76. Cost-type budget statements generally.

Whenever an agency employs an accounting system which includes accounts for accrued (applied) costs, integrated with accounts for obligations and appropriations, cost-type budget statements shall be included in the budget submission to the Bureau of the Budget. Such information, showing the value of goods and services consumed or used, will be utilized by the Bureau of the Budget in its analysis of budget requirements.

Where arrangements are made between the Bureau of the Budget and the agency for the costtype budget statements to be printed, such statements will replace the conventional statements on program and financing (exhibits 41A, 41B, and 41C). Where such arrangements have not been made, the cost-type budget statements will be submitted in addition to the conventional statements.

Where an agency has not previously presented budget data for the accounts concerned on an applied cost basis, the exact form and method of presentation must be worked out in advance with Bureau of the Budget representatives. Such arrangements should be made as early as practicable. It will usually be desirable for the agency to start working out the preliminary arrangements at the time it is considering the installation of the costtype accounting system, in order that the accounts will provide data needed for the budget presentation.

Final arrangements for new cost-type budget presentations should be made by submitting to the Bureau of the Budget by July 31 a sample costtype budget statement for each appropriation concerned, together with information on the adequacy of accounting support. If there are any particular reasons why the statement should not be printed in the budget, the agency should state such reasons in the submission. The Bureau of the Budget will advise each agency concerned as to use of the proposed new statements.

The general form and contents of cost-type budget statements, for the several different types of appropriations, are set forth below and shown in exhibits 77, 78, and 79.

Bureau of the Budget representatives are available for consultation on the preparation of the statements.

77. Cost-type budgets for current expenses.

For those appropriations which are primarily for current expenses, where the difference between costs and obligations each year is not substantial, the cost-type budget will normally follow the form of exhibit 77. Transactions are shown on this statement on the basis of applied costs for each activity, with an adjusting entry to reconcile total costs to total obligations.

The statement must be accompanied by an explanatory schedule showing the components of the adjusting entry in the main statement. This schedule will show, for the start and end of each year, the selected resources on hand and on order, less the liabilities, which have been included in obligations but not in costs, or vice versa. It will also show the net change therein for each year and the adjustments, if any, which affect obligations and not costs or vice versa (such as cancellation of an undelivered order).

The statement must be complete as to costs financed by the appropriation concerned. For example, the value of equipment bought by the appropriation and used thereunder must be reflected as a part of the costs at some time-either through a system of depreciation or by charging it to costs when first put into use or when retired from use. If the charge to costs is made through depreciation or upon retirement the change in the value of equipment in use will be a part of the change in selected resources.

78. Cost-type budgets for major procurement.

For those appropriations which are primarily for major procurement (other than public works projects), where the difference between costs and obligations each year may be substantial because of the lead-time involved, the cost-type budget will normally follow the form of exhibit 78.

This format is similar to exhibit 77 with the addition of three columns in which the budget year financing is analyzed for each activity. In these columns there will be shown the selected resources and unobligated balances estimated to relate to each activity at the start and end of the budget year and the appropriation required for each activity for that year. The last-named figures will

This format is similar to exhibit 78 with the addition of two columns on the left and one on the right. The first two columns will show respectively the total estimated costs for each project or activity (latest estimate) and the costs which had been applied up to the start of the past year. The column on the right will show the appropriations estimated to be required for each project or activity after the budget year. The various lines on the form must cross-foot so that the total costs are accounted for in the remaining columns.

SUBMISSION OF ANNUAL BUDGET ESTIMATES

81. Civilian personal services.

The justification for civilian personal service requirements will include, in addition to full explanations of personnel needs, the following information:

(a) An explanation of the estimate of the savings due to lapses, indicating how the figure was computed. Factors which require explanation include: Savings due to delays in filling vacancies, lag in recruitment for new positions, part year employment, leave without pay, and the additional amount required because of terminal leave payments.

(b) An analysis of change in average salary whenever there is an increase of $25 or more in any of the three years, as compared with the preceding year. The analysis should be specific and should trace the changes from the actual (past year) data printed in the preceding budget. Factors to be considered include: Positions added, positions dropped, changes in pay scales, positions reallocated and net change in pay above the minimum on the remaining positions. In cases where consolidated position schedules are used, the analysis will be made on a consolidated basis.

82. Employee health services.

Each agency requesting funds for an employee health program will include in its justification a statement as to whether the Public Health Service has been consulted as required by law.

The following additional information will be required as justification where a new program is planned for which the cost exceeds $11 per employee per annum, or where new or additional services and facilities are to be provided under existing programs:

(a) Number of health rooms operated.

(b) Number of full-time positions and the fulltime equivalent of part-time positions.

(c) A distribution of obligations by (1) personal services, (2) equipment, and (3) other objects. (d) A listing of payments to other agencies. (e) A distribution of obligations by type of care, including preemployment and other examinations (medical and dental); emergency on the job treatment (medical and dental); and preventive health programs.

(f) A listing of the sources of financing the program, indicating the titles of direct appropriations and the names of other agencies from which reimbursements or advances are received.

