(5) Continuing contracts subject to the availability of the appropriation.-Report as an obligation the amount which the contractor has been notified is available and reserved for payment under the particular contract. The reported amount should be modified based on any subsequent agreements.

(6) Letter contracts.-Include the total amount of the contract where the amount is fixed, and the estimated amount, including the fee, where the contract is on a cost-plusfixed-fee basis.

(7) Letters of intent.-Where such letters constitute binding agreements under which the contractor is authorized to proceed, obligations will cover the amount indicated in the letters. If the letters merely indicate an intention on the part of the Government to enter into a contractual relation at a later date the amounts involved will not be treated as obligations.

(8) All other contracts.-Include the total amount of the contracts, except that in the case of so-called "price agreements," where the Government assumes no specific obligation, only orders actually placed shall be reported.

(9) Purchase orders.-Include orders for material or services not reflected in the obligations reported for letter contracts, letters of intent, and other contracts.

(10) Orders placed with Government-owned establishments.-Include orders placed under the Approved Project Law (41 U. S. C. 23) or similar legislation.

In reporting orders for supplies or services, agencies should bear in mind that the Comptroller General has held (21 C. G. 1159) that the general rule for lawfully obligating a fiscal year appropriation is that the supplies or services ordered are intended to meet a bona fide need of the fiscal year in which the need arises or to replace stock used in that fiscal year.

Administrative reservations, such as reservations for contemplated procurements, in the form of requisitions within an agency, price contracts, invitations for bids, or any other action short of a binding contract, order, or other similar agreement shall not be included in the amounts reported as obligations. Accrued expenditures.—Include amounts for goods and services received. Generally, goods shall be considered received at the time title passes to the Government. Where progress payments are made for construction or equipment, the expenditure shall be considered as accrued when performance is accepted as a basis for making the progress payments, or when otherwise due under terms of the contract. LANDS AND STRUCTURES-Obligations incurred.— Include contracts entered into in procuring land and

interest in land, buildings and other structures, additions to buildings, nonstructural improvements, and fixed equipment. In the case of condemnation proceedings, include payment to be held in escrow in connection with the “declaration of taking.”

Accrued expenditures.—Include purchases of land on which title has passed, condemnation awards, and performance accepted under contracts for construction including payments withheld to guarantee future performance under existing contracts. Also include payments to be held in escrow in connection with such contracts. Also include payments to be held in escrow in connection with the "declaration of taking"; legal rights obtained by outright purchase of freeholds and easements; and long-term leaseholds and other interests in land.

GRANTS TO STATES, TERRITORIES, AND POLITICAL SUBDIVISIONS-Obligations incurred.-Unless otherwise required by law, the amount of obligations to be included for Federal grant-in-aid programs with respect to States, Territories, and political subdivisions shall be determined as follows:

(1) For grants the amount of which is automatically fixed by a statutory formula or specified by law and involves no administrative determination, the obligation to be reported shall be the amount determined by the application of the formula or the amount appropriated, whichever is smaller, at the time the amount so determined becomes available.

(2) For grants based upon approved financial programs, obligations to be reported shall cover only the period of time for which the financial requirements have been established and approved and for which it has been administratively determined that funds will be paid to grantees. For example, if requirements have been established and approved for one month, and if it has been determined that payment will be made on the basis of such approval, obligations shall be based on the requirements for that month.

(3) For grants based upon approved construction and related projects, the Federal share of the project shall be considered to be an obligation at the time the project is approved by the appropriate Federal authority.

(4) For any other grants, the amount of which involves administrative determination, obligations' shall cover the amount approved for payment at the time the administrative determination is made.

Under either the automatic grants or those based on administrative determinations, the fact that recipient agencies are required to match Federal contributions does not affect the reporting of the Government's obligation. However, in any case

m an approved program should be modified or discontinued, the obligation previously reported shall be adjusted accordingly.

Accrued

expenditures.-Include the amounts which have become legally due or which have been administratively approved for payment.

OTHER GRANTS, Subsidies, AND CONTRIBUTIONS— Obligations incurred.-The amount of obligations to be included for grants, subsidies, and contributions, other than those with respect to the grantin-aid programs referred to above, shall be determined as follows:

(1) Amounts based upon contracts or agreements shall be reported at the time the contract or agreement is consummated.

