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(2) Obligational control will be established at the highest practicable organizational and program level consistent with assignments of responsibility for the procurement of resources-level at which funds are legally obligated. This control will be implemented through the system of allotment of the funds that have been allocated to the individual designated as having this responsibility.
(3) Financial and performance target allowances will be set at the program activity and subactivity level in the execution schedules. 2–307. External controls.—The Department's responsibility for administrative control of funds lies not only in compliance with the instructions, guidelines, and legal requirements inherent in statutes and GAO and BOB regulations, but also in accurate and complete reporting and conformance with general Presidential and congressional mandates. With specific reference to the Congress, the data included in the "effect of final action" documents constitute the base on which are built the operating financial plans, apportionments, allocation, allotments, and target allowances. The following comments on this subject are quoted from House Conference Report No. 1880 on the Departments of Labor-HEW appropriaations for 1965 :
“Both the Departments of Labor and Health, Education, and Welfare have continued to abuse legal flexibility which they have been allowed by Congress in the face of continued informal warning. And at such times reprograming has at least bordered on the illegal. In view of this, the conferees have taken action in connection with amendment No. 62 which should have a salutary effect."
The amendment referred to above “prohibits the use of any funds contained in the Act for any activity in excess of the amount set forth for such activity in the schedules contained in the President's budget for 1965 except in those instances where a greater amount was specified by the Congress." The House and Senate staff interpret the word "activity” to mean the budget activity listings under each appropriation (including to those instances where the Department reflects subactivity breaks below a main activity listing) and to be applicable to the positions and dollar amounts shown. Thus the intentions of the Congress were clearly defined.
2-308. Extent of apportionment.—The Bureau of the Budget may completely or partially apportion appropriated funds. Amounts may be set aside (reserved) for contingencies, for savings, or for use in other periods than requested. These reserves can be released only through the formal process of reapportionment. Apportioned funds are usually allocated or allotted on a quarterly basis; funds not apportioned are generally allocated on a lump sum or annual basis.
2–309. Temporary and supplemental appropriations. When funds are temporarily appropriated under a continuing resolution, the apportionment is established by law and the allocation is automatically established for the amounts warranted by the Treasury Department. In addition, any amounts included for trust funds in the supporting documentation for the warrant request are automatically allocated. An allotment advice (DL form 1-183A) must be processed. For all funds coming into the Department of Labor other than those described above allocations must be requested and approved prior to issuance of allotment advices.
Supplemental appropriations enacted in the last quarter of a fiscal year are also automatically apportioned (see BOB Circular A-34, sec. 31) and allocated, but again, the allotment advice (DL form 1-183A) must be processed. In cases where funds are provided under a supplemental appropriation, that will fall into a "category B" apportionment (see BOB Circular A-34, sec. 32) the procedures outlined in section 2–315 (d) and (e) must be followed.
2–310. Administrative reserves.-Funds appropriated and apportioned by the Bureau of the Budget may be further restricted by an administrative reserve in the event that the Secretary determines that proper and effective operation of a program can be achieved by performance at a lower level than appropriated and apportioned. Such funds may be reserved at either the allocation or allotment levels.
2–311. Equality of apportionment factors.-As apportionment plans must be based on budget execution schedules, they should take into account not only expected obligational requirements, but projected employment levels and expected expenditures. In the actual process of requesting funds by time periods (quarters), there are numerous factors influencing distribution of funds.
(a) Among legitimate unbalancing factors are certain costs falling due, generally, in a specific quarter(s). These include:
(1) Advances to the working capital fund, which fall due in the first and third quarters, because of the necessity of obtaining operating capital at the beginning and middle of the year.
(2) Equipment purchases which are generally apportioned in the first half of the year since most new personnel come on duty at this time and are in need of equipment essential to the performance of their duties. Procurement of equipment in the last half of the fiscal year is generally frowned upon except where replacement of existing equipment is vital and justifiable. Equipment purchases in the last quarter must be specifically justified.
(3) Temporary employment, the bulk of which is usually apportioned in the first and fourth quarters due to summer employment. (6) Other unbalancing factors are:
(1) Number of workdays in each quarter.
