1909.13,34-39 Page 1 of 21 FSH 1909.13 - PROGRAM DEVELOPMENT AND BUDGETING HANDBOOK WO AMENDMENT 1909.13-94-1 EFFECTIVE 9/30/94 34 - FINANCIAL CONTROLS. Develop a system of financial controls that ensures substantive attainment of program objectives, performance goals, and expectations as planned within the limits of available funds, and in compliance with legislation and other regulatory authorities. Ensure that the controls provide for the timely and effective analysis of actual obligations compared to allocations by appropriation and budget line items to ensure compliance with the Antideficiency Act and principles of financial management. 34.04 - Responsibility. 34.04a - Washington Office, Director of Program Development and Budget. The Director of Program Development and Budget, through the Deputy Chief for Programs and Legislation, has the authority and is responsible for limiting obligations to the amounts allotted or otherwise available in each appropriation for the Forest Service and for staying within apportionment totals by period. 34.04b - Regional Budget Officers. The Regional Budget Officers, through the Regional Foresters, have the authority and are responsible for limiting obligations to the amounts allotted or otherwise available in each appropriation for their respective Regions and Units and for staying within their share of agency apportionment limitations by period. 34.04c - Station, Area, and Institute Budget Officers. Station, Area, and Institute Budget and Accounting Officers, or their equivalents, through the Station, Area, and Institute Directors, have the authority and are responsible for limiting obligations to the amounts allotted or otherwise available in each appropriation for their respective units and subunits and staying within their share of agency apportionment limitations by period. The Northeastern Station is responsible for the Northeastern Area and its subunits. 34.1 - Systems of Fund Control. Title 31, United States Code, section 1514 (31 U.S.C. 1514) requires the head of each agency to prescribe by regulation, subject to the approval of the Director of the Office of Management and Budget, a fund control system. Ensure that the fund control system is part of the agency's internal control system. It may include provisions for allotments and other administrative subdivisions of budgetary resources within the limits of apportionments, and must be designed to: 1. Restrict both obligations and expenditures from each appropriation to the lessor of: a. The amount available in the appropriation; or b. The amount of the apportionment or reapportionment for the appropriation; and 2. Enable the head of the agency to determine responsibility for an obligation or expenditure exceeding an appropriation, apportionment or reapportionment, allotment, and any other administrative division of funds. Allotment systems should be designed so that responsibility for budget control is placed at the highest practical level consistent with effective and efficient management and control. The National Finance Center provides fund control statements and unit financial statements (FSM 6553) monthly. These statements are cumulative and reflect the current status of allowances, reimbursements, expenditures, and unpaid obligations for all levels of the organization having authority to obligate funds. 34.11 - Appropriation Control. The Forest Service system of fund control complies with the requirements in section 34.1. Allot funds to Regional Foresters, Station Directors, Area Director, and Institute Director by expanded budget line item for Congressional Intent purposes and by appropriation for Antideficiency Act fund control purposes. Also, apportion funds for each appropriation. Obligations in excess of amounts allotted in each appropriation, or in excess of amounts apportioned for each appropriation violate the Antideficiency Act (31 U.S.C. 1341(a) and 31 U.S.C. 1517(a)). Ensure that employees involved in the development of work plans and financial plans and the establishment and operation of controls are thoroughly familiar with the policies and procedures as they relate to their level of operation, and the manner in which their area of responsibility affects other operating levels and programs. 34.12 - Apportionment Control. Title 31, United States Code, section 1515 (31 U.S.C. 1515) requires that appropriations and funds available for obligation be apportioned to: 1. Prevent obligation or expenditure thereof in a manner which would indicate a necessity for a deficiency or supplemental appropriation. 2. Achieve the most effective and economical use thereof. 3. Effect savings. Apportionments and reapportionments for the executive branch are made by the Director of the Office of Management and Budget (OMB), usually at the mainhead appropriation or fund level and for established time periods within the year. Such apportionments are binding in controlling the execution of budgetary plans for the Forest Service, since the Antideficiency Act provides that obligations or expenditures shall not be incurred or authorized in excess of apportionments or reapportionments. 