Purpose, Authority, and Application of Instructions 11.1. Purpose and authority. This Circular is issued pursuant to chapters 13 and 15 of 31 U.S.C., as recodified in 1982 (Public Law 97-258, 96 Stat. 877); Executive Order 11541 of July 1, 1970; and the Congressional Budget and Impoundment Control Act of 1974 (Public Law 93-344). It provides instructions on budget execution. For reference, Appendix A contains a crosswalk between the provisions of the Antideficiency Act, formerly section 3679 of the Revised Statutes, and the revised language of these provisions in 31 U.S.C., as enacted in 1982 without substantive change, but with subsequent amendments. This Circular also provides instructions on monitoring Federal outlays, obtaining exemptions from the General Accounting Office (GAO) access to records (31 U.S.C. 716), reporting requirements for unvouchered expenditures (31 U.S.C. 3524), closing accounts (31 U.S.C. 1551-1557), and monitoring Federal employment (P.L. 103-226). 11.2. Application of instructions. All appropriations, funds, and other authorizations are subject to the instructions contained in this Circular (see section 41.1 for exemptions from apportionment requirements). 11.3. Requirements and modifications. In accordance with 31 U.S.C. 1513 agencies are required to submit information required for apportionment in the form, manner, and at the time specified by the Director of the Office of Management and Budget (OMB), as prescribed by this Circular. OMB may also substitute alternative requirements in lieu of those contained in this Circular. Unless otherwise specified, the term "OMB" used in this Circular refers to the OMB Resources Management Office (RMO) representative with primary responsibility for reviewing the agency's budget. Advance approval by OMB is required for any modification to the requirements of this Circular requested by an agency. Methods and Responsibilities for Budget Execution 12.1. Apportionment process. The apportionment process is intended to prevent obligation of funds in an account in a manner that would require deficiency or supplemental appropriations and to achieve the most effective and economical use of amounts made available. Apportionments divide amounts available for obligation by specific time periods, activities, projects, objects, or a combination thereof. Reapportionments are made when changes occur. For example, approved apportionments are no longer appropriate or applicable because of a change in the amounts available for obligation or the occurrence of unforeseen events. Apportionments may also set aside all or a portion of amounts available for obligation when such action is deemed appropriate by OMB. Amounts deferred through the apportionment process are those portions of the total amounts available for obligation that are specifically set aside as temporarily not available until released by OMB. Amounts withheld pending rescission are those portions that are set aside pending the enactment of legislation canceling the authority to obligate such funds. Since budget authority, balances, and other budgetary resources are stated in terms of authority to incur obligations, the operation of the apportionment system and the fundamental controls described in this Circular are on an obligation basis. Thus, apportionments are generally based on obligations. However, OMB, at its option, may apportion accounts on some other basis that will provide effective controls. For example, apportionments may be made on a pre-obligation basis, such as "administrative commitments," which are made before firm obligations are incurred, or on the basis of object classes. 12.2. Reports on budget execution. The reports prescribed by Part V of this Circular provide essential information for review of the execution of the Government's budgetary program. They have been designed to show on a consistent basis and in practicable detail the status of budgetary resources and related financial data. These reports, together with other available information, will be used for the review of apportionments by OMB and for other budgetary purposes. The reports should also be reviewed in the agency as a basis for initiating requests for reapportionments, when appropriate, and for managing the rate of incurring obligations. 12.3. Responsibilities of agencies. Agencies are responsible for maintaining systems of accounting, of internal control, and of administrative control to facilitate effective management of Federal programs and to avoid violations of 31 U.S.C. 1341, 1342, and 1517. In cases where violations of these statutes occur, agencies are responsible for preparing reports to the President and the Congress, in accordance with Part III, and for making necessary improvements in accounting and administrative control systems as required to prevent future violations. Agencies will also be responsible for initiating requests for apportionments and reapportionments in accordance with Part IV for non-credit accounts and Part VI for credit accounts. In addition, agencies will be responsible for preparing reports on budget execution in accordance with Part V for non-credit accounts and Part VI for credit accounts. 12.4. Responsibilities of OMB. Under Executive Order 11541 of July 1, 1970, responsibility for making apportionments was delegated to the Director of OMB. OMB may make apportionments or reapportionments on the basis of agency requests or on its own initiative. The Director of OMB is also responsible for reviewing and approving agency systems of administrative control of funds to prevent violations of the Antideficiency Act. 12.5. Assistance in preparation of schedules. OMB is available to assist agencies in complying with the requirements of this Circular. Agencies should request such assistance from OMB. 12.6. Responsibilities for disclosure with respect to the budget. OMB Circular No. A-11 provides guidance to agencies on responsibilities for disclosure of budget information. The guidance provided by Circular No. A-11 applies to the budget execution process as well. Agencies are reminded that Circular No. A-11: --governs responsibilities with respect to supplemental appropriation requests; and --includes requirements concerning clearance of reprogramming requests.