(g) A statement explaining the computation of the cost per employee, total number of employees served, number of employees to whom health services are not available, etc.

83. Passenger motor vehicles and aircraft.

Pursuant to law (5 U. S. C. 78) each agency which owns passenger motor vehicles or aircraft, or which requests funds for the purchase or hire of motor vehicles or for purchase, maintenance, or operation of aircraft, shall submit a statement as indicated below (see exhibit 83).

Combat and tactical vehicles of the armed services will be omitted.

Motor vehicles. - The statement on motor vehicles will be headed "Statement of proposed obligations for purchase and hire of passenger motor vehicles for the fiscal year 19BY," and will contain the following information:

"Appropriation"-Identify the appropriation or other account involved.

"Motor vehicles to be purchased" - Enter the number and gross cost of motor vehicles to be purchased during the budget year. Vehicles obtained without cost (by transfer from another agency or by seizure) will be omitted from the number shown in this column but will be identified in a footnote. Where the number of motor vehicles to be purchased as shown in this column differs from the number authorized in appropriation language, a citation to the authority for such purchases should also be identified in a footnote.

"Old vehicles to be exchanged"-Enter the number of old vehicles to be exchanged and the estimated allowance to be received during the year. Vehicles to be disposed of as surplus or transferred to another agency will not be included in the number shown, but will be indicated in a footnote.

"Net cost of vehicles to be purchased"-Enter the result computed by deducting the estimated allowance on old vehicles from the gross cost of vehicles to be purchased.

"Old vehicles still to be used" - Enter the number of vehicles on hand at the beginning of the year which will be continued in use for any part of the year and will not be replaced.

"Cost of hire of motor vehicles" - Enter the estimated cost of motor vehicles to be hired during the year. This amount should include reimbursements to other agencies for rental of vehicles from motor pools. Where this column contains both payments for rentals from motor pools and other payments for hire, the latter shall be appropriately footnoted. The amount shown in this column will exclude reimbursements to other agencies for bus or taxi service, as well as reimbursements to employees for the use of their privately owned vehicles or for taxicab fares.

"Users and public purpose"-Identify as specifically as possible the officers or employees using the vehicles (i. e., Secretary, Deputy Secretary, field inspectors, technical personnel, engineers, etc.), and indicate (for each group of employees) the public purposes for which the conveyances are intended. The statement as to public purpose should be brief but should contain information concerning the activities for which the vehicles are to be used. It should also indicate the number located in the field and in the Washington area. It may be omitted for officials who are excepted by law from the restriction concerning official use.

All passenger motor vehicles will be reported on the statement. When vehicles other than automobiles are included (busses, station wagons, ambulances, etc.), they will be shown on separate lines, appropriately identified in the stub column.

Aircraft. The statement on aircraft will be headed "Statement of proposed obligations for purchase, maintenance, and operation of aircraft for the fiscal year 19BY." It will be similar to the motor vehicle statement, except that (a) the word "aircraft" will be substituted for "motor vehicles" in the column headings, and (b) "Cost of maintenance and operation of aircraft" will be substituted for the column heading "Cost of hire of motor vehicles."

Cost of maintenance and operation of aircraft will include the direct costs of all fuel, oil, grease, hydraulic fluids, tires, tubes, washing, cleaning, inspection and repair of aircraft, renewal or replacement of parts and essential accessories, service charges at airports, and similar costs, together with indirect or overhead costs, including an appropriate portion of shop expenses, hangar supervision, upkeep and operation of service equipment, etc. Do not include wages of the pilot and crew or depreciation on the aircraft.

84. Schedule of changes in motor-vehicle fleet.

Each bureau or comparable organization unit which owns motor vehicles will submit a "Schedule of changes in motor-vehicle fleet" (see exhibit 84), which will analyze inventory, acquisitions, and disposals. In addition to these schedules, the size of the required fleet of vehicles must be fully justified. Any replacements contemplated in the current or budget years which will not meet the replacement standards must also be fully justified.

A separate schedule will be submitted for each type of vehicle reported to the General Services Administration on Standard Form 82. Trucks may be grouped in accordance with the groupings used for replacement standards. Actual figures reported on exhibit 84 must agree with figures reported on Standard Form 82. Vehicles in foreign countries

will be excluded from all entries on exhibit 84 except line F. Those agencies having entries on line F should submit, as a supplement to the regular schedules, a separate (similar) set of forms for vehicles located in foreign countries.

The bureau, agency, and type of vehicle will be identified at the top of the schedule, which will be completed as follows:

A. Actual number on hand at start of year.Number of vehicles actually on hand at the start of the year. This number must agree with line 1 on Standard Form 82 submitted to the General Services Administration. On line Al show those vehicles ordered but which had not been received at the start of the past and current years. On line A2 show those vehicles which actually had been scheduled for disposal at the start of the past and current years. Line A3 will be the net active fleet of the agency and will equal lines A, plus A1, minus A2.

