Transfers Between Appropriation and Fund Accounts 81.1. General principles and application of instructions. The term "transfer" is used to designate the shifting of funds from one appropriation or fund account to another account. See Exhibit 21. For the purpose of budget execution, transfers must be distinguished from the term "reprogramming". Reprogramming is the shifting of funds within the same appropriation or fund account. The instructions in this section apply only to transfers. Transfers are made to carry out the purposes of either the transferring account or the receiving account. Transfers in return for goods and services benefit the transferring account; transfers in the nature of adjustments of amounts appropriated benefit the receiving account. Amounts transferred are available for obligation only for the same period as the original appropriation, unless the language authorizing the transfer expressly provides for a change. 81.2. Transfers for the purposes of the transferring account. These transactions primarily reflect transfers in return for goods and services received by the transferring account. Transfers to carry out the purposes of the transferring account will be made by either (a) recording an obligation and outlay in the transferring account and crediting the receiving account (expenditure transfer) or (b) establishing an allocation account (nonexpenditure transfer). Each method is described as follows: (a) Expenditure transfers.--This may apply to the following items: --Orders for goods, services, or equipment placed with other agencies, where the payment is made after delivery takes place or where advance payment is made for services to be provided by the performing agency. --Payments between accounts to carry out the purposes of the transferring account, even though there are no specific orders involved; for example, where the law specifies that a particular amount will be paid from one appropriation or fund account to another in order to carry out the general purposes of the first appropriation or fund account. --Payments between fund groups (for example, a payment from a general or special fund in the Federal fund group to a trust fund and vice versa). In these cases, the transactions will be treated in the transferring account in the same manner as transactions with the public, i.e., an obligation will be reported in the transferring account when an order is placed. Then, when an appropriation or fund account accepts an order from another account, it will record the amount as an unfilled customer's order until the amount is earned, at which time it is recorded as an earned reimbursement. An outlay will be reported by the transferring account when payment is made. The change in unfilled customers' orders from the beginning of the fiscal year is recorded on line 3B of the S.F. 132 and S.F. 133. (b) Allocation accounts. (1) Description and establishment.--The authority to obligate and spend funds made available to one agency may be delegated to another agency in law. Such funds shall be placed in a subsidiary allocation account (also known as a transfer appropriation account) within the original account. Allocation accounts carry the same symbol and title as the parent account with a 2-digit prefix for the organizational code of the receiving agency. (2) Availability.--Amounts in allocation accounts are available for obligation only for the same period as the parent account from which the amounts have been transferred. (3) Apportionments and reapportionments of allocation accounts.--The agency responsible for administering the parent appropriation will submit a consolidated S.F. 132 covering both the parent account and all allocations therefrom. (Usually, receiving agencies will not prepare an S.F. 132 for transfer appropriation accounts unless required by OMB.) The approved apportionments for the parent account will be on a consolidated basis. So that the obligations incurred for the program as a whole can be kept within the approved apportionments, the agency administering the parent account will indicate to the receiving agency what portion of the consolidated apportionment is transferred. This applies to the amount transferred to the allocation account. In addition, the agency administering the parent account may suballot the amount, by time periods (akin to category A apportionments) or by activities or projects (akin to category B apportionments) to the receiving agency. Receiving agencies will be responsible for keeping obligations within the portion of the apportionment so specified, e.g., the amount transferred to the allocation account or the suballotment, as appropriate. (4) Reports on budget execution of allocation accounts.