4 FAH-3 H-120
BUDGET EXECUTION
(CT:FMP-104; 08-12-2019)
(Office of Origin: BP/RPBI)
4 FAH-3 H-121 APPROPRIATION CONTROL
4 FAH-3 H-121.1 Control
Responsibility
(CT:FMP-104; 08-12-2019)
a. The Department controls its appropriated funds in
both a centralized and decentralized environment. The Bureau of Budget and
Planning (BP) is the central coordinator for budget submissions to the Office
of Management and Budget (OMB) and Congress for appropriations made for the Department of State. The Office of U.S. Foreign
Assistance Resources (F) coordinates submissions for foreign operations
appropriations. In addition, BP is responsible for the overall funds control
of each appropriation/allotment combination. The Department generally
decentralizes its budgetary control at the allotment and suballotment levels
both domestically and abroad. However, certain requirements of the Diplomatic
Programs appropriation are centrally managed (for example, American Salaries by
BP, Post Assignment Travel by HR/EX).
b. Budget execution is characterized by obtaining funds
through the warrant and apportionment processes respectively with the U.S.
Treasury and OMB, determining internal spending levels through the financial
operating plan, and exercising funds control.
4 FAH-3 H-121.2 Treasury Warrants
(CT:FMP-77; 08-20-2013)
Once the Congress has passed an appropriations bill and
the President has signed it, the Department of the Treasury provides an agency
with an Appropriation Warrant, Form FMS-6200. Warrants make available for
spending specific amounts appropriated by the Congress for each individual
appropriation.
4 FAH-3 H-121.3 Apportionment
Process
(CT:FMP-77; 08-20-2013)
Funding Department programs and activities also requires
that the Office of Management and Budget (OMB) approve apportionment spending
plans.
(1) An apportionment is intended to achieve an
effective and orderly use of available budget resources. It is the process by
which OMB distributes amounts available for obligation by time period or
purpose, including budgetary reserves established pursuant to law, in an
appropriation or fund account.
(2) To summarize the apportionment spending plan and
account for the issued funds, agencies submit (1) Form SF-132, Apportionment
and Reapportionment Schedule, and (2) Form SF-133, Report on Budget Execution
and Budgetary Resources.
(3) The OMB apportionment distributes appropriated
amounts into more specific availability; usually for the four quarters of the
current fiscal year as a Category A apportionment. OMB alternatively may use
a Category B apportionment, defining availability in terms other than a time
continuum by using such definitions as activities, programs, or projects. OMB
uses a Category AB″ to apportion funds by program and time period
(typically by quarter). OMB uses a Category C apportionment for fund
availability in future periods. OMB may also combine Category A, Category B,
and Category C concepts in an apportionment. Whatever course OMB takes, the
Department is required by law to tailor its obligation profile to the terms of
the apportionment.
(4) Instructions and illustrations for completing
Forms SF-132 and SF-133 are contained in OMB Circular A-11, Preparation,
Submission and Execution of the Budget.
4 FAH-3 H-122 ALLOTMENT OF FUNDS
4 FAH-3 H-122.1 Purpose
(CT:FMP-77; 08-20-2013)
a. The Department (BP) issues allotments to control the
amounts that may be obligated and expended under an appropriation or
limitation. Thus, no appropriation shall be obligated, nor shall any
expenditure be made unless an allotment has been made for that purpose, or
other specific authorization has been granted. Allotments are also made for
the purpose of managing obligations and thus preventing deficiencies (over
expenditure) in appropriations and appropriation limitations. The generic term
allotment actually refers to funding authorization documents at three
different levels of aggregation explained in the next section.
b. When approved and established, allotments have the
effect and force of appropriation limitations and may not be exceeded or
changed without prior approval of the Department (BP). A violation at the
allotment level constitutes a violation of the Anti-Deficiency Act. See 4 FAM 080 for
additional information.
