This part of the glossary has been prepared from the GAO Report PAD 77-9 "Terms Used in the Budgetary Process"* and from instructions used in implementing the information sources and systems inventory.

The terms and definitions used in the inventory process and in the glossary have been developed in cooperation with the Department of the Treasury, the Office of Management and Budget, and the Congressional Budget Office.

These terms are published under the authority of section 202(a)(1) of the Legislative Reorganization Act of 1970 (31 U.S.C., Chapter 22), as amended by Title VIII of the Congressional Budget Act of 1974 (P.L. 93-344). The terms as defined in the Glossary shall be used by all Federal agencies in submitting fiscal, budgetary, and program-related data and information to Congress.

ACTIVITY

Any project, task, or process required to carry out a program. A combination of several activities, such as research and development, training of personnel, and distribution of information, may be elements in a particular program. Activities constituting a program vary with the nature and purpose of the program.

AGENCY

Any department, office, commission, authority, administration, board, Government-owned corporation, or other independent establishment of any branch of the Government of the United States.

AGENCY COMPONENT

A major organizational subdivision of an executive agency. