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REPROGRAMMING AND/OR TRANSFER(S) OF BUDGETARY AND PERSONNEL RESOURCES

DAO 203-13: REPROGRAMMING AND/OR TRANSFER(S) OF BUDGETARY AND PERSONNEL RESOURCES
Number: DAO 203-13
Effective Date: 2017-09-26

SECTION 1. PURPOSE.

.01    This Order prescribes the procedures and responsibilities that apply when any organizational unit of the Department of Commerce must reprogram budgetary or personnel resources.

.02       This revision updates the Order with current information and to verify the content is still valid. The following is a summary of the changes: the title (and any subsequent references) to include the phrase “and/or Transfer(s)”; added a new paragraph in Section 4 referencing requirements if a reprogramming and/or transfer affected any IT systems; added materials provided in Section 5; updated generalized dates for OMB Circular A-11 and sections of the handbook; spelled out all acronyms for clarity; and made minor rewording to clarify statements.

 

SECTION 2.  DEFINITIONS.

.01    Organizational Units:  Includes all Departmental offices and operating units of the Department of Commerce, as defined in Department Organization Order (DOO) 1-1, “Mission and Organization of the Department.”  (The Chief Financial Officer and Assistant Secretary for Administration will administer any requirements in this Order affecting Departmental offices.)

.02    Reprogramming:  The shifting of resources within an appropriation account from one program, project, or activity to another, to use them for purposes other than those outlined in the President’s budget justifications and/or expressed as Congressional intent in the enacted appropriations bill and Committee reports. 

.03    Transfer:  The shifting of all or part of the budget authority in one appropriation or fund account to another or the shifting of budget authority within an appropriation or fund account to or from a statutory earmark within that appropriation or fund account. Agencies may transfer budget authority only as specifically authorized by law.  For accounting purposes, the nature of the transfer determines whether the transaction is treated as an expenditure or a non-expenditure transfer.  The nature of the transfer also determines whether and what statutory authority, if any, permits the transfer.  Certain transfer authorities, where applicable, may require the agency to treat the transfer as if it were a reprogramming of funds.

.04    Program, Project, or Activity:  (for the purposes of reprogramming and/or transfer) The most specific budget item identified in the Congressional conference reports and explanatory statements, Congressional committee reports, and the Congressional budget justification submission with the enacted appropriation bill.

.05    Spend/Operating Plans:  A statement of planned obligations and staffing (in terms of full-time equivalent employment) by month within a fiscal year for each program, project, or activity.

.06    Reorganization:  The establishment, consolidation, abolishment or other significant change affecting an organizational unit's status, configuration, or mission, or the authority and duties of its management and staff, as covered in DAO 200-7, “Department Organization Order Series.”

 

SECTION 3.  SPEND/OPERATING PLANS AND REPORTS.

.01    Organizational units shall develop and maintain spend/operating plans for each program, project, or activity.
.02    Spend/Operating plans will reflect the amounts and purposes outlined in the budget justifications or expressed as Congressional intent in the enacted appropriations bill and accompanying reports.

.03    Treatment of programs, projects, or activities included only in Committee reports or explanatory statements may be subject to guidance from the Office of Management and Budget (OMB).  Organizational units will consult with Office of Budget (OB) before including such programs, projects, or activities in their spend/operating plans.

.04    The Department's Budget and Program Analysis Handbook (the "Handbook") discusses further the preparation and submission schedules for spend/operating plans and reports.

SECTION 4.  NOTIFICATION REQUIREMENTS.

.01    Spend/Operating plans will reflect the amounts and purposes outlined in the budget justifications or expressed as Congressional intent in the enacted appropriations bill and accompanying reports.  Therefore, any changes to those plans constitute a reprogramming and/or transfer.  Accordingly, organizational units shall ensure that:
a.      The OB is informed in advance of all proposed changes to spend/operating plans; and  

b.      All requirements under DAO 200-7, “Department Organization Order Series,” have been met, if required; and

c.  The criteria established by the Congressional Appropriations Committees ("Appropriations Committees") for advance notification to Congress of reprogrammings have been met; and

d.      If the reprogramming and/or transfer affects any Information Technology, the organizational unit Chief Financial Officer (CFO), Budget Officer and Chief Information Officer (CIO) must conform to the rules and regulations outlined in the Federal Information Technology Acquisition and Reform Act (FITARA), and (with the exception of the Office of Inspector General) must get approval from the Departmental CIO and CFO before submission of the subject reprogramming and prior to OB coordination. 

.02    The criteria for statutorily-required advance notifications of the reprogramming of funds are enumerated in annual appropriations act.  In some cases, annual appropriations act provisions require advance Congressional notification by requiring the agency to treat a specified action as if it were a reprogramming requiring notification.  Further, the Department may, as a matter of comity with the Appropriations Committees, provide advance notification to Congress of certain activities of known interest to the Appropriations Committees.  Accordingly, organizational units shall take care to apply the current statutory criteria for reprogrammings requiring advance notification to the Congress and any guidance from OB as to advance notifications that should be provided as a matter of comity, which may be specified in the Handbook.  It shall be within the exclusive authority and discretion of OB to determine whether any given action by an organizational unit of the Department requires or otherwise should be preceded by advance Congressional notification.

.03    Organizational units shall notify OB of all changes to spend/operating plans which may require prior notification to Congress.  This must be done with sufficient time to allow OB to review the proposed reprogramming and, in particular, assess whether it requires advance notification to the Congress.  Notification to OB should occur at least sixty (60) days before the intended implementation date for the reprogramming.

 

SECTION 5.  REPROGRAMMING REVIEW AND APPROVAL PROCEDURES.

.01    When advance notification to Congress regarding a proposed reprogramming and/or transfer is required, organizational units shall prepare the materials described in the Handbook and satisfy any FITARA requirements (if applicable).  The OB will obtain the approval from OMB, submit the notification to Congress, and notify the organizational unit of the status of the reprogramming/transfer.

.02    The Appropriations Committees establish a time period within annual appropriations acts, usually fifteen (15) days, required for Congressional review of proposed reprogrammings or transfers that require advance Congressional notification.  Organizational units shall not implement reprogrammings or transfers subject to advance Congressional notification before the expiration of this time period.

.03    An organizational unit may implement a proposed reprogramming if both Houses of Congress have given explicit approval.  However, if both Houses of Congress have not given their explicit approval within established Congressional review period, OB will within fifteen (15) days after the end of the review period provide the organizational unit with written guidance as to how to proceed. Finally, it is within the exclusive authority and discretion of OB to determine whether any given action should proceed.  There are very few cases where OB and the Department will proceed without Congressional Approval.  

 

SECTION 6.  REPROGRAMMING OF PRIOR-YEAR UNEXPIRED, UNOBLIGATED BALANCES.

.01    Annual Appropriations Acts generally specify that the criteria for advance Congressional reprogramming notifications contained therein apply to the reprogramming of current year funds and unexpired no-year or multi-year funds that were appropriated in an earlier year when different criteria may have applied.

.02       In cases where the proposed reprogramming involves unobligated balances carried forward from an earlier year, and is to be implemented sufficiently after the submission of budget justifications to the Congress (usually in January or early February) to allow the usual Congressional review period (usually fifteen (15) days), the budget justifications may also serve as advance notification to the Congress.  In such cases, the budget justifications should highlight the change in planned use of prior year resources.

 

Signed by: Director, Office of Budget

Approved by: Assistant Secretary for Administration

Office of Primary Interest: Office of Budget

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Page last updated:October 4, 2017