(f) Full consideration shall be given to savings in personnel costs due to the delay in filling vacant positions, leave without pay, lag in recruitment for new positions, filling vacancies at lower rates of pay, part-year employment, and similar factors, as well as to the offset to savings caused by terminal-leave payments.

(g) Estimated requirements for executive direction and administrative services will be held to the minimum necessary. Special attention will be given to experience and estimates in this respect (section 87).

(h) The estimates will not provide increases in appropriations or other funds to cover within-grade salary advancements. In most cases the savings due to turnover should offset the amounts of the advancements. The net additional costs, if any, of such advancements must be absorbed (by reducing the number of positions, increasing lapses, reducing amounts for other objects, etc.). Position schedules should, however, reflect the best estimate of the actual salaries to be paid, including the net cost of within-grade promotions.

(i) Any upgrading of positions anticipated for the budget year must be specifically justified. Grades GS-16, GS-17, and GS-18 will be reflected in the schedules only to the extent that positions have been allocated to those grades or are specifically authorized in appropriation language.

(j) Provision may be made in the estimates for replacement of motor vehicles and other equipment covered by General Services Administration replacement standards in accordance with those standards. The need for the projected fleet of automobiles and trucks, whether it involves additions, replacements, or retention of present vehicles, must be fully justified (section 84).

4. General policies on data for the current and past years.

In preparing budget schedules, the current year's transactions will be estimated as accurately as possible within the limits of funds presently available or expected to become available during the year without further action by Congress, except that estimates of supplemental appropriations may be included when specifically directed by the Bureau of the Budget. It is expected that such direction will be given only when governmentwide legislation of a major nature has been enacted.

Except as specified above, the need for anticipated supplementals will not be shown in the schedules of obligations. The probable supplemental item shall be set forth in a schedule of budget authorizations, expenditures and balances (sections 51-52), and will

be explained in the justification (section 68). (No supplemental contract authorizations will be proposed for the current year.)

Agencies will be notified, at the time Presidential determinations of budget year estimates are made known, of the amount of any supplemental estimates to be included for printing in the budget.

Data for the past year shall be reported as accurately as possible. Obligations for the past year must be on a firm basis consistent with law and regulations and with any reports made to Congress thereon. Agency budget officers are responsible for seeing that receipts, appropriations, transfers, and expenditures for the past year agree with Treasury's records. Agency budget officers are also responsible for seeing that balances reported for the beginning and end of the past year are consistent with Treasury's records. Where audits of the General Accounting Office have disclosed errors in the analysis of balances previously reported for the start of the past year, adjustments shall be reported as a transaction of the year in which the correction is made (section 51).

5. Responsibility regarding transactions between appropriations and funds.

Responsibility will be as follows for estimating and reporting charges and credits between accounts:

(a) Where allocation accounts are used.-The agency administering the parent account will compile and submit all necessary material (section 13). It will obtain whatever information it needs for this purpose from the receiving agencies.

(b) Where payments are made to other appropriations, to revolving funds, and to consolidated working funds. The paying agency will include obligations for orders placed in its schedules. The receiving agency will include advances and reimbursements as a method of financing in its schedules (sections 13, 43, 53).

(c) Adjustments of appropriations and balances.— Where there are transfers between accounts which represent adjustments in the amounts appropriated or in balances previously appropriated (as defined in Budget-Treasury Regulation No. 1), the paying and receiving agencies will both be responsible for seeing that the amounts included are identical in the schedules of both the accounts concerned.

6. Advice on preparation of estimates.

Heads of agencies and bureaus, and their budget officers, are invited to consult with Bureau of the Budget representatives in charge of their estimates as to the provisions of these instructions. Upon request, Bureau of the Budget representatives will attend meetings to discuss preparation of estimates.

12. Sequence of accounts.

The agency budget submission will be assembled by bureaus or other subordinate organizations for which separate appropriations are made. It will follow the order in which the bureaus appeared in the latest appropriation act. For each bureau, materials will be arranged in the following order:

(a) General and special funds (except as set forth under other lettered items below) and trust funds which require congressional action. Accounts will be arranged as follows: (1) accounts for which appropriations are requested for the budget year; (2) accounts for which current appropriations were made in the current year; (3) other accounts for which schedules are required; and (4) heading and note for allocations from other appropriations (sec

tion 13). Schedules on foreign currency funds will follow the appropriations they supplement.