34.12a - Apportionment Periods. Appropriations are apportioned on an annual basis. Apportionment of funds allocated to the Forest Service from other agencies is governed by the authority of that agency. 34.12b - Apportionment and Reapportionment Form. Use Form SF- 132, Apportionment and Reapportionment, to establish total budgetary resources available to the Forest Service and the rate of obligations allowed for specified periods. This form is submitted by the Washington Office, Director of Program Development and Budget, through the Department of Agriculture, to the Office of Management and Budget. After preparation and approval, enter the Form SF-132 into the Program Management Planning (PMP) system and then into the National Finance Center for recording in the General Ledger and Budget Cost systems. The Washington Office, Director of Program Development and Budget uses Form FS-6500-43, Allocation and Obligational Authorization Advice, to establish obligation and apportionment limitations for all Accounting Centers. This form is also entered in the PMP system at the National Finance Center, by the Program Development and Budget Staff, and then into the General Ledger and Budget Cost systems. See FSH 6509.11k for an abbreviated example of the format for the automated Form SF-132 and Form FS-6500-43. 34.12c - Controls. Ensure close cooperation among administrative, program, budget, and accounting personnel at all levels, regardless of delegation of specific responsibilities as follows: 1. Determine apportionment and reapportionment needs, and initiate requests sufficiently in advance of need of obligation to permit action. 2. Limit obligations, including reimbursable obligations, to the amounts of currently approved apportionments. 3. Investigate and report any apparent violations of the Antideficiency Act promptly. 34.12d - Revision of Apportionment Allowances. Revision of apportionment allowances is usually unnecessary if units effectively manage funds within their share of the Agency limitation. However, when an apportionment allowance is not sufficient to cover anticipated needs, the Regional Budget Office, or equivalent, promptly requests a revision of the apportionment allowance to the Washington Office, Director of Program Development and Budget for approval. Submit requests for revisions of apportionment allowances in writing to the Washington Office, Director of Program Development and Budget. Include a brief explanation for the revision and show the specific date when approval is needed, what action the unit must initiate if the request is not approved, and the consequences of disapproval. Submit requests involving increases in apportionment allowances as soon as the need is identified. Where an apportionment allowance approaches exhaustion in the face of emergency, inform the Washington Office, Director of Program Development and Budget immediately of the situation, so that necessary action may be taken. Most adjustments of apportionment allowances can be made internally without requesting apportionment revision from the Office of Management and Budget. Where conditions warrant, the Washington Office, Director of Program Development and Budget, submits revisions of apportionments to the Office of Management and Budget, through the Department of Agriculture's, Office of Budget, Planning, and Analysis. The Region, Station, Area, and Institute budget officer or equivalent, should inform the Washington Office, Director of Program Development and Budget, whenever the amount of apportionment allowance limitation exceeds the estimated obligations by a substantial amount. This information helps the Washington Office, Director of Program Development and Budget, coordinate Service-wide needs. The Washington Office, Director of Program Development and Budget initiates the withdrawal of excess apportionment allowances, as needed. Apportionment allowances are cumulative and the balance at the end of any quarter carries forward within the current fiscal year for obligation in subsequent quarters. 34.2 - Control Devices. The National Finance Center furnishes Fund Control Statements to each Unit on a monthly basis. Analyze this statement monthly and compare obligations to allocations and apportionment allowances by appropriation. Make projections of obligations each month to ensure that allocations and/or apportionment allowances are not exceeded. If projections indicate a potential appropriation deficit or apportionment violation, immediately notify the Washington Office, Director of Program Development and Budget in writing in accordance with sections 34.31 and 34.32. 34.3 - Appropriation or Apportionment Violations. Incurring obligations in excess of the amount available in an appropriation or in excess of an approved apportionment for the apportionment period constitutes a violation of the Antideficiency Act and must be reported to the President and to Congress. Employees who are responsible for appropriation or apportionment controls are also responsible for any violation of the Antideficiency Act. Any employee who knowingly and willfully violates any of the provisions of the law and regulations and who exceeds the approved appropriation limitations or apportionments is subject to appropriate administrative discipline (31 U.S.C. 1518). Discipline may include suspension from duty without pay or removal from office. Upon conviction, the employee may be fined not more than $5,000 or imprisoned for not more than 2 years, or both (31 U.S.C. 1519). The Chief takes disciplinary action in accordance with established procedures. 34.31 - Washington Office Report. The Chief, through the Washington Office, Director of Program Development and Budget promptly submits, through the Department of Agriculture's Director of Finance, a report in the form of a letter, addressed to the President and for the signature of the Secretary, in any case where an officer or employee of the United States has, on a Service-wide basis: 1. Made or authorized a disbursement from, or created or authorized an obligation under, any appropriation or limitation in excess of the amount available therein. 2. Involved the government in a contract or other obligation for the payment of money for any purpose in advance of appropriations made for such purpose, unless such contract or obligation is authorized by law. 3. Accepted voluntary service for the United States or employed personal services in excess of that authorized by law. 4. Authorized or created an obligation or made a disbursement in excess of any apportionment or reapportionment. 5. Authorized or made an allotment, authorized or created an obligation, or made a distribution in excess of the amount permitted by regulation or instructions issued by the Secretary of Agriculture. 34.32 - Regions, Stations, Area, and Institute Reports. 1. Report Prepared By Field Unit. The Regional Forester, Station Director, Area Director, and Institute Director, submit, in writing, reports of violations of the Antideficiency Act to the Washington Office, Director of Program Development and Budget. As a minimum, reports should include the following data: a. The title and Treasury symbol, including the fiscal year, of the appropriation or fund involved, the amount involved for each violation, and the date on which the violation occurred or was discovered if the actual date the violation occurred is unknown. b. The name and position of the officer or employee responsible for the violation. c. All pertinent facts relating to the violation, including the type of violation, such as overobligation of allotment, or overexpenditure of an appropriation, the primary reason, and any statement of the responsible officer or employee with respect to extenuating circumstances. d. A statement of the administrative discipline imposed or any other administrative action taken with respect to the officer or employee, or an explanation as to why no disciplinary action is deemed necessary. e. A statement of any additional action taken by, or at the direction of, the Regional Forester, Station Director, Area Director, or Institute Director, including any new safeguards provided to prevent recurrence of the same type of violation. f. A statement regarding the adequacy of the Unit's system of administrative control. 2. Report Prepared By the Washington Office. When the report of violation is prepared in the Washington Office, it shall include, in addition to the data listed in paragraph 1, a statement addressing the following: a. Any additional action taken by or at the direction of the Chief, any new safeguards provided to prevent recurrence of the same type of violation. b. The adequacy of the Forest Service system of administrative control. 34.4 - Recoveries. Notify the Washington Office, Director of Program Development and Budget immediately when a recovery of obligations occurs for an amount which exceeds $100,000. Include request for recovery authority in mid-year review reports for amounts exceeding $10,000. It is not necessary to request recover authority for amounts under $10,000. 34.5 - Monthly Financial Monitoring Plan. Ensure that the Regions, Stations, Area, and Institute, Program Development and Budget personnel, working in liaison with personnel responsible for fiscal and accounting services, adhere to the following Monthly Financial Monitoring Plan which represents the minimum requirements of a sound financial monitoring plan. 1. Monitor and evaluate National Finance Center financial statements monthly and compare the actual current year obligations to date with current year authority by Treasury symbol. 2. Ensure that all available funding authorities have been allocated. 3. Compare operating plans, from monthly Financial Statements, to Form FS-6500-43 allocations plus prior year unpaid obligations at yearend, by Expanded Budget Line Item (EBLI) detail. Also, followup letters such as reprogramming, midyear, and supplementals should be considered. Operating plans should equal authorities plus obligated carryover or differences should be explainable. Compare operating plans plus recovery and reimbursements to obligations by EBLI. 4. For Permanent and Trust Funds, compare operating plans, without sub-unit 98, with the limitation received. 5. Ensure that Form AD-739 allocation adjustments and Form AD-729 operating plan adjustments have been made in accordance with approved reprogramming. 6. Ensure that reimbursement accounts are being currently maintained. a. Ensure TS11 reimbursable costs are transferred to the receiving unit when the work has been completed, but no less than quarterly, and on all outstanding amounts as of the July 31 Financial Statements. b. Ensure TS12 and TS13 reimbursables, and NFSA, NFSC, and NFSD funds are reviewed, billed, and collected within agreement timeframes, but no less than quarterly. All outstanding amounts as of the July 31 Financial Statement should be reviewed and billed. c. Compare reimbursement obligations to anticipated reimbursement authority plus reimbursement collections on Report 64-2, Regional Fund Control. Obligations should not exceed the sum of these two. d. Compare reimbursement collections plus reimbursement receivables to reimbursement unpaid obligations and expenditures. The sum of the former should equal the sum of the latter. If the sum of the latter is greater than the sum of the former, the difference should be billed. 7. Evaluate, validate, and report unpaid obligations monthly. Examine obligations for reasonableness and completeness. Validate dramatic changes from historical amounts and significant decreases and/or increases from previous month. 8. Project obligations for the quarter and yearend based on February 28 and May 31 Financial Statements and monthly thereafter. Projections can be made by straight line, by apportionments, or by previous trends (such as historical cost data). Projections should be accomplished by mainhead and by fund code and should be within the authorities allocated. 9. Match actual and projected obligations against apportionment authorities. 10. Evaluate trust funds (for example: CWKV, SSSS, and so forth), and the rate of spending versus the rate of collections. Actual collections should equal or exceed anticipated receipt authority and obligations. Ensure that obligations do not exceed apportionment authority. 11. Monitor all prior year unpaid obligations. Deobligate those no longer valid and adjust others based on the current situation. Review major increases and decreases in actual payments of prior year unpaid obligations. Plan to cover increases in prior year obligations from current year funds. Request recovery authority for decreases in prior year obligations and perform the actual deobligation of the amounts at mid-year review and as of July 31. 12. Review Treasury Symbol records for potential errors. (Accounting records could indicate activity even if the account is not available to unit.) 13. Monitor transfer appropriation accounts and allocation accounts on a monthly basis. Be particularly mindful of Job Corps Operation accounts which are available for only 1 year beginning on July 1 and ending on June 30. 14. Conduct the following general accounts maintenance: a. Correct blank and invalid fund codes. b. Monitor default fund codes and take the necessary corrective action (for example: payroll rejects, payroll corrections charged to purged management codes, equipment use rejects, Form SF-1081 collection rejects and payment rejects for telephone, utilities, BOAC, and credit card charges). c. Monitor and correct collection rejects. d. Review and clear deficit balances in CO-OP accounts. Ensure that no deficits in any individual accounts for fund codes CWFS, TDTD, SDSD, BCBC, RIRI, GBGB, or QMQM exist. e. Review and clear expenditures against any of the 4- digit numeric revenue only fund (appropriation) symbols (such as 5008) and expenditures against Budget Object 0100. f. Identify and correct reimbursement collections in non-reimbursement work activities (except for meals which can be in any work activity) and reimbursement collections in non-reimbursement type fund codes (for example: NFHA, NFRM, BDBD, CWFS, CWKV, RIRI, or SSSS). g. Monitor and correct any revenue collections or revenue accounts receivable in reimbursable work activity accounts and in non-revenue fund codes (for example: NFGA, NFTM, NFFA, FFFP, and other appropriated dollars fund codes). h. Review and correct current year subunit transactions in prior year expired funds. 15. Evaluate, resolve, document, and followup on problems disclosed during the review. The Regions, Stations, Area, and Institute, Program Development and Budget staff, or equivalent, working in liaison with Fiscal and Accounting Services Staff, provide Monthly Financial Monitoring Plan implementation procedures to Forests, Research field locations, or other subunits in supplements to this section. 34.6 - Controls by Budget Activity or Subactivity. Establish controls by budget activity or subactivity, for example: expanded budget line items (EBLI), to ensure that obligations by EBLI do not exceed allocations and are within other requirements of Congressional intent. 