--Receiving agencies will submit to the parent agency the information required for reports on budget execution not later than 15 calendar days following the close of the reporting period. The information will be submitted in the form and manner required by the parent agency. Unless specifically requested by OMB, no separate submission to OMB is needed for the allocation accounts. The agency administering the parent account will submit to OMB a consolidated S.F. 133 (plus any required subsidiary reports) covering both the parent account and the related transfer appropriation accounts. In the case where the receiving agency is requested to also report on transfers directly to OMB on the S.F. 133, the amount transferred into the allocation account will be reported on line 1D or 2B, as appropriate, and the apportionments will be the portion of the consolidated apportionment designated by the administering agency. The S.F. 133 of the parent account will report the amount transferred out on line 1D or 2B. The apportionments shown will also include those amounts reported to the parent account by the receiving agency on its S.F. 133. This amount should agree with the portion of the apportionment designated by the administering agency. In cases where an agency receives transfers from a single parent account through more than one channel (e.g., a direct allocation from the parent account and a suballocation from another agency), the receiving agency should keep such internal records as will enable it to report separately the transactions relating to each of the channels through which the transfers were received. In reconciling amounts on the S.F. 133 with amounts shown in the Budget Appendix or with amounts shown in Treasury reports, the following differences must be recognized: --The schedules in the Budget Appendix present consolidated information normally covering all Treasury accounts (annual, multiple-year, and no-year accounts) with the same account title, while each account is normally presented on a separate S.F. 133. OMB Circular No. A-11 requires that annual data for allocation accounts be reported by the parent account for budget formulation purposes. Under most circumstances, the sum of the data on all the S.F. 133s with the same account title will be the same as the data in the Budget Appendix because in this Circular, the general rule is that the agency responsible for administering the parent account will submit S.F. 132s and monthly S.F. 133s covering both the parent account and all allocations from it, unless specifically requested to do otherwise by OMB. --Treasury, on the other hand, requires agencies receiving allocations to submit quarterly allocation data (e.g., obligations data for the S.F. 225) directly to Treasury--not through the parent agency. 81.3. Transfers for the purposes of the receiving account. Transfers without benefit to the transferring account, decrease the funds available for obligations or expenditure under one account symbol and increase the amount available under the other. They are generally treated as nonexpenditure transactions. (The exceptions are transfers for the purposes of the receiving accounts where the accounts are in two different main fund groups, see section 81.2.) The transactions included in this category are: --Reorganization transfers.--These are transfers resulting from reorganizations in which activities and the related funds are transferred to different departments, agencies, bureaus, or accounts. --Changes in appropriation pattern.--These are transfers that result from consolidations or mergers of appropriations and funds. --Redistribution of appropriations or balances.--These include the administrative exercise of general statutory authority, for example, authority provided to the head of an agency to transfer funds for a specific purpose such as fighting forest fires, to finance additional funding requirements such as pay, or within a fixed percentage or sum specified by law. In these cases, the amounts so withdrawn and credited will be reflected on the S.F. 132 and S.F. 133 on line 1D, if the transfer is made in the same year as the funds are made available. If the transfer involves unobligated balances, then the amounts will be reflected on line 2B of the S.F. 132 or S.F. 133. See Parts IV and V for further instructions on reporting such amounts on the S.F. 132 and S.F. 133. In addition, a similar adjustment of budgetary resources occurs when a financing transaction takes place in which a feeder account provides capital for a public enterprise fund. Since for purposes of the reports required under this Circular the feeder and receiving accounts are combined, the adjustments are not reported on the S.F. 132 and S.F. 133. 81.4. Temporary charges and credits between accounts. 31 U.S.C. 1534 authorizes, under certain circumstances, temporary transfers (i.e., charges to be made against an appropriation temporarily) with an accounting adjustment to the appropriation finally to be charged with the outlay. All charges during the fiscal year must be adjusted as of the close of the fiscal year. The adjustment will be accounted for in the same manner as a refund by the appropriation originally charged. Obligations incurred by the appropriation finally to be charged with the outlay must be identical with credits in the account originally charged. Investments in U.S. Government Securities 82.1. General policy. The term "U.S. securities" includes public debt securities and securities issued by Government agencies. The term excludes securities issued by Government-sponsored enterprises and non-Government entities. For budget execution purposes, the principal is treated as an exchange of assets; while the interest, discounts, and premiums determine the yield on the principal and, as such, are treated as revenue or adjustments to revenue. There are some differences in concepts for the purposes of financial reporting and budget reporting for investments in U.S. securities. The budget is on a cash and obligations basis, i.e., it provides information on how much has been invested and how much has or can be obligated. Financial accounting is on an accrual