
(1) Direct appropriations to the Department of State;and
(2) Appropriations to other departments or agenciesthat are subsequently transferred, allocated, or reimbursed in whole or in partto the Department of State.
Budgetary resources: Comprise new budget authority, which isthat amount requested from and approved by the Congress for the Department eachfiscal year, and other obligation authority, which includes unobligatedbalances carried forward, transfers, recoveries, and offsetting collections,including reimbursem*nts. Total obligation authority is the sum of allbudgetary resources for a particular account that the Department is authorizedto obligate.
4 FAH-3 H-112 APPROPRIATIONS
4 FAH-3 H-112.1 Appropriation Use,Limitation, and Types
(CT:FMP-76; 08-20-2013)
a. An appropriation is the most common form ofbudgetary resource. Appropriations are typicallyprovided for a specific purpose, period oftime, and amount, depending upon thenature of the programs being funded. The obligation and subsequent expenditureof appropriations must be within the purposes for which the funds wereappropriated by the Congress, unless funds are reprogrammed or transferredpursuant to statutory authority and procedures.
b. Under certaincirc*mstances and within specific appropriations, the Department has statutoryauthority to extend the period of availability for appropriations using aprocess called reclassification. Funds subject to reclassification must havespecific statutory authority. Reclassified funds are subject to OMB approvalthrough the apportionment process.
c. Obligationsmay not be incurred nor expenditures be made in advance of or in excess of anappropriation. To do so is in violation of the Anti-Deficiency Act and theresponsible officer is subject to removal from office and may be punished byfine or imprisonment.
d. Three maintypes of appropriation acts are regular, supplemental, and continuing. Aregular appropriation is enacted each fiscal year for that fiscal year. Asupplemental appropriation is enacted when needed. A continuing appropriationis enacted when action on one or more regular appropriations bills is notcompleted before the beginning of the fiscal year. Each type of appropriationact may include specific provisions governing the availability (by program,purpose, or time), obligation, and expenditure of the appropriation.Supplemental appropriations often have starting and especially ending datesthat do not coincide to those for regular appropriations. Following are typesof regular and/or supplemental appropriations.
4 FAH-3 H-112.1-1 AnnualAppropriations
(CT:FMP-29; 02-17-2005)
a. Annual appropriations are provided for recurringobligations associated with operations essentially unchanged in nature fromyear to year but which may vary in level; they are available from October 1 toSeptember 30 in the fiscal year for which they are appropriated. Annualappropriations typically include such costs as the payment of salaries, travel,utilities, and equipment maintenance. Diplomatic and Consular Programs,Representation, and the Office of Inspector General are examples of annualappropriations within the Department of State.
b. An annual appropriation is available for makingobligations during the fiscal year in which it is available. An annualappropriation expires at the end of the period of its availability, which meansthat it is not available for new obligations.
c. An annual appropriation is subject to adjustmentsand will be maintained by fiscal year identity for five years after it expires.
d. After the five-year adjustment period, theappropriation is closed. Any unliquidated obligations and unobligated balancesmust be withdrawn and canceled. Any claims for valid obligations must beobligated and disbursed from the current year appropriation available for thesame purpose at the time a valid claim is submitted to the Department.However, the cumulative total of old obligations payable from currentappropriations may not exceed one percent of the current appropriation. Inaddition, any such payment may not exceed the unexpended balance of the closed(original) appropriation from which the old obligation was made.
4 FAH-3 H-112.1-2 No-YearAppropriations
(CT:FMP-29; 02-17-2005)
a. No-year appropriations are generally provided forcomplex programs of a continuing nature characterized by multiple phases thatpreclude a definite completion date. Such appropriations are usuallyappropriated each year, but each year’s obligational authority is availableuntil fully expended. For example, the Embassy Security, Construction andMaintenance account is a no-year appropriation that provides for new U.S.Government facilities overseas, including planning, design, site acquisition,construction, finishing and furnishing.
b. A no-year appropriation is open for obligation foran indefinite period of time and unobligated balances are carried forward fromfiscal year to fiscal year. However, unobligated balances from the previousfiscal year must be reapportioned and reallotted before funds can be obligatedin the new fiscal year (see 4 FAH-3 H-120).Authority for closing a no-year appropriation is provided under 31 U.S.C. 1555.
