Budget Glossary Flashcards
5 Steps Federal Budget Process
- The President submits a budget request to Congress (The president sends a budget request to Congress each February for the coming fiscal year, which begins on Oct. 1)
- The House and Senate pass budget resolutions (After the president submits his or her budget request, the House Committee on the Budget and the Senate Committee on the Budget each write and vote on their own budget resolutions)
- House and Senate Appropriations subcommittees “markup” appropriations bills (The Appropriations Committees in both the House and the Senate are responsible for determining the precise levels of budget authority, or allowed spending, for all discretionary programs.)
- The House and Senate vote on appropriations bills and reconcile differences (The full House and Senate then debate and vote on appropriations bills from each of the 12 subcommittees)
- The President signs each appropriations bill and the budget becomes law (The president must sign each appropriations bill after it has passed Congress for the bill to become law. When the president has signed all 12 appropriations bills, the budget process is complete. Rarely, however, is work finished on all 12 bills by Oct. 1, the start of the new fiscal year.)
Acquisition
An acquisition cost, also referred to as the cost of acquisition, is the total cost that a company recognizes on its books for property or equipment after adjusting for discounts, incentives, closing costs and other necessary expenditures, but before sales taxes
Allocation
An amount or portion of a resource assigned to a particular recipient
Apportionment
The distribution made by OMB of the budget authority (i.e., funding) provided in the appropriation acts; such distribution may be made for specified time periods, activities, programs, projects, or any combinations of these.
Appropriation
A sum of money or total of assets devoted to a special purpose. The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization and then appropriation.
Balanced Budget
Budget in which receipts equal outlays
Baseline
Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
Budget Authority
Authority provided by law to enter into obligations that will result in outlays of Federal funds. Budget authority may be classified by the period of availability (one-year, multiyear, no-year), by the timing of congressional action (current or permanent), or by the manner of determining the amount available (definite or indefinite)
Budget Execution
The process of monitoring, adjusting, and reporting on the current year’s budget
Budget Resolution
Legislation in the form of a concurrent resolution setting forth the congressional budget. The budget resolution establishes various budget totals, divides spending totals into functional categories (e.g., transportation), and may include reconciliation instructions to designated House or Senate committees.
Commitments
are an administrative reservation of funds. Financial Management earmarks the funds for particular purpose.
Obligations
occur when a contract is signed or an order is placed. An obligation is a legal liability on the Government. It is important to note that for each appropriation the obligation period is limited; funds must be obligated prior to expiration.
Expenditures/Disbursements
Are the payment for completed work, usually based on a contractor’s invoice, and are often in the form of a check in the mail or an electronic funds transfer.
Outlays
Occur when a check is cashed by the contractor or an electronic transfer of funds is complete.
Concurrent Resolution
A legislative measure, designated “S. Con. Res.” and numbered consecutively upon introduction, generally employed to address the sentiments of both chambers, to deal with issues or matters affecting both houses, such as a concurrent budget resolution, or to create a temporary joint committee. Concurrent resolutions are not submitted to the president and thus do not have the force of law
Continuing Resolution Authority (CRA)
Legislation in the form of a joint resolution enacted by Congress, when the new fiscal year is about to begin or has begun, to provide budget authority for Federal agencies and programs to continue in operation until the regular appropriations acts are enacted./A continuing resolution provides temporary funding for federal agencies until new appropriations bills become law.
Cost Analysis
Predicts, Analyzes and Evaluates COST and SCHEDULE aspects of Weapon Systems
Cost Baseline
A cost baseline is an approved time phased plan. Once a detailed budget is developed and approved, the project manager should publish this baseline and set it as a point of comparison for actual performance progress. … The baseline budget is the tool for measuring how project changes affect our schedule and budget
Deficit (Surplus)
The amount by which outlays exceed receipts in a given fiscal period. (A surplus would be the amount by which receipts exceed outlays.)