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MANUAL
DOE M 135.1-1A
Approved: 1-9-06

DEPARTMENT OF ENERGY BUDGET EXECUTION—
FUNDS DISTRIBUTION AND CONTROL MANUAL

1. PURPOSE. As a service to all Department of Energy (DOE) elements (including
the National Nuclear Security Administration (NNSA), this Manual provides
the user with a single source for references, definitions, and procedural
requirements for distributing and controlling Department of Energy (DOE)
funds. Accordingly, the Manual provides detailed requirements to supplement
DOE O 135.1A, Budget Execution—Funds Distribution and Control, dated 1-9-06.
Paragraph 5, of DOE O 135.1A defines organizational responsibilities
pertinent to this Manual.

2. CANCELLATIONS. DOE M 135.1-1, Budget Execution Manual, dated 9-30-95.

3. APPLICABILITY.

a. Departmental Elements . Except for the exclusion in paragraph 3c, this
Manual applies to Departmental elements (Attachment 1 or online at
www.directives.doe.gov) and automatically applies to Departmental
elements created after it is issued.

The NNSA Administrator will assure that NNSA employees and contractors
comply with requirements of this Manual consistent with the requirements of
National Defense Authorization Act of 2000 and NNSA business operating
procedures.

b. DOE Contractors. Not applicable.

c. Exclusions. Bonneville Power Administration.

4. SUMMARY. This Manual is composed of five chapters that address specific budget
execution topics. The chapters are organized to provide comprehensive information
on the DOE budget execution and funds control processes and procedures, as
follows.

a. Chapter I, general information on the DOE concept of and schedule for
budget execution.

b. Chapters II through IV, processes for establishing controls and making funds
available for obligation through the base table, apportionment, and approved
funding program (AFP) and allotment processes.

c. Chapter V, the processes for reprogramming, restructuring, appropriation
transfer, congressional notification, rescission, and deferral.

5. CONTACT. Questions should be referred to the Office of Budget, Funds Distribution
and Control Team, 301-903-1651.

BY ORDER OF THE SECRETARY OF ENERGY:

CLAY SELL
Deputy Secretary
CHAPTER I. INTRODUCTION

1. GENERAL. Proper execution of the DOE budget is critical to achieving the goals
established through the planning and budget formulation processes. Accordingly, DOE
has established systems and processes to ensure compliance with public law and Office
of Management and Budget (OMB) and DOE directives during the budget execution
phase. This Manual is intended to complement budget execution policy and requirement
defined in DOE O 135.1A by addressing the principles, processes, procedures, timing,
and other relevant information related to the distribution and control of DOE funds.

2. REFERENCES. Procedures for the distribution and control of funds are based on public
laws and DOE/Federal agency (OMB, Department of Treasury and Government
Accountability Office) directives. Attachment 1 is a list of references that serve as the
basis for DOE funds control procedures.

3. DEFINITIONS. Attachment 2 is a list of definitions for terms associated with funds
distribution and control procedures.

4. SCHEDULE. The schedule for distribution and control of DOE funds is consistent from
year to year. Specific action dates, however, may vary based on the appropriations
process. Budget execution activities and dates are—

a. July—Call for estimated unobligated carryover.

b. July—Call for initial AFPs.

c. August—Submission of initial apportionment requests to OMB for estimated
unobligated carryover and/or new appropriations.

d. September—Call for mandatory obligation requirements, as needed.

e. September/October—Passage of continuing resolution or appropriation acts.

f. Quarterly—Issuance of base table.

g. Monthly—Issuance of AFPs and advice of allotments.

h. As required—Processing undistributed reductions, rescissions and/or
deferrals.

REFERENCES

The OMB apportionment and Treasury Department warrant processes are derived from Article 1,
Section 9, Clause 7, of the U.S. Constitution, which states,
“No money will be drawn from the Treasury, but in Consequence of
Appropriations made by Law.”

The following sources serve as basis for DOE budget execution requirements.

1. TITLE 31, UNITED STATES CODE (U.S.C.)—

a. Section 1301, which restricts expenditure of funds to the purposes for which
they are appropriated.

b. Sections 1341and 1342, which state that no Federal officer or employee may
authorize government obligations or expenditures in advance of or in excess
of an appropriation, unless otherwise authorized by law and that no Federal
officer or employee may accept voluntary services except as authorized by
law.

c. Section 1512, which requires that appropriations and funds available for
obligation be apportioned
.
d. Section 1514, which requires establishment of administrative funds control
procedures designed to restrict obligations against an appropriation or fund
to the amount of the apportionment or reapportionment and that the head of a
Federal agency be able to fix responsibility for the creation of any obligation
in excess of an apportionment or reapportionment.

e. Section 1517, which prohibits making or authorizing expenditures or
obligations in excess of available apportioned funds or the amount permitted
by regulations under Section 1514 and requires that violations of this section
be reported to the President and Congress.

f. Section 1535, which authorizes a Federal agency to place reimbursable
agreements for work or services with other Federal agencies.

2. OTHER PERTINENT ACTS.

a. Public Law (P.L.) 93-344, the Congressional Budget and Impoundment
Control Act of 1974—

(1) 31 U.S.C. 1102, which establishes that the fiscal year will commence on
October 1 each year; and

(2) 2 U.S.C. 681-688, which prescribes the rescission and deferral processes
and impoundment of funds.

b. P.L. 81-748, the Budget and Accounting Procedures Act of 1950 (as amended),
which defines the legal basis for the issuance of appropriation warrants by the
Secretary of the Treasury, who is responsible for the U.S. Government’s system
of central accounting and financial reporting.

c. P.L. 93-438, the Energy Reorganization Act of 1974, as amended, which cites
provisions and limitations for the use of operating expenses, expenditures for
facilities and capital equipment, new project starts, and the merger of funds
(42 U.S.C. 5821).

d. P.L. 102-377, the Energy and Water Development Appropriations Act of 1993—

(1) Section 301 (42 U.S.C. 7278), which allows the Secretary to transfer
Energy and Water Development appropriations to other Federal agencies
for the performance of work for which such appropriations were made.

(2) Section 302 (42 U.S.C. 7269a), which allows the Secretary to transfer
funds from one Energy and Water Development appropriation account to
another, provided that no appropriation is either increased or decreased
by more than 5 percent for that fiscal year.

(3) Section 303 (42 U.S.C. 7269b), which allows unexpended balances of
prior Energy and Water Development appropriations to be transferred to
current Energy and Water Development appropriation accounts for the
same activities established pursuant to subsequent Energy and Water
Development Appropriations Acts and allows transferred funds to be
merged with established accounts to be accounted for as one fund for
the same time period as originally enacted.

e. P.L. 106-65, National Nuclear Security Administration Act, as amended, which
establishes the NNSA and delineates its functions and responsibilities including
budgetary and other financial matters (50 U.S.C. 2401).

3. FEDERAL REGULATIONS AND DIRECTIVES.

a. OMB Circular No. A-11, Preparation, Submission and Execution
of the Budget, updated annually, which includes instructions on
executing apportionments, reapportionments, deferrals, proposed
and enacted rescissions, systems for administrative control of
funds, allotments, and reports on budget execution (online at
www.whitehouse.gov/omb/circulars/).

b. The Treasury Financial Manual, Volume I, Part 1, Section 2025, of
December 2004, which prescribes procedures for issuance of Treasury
appropriation warrants (online at www.fms.treas.gov/tfm/vol1/
v1p2c200.pdf).

c. Government Accountability Office Policy and Procedures Manual for
Guidance of Federal Agencies, Title 7, Fiscal Guidance, May 18, 1993,
which provides guidance for Agency fiscal processes and financial systems
(online at www.gao.gov/decisions/ppm7.pdf).

d. DOE O 481.1C, Work for Others (Non-Department of Energy Funded
Work), dated 1-24-05, which establishes requirements and responsibilities for
the performance of non-DOE funded work. (DOE directives are available
online at www.directives.doe.gov.)

e. DOE O 137.1A, Plan for Operating in the Event of a Lapse in
Appropriations, dated 8-30-99, which establishes DOE’s plan and
procedures for continuing operations during a lapse in appropriations.

f. DOE M 481.1-1A Chg 1, Reimbursable Work for Non-Federal Sponsors
Process Manual, dated 9-28-01, which describes the process for performing
non-DOE funded work.

g. DOE Accounting Handbook, which presents DOE standards, procedures, and
operational requirements in support of accounting policies, principles, and
legal requirements. Chapter 2 of the handbook establishes policy and
procedures for administrative control of funds as required in 31 U.S.C. 1514,
Administrative Division of Apportionments (online at
www.cfo.doe.gov/policy/actindex/index.html-ssi).

DEFINITIONS

1. ACCRUED COST—recognition of transactions when they occur (e.g., performance of
work or purchase of goods and services), regardless of when cash is received or paid.

2. ADMINISTRATIVE DIVISION OR SUBDIVISION OF FUNDS—distribution of an
appropriation or fund (i.e., apportionment, allotments, or suballotments). Overobligation
or overexpenditure of appropriations, apportionments, allotments, and suballotments is
always a violation of the Antideficiency Act of 1870, as amended.

3. ADVICE OF TRANSFER AUTHORIZATION (HQ F 2260.2A)—documentation issued
to inform an allottee that funds are not available for obligation because the funds are
being made available for obligation to a receiving Agency under a transfer
appropriation.

4. ALLOTTEE—an employee authorized to represent a DOE organization or another
authorized employee who has been delegated authority to incur obligations pursuant to
the terms of an allotment.

5. ALLOTMENT—an authorization by the head of a Federal agency or another authorized
employee for an employee to incur obligations within a specified amount pursuant to an
OMB apportionment or reapportionment action, in accordance with OMB Circular
No. A-11 or other statutory authority that makes funds available for obligation.
Allotments convey legal limitations and are made on HQ F 2260.2, Advice of Allotment
[internal form available from the Funds Distribution and Control Team (FDCT)].

6. APPORTIONMENT—OMB distribution of an amount available for obligation in an
appropriation or fund account. The distribution makes funds available for time periods,
programs, activities, projects, objects, or combinations thereof. The apportionment and
accompanying narrative statements or restrictions recorded in attached footnotes
constitute a legal limit on the amount of obligation that may be incurred.

7. APPROPRIATION ACT—an act of Congress, signed into law by the President, that
permits Federal agencies to incur obligations and to make payments out of the Treasury
for specified purposes. An appropriation act provides budget authority in various
accounts and usually follows enactment of authorizing legislation. Appropriations are the
most common means of providing budget authority. Limits imposed by appropriation
acts constitute separate legal limitations that will be reflected on allotments.

8. APPROPRIATION (OR FUND) ACCOUNT—an account established in the Treasury to
record appropriations and other budgetary resources provided by annual authorization
and appropriation acts and to record transactions affecting the account. Accounts are
established pursuant to appropriations and are available for incurring obligations, as
follows.

a. One-year or annual accounts are available for obligation only during a
specified fiscal year and expire at the end of that fiscal year.

b. Multiyear accounts are available for specified time in excess of one fiscal
year.

c. No-year accounts are available for an indefinite period, usually until the
objectives for which the authority was made available are attained or all
funds are expended.

9. APPROVED FUNDING PROGRAM (AFP)—a document issued to DOE organizations
setting forth the funds available for obligation and expenditure (not to exceed the amount
allotted) in each appropriation account. It specifies obligation control levels applicable
to each program, project, or activity (PPA). The AFP is a detailed breakdown of allotments
for program management purposes. The Chief Financial Officer (CFO) issues AFPs for
operating expenses, construction, and reimbursable work monthly.

10. AUTHORIZATION ACT—enacted legislation to establish or continue the legal
authority to operate a Federal program or agency either indefinitely or for a specific
period of time. Authorization acts do not typically provide budget authority to finance
program activities.

11. BASE TABLE (CONGRESSIONAL BASE TABLE)—a list of available budgetary
resources at a level of detail consistent with congressional requirements (i.e., tables
within conference reports, etc); the controlling document that provides the basis for the
DOE allotment and AFP systems. The base table is updated and released quarterly to
congressional committees and OMB. The Department maintains an internal base table,
which includes detailed information for internal management purposes such as obligation
authority by Assistant Secretary and budgeting and reporting codes, recovery of prior
year obligations, reimbursable work, and administrative limitations DOE has placed on
the use or availability of funds.