4 FAH-3 H-112.1-3 Multi-yearAppropriations
(CT:FMP-29; 02-17-2005)
Multi-year appropriations are provided to remain availablefor a specified number of fiscal years for program initiatives which areexpected to extend over more than one year but which should have a finite lifespan. As with no-year appropriations, unobligated balances of multi-yearappropriations from the previous fiscal year must be reapportioned andreallotted before funds can be obligated in the new fiscal year. As withannual appropriations, multi-year appropriations are subject to adjustments andwill be maintained by fiscal year identity for five years after they expire.Authority to pay claims from canceled obligations is the same as for annualappropriations.
4 FAH-3 H-112.2 AppropriationStructure
(CT:FMP-76; 08-20-2013)
The Department regularly receives over 50 appropriations,which are a mixture of the annual, no-year, and multi-year types. TheDepartment must manage the balances of no-year and multi-year appropriationsthat carry over from year to year even though no new appropriations arereceived. In the Global Financial ManagementSystem (GFMS), the appropriation code is 14 digits. The specific natureof an appropriation can be determined by the fifthand sixth characters in the GFMS appropriationcode, which specifies the year(s) of fundavailability.
(1) An annual appropriation will have an underscore and single digit as the fifth and sixth characters, representing thecurrent fiscal year.
(2) A no-year appropriation will have an underscore and “X” as the fifth and sixth characters, which representsindefinite fund availability.
(3) A multi-year appropriation will have two digits asthe fifth and sixth characters, whichindicates the starting and ending years of fund availability.
4 FAH-3 H-112.3 DepartmentAppropriations
(TL:FMP-1; 09-30-1994)
The appropriations received by the Department are providedin 4 FAH-1 H-200.
4 FAH-3 H-113 OTHER BUDGETARY RESOURCES
(CT:FMP-76; 08-20-2013)
The most common form of authority given to an agencyallowing it to incur obligations is a direct appropriation. Other forms ofbudgetary resources available to the Department include borrowing authority,transfers, unobligated balances brought forward (also called carryforward orcarryover), spending authority from offsetting collections (also calledreimbursem*nts), and actual recoveries ofprior year obligations.
4 FAH-3 H-113.1 Borrowing Authority
(CT:FMP-29; 02-17-2005)
Borrowing authority permits the Department to incurobligations and make payments to liquidate the obligations out of fundsborrowed from the Treasury. The Repatriation Loan Financing Account (19X4107)borrows funds from the Treasury to cover that portion of each repatriation loanthe Department expects the borrower to repay. The account is managed inconformance with the Credit Reform Act of 1990, Title V of Public Law 101-508.
4 FAH-3 H-113.2 Transfers
(CT:FMP-76; 08-20-2013)
a. A transfer shifts budgetary authority from one appropriationor fund account to another, as specifically authorized by law. The nature ofthe transfer determines whether the transaction is considered an expenditure ornonexpenditure transfer, and how the funds are handled as budgetary resourcesand accounted for.
(1) An expenditure transfer represents payment,repayment, or receipt for goods or services furnished or to be furnished.Shifts of budgetary resources between Federal funds and trust funds, regardlessof the purpose, also are expenditure transfers. An expenditure transfer is atype of offsetting collection (reimbursem*nt or advance payment). The mostcommonly used legal authority for expenditure transfers is the Economy Act (31U.S.C. 1535).
(2) A nonexpenditure transfer does not represent paymentfor goods and services received or to be received but rather serves to adjustamounts available in the accounts for making payments. Nonexpendituretransfers include allocations. An allocation is the amount of budgetaryauthority from one agency, bureau, or account (called the parent appropriationor fund) that is set aside in a transfer appropriation account to carry out thepurposes of the parent appropriation or fund.
b. Appropriated funds can be transferred between appropriation accounts for a variety of reasons. Any transfer of funds mustbe supported by the relevant statutory authority allowing the movement of fundsfrom one account to another. The Department uses a variety of legal authorities to move fundsbetween accounts, each with different flexibilities and restrictions. It isimportant to note that the legal authority used to move funds between accountsdefines the flexibilities or restrictions applied, not the financial mechanismto actually transfer the funds (expenditure transfer vs. non-expendituretransfer).