(b) Permanent general and special fund appropriations.

(c) Public enterprise funds (including budgetary authorizations).

(d) Intragovernmental revolving funds and management funds (including "Advances and reimbursements").

(e) Trust funds which do not require congressional action.

(f) Deposit funds.

(g) Proposed supplemental items, arranged with items under existing legislation first (in the same sequence as the appropriation items they supplement), followed by items under proposed legislation.

To the extent feasible, within the sequence above, appropriations and funds will follow the order in which they appeared in the latest appropriation act.

13. Coverage of schedules; consolidations of accounts. The units or "blocks" used to build the budget presentation should contribute toward the purpose of clearly presenting to Congress for action the data on appropriation requests and other proposals requiring such action, and at the same time contribute toward clarity of understanding, emphasis of the significant, and deemphasis of the less significant items within the objective of full disclosure of the whole financial plan of the Government. A set of budget schedules will be prepared for each unit as described herein.

Except as indicated below, each appropriation account or fund will constitute a unit for purposes of the budget schedules, considering as an appropriation account in this case the successive annual appropriations which may be made for a given purpose under the same or similar titles.

Consolidated working funds and reimbursements. As a general rule, reimbursements or advances to an appropriation, and the corresponding obligations will be excluded from the schedules for the appropriation account, and will be combined with obligations of consolidated working funds for the bureau involved (or for the agency as a whole where appropriations are not made on a bureau basis) in a schedule headed "Advances and reimbursements." Exceptions will be made, with advance approval from the Bureau of the Budget, in cases where such advances or reimbursements are a significant means of financing the agency's program rather than being incidental to it, or where the specific amounts thereof are named in the appropriation act.

Allocations and allotments.-The data for allocations and allotments will be combined with the parent account, with the movements of funds between the parent account and allocations treated as nonexpenditure transactions. However, obligations incurred under allocations and allotments will be identified in the schedule of obligations by objects (see section 45.1). (In cases where suballocations are made to other accounts, the movement of funds to the suballocation account will also be treated as nonexpenditure transactions—that is, the obligations should be reported in the object schedule for the agency which receives the final suballocation.)

In lieu of schedules for allocations or allotments from other appropriations, a note will be shown in the receiving agency's submission, for each bureau, under the heading "Allocations [or allotments] re

ceived from appropriation accounts," reading as follows:

"NOTE. Obligations incurred under allocations [or allotments] from other appropriations are shown in the schedules of the parent appropriations as follows:" [list appropriation titles].

The term "allocation" will be used for advances from other agencies which are placed in separate accounts (transfer appropriation accounts and allocated working funds); the term "allotment" will be used in cases where obligations are incurred under an appropriation made to another agency or organizational unit without any payment or transfer out of the appropriation account (including cross-disbursing arrangements).

References should not be included in cases where the only transactions in the allocation account are expenditures, since expenditures from allocations are not separately identified.

authoriza

Contract authorizations.-Contract tions and the appropriations to liquidate are to be presented as a unit.

Consolidated schedules.-A single set of schedules for two or more accounts of a bureau (or of an agency, where appropriations are not made by bureaus) will be submitted in the following situations:

(a) In cases where two or more appropriations have been replaced by a single appropriation, the old and the new accounts will be consolidated.

(b) Accounts which do not come within the scope of (a), and for which no new obligational authority is anticipated after the past year will be consolidated. (c) Permanent appropriations of the general fund and of special funds will be consolidated where they are for similar purposes (e. g., payments of shared revenues to the States), or where they are for small sums which have no direct bearing on programs financed by current appropriations.

(d) Trust funds will be consolidated, except for the largest ones and trust enterprise funds.

(e) Deposit funds will be consolidated by agency. (Note that only a simplified schedule of budget authorizations, expenditures and balances is required-see section 53).

A specific listing of the accounts and groupings to be used for preparing the budget schedules should be cleared with Bureau of the Budget representatives in advance of the budget submission.