basis, i.e., it provides information on cost over time. The differences can be summarized as follows: in budgetary accounting, a purchase discount is unrealized until the security is redeemed or sold. Until such time, the discount is recorded as an adjustment to balances. When the security is redeemed or sold, the discount will be realized and reported as revenue (reimbursements and other income). In financial accounting the purchase discount is amortized and recorded as revenue over time. In budgetary accounting, a purchase premium is recorded as a negative adjustment to revenue. In financial accounting the premium is amortized and recorded as an expense overtime. For certain funds designated by OMB, premiums and discounts are amortized for budget purposes. The budget concepts are explained in more detail below. 82.2. Treatment of principal. When funds are invested in a U.S. security, the principal transaction is treated as an exchange of assets, as follows: --No obligation or outlay is recorded. --The levels of unobligated and obligated balances of budgetary resources do not change as a result of the principal transaction. --Cash balances are reduced by the purchase price and holdings of U.S. securities are increased by the par (face or nominal) value of the security acquired. --Amounts invested are reported, without distinction, as part of the balances reported on apportionment and reporting forms. When a U.S. security is sold or redeemed, the principal transaction is treated as follows: --No obligation or outlay is recorded. --The levels of unobligated and obligated balances of budgetary resources do not change. --Holdings of U.S. securities are decreased by the par (face or nominal) value of the security acquired and cash balances shall be increased by the par value of the security. 82.3. Treatment of discounts, premiums, and interest. Discounts, premiums, and interest determine the yield on the principal invested in U.S. securities. In general, these transactions are recorded as revenue or adjustments to revenue. Interest, earned discounts, and premiums are recorded as increases and decreases, as appropriate, in the receipts of special and trust funds. These adjustments to receipts, in turn, affect the amount of receipts available for appropriation for those funds where the receipts are subject to annual appropriation, or the amount of budget authority becoming available in the year for those funds where the receipts are permanently appropriated. Only the budget authority is reported on the S.F. 133. Interest, earned discounts, and premiums are not directly recorded on the S.F. 133. (OMB Circular A-11 describes the recording of receipts for these transactions.) For revolving funds, these transactions are recorded as increases or decreases in earned reimbursements on the S.F. 133. (The instructions for revolving funds apply to trust revolving funds.) The specific method of recording each type of tranaction is described below. Interest, earned discounts, and premiums will be combined and recorded on a net basis as interest on investments. Purchase discounts, which are not realized until a security matures or is sold, require the special treatment described below. (a) Purchase discount.--When a security is purchased for an amount less than the par value the difference is recorded as a negative adjustment to par value. For revolving funds, when a security is purchased for an amount less than the par value, the amount of the unrealized discount will be entered as a minus (-) on line 10E of the S.F. 133. See Exhibit 82A. When that security is redeemed or sold, the negative adjustment to unobligated balances will be removed and the discount realized will be reported on line 3A of the S.F. 133 "Reimbursements and other income: Earned." See Exhibit 82C. For special and trust funds, when a security is purchased for an amount less than the par value, the amount of the unrealized discount will be entered as a minus (-) on line 10E of the S.F. 133. See Exhibit 82A. When that security is redeemed or sold, the negative adjustment to unobligated balances will be removed and the earned discounts will be recorded as a positive amount in the receipt account for interest in the year of the maturity or sale. This will increase the amount of receipts that may be appropriated and recorded on lines 1A or 1B of the S.F. 133. (b) Purchase premium.--When a security is purchased for an amount greater than the par value, the difference is recorded as a negative adjustment to earnings. For revolving funds, the amount greater than the par value will be recorded as a negative amount on line 3A of the S.F. 133 "Reimbursements or other income: Earned." See Exhibit 82E. For special and trust funds a purchase premium is recorded as a negative amount in the fund's interest receipt account at the time of purchase. This will decrease the amount of receipts that may be appropriated and recorded on lines 1A or 1B of the S.F. 133. (c) Sales discount.--When a security is sold for an amount less than the par value, the difference is recorded as a positive amount if it is a gain and a negative amount if it is a loss. For revolving funds, a sales discount is recorded as a positive amount if the difference between the sales price and the purchase price is a gain and negative amount if it is a loss on line 3A of the S.F. 133, "Reimbursements and other income: Earned." See Exhibit 82F. For special and trust funds, a sales discount is recorded as a positive amount if the difference between the sales price and the purchase price is a gain and negative amount if it is a loss in the fund's interest receipt account at the time of sale. This affects the amount of receipts that may be appropriated and recorded on lines 1A or 1B of the S.F. 133. (d) Sales premium.