(1) One such legalauthority is included in the annual Department of State, Foreign Operations,and Related Programs appropriation act under the General Provisions section.The General Provision traditionally restricts transfer authority by the totaldollar amount, the accounts among which funds can be transferred, and/or thepercent by which a recipient account can be increased. Separate authority mayexist to transfer funds from another agency or third party to the Department ofState (for example, section 632(a) of the Foreign Assistance Act of 1961 -Public Law 87-195, section 632 or the Capital Security Cost Sharing authority,118 STAT. 2920, Public Law 118-447 section 629). Depending on the transferauthority, funds transferred from one appropriation to another may or may notretain the original purpose or duration for which they were appropriated (i.e.,single year, multi-year or no-year), or retain their original governingprovisions. For example under section 632(a), funds retain their originalpurpose and duration while under the Capital Security Cost Sharing authority,funds take on the purpose and duration of those provided to the Department forexecuting the Capital Security program.
(2) It is important notto confuse a transfer (the movement of funds between accounts) withreprogramming (the movement of funds within an appropriation, but betweenprograms, projects or activities).
c. As required by OMBCircular A-11, each nonexpendituretransfer must be reflected in an apportionment for both parent and recipientaccounts (allocation transfers have special rules), and in a nonexpendituretransfer authorization approved by the Treasury.
4 FAH-3 H-113.3 UnobligatedBalances Brought Forward
(CT:FMP-76; 08-20-2013)
An unobligated balance brought forward (also called carryforward or carryover) is thecumulative amount of budgetary authority that was not obligated in an accountin the prior fiscal year but remainsavailable for obligation under law in the currentor future fiscal years.Unobligated balances brought forward are additional budgetary resources in thefiscal year into which they are carried forward.
4 FAH-3 H-113.4 OffsettingCollections
(CT:FMP-29; 02-17-2005)
The Department earns and collects budgetary resources tosupplement Congressional appropriations. Offsetting collections result frombusiness-type or market-oriented activities with the public, such as fees, andintra-governmental transactions with other Government accounts. When creditedto accounts for spending, offsetting collections are a form of budgetaryauthority that permits obligations and outlays using the collections. Legalauthority is required to retain offsetting collections. The authority tocollect and spend offsetting collections usually is provided in specificauthorizing laws, which usually allow the collections to be spent for thepurposes of the account without further action from Congress, thoughappropriations acts may limit obligations in some cases. Offsetting collectionscan be from Federal or non-Federal sources and can be received by advancepayment or reimbursem*nt.
4 FAH-3 H-113.4-1 Availability ofOffsetting Collections
(CT:FMP-76; 08-20-2013)
The amount of offsetting collections should be estimated by account and are subjected to the Office of Management andBudget (OMB) review and approval within the apportionment process (see 4 FAH-3H-121.3). Offsetting collections are allotted to earning bureaus in thesame manner as appropriated funds, but there is an important differenceconcerning when the collections can be allotted.
(1) Private Sector Fees—Governmententities often charge user fees directly to recipients of certain services theyprovide. Most Department fee income derives from providing consular services,including issuing passports and visas. The Department receives limitedadditional private sector fee income through licenses, by making spaceavailable at Blair House or the Diplomatic Reception rooms, and may obtainother earnings from FSI course tuition or foreign language translationservice. Although private sector fees must be estimated to be apportioned,they are not allotted until they have been received and recorded in theDepartment’s accounting system. The Bureau ofBudget and Planning (BP) coordinatesthe estimation and apportionment of these resources and allots them to theappropriate operating bureaus only after ascertaining that correspondingcollections already have been made.
(2) Governmental Transactions—Federalgovernment agencies frequently provide goods and services to other agencies ona reimbursable basis. The servicing agreements preclude the need for multipleorganizations to maintain duplicative infrastructure and are authorized underthe Economy Act (31 U.S.C. 1535) or other legislation. Department bureausprovide a variety of goods and services to other agencies or Department bureausboth overseas and domestically. Governmental transactions can be fundedthrough advance payments or reimbursem*nts, but in either case the collectionsmust be estimated and apportioned within the account’s overall budgetaryresource total. However, unlike private sector fees, budgetary authority fromgovernmental transactions can be allotted before actual receipt in anticipationthat other federal agencies or Departmental bureaus will fully meet theirobligations. However, the allottee must ensure that reimbursable agreementsare effected and payments are submitted for collection so that disbursem*nts donot put the allotment into a negative position (see 4 FAM 082.2-1).BP coordinates the estimation,apportionment and proper allotment of these resources to the appropriateoperating bureaus. Governmental transactions fall into two general costcategories:
(a) Direct service costs are those costs of goods orservices that can be identified as being incurred directly and wholly for thebenefit of a specific agency or Department bureau. Examples are languagetraining for an employee of another agency, purchase of dedicated officeequipment, and providing translation services to another governmental entity.
