OMB CIRCULAR NO. A-11 ANALYSIS OF CHANGES Revised July 1994 Note: An electronic version of this circular is available for downloading. Contact the Budget Review and Concepts Division on (202) 395-3172 for instructions. ---------------------------------------------------------------------- Old New Sec. No. Sec. No. Change ---------------------------------------------------------------------- 10.1 10.1 The overview of the Executive budget formulation process reflects the Administration's emphasis on greater participation of agency heads and their staff. 10.3 10.3 Initial budget submissions for cabinet and other agencies subject to executive branch review are due September 9th. Beginning September 9th, agencies will be required to provide information on their budget requests through the MAX budget system. 12.3(e) 12.3(e), FTE estimates should be consistent with the 13.4(a) 13.3(a) limitations set in the Federal Workforce Restructuring Act of 1994. -- 12.3(h), Guidance is provided on implementation of the 12.10 Government Performance and Results Act. -- 12.3(i), Estimates should reflect the Administration's 12.3(j) commitment to enhancing customer service and implementing a federal electronic commerce system. -- 12.3(l) Guidance on requesting multi-year appropriations has been provided. 13.2 35.3 Definitions relating to personnel compensation are now included in the section on object classification. 13.3(a) 13.2(a) Agencies are required to provide information on cash awards during the PY. -- 13.3(d) The policy on transfers of FTEs associated with agencies entering into contracts to perform work on a reimbursable basis has been revised. 13.4(b), 13.3(b) For accounts that have allocations to other 36.1 36.1 agencies, the allocation FTEs are to be reported in the personnel summary of the receiving agency without separate identification. 14.2(a), 14.2(a), Within the obligated balances reported in the 32.4 32.4 program and financing schedule, unliquidated obligations and receivables from other government accounts will be presented separately. 15 15 General instructions on justification requirements, including the summary and highlight memorandum, have been revised to make the submissions more useful to both the agencies and OMB. 15.2 15.2 The agency request should be consistent with the funding levels included in policy guidance; agencies are not required to identify and discuss the implications of multiple funding options, unless the request is not consistent with policy guidance. 15.2(a), 15.2(a) Justification materials will include information 47 on performance indicators and performance goals, infrastructure investment and grant programs, and agency restructuring or process reengineering activities; information on program evaluation activities and agencies' program evaluation agenda has been incorporated into the justification materials. A ranking of program elements and related funding levels is no longer required. -- 15.4 Agencies are required to include information on the status of and plans for financial management in their justifications. 15.7 -- Information on "takings" under the Fifth Amendment of the Constitution is no longer required. 15.9 -- Reports on lease-purchases and capital leases are no longer required. 20.4(c) 20.4(c) Receipt classifications will no longer distinguish between collections received from on-budget and off-budget accounts; a new receipt classification has been added for undistributed offsetting governmental receipts. 21.2 21.2 The grant/non-grant split for budget authority and memorandum entries for grant outlays are no longer required in MAX schedules A and S. 21.3(c) 21.3(c) Gross outlays from offsetting collections will be reported separately from other outlays from current and permanent authority. Separate memorandum entries will be used to report outlays from special fund and trust fund budget authority in MAX schedule A. 23.2(b) 23.2(b) Explanations of the automatic outlay calculations in MAX have been clarified. 25.1, 25.4 25.1, 25.4 Agencies are required to report budget authority, as well as outlays, by character class in MAX schedule C. 32.3 32.3 Trust fund appropriations will be reported separately from general and special fund appropriations in MAX schedule P. 32.5 32.5 The distribution of offsetting collections by source has been modified. 33.5 33.5 The treatment of downward reestimates in mandatory programs has been clarified. 33.7, 33.7 MAX schedule G has been separated into two 33.8 33.8 separate schedules; schedule G will be used for direct loans, and schedule H will be used for guaranteed loans. 33.9 33.9 MAX schedules U and W reporting requirements for programs with zero and negative subsidies have been clarified. 33.10 33.10 Instructions regarding interest paid to Treasury and interest received from Treasury by financing accounts have been clarified. Requirements for reporting interest paid to the FFB and supplementary credit data for program accounts have been deleted. 