The steps in the Federal Budget Process are:
Formulation
of the President's Budget,
Congressional Budget Process,
Execution of Enacted Budget,
Review and Audit.
Formulation of the President's Budget
(begins 19 months before Fiscal Year)
| |
Budget Policy Development
|
-
President, with assistance from Office of Management and Budget
(OMB) establishes general budget and fiscal policy guidelines.
(March)
-
Based on President's decisions, OMB gives federal agencies
instructions for budget preparation, along with budget ceilings and economic
assumptions. (April)
|
Compilation and Submission of Agency
Estimates
|
-
ETA submits budget request to Department of Labor (DOL) Budget
Office, based on OMB instructions.
-
DOL reviews/makes determinations on ETA/other DOL agencies'
budget requests.
-
DOL submits initial budget request to OMB. (1st week in
September)
|
Office of Management and Budget Review and Presidential Decisions
|
- OMB prepares major
issues/options for consideration/determination by President, based
on agency requests.
-
OMB reviews agency budgets, holds hearings with agencies, gives
"passback" decisions to agencies, and makes decisions on agency appeals.
-
Federal agencies prepare final budget materials for President's
Budget and Congressional committee hearings.
(December-January)
|
Submittal to Congress
|
-
President transmits full budget to Congress . (15 days after
Congress convenes in January prior to upcoming Fiscal Year)
|
Congressional Budget Process
(begins 10 1/2 months before Fiscal Year)
|
Development of Budget Targets
|
-
Congressional budget committees report first concurrent budget
resolution. (April 15)
-
Congress completes action on first concurrent budget resolution.
(May 15)
-
Congress adopts second concurrent budget resolution, which sets
spending and revenue and other budget ceilings for the upcoming Fiscal Year.
(September 15)
|
Action on Individual Bills
|
-
Congressional appropriations subcommittees begin to review budget
justifications and hold hearings with each federal agency and draft appropriation
bills and reports. (beginning in March)
-
President provides Congress with mid-session update of budget
estimates. (July 15)
|
Enactment of Appropriations
|
-
Congress completes action on appropriations/spending bills.
(after Labor Day)
-
Appropriation bills are sent to the President for approval or
veto.
-
If action on bills is not completed by September 30 or
Congress fails to override a Presidential veto of appropriation bills, Congress
enacts continuing resolution.
|
Reconciliation
|
-
Congress completes action on budget reconciliation bill so that
budget totals for enacted legislation conforms with budget targets in the
second concurrent budget resolution.
|
Execution of Enacted Budget
(during Fiscal Year)
|
Funds Made Available
|
-
On approval of an appropriation bill, an appropriation warrant
is drawn by the Department of Treasury and forwarded to the appropriate federal
agencies.
-
ETA prepares a request to OMB for apportionment. (By
August 21 or 10 days after approval of the appropriation bill, whichever
is later)
-
OMB makes the apportionment. (By September 10 or 30
days after the approval of the apportionment, whichever is later)
|
Control over Funds
|
-
ETA allots apportioned funds to various
programs/activities.
-
ETA obligates money, receives and uses goods and services.
-
ETA makes periodic reports to OMB on the status of funds and
use of funds in relation to program plans.
|
Expenditure of Funds
|
-
ETA prepares and certifies vouchers and invoices for
payment.
-
Treasury issues checks and reports on financial
transactions.
|
Review and Audit
(beyond Fiscal Year)
|
-
ETA reviews and evaluates compliance and performance accomplishment
and effectiveness of policies, plans and operations.
-
OMB reviews agency operations and evaluates programs and
performance. Conducts or guides agencies in organization and management studies.
Assists President in improving management and organization of the Executive
Branch.
-
The General Accounting Office (GAO) performs independent audits
of agency financial records, transactions, and financial management, generally.
"Settles" accounts of certifying and disbursing officers. Makes
reports to Congress.
|
|
|
|