4 FAH-3 H-122.2 Allotment
Authority, Advice of Allotment and Operating Allowance
(CT:FMP-77; 08-20-2013)
Once apportionment authority is received by the
Department, it is made available through Allotments issued by BP to the
respective bureaus. Allotment Authorities are issued at the highest aggregate
funding level to major bureaus (e.g., geographic regional bureaus, Bureau of
Administration) anticipating the resources will be divided further among posts
or multiple activities or programs. The subdivision of funds is accomplished
by a bureau issuing advices of allotment to posts or activities/programs. BP itself
also issues Advices of Allotment to smaller domestic bureaus that do not have
an obvious need to subdivide the resources. Nevertheless, Advices of Allotment
may in turn be further subdivided into Operating Allowances issued to
constituent posts/programs. Both Allotment Authorities and Advices of
Allotment conform to apportioned distributions and provide bureaus funds to
conduct activities and make obligations not to exceed the values stated.
Allotted amounts represent decisions made by the Under Secretary for Management
or other designated senior Department officials in approving financial
operating plans.
4 FAH-3 H-122.2-1 Limitations
Below the Allotments
(CT:FMP-29; 02-17-2005)
a. Allottees are authorized to establish limitations
below the allotment level. These limitations may be in the form of an
operating allowance, function, object class or budget resource/project. For
example, a bureau may issue an allotment with limitations at the function code
level to either an office within the bureau or to a post; or a post allotment
holder may issue operating allowances to a constituent post that it services.
Such limitations must be fixed in amount and changed only by the authorizing
allottee.
b. If an operating allowance or other administrative
subdivision of funds is exceeded, the responsible individual is subject to
administrative discipline. However, if exceeding an allowance also causes the
allotment to be exceeded, the responsible individual (i.e., the allottee not
the suballottee) is also subject to sanctions under the Anti-Deficiency Act.
4 FAH-3 H-122.2-2 Spending Floors
and Spending Ceilings
(CT:FMP-29; 02-17-2005)
a. Chiefs of missions or principal officers at posts
are responsible for control of funds and assurance that the amounts provided to
post in an allotment and any limitation below the allotment level are not exceeded
and are properly used. Domestic fund control responsibility is vested in the
respective assistant secretary of bureaus receiving funds.
b. Two other tools used to manage funds are spending
floors and spending ceilings. A spending floor indicates that a minimum amount
of funding must be spent on a designated activity or program, while a spending
ceiling stipulates that a specified activity or program can obligate no more
funding than a maximum dollar amount. Spending floors and ceilings are usually
derived from amounts appropriated for individual line items (often called
earmarks) in the appropriations act. However, there are other, less evident
sources for floors and ceilings. A partial list of other sources include:
(1) Language in an authorization or appropriation act;
(2) Appropriation-specific or general provision in a
report accompanying the appropriation that the Department decides to implement
as a matter of policy;
(3) Statement of intent related to activity or program
published in the Congressional Record that the Department decides to implement
as a matter of policy;
(4) Office of Management and Budget (OMB) policy
statement or apportionment mark; and
(5) Financial plan decision by the Under Secretary for
Management or other designated senior Department official.
c. Once and wherever established, sound fund control
practice must be instituted so that floor and/or ceiling amounts and their
respective purposes are specified in writing on fund control documents at every
subsequent level (viz., apportionment, allotment authority, advice of
allotment, or operating allowance). However, spending floors and ceilings can
be adjusted by seeking funds reprogramming from the appropriate Congressional
committees, or submitting a Congressional Notification for specially-designated
foreign operations accounts. Where appropriate, relief can be sought via OMB
reapportionment or reconsideration of decisions previously made by the Under
Secretary for Management or other designated senior Department official.
4 FAH-3 H-123 USE OF FUNDS
(CT:FMP-29; 02-17-2005)
Once allotments are received, bureaus and posts may begin
the task of establishing obligations and obtaining goods and services in
accordance with approved programs and funds availability. This may be done
through placing orders, writing contracts, hiring personnel, authorizing
overtime, preparing travel orders, or requesting services from other
organizations. In executing programs and activities, funds pass through
various stages:
(1) CommitmentsAn intent to
incur a financial liability. For example, a request for contractual
procurement usually requires that sufficient funds be set aside and documented
by a funded requisition;
(2) ObligationsBinding
commitments to pay for orders placed, contracts awarded, services received, and
similar transactions requiring payments, as defined by 31 U.S.C. 1501;
(3) Unobligated BalancesThe
balances of all budgetary resources available for obligation (for example
unobligated balances of budgetary authority); and
(4) ExpendituresThe actual
payment for goods or services rendered based on a valid obligation and
certification of receipt.
