1909.13,0 Code Page 1 of 9 FSH 1909.13 - PROGRAM DEVELOPMENT AND BUDGETING HANDBOOK WO AMENDMENT 1909.13-94-1 EFFECTIVE 9/30/94 ZERO CODE 02 - OBJECTIVES. (FSM 1930.2). 03 - POLICY. (FSM 1930.3). 04 - RESPONSIBILITY. (FSM 1904 and 1930.4). It is the responsibility of all line officers to: 1. Review carryover balances annually for excessive amounts and 2. Propose appropriate performance expectations for the Chief's review and approval. 04.1 - Washington Office. 04.11 - Chief. It is the responsibility of the Chief to: 1. Approve the national budget alternatives to be used in the development of the Agency Request to the Secretary of Agriculture. 2. Assign annual performance goals for the Agency including those associated with carryover funds. 3. Report to Congress, annually, the Agency's accomplishments and associated costs. 4. Present to Congress and testify on the programs contained in the President's Budget. 5. Present the Annual Report of the Forest Service to the Secretary of Agriculture for distribution to Congress. 6. Approve the Washington Office Budget. 7. Issue the Initial Program Budget and Management Information (PBMI) Advice to Units after the President's Budget has been transmitted to Congress and Issue a Final Program Budget and Management Information (PBMI) Advice to Units after passage of an Appropriations Act. 8. Establish policies and objectives for execution of the budget. In addition, the Chief reserves the right, after consultation with line officers, to withdraw carryover balances to address critical National issues. This authority cannot be redelegated. 04.12 - Deputy Chiefs. It is the responsibility of the Deputy Chiefs to: 1. Approve all materials forwarded to the Director, Program Development and Budget, for inclusion in budget documents and in response to Congressional and other requests for information. 2. Allocate performance goals to all units, as appropriate, including those associated with carryover funds. 3. Work with the Deputy Area Budget Coordinators and budget teams to construct a range of alternative program budgets. 04.12a - Deputy Chief, Programs and Legislation. In addition to the responsibilities set forth in section 04.12, the Deputy Chief, Programs and Legislation is also responsible for overseeing the processes conducted by the Washington Office, Director of Program Development and Budget. 04.13 - Chief and Staff. It is the responsibility of the Chief and Staff to develop and complete national budget alternatives. 04.14 - Staff Directors. (FSM 1930.43). 04.14a - Director, Program Development and Budget. In addition to the responsibilities set forth in section 04.14, it is the responsibility of the Director, Program Development and Budget to: 1. Develop and manage a national level program development and budget process that defines the minimum standards and procedures necessary to schedule and implement land and resource management plans, State and private plans, research plans and administrative plans within budgetary requirements of the Department of Agriculture, Office of Management and Budget (OMB), and Congress. 2. Establish a monitoring and analysis process that prevents antideficiencies and ensures that financial management policies and objectives are followed. 3. Prepare, for issuance by the Chief, an Initial Program Budget and Management Information (PBMI) Advice based on the President's Budget and a Final PBMI Advice based on the Appropriation's Act for each fiscal year. 4. Establish requirements, processes, and procedures for all allocation and financial reporting activities (including Service- wide carryover funds) throughout the fiscal year. 5. Manage general administration funds, including defining the proper use, developing program development alternatives, allocating the general administration budget line item, performing all budget execution related activities, and monitoring the general administration budget line item. 6. Maintain a record of budget proposals and decisions relating to each step of the budget process. 7. Ensure Chief and Staff sessions are scheduled to develop and complete national budget alternatives. 04.15 - Deputy Area Budget Coordinators. It is the responsibility of the Deputy Area Budget Coordinators to analyze and validate all information provided to the Director, Program Development and Budget through their respective Deputy Chiefs. 04.2 - Field Units. 04.21 - Regional Foresters, Station Directors, Area Director, and Institute Director. It is the responsibility of the Regional Foresters, Station Directors, Area Director, and Institute Director to: 1. Develop and manage standards and procedures to schedule and implement land and resource management plans, State and private plans, research plans, and administrative plans within budgetary constraints and direction. 2. Provide the prescribed national program budget information as requested in the annual instructions. 3. Schedule rates of implementation for long-range plans through the budget process. 4. Propose only programs which are complete and implementable. 5. Identify effects of budget proposals on long-range plans. 6. Adhere to the following process requirements for budget execution: a. Establish and maintain sound budget execution practices consistent with the requirements, processes, and procedures prescribed by the Washington Office, Director of Program Development and Budget. b. Issue Planning and Allocation Advice to subunits and allocations based on the Chief's Initial and Final PBMI Advice and Regional, Station, Area, and Institute objectives. c. Prescribe methods of monitoring performance for compliance with Congressional and the Chief's direction. e. Provide a documented plan of work at each organizational level which includes an identification and description of approved projects. f. Provide a financial plan at each organizational level. 7. Report accomplishments through the National management attainment reporting system that is consistent with the Chief's direction. 