12. BUDGET AND REPORTING (B&R) CLASSIFICATION CODES—the coding
structure that parallels approved DOE PPAs. The codes are used for executing the
budget; reporting actual obligations, costs, and revenues; and controlling and measuring
actual versus budgeted performance.

13. BUDGETARY RESOURCE—the forms of authority that allow a Federal agency to incur
obligations. Budgetary resources include—

a. new appropriations;

b. unobligated balances from prior unexpired appropriations;

c. spending authority from offsetting collections;

d. appropriation transfers and refunds;

e. borrowing authority;

f. reimbursable agreements granting funds from another Agency; and

g. cash advances from non-Federal entities.

14. BUDGET AUTHORITY—authorization to obligate Government funds for immediate or
future outlay. Basic forms of budget authority are appropriations, contract authority,
borrowing authority, and authority to obligate and expend offsetting receipts and
collections. Budget authority may be classified by—

a. period of availability (one-year, multiple-year, no-year);

b. timing of congressional action (current or permanent);

c. manner of determining the amount (definite or indefinite); or

d. availability for new obligations.

15. BUDGET REFERENCE NUMBER—a three-digit budget and reporting code used in
AFPs to identify capital equipment, general plant projects (GPPs), accelerator
improvement projects, or general purpose equipment and to record obligations and costs
in the accounting system.

16. BUDGET OUTLAYS—checks, letters-of-credit, and other forms of disbursement or
advance from appropriated funds; the net total of refunds and reimbursements. Total
budget outlay is the sum of the outlays from appropriations and funds, minus offsetting
receipts. The terms expenditure and net disbursement are frequently used
interchangeably with outlay.

17. CONGRESSIONAL NOTIFICATION—formal or informal communication of changes
in program execution or unforeseen events that do not require formal reprogramming but
may affect areas known to be of interest or concern to Congress. Congressional
notification is intended to ensure that the appropriate committees are promptly and fully
informed of changes in program activities. Information may be conveyed in written
correspondence or informal discussion with the appropriate committees.

18. CONTINUING RESOLUTION—legislation enacted by Congress to provide budget
authority for specific ongoing activities (i.e., no new starts) for a specific period of time
when the regular annual appropriation has not been enacted by the beginning of the fiscal
year. A continuing resolution specifies a maximum rate at which DOE may incur
obligations. The levels specified may be current rate, not to exceed current rate, up to
the lower of the amounts provided in appropriation bills, or any other basis.

19. CONTRACT AUTHORITY—a form of budget authority under which contracts or other
obligations may be incurred in advance of appropriations or receipts. Because contract
authority does not provide funds to pay obligations, a subsequent appropriation is
required or receipt collections must be used to liquidate obligations. Appropriations to
liquidate contract authority are not considered budget authority because the funds are not
available for obligation. Section 401 of the Congressional Budget and Impoundment
Control Act, with few exceptions, limits new contract authority to the extent or amount
provided by appropriation acts.

20. DEFERRAL—an executive or congressional action that temporarily withholds or delays
the obligation or expenditure of budget authority. Executive deferral may be initiated to
provide for contingencies, to achieve savings or greater efficiency of operations, or as
specifically provided by law. Budget authority may not be deferred to set forth a policy
in lieu of one established by law.

21. DIVISION CODE—a convention used in the AFP process to group functionally related
budget and reporting classifications that identify the Headquarters organization
responsible for developing, managing, and revising AFP data for the obligation control
levels in the DOE base table.

22. GENERAL PLANT PROJECT (GPP)—a minor new program-specific or general
construction project that has a total estimated cost not exceeding the congressional
authorization of $5,000,000 per project. GPPs are necessary to construct or adapt
facilities to new or improved production techniques; to affect economy of operations; and
to reduce or eliminate health, fire, and security hazards.

23. LEGAL LIMITATION—a restriction on the use or availability of funds based on public
law (appropriation acts) and apportionments from OMB. (See 31 U.S.C. 1514, and OMB
Circular No. A-11). Legal limitations are identified in allotment documents.

24. MAJOR ITEM OF EQUIPMENT (MIE)—capital equipment or automated information
system components with a total estimated purchase value of $2,000,000 or more,
including costs that are capitalized and not related to construction.

NOTE: The determining factor for a major item of equipment is estimated purchase
value regardless of whether the actual method of acquisition is purchase, lease,
or a combination of the two. A leased item is considered a major item of
equipment if the estimated purchase value is $2,000,000 or more even if the
annual lease cost is less than $2,000,000.

a. For new items, the purchase equivalent value is based on list, anticipated, or
actual purchase price.

b. For used items, items DOE reassigns, Government excess, or exchange/sale
items, the purchase equivalent value is based on current best estimate market
value.

25. NEW START—initiation or resumption of a program, project, or activity (PPA) that was
not authorized or funded by Congress in the preceding fiscal year. The term or issue of
new starts arises when the Federal government operates under a continuing resolution.
Questions to ask when assessing whether a PPA meets the definition of a new start are as
follows.

a. Was funding requested and/or appropriated for the PPA in the preceding fiscal
year? If no, it is a new start; if yes, it is not a new start.

b. What level of detail in both the congressional budget justification and the
appropriations committee reports is the PPA budgeted for and appropriated? For
example, a line-item construction project is budgeted for and appropriated
separately (a new start); a general plant project is not. Because funding requests
for general plant projects are consolidated and appropriated in a lump sum, they
are considered part of an ongoing minor construction program.

c. What is the estimated cost of the PPA? For some PPAs, the cost estimate will
help determine whether it should be budgeted as a separate project (and treated
as a new start) or funded within an ongoing program. GPP and major items of
equipment (MIEs) are two good examples.

(1) If the estimated cost of a proposed construction project is less than
$5,000,000, it is budgeted for as a GPP and grouped with other new and
ongoing GPPs as a lump sum request (not a new start).

(2) If the estimated cost is above $5,000,000, the project is budgeted for as
an individual line-item construction project and considered a new start.

(3) Proposed items of capital equipment with estimated cost exceeding
$2,000,000 are considered MIEs and must be budgeted for separately
and are considered new starts.

(4) Capital equipment of estimated cost less than $2,000,000 is aggregated
and budgeted for as a lump sum amount and treated as on ongoing
program.

d. For more information on the level of detail required for requesting and justifying
funding for a particular PPA, refer to the DOE Budget Formulation Handbook.

26. OBLIGATIONAL AUTHORITY—the sum total of budget authority provided for a
given fiscal year, unobligated balances from prior years that remain available for
obligation, current year recovery of prior year obligations from unexpired appropriations,
appropriation transfers, and amounts authorized to be credited to the appropriation (i.e.,
offsetting collections).

27. OBLIGATION CONTROL LEVEL—as specified on congressional and internal base
tables, the level at which obligations are to be controlled; an administrative upper limit
placed on obligations or expenditures that may be incurred for a specific program,
project, or activity. Obligation control levels are identified in base tables and are
derived from tables accompanying conference reports and from internal controls
established for more effective program management. This type of restriction is
subject to DOE (rather than statutory) rules and penalties. Obligation control
levels can be imposed by Congress, OMB, or internal DOE management. Levels
specified in AFPs may not be exceeded. (See the DOE Accounting Handbook, Chapter 2,
Administrative Control of Funds, for information on penalties for exceeding obligation
control levels.)

28. OPERATING EXPENSE FUNDING—a funding category applied to operations and
maintenance activities and equipment purchases. Operating expenses include general
plant projects, accelerator improvement projects, and capital equipment (not related to
construction). Operating expense does not include line-item construction projects. (For
additional information, see the DOE Accounting Handbook.)

29. PLANT AND CAPITAL EQUIPMENT—real and personal property owned by DOE and
recorded in the completed plant accounts; property that meets monetary and service life
criteria for capitalization (i.e., service life of 2 years or more and cost of $25,000 or
more), regardless of the appropriation or fund charged. Group purchases of similar items
that cost less per item than $25,000 but as a group constitute a significant investment, are
considered capitalized property (e.g., automated information technology systems or
components). For additional details and exclusions, see Chapter 10 of the DOE
Accounting Handbook.

30. PROGRAM, PROJECT, OR ACTIVITY (PPA)—a general term applied to refer to all
program activities funded by congress through the annual appropriation process.
Typically, congressionally funded major programs and projects are delineated in the
detailed tables within the conference reports accompanying enacted appropriations bills
and constitute obligational control levels for execution.

a. These PPAs are also reflected on the DOE congressional base table. Congress
may elect to appropriate, authorize, or otherwise control programmatic activities
at a higher or lower level of detail. For example, within the Science
appropriation, the High Energy Physics program has multiple, operating expense
PPAs or subprograms while the Biological and Environmental Research program
has only one.

b. PPAs also refer to the myriad of detailed program activities funded within the
major programs and projects reflected in the conference reports. These activities
are delineated in the detailed budget submission justifications as presented to and
subsequently adjusted by congress. For example, House Energy and Water
Development subcommittee guidance on reprogramming uses PPA when
referring to activities described in the Department’s detailed budget submission
that are at lower levels of detail. In this context, PPA refers to those funded
activities below the major programs and projects delineated in the conference
report and congressional base table.

31. REAPPORTIONMENT—revision of an appropriation or fund account with required
OMB approval. Reapportionment requests are submitted when changes in amounts
available, program requirements, or cost factors make reapportionment necessary.

32. RECOVERY OF PRIOR-YEAR OBLIGATIONS—cancellation or downward
adjustment of contract amounts to make obligation authority available. Prior year
recoveries are available only to the extent that the amounts are reapportioned, approved
for release, and reallotted. (See the DOE Accounting Handbook, Chapter 5, Accounting
for Obligations.)

33. REIMBURSEMENTS—spending authority from offsetting collections; amounts the
Government receives for commodities sold or services furnished either to the public or to
another Government account authorized by law to be credited directly to a specific
appropriation or fund account. These amounts are deducted from total obligations
incurred (and outlays) in determining net obligation (and outlay) for such accounts. See
the DOE Accounting Handbook, Chapter 13, Reimbursable Work, Revenues, and Other
Collections.

34. REIMBURSABLE WORK—work or services performed or to be performed for a
Federal or non-Federal customer. DOE is compensated by reimbursement, which may be
credited as authorized by law to the appropriation or to a DOE fund account that incurred
the costs. Reimbursable work for other Federal agencies is typically authorized under the
Economy Act of 1932, as amended. Reimbursable work for non-Federal entities must be
specifically authorized by Congress through legislation (e.g., Atomic Energy Act
of 1954, Department of Energy Organization Act of 1977, Intergovernmental
Cooperation Act of 1968, Contributed Funds Act of 1921, and Stevenson-Wydler
Technology Innovation Act of 1980, as amended).

35. REIMBURSABLE BUDGETARY RESOURCES—funds from reimbursable orders
received and supported by valid obligations against current appropriation accounts for
Federal customers and advance payments received for unfilled orders from non-Federal
customers.

36. REIMBURSABLE OBLIGATION AUTHORITY—authorization to incur obligations in
accomplishing reimbursable work if a budgetary resource (a reimbursable agreement
from a Federal customer or an advance from a non-Federal customer) is available.
Reimbursable obligation authority can be acquired only by obtaining an allotment
through the DOE CFO using the AFP process.

37. REPROGRAMMING—the use of funds from an appropriation account for purposes
other than those contemplated by Congress during appropriation action. A
reprogramming action will be initiated to address any departure from the obligational
control levels delineated in the base table and amplified in Congressional reports or any
significant programmatic departure from a program, project, or activity described in the
Congressional budget narrative justification and testimony. Additional information
concerning reprogramming is in Chapter V of this Manual.

38. RESCISSION—legislative action that permanently cancels new budget authority or the
availability of unobligated balances of budget authority before the authority would have
automatically expired. Budget authority proposed for rescission must be held in DOE
reserves pending a decision on the proposed rescission.

39. RESTRUCTURING—using funds as originally intended in the congressional budget
justification but reporting the use of funds using form and detail different from that used
when the funds were proposed by the President and appropriated by Congress. Any
format change to the DOE base table is considered restructuring that requires formal
concurrence from OMB and Congress.