34.61 - Congressional Intent. Congressional intent requires that funds be obligated in each budget activity or subactivity as displayed by the Appropriation Committees in their reports on the Appropriation Act. Deviations require the approval of the Committees. Congressional intent also includes adherence to the House, Senate, and Conference Committee Reports on the Interior Appropriation Bill each year as set forth in sections 34.62 - 34.64. 34.62 - Congressional Earmark. The designation of funds for specific projects/places is termed "earmarking". Transmit earmarks to Units through the Final Program Budget and Management Information (PBMI). Responsibility for meeting specific earmarks is assigned to the responsible Deputy Chief, Regional Forester, Station Director, Area Director, or Institute Director. 34.63 - Congressional Reports. Within the report/bill language, Congress often directs the Forest Service to do certain things which require a report back to the Congress. The Washington Office, Director of Program Development and Budget coordinates this effort. Responsibility for completion of the required action resides with the affected Deputy Chief. 34.64 - Congressional Guidance. Direction that Congress gives that is not a dollar earmark nor requires a report, falls under this category. The need to meet the Congressional intent expressed in Congressional guidance is just as important as meeting congressional earmarks or congressional report requirements. Responsibility for implementing congressional guidance resides with the affected Deputy Chief, Regional Forester, and Station, Area, and Institute Directors. The Final Program Budget Management Information (PBMI) advice includes Congressional earmarks, reports, and guidance. The Washington Office, Director of Program Development and Budget transmits under separate cover the Congressional Reports (Directives) with complete descriptions and due dates to units. 34.65 - Legal Availability of Funds. See FSH 6509.11g and the Chief's annual Program Budget Management Information (PBMI) Advice for guidelines on the legal availability of funds. Record fund allotments and allowances by fund codes in the accounting records. Crosswalk these codes directly to appropriations and Treasury symbols to meet Congressional reporting requirements. Record obligations and expenditures in the accounting records in detail (FSM 6550 and FSH 6509.11). In addition, record individual cooperative work Forest Service accounts, amounts reserved for payments to States, and appropriation reimbursements by individual accounts. Report unpaid obligations monthly. It is recommended that additional controls be established during yearend obligation periods to ensure all unpaid obligations are valid and reported. 35 - MID-YEAR REVIEW. Follow the procedural guidelines in this section for performing the comprehensive accomplishment, and financial review of the Forest Service management system. Use this review to: 1. Identify emergency or unforeseen issues which affect funding and/or accomplishment of performance goals. 2. Provide the Chief with timely information to determine if program execution meets expectations. Conduct this mandatory midyear review as of the end of February each year and submit a report to the Washington Office, Director of Program Development and Budget, in mid-April. See the Final Program Budget Management Information (PBMI) Advice for the specific report due date. Use the most current financial data available and include information as outlined in section 35.1. Ensure that the financial management midyear review information reflects any surplus or shortage in funds and/or performance goals that have not not been resolved at the Unit level. Program adjustment requests should be submitted to the Washington Office, Director of Program Development and Budget. See section 35.2, exhibit 01 for the recommended Program Adjustment Request format. 35.1 - Reporting Funding Adjustments. Ensure that the Washington Office, Director of Program Development and Budget receives this information no later than the date listed in the PBMI. Document requests for funding adjustments as shown in the sample format in section 35.2, exhibit 01 with a narrative justification describing the unforeseen and/or emergency situation. Each Region, Station, Area, Institute, and Washington Office Deputy Area submits a summary report of funding overages and shortages of the fiscal year based upon a financial review as of February 28. 35.2 - Reporting Target Adjustments. Request target adjustments based on the financial review only for those management attainment items reported through the Management Attainment System (ch. 50). Adjustments to performance goals should reflect unforeseen issues that are beyond the control of the Unit. In situations where reductions in performance goals are requested, a corresponding funding adjustment should be provided. Send a justification statement, as a part of the mid-year review report, detailing significant departures from Program Budget Management Information (PBMI) unit costs. Use the following criteria to help focus midyear requests on the areas that are most likely to receive support: 1. Give primary consideration to funding requests for emergency items or unforeseen situations. 