Feb 2013Lesson 23 Financial Management ProgramBudget
Feb 2013
Lesson 2.3: Financial Management: Program/Budget Execution
Budget Allocation Process (Apportionment)
After Congress passes the DOD Appropriations Bill and the President signs it, then the Office of
Management and Budget (OMB) distributes the Budget Authority to the DOD. This distribution is called Apportionment.
The funds can then be obligated for the programs and needs defined in the budget development process. Flow of Funds
The Office of Management and Budget (OMB) apportions funds (Budget Authority) to the DOD
Comptroller on a quarterly, annual, or other periodic basis, depending on the appropriation.
Following the apportionment of funds to the DOD Comptroller, the funds flow through a service or agency comptroller to a local comptroller in the product, buying, or operating command.
1
Aug 2011
Withholding of Funds ("Taxes")
As the funds flow through the DOD service comptrollers, and major command or local comptrollers, a small percentage of funds may be withheld for contingency purposes. These funds are unofficially referred to as "taxes" or "withholds." Taxes and withholds give the services the flexibility to meet minor contingencies.
Apportionment Documentation
The Apportionment process can take several weeks. A signed document accompanies and carries out the actual movement of funds. The program office cannot obligate funds until the authority (i.e., paperwork) reaches the comptroller for the program office.
Expiration of Funds
Each appropriation has a legal time limit, or "life," within which funds can be obligated. The following table shows the "life" for each appropriation.
Aug 2011
Appropriation Categories
Obligation Period
Research, Development, Test, and
Evaluation (RDT&E)
2 years
Procurement
3 years
(Shipbuilding and Conversion, Navy
(SCN))
(5 years)
Operations and Maintenance (O&M)
1 year
Military Personnel (MILPERS)
1 year
Military Construction (MILCON)
5 years
Aug 2011
Research, Development, Test, & Evaluation
Lesson 2.3: Financial Management: Program/Budget Execution
Budget Allocation Process (Apportionment)
After Congress passes the DOD Appropriations Bill and the President signs it, then the Office of
Management and Budget (OMB) distributes the Budget Authority to the DOD. This distribution is called Apportionment.
The funds can then be obligated for the programs and needs defined in the budget development process. Flow of Funds
The Office of Management and Budget (OMB) apportions funds (Budget Authority) to the DOD
Comptroller on a quarterly, annual, or other periodic basis, depending on the appropriation.
Following the apportionment of funds to the DOD Comptroller, the funds flow through a service or agency comptroller to a local comptroller in the product, buying, or operating command.
1
Aug 2011
Withholding of Funds ("Taxes")
As the funds flow through the DOD service comptrollers, and major command or local comptrollers, a small percentage of funds may be withheld for contingency purposes. These funds are unofficially referred to as "taxes" or "withholds." Taxes and withholds give the services the flexibility to meet minor contingencies.
Apportionment Documentation
The Apportionment process can take several weeks. A signed document accompanies and carries out the actual movement of funds. The program office cannot obligate funds until the authority (i.e., paperwork) reaches the comptroller for the program office.
Expiration of Funds
Each appropriation has a legal time limit, or "life," within which funds can be obligated. The following table shows the "life" for each appropriation.
Aug 2011
Appropriation Categories
Obligation Period
Research, Development, Test, and
Evaluation (RDT&E)
2 years
Procurement
3 years
(Shipbuilding and Conversion, Navy
(SCN))
(5 years)
Operations and Maintenance (O&M)
1 year
Military Personnel (MILPERS)
1 year
Military Construction (MILCON)
5 years
Aug 2011
Research, Development, Test, & Evaluation