40. SUBALLOTMENT—an allotment subdivision that restricts authority to incur obligations
within a specified amount of the total amount allotted. Suballotments can ensure strict
compliance with statutory limitations/restrictions imposed by Congress and OMB and
critical administrative limitations imposed by the Department. Applicable suballotments
are identified in the instruction section of the Advice of Allotment and dollar amount will
be specified either by direct citation on the allotment or by explicit reference to a
program, project, or activity in the associated AFP.

41. SUPPLEMENTAL APPROPRIATION—funds in addition to the annual appropriation
act. Supplemental appropriations may provide budget authority beyond original amounts
appropriated or may propose change to appropriation language that does not affect the
amounts previously appropriated. Supplemental appropriations support PPAs and new
programs authorized after the date of the original appropriations act for which the
funding need is too urgent to be postponed until the next regular appropriation.

42. TOTAL ESTIMATED COST—for a construction project, the capital cost of land, and
land rights; engineering, design, and inspection; direct and indirect construction; and
initial equipment necessary to place the facility in operation.

43. TOTAL OBLIGATION AUTHORITY—all new budget authority plus unexpired,
unobligated balances brought forward from previous years, recoveries, or prior year
obligations; appropriation transfers authorized by law; and collections authorized to be
credited directly to a specific account or fund during the fiscal year (e.g., reimbursable
work and appropriation refunds).

44. TRANSFER APPROPRIATION (ALLOCATION) ACCOUNT—an account established
to receive and disburse allocations from another appropriation. Because these allocations
and transfers are not adjustments to budget authority, they do not require reapportionment
but do require non-expenditure transfer authorization from the Department of Treasury.
Departmental policy is to request and perform work on a reimbursable basis rather than
issue or receive allocation accounts. An Agency receiving an allocation account must
report obligations and expenses to the issuing Agency for reporting under the original
appropriation. These accounts are identified according to numbering used in the original
appropriation with the receiving Agency’s prefix added. See the DOE Accounting
Handbook, Chapter 3, for additional information.

45. TRANSFER BETWEEN APPROPRIATION ACCOUNTS (APPROPRIATION
TRANSFER)—permanent withdrawal of budget authority or balances from one
appropriation account to another. An appropriation transfer can be made only when
authority to do so is specifically provided in applicable legislation. These transfers also
require submitting to OMB a reapportionment request, Standard Form (SF) 132,
Apportionment and Reapportionment Schedule and SF 1151, Request for
Non-Expenditure Transfer Authorization to Department of Treasury.

46. TRUST FUNDS—funds collected from specific sources to be used for specific purposes
and programs according to the terms of a trust agreement or statute. Trust fund receipts
and expenditures are recorded against specific account symbols. Statutory authority is
required to establish and use a trust fund.

47. UNEXPENDED (UNCOSTED) BALANCES—budget authority obligated but not costed
representing a portion of contract obligations for goods and services that have not yet
been received. Unexpended obligations are part of doing business and play a key role in
budget formulation and execution cycles supporting continuity of operations at the
beginning of the year. Unexpended balances must be reviewed thoroughly to ensure that
they remain at levels consistent with sound fiscal management. See the DOE Accounting
Handbook, Chapter 5.

48. UNOBLIGATED BALANCE—the portion of budget authority that has not yet been
obligated. In one-year or annual accounts, the unobligated balance expires (ceases to be
available for incurring new obligations) at the end of the fiscal year unless valid
obligation adjustments exist for that fiscal year. In multiyear accounts, unobligated
balances may be carried forward and remain available for obligation for a specified
period. In no-year accounts, unobligated balances are carried forward and available for
obligation indefinitely until specifically rescinded by law or until the purposes for the
funds appropriated have been accomplished. Unobligated balances can be derived from
recovery of current or prior year obligations.

49. WARRANT—an official Treasury document that establishes by Treasury account or
fund symbol the amount of funds appropriated by Congress and the period the funds will
be available. The warrant is formal authorization to withdraw funds from the U.S.
Treasury. DOE expenditures are drawn against these specific appropriation or fund
accounts to liquidate obligations incurred.

CHAPTER II. BASE TABLE PROCESS AND PROCEDURES

1. GENERAL.

a. The base table displays all obligation authority available to DOE, including
the NNSA, by appropriation and by PPA within each appropriation.
Obligations of funds must not exceed the total of the appropriation,
apportionment, reapportionment, or allotment (31 U.S.C. 1341, 1514,
and 1517).

b. The base table is a tool to assist in controlling obligation authority by setting
forth individual totals within each appropriation. These obligation control
levels specify the use of funds as intended by Congress. The table is based
on the appropriation legislation and detailed tables reflecting committee
allocations by program, project, activity, and accompanying conference
reports. Administrative limits on the use or availability of funds may be
reflected in the content and level of detail in the internal base table.

c. The base table is the controlling document for the allotment and AFP system.
All funds distributed throughout DOE are limited by the amounts assigned in
the base table. See Attachment II-1 for an overview of the relationship of the
base table to each phase of budget execution and Attachment II-2 for an
overview of funding availability controls.

d. Controls are divided into legal and administrative limitations that may be
imposed as part of the Federal budget process (by Congress, OMB, and
DOE). DOE controls are maintained through the allotment and AFP
processes.

e. The Department submits the base table to Congress and OMB quarterly via
the Internet and makes copies of current and previous base tables available
through the Office of the CFO home page at www.mbe.doe.gov or directly at
www.mbe.doe.gov/budget/basetbl/index.htm. The base table also is
available to Departmental organizations via the Office of Budget Funds
Distribution System (FDS).

f. In addition to the congressional base table, the Department also maintains its
own detailed internal base table that includes recovery of prior year
obligations, reimbursable obligation authority, budget and reporting
classification codes, and internal controls requested by the program office or
imposed by senior management. This level of control/detail assists
management in the oversight, control, and execution of DOE programs.

2. TIMING.

a. The base table is established upon enactment of appropriation legislation. Before
the start of the fiscal year, the table is developed based on information from
conference reports and appropriation legislation. In the absence of a conference
report or legislation, the base table is developed using the latest and most
conservative information available from Congress for the new fiscal year (i.e., the
lower of amounts by PPA as reflected in House and Senate reports).

b. When actual, year-end accounting information is available, the base table is
updated with unobligated carryover balances for no-year or unexpired multiyear
funds.

c. The base table may be changed at any time during the fiscal year to reflect
approved reprogramming, restructuring, and deferral; authorized appropriation
transfers; and enacted supplemental appropriations and rescissions.

3. BASE TABLE DEVELOPMENT.

a. Base table development begins with receipt of the initial House markup of the
President’s budget. PPAs in the table accompanying the House report become the
obligation control levels for the initial base table. PPAs listed on the base table
are updated whenever additional congressional action changes funding for line
items as they originally appeared in the congressional budget submission.

b. From January through June, the CFO prepares the budget and reporting
classification structure for the upcoming fiscal year. After June, the structure will
be changed only to reflect final congressional action. This procedure ensures a
one-to-one correlation between budget and reporting classifications and base
table line items.

c. Upon receipt of the conference report from Congress, final PPA adjustments and
dollar amounts are entered into the base table. Subsequent requests for change to
the base table require compliance with reprogramming, restructuring, and
appropriation transfer procedures (See Chapter V of this Manual).

d. The initial base table for the fiscal year, which includes information necessary to
develop initial AFPs for the ensuing fiscal year, is included in the call for initial
AFP and allotment data before the beginning of the fiscal year.

4. BASE TABLE MAINTENANCE. The base table reflecting congressional control levels as
they appeared in the conference report remains constant until subsequent actions
approved during the fiscal year effect a change resulting from reprogramming,
restructuring, appropriation transfers, deferrals, or supplemental/rescission
appropriations.

a. After Congress has completed action on a formal request for reprogramming,
restructuring, or appropriation transfer, DOE receives either verbal or written
responses from committees. Based on that information, the Office of Budget
updates the base table to reflect the change in budget authority by PPA. The
appropriation act is the document that authorizes change to the base table for
supplemental appropriations.

b. The base table is updated with unobligated carryover balances for no-year or
unexpired multiyear funds when year-end accounting information is certified
and made available by PPA.

c. Attachment II-3 is an example of the base table as it is maintained

NOTE: A separate column is included for recording reprogramming, structure
and supplemental appropriations changes. Appropriation transfers,
re-appropriations, and rescissions are shown in the supplemental
column.

d. Attachment II-4 defines the base table columns and types of entries recorded.

CONGRESSIONAL BASE TABLE COLUMN DEFINITIONS

Entries are to identify the appropriation account and associated obligation control level as
reflected in conference report tables accompanying enacted appropriation legislation.

Column 1—New Obligation Authority.

Authority appropriated for the current fiscal year by the Energy and Water Development,
Department of Interior, and related Agencies’ appropriations.

Column 2—Structure/Other Changes Authority.

Changes for funds that are being applied as originally intended in the budget justification but
are reported using detail different from the detail used when the funds were appropriated and
in the conference report table. DOE-initiated structure changes during the current execution
year are relatively rare and typically necessitate submission of a formal request to OMB and
Congress. (See Chapter V of this Manual.)

Other Changes include authorized realignment within a PPA (e.g. Science Program Direction,
Basic Energy Sciences, and High Energy Physics); distribution of bottom line reductions (use
of prior year balances or general reductions); or other amounts identified as offsets such as
security charges for reimbursable work.

Column 3—Supplemental Change Authority.

Changes enacted in addition to the regular appropriation act such as supplemental
appropriations, reappropriations, appropriation refunds, rescissions, and appropriation
transfers (i.e. increases and decreases resulting from transfers of budget authority between
Departmental appropriations and to or from other Federal agency appropriations).

Column 4—Reprogramming Change Authority.

Changes that reflect realignment of funds between obligation control levels within an
appropriation account and typically necessitate submission of formal reprogramming actions.
Congressional concurrence is necessary before realignment of funds between control levels
except when exercising internal or limited reprogramming authority specifically provided by
Congress in law or report language.

Column 5—Adjusted New Obligational Authority.

New obligation authority or funds available for obligation and changes reflected in
columns 1-4.

Column 6—Unobligated Carryover as of 9/30/200X.

As of the end of previous fiscal year (September 30), unobligated balances that are available
for obligation in the current year. Unobligated carryover balances can be available only from
multiyear or no-year appropriation accounts.

Column 7—Total Obligation Authority.

Obligation authority available to the Department consisting of the adjusted new obligational
authority plus unobligated balances brought forward from the previous fiscal year.

CHAPTER III. OMB APPORTIONMENT AND TREASURY WARRANT PROCESSES

1. GENERAL.

a. The OMB apportionment process makes funds available to Federal agencies
for obligation and expenditure. The process is structured to prevent the
obligation or expenditure of funds in a manner that would require deficiency
or supplemental appropriations and to achieve the most effective and
economical available funds.

b. The Treasury warrant provides formal authorization to withdraw funds from
the Treasury after Congress has enacted the appropriation. For the
Department of the Treasury, the warrants establish the funding amounts and
periods of availability in an appropriation or fund account. DOE
expenditures are drawn against specific appropriation accounts to liquidate
obligations incurred.

2. TIMING.

a. Apportionment requests that do not result from current action by Congress
for the ensuing fiscal year (e.g., estimated unobligated carryover and
reimbursable work) must be submitted to OMB by August 21 each year.

b. When the budgetary resources for an account depend on passage of
appropriation acts, initial apportionment requests must be submitted to OMB
by August 21 or within 10 calendar days after the appropriation legislation
has been enacted, whichever is later.

c. During the fiscal year, reapportionment requests must be submitted within
10 calendar days after enactment of an appropriation or other substantive act
that provides budget authority after the initial apportionment for the year has
been made or as soon as a change in a previous apportionment becomes
necessary.

d. For an enacted rescission, reapportionment request must be submitted within
5 calendar days of passage.

e. Requests for reapportionment of unobligated balances are submitted once
reconciliation with the final SF 133, Report on Budget Execution and
Budgetary Resources, and Treasury Fiscal Service (TFS) Form 2108, Year
End Closing Statement, has been completed.

f. When appropriation legislation is enacted, the Department of the Treasury
automatically prepares a warrant to cover the full amount of budget authority
and period of availability provided by the appropriation. For pro-rata or
across the board rescissions, Treasury requests supporting documentation
from Agencies to prepare credit warrants. See the Treasury Financial
Manual for details.

3. APPORTIONMENT PROCESS.

a. Overview.

(1) Apportionments are requested for the following types of obligation
authority as specified in OMB Circular No. A-11.

(a) Budget authority.

(b) Appropriation transfers of budget authority.

(d) Reimbursements and other offsetting collections.

(e) Recovery of prior year obligations.

(f) Restorations and write-offs.

(g) Appropriation refunds.

These must be apportioned by OMB prior to obligation whether the
authority is new or a carryover of unexpired authority from a prior fiscal
year.

(2) Types of apportionments.

(a) Category A, apportionment by fiscal quarter.

(b) Category B, apportionment by specific PPAs, or a combination
thereof.

These categories constitute legal limitations on the apportionment.

(3) For no-year appropriations, and unexpired multi-year appropriations,
unobligated carryover balances must be apportioned annually because
apportionments cover only 1 fiscal year. In no circumstance will an
apportionment cover a period longer than 1 fiscal year. Unobligated
balances may be apportioned for periods of less than 1 fiscal year;
however, those balances remain available for obligation through the end
of the fiscal year. For example, the unobligated balance of funds
apportioned for the first quarter is available for obligation in subsequent
quarters of the same fiscal year without reapportionment.

b. Request for Apportionment and Reapportionment.

(1) All requests to OMB for apportionment and reapportionment are made by
the Office of Budget Funds Distribution and Control Team (FDCT) on
SF 132, Apportionment and Reapportionment Schedule
(Attachment III-1).

NOTE: Initial action by OMB is an apportionment; subsequent actions on
the same appropriation are considered reapportionments. (See
OMB Circular No. A-11 on completing SF 132).

(2) Requests for apportionment and reapportionment are made at the level
of the appropriation or fund account unless OMB has specified
otherwise. For unobligated carryover, supporting detail by PPA may be
submitted along with the request.

(3) After OMB completes action on a request for apportionment or
reapportionment, the SF 132 is returned to the FDCT, which distributes
copies as required within the Office of the CFO and notifies DOE
organizations of the actions taken.

(4) OMB approval of the SF 132 constitutes the authority to obligate funds in
accordance with the apportionment schedule. Amounts apportioned by
OMB and indicated on the SF 132 are legal limitations on funds
availability or ceilings on the amount that may be obligated pursuant to
31 U.S.C. 1512. For example, if OMB incorporates program
identification into the apportionment schedule through category A, B, C,
or a narrative footnote, the amount identified is a legal limit on the use of
funds for that program.

(5) Reapportionment may be required for any of the following.

(a) New obligation authority provided in appropriation acts when
unobligated carryover for the same appropriation was
previously apportioned.

(b) Supplemental appropriations.

(d) Rescissions initiated by Congress and enacted into law.

(e) Release of deferrals or denial of rescissions proposed by the
administration. (See Chapter V of this Manual.)

(f) Adjustments to reimbursable work authority or other offsetting
collections.

For exceptions to the above list, refer to OMB Circular No. A-11.

c. Apportionment of Appropriation Transfers.

(1) An appropriation transfer may be executed only if an appropriation act
or other legislation specifically grants authority to do so.

(2) An appropriation transfer requires reapportionment by OMB and a
Non-expenditure Transfer Authorization (SF 1151) approved by
Treasury (see Attachment III-2) to transfer the funds on Treasury
records.

(3) All appropriation transfers require reapportionment of the appropriations
from which and to which funds are transferred. The procedure for
obtaining a reapportionment from OMB for an appropriation transfer is
the same as those described in paragraph 3b, above. The
reapportionmentprocess is initiated following congressional approval of
the transfer.

d. Apportionment of Unobligated Balances.

(1) OMB regulations require Agencies to request apportionment of estimated
unobligated balances before the beginning of the new fiscal year.
NOTE: It is extremely important to have estimated unobligated balances
apportioned by OMB before the beginning of a fiscal year if
DOE is required to use certified unobligated balances to operate
in the absence of new appropriations.

(2) Unobligated funds that are not included in the estimates required to be
submitted before the beginning of the fiscal year (from the program
organizations) will not be submitted for apportionment until actual
year-end accounting data are available in November or December and
as a result will not be available for obligation until January or February.

(3) In early July, the Office of Budget issues a call to Headquarters AFP
contacts for estimates of year-end unobligated balances for field and
Headquarters programs. When estimates have been submitted, the
FDCT adds unobligated balances held in DOE’s established reserves
(e.g., recovery of prior year obligations) and uses the resulting total to
prepare the reapportionment request for estimated unobligated balances.

(4) Once actual unobligated carryover balances are determined at the
appropriation account level, a reapportionment request must be submitted
for OMB approval. Amounts in those submissions must agree with data
recorded in the final SF-133, Report on Budget Execution and Budgetary
Resources, submitted to OMB and TFS Form 2108, submitted to Treasury
for the prior fiscal year.

(5) FDCT and the Office of Financial Control and Reporting are responsible
for reconciling the data.

e. Apportionment under a Continuing Resolution.

(1) OMB issues a bulletin to apportion amounts made available by continuing
resolutions that would otherwise automatically expire before the end of
the fiscal year.

(2) DOE may request a written (advance) apportionment if amounts
automatically apportioned are deemed inadequate or if OMB or DOE
deems a written apportionment to be necessary.

(3) When appropriation legislation is enacted, apportionments that are
requested for the total amount of the appropriation will include funds
previously apportioned under a continuing resolution.

(4) Under an automatic OMB apportionment, the amount available during the
period covered by the continuing resolution is either a prorated level (that
reflects a constant rate of obligation over the period of availability
specified by the continuing resolution) or the seasonal rate of obligation,
whichever is less.

(5) All footnotes and other conditions on prior fiscal year final
apportionments automatically remain in effect. A written apportionment
must be submitted and approved by OMB to modify footnotes or
conditions.

f. Apportionment of Resources from Recovery of Prior Year Obligations.

(1) Budgetary resources that become available because of current year
deobligation of prior year obligations made under a no-year appropriation
or an unexpired multi-year appropriation are automatically withdrawn
from allottees when the accounting entries are made.

(2) Allottees must submit justification and receive approval before funds will
be realloted from recovery of prior year obligations and associated
withdrawal from the allotment.

(3) Apportionment for recovery of prior year obligations for the current fiscal
year is reflected as an estimate or anticipated amount of $2,000,000 on
line 4A of the SF 132, anticipated recovery of prior year obligations, or
as an automatic apportionment through a footnote.

(4) Reapportionment for recoveries in excess of $2,000,000 in a fiscal year
must be requested using a written SF 132. See the DOE Accounting
Handbook, Chapter 5, for additional information.

4. TREASURY APPROPRIATION WARRANT PROCESS.

a. In most circumstances, appropriation warrants are prepared by the
Department of Treasury automatically upon passage of appropriation
legislation. Attachment III-3 is an example of a TFS 6200 Department of the
Treasury Appropriation Warrant. FDCT accesses the Department of
Treasury’s online U.S. Government-wide Accounting and Reporting System
(GWA) to monitor and review the status of warrants to verify that—

(1) both the Treasury warrant and the OMB apportionment for the same
legislation are reconcilable;

(2) the appropriation symbol and title are the same on both documents; and

(3) the legislation cited is the same on both documents.

b. Treasury warrants also may be issued to reduce the funds authorized to be
withdrawn from accounts maintained by Treasury. These credit warrants are
issued in accordance with enacted rescissions and appropriation offsets.

CHAPTER IV. APPROVED FUNDING PROGRAM AND ALLOTMENT PROCESSES

1. GENERAL.

a. The AFP and allotment processes provide the system for distributing DOE
obligation authority for the fiscal year. The process is as follows.

(1) The President submits the DOE budget to Congress;

(2) Congress appropriates the funds; and

(3) OMB apportions the funds to DOE.

b. At each stage, specific controls, ceilings, and limitations are imposed on the use
of the funds. The allotment and AFP system is used to establish and maintain
these controls at the DOE level to ensure that legal, congressional, OMB, and
internal ceilings and limitations are not exceeded. Attachment IV-1 is a diagram
of this relationship.

c. The allotment process is the means by which DOE officials are delegated legal
authority to incur obligations within the amount specified on an allotment. The
official HQ F 2260.2 Advice of Allotment transmits obligation authority and
records legal limits on the use of the funds. The allotment is the formal
mechanism by which DOE assigns responsibility [31 U.S.C. 1514 (the
Antideficiency Act)].

d. Through the AFP process, funding authority is distributed at a level of detail that
maintains proper control while also achieving optimal efficiency in program
management. AFP documents provide detailed breakdown of the total amount of
obligation authority on the Advice of Allotment by budget and reporting code.
Generally, the level of funding detail in the AFP will be the same as is used to
record and report obligations and expenditures incurred against the total
obligation authority allotted. However, AFPs may be established at higher levels
as deemed appropriate for program management purposes by the responsible
headquarters program office. The AFP provides the following.

(1) The basis for the annual execution of programs, projects, or activities
(PPAs) as approved by Congress.

(2) Programmatic detail about funds allotted to organizations responsible for
the execution of PPAs.

(3) Obligation controls to ensure that funds are not distributed in excess of
the limits recorded in the base table (see Chapter II of this Manual).

e. The AFP obligation control ceiling for each PPA includes legal authority to
incur obligations on behalf of DOE. In the budget process, the AFP is
financial guidance and the allotment is financial authorization.

f. The AFP provides the basis for preparing the allotment. In general, the
amount shown on the Advice of Allotment for each appropriation account is
equal to the program funding total in the AFP. Allotments and AFPs are
issued concurrently.

g. During a continuing resolution or at the beginning of a fiscal year when
general reductions, use of prior year balance reductions, or rescissions have
not been applied to specific PPAs in the AFPs, amounts allotted are less than
the total amounts reflected in the AFP funding detail.

h. While operating under a continuing resolution, the allottee may incur
obligations against AFP lines as long as obligations do not exceed either the
allotment or the funding amount recorded in the AFP for each PPA. The
CFO cannot allot new obligational authority in excess of the amount
available under the continuing resolution.

2. TIMING.

a. The AFP and allotment processes begin in July each year with the call to
heads of DOE organizations for initial AFP and allotment data for the
coming fiscal year.

b. If conference agreement has not been reached, guidance included in the call
is based on the most conservative funding allocations available from the
House or Senate committees. The base table provided with the initial call for
AFPs reflects, by PPA, either the conference mark if available or the lower
of the marks provided in the House or Senate committees’ action.

c. In early July, the annual call for estimated unobligated carryover balances for
unexpired appropriations is issued to the heads of Headquarters elements.

d. If there is neither an enacted appropriation nor a continuing resolution by
October 1, only actual, certified unobligated balances of unexpired
appropriations, up to the amount OMB has apportioned, will be available for
potential allotment and obligation.
e. The first AFP for a new fiscal year is issued to Departmental elements in
mid-September in advance of the fiscal year to facilitate planning for
initiating operations. These AFPs will be dated October 1.

f. Allotments reflecting new direct funding are issued on or about October 1
upon enactment of either an appropriations bill or a continuing resolution.
These initial allotments also may include obligation authority for
reimbursable work and/or actual certified unobligated carryover that has
been approved for inclusion in the AFP. Issuance of certified unobligated
carryover, reimbursable work, and other types of obligational authorities is
subject to receipt of an OMB-approved SF-132, which includes reimbursable
work and estimated unobligated carryover.

g. During the fiscal year, the allotment and AFP processes follow an
established monthly cycle (see example in Attachment IV-2).

(1) Initial allotments and AFPs are issued at the beginning of the fiscal year.

(2) Changes are processed in accordance with the monthly schedule
established by FDCT.

h. Changes are made whenever a revision to an AFP necessitates an increase or
decrease in total obligation authority. If, however, an Advice of Allotment
or AFP change is required before the next regularly scheduled monthly AFP
cycle, a formal request must be submitted from the applicable headquarters
office to the Director, Office of Budget. The Director’s approval authorizes
FDCT to issue an emergency or out-of-cycle allotment and AFP. See
paragraph 6, below for additional information on out-of cycle allotments and
AFPs.

i. Obligation authority provided in AFPs and allotments remain available for
obligation through the end of the fiscal year, unless otherwise indicated or
changed by subsequent AFPs and/or allotments. All unobligated balances
are automatically withdrawn from allottees at the end of the fiscal year and
are not available for obligation in the subsequent fiscal year until they are
reissued in an AFP and allotment. (See Chapter III, paragraph 3d,
Apportionment of Unobligated Balances)

3. ALLOTMENT PROCESS. As directed in 31 U.S.C. 1514, the DOE system for
administrative control of funds prescribes that allotments be issued at the highest
organizational level that is practical and consistent with effective and efficient
management. Accordingly, no allottee will be financed from more than one allotment
for each appropriation or fund. It is Department policy that all budgetary resources be
made available for obligation through the allotment and AFP process unless specifically
exempted.

a. Determining Allottees.