B. Number of acquisitions.-Number of vehicles acquired during the year, both to increase the size of the fleet and as replacements for old vehicles. For the past year, this number should include all vehicles ordered as a part of the year's business, whether or not they have been received. For both the current and budget years, the report will be prepared as if all vehicles ordered during the year will be received before the end of the year.

Lines B1, B2, and B3 will be completed for the past year only. Indicate the number of vehicles acquired by each method of procurement. Entries will be shown in parentheses, and must add to the number shown on line B.

C. Number disposed of. -Number of vehicles which have been retired from the fleet, whether or not replacements have been or are being secured. For the past year, this number should include all vehicles actually disposed of during the year, and vehicles still on hand at the end of the past year awaiting receipt of replacement or for which replacement has been received so recently that disposition has not been made. For both the current and budget years, the report will be prepared as if the inventory at the end of the year will not include vehicles on hand awaiting disposal.

Lines C1, C2, C3, and C4 will be completed for the past year only. Indicate the number of vehicles disposed of by each method listed. Entries will be shown in parentheses, and must add to the number shown on line C.

D. Number of replacements. - Number of replacements ordered during the year. For the past year, this will include vehicles ordered but not received. This entry does not affect the size of the fleet. Indicate on lines D1, D2, D3, and D4 the status of the vehicles at the time of the replacement. Entries will be shown in parentheses and must add to the number shown on line D. Any entries shown on line D4 must be explained in a footnote.

E. Net active fleet at end of year. -Number of vehicles available for use during the subsequent fiscal year after all changes pending at the end of the year have been completed. This number will equal line A3, plus line B, minus line C.

Lines E1, E2, and E3 will be completed for the past year only. On line El show those vehicles which are on hand at the end of the year pending either (a) delivery of replacement or (b) disposition as excess. On line E2 show those vehicles for which orders were placed in the past fiscal year but which had not been delivered on June 30. On line E3 show the actual number of vehicles on hand at end of year. This number will equal line E, plus El, minus E2, and should also agree with line 2 on Standard Form 82.

F. Vehicles in foreign countries at end of year not included above.-Number of vehicles in operation in foreign countries at the end of the year.

G. Obligations for vehicles purchased. - Gross amount chargeable to each year's appropriation (purchase order amount) for the purchase of vehicles either as additions or replacements.

H. Cost of vehicles acquired otherwise. Amounts paid for transferred vehicles, and any costs incurred in securing vehicles through forfeiture or transfer (such as storage, transportation, etc.). This amount may be estimated if the actual figure is not available.

I. Proceeds from disposals applied to purchase of replacements. - Amount received from the disposition of old vehicles which is applicable against the purchase of replacements. This amount should be reported in the year for which the appropriation credited is available. Proceeds which are deposited to miscellaneous receipts will be excluded.

85. Public works and improvement programs.

Cost-type budget statements, as described in section 79, will present costs for each project and each time period and will reconcile costs to obligations. Where cost-type statements are not submitted, the estimate for public works and improvements must be accompanied by a schedule showing a breakdown of obligations by project.

Additional details will be submitted when requested by the Bureau of the Budget. The additional details may include a breakdown of each project by features and principal subfeatures, the timing of significant action (such as initial submission of definite plan report, completion of rightof-way acquisition, initial delivery of water or power by units, etc.), and other relevant information.

SUBMISSION OF ANNUAL BUDGET ESTIMATES

There will also be submitted such program schedules, with explanatory text, as are specifically requested by the Bureau of the Budget to show geographical location of projects (where not otherwise shown), the rates of expansibility of programs or projects under conditions to be specified, measures of proposed accomplishment, such as kilowatts of generating capacity installed, acres of land to be irrigated, areas to be provided with flood protection, and specified information of an economic nature.

Agencies will also submit, when requested, feasibility reports showing clearly the engineering basis for water resources projects, their estimated total and annual cost, the expected repayment plan, and the economic need and benefits. These reports should show the annual surplus or deficit for the life of each feature, based on operation of existing facilities as well as on proposed new features, and the major classes of expense and income. In addition, a consolidated statement for each financially integrated system may be required to show the overall payout projected over the amortization period provided under existing legislation.

86. Legislative program.

A statement will be submitted describing the preliminary legislative program of the agency for the forthcoming session of Congress. This statement should include all items of legislation (including repeals of provisions of existing law) which the agency contemplates proposing during the ensuing 12 months. Decisions to include an item should be made in the light of the policies which have been established to govern the preparation of the President's Budget.

The statement should be in three parts:

1. Those items on the President's legislative program which have not yet been enacted. This part is to be limited to proposals which have been specifically identified by the President as a part of his program, or specifically held to be "in accord with the program of the President."

2. Legislative proposals not included in part 1 above which would cause no increase or decrease in budgetary requirements.

3. Legislative proposals not included in part 1 above which would cause an increase or a decrease in budgetary requirements. This part should be arranged to reflect relative priority among the items on the list and also the priority of these items with respect to other portions of the budget submission. It should also indicate the degree of urgency and information as to whether any projected cost could be offset by reductions in other parts of the agency's budget.