(2) Amounts to be paid in accordance with treaties shall be reported at the beginning of the period for which the money is appropriated.

(3) All other grants, subsidies, and contributions shall be reported at the time the payment is made.

Accrued expenditures.—Include the amounts administratively approved for payment, except that amounts to be paid in accordance with treaties shall be reported at the beginning of the period for which the money is appropriated.

Include the amounts becoming due and payable during the period.

Accrued expenditures.-Same as obligations incurred.

INSURANCE CLAIMS, REFUNDS, AWARDS, AND INDEMNITIES Obligations incurred.-Include amounts determined administratively or judicially to be due the claimants when no further action by Congress is required to authorize payment.

Accrued expenditures.-Same as obligations incurred.

INTEREST, EXCLUSIVE OF INTEREST ON PUBLIC DEBTObligations incurred.-Include the amount accrued during the period.

Accrued expenditures.-Same as obligations incurred.

INVESTMENTS—Obligations incurred.-Include purchases of securities (other than the par-value of United States Government securities) and other investments made during the period.

Accrued expenditures.-Same as obligations incurred.

LOANS Obligations incurred.-Include amounts administratively approved, less cancellations, during the period.

Accrued expenditures.—Include payments made during the period.

31. Distribution of apportionments on Standard Forms 131 and 132.

A Level of apportionments.-Apportionments will usually be made at the level of the appropriation or fund. However, upon determination by the Bureau of the Budget, apportionments will be made below the appropriation level in certain cases (e. g., by activities, functions, projects, objects, or combinations thereof).

Apportionments below the appropriation level will generally be itemized in a pattern consistent with classifications in which the annual budget is presented for the appropriation or fund involved. In any cases where such classifications are not used as the basis, the apportionments below the appropriation level will be confined to accounting entities against which obligations can be directly charged at the time incurred.

Agencies' proposals that apportionments be below the appropriation level should be made in the form of a letter submitted in advance of the apportionment schedule or accompanying a reapportionment schedule.

B. Time periods for apportionments.-Apportionments may be for calendar quarters, for other time periods within the year, or for the year as a whole, consistent with the purpose and nature of apportionments. (See section 11.) Consideration will be

given to making apportionments for time periods other than calendar quarters whenever such periods are more representative of program activities and will facilitate their execution. Special consideration will be given to apportionments for the year as a whole when the appropriation or fund is available without time limit for a nonrecurring purpose (such as a single construction project). Consideration of apportioning for the year as a whole will normally be coupled with consideration of apportioning below the appropriation level.

Agencies' proposals for apportionments for time periods other than calendar quarters should be made in the form of a letter, submitted in advance of Standard Form 131 or accompanying Standard Form 132. When the Bureau of the Budget has not specified otherwise in advance of their submission, the apportionment schedules will be based on quarterly apportionments.

C. Availability of balances within the fiscal year.— Wherever apportionments are made by time periods of less than a fiscal year, unobligated balances of apportionments at the end of any apportionment period will be carried forward within the current fiscal year for obligation in subsequent apportionment periods without a reapportionment.

D. Availability of balances beyond the fiscal year. In the case of appropriations or funds which remain available for obligation beyond the end of a fiscal year, the balances of apportionments made in the previous year will remain available until new apportionment of the balances is made, but not later than August 31. The new apportionments of balances will supersede all apportionments of previous years and will cover transactions from the beginning of the year.

32. Apportionment Schedule (Standard Forms 131 and 131A).

A. Coverage.-An Apportionment Schedule (Standard Form 131 or 131A) shall be used by all agencies in initially requesting apportionments of all accounts and authorizations which are subject to apportionment on an obligation basis. (See section

11.)

This form shall be used for all appropriation and fund accounts, with the exceptions stated below. Included in this coverage are all types of authorizations, including authorizations to expend from public debt receipts.

This form is not required for the following accounts:

(1) Those specifically exempted from apportionment by section 3679 of the Revised Statutes, as amended, or other laws.

(2) Those accounts which have expired for obligation purposes or which have been fully obligated before the beginning of the fiscal year.