(b) Common or central support costs cannot readily beidentified as attributable to a specific agency or Department bureau.Therefore, the costs are distributed among all benefiting agencies orDepartment bureaus according to published pricing schedules or cost sharingtenets, generally using a revolving fund.
(3) Proceeds of Sale—Periodicreplacement cycles for property result in the Department having property forwhich it has no apparent need and whose retention otherwise would generateadditional storage costs. The items frequently are sold at overseas posts forfair market value and generate income called proceeds of sale. The income isreceived by the overseas posts and reported to Washington through the financialmanagement system. The aggregate value of “proceeds” is reported periodicallyby gaining bureaus to BP, which mustobtain equivalent budgetary authority by reapportioning accounts where theproceeds were recorded. BP allots back togaining bureaus the approved authority, which can be reallotted back to theoriginating organizational unit. These budgetary resources can be used topurchase similar items during the current fiscal year and one subsequent year,except that proceeds generated by property funded from no-year accounts areavailable until expended.
Procedures forrecording and tracking proceeds of sale for real and personal property areidentified in 4 FAH-3 H-327, Proceeds of Sale of Property. Thedistribution of proceeds from the sale or exchange of real property, and ofincome from properties under lease or license are governed by the provisions of15 FAM 522.
(4) Trust Funds—A trust fundis a type of account designated as such by law for specific purposes and forwhich specific accounting rules apply. The timing of trust fund allotmentsdepends on whether the funds are from private sector or governmental sources.The Department’s trust funds are listed in 4 FAH-1 H-260;two types are described below:
(a) The conditional gift fund and unconditional giftfund are funded from private sector sources. The accounts operate understatutory authority available for the Department to accept gifts made for thebenefit of the Department or for carrying out its functions. A fulldescription of the gift funds and their operating tenets is set forth in 2 FAM 960; and
(b) The Foreign Service National Separation LiabilityTrust Fund (FSNSLTF) is funded from governmental sources. It funds separationpayments for eligible Foreign Service National (FSN) employees of theDepartment of State, including the International Cooperative AdministrativeSupport Services (ICASS). The fund covers accrued separation liabilities toemployees who would be eligible for payments due to voluntarily resignation,retirement, or loss of employment due to a reduction in force. Participationis available only in those countries that, due to local law, require a lump-sumvoluntary separation payment based on years of service. In some countriesindividuals can periodically obtain advances on accrued liability balancesprior to separation.
4 FAH-3 H-113.4-2 Revolving Funds
(CT:FMP-29; 02-17-2005)
Revolving funds are used to conduct continuing cycles ofbusiness-like activity, in which the fund charges for the sale of products orservices and uses the proceeds to finance its spending, usually without therequirement for annual appropriations. One type of revolving fund is theintra-governmental revolving fund, which is used for conducting business-likeoperations mainly within and between Government agencies. The revolving fundsare used for the delivery of central goods and services at established rates.Such funds are budgeted to recover the cost of delivering the goods orservices, plus the overhead costs of that organization. The Department’sWorking Capital Fund is an intra-governmental revolving fund.
4 FAH-3 H-113.4-3 Working CapitalFund
(CT:FMP-76; 08-20-2013)
a. A working capital fund is a revolving fund that isauthorized by specific provisions of law to finance a continuing cycle ofoperations in which expenditures generate receipts and the receipts areavailable for expenditure without further action by Congress. The Department’sWorking Capital Fund was established to provide a more effective means forcontrolling the costs of goods and services produced by commercial activities;to provide a more effective and flexible means of financing, budgeting, andaccounting for these activities; to foster cost consciousness and efficiencyfor both the users and suppliers of services; and to promote a buyer-sellerrelationship between the producing activity and the customer.