8. Provide information in a timely manner for inclusion in budget documents and as requested by the Washington Office, Director of Program Development and Budget to respond to Congressional and other inquiries. 04.22 - Forest Supervisors. It is the responsibility of Forest Supervisors to: 1. Manage available finances in accordance with Regional Forester direction, approved budgets, and agency policy. 2. Establish performance goals and objectives, and distribute available funds for all Ranger Districts and other operating units within the framework of allocations and in accordance with Agency policy. 3. Develop work and financial plans based on available funds, performance goals, and the Chief's direction contained in the final advice from the Regional Forester. 4. Establish operating plans for all allocations. 5. Ensure obligations are limited to available allocations. 6. Follow Congressional intent. 05 - DEFINITIONS. Agency Request. The budget estimate (funding and personnel) submitted by the Chief to the Secretary of Agriculture representing the program the Agency would request be submitted in the President's Budget. Budget Appendix. Part of the document entitled "Budget of the United States Government." This document includes the proposed text of appropriation language; budget funding schedules for each account; new legislative proposals; descriptions of the work to be performed; administrative and general provisions; and other information as specified in OMB Circular A-11, Preparation and Submission of Budget Estimates. Budget Authority. Budget authority for any year represents the authority provided by law, including joint resolutions making continuing appropriations (also referred to as continuing resolution), and becoming available during the year to incur obligations. The basic forms of budget authority are appropriations, authority to borrow, and contract authority. a. Appropriations. Statutory authority that allows Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriation usually follows enactment of authorizing legislation. An appropriation act is the most common means of providing budget authority, but in some cases the authorizing legislation itself provides the budget authority (for example: KV, SSF, BD, and so forth). b. Authority to borrow. Statutory authority that permits a Federal agency to incur obligations and make payments for specified purposes out of borrowed moneys. c. Contract authority. Statutory authority under which contracts or other obligations may be entered into prior to an appropriation for the payment of such obligations. The later enacted appropriation provides cash to liquidate such obligations. Continuing Resolution. When Congress cannot complete action on one or more of the thirteen regular appropriations bills by the start of the fiscal year, it provides temporary emergency funding for the affected Federal agencies through a continuing resolution (a joint resolution). Congress authorizes and appropriates money to keep government agencies in operation for short periods, typically 1 to 3 months, until the passage of the appropriations bills. Department Allowance. The funding allowance from the Department to the Forest Service in response to the Chief's Agency Request. The department allowance becomes the department's estimate for the Forest Service that is transmitted to the Office of Management and Budget as the proposed level of funding to be included in the President's Budget. Deputy Area Budget Coordinators. Staff assistants reporting directly to a specific Deputy Chief with the overall responsibility for coor- dinating Deputy area responses to all budget requests for information. Explanatory Notes. The budget justification to Congress that describes how the Forest Service plans to use the funds included in the President's budget to accomplish the Agency's mission. The Explanatory Notes is a detailed accounting of the information included in the Budget Appendix. Permanent Authority. Budget authority made available each year by virtue of one-time or standing legislation and does not require further action by the Congress. When Congressional action provides such authority, it is considered "current" in the first year in which provided and "permanent" in succeeding years (for example: KV, SSF, and BD). Program. Sets of activities or projects with specific objectives, defined in terms of specific results and responsibilities for accomplishments. Reprogramming. The definition of reprogramming from House Report 103-551 states in part: . . . the reallocation of funds from one budget activity to another. In cases where either Committee report displays an allocation of an appropriation below the activity level, that more detailed level shall be the basis for reprogramming. Any proposed reprogramming must be submitted to the Committee in writing prior to implementation if it exceeds $500,000 annually or results in an increase or decrease of more than 10% annually in affected programs, with the following exceptions: With regard to the Forest Research, State and Private Forestry, and National Forest System (NFS) accounts of the Forest Service, the reprogramming control level will be at the budget line item level (BLI); e.g. recreation use, wildlife and fish management, and forest land management for NFS. A reprogramming will be triggered if these line items are proposed to be changed by $3,000,000 or 10%, whichever is less. Rescission. Enacted legislation that cancels the availability of budget authority (BA) previously provided by Congress before the time the BA would otherwise lapse. The Impoundment Control Act of 1974, as amended, requires the President to transmit a special message to Congress whenever a rescission of BA is proposed. Congress must then enact legislation to rescind the funds. If legislation action is not completed within 45 days after a rescission proposal is received in Congress, the funds must be made available for obligation. Sequestration. To ensure that Congress and the President met the successive installment payments on the deficit, the Balanced Budget and Emergency Deficit Control Act of 1985, included an automatic deficit reduction mechanism called "sequestration." If there is no legislative-executive success in meeting the deficit target, then the President must make across-the-board spending cuts (sequestration) evenly divided between domestic and defense programs, to achieve the prescribed deficit reduction target. No further action is required of Congress. 