2. Ensure that adjustments to performance goals are well justified and accompanied by similar funding adjustments. Limit adjustments in performance goals to: (a) correction of data errors and (b) adjustments tied to funding changes. See exhibit 01 for a sample program adjustment request. 35.2 - Exhibit 01 Sample Program Adjustment Request UNIT: _______ DEPUTY AREA: _____ EBLI/BLI DESCRIPTION: __________________ ALLOC.(PBMI) PROPOSED +/- DIFFERENCE MAR # ACTIVITY FUNDS TARGET FUNDS TARGET FUNDS TARGET FUND N/A NFRN-AN1 $15,987 $16,072 + $85 ______________________________________________________ JUSTIFICATION: Excessive rains on the Cherokee NF between February 15 and 17 caused severe flood damage at several major recreation areas on the Forest. These funds are needed to repair facilities and prepare the areas for public use this recreation season. Emphasis is needed primarily along the Ocoee, Tellico, and Hiwassee River drainages. ______________________- ______________________ 36 - REPROGRAMMING. Use reprogramming as a tool to adjust fund availability within an appropriation to carry out the program funded by Congress and to meet unforeseen requirements. See section 05 for the definition of the term reprogramming. 36.1 - Reprogramming Authority. Use reprogramming authority to shift funds within an appropriation between budget line items (for example: between recreation use and forestland management within National Forest System appropriation). Do not shift funds between mainhead appropriations without full House and Senate approval. Maintain specific Congressional designations as provided in the House, Senate, or Conference reports. Submit a reprogramming request to Congress even if the amount is within the Chief's authority. 36.2 - Approval Requirements. 1. Budget Line Items. a. Approval by Chief. Reprogramming of funds between budget line items (BLIs) within an appropriation, requires approval by the Chief if it falls within the $3,000,000 limit annually. b. Approval by Appropriation Committee. Obtain appropriation Committee approval through the Secretary of Agriculture when the national total exceeds this $3,000,000 limit or results in an increase or decrease of more than 10 percent annually in affected programs with the following exception: land purchase or construction projects which: (1) do not exceed $500,000, or (2) result in an increase or decrease of not more than 10 percent annually. Regional Foresters, Station Directors, Area Director, and Institute Director are delegated authority to reprogram up to $500,000 between projects. Reprogramming proposals that exceed $500,000 must be approved by Congress. 2. Extended Budget Line Items. Ensure that any movement of funds within a BLI between extended budget line items (EBLI's) is reported to the Washington Office, Director of Program Development and Budget. Although this is not reprogramming, it is highly sensitive in some program areas and must be reported to Congress. 3. Congressional Reporting Timeframes. In accordance with the House Appropriations Committees Report, submit all reprogramming and movement of funds within a BLI between EBLIs as follows: (1) A report due by November 1, or 30 days after the appropriations bill is enacted into law if enacted after October 1, reflecting Congressional action and showing any other revisions at the EBLI level since the budget was submitted the previous February. This will become the baseline for reporting throughout the year; (2) A mid-year report of actual costs by EBLI as of March 31, with a projection for the remainder of the year, due no later than May 1; (3) An update of actual costs by EBLI as of July 31, with updated year end projections if necessary, due no later than September 1; (4) An end of the year report by EBLI, incorporated into the next fiscal years's baseline report, due by November 1. 36.3 - Criteria. Use the following guidelines as criteria for reprogramming: 1. Do not use additional reprogramming to complete projects or activities which may have been deferred through initial reprogramming. Instead, seek funds for the deferred project or activity through the regular appropriation process. 2. Reprogram only when an unforeseen situation arises and then only if postponement of the project or the activity until the next appropriation year would result in actual loss or damage. Do not consider mere convenience or desire as factors for reprogramming. 3. Do not reprogram to initiate new programs or to change allocations specifically denied, limited, or increased by the Congress in the act or the reports. In cases where unforeseen events or conditions require such changes, submit the proposals to the Washington Office, Director of Program Development and Budget, in advance, regardless of amounts involved. Include a complete explanation and justification with each proposal. 