33.11 33.11 Subsidy reestimates that are both less than $1 million and 5 percent or less of the pre-reestimate subsidy value currently recorded in that cohort may be omitted from the current year column of the budget. 33.12 36.3 Instructions on financial statements for financing accounts are included in the section on financial statements. 34.1 34.1 Narrative statements should include data on significant performance indicators, where appropriate. -- 34.3 Narrative statements for programs that are financed by more than one budget account will include a table showing the sources of funding for the program. 35.4 35.5 The object class treatment of payments related to the buy-outs authorized by the Federal Workforce Restructuring Act of 1994 is explained. Agencies should note that further object classification splits may be required for contractual services in the FY1997 Budget. 36.3 36.3 The titles of the financial statements (MAX schedules E and F) have been changed to "statement of operations" (formerly called "revenue and expense") and "balance sheet" (formerly called "financial condition"). Financial statements have been revised to be consistent with the form and content requirements for audited financial statements issued in OMB Bulletin No. 94-01. PY-1 data will be reported for the statement of operations. Statements of operations are no longer required for credit financing accounts. Exemptions from the requirement for financial statements may be granted by OMB, if the statements are not otherwise required by law. 36.5 36.5 Agencies are required to enter data on the status of funds into new MAX schedule J. In addition to the trust funds that have traditionally reported status of funds data, certain other funds are now required to report these data. 36.6 36.6 Reporting requirements for the schedule on unavailable collections (MAX schedule N) have been substantially reduced; most of the information required to produce the schedule will be derived from data in MAX schedules P and R. -- 36.7 The Department of Defense-Military will report data for the budget plan in MAX schedule D. 40.2 40.2 Reporting requirements on resources for financial management activities have been revised; resources will not be reported separately for the CFO organization; several reporting categories have been deleted, and summary-level data on audit of financial statements have been added. 40.3, -- Requirements for data on credit management and 40.4 debt collection level of effort and detail on the audit of financial statements have been incorporated into the report on resources for financial management (exhibit 40A). 42 -- Instructions related to data on credit management and debt collection activities have been deleted. 43.4 40.3 Requirements related to reporting on major information system initiatives have been revised; this information will only be required for financial management and mixed systems. 43.5 -- Requirements for agency acquisition plans have been deleted. 43.6 43.2(a) The threshold for the agency-wide summary on obligations for information technology has been raised to $50 million and the reporting categories have been revised, consistent with acquisition categories used by GSA. 43.7 43.2(b) Benefit-cost analyses prepared pursuant to OMB Circular No. A-130 will be submitted to OMB only when requested by the OMB examiner. 44 44 Data on crosscutting research and development (R&D) activities and technology transfer activities will be collected in MAX; specific instructions on reporting these data will be provided separately by OMB. Narrative statements on R&D, crosscutting R&D, and technology transfer activities are no longer required. 46 -- Instructions related to federal facilities environmental cleanup and compliance activities have been deleted. 48 -- Instructions related to data on education have been deleted. Appendix B Appendix B Risk of ownership has been dropped from the list of criteria that must be met to classify a lease as an operating lease. ---------------------------------------------------------------------- SUMMARY OF MAX LINE CODE CHANGES Note: The MAX User's Guide is a comprehensive reference document that describes OMB's computer system. It is available from the Budget Review and Concepts Division, OMB (Phone: 202-395-6934) ---------------------------------------------------------------------- MAX Schedule, Line Code, and Title Change ---------------------------------------------------------------------- Analysis of Budget Authority, Outlays, and Limitations (A and S) 9311 Outlays from new spending authority from offsetting Add collections 9321 Outlays from non-defense balances of spending authority Add from offsetting collections 9331 Outlays from