--When a security is sold for an amount greater than the par value, the difference is recorded as a positive amount if it is a gain and a negative amount if it is a loss. For revolving funds, a sales premium is recorded as a positive amount if the difference between the sales price and the purchase price is a gain and negative amount if it is a loss on line 3A of the S.F. 133, "Reimbursements and other income: Earned." For special and trust funds, a sales premium is recorded as a positive amount if the difference between the sales price and the purchase price is a gain and negative amount if it is a loss in the fund's interest receipt account at the time of sale. This affects the amount of receipts that may be appropriated and recorded on lines 1A or 1B of the S.F. 133. (e) Interest.--The nominal or stated amount of interest received or anticipated during the year will be recorded as a positive amount. For revolving funds, the interest will be recorded as a positive adjustment and the net effect will be reported on the S.F. 133 on line 3A "Reimbursements or other income: Earned." For special and trust funds, the interest will be recorded as a positive amount in the receipt subaccount for "Interest and earnings on investments" of the fund. This increases the amount that may be appropriated and reported. When they are appropriated, these amounts will be reported on the S.F. 133 on line 1A "Appropriations realized" or line 1B "Appropriations anticipated," as appropriate. (f) Accrued interest purchase.--When the former owner is paid for the amount of interest that has accrued to the owner but will be received by the fund, the amount will be recorded as a negative adjustment to earnings. For revolving funds, the interest paid will be recorded as a negative adjustment and the net effect will be reported on the S.F. 133 on line 3A, "Reimbursements or other income: Earned." For special and trust funds, the interest paid will be recorded as a negative amount in the receipt subaccount for "Interest and earnings on investments" of the fund. Foreign Currency 83.1. Apportionments and reports. Special foreign currency program appropriation accounts and foreign currency (FT) fund accounts are two different types of accounts with different reporting requirements, as described below. Special foreign currency program appropriation accounts contain appropriations that are available to incur obligations for which payments can be made only in U.S.-owned foreign currencies that are declared in excess of the normal requirements of the United States by the Secretary of the Treasury. Appropriated dollars are used to obtain the U.S.-owned excess foreign currency that is used to make the necessary payments. Foreign currency (FT) fund accounts are accounting mechanisms established by the Treasury to account for foreign currency that is acquired without payment of U.S. dollars. Use of these amounts requires appropriations or payment with appropriated dollars unless otherwise authorized by law. Special foreign currency program appropriations will be apportioned, and reports on budget execution will be prepared, in accordance with Parts IV and V, respectively, of this Circular. Foreign currency (FT) fund accounts are covered in this section. Foreign currency (FT) fund accounts are established with a two-digit agency prefix assigned by Treasury, the symbol "FT," and a three-digit foreign currency account code. Foreign currency (FT) fund accounts are hereby exempt from apportionment by the Director of OMB, unless the agency is notified by OMB that particular accounts will be apportioned. When apportioned, the apportionment of foreign currencies that are available for the same purpose as appropriations made to the President will be made to a single coordinating agency in the same manner as the related dollar appropriation. When apportioned, a separate apportionment will be made for each currency in terms of foreign currency units. An S.F. 133 report may be required by OMB. The reports will be made in terms of foreign currency units for each currency in each FT account. On both the S.F. 132 and S.F. 133, "Authority to spend foreign currency receipts" will be typed in the stub column for line 1 and the latest Treasury reporting exchange rates shall be entered on each S.F. 132 and S.F. 133. Amounts transferred from Treasury and credited to the agency foreign currency accounts will be reported on line 1A. Amounts anticipated to be transferred during the year will be reported on line 1B. Balances brought forward (on line 2A) will be limited to balances in agency FT accounts. Foreign currency units reported will be in agreement with the "Foreign Currency Statement and Account Current" (Foreign Service Form 488) prepared by disbursing officers. "Immediately Available" Appropriations 84.1. Apportionments and reports for immediately available appropriations. When all or part of an appropriation for a given fiscal year is made immediately available in the preceding year, an appropriation warrant is issued at once for the immediately available portion. However, at the end of that