(2) Accelerated or delayed recruitment which should not exceed that anticipated in the budget and reflected by the lapse rate.
(3) Seasonal workload. (c) Amounts for rent transfers are to be apportioned as entries on line 1(d) of the S.F. 132 (exhibit A). They must tie to the President's budget.
(d) In those cases where the third or fourth quarter apportionment appears unnaturally low and an apparent deficiency is not fact, the S.F. 132 should bear the note: "This does not anticipate a deficiency."
(e) Reimbursements must be apportioned if anticipated to be paid into the regular appropriation account and a statement of anticipated earnings by source included with the S.F. 132 (exhibit A).
(f) For funds that are not subject to apportionment, a separate statement showing source (e.g., Department of Commerce), parent account, amount, type of transfer (nonexpenditure transfers and advances, etc.) is required (exhibit B). These types of nonappropriated funds, when transferred from other agencies, must come directly to the Department of Labor, (OASA) from where they will be allocated to the bureaus concerned and allotted by those bureaus. Failure to follow this procedure will result in a violation of Secretary's Order No. 28-64 which implements the provisions of the Anti-Deficiency Act.
2-312. Revision of apportionments and deficiency apportionments.-Revisions of apportionments (reapportionments) may be considered whenever conditions warrant or the law permits (sec. 2–307). As an example: Pay increases authorized by the Congress may necessitate the reapportionment of the funds involved, and since the funds need reapportioning to increase the amounts available in the early quarters to cover the cost of the pay increase, a fourth quarter deficiency results. In such cases as these an analysis of deficiency apportionment (exhibit C) must be submitted along with the reapportionment schedule (exhibit D) and a statement regarding the legality of the deficiency apportionment. Whenever an apportionment anticipates the need for a supplemental or deficiency appropriation, that fact will be specifically noted on the S.F. 132. apportionment and reapportionment schedule-obligation basis (see exhibit D). In the absence of such a note, agencies must schedule their activities so that the amount apportioned will accomplish the purpose of the appropriation without additional funds.
2–313. Determination by the Secretary.-In cases where the apportionment request anticipates the need for a supplemental appropriation in accordance with the conditions set forth in subsection (e) (1) of section 3679, Revised Statutes, as amended, or in any other applicable law (such as section 210 of the General Government Matters Appropriation Act, 1958, 5 U.S.C. 1082(7)), then, in addition to the notation on the S.F. 132, three copies of the determination required by the law to be made by the agency head will be transmitted with the apportionment request. An acceptable example of this statement may be found as footnote 3 to section 32H of the Bureau of the Budget Circular A-34. The amount of the anticipated supplemental appropriation must be fully justified..
2–314. Characteristics of submissions.-(a) The figures must be justified by need and allocation. This deals with the fact that if, in the effect and final action documents, a given amount of money was justified for a certain object or activity, then any proposed reprograming of this money must be thoroughly justified (sec. 2–307).
(6) The relationship of employment to lapses must be shown realistically. Both past experience and studies of staffing and recruiting patterns are useful here. As an example: The rate of lapse should be compared with the departmental average of 3.5 percent on existing jobs and 10 percent on new positions. It should relate to the lapse figures indicated in justifications and effects of House and Senate and final action. Deviations require explanation.
(0) Reasons for uneven distribution of apportionments must be explained.
(d) The apportionment package must contain justifications based on all considerations, including quarterly distribution of funds and methods of operation. Major elements of issue must be defined, whether they be program, administrative, or financing issues.
(e) The documents must be consistent internally with previous estimates, source materials, and established laws, regulations, and policies.
2–315. Summary of procedural sequence. Following generally the format and content of the program budget management system execution schedules, the sequence of events is similar to that described below.
(a) In anticipation of congressional action and negotiation of agreements for use of funds from outside the Department of Labor, the execution schedules originally prepared in conjunction with submission of data for the budget being considered by Congress will be revised and presented on a quarterly basis. This will be normally done during the period June 1-30 and will follow the provisions and procedures set forth in Secretary's notice No. 37-65 regarding execution scheduling.