4 FAH-3 H-124 FINANCIAL PLANNING
4 FAH-3 H-124.1 Departments
Financial Plan Process
(CT:FMP-104; 08-12-2019)
a. The Department of States Financial Operating Plan
is the mechanism whereby funds appropriated, transferred, or reimbursed to the
Department are programmed, allotted, and controlled to provide for the orderly
execution of programs, projects, and activities intended to achieve the
Departments foreign policy goals and objectives.
b. The financial plan process of the Department is
multi-phased involving the preparation and submission of field budget plans,
bureau financial plan requests, decisions by the Under Secretary for
Management, and periodic monitoring (including one or more formal reviews).
c. Financial plans are prepared to reflect and
implement policies, programs, and priorities contained in Bureau Performance
Plans.
d. Financial Planning for the Capital Investment Fund
and other Information Technology (IT) resources involves the work of the
Department's IT Governance Board and is the Department's IT Capital Planning and
Investment Control (CPIC) mechanism, as defined by 40 U.S.C. 11302. For details on the IT Capital Planning
process, see 5 FAM 1000.
4 FAH-3 H-124.2 Field Budget Plans
4 FAH-3 H-124.2-1 Description
(CT:FMP-77; 08-20-2013)
The purpose of field budget plans is to gather information
essential to set funding levels for diplomatic posts. The plan presents
information and programs at the object class level and projects upcoming fiscal
year costs by calculating wage and price increases and anticipated program
changes. These anticipated program changes are to be consistent with program
priorities reported in the Mission Resource Request (MRR); the quantitative
resources data in both documents should be fully consistent.
4 FAH-3 H-124.2-2 Process
(CT:FMP-77; 08-20-2013)
Regional bureaus issue field budget plan guidance to posts
for the upcoming fiscal year. Post submissions are used by the regional
bureaus in determining resource levels for the upcoming fiscal year and in
submitting requests to BP for additional funds.
4 FAH-3 H-124.3 Diplomatic Programs
Financial Plan
4 FAH-3 H-124.3-1 Budget Support
System
(CT:FMP-77; 08-20-2013)
The Budget Support System through BP provides the
Department with an automated system to generate and maintain the exhibits
required for the initial submission of the Financial Operating Plan (FINPLAN).
Bureaus can enter their resource requirements into a standard web-based system
containing the program activities identified for the Department.
4 FAH-3 H-124.3-2 Process
(CT:FMP-77; 08-20-2013)
a. The financial planning system process begins by
issuing formal guidance during the summer prior to the beginning of the fiscal
year. In developing bureau levels, BP identifies nonrecurring costs, projects
wage and price adjustments, and provides current exchange rate adjustments.
Bureaus may request increases to support specific program activities.
b. Bureau requests are submitted through the web-based
Budget Support System to BP for review. BP and HR conduct a joint review of
bureau requests and develop options for matching requests to Department
priorities and available resources. BP and HR recommend to the Under Secretary
for Management the Departments FINPLAN. Upon the Under Secretarys approval,
FINPLAN decisions are implemented through the allotment of funds to bureaus.
4 FAH-3 H-125 FINANCIAL PLAN EXECUTION
(CT:FMP-29; 02-17-2005)
Once the FINPLAN levels are determined and allotments
issued, bureaus prepare monthly obligation phasing plans so that obligation
trends can be monitored throughout the year. Senior financial managers are
briefed on the trends that are used in conjunction with other financial
materials to review and refine the FINPLAN. In addition, at least one formal
review is conducted during the year to analyze unfunded requirements in the
context of overall fund availability and obligation patterns.
4 FAH-3 H-126 THROUGH H-129 UNASSIGNED