(1) Allotments are issued to the CFO (for Headquarters activities, including
NNSA) and to heads of field organizations, or their designees, who have
met the criteria for becoming an allotment holder. The recipient of the
allotment is responsible for ensuring compliance with procedures for
DOE administrative control of funds and requirements of the
Antideficiency Act.

(2) To ensure compliance with 31 U.S.C. 1514, which required the
establishment of allotments at the highest practical level, the number of
allottees will be kept to a minimum. Increasing the number of allotment
holders increases potential for violations of the Antideficiency Act.

(3) To establish a new allottee, the following criteria must be met.

(a) The Office of Budget must determine that a new allottee would
be consistent with DOE administrative control of funds policies
and procedures.

(b) The proposed allottee must have accounting, budgetary, and
procurement capability support.

(c) Each requesting office must provide to the CFO through the FDCT
written assurance that a proposed new allotment holder meets
criteria defined in Attachment IV-3.

(d) A strong, credible justification for assigning an additional allottee
must address improvements in control, efficiency, or effectiveness
that would be realized.

(e) A request for a new allottee simply to support organizational
restructuring and management initiatives is not sufficient
justification.

(f) Requests must clearly document how the new allottee will improve
management controls in accordance with the Federal Managers
Financial Integrity Act of 1982, and funds control pursuant to the
Antideficiency Act.

(4) The FDCT will maintain a listing of approved allottee and AFP recipient
codes.

(5) For additional information, see Attachment IV-3 of this Manual.

b. Availability of Obligation Authority.

(1) The Advice of Allotment (See Attachment IV-4 for an example) provides
authority to incur obligations to organizational components.

(2) Advice of Allotment documents are specific to and include resources for
only one appropriation. Allotment changes are issued to reflect AFP
changes or revisions. Allotments are prepared by the FDCT and signed by
the CFO or designee in accordance with provisions detailed in the DOE
Accounting Handbook, Chapter 2, Administrative Control of Funds.

(3) The signed Advice of Allotment gives the allottee authority to obligate
and expend funds within legal limits imposed on DOE (derived from
public laws and OMB apportionments). Violations of legal limitations are
considered violations of the Antideficiency Act.

(4) Annual allotments show the amount of obligation authority available for
an entire year.

(5) Allotments may be made to cover periods of less than 1 year for purposes
of administrative control. Time limitations or programmatic restrictions
reflected on OMB apportionments must be carried through to the
corresponding allotment and associated AFPs (see details in Chapter III of
this Manual). For example—

(a) Funds apportioned by OMB quarterly must also be allotted
quarterly but remain available for obligation until expended.

(b) Programmatic restrictions on an apportionment are legal limits
that must be reflected on the allotment and corresponding AFPs.

(6) When regular appropriations are not enacted by October 1 and a
continuing resolution is passed allowing current year obligation authority
to be allotted, the amount of budget authority in the initial AFP typically
reflects an amount based on the most conservative or most recent funding
allocation data available from the House and Senate (e.g., the lesser of
House or Senate marks, or if available, the conference mark).

(a) The amount available for allotment and obligation will be
restricted to the amount authorized under the terms and
conditions of the continuing resolution.

(b) The allottee may incur obligations against any PPA in the AFP
as long as obligations do not exceed either the allotment or the
amount reflected in the AFP.

(c) When an allottee receives funds from more than one
appropriation, a separate allotment and AFP are issued for each
appropriation.

(d) Total obligations must not exceed either the amount of the
allotment or actual budgetary resources whichever is less.

(7) Because some allotments may contain obligation authority based on
anticipated reimbursements or other collections, such as reimbursable
work, budgetary resources available for obligation from reimbursements
are limited to the sum of valid, reimbursable orders/agreements from other
Federal agencies’ appropriation accounts plus reimbursable agreements
received from non-Federal entities and accompanied by cash advance and
third-party receipts from technology transfer. Allotments, including
anticipated collections, will specify the budgetary resources available for
obligation and any limitations therein (DOE Accounting Handbook).

(8) Requests for allotment of certified unobligated carryover balances at the
beginning of the fiscal year must be submitted in writing and approved by
the Director of Budget. Exceptions may be made for PPAs that have no
new budget authority and must operate on prior year balances.

c. Derivation of the Allotment Symbol. The 6-digit alpha-numeric allotment
symbol that appears on the Advice of Allotment (e.g., OR-42-91) is defined as
follows.

(1) The first two letters identify the organization to receive the allotment
(from an allottee listing maintained by FDCT). In the example above, OR
identifies the organization as the DOE Oak Ridge Office.

(2) The second two digits (42) are the last digit of the fiscal year and the last
digit of the appropriation symbol. In the example above, the allotment is
for FY 2004 and appropriation 89X0222.

(3) The last two digits designate the general purpose or limitation for which
the allotment is made as follows.

(a) 91—operating expenses (capital equipment, GPP, accelerator
improvement projects, plant/construction);

(b) 92—reimbursable work for non-Federal entities;

(d) 95—reimbursable work, which includes third-party receipts
from technology transfer.

d. Initial Allotments and Changes to Allotments.

(1) Initial allotments are prepared by FDCT based on initial AFP input from
DOE Headquarters, including NNSA, organizations that are
programmatically responsible for the funds. The amount on the Advice of
Allotment consolidates the obligation authority for AFP recipients that
comprise the allotment.

(2) Each allotment is accompanied by an AFP (Format 1540), which specifies
in the associated detail—

(a) fiscal year,

(b) appropriation account,

(d) total obligation authority (identified as new and unobligated
balances),

(e) budget and reporting titles and codes,

(f) contractors’ titles and codes,

(g) footnotes, and

(h) necessary remarks or instructions for legal and/or administrative
limitations.

(3) When an allotment is less than the AFP (e.g., operating under a continuing
resolution, partial funding pending receipt of the full OMB apportionment,
or pending application of general or use of prior balances reductions), the
allottee will prioritize requirements and determine obligations by PPA.
Obligations incurred against an appropriation account may not exceed the
Advice of Allotment for that account or the obligation control levels
delineated in the accompanying AFP.

(4) Allotments and AFPs are updated monthly when a change in obligation
authority is required. Allotments also may be issued on an emergency or
out-of-cycle basis.

(5) The Advice of Allotment identifies the appropriation, the amount available
for obligation for both direct and reimbursable work, and any specific
legal limitations or administrative remarks.

e. Procedures for Withdrawal of Funds from Allottees.

(1) Withdrawal of funds from an allottee during the monthly AFP change
process has the potential to result in violation of 31 U.S.C. 1517,
Prohibited Obligations and Expenditures or administrative control level if
the funds have already been obligated. To prevent withdrawal of funds
that have already been obligated, follow the procedure outlined below.
FDCT will maintain a list of the names or positions of persons authorized
to verify the availability of funds.

(a) Heads of DOE organizations who request reduction in an
allotment or AFP must verify with the allottee or designee that
the funds being withdrawn are unobligated and available for
withdrawal.

(b) Since allotments and AFPs are issued in terms of whole dollars,
verifications of withdrawals also should be recorded in whole
dollar amounts.

NOTE: Records of telephone verification will be maintained by
both parties.

(d) Requests for reduction in an allotment or AFP must include
written certification that the above verification has been
completed for the proposed AFP change.

(e) No AFP change will be processed without the required written
certification by the authorizing official (head of a Departmental
element, designee, etc.).

(f) On Funds Distribution System (FDS) Format 1537, Proposed
AFP Input Worksheet, the signature of an authorized
Headquarters AFP approving official below the following
statement (preprinted on the form) is official certification in
compliance with the above procedures:

I certify that all reductions in AFPs and allotments
resulting from the changes, as requested, have been
verified with the allottees as being unobligated and
available for withdrawal.

Signature of authorizing official Date

(g) Without an authorized approving official’s signature, AFP
changes will not be processed.

(2) If a request for withdrawal of funds from an AFP/allotment impacts
uncosted balances and creates a negative revised AFP amount, a
certification of funds availability form is also required from the
organization.

f. Procedures for Correcting a Withdrawal of Unavailable Funds.

(1) When an allotment decrease results in an over-obligation or deficiency in
an overall allotment, the Headquarters organization that initiated the action
and FDCT should be contacted immediately for assistance and guidance in
resolving the potential over-obligation status or deficiency.

(2) When an AFP reduction results in a decrease in an allotment and/or AFP,
which would not otherwise place the allotment in over-obligation status,
but does result in exceeding an obligation control level, the allottee should
inform the appropriate Headquarters organization specifying budget and
reporting classification and appropriation. With this information, the
allottee and the Headquarters organization should be able to resolve the
problem. If assistance is needed or if the problem is not resolved, FDCT
should be contacted.

(a) Withdrawal of funds that results in an apparent over obligation is
not always considered a violation of the Antideficiency Act if the
allottee has not authorized or incurred additional obligations against
the funds.

(b) Withdrawn funds must be immediately restored or made available
to the account through deobligation in an amount sufficient to cover obligations previously authorized or incurred.

4. APPROVED FUNDING PROGRAM (AFP) PROCESS.

a. Overview.

(1) The AFP process is the means by which program funding is distributed to
heads of Departmental organizations, including NNSA, for operational
activities at a level of detail designed to maintain necessary controls while
achieving optimal program management efficiency.

(2) AFPs are issued by FDCT normally on a monthly basis to establish funds
available for obligation in each appropriation account. AFPs are issued
for all obligation authority, including direct appropriated funds and
reimbursable authority.

(3) Data in the AFP for each DOE component and appropriation account
reflects—

(a) total amount of obligation authority available for each PPA or
budgetary control level reflected on the DOE base table;

(b) operating expense and plant/construction funds available for
program execution;

(d) internal distribution decisions; and

(e) statutory limitations specified in appropriation act language and
OMB apportionment.

b. Determination of AFP Recipients.

(1) Each allottee designates AFP recipients necessary for its operations.

(2) At Headquarters, for allotments issued to the CFO, AFP recipients
represent heads of DOE organizations, including NNSA. In the field, each
allottee determines the AFP recipients it requires.

(3) Most operations/field offices assign one AFP recipient for each allottee.

(4) Additional AFP recipients may be designated as needed in the delineation
of organizational subelements necessary to assist in program management.

(5) A current listing of AFP recipients and allottees is maintained by FDCT.

c. Input to the AFPs.

(1) All input for direct funds in an AFP originates with Headquarters
organizations programmatically responsible for the funds. Input for
reimbursable work is provided to FDCT directly from allottees. Funds
distribution is based on—

(a) amounts available in the current DOE base table reflecting the
latest congressional actions by PPA;

(b) budget estimates from field offices that reflect the needs of
site/facility management and operating/integration contractors and
facilities and assessments of funding needed to fulfill program
requirements;

(d) the detailed budget submission as approved by Congress.

(2) All initial input and proposed changes to AFPs must be within obligation
control levels on the current base table.

(a) When reprogramming, restructuring, supplemental appropriation,
rescission, or other authorized action results in change of
obligation authority the base table is updated to reflect the change.

(b) The AFP change that follows an adjustment to the base table
should be initiated only after verification that the table has been
updated (see Chapter II of this Manual).

(c) Because program requirements throughout the fiscal year may
result in AFP changes, the allottee should make every effort to fund
revised or additional requirements within the AFP ceiling before
requesting additional obligation authority.

(d) Each time a field office requests an AFP increase, an equivalent
offsetting decrease must be made within the same obligation
control level to accommodate the request and ensure that base
table control limits are not exceeded.

(e) If the head of a Headquarters organization determines that a
change or increase to a base table control is needed, a
reprogramming request must be submitted to appropriate congressional
committees in accordance with reprogramming, restructuring, and
appropriation transfer procedures (Chapter V of this Manual).