(3) Those accounts which are apportioned under Part V of this Regulation. (Note, however, that in cases where Treasury has established accounts with separate symbols and titles for appropriations for contributions to or investments in such corporations or enterprises, these accounts are to be apportioned on Standard Form 131, in addition to the apportionments of the corporation or enterprise fund under Part V.)

(4) Those accounts exempted by the Director of the Bureau of the Budget under the discretion which is granted by section 3679 (1) of the Revised Statutes, as amended. Under the authority granted him by that Statute, the Director of the Bureau of the Budget hereby exempts the following types of accounts, unless notice is given to the agency that particular accounts shall be apportioned:

(a) Trust funds, including deposit funds.
(b) Working funds.

ignated payees under private relief acts and other laws in the total amount provided in such acts.

(d) Interest on, or the retirement of the public debt.

(e) Refunds and drawbacks.

(f) Items determined by the President to be of a confidential nature for the purpose of section 3679 of the Revised Statutes, as amended. The following types of accounts will be apportioned, unless notice is given to the agencies that particular accounts are exempted:

(g) Grants to the States under Title I, IV, or X of the Social Security Act, or under any other public assistance title in such Act.

(h) Revolving funds established for intragovernmental operations.

(i) Receipts made available by law for industrial and power operations.

B. Schedules to be submitted.-A separate apportionment schedule shall be submitted for each unexpired account subject to apportionment. Standard Form 131 shall be submitted for apportionments by time periods at the appropriation level. Standard Form 131A shall be submitted for apportionments below the appropriation level (activities, projects, etc.).

In the case of appropriations from which allocations are made to transfer appropriation accounts, the coordinating agency shall submit a consolidated schedule covering both the parent account and all allocations therefrom. Agencies which receive allocations shall not submit Standard Form 131 (see section 61) for the allocation accounts.

C. Number of copies.-An original and one copy shall be submitted directly to the Bureau of the Budget for each account subject to apportionment. To the extent practicable, all the forms for each independent agency, departmental bureau, or similar subdivision shall be submitted together and numbered consecutively.

D. When to be submitted.-The apportionment schedule shall be submitted to the Bureau of the Budget at the following times:

(1) Not later than May 21 for appropriations for the ensuing fiscal year enacted on or before May 6.

(2) Within 15 days after approval of an appropriation act where the appropriations are enacted subsequent to May 6.

(3) Not later than August 15 for unobligated balances brought forward from prior years.

In cases where a new appropriation is made to an account with a balance brought forward from a

mitted to comply with the earliest of the applicable deadlines above. (Note the instructions for lines 1 and 2 under section 32-H, which provide for the balance to be omitted from the form if it is not known when the apportionment schedule must be submitted for the new appropriation, and for the appropriation to be omitted from the form if it is not known when the apportionment schedule must be submitted for the balance brought forward.)

E. Signature.-In submitting apportionment schedules the original of the first sheet submitted for each independent agency, departmental bureau, or similar subdivision shall be signed by an officer duly authorized by the head of the agency. Signatures on other sheets and copies may be affixed by stamp, typing, or other means.

F. Action by the Bureau of the Budget.-Apportionments made or reserves established by the Bureau of the Budget will be appropriately entered on lines 7 to 11 in the column "Action by Bureau of the Budget" and authenticated by the affixing of a signature on the "Apportioned" line. Lines 1 to 6 set forth the amounts used to develop the total amount available for apportionment. The column "Action by Bureau of the Budget" will be used for these lines only when the figures submitted by the agency are changed.

The Bureau of the Budget will indicate to the agency concerned the action taken in regard to the request for apportionments within the time prescribed by law (see section 12). At the time an apportionment is made by the Bureau of the Budget, the original Standard Form 131 or 131A will be forwarded to the agency concerned and the duplicate retained by the Bureau of the Budget.

G. Supporting data.-The apportionment schedule shall be supported by sufficient data, including workload figures where possible, to justify the financial requirements set forth therein. Even where apportionments are made by time periods, supporting schedules by activities, functions, projects, objects, or combinations thereof, shall be submitted upon the request of the Bureau of the Budget.