b. The fund operates by providing revolving, workingcapital for the activities funded. This requires the user to obligatebudgetary resources for work orders for Working Capital Fund activities. Thecharges for working capital fund services must be sufficient to cover alloperating and overhead expenses, including the replacement of capital assets,required to sustain activity operations. Working Capital Fund charges arereviewed annually and a pricing schedule is published and distributed to allpotential users.
c. The following activities operate under a workingcapital fund in the Department, pursuant to section 13 of the State DepartmentBasic Authorities Act of 1956, as amended (22 U.S.C. 2684):
(1) Publishing and DistributionServices—Provides information through print, graphics and other digitalmedia. Also provides centralized editorial, graphic, reproduction, offsetprinting, and CD-ROM replication;
(2) Freight Forwarding andWarehousing Services—Prepares paper work, booking export ocean and airfreight shipments of personal property and official supplies from points withinthe United States to posts abroad. Also,prepares paperwork for receiving, clearing through Customs, and forwardingocean and air freight shipments of personal property and official supplies tolocations in the United States;
(3) Domestic Fleet Management—Providesmotor vehicle services to Department offices in the continental United States;
(4) InformationTechnology Services—Provides centralizedmanagement control over equipment and services for unclassified voice/datatelecommunications;
(5) Special Support Services—Providesgeneral services including delivery of shipments at the Main State Building,laborers for office moves, plus the installation of security devices and otherservices;
(6) Washington Distribution Branch—Providesfor receipt and shipment of nonstock items for posts, receipt, stocking,storage, shipment, and/or delivery of expendable and nonexpendable items forboth domestic and overseas use;
(7) Library Services—Procuresall periodicals, books and newspapers for the Department;
(8) Procurement Shared Services—The Office of Acquisitions Management (A/LM/AQM)manages, plans, and directs the Department's acquisition programs and conductscontract operations in support of activities worldwide. A/LM/AQM is involvedor carries out almost all procurements. Regional procurement and supportoffices in Florida and Frankfurt provide regional support by managing the localconditions involved at each post. The overseas procurement cost center acts asan intermediary for non-State acquisitions;
(9) Foreign Missions ProgramOperations—Facilitates the securing and efficient operations of foreignmissions and public international organizations in the United States;
(10) Operations—Providesoversight of operations and financial management to employee associations (commissaries,recreational facilities, etc.) at overseas posts;
(11) Post Assignment Travel—Encompasses all flights, shipping charges, temporaryand long term storage, per diem travel expenses, and other miscellaneous costassociated with moving a Foreign Service officer and their family to and from apost;
(12) Medical Services—Facilitates charges for medical evacuations,hospitalizations, and expenses related to obtaining a medical clearance;
(13) IT Services—Managesfunds for consolidated desktop IT services;
(14) Aviation—Providesrevenue for the costs associated with the operation and maintenance of selectedaviation assets in the Department; and
(15) International Cooperative Administrative SupportServices (ICASS)—As authorized in 22U.S.C. 2695, the ICASS program provides theoverseas shared administrative support services platform used by agenciesrequesting such services on a reimbursable or advance of funds basis.Services include, but are not limited to, human resources, financialmanagement, certain security, medical, mail and pouch, a full range of generalservices (e.g., procurement, travel, warehousing, shipping/customs, leasing,motor vehicle service, etc.), and building operations. The costs of theICASS program are distributed among all subscribing agencies according to thepolicies and procedures outlined in 6 FAH-5.
4 FAH-3 H-113.5 Recoveries
(CT:FMP-76; 08-20-2013)
A recovery is the amount of any cancellation or downwardadjustment of an obligation recorded in a prior budget fiscal year of an appropriation available in the current fiscalyear (no-year or unexpired multi-year funds). It excludes a downwardadjustment of an obligation established in the current budget fiscal year.Recoveries are additional budgetary resources in the fiscal year in which theyare made. Per OMB Circular A-11, recoveries must be apportioned prior to beingavailable for obligation in the current fiscal year.