(b) The data are modified as necessary to reflect final congressional action and then placed into the appropriate parts of the formal apportionment request as follows:
(1) Activities–Exhibit F.
(4) Explanation of apportionment by object (exhibit E). (c) The apportionment requests and operating financial plans prepared by administrations, bureaus, and offices will be reviewed by the Office of the Assistant Secretary for Administration for conformance with law, regulation, and policy, and when approved or signed by the Director of the Office of Budget Administration for the Assistant Secretary for Administration, forwarded to the Bureau of the Budget for action. Requests concerning funds that are not subject to apportionment are similarly reviewed and allocations and/or allotments are made on the forms shown in exhibits H and/or I.
(d) The apportionment requests are reviewed and apportionments made by the Bureau of the Budget and returned to the Department. Upon receipt of the apportionment, request for an allocation will be prepared on DL form 1–182 by bureaus, offices and administrations and forwarded to the Office of Budget Administration for action. Upon arrival, the document will be returned to the individual designated as the allocatee and copies will be sent to all administrations, bureaus, and offices involved. Copies of both the apportionment and the fund allocation will also be sent to the Office of Financial Management, Office of the Assistant Secretary for Administration.
(e) Upon receipt of the allocation, administration, bureau, or office heads will allot the funds previously allocated with the exception of those funds already allotted by the Assistant Secretary for Administration under the authority delegated to him. The allotment is to be signed by the administration, bureau, or office head or his designee and be made to responsible individuals (and not to position titles) on DL form 1–183, Notification and Approval of Fund Allotment. This latter form is the prescribed one for use in issuing allotments—no other form is to be used. DL form 1–183 is to be prepared in a minimum of an original and two signed copies and distributed as follows:
(1) Original to allottee; duplicates to the Office of Financial Management, OASA ; and triplicate retained by the issuing official.
(2) The selected items necessary for the preparation of DL form 1-183 are explained below.
(a) Allotment number: This is a two-digit number assigned to each allotment issued and represents the basic identification for processing accounting actions against the allottee's account. Where allotments are increased or decreased, the original allotment number is to be used;
(6) Accounting classification: The full accounting classification developed in accordance with departmental regulation (see Secretary's notice No. 49-64); and
(c) Purpose of allotment and remarks: To be used, as required, as a method for issuing instructions to the allottee; e.g., to specify a limit within
the allotment that may be applied to personal services and benefits. 2–316. Authority and need.—The authority and need for the establishment and issuance of the procedures contained herein are found in the following:
(a) Section 3679 of the Revised Statutes (31 U.S.C. 665(g)).
(0) Budget and Accounting Act of 1921, as amended (31 U.S.C. 21-particularly sec. 213).
(c) Bureau of the Budget Circular A-34 (sec. 13). (d) Bureau of the Budget Bulletin 57–5. (e) Comptroller General's letter to the Secretary of Labor dated June 19, 1964. (f) Secretary's order No. 28-64. (9) Secretary's notice No. 67-64 (program budget management system). (h) Secretary's notice No. 37–65. (i) OASA order No. 465.
LIST OF EXHIBITS, CHAPTER 2-300
Exhibit A. Sample of SF-132 used to request a regular apportionment.
fund allocation. Exhibit I. DL form 1–183, notification and approval of fund allotment. Exhibit J. DL form 1–183A, notification and approval of fund allotment (con
tinuing resolution or Supplemental Appropriation Act).
Exhibit A.—Regular apportionment request
Fiscal year 19..
1. New obligational authority:
A. Appropriations realized.
A. Brought forward July 1.
B. Net transfers (+ or -)--
A. Earned or received..
B. Anticipated. 5. Restorations (+) and writeoffs (-). 6. Total available for apportionment.
APPOPTIONMENTS AND RESERVES
(4) Fourth quarter.
(1) (2) (3) (4)
(5) 8. Reserves:
A. For savings..
9. Total apportionments and reserves.
Richard E. Miller, Director
1 Initial apportionment entered in this column. 2 See below.