(3) Changes to AFPs are processed monthly.

(a) When it becomes apparent that program objectives cannot be met
within AFP ceilings or that program objectives can be met with
savings, the AFP recipient should request that the responsible
Headquarters organization change the funding in the next AFP
cycle.

(b) FDCT will accept requests for AFP changes for direct funds only
from Headquarters organizations. Requests from multiprogram
laboratories will be communicated through the appropriate field
office, which in turn transmits all AFP change requests to the
appropriate Headquarters organization for consideration.

(4) An AFP change does not require a corresponding change in obligation
authority allotted if increases are equally offset by decreases to other
activities in the same AFP and no change to the Advice of Allotment
would be required.

d. FDS Worksheets and Reports. The following worksheets and reports are
available for retrieval by authorized users online through the Funds Distribution
System (FDS). Contact FDCT to obtain access.

(1) FDS Query Subsystem.

(a) FDS 1537, Proposed Approved Funding Program (AFP) Input
Worksheet.

(b) FDS 1540, Approved Funding Program (AFP).

(d) FDS 1553, Reserves Report.

(e) FDS 1554, Recovery of Prior Year Obligations Report.

(f) FDS 1558, Historical AFP Confirm Worksheet.

(2) FDS Approved Funding Program Subsystem. FDS 1141, Input Worksheet
with Changes.

e. Description/Explanation of Report Composition.

(1) FDS 1537 is a blank program-oriented input worksheet used for coding
changes for each AFP cycle and organizing proposed changes before data
input by the users. Content is as follows.

(a) Division codes are used to group functionally related programs,
which are listed by budget and reporting classifications.

(b) DOE organizations responsible for developing, managing, and
revising AFP data for the obligation control levels in the DOE base
table are identified.

NOTE: FDCT maintains a listing of the Headquarters approving
officials authorized to propose AFP changes for the
program budget and reporting classifications included in
each division code.

(c) Base table control is identified and the budget and reporting
classification being used for distribution is listed, followed by a
breakdown by AFP recipient.

(d) The level of detail included in the worksheet, and subsequently in
the AFP, is determined by the responsible organization.

(e) FDCT identifies the highest acceptable level of detail on the base
table (obligation control level) and each organization determines
lower levels of detail necessary for program management.

(f) Obligation control levels are based on congressional controls
included in the conference reports that accompany the
appropriation acts and are reflected on the base table as controls.

(g) Associated budget and reporting classifications are published by
the Office of Financial Control and Reporting as needed.

(2) FDS 1141, Input Worksheet with Changes, is printed by Division Code
after changes are entered into the Funds Distribution System.

(a) The authorized user determines that changes as recorded are
accurate and submits the form to the authorized approving official
for each division code for signature.

(b) By signing the FDS 1141, the approving official is both
authorizing the changes and certifying that all reductions in the
AFPs and allotments resulting from the changes have been verified
with the allottee and are available to withdraw.

(d) No changes will be included in the regularly scheduled monthly
AFP without a signed FDS 1141 and complete explanation of
change.

(3) FDS 1541, Proposed Approved Funding Program Confirm Worksheet, is
printed by Division Code and lists effects of proposed changes and
includes a summary of the total obligation authority of programs by AFP
recipient.

(a) This is depicted in columns by—

1 amounts previously approved in the AFP,

2 the change being proposed, and

3 the revised amount.

(b) The body of the worksheet identifies the base table control and
detailed distribution by budget and reporting level, which is
determined by the Headquarters organization.

(c) The Office of the CFO Analysis Division budget analysts review
each FDS 1541 to determine accuracy and concur on
appropriateness of the proposed funding changes and compliance
with internal, OMB, and congressional guidance.

(4) FDS 1558, Historical Approved Funding Program Confirm Worksheet, is
available for authorized users to print after the monthly AFP approval
process has been completed.

(a) After approval of the AFP, the revised amount shown on the FDS
1541 becomes the amount previously approved for the next cycle,
and no changes are reflected.

(b) If a user requires a copy of the worksheet reflecting change amounts
for a particular AFP after the approval process is complete, the FDS
1558 should be selected.

(5) FDS 1540, Approved Funding Program (AFP), details total funding
available to each AFP recipient for all programs funded from the same
appropriation which in total match the accompanying Advice of Allotment.

(a) An AFP specifies operating expense, which includes capital
equipment, general plant projects (GPP) and some accelerator
improvement/reactor modification projects, and line item
construction project funds available for program execution and
reflects all funding by obligation control levels in the DOE base
table.

(b) For appropriations that include reimbursable authority, the AFPs
may include funding levels for reimbursable work.

(c) All obligation authority available to an AFP recipient is delineated in
the FDS 1540 report by budget and reporting classification and
contractor identification code.

(d) Operating expenses may include a code to designate the planned
acquisition of a major item of capital equipment and may include
budget reference numbers for GPPs, capital equipment, and other
items.

(e) Construction line items include a construction project number and
total estimated cost for the project.

(f) AFP line items include both new obligation authority and
unobligated carryover to reflect the total obligation authority
available.

(g) Each base table obligation control level in the AFP will include a
letter O, which stands for “obligation control level NOT to be
exceeded.” See paragraph 5 of this chapter, Allotment and AFP
Limitations, for further discussion of obligation control levels.

(6) FDS 1553, Reserves Report, is a record by appropriation symbol of all
funds that have been placed in DOE reserve for an account. The reserves
are categorized according to the reason for the reserve (i.e., recovered prior
year obligations not available without official approval for use, proposed
reprogramming actions pending Congressional approval, quarterly
apportionment by OMB, project overrun/underrun, and miscellaneous
unallotted funds).

(7) FDS 1554, Recovery of Prior Year Deobligations, is a record of recovered
prior year obligations in DOE reserve and available for distribution and
allotment. The report distinguishes between reserves remaining at the end
of the previous fiscal year and recoveries during the current fiscal year and
documents OMB reallotment ceiling restrictions and amounts reallotted
during the current year, amounts applied to reductions imposed by
Congress, and the amount that remains available.

Users are offered the choice of retrieving the report by detail (the complete
report for all appropriations), or by Assistant Secretary, (which shows only
appropriations that include prior year reserves against controls associated
with the Assistant Secretary code chosen).

f. Requests for Initial AFPs and Changes to AFPs.

(1) In July, FDCT issues to DOE organizations the call for initial AFP and
allotment data for the next fiscal year, which includes specific information
needed to complete initial input to the AFP and allotment processes and is
required for all budgetary resources.

(2) The initial DOE base table is the controlling document for initial
development of an AFP.

(3) Funds distributed in the AFP must not exceed obligation control levels
established in the base table.

(4) The AFP may show funding distribution at a lower level of detail than is
available on the base table. Whether to use a lower level of detail is
determined by individual program management needs and is optional.
This detail provides responsible organizations with a tool to distribute
resources at a level consistent with their respective program management
requirements.

(5) Because of the significant administrative costs and burden associated with
administering numerous programs below the base table level, these
activities should be held to the minimum necessary for effective program
management.

(6) The base table will be available for Headquarters organization retrieval
from the FDS for a time specified in the call. After data input is complete,
FDS 1141 should be signed by an authorized approving official and
forwarded to FDCT by the due date specified in the call.

(7) Headquarters organizations are strongly encouraged to develop AFPs
reflecting annual funding levels. If the Department must operate under a
continuing resolution at the beginning of a fiscal year, allotments will be
issued for a percentage of the AFP amounts based on funding levels
authorized by the continuing resolution.

(8) If only partial distribution of annual funding has been made to field AFP
recipients, it is likely that allotments will be insufficient for initial
operations resulting in adverse impacts to ongoing operations. It is
essential that program offices coordinate in advance with field
organizations to ensure that sufficient funding will be available under this
scenario.

(9) Throughout the fiscal year, when it has been determined by recipients and
Headquarters organizations that AFP changes are necessary, the following
procedures are to be followed.

(a) The proposed AFP changes can be coded on the FDS 1537, which
can be retrieved from the automated Funds Distribution System
(FDS) by new users or input directly into the FDS by trained and
authorized users.

(b) Unless there has been a change made to the base table (i.e., an
increase or decrease to a control for reprogramming, a general
reduction, or a supplemental appropriation), proposed AFP
changes must total zero (0) for each control level except for the
initial fiscal year input.

(c) The request will include an explanation for the change to be used
by FDCT during the initial review and included as part of official
records. One copy of the explanation is to be provided directly to
the responsible Budget Analysis Division analyst for use in review
of monthly changes. See paragraph 4g, for more information.

(d) A hard copy of the proposed AFP input worksheet will be signed
by the organization’s authorized approving official or designee.

(e) Initial input must be submitted in compliance with the schedule
published in the call for initial AFP and allotment data.

(f) Subsequent changes must be submitted in compliance with the
monthly AFP schedule published by FDCT (see
Attachment IV-3 for a sample schedule). Failure to provide
complete, accurate AFP data and explanation of changes or to
adhere to the monthly schedule may result in deferring proposed
changes until the next month’s AFP cycle.

(10) After the AFP database has been established and/or updated and FDCT
has received signed input worksheets, proposed FDS 1541 worksheets are
generated. The FDCT will send e-mail notification to the responsible
Office of the CFO Budget Analysis Division analyst indicating that the
reports are available for printing and review. Then the analyst—

(a) reviews the FDS 1541 and explanation of change to ensure
compliance with—

1 restrictions in appropriation or authorization language,

2 report language and other congressional guidance,

3 financial policy,

4 budget policy, and

5 OMB or legal restrictions;

(b) alerts the FDCT and responsible Headquarters organization of
any problems/issues identified during the review; and

(11) If the budget analyst suggests changes to the FDS 1541, resolution should
be coordinated with the responsible Headquarters organization and the
FDCT.

(a) The budget analyst will notify the FDCT and responsible
Headquarters organization by memo or via e-mail of appropriate
action to be taken or that the changes in question should be
removed from the proposed AFP until an issue or concern is
resolved.

(b) Upon the budget analyst’s resolution and concurrence within the
established schedule, the FDCT produces AFP management
summary reports (i.e., changes by allottee, availability report,
AFP/base table variance report, and reserve listing) for review
by the Director, Office of Budget or designee and Advice of
Allotment forms that assign legal authority to incur obligations
and expenditures.

(12) The Director, Office of Budget or designee approves the AFP by signing
the management summary reports and allotments, which are subsequently
posted (approval recorded) in FDS by the FDCT.

(13) Once the approval process is complete, recipients can retrieve the AFPs
from FDS electronically.

g. Explanation of Change for AFPs.

(1) To assist budget analysts in AFP review, Headquarters organizations will
prepare an explanation of change for each AFP submission. The
information from the explanation is used to—

(a) ensure that funds are used in accordance with congressional and
OMB intent; and

(b) assist FDCT staff in resolving issues and variances and
finalizing AFPs; and

(2) Explanations of changes should include the following points.

(a) Major reason.

1 change resulting from an approved revision to a DOE
base table amount or line item following reprogramming,
restructuring, supplemental appropriation, deferral, or
rescission;
2 change to a legally or politically sensitive program;

3 change that will affect employment levels in a DOE
organization;

4 change in operating expenses affecting—

a a major item of equipment (including automated
information systems components) or

b a change of $500,000 or more made to an
existing line item;

c change to funding for a prior year construction
project.

(b) Programmatic impact.

(d) New activities being initiated in response to the changes.

(e) Source of the funding.

1 Reduction in another activity [requires explanation that
identifies the activity being reduced and the rationale for
the reduction (e.g., postponement of a project).

2 Release of funds in DOE reserve.

(3) Failure to provide adequate explanation may result in proposed changes
being excluded from the monthly plan and deferred until the next regular
monthly plan cycle, pending receipt of the required information.

(4) Attachment IV-5 is an example of an explanation of change.

h. Input of AFP Data for Reimbursable Work Program. Reimbursable obligation
authority can be acquired only by obtaining an allotment through the AFP
process.

(1) Reimbursable authority is apportioned by OMB and allotted by DOE.
Reimbursable agreements with Federal agencies or non-Federal entities
provides authority to incur obligations when budgetary resource criteria
are met and there is sufficient reimbursable authority available within the
allotment.