06 - PROCESS SCHEDULE. The program development and budgeting process is comprised of ten steps. See exhibit 01 for a description of the complete annual budget cycle. 06 - Exhibit 01 Description of the Annual Budget Cycle Step 1. Development of Program Budget Instructions. The program development and budgeting process begins with the preparation of instructions for formulating budget proposals. The national direction provides the guidelines for: a. Meeting the long-term policy direction in the Forest and Rangeland Renewable Resources Planning Act of 1974. b. Implementing the Forest Land Management Plans, State Resource Plans, Research Plans, and Administrative Plans to the extent practical within the funding constraints provided. Step 2. Development and Presentation of Alternative Program Budget Proposals. Regions, Stations, Area, and Institute develop program proposals based on information from local units that respond to national and regional direction. The field forwards these proposals to the Washington Office where they are used to develop national program alternatives. Step 3. Budget Presentation and Justification--USDA. National program alternatives are used to formulate the Agency's budget request to the Secretary of Agriculture. In addition to the technical budget documents, the Program Development and Budget staff develops a presentation and justification package to support and explain in more detail the Forest Service requested budget alternative. Step 4. Budget Presentation and Justification--Office of Management and Budget. The Department of Agriculture submits an estimate for the Forest Service budget to the Office of Management and Budget, along with technical budget documents, special justifications, and tables. After consideration and resolution of appeals, the OMB allowance becomes the President's budget. Step 5. Issuance of Initial Field Allocation. Funding allocations, targets, national program emphasis, and workforce allocations are distributed to all units by the Program Development and Budget staff based upon the President's Budget. This document is commonly referred to as the Program Budget Management Information (PBMI). Allocations to Regions, Stations, and the Area should be based on field program budget proposals and should match field program budget proposals where possible. The PBMI should include a narrative explaining the differences between program budget proposals and allocations. Units have the opportunity to comment and indicate needed changes before final allocations are made. Step 6. Budget Presentation and Justification--Congress. When the President's Budget is received from OMB, the Program Development and Budget Staff prepares 06 - Exhibit 01--Continued work on the Budget Appendix and Explanatory Notes. The Program Development and Budget staff also (a) briefs witnesses for committee hearings; (b) prepares displays for committee hearings; and (c) responds to appropriation subcommittee questions that continue until the appropriations act is signed into law. Step 7. Update of Field Allocations. The initial field allocation (step 5) is updated to reflect final appropriations from Congress. Step 8. Midyear Reviews. All units submit midyear financial and attainment reports, as appropriate. Chief and Staff reviews these requests and the justifications for changes in accountability and makes necessary adjustments. Step 9. End of Fiscal Year Reports. All field units report final attainments. Attainment information is used in the management review process and in the preparation year end reports. Step 10. Annual Report of the Forest Service. The Program Development and Budget Staff prepares the Annual Report of the Forest Service, which describes accomplishments related to annual appropriations and the RPA program. 07 - OVERVIEW. 07.1 - Relationship With Land Management Planning and Resources Planning Act. 1. Planning Process. Long-range planning occurs within the overall framework of the Forest and Rangeland Renewable Resources Planning Act, as amended by the National Forest Management Act, and their implementing regulations. The regulations require the following three-level planning process: a. National. Resources program and assessment. b. Regional. Regional guide. c. Local. National Forest land and resource management plans. In addition, State forest resource plans, developed by the States for State and private land, and Research plans are integral parts of the total planning process. 2. Program Development and Budgeting. Land management plans, State plans, Research plans and Administrative plans provide the basis for annual budget proposals. The rate and level of plan implementation depends on the funding and workforce made available through the annual budgeting and appropriation process. 07.2 - Documentation of Budget Proposals and Decisions. The Washington Office, Director of Program Development and Budget maintains the following information as a record of budget proposals and decisions relating to the budget process: 1. Program budget instructions to Regional Foresters, Station Directors, Area Director, and Institute Director (ch. 10); 2. Field budget proposals submitted in response to program budget instructions (ch. 10); 3. Agency Request (ch. 20); 4. Department Allowance (ch. 20); 5. Explanatory Notes (ch. 20); 6. Congressional questions and answers (ch. 20); 7. Land Management Planning Report to Congress (ch. 70); 8. Unit budget allocations (ch. 40); 9. Management Attainment Report (ch. 50); and 10. Annual Report of the Forest Service (ch. 60).