preceding year, the appropriation is adjusted to equal the amount of obligations incurred, and a new warrant is issued for the balance of the original appropriation to be available in the succeeding year. In such cases, it is usually necessary to submit apportionment forms for the succeeding year before the amount of the appropriation can be determined. The following apportionment and reporting procedures will apply: --The entire amount that is made immediately available will be entered on line 1A of the apportionment or reapportionment request (S.F. 132) for the year in which it becomes available. The portion that is estimated to be unobligated at the end of the year will be shown as deferred (line 10). --The initial apportionment request for the subsequent year (the year for which the appropriation was originally intended) will show, on line 1B, the portion of the "immediately available" amount that is estimated to the unobligated at the beginning of that year. --On the final S.F. 133 for the year in which the "immediately available" amount was provided, the adjusted amount of the appropriation (equal to actual obligations incurred) will be reported on line 1A, and an offsetting adjustment will be made in the amount deferred by OMB (line 10C). If the adjustment exceeds the amount deferred, the deferral will be reduced to zero and the remaining portion of the adjustment reported as a negative amount on line 10E. --When the appropriation adjustment is made by the Treasury Department, the amount warranted in the new year will be reported on line 1A of the S.F. 133. A request for reapportionment will be submitted if the amount warranted differs from the amount estimated by more than $200,000 or 1% of total budgetary resources, whichever is lower. Transactions and Balances of Revolving Funds 85.1. Obligations of revolving funds. Those revolving funds subject to apportionment will be apportioned on an obligation basis on the S.F. 132. Revolving fund reports, whether for funds subject to apportionment or those exempt from apportionment, will be on an obligation basis on the S.F. 133. Adjustments in obligations of prior years will be reported in the same general manner as for appropriation accounts, that is, cancellations and downward adjustments will be set forth as an element of budgetary resources. 85.2. Writeoffs of receivables. For the purpose of this Circular, writeoffs of current receivables that were previously included on the S.F. 133 will be treated as a reduction of revenues. No entry will be made on the S.F. 133 for writeoffs of receivables that are due in future fiscal years. Such receivables may be recorded as long-term assets on an agency's balance sheet (usually in an investment account) but not current budgetary resources available for obligations on the S.F. 133. Therefore, when long-term receivables are written off, the investment or equivalent account is reduced. There should be no entry on the S.F. 133 at the time the writeoff occurs because there is no need to deduct from budgetary resources an amount that was not recorded as a budgetary resource. 85.3. Meaning of unapportioned balances. For those revolving funds that are subject to apportionment, it is likely that the amount apportioned may be less than the total budgetary resources available. The difference, which cannot be used until it is apportioned, may be characterized as either an unapportioned balance of a revolving fund or a restrictive withholding. The concept of unapportioned balances is one of preserving a portion of the fund's capital so it may continue to revolve. Such balances will be reported on lines 11 and 10D of the S.F. 132 and S.F. 133, respectively. Unapportioned balances will not include amounts that are withheld during a period of time in which they could effectively, efficiently, and legally be obligated. Amounts of unapportioned balances do not have to be reported as deferrals or proposed rescissions. On the other hand, restrictive withholdings will be reported on the S.F. 132 and S.F. 133 as "deferred" or "withheld pending rescission." See Part VII for reporting requirements. 85.4. Antideficiency Act violations in revolving funds. The incurring of obligations in excess of apportioned budgetary resources is a violation of the Antideficiency Act, whether or not a fund has unapportioned budgetary resources or non-budgetary assets greater than the amount of the deficiency. A description of assets that are considered budgetary resources available for obligation is contained in section 31.4 of this Circular. Funds Appropriated to the President 86.1. Original distribution of budget authority. Appropriations or other budget authority made to the President may be distributed to agencies that have responsibilities for the purposes to be served by such appropriations or authority. Such agencies will present requests for funds, supported by a justification, to the designated coordinating agency. The coordinating agency will notify the requesting agency of amounts to be transferred. When action by the President is necessary to make an allocation, the coordinating agency will prepare the necessary documents for the President's signature. A copy of the allocation request, as approved by the President, will be provided to OMB. For appropriations, the coordinating agency will prepare Standard Form 1151 and process it through the Treasury Department to effect the transfer. For authority to borrow, the receiving agency will arrange with the Treasury Department for the drawdown of money as needed. 