BUDGET FORMULATION
Sections
8.03.05 Budget Formulation Cycle
8.03.01
PURPOSE
This subchapter provides information on the formulation aspects of
the appropriation process and describes the responsibilities for preparation
and justification of NIST budget requests.
8.03.02
SCOPE
This subchapter applies to NIST-Gaithersburg and NIST-Boulder.
8.03.03
POLICY
It is NIST policy to prepare and justify its budget submissions for
appropriated funds in accordance with guidelines provided by the Congress,
the Office of Management and Budget (OMB), and the Department of Commerce.
8.03.04
DEFINITIONS
a. Appropriation - Enacted legislation providing authority to
incur obligations and to make payments out of the Treasury for specified
purposes during a specified period of time. An appropriation is the most
common means of providing the budget authority needed to incur obligations
for expenses which are necessary for or incident to the proper execution
of the purpose, unless the expenses are otherwise prohibited.
b. Authorizing Legislation - An act of Congress that establishes
or continues a federal program or agency either for a specified period
of time or indefinitely; specifies its general goals and conduct; and may
suggest a level of budget authority needed to fund the program or agency,
which is subsequently provided in a future appropriation act. An authorization
for an agency or program usually is required before an appropriation for
that same agency or program can be passed.
c. Budget - A plan for the use of resources to accomplish goals and objectives.
d. Budget Amendment - A revision to a pending budget request, submitted to Congress by the President before Congress completes appropriations action.
e. Budget Formulation - All steps, actions, and informational output of the budget process which are required in advance of the enactment of an appropriation bill by the Congress. It is the process by which the resources necessary to accomplish NIST goals and objectives are determined and justified to decision-makers (the Secretary, the President, and the Congress).
f. Budget Justification - A narrative and tabular description of goals, objectives, performance measures and representative accomplishments and the costs of achieving them.
g. Budget Supplemental - An additional amount requested for appropriation for the current year after enactment of the regular appropriation. The request should be for needs deemed too urgent to be postponed until enactment of the next regular appropriation.
h. Continuing Resolution - A joint resolution enacted by Congress
usually at the beginning of the fiscal year to provide authority and necessary
funding for federal agencies and programs to continue operations until
the regular fiscal year appropriation is enacted. The continuing resolution
usually specifies a maximum rate at which the agency may incur obligations.
8.03.05
BUDGET FORMULATION CYCLE
a. The objective of the formulation process is to provide a satisfactory
information basis upon which Bureau directors, Agency heads, the President,
and the Congress can make knowledgeable decisions in the allocation of
the resources toward fulfillment of the Nation's goals and needs.
b. The basic framework of budget formulation in the federal government is established by law. OMB and departmental guidance provide specific details. The primary elements in this framework are:
-- Authorization - The Congress must authorize the obligation of funds for specific programs as a prerequisite for subsequent appropriation. Authorization bills may be submitted by Department heads with the approval of OMB, submitted by the President, or initiated by the Congress. Congressional review of programs for the authorization of appropriations occurs at hearings held by the standing legislative committees of the House and Senate.
-- Budget Requests - NIST submits detailed budget request documents to the Secretary. After review by the Department and based on the decisions of the Secretary, bureaus prepare revised budget requests for submission to OMB. Decisions at this level form the basis for the annual congressional budget, which is submitted by the President to the Congress by the first Monday in February. NIST prepares and submits justifications providing additional detailed information. Budget amendments or supplemental requests may be submitted to the Congress by the President under certain conditions.
-- Appropriation - Appropriations subcommittees in both the House and Senate hold hearings to consider the President's budget. Recommendations are presented to the full committees and to the full House and Senate. A conference committee resolves differences in the House and Senate versions of the appropriations bill. Upon acceptance of conference action by both theHouse and the Senate, the appropriations bill is sent to the President for signature. The President can approve or veto the bill. When an appropriations bill has not been enacted by the beginning of the fiscal year for which the funds are requested, Congress enacts a temporary appropriation act or "continuing resolution," which authorizes the agency to continue its operations for a designated time period. Subsequent continuing resolutions may be passed to continue operations until an appropriation bill is enacted.
c. Also included in budget formulation are the planning, study, evaluation, review, and decision-making actions which must be taken at the bureau and the departmental levels which are necessarily precedent to and supportive of the elements described above.
d. The nature and amounts under consideration in the budget are confidential
and will not be released outside of the Administration until the budget
is transmitted formally to Congress by the President.
8.03.06
RESPONSIBILITIES
a. Planning and Program Review - The Program Office and the
Budget Division are responsible for establishing procedures, guidelines,
and schedules for the planning and program review process. The Program
Office and the Budget Division provide advice to NIST management on funding
levels and program content.
As part of ongoing, internal planning and program review, organizational units are responsible for presenting programs and proposed budget initiatives for review by NIST management officials.
The Director determines the content of the proposed NIST budget in accordance with administrative guidelines on the preparation and submission of the budget.
b. Budget Authorization - The Program Office and the Budget Division cooperate with Congressional and Legislative Affairs staff in the preparation of material for the Congressional authorization process.
c. Budget Justification - The Budget Division is responsible for coordinating the preparation of the required budget justifications to DoC, OMB, and the Congress. The Public and Business Affairs Office coordinates with the Budget Division in preparing information for release to the public.
d. Legislative Proposals - The Budget Division works closely
with the Congressional and Legislative Affairs Office to draft amendments
and legislative proposals which are submitted through the Department of
Commerce for consideration at the next session of Congress.
8.03.07
REFERENCES
The following provisions of pertinent statues and OMB and DoC guidance
relating to budget formulation are available for review in the Budget Division
and the Finance Division.
-- United States Code Title 31, Subtitle II, Chapter 11, -- "The Budget and Fiscal, Budget, and Program Information" - accessible at: http://www.access.gpo.gov/uscode/title31/subtitleii_chapter11_.html
-- United States Code Title 31, Subtitle II, Chapter 13 -- "Appropriations" - accessible at: http://www.access.gpo.gov/uscode/title31/subtitleii_chapter13_.html
-- Office of Management and Budget Circular No. A-11 -- "Preparation and Submission of Budget Estimates" - accessible at: http://www.whitehouse.gov/omb/circulars/index.html
-- Department Administrative Order 203-1 -- "Appropriation Requests and Related Budget Matters" - accessible at: http://dms.osec.doc.gov/cgi-bin/doit.cgi?218:112:1:2
-- Department Administrative Order 203-8 -- "Budget and Program Analysis" and the "Budget and Program Analysis Handbook" - accessible at: http://www.osec.doc.gov/bmi/budget/Budget%20Handbook.htm