H. Explanation of Standard Forms 131 and 131A (Apportionment Schedule).-The information to be shown on these forms is divided into two general sections: (1) amounts available for apportionment, and (2) apportionments and reserves. Entries shall be made in the column "Information Submitted by Agency" for each applicable line item. The detailed information to be reported on each line of the form is explained below. The instructions for both forms are identical except for line 7.

Line 1. Unobligated balances brought forward July 1.—This line is applicable only to no-year and multiple-year accounts. Enter the unobligated balance of the account (including contract authorizations, reimbursements receivable, and refunds due) as of July 1 of the current fiscal year. When a new appropriation must be apportioned before the actual balance is known, this line will be left blank and a Standard Form 132 or 132A submitted subsequently to include the balance brought forward. Line 2. Appropriations.—

Line 2A. Realized.-Enter the amount of the appropriation specified in an appropriation act and made available beginning July 1 of the current fiscal year. In those cases where an appropriation was made available prior to July 1, the unobligated balances of the appropriation shall be entered on line 1.

Line 2B. Anticipated (indefinite).-Enter the amount anticipated to become available for obligation for the current fiscal year under an indefinite appropriation. Do not include anticipated supplemental appropriations.

Line 2C. Appropriations to liquidate contract authorizations (—)-Enter as a minus item the amount of appropriations made directly or by transfer to this account for liquidation of contract authorizations previously made. Exclude the amount of appropriations (or balances) transferred or to be transferred to other accounts for liquidation of contract authorizations; this amount shall be reported on line 5. (See section 62 for required supporting schedule on transfers of contract authorizations and transfers of appropriations to liquidate contract authorizations.)

When the unobligated balance brought forward must be apportioned before the amount of the new appropriation is known, this line will be left blank and a Standard Form 132 or 132A submitted subsequently to include the appropriation.

Line 3. Other new authorizations.-Enter the new authorizations other than appropriations made available beginning with the current fiscal year. Identify in the stub column the type of authorization involved. Exclude from this entry transfers of contract authorizations to other accounts, and include such transfers received from other accounts.

Where anticipated transfers of contract authorizations between agencies or other organizational units are involved, such agencies or units shall communicate with each other so that the organization which is to receive the transfer will treat the amount as an addition and the organization which is to make the transfer will treat the same amount

apportioned.

Anticipated transfers of contract authorization shall be supported by a listing, on the reverse sic of the form or on a separate sheet (see section 621 of the individual transfers by the appropriation ac counts from which or to which the transfers ar to be made.

A

Line 4. Anticipated appropriation reimburse ments. Enter the amount of appropriation reim bursements anticipated to be earned and advance to be received during the current fiscal year. schedule showing the sources of such anticipated reimbursements shall be made on the reverse side of the form or on a separate sheet.

Line 5. Anticipated net transfers to (+) and from (-) this account.-Enter the net amount of the transfers from other appropriation accounts less the transfers to other appropriation accounts which are anticipated during the current fiscal year. This entry shall include transfers of unobligated balances where the transfers result from: (a) reappropriations, (b) changes in appropriation structure, and (c) reorganizations. (It shall not include transfers of unpaid obligations.) It shall also include transfers to and from the account to liquidate contract authorizations previously transferred. Entries on this line shall be supported by a listing, on the reverse side of the form or on a separate sheet, of the individual transfers by the appropriation accounts from which or to which the transfers are to be made. In this listing, transfers from new appropriations will be distinguished from transfers of balances of prior-year appropriations. (See section 61-D for a more detailed explanation of transfers which effect an adjustment in the amounts appropriated.)

Where anticipated transfers between agencies or other organizational units are involved, such agencies or units shall communicate with each other so that the organization which is to receive the transfer will show the amount as an addition in computing the amount to be apportioned, and the organization which is to make the transfer will show the same amount as a deduction on this form.

This line shall not include transfers of contract authorizations (see line 3) or amounts expected to revert to the "Payment of certified claims" account.

Line 6. Total amount available for apportionment.-Enter the sum of lines 1 through 5. This represents the amount to be apportioned and reserved for the current fiscal year.

Apportionments and Reserves

Line 7. Apportionments.-On Standard Form 131 enter the amount requested for apportionment in each calendar quarter or other time period of the fiscal year. If a determination has been made to