86.2. Interagency allocations. All movements of obligational authority from appropriations made to the President, and all subsequent interagency distributions of such authority, will be made by the use of transfer appropriation (allocation) accounts, so that amounts can be readily identified with the parent appropriation. Agencies that receive allocations from appropriations made to the President may make suballocations to other agencies. Where an agency receives allocations from a single parent account through more than one channel (for instance, a direct allocation from the parent account and a suballocation from another agency), the receiving agency must maintain records from which will enable it to control and report separately the transactions relating to each allocation or suballocation. 86.3. Apportionments and reports. Apportionments will be made by OMB to the coordinating agency (or to any agency delegated to receive such apportionments by the coordinating agency). Allocations and suballocations by the coordinating agency will require that obligations be kept within such quarterly limits (shares of apportionments) to enable the apportionments to be observed for the appropriation or fund as a whole. The coordinating agency will obtain and prepare consolidated information whenever it is required, including material required by OMB Circular No. A-11 and by the Treasury Department. 86.4. Appropriations coordinated by OMB. Agencies receiving allocations from accounts coordinated by OMB will submit the following materials, as appropriate. --A Report on Budget Execution (S.F. 133), in accordance with the instructions contained in Part V, to be submitted quarterly unless otherwise specified. --Year-end Closing Statement (Treasury FMS Form 2108), in accordance with Treasury instructions. --A Report on Obligations (Standard Form 225) as required by Treasury. Monitoring Federal Employment 88.1. FTE policy. The Federal Workforce Restructuring Act of 1994 (P.L. 103-226) established annual limitations on Executive Branch full-time equivalent (FTE) employment for fiscal years 1994 through 1999. Section 5(c) of the Act requires that OMB make a quarterly determination of whether the Executive Branch is in compliance with the mandated FTE limitations. If it is determined that the Executive Branch is exceeding the limitation, a government-wide hiring freeze will be imposed. Approved FTE levels established by OMB in the budget formulation process will be consistent with the Act. Each agency head will ensure strict observance of total OMB-approved FTE levels for his or her agency. 88.2. Reporting requirement. To provide OMB with a basis to make an accurate projection of year-end Executive Branch FTE usage, information on agency-specific planned FTE usage is necessary. Each agency head will annually submit a current year FTE usage plan for the agency consistent with the President's budget, by December 1, or as directed by OMB. Separate reports will be submitted for agency components, when requested by OMB. If an agency does not wish to submit a plan, it will be assumed that its FTE usage is even throughout the fiscal year. Each plan will include: o actual cumulative FTE usage from straight-time hours by month, as reported to the Office of Personnel Management (OPM) on the SF 113G report through the most recent actual period, o planned cumulative FTE usage levels by month for remaining periods, and o an explanation, if applicable, of why agency plans are not consistent with approved FTE levels. Additional detail will be reported when appropriate or when requested by OMB. Unless otherwise determined by OMB, the dates on the report will correspond to the SF 113G reporting periods published by OPM. Plans will be revised if: --approved FTE levels are revised or plans change significantly; --subsequent actual data for the agency exceeds the most recent plan; or --requested by OMB. 88.3. Format of the plan. The table below displays the format for a plan for FY 1995. Agencies should specify reporting period dates that correspond to their own pay periods. DEPARTMENT OF GOVERNMENT FTE USAGE PLAN (FY 1995) (Cumulative FTEs to Date) ---------------------------------------------------------------------- Reporting Period\1\ ------------------------------ Latest Revised Non-DOD DOD Plan Actual\2\ Plan\3\ ---------------------------------------------------------------------- October...... (10/2-10/29) (9/25-10/22) November..... (10/30-11/26) (10/23-11/19) December..... (11/27-12/24) (11/20-12/17) January...... (12/25-1/21) (12/18-1/14) February..... (1/22-2/18) (1/15-2/11) March........ (2/19-3/18) (2/12-3/11) April........ (3/19-4/29 (3/12-4/22) May.......... (4/30-5/27) (4/23-5/20) June......... (5/28-6/24) (5/21-6/17) July......... (6/25-7/22) (6/18-7/23) August....... (7/23-8/19) (7/24-8/12) September.... (8/20-9/30) (8/13-9/23) ---------------------------------------------------------------------- Note: Beginning in FY 1995, reports are due December 1, or as directed by OMB. \1\Each agency should specify dates that correspond to its own pay periods. Agencies serviced by the Department of Defense's payroll system have different pay periods. \2\Actual FTE data corresponds with the SF 113G report, as reported to OPM. \3\If applicable. ----------------------------------------------------------------------