Presentation on theme: "Federal Budgeting 101 Susan Shuback Executive Director for Budget U.S. Customs and Border Protection."— Presentation transcript:
1 Federal Budgeting101Susan Shuback Executive Director for Budget U.S. Customs and Border Protection
2 Budget 101 ObjectivesTo understand and be able to articulate the various phases of the planning, programming and budgeting processesTo understand key decision points in the budget process and the deliverables for these pointsTo understand the roles and responsibilities of Congress, the Office of Management and Budget (OMB), Department/Agencies
3 The Budget Cycle Planning, Programming, Budgeting & Execution (PPBE) The PPBE is a cyclical processconsisting of four distinct but interrelated phases:PlanningEstablish strategic priorities and capabilities required to achieve the strategyProgrammingApply the resources to programs that provide the capabilities required to achieve strategic prioritiesBudgetingProperly price the programs, develop justifications, and an execution planExecutionPerform and monitor the spending of approved plans
4 Budget Formulation Process Multiple cycles of Planning, Programming,Budgeting, and Execution (PPBE) are underway at any one timeJan Feb Mar Apr May Jun Jul Aug Sep Oct NovFY 2014-2018FY 2013-2017FY 2012FY 2011Annual Financial ReportAgency/Department Planning PhaseDecreasing Flexibility to Adjust/ChangeInternal Agency Program or Outyear Budget ProcessDHS: Resource Allocation Plans (RAP)Budget to OMBOMB PassbackBudget, APR, FYHSP to CongressHearings, TestimonyHAC/SAC Conference & BillsAppropriations ActMid-year ReviewsReprogramming Requests to CongressDec
5 Agency Planning Process DHS: HSTA and Integrated The Outyears PlanningAgency Planning ProcessDHS: HSTA and IntegratedPlanningGuidanceMay-June October-November
6 Planning in DHS The Homeland Security Threat Assessment (HSTA), May-June Integrated Planning Guidance (IPG), October-NovemberHSTA A strategic assessment of the major threats for which DHS must prepare and respond to in the next five years.IPG Provides a framework to manage DHS resources effectively; consistent with the National Strategy and DHS’ strategic plan. It provides a projected operating environment for the next five years.
7 The Budget Year +1 Programming ResourceAllocationPlans (RAPs)Budget toOMBOMBPassbackInternal Agency Program or Outyear Budget ProcessFebruary-March April-May May-July July-August September October-December
8 Internal Agency Program or Outyear Budget Process and DHS’s Resource Allocation Plan (RAP) Process February-August, BY +1The DHS RAP is the component-specific budget requests that span a five-year time period ( )In late winter/early Spring DHS Issues RAP guidance- includes fiscal levels for each component, and process guidanceFor example: no new programs in FY 2013 or office must fund all new programs within their base budgetsDHS Components make recommendations for maintaining and/or adjusting the budget to reflects costs and priorities of the component.DHS and Component leadership deliberate and make decisionsMay include adjustments with and between componentsDecisions are reflected in the OMB Budget Submission
9 Budget to OMB September, Budget Year +1 (FY 2013) Submitted to OMB, generally by the first Monday after Labor DayRepresents Department/Agency’s recommendations for funding to the AdministrationIncludes most of the same materials that will eventually go to CongressDraft or “Dress Rehearsal” of the Congressional JustificationIncludes changes in costs, recommendation for starting new or terminating old programsIncludes changes in performance measures
10 OMB Passback November-December, BY +1 (2013) Includes recommendations to the President and senior advisors on each agencies proposed budget policiesEnsure budgets are aligned with the administration’s priorities, program performance goals and budget constraintsDevelop economic and budget assumptions for each area which will ultimately drive programmatic and budget decisionsOMB passes back the President’s budget decisions to agenciesAgencies/departments can appeal budgetary decisions if there are disagreementsIf OMB and agency cannot reach agreement, the issue may be taken directly to the Vice-PresidentPrepare impact statements/appeals for OMB cuts or disapprovals for programmatic changesThese are prepared both by the Budget Office and Program Offices
11 The Budget Year Budgeting HAC/SACConferenceand BillsAppropriationsActBudget to CongressCongressionalHearings,TestimoniesJanuary- February March- April May- June September-November
12 Budget to Congress January-February, BY The President’s Budget is transmitted to Congress on the first Monday in February; also known as the Congressional Justification (CJ) SubmissionProcess includes:Input into government-wide budget database (MAX) for all dollars/numbersNarrative submission to Congress including all changes to the base budgets and new initiativesCBP’s document is over 400 pages long includes over two dozen separate funding exhibits for costs such as salaries, contracts, rent, capital investments etc.Official external messaging: Development of Press Roll-Out materials, review of DHS Secretaries Budget announcements, and the Secretary’s Statement for the RecordAnnual Performance Review– high level document which highlights agencies and organizations accomplishments against strategic goals