(a) Accordingly, reimbursable agreements that provide budgetary
resources in excess of reimbursable authority for an allotment do
not increase available reimbursable obligation authority and cannot
be obligated.

(b) Conversely, if during the year of execution, an allottee determines
that reimbursable obligation authority will not be required, the
FDCT should be notified to permit reallocation of the reimbursable
authority for other requirements within the Department as needed.

(2) AFPs are prepared for reimbursable work for other Federal agencies and
non-Federal entities (e.g., third-party receipts from technology transfer
activities). See Chapter 13 of the DOE Accounting Handbook for
guidelines on financial administration of reimbursable work.

(3) Initial AFP input from field organizations for reimbursable work is based
on estimates obtained through the annual unified field budget call issued
by the CFO and/or through special requests for updated data related to
reimbursable work.

(4) Subsequent AFP changes to reimbursable work requirements for field or
Headquarters organizations will be requested and explained in a
memorandum (via fax or email) to the FDCT. The memorandum will
identify—

(a) the Agency or entity requesting the work,

(b) the nature of the work, and

(5) The request also will affirm that the additional work to be performed for
others will in no way negatively impact the performance of direct mission
responsibilities.

i. AFP Process Assistance/Training. For assistance with the AFP input process or
for FDS training, contact the FDCT. Examples of FDS 1537, FDS 1541, and
FDS 1540, may be obtained by contacting FDCT.
5. ALLOTMENT AND AFP LIMITATIONS.

a. The allotment and AFP system is limited based on legal and administrative
requirements, which are cited in Attachment I-1 of this Manual.

b. Obligation control levels and legal limitations differ because exceeding
obligation control levels violates DOE’s Administrative Control of Funds
policies and is considered an administrative violation that may not necessarily
culminate in violation of the Antideficiency Act. Exceeding obligation control
levels must be reported immediately to the CFO.

c. Exceeding an obligation control level has potential to cause a statutory
(Antideficiency Act) violation at the allotment and/or appropriation account
level. When an obligation control level is exceeded but does not result in an
Antideficiency Act violation, the responsible individual is still subject to
appropriate administrative disciplinary action.

d. Additional details concerning statutory and administrative violations and related
disciplinary actions may be found in Chapter 2 of the DOE Accounting
Handbook.

e. AFP data below the obligational control level represents guidance provided by a
program office. Any funding adjustments at this level of detail must be
coordinated in advance with the responsible program office/manager.

6. OUT-OF-CYCLE ALLOTMENTS.

a. Out-of-cycle allotments are issued when an urgent (emergency) funding
change is required because delay in processing the change would be
detrimental to a PPA.

b. It is imperative that before requesting an emergency change, Headquarters
program offices have determined that adequate funding is not available at the
allottee within the obligation control level for the specific requirement or
activity.

c. Requests for emergency allotments must follow the same basic procedures
and require the same information as those that are proposed within the
monthly cycle. The following process must be followed.

(1) The Headquarters organization submits a memorandum request through
the appropriate Office of Budget Associate Director to the Associate
Director for Funds Distribution and Control. The memorandum must
include an approval block for the Director of the Office of Budget.

(2) The request includes an explanation of the requirement and the nature of
the emergency and must be signed by the head of the organization.
Information provided will include—

(a) appropriation symbol and title;

(b) budget and reporting classifications;

(d) AFP recipient being decreased;

(e) contractor identification; and

(f) dollar amount of changes.

(3) For funds being withdrawn from field organizations, the following
certification must be included in the memorandum request and be signed
and dated by the head of the Headquarters organization or NNSA deputy
administrator or designee for signing allotment/AFP changes.

I certify that all reductions in AFPs and allotments
resulting from the changes, as requested, have been
verified with the allottees as being unobligated and
available for withdrawal.

Authorized approving official Date

(4) If the change would have impact on uncosted balances or create a negative
revised AFP amount, a certification of funds availability form is also
required from the organization, signed by the responsible field
organization authorized funds certifying official.

(5) For Headquarters organizations, all proposed withdrawals must be
accompanied by a “Confirmation of Funds Available for Withdrawal”
form signed by an authorized certifying official in the Energy Finance and
Accounting Center.

(a) The appropriate Office of Budget associate director must indicate
concurrence or nonconcurrence with the proposed change.

(b) The Director, Office of Budget; Deputy Director, Office of
Budget; Director of Budget Operations; or Director of Budget
Analysis must indicate approval of the proposed change in the
space provided for Office of Budget approval.

(6) Upon completion of these steps, the Associate Director or Acting
Associate Director for Funds Distribution and Control has been delegated
the authority to sign interim or emergency allotments on behalf of the
approving officials [paragraph 6c(5)].

(7) In any case, the urgent need must be verified and requests should be kept
to a minimum. Year-end panic requests, for example, to “dump” funds for
obligation will not be construed as bona fide emergencies.

7. SPECIAL RESERVES. DOE tracks and monitors the use of the reserved funds in four
categories.

a. Project Overrun/Underrun Reserve.

(1) The category was established to recover resources from financial closing
of construction projects funded from prior year appropriations and not
receiving an appropriation in the current fiscal year.

(2) As prior year construction project financial closeout occurs, the
responsible program Secretarial Officer deobligates and places excess
funding in the Project Overrun/Underrun Reserve through the AFP
process.

(3) Funds placed in this reserve typically lose line-item project number
designation. If during final audit of a line item project it is determined
that additional funds are required, a memorandum request for funds from
the Project Overrun/Underrun Reserve may be made by the responsible
Headquarters organization to the Director, Office of Budget.

(4) Funds from this reserve also are available to reprogram for other
construction or non-construction PPAs through the Department’s
reprogramming procedures to offset future budgetary requirements or as a
source to accommodate congressionally imposed general reductions.

(5) Headquarters organizations are encouraged to withdraw excess funding
from field organizations and place them into this reserve.

(6) The CFO will evaluate the amount of funding in the reserve periodically to
determine proper disposition in light of current funding considerations and
programmatic requirements.

(7) Resources in the Project Overrun/Underrun Reserve may be applied to a
proposed reprogramming if the funds are—

(a) required to cover a prior year project overrun;

(b) necessary to cover requirements identified during final audit of a
prior year project;

(d) mandated by law;

(e) considered a liability which is in the best interest of the
Government to liquidate as soon as possible;

(f) necessary to prevent the delay or postponement of a project,
program, or activity;

(g) essential to meet congressionally imposed reductions or other
directed actions; or

(h) necessary to offset future budgetary requirements.

b. Prior Year Cost Adjustment Reserve.

(1) This reserve category was established to collect resources derived from
accounting transactions recorded by appropriation against budget and
reporting classification YN0203. The reserve typically includes recovery
of funds from prior year activities not directly associated or identified with
a current operating program or resulting from significant accounting
adjustments during the current year based on policy changes,
errors/overpayment corrections (such as appropriation refunds) or
adjustments of prior year sales or revenue which would distort the current
year comparison for evaluation of full cost recovery policy.

(2) Since resources in this reserve are not specifically associated with a
program or activity, the Department may apply the funding to mission
PPAs (including line item construction projects) to offset a future year’s
funding requirements, as a source to accommodate congressionally
imposed reductions, or to accommodate emerging funding requirements.
Using this reserve to fund mission program activities is subject to the
Department’s reprogramming procedures.

(3) The Prior Year Cost Adjustment Reserve may be a source for proposed
reprogramming if the funds are—

(a) necessary to meet unforeseen emerging requirements;

(b) mandated by law;

(d) necessary to prevent the delay or postponement of a project,
program, or activity;

(e) essential to meet congressionally imposed reductions or other
directed actions; or

(f) necessary to offset future budgetary requirements.

c. Unapplied Unobligated Balances Reserve.

(1) The category was established to account for funds collected as the result of
the financial closing of a program or activity creating unobligated
carryover balances related to programs with no new funding and no
uncosted balances or recent activity. Balances averaging $20 or less are
moved into budget and reporting classification 8702. If the responsible
Headquarters organization determines that the balance from a defunct
program or one nearing completion is not to be reallotted, those funds
should be placed into this reserve.

(2) Since funding in the reserve is no longer associated with current programs,
it can be applied to any mission program activity or line item construction
project, as a source to offset a future year’s funding requirements, as a
source to accommodate congressionally imposed undistributed reductions,
or to accommodate emerging funding requirements. Use of this reserve to
fund mission program activities is subject to the Department’s
reprogramming procedures.

(3) The Unapplied Unobligated Balances Reserve may be a source for
proposed reprogramming if the funds are—

(a) necessary to meet unforeseen emerging requirements;

(b) mandated by law;

(d) necessary to prevent the delay or postponement of a project,
program, or activity;

(e) essential to meet congressionally imposed reductions or other
directed actions; or

(f) necessary to offset future budgetary requirements.

d. Processing Requests for Use of Funds from the Project Overrun/Underrun
Reserve, Prior Year Cost Adjustment Reserve, or Unapplied Unobligated
Balances Reserve.

(1) When a requirement for use of funds from any one of the above reserves
(noted in paragraph 7a, 7b, or 7c) is identified, the appropriate
Headquarters organization will send to FDCT, through the proper budget
analysis team, a memorandum explaining and justifying the requirement.
The memorandum will include an approval block for the Director, Office
of Budget. If the funds are needed on an emergency basis, the
memorandum should include a statement indicating that an emergency
allotment is needed.

(2) The Director, Office of Budget will sign the memorandum indicating
approval or disapproval, and the budget analysis team will forward it to
the originating program office and the FDCT.

(3) If approved, the FDCT will either allot the funds in accordance with the
established AFP cycle or on an as-needed emergency basis, or utilize to
accommodate reductions as appropriate.

e. Prior Year Deobligation.

(1) This category was established to manage and account for funds recovered
from prior year obligations (deobligations) from ongoing PPAs.

(2) A prior year deobligation represents the recovery or downward adjustment
of an obligation made in a previous fiscal year (see the DOE Accounting
Handbook, Chapter 5).

(3) Funds from the reserve are used for valid emerging funding requirements
and are retained and managed for the following reasons.

(a) Most of the Department’s PPAs are long-term, ongoing activities
that may have program requirements in excess of available funding.

(b) Prior year deobligations make funding available to satisfy
unforeseen or emergency situations/requirements encountered
during program execution that could not have been anticipated
during the budget formulation process.

(c) Any unused funds at fiscal year end may become a source available
to offset future year budgetary requirements. Funds residing in this
reserve also are available for reallotment and obligation subject to
the Department’s reprogramming procedures.

(4) Funds from the reserve may be used after obtaining the proper
coordination and approvals for programs that are—

(a) necessary to meet unforeseen emerging requirements;

(b) mandated by law;

(d) necessary to prevent the delay or postponement of a project,
program, or activity;

(e) essential to meet congressionally imposed reductions or other
directed actions; or

(f) required to offset future budgetary requirements.

(5) When a proper use of funds from this reserve is identified, the
Headquarters organization will send to the appropriate budget analysis
team within the Office of Budget a memorandum explaining and justifying
the reallotment.

(6) The appropriate Office of Budget analyst will review, concur or
nonconcur with the request, and complete the “Request for
Reallotment/Use of Prior Year Recovered Obligations or Other Reserves”
format.

(7) After review by the budget analysis team, the request should be
transmitted to the FDCT for review, concurrence, and assignment of a
control number.

(8) The FDCT will return the request to the originating budget analyst to
obtain the remaining concurrences within the Office of Budget. The
completed request form should be sent to the FDCT for processing (see
Attachment IV-6 for a sample Request for Reallotment/Use of Prior Year
Recovered Obligations or Other Reserves).

(9) If approved, the funds will be allotted for obligations or serve as a source
for use of prior year balance reductions.

(10) If the request for reallotment is not approved, the budget analysis team
will notify the Headquarters organization.

f. Use of Reserve Funds for Reprogramming/Appropriation Transfer.

(1) If the proposed use of funds from any of the four reserves requires a
reprogramming and/or appropriation transfer action, the submission of the
request (prepared in accordance with the Department’s reprogramming
procedures outlined in Chapter V of this Manual) will serve as the
program Secretarial Officer’s request to use these funds.

(2) The Budget Analysis Division analyst will complete the Request for
Reallotment/Use of Prior Year Recovered Obligations or Other Reserves
format (Attachment IV-6) to document the proposed use of these funds.
This approved form will be included in the formal reprogramming
package.