obligated defense balances of spending Add authority from offsetting collections 9341 Outlays from unobligated defense balances of spending Add authority from offsetting collections 9900 Outlays for grants to State and local governments Delete The following changes apply to schedule A: 9950 Outlays from special funds Add 9960 Outlays from trust funds Add ---------------------------------------------------------------------- Personnel Summary (Q) 3X0X Allocation account--direct Delete 4X0X Allocation account--reimbursable Delete 8X0X Limitation account--allocation Delete ---------------------------------------------------------------------- Program and Financing (P) Current authority: 4026 Appropriation (trust fund, definite) Add 4027 Appropriation (trust fund, indefinite Add 5026 Reappropriation (trust fund, definite) 5027 Reappropriation (trust fund, indefinite) Add Permanent authority: 6026 Appropriation (trust fund, definite) Add 6027 Appropriation (trust fund, indefinite) Add 6028 Appropriation (unavailable balances) (Note: was Renumber previously line code 60.26) 6526 Advance appropriation (trust fund, definite) Add 6527 Advance appropriation (trust fund, indefinite) Add Obligated balance, start of year: 7210 Receivables from other government accounts Modify 72xx Unpaid obligations Modify Obligated balance, end of year: 7410 Receivables from other government accounts Modify 74xx Unpaid obligations Modify Offsetting collections from: 8800 Federal sources Modify 8830 Trust funds Delete 8845 Offsetting governmental Add 8850 Off-budget Federal accounts Delete ---------------------------------------------------------------------- Federal Credit Data (G, H, U, W, and Y) New MAX schedule H will be used to report presidential policy data for guaranteed loans; MAX schedule G will be used for direct loans. 1233 Purchase of loan assets from a liquidating account Add 1350 Default rate Delete 1360 Interest rate Delete 2350 Default rate Delete 2360 Interest rate Delete Addendum: 2364 Other adjustments, net Add 4310 Interest paid to the FFB Delete Composition of direct loan subsidy: 5010 Interest rate/grace period Delete 5020 Net default component Delete 5030 Fees Delete 5035 Other Delete 5040 Average loan maturity Delete 5050 Grace period Delete 5060 Disbursement rates Delete Fees paid to Federal Government: 5070 Commitment fees Delete 5080 Up-front fees Delete 5090 Annual fees Delete Composition of guaranteed loan subsidy: 5110 Interest rate/grace period Delete 5120 Net default component Delete 5130 Fees Delete 5135 Other Delete 5140 Average loan maturity Delete 5150 Grace period Delete 5160 Disbursement rates Delete Fees paid to Federal Government: 5170 Commitment fees Delete 5180 Up-front fees Delete 5190 Annual fees Delete Fees paid to Non-federal lender: 5210 Commitment fees Delete 5220 Up-front fees Delete 5230 Annual fees Delete 5300 Average recovery rate on defaults Delete ---------------------------------------------------------------------- Unavailable Collections (N) 0199 Balance, start of year Modify 02xx Receipts Delete 0368 Offsetting collections Delete 0400 Total: Balances and collections Delete 05xx Appropriations Delete 07xx Balance, end of year Delete ---------------------------------------------------------------------- OTHER CHANGES AFFECTING MAX ---------------------------------------------------------------------- Analysis of Budget Authority and Outlays (A and S) The grant/non-grant split for budget authority is no longer required. Character Classification (C, K, and R) The line codes have been renumbered and the last digit will be used to differentiate between budget authority, outlays, and offsetting receipts. A crosswalk between the new and old codes is provided in section 25.4(b). Budget Plan (D) A new MAX schedule on obligations for PY-BY by the Department of Defense-Military has been added (see section 36.7). Financial Statements (E and F) MAX schedule E has been renamed "Statement of Operations" and schedule F has been renamed "Balance Sheet." MAX schedule F has been renumbered and reconfigured to correspond to entries used in OMB Bulletin No. 94-01, "Form and Content of Agency Financial Statements." A crosswalk between the new and old entries is provided in section 36.3(d). MAX schedule E requires data for PY-1; the schedule is no longer required for financing accounts. Status of Funds (J) A new MAX schedule on balances, cash income, and cash outgo for major trust funds and selected other accounts has been added (see section 36.5). ---------------------------------------------------------------------- List of OMB Contacts The following lists OMB organizational units with primary responsibility for Government-wide instructions on certain sections of this Circular. General questions on the instructions and underlying concepts should be directed to these units. Agency-specific questions on the application of the instructions, as well as on sections not listed below, should be directed to the agency's OMB budget examiner. LIST OF OMB CONTACTS FOR INFORMATION ON OMB CIRCULAR NO. A-11 ---------------------------------------------------------------------- Section Telephone No. Description OMB Contact No.