4 FAH-3 H-114 BUDGET PROCESS
4 FAH-3 H-114.1 Budget Formulationand Congress
4 FAH-3 H-114.1-1 BudgetFormulation
(CT:FMP-29; 02-17-2005)
a. The budget process is the means by which theDepartment identifies and justifies the resource requirements associated withthe performance of its programs, alternatives within each activity to achievethe desired result, and trade-offs between competing priorities.
b. In determining funding changes among allocations,budget formulation considers field and bureau submissions, statements by theSecretary and other principals, instructions from the Under Secretary forManagement, and policy and program priorities expressed through theDepartment’s strategic planning process. Funding decisions are informed byperformance data and guided by the policy objectives and program requirementsestablished by these statements and planning documents.
c. The Department’s budget review includes thedevelopment of the overall request to the Office of Management and Budget (OMB)for Function 150 (International Affairs). This request includes not only mostof the Department’s budget request but also requirements for the U.S. Agencyfor International Development (USAID) and the Export-Import Bank of the UnitedStates and others. It also includes funding requests for internationalprograms of the Departments of Defense, Treasury, and Agriculture.
Function 150 funds are provided tofinance the foreign affairs establishment, including embassies and otherdiplomatic missions abroad; technical assistance activities in the lessdeveloped countries; international security assistance and foreign militarysales; economic support funding; U.S. contributions to international financialinstitutions; refugee programs; and export-import activities. The Secretary ofState not only determines the resource and program request of the Department butalso, as ombudsman for the Function 150 account, must make trade-offs and setpriorities for the larger foreign affairs community.
4 FAH-3 H-114.1-2 CongressionalBudget
(CT:FMP-29; 02-17-2005)
OMB Circular A-11 directs the entire formulation processby providing detailed instructions and guidance on the preparation andsubmission of annual budget requests and associated materials. A-11 includesan overview of the budget process, general requirements, general policies, andguidance on reporting employment levels and personnel compensation. It alsodefines budget concepts, defines object classes, and details otherjustifications and reporting requirements.
4 FAH-3 H-114.2 Internal DepartmentProcess
4 FAH-3 H-114.2-1 Timeline
(CT:FMP-76; 08-20-2013)
Executive branch departments and agencies are required tosubmit initial budget materials to the Office of Management and Budget (OMB)beginning early in the fall. Other materials are submitted during the fall andearly winter on a schedule supplied by OMB. Budget data is required for the past, current, and upcomingbudget years. OMB reviews all agency budget requests, based on Presidentialpriorities and budget constraints, then passes its decisions back to agencies.Agencies revise their budget requests on the basis of these, or on the basis ofthe settled funding levels if appeals are made.
4 FAH-3 H-114.2-2 Mission andBureau Submissions
(CT:FMP-76; 08-20-2013)
a. The QuadrennialDiplomacy and Development Review (QDDR) of 2010 called for strengthening theplanning process at the Department to improve processes for planning,budgeting, and program and performance management. To that end, multi-yearstrategic plans for both missions and bureaus are now developed prior to theannual budget process in order for the strategies to serve as a framework forresource analyses and requests. The Joint Regional Strategies, the FunctionalBureau Strategies and the Integrated Country Strategies serve as foundationsupon which the Department aligns planning with budgeting. These strategiesincorporate the Secretary's highest priorities and provide measurements todetermine the progress achieved.
b. Using the strategicgoals and objectives from the mission and bureau plans as a framework, eachoverseas post (mission) and each bureau participate in the formulation of theDepartment's budget through the Mission Resource Request/Bureau ResourceRequest process. The Mission Resource Request (MRR) is the first step in theState budget formulation process. The MRR is a budget document; it is not astrategic plan. Each mission will use the MRR to describe the State Operationsand Foreign Assistance resources required to make progress on its foreignpolicy, and where applicable, development and management objectives. TheBureau Resource Request (BRR) is the next step in the State and USAID budgetformulation process and is informed by the MRRs. The BRR provides each Bureauwith the opportunity to explain and justify the resources required to achievetheir highest foreign policy priorities, bureau strategic goals, and managementobjectives. The BRR is a budget document; it is not a strategic plan.
c. For the internalbudget review, each bureau submits its budget request through its BRR forreview and inclusion in the Department’s budget request to OMB. In this nextstep of the budget process, Bureaus present and defend resource requests forthe upcoming budget cycle informal reviews conducted by senior Departmentmanagement. The Department's budget and performance analysts ensure that thebudget requests are properly estimated, within resource constraints,executable, and reflective of the priority programs and initiatives of theSecretary of State.