36.4 - Reprogramming Reports. As a minimum, submit reprogramming requests for the entire year or a negative report by the end of February to the Washington Office, Director of Program Development and Budget. Submit any emergency reprogramming requests immediately. Consider the following principles when determining reprogramming needs: 1. The amounts displayed in the PBMI plus unobligated carryover from the base from which reprogramming proposals should be measured. 2. For construction accounts, reprogramming constitutes the movement of funds from one construction project identified in the Explanatory Notes to another project. 3. Unit closures and significant reorganizations are within the reprogramming procedures. 4. Program Budget Management Information (PBMI) may further restrict reprogramming to meet Congressional requirements. 5. Reprogramming requests that are in direct conflict with our budget proposals and/or congressional guidelines have little chance of being approved. This includes, but is not limited to the following: a. Reprogramming requests to shift funds to other budget activities when performance goals were unable to be met. b. Reprogramming requests based strictly on the fact that differences exist between Forest Plans, Congressional action, and/or budget allocations. Congressional intent must be followed. c. Approval of reprogramming requests depends on the ability to adequately justify the needs for these requests to the Department, the Office of Management and Budget (OMB), and the Appropriation Committees. Include adequate documentation and justification in each request. Ensure that reprogramming requests answer these questions: (1) Why are the funds needed to meet the targets approved by the Congress or specific public needs? (2) Why are the funds available to be reprogrammed? (3) What are the consequences if reprogramming is not approved? 36.5 - Exhibits. 1. Exhibit 01. See exhibit 01 for a summary of reprogramming authorities available to the Chief, Regional Foresters, Station Directors, Area Director, and the Institute Director. 2. Exhibit 02. See exhibit 02 for a summary of the budget line item level for requesting and reporting reprogramming. 36.5 - Exhibit 01 Summary of Reprogramming Authority Regional Foresters, Station Directors, Area Director, and Type of Reprogramming Chief Institute Director Reprogram funds from Unlimited, within Same as Chief. one expanded budget political realities. line item to another within a budget line item. Reprogram funds from Up to $3,000,000 None. one budget line item annually or 10 percent to another within an whichever is less. appropriation mainhead. Reprogram funds Up to $500,000 per Same as Chief. from one facility project, except no construction or land new projects can acquisition project to be initiated. another. Cancel Increase or projects or initiate decrease up to 10 new projects. percent per project annually. 36.5 - Exhibit 02 Budget Line Item Level For Determining And Reporting Reprogramming Reprogramming requests are required before moving funds between budget line items as identified in the House, Senate, and Conference reports and used in the Program Budget Management Instruction package (PBMI). The level required for reprogramming is summarized as follows: 1995 APPROPRIATION/BUDGET LINE ITEM/ FUND EXPANDED BUDGET LINE ITEM CODES ----------------------------------------------------------- ----- ------- RESEARCH Forest Resources and FRNP Management Research Research Foundation Program FRFN Ecosystems Research FREM STATE & PRIVATE FORESTRY Forest Health Management Federal Lands Forest Health Mgt SPFH Coop Lands Forest Health Mgt SPCH Coop Lands Fire Mgt SPCF Cooperative Forestry Forest Stewardship SPST Stewardship Incentives Program SPIT Forest Legacy Program SPLG Natural Resource Conservation SPNR Education Urban & Community Forestry SPUF Economic Action Programs SPEP PNW Assistance Programs SPNW FOREST SERVICE FIRE PROTECTION Fire Prevention FFFP EMERGENCY FOREST SERVICE FIREFIGHTING Fighting Forest Fires EFFS NATIONAL FOREST SYSTEM Ecosystem Planning, Inventory, NFEM and Monitoring Minerals and Geology Management NFMG 36.5 - Exhibit 01--Continued 1995 APPROPRIATION/BUDGET LINE ITEM/ FUND EXPANDED BUDGET LINE ITEM CODES ----------------------------------------------------------- ----- ------- Land Ownership Management Real Estate Management NFLA Land Line Location NFLL Infrastructure Management Facilities Maintenance NFFA Road Maintenance NFRD Law Enforcement Operations NFLE Forestland Management Timber Sales Management NFTM Forestland Vegetation Management NFFV Recreation Use Recreation Management NFRM Wilderness Management NFWM Heritage Resources NFHR Wildlife and Fish Management Wildlife Habitat Management NFWL Inland Fish Management NFIF Anadromous Fish Management NFAF Threatened, Endangered, and NFTE Sensitive Species Management Rangeland Management Grazing Management NFRG Rangeland Vegetation Management NFRV Soil, Water, & Air Management Soil, Water, and Air Operations NFSO Watershed Improvements NFSI General Administration NFGA CONSTRUCTION Facilities Construction Recreation Construction CNRF Research Construction CNRE Construction for FA&O CNFA Forest Road Construction General Purpose Roads CNGP Recreation Roads CNRN Timber Roads CNTM Trail Construction CNTR 36.5 - Exhibit 01--Continued 1995 APPROPRIATION/BUDGET LINE ITEM/ FUND EXPANDED BUDGET LINE ITEM CODES ----------------------------------------------------------- ----- ------- LAND ACQUISITION LALW ACQUISITION OF LANDS FOR NATIONAL FORESTS, ACAC SPECIAL ACTS ACQUISITION TO COMPLETE LAND EXCHANGES EXEX EARLY WINTERS LAND EXCHANGE EWEW GIFTS, DONATIONS, BEQUESTS FOR RESEARCH GDGD RANGE BETTERMENT FUND RBRB 37 - YEAR-END CONTROLS. As part of the yearend closing processes, correct any duplicated, rejected, erroneous, or missed obligations through an additional obligation report. Use this additional obligation reporting opportunity to correct obligation information submitted in the initial obligation report. 