14. Budgetary concepts.

In addition to the definitions set forth in BudgetTreasury Regulation No. 1, the following concepts are of particular significance or for particular emphasis in preparing the budget:

Obligations (incurred).-Schedules of program and financing will be presented on the basis of obligations incurred, with the exceptions discussed for

some limitations on business-type budgets (section 60) and the cost-type budgets (sections 76-79). Obligations will conform with the provisions of law and, in the case of annual accounts, should reflect as accurately as possible the amounts which will ultimately be paid.

Obligated balances.-The obligated balances in the budget will reflect the unpaid obligations outstanding, less reimbursements or refunds (including accounting adjustments) due. For the past year, the obligated balances must agree with the sums certified under section 1311 of the Supplemental Appropriation Act, 1955.

Reimbursements and refunds between accounts.— A payment between two accounts for goods or services is usually an obligation in the account making the payment and a reimbursement to the receiving account. Where permitted by law and regulations, it may be a refund (instead of a reimbursement), but in that case the various object classes of the paying schedule must be charged identically with the credits of the receiving schedule.

Reimbursements reported for any account expiring for obligation at the end of the year concerned will represent amounts which have been credited or will be credited to that account when received. Thus reimbursements may include, in addition to those earned (goods and services delivered), anticipated reimbursements to be earned subsequently, to the extent that the receiving account has a valid order on hand and has incurred obligations applicable to that order. Reimbursements reported for any account not expiring at the end of the year may also include, in addition to those earned, additional anticipated reimbursements to the extent that the receiving account has a valid order on hand from the reimbursing account.

Reimbursable transactions which are combined with consolidated working funds.-In order to combine reimbursable transactions with consolidated working funds, as provided in section 13, obligations equal to reimbursements normally will be removed from the appropriation schedules to the schedules for the working funds. This will have no effect on expenditures.

Expenditures.-Expenditures will be reported and estimated on a "checks-issued (net)" basis. This means gross payments of obligations (by issuance of checks) less refunds (and reimbursements where applicable) received and credited in the appropriation or fund accounts. Expenditure figures for the past year must agree with expenditures which will be reported in the Treasury Department's Combined Statement of Receipts, Expenditures, and Balances.

Source of expenditures.—Where balances of prior years and new authorizations are commingled in an

account, it is necessary to assume arbitrarily the sequence in which the money is used for purposes of estimates required in the schedule of budget authorizations, expenditures and balances (sections 52 and 54). Generally, it will be assumed that obligations are first a charge against unobligated balances until the balances are fully obligated, then against new appropriations or other authorizations. Expenditures will be estimated on the basis of forecasting the time of liquidating the respective obligations.

15. Standard forms; style of other material.

Standard Form 108 is prescribed for the statement of receipts (exhibit 22).

Standard Form 3a ("green sheet") is prescribed for the schedule of program and financing (exhibits 41A-41F), the schedule of obligations by objects (exhibit 45), the schedule of budget authorizations, expenditures and balances (exhibits 51A51E), the budgetary authorization schedules for revolving funds (exhibit 60A), certain special schedules, and the supplementary detail of personal services (exhibit 103).

These standard forms or preprinted master plates (for offset duplication) will be purchased through regular channels.

Language sheets and other schedules required will follow the style and format illustrated in this circular. With the exception of special fold-in charts and tables which an agency may wish to submit, all budget materials will be prepared on lettersize sheets (8 x 102 inches); tissue or onionskin will not be used. Financial statements and schedules will be prepared on letter-size sheets or, if larger sheets are required, will be folded or reduced to letter size. Reductions should not be made, however, in excess of 333 percent from original size. Attention is called to the use of leaders in the columns of figures in place of -0-. Dollar signs ($) are used only for the first figure appearing in each column on the financial statements or obligation schedules; they are not used in totals or at the beginning of new sections in a statement. Captions to be printed in bold-face type will be underscored. Particular attention will be given to the titles and rulings of financial statements in order to conform to the regular style of the Government Printing Office.

Justifications will be typed on one side of the sheet, either lengthwise or across, whichever will avoid unnecessary rewriting for submission to congressional committees. A 1-inch margin will be allowed at the top and left side.

Amounts shown on all tabular statements and schedules (except figures on unit costs in program and performance statements and justification sched