4 FAH-3 H-114.3 Budget FormulationSystem
(CT:FMP-76; 08-20-2013)
The Budget Support System (BSS) and web site maintained byBP provide the Department an automatedsystem to generate and maintain the exhibits required for the budgetsubmission. This system:
(1) Standardizes all data entry and data collection usingthe appropriation, organization, and program activities structures by which theDepartment presents its resource needs and requirements to OMB and theCongress; and
(2) Captures resource requirements on a programmaticbasis for all Department program activities and the individual line items thatcomprise these activities.
4 FAH-3 H-115 CONGRESS AND OFFICE OFMANAGEMENT AND BUDGET
4 FAH-3 H-115.1 Role of Office ofManagement and Budget (OMB)
(CT:FMP-29; 02-17-2005)
a. OMB, acting as the agent for the President, reviewsagency budget requests and proposes a cohesive budget embodying an economicprogram and spending priorities, with the ultimate product being the budgetdocument that is presented to Congress in February.
b. OMB review consists of the submission of theDepartment budget request in September, hearings with OMB examiners on theDepartment’s programs, pass back (OMB initial decisions on the Department’srequest), and an appeal process for those decisions that are not acceptable tothe Department. From this review, OMB sets the funding levels, personnellevels and specific program directions that will appear in the President’sbudget request. The Department matches the details of its request to theseparameters.
4 FAH-3 H-115.2 Budget Submissionto Congress
(CT:FMP-29; 02-17-2005)
The President submits the budget request for the ExecutiveBranch to the Congress for authorization and appropriation. This submission,not later than the first Monday in February, incorporates the recommendationsof the Office of Management and Budget (OMB). It is a multi-volume document,which the Department supplements with more detailed documents. It includeslegislative texts for proposed appropriation bills.
4 FAH-3 H-115.3 CongressionalMark-up
(CT:FMP-29; 02-17-2005)
The Congressional Budget Act of 1974, the Balanced Budgetand Emergency Deficit Control Act of 1985 and the Budget Enforcement Act of1990 govern the budget process in the Congress.
(1) The Congressional Budget Act of 1974 created theBudget Committees of the Senate and House of Representatives as well as theCongressional Budget Office. It also created the need for concurrentresolutions that set overall levels of spending by defining federal revenuesand outlays.
(2) The Balanced Budget and Emergency Deficit ControlAct of 1985, mandated reduction of the federal deficit through automaticspending reductions through either the appropriation process or throughsequestration.
(3) The Budget Enforcement Act of 1990, amended theBalanced Budget and Emergency Deficit Control Act of 1985, and establishedlimits on discretionary spending for defense, international, and domesticprograms on a pay-as-you-go system for controlling direct spending. Funds willbe sequestered if spending levels exceed established limits.
4 FAH-3 H-115.4 CongressionalCommittees
(CT:FMP-29; 02-17-2005)
The Congressional budget review process involves bothhouses of the U.S. Congress—the Senate and the House of Representatives.Several types of committees review the Department’s authorization andappropriation requests. Each committee or subcommittee includes members ofboth political parties who are served by professional support staffs.
4 FAH-3 H-115.4-1 BudgetCommittees
(TL:FMP-1; 09-30-1994)
The Senate and House Budget Committees establish theoverall levels of spending, revenues, and the deficit. These committees alsomonitor congressional spending levels and are supported by the CongressionalBudget Office.
4 FAH-3 H-115.4-2 AuthorizationCommittees
(TL:FMP-1; 09-30-1994)
a. Authorization committees are responsible forlegislation authorizing the appropriation of funds to the Department andproviding substantive authorities to manage the Department and the conduct ofthe Department’s programs.
b. The authorization subcommittees for the Departmentof State are the Terrorism, Narcotics, and International OperationsSubcommittee of the Senate Foreign Relations Committee and the InternationalOperations Subcommittee of the House Foreign Affairs Committee.
4 FAH-3 H-115.4-3 AppropriationCommittees
(CT:FMP-76; 08-20-2013)
Appropriation committees are responsible for legislationappropriating funds for all functions and for those items that require newobligational authority. The appropriation requests for the State Departmentaccounts are acted on in the first instance by the State, Foreign Operations, and Related ProgramsSubcommittees of the Senate and House Appropriations Committees.Appropriations requests for Foreign Operations accounts, including thosemanaged by the Department, are acted on in the first instance by the ForeignOperations Subcommittees of the Senate and House Appropriations Committees.
4 FAH-3 H-116 THROUGH H-119 UNASSIGNED
UNCLASSIFIED (U)