13 Hearings, Testimony & Conference March-June, BY Congress sends up a nonbinding budget resolution for the PresidentThis establishes guidance on the level of budget authority, outlays, surplus or deficit, revenue, and debtMay request the Secretary and the heads of agencies to testify before committees on the Budget Request. Requests are mostly made by the appropriation committees.The House and Senate resolve any differences in their respective bills in a special conference committee made up of members from both legislative bodies. Once compromise has been reached, Congress adopts the budget resolution concurrently.Departments and Agencies also write briefing papers; coordinate responses to advance questions; answer Questions for the Record (QFRs); prepare transcript inserts, and help identify and assign reporting requirements
14 Appropriations Act September-October, BY An Appropriations Bill provides the legal authority needed to spend or obligate U.S. Treasury funds. The appropriation bill must be enacted prior to the start of a new fiscal year (October 1). Failure to meet this deadline causes the need for temporary short-term funding (Continuing Resolution), or results in a federal government shut-down.House and Senate appropriation committees meet independently to consider 12 appropriations billsBoth houses “Conference” to resolve outstanding differencesIf the President signs the legislation, it becomes lawThe appropriation acts establish the three main components of the appropriation: time, purpose, and amount
15 The Current Year Execution ReprogrammingRequeststo CongressAnnualFinancial ReportsMid-year ReviewsMarch-April May-June October-December
16 Mid-year Review March-April, Current FY Mid-Year reviews occur is most federal agencies and are used to provide agency/department leadership with a snapshot of financial resources at the halfway point of the fiscal yearProvide an analysis of budget and spending activities against financial plans, staff plans and projection methods to ensure effective prioritizing and utilization of resources in support of CBP mission and goalsAre often used to measured against performance goalsMay include a review of unfunded requirements, new initiatives or changes in costs assumptions or priorities.
17 Reprogramming Requests to Congress May-June, Current FY Reprogramming occurs when funds within an appropriation or fund account are shifted and used for purposes other than those designated at the time of the appropriation decision. Reprograms should only be made to meet urgent and unavoidable requirements, not to procure desirable items.Various authorizing statutes provide other limitations for reprogrammings. For example in DHS no reprogramming can increase an appropriation by more than 10% or decrease an appropriation by more than 5%Agencies most notify Congress when reprogramming funds:Create or eliminate a program, project, office or activityIncrease funds of a program, project, or activity that were denied or restricted by CongressRepurpose funds that were specified by Congress to go towards a stated purposeContract out any function or activity for which funding levels were requested for Federal full-time equivalents
18 Annual Financial Report October-November, Current FY Provides annual financial information adheres to standards and guidelines in manner consistent across federal governmentIncludes component statements and performance metrics to report agency efficacy in meeting mission and objectivesProvide a hierarchy of objectives and landscape of financial resources
19 Other Terms in BudgetApportionment: is a plan, approved by OMB, to spend resources provided by one of the annual appropriations acts, a supplemental appropriations act, a continuing resolution, or a permanent law (mandatory appropriations). Resources are apportioned by Treasury Account Fund Symbol (TAFS). The apportionment identifies amounts available for obligation and expenditure. It specifies and limits the obligations that may be incurred and expenditures made (or makes other limitations, as appropriate) for specified time periods, programs, activities, projects, objects, or any combination thereof.Obligation means a binding agreement that will result in outlays, immediately or in the future. Budgetary resources must be available before obligations can be incurred legally.Commitment: An administrative reservation of funds for obligation. For example when an organization goes out with a request for proposal on a contract, the funds are often “committed” or set aside.Outlay or Expenditure: means a payment to liquidate an obligation (other than the repayment of debt principal). Outlays generally are equal to cash disbursements but also are recorded for cash-equivalent transactions, such as Federal employee salaries and debt instruments. Outlays are the measure of Government spending.
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