8. TRANSFER APPROPRIATIONS (ALLOCATION OR TRANSFER ACCOUNTS).

a. General.

(1) The Energy and Water Development Appropriations Acts provide generic
authority for transfer of appropriations to other Federal agencies to finance
work or goods and services for which the appropriations were made.

(a) A written agreement defining the purpose for the allocation and the
amount to be transferred is completed by both Agencies before an
SF 1151 is prepared by the transferring or losing
Agency.

(b) The transfer is an allocation of obligation and disbursement
authority to the receiving Agency, not an adjustment to the budget
authority of either Agency. The budget authority and reporting
requirement (SF 133) remains with the transferring appropriation or
parent account.

(2) The Department of Treasury executes a transfer based on the SF 1151,
copy of which is forwarded to both Agencies.

(a) DOE limits the use of transfer appropriations to instances when no
other reimbursement method will suffice [for instance, the
reimbursable work process as authorized under the Economy Act
(31 U.S.C. 1535)].

(b) Any office considering a request for a transfer appropriation should
contact the Director, Office of Financial Policy for assistance in
identifying other financial methods that can be used in lieu of
transfer appropriations.

(c) No transfer appropriations will be processed without CFO approval.
See the DOE Accounting Handbook for additional details regarding
use of a transfer appropriation.

b. Transfers to Another Agency.

(1) For transfer of appropriations to another Federal agency, after the CFO has
approved and DOE has entered into a written agreement with the receiving
Agency, the Headquarters organization responsible for the affected funds
will send a written request to the Director, Energy Finance and
Accounting Service Center (EFASC) for the preparation of an SF 1151.

(a) The Energy Finance and Accounting Service Center (EFASC) will
prepare the SF 1151 electronically, using the Treasury
Government-wide Accounting system and submit it to the FDCT for
concurrence.

(b) Before concurring, the FDCT will ensure that the transferring
organization’s allotment has been reduced by the amount of the
proposed transfer.

(d) When the CFO receives an executed copy of the SF 1151 from the
Department of Treasury indicating that the funds have been
transferred, a copy is submitted to the FDCT for preparation of an
Advice of Transfer Authorization.

(e) The Advice of Transfer Authorization includes a statement that the
funds are available for obligation only by the receiving Agency (not
by DOE).

(f) The AFP issued in conjunction with the Advice of Transfer
Authorization contains the detailed plan for the work to be
performed and reports as described in paragraph 4, AFP Process,
above.

(2) When all or part of an appropriation that has been transferred to another
Federal agency is to be returned to DOE, the other Federal agency
prepares the SF 1151.

(a) After processing the form, the Department of the Treasury posts the
SF 1151 electronically on GWA where FDCT will retrieve a copy.

(b) Based on the SF 1151, the FDCT revises the current AFP and issues
an Advice of Transfer Authorization reducing the transfer authority
by the amount of the returned appropriation.

c. Transfers from Another Agency.

(1) As in transfers to other Agencies, transfers from other Agencies also
should be used only if no other reimbursement method will suffice.

(a) After entering into an agreement with the transferring Agency, the
Headquarters organization to receive the funds prepares a DOE
F 2100.1, Request for Allotment of Funds for Transfer
Appropriations and Other Special Accounts.

(b) The completed form is submitted to the Energy Finance and
Accounting Service Center (EFASC).

(c) Upon receipt of the SF 1151 (prepared by the transferring Agency)
from the Department of Treasury, EFASC will certify receipt of the
transfer by signing DOE F 2100.1 and forwarding a copy of it, along
with the SF 1151 to the FDCT.

The certified DOE F 2100.1 provides authority for the FDCT to
issue an allotment, which provides the authority to obligate and
expend funds. The accompanying AFP provides lower-level
details of the transferred funds as appropriate.

(2) For identification purposes, DOE’s agency code (89) will be affixed to the
appropriation account symbol of the transferring Agency. A transfer from
the General Service Administration’s appropriation (47X4542), for
example is recorded as 89-47X4542 on the SF 1151. The Advice of
Allotment and AFP also will carry this identification.

(3) When any portion of funds transferred to DOE is to be returned to the
transferring Agency, the affected DOE Headquarters organization will
request that EFACS prepare the SF 1151and submit it to FDCT for
concurrence.

(4) Before concurring, FDCT will verify the amount of the proposed transfer
and ensure that the funds are available.

(5) When the SF 1151 has been executed by the Department of Treasury,
EFASC will provide a copy to FDCT for its records.

CRITERIA FOR ESTABLISHING A NEW ALLOTMENT HOLDER

1. The need for an additional allottee must be justified based on need to improve control,
efficiency, or effectiveness over the present funds control system and should be
coordinated through Headquarters organizations and addressed to the CFO.
NOTE: A request for a new allottee simply to support organizational restructuring or
management initiatives is not, in and of itself, sufficient justification.
Requests must clearly demonstrate how the new allottee will improve management
controls in accordance with the Federal Managers Financial Integrity Act and funds
control pursuant to the Antideficiency Act.

2. A documented funds control system approved by the Office of Budget should include—

a. an organization chart and narrative defining segregation of functions and
responsibilities between certifying officials and those incurring or recording
obligations and expenditures;

b. a description of the funds control system operation and a functional flow chart;

c. an explanation of the forms used in the funds control process;

d. a list of officials (by title) authorized to certify available funds;

e. desk procedures for handling and processing allotments and AFPs, certifying
funds available, and processing and recording commitments and obligations; and

f. a list of individuals authorized to certify available funds to be updated by memo
from the DOE operations office manager to the Director of Budget when
personnel changes occur.

3. DOE field office operations should include procedures for—

a. reconciling funds control system totals with the most recent Advice of Allotment
and AFP totals;

b. ensuring that legal restrictions and other limitations noted on the Advice of
Allotment are monitored and not violated;

c. accepting and approving reimbursable agreements from Federal agencies or
non-Federal entities;

d. ensuring that allotted funds are made available for obligation;

e. ensuring that commitments, obligations, and expenditures are reported and
recorded promptly;

f. reviewing monthly financial reports to detect legal or administrative funds control
violations for immediate reporting to the CFO;

g. ensuring that commitments (reservations) are cleared in a timely manner;

h. ensuring that outdated obligations are detected and cleared in a timely manner;
and

i. reconciling hard-copy reports with system-generated data.

4. An adequate control environment should consist of—

a. direct contract/procurement authority and budget responsibilities;

b. organizational alignment with clear segregation of authorities, duties, and
responsibilities for funds control, personnel, procurement, program, and site or
facility operations;

c. distribution of written, approved, funds control and office operating procedures to
individuals involved in funds control;

d. supervisory oversight and management practices to ensure that funds control
procedures are followed;

e. control procedures and storage systems to ensure that only authorized officials
have access to funds control and certification records, documents, and forms;

f. access to the Department’s current accounting system;

g. computer hardware and software for accessing the Office of Budget Funds
Distribution System;

h. the proposed allottee’s certification that criteria for establishing allotment holders
have been met and that adequate internal controls are in place; and

i. adequate, well trained staff to accomplish funds control.

CHAPTER V. CHANGES TO THE APPROVED BUDGET

1. GENERAL. When events or conditions in the fiscal year necessitate changes to the
approved budget, proposals must be communicated to the congressional committees
responsible for those appropriations. Processes are in place to address changes for
reprogramming, restructuring, and appropriation transfer; notification; deferral and
rescission proposals.

a. Reprogramming, Restructuring, and Appropriation Transfers.

(1) 31 U.S.C. 1301 prohibits expenditure of funds for purposes other than
those for which they were appropriated. For DOE, congressional controls
represent the obligational control lines in Department’s base table and the
approved supporting budget justification (see Chapter II of this Manual).

(a) Significant changes to program execution will be considered only
to meet unforeseen or emergency situations or to achieve
significant cost savings as discussed in paragraph 7, below.

(b) Congress requires DOE to ensure that appropriate committees are
informed promptly and fully whenever a necessary change to the
approved budget is required.

(c) Changes will be communicated to congressional committees
through submission of formal proposals for reprogramming,
restructuring, and appropriation transfer and DOE will comply
fully with the congressional committees’ subsequent directions.

(d) Reprogramming, restructuring, or appropriation transfer needs will
be determined promptly and documentation supporting such
actions will be processed expeditiously within DOE.

(e) Offices responsible for preparing documentation will consider
simultaneous concurrences and other appropriate means to reduce
the time required to prepare and submit a proposal to Congress.

(2) Congress may authorize DOE to execute changes independently within
specified limits without submitting formal reprogramming, restructuring,
and appropriation transfer proposals in advance.

(3) DOE considers internal or limited reprogramming approval authority as a
means for effecting program flexibility and takes the necessary
precautions to ensure that flexibility is not jeopardized.

(a) All formal or internal reprogramming, restructuring, and
appropriation transfer proposals, including those deemed not to
require prior congressional concurrence, will adhere to the
procedures defined in paragraph 8, below.

(b) Failure to keep Congress fully informed of changes in program
execution as required will violate the trust and latitude granted to
DOE and could result in stringent statutory constraints or the loss
of internal approval authority.

b. Congressional Notification. For changes in program execution or unforeseen
events that do not warrant formal or internal/limited reprogramming procedures
and for areas known to be of interest or concern to Congress, DOE intends to
notify congressional committees promptly to ensure they are fully informed as
prescribed in paragraph 4, below.

c. Rescission. As required by enacted legislation initiated by the Administration
(i.e., DOE or OMB) or Congress, a rescission permanently cancels new budget
authority or unexpired unobligated balances. The Congressional Budget and
Impoundment Act of 1974 (P.L.93-344), as amended, requires the President to
transmit a special message to Congress whenever a rescission is proposed.
Proposed rescissions, therefore, must be submitted to OMB and congressional
committees in accordance with procedures defined in OMB Circular No. A-11.
Rescissions are proposed when—

(1) the President determines that all or part of budget authority is not
required to carry out the objective or scope of programs for which it was
provided;

(2) the President determines that budget authority should be rescinded for
fiscal policy reasons; or

(3) all or part of any budget authority that is due to expire at the end of the
fiscal year is to be reserved from obligation for the entire fiscal year.

d. Deferral. A deferral is an executive action or inaction or congressional initiative
that temporarily withholds, delays, or precludes the obligation or expenditure of
budget authority. The Impoundment Act requires the President to transmit a
special message to Congress whenever funds are deferred. Proposed deferrals
must be submitted to OMB and congressional committees according to
procedures defined in OMB Circular No. A-11. The OMB or DOE may initiate
executive deferrals to—

(1) provide for contingencies;

(2) achieve savings made possible by changes in requirements or greater
efficiency of operations; or

(3) comply with laws and statutes.

2. TIMING. Changes to the approved budget may be proposed during the fiscal year only
for an unforeseen situation and only if delaying a PPA until the next appropriation cycle
would have detrimental impact on a program or priority. Reprogramming also may be
considered if the Department can show that significant cost savings can accrue by
increasing funding for an activity. Mere convenience or desire should not be factors for
consideration. Reprogramming actions should be proposed as soon the need is identified.
However, reprogramming actions should not be submitted during the fourth quarter of the
fiscal year unless necessitated by an unforeseen change in external circumstances.

3. REPROGRAMMING is the use of funds within an appropriation for purposes other than
those contemplated by Congress during appropriation action . Reprogramming should
not be employed to initiate new programs or to change program, project, or activity
allocations specifically denied, limited, or increased by Congress in appropriation acts or
reports. In cases where unforeseen events or conditions are deemed to required such
changes, proposals must be submitted in advance to the committees and be fully
explained and justified.

a. Reprogramming actions result under the following circumstances:

(1) any departure from the obligational control levels delineated in Base Table
and amplified in Congressional reports (House, Senate, or Conference)
accompanying authorization and appropriations acts; or

(2) any significant programmatic departure from a program, project, or
activity described in Congressional budget narrative justifications (as
approved by OMB and Congress) and Congressional testimony (including
questions and answers submitted for the hearing record).
(3) These departures may be identified as follows.

(a) The reallocation of funds from one program, project, or activity to
another within an appropriation. Most of these actions result in
base table changes. However, some changes may qualify as
reprogramming actions but not result in base