* ---------------------------------------------------------------------- 15.4 Information on financial Office of Federal Financial 395-4534 management Management 15.5 Rental payments for space Federal Services Branch, 395-5090 and land Transportation, Commerce, Justice, and Services Division 15.6 Information on State and Budget Analysis Branch, 395-3945 local Governments Budget Analysis and Systems Division 15.7 Information on motor Budget Concepts Branch, 395-3172 vehicles Budget Review and Concepts Division 15.8 Information on consulting Procurement Law and 395-3501 services Legislation Branch, Office of Federal Procurement Policy 15.10 Information on Inspectors Management Integrity 395-6911 General for Designated Branch, Office of Federal Federal Entities Financial Management 40.2 Report on resources for Office of Federal Financial 395-4534 financial management Management activities 40.3 Report on financial Federal Financial Systems 395-6903 management systems Branch, Office of Federal Financial Management 41 Information on high risk Management Integrity 395-6911 areas Branch, Office of Federal Financial Management 43 Data on acquisition, Information Technology 395-7231 operation and use of Management Branch, Office information technology of Information and Regulatory Affairs 44 Information on research Science and Space Programs 395-3935 and development Branch, Energy and Science Division 45 Information on drug Transportation, Commerce, 395-4892 control programs Justice, and Services Division -- MAX User's Guide Budget Review and Concepts 395-6934 Division -- Electronic version of OMB Budget Review and Concepts 395-3172 Circular No. A-11 Division ---------------------------------------------------------------------- *Area code is 202. ---------------------------------------------------------------------- SUGGESTIONS FOR OMB CIRCULAR NO. A-11 TO: Budget Review and Concepts Division Office of Management and Budget Reference: Circular No. A-11 Room 6236 725 17th Street, N.W. Washington, DC 20503 FROM: Name: Agency: Daytime Telephone: Date: ---------------------------------------------------------------------- ---------------------------------------------------------------------- Please use this page to forward suggestions for improvements to the structure and presentation of information in OMB Circular No. A-11. You may attach additional sheets, if necessary. Comments relating to clarifications and corrections would be most useful. Other comments relating to policy matters should be forwarded directly to your OMB representative. ---------------------------------------------------------------------- SUMMARY: NEW EMPHASES IN OMB CIRCULAR NO. A-11 In the development of last year's budget, the Administration broke new ground by expanding the participation of the Cabinet and major agency heads in each phase of the Executive Branch budget formulation process. For the upcoming 1996 Budget, that participation, as reflected in Circular No. A-11 and elsewhere, will be expanded. The 1996 budget process will take an important step in the direction of presenting more program performance measures--outputs and outcomes--in the budget and of linking goals to the resources required to produce them. This year's revision of Circular No. A-11 reflects this new direction. -- Implementation of the Government Performance and Results Act is described in section 12.10. The Act establishes pilot projects in preparation for the requirement that all agencies have performance plans, goals, and reports of results by the year 2000. -- Agencies are directed to work with OMB to identify performance goals and indicators that will be useful in making and justifying decisions for key programs (section 12.3(h)). -- Agencies are encouraged to include performance goals and indicators in their budget justifications and to include output and outcome measures in the Budget Appendix narrative, where appropriate, instead of workload and other process measures (sections 15.1 and 34.1). -- Agencies are required to provide additional information in their budget justifications and in the printed Budget Appendix on major programs, where program costs are not contained within a single budget account (sections 15.2 and 34.3). Administration priorities on customer service (section 12.3(i)), electronic commerce (section 12.3(j)), and agency restructuring or process reengineering (section 15.2(a)) are emphasized in this year's Circular No. A-11. Other changes to the circular are summarized in the analysis of changes.