1. Obligation Adjustment Period. The yearend closing process includes a 3-day period for making any necessary obligation adjustments. The 3-day period immediately follows the issuance of preliminary financial reports. The dates for the 3- day period vary annually and are set by the Fiscal and Accounting Services staff. In addition, the Program Development and Budget staff issues annual instructions and procedures for the 3-day period. Since only so much can be accomplished, prioritize efforts needed to accomplish the primary objective of obtaining accurate financial information. 2. Common Errors. See the following list of common errors which need to be corrected during this period: a. Missed obligations. b. Rejected obligations. c. Transposed amounts. d. Obligations entered twice. e. Submitted operating plan updates that did not get processed correctly may need to reflect an adjustment in the obligations to reflect proper distribution of expenses. f. Errors in the year-to-date accounting/financial information. g. Classification of obligations (delivered/undelivered). 38 - FINANCIAL REPORTS. The following financial reports are produced by the Program Development and Budget staff to assist the Chief in assessing financial management performance: 1. Congressional Intent and Financial Management Analysis (sec. 38.1); 2. Evaluation of Management Performance (sec. 38.2); and 3. Management Attainment Reports (sec. 38.3). 38.1 - Congressional Intent and Financial Management Analysis. This report is prepared twice a year to provide input on the performance ratings of personnel responsible for financial management and to assist in the preparation of year-end closing. See exhibit 01 for a sample report. 38.1 - EXHIBIT 01 IS A SEPARATE DOCUMENT. 38.2 - Evaluation of Management Performance. Prepare this report twice a year to: 1. Provide input to the performance ratings of personnel responsible for financial management, particularly line officers. 2. Provide an overview of management attainment accomplishments, use of financial resources, and workforce (FTE) ceilings. See exhibit 01 for a sample report. 38.2 - EXHIBIT 01 IS A SEPARATE DOCUMENT. 38.3 - Management Attainment Report. This detailed report is fed into the Evaluation of Management Performance section called resources (sec. 37.2, ex. 01). For additional details on the Management Attainment Report, see chapter 50. 39 - CARRYOVER FUNDS. 39.1 - Appropriations Other Than Forest Service Fire Protection (FFFP) and Emergency Firefighting (EFFS). 1. Review carryover balances to ensure they do not become excessive. Review appropriations with longer than annual timeframes and ensure that programs are accomplished on a timely basis. For example: Construction and Land Acquisition. 2. Bring forward those performances expectations and Congressional earmarks that were not accomplished in the preceding fiscal year, as appropriate. Include preliminary carryover program expectations in the Draft Final Program Budget Management Information (PBMI) Advice. Once negotiations have been completed, include the expectations in the Final PBMI along with performance expectations for current year funds. 3. Maintain the original budget line item integrity of carryover funds unless adjusted by reprogramming. 39.2 - Forest Service Fire Protection (FFFP) and Emergency Firefighting (EFFS) Appropriations. 1. Use FFFP carryover to offset EFFS severity and economic efficiency (MEL) authorizations on a National basis. Ensure that the offset is made by each Region after adjusting FFFP carryover balances for the following. a. Unaccomplished fuels target and associated funding (FFFP PF-2) to be carried over into the following fiscal year, including funding for uncompleted fuels treatment project planning. b. Regions with approved Prescribed Natural Fire (PNF) plans can carryover funds for accomplishment of PNF plans up to their annual funding need. The plans should be multi-financed, as appropriate, with the total amount equal to what can reasonably be accomplished in a normal year. 2. Apply the Regional carryover in the following sequences: a. Carryover fuels funding and target; b. Carryover PNF funding; and c. Offset the EFFS. Funds may have to be transferred from one Region to another in order to cover the total National offset of fire severity and MEL. Ensure that any FFFP funds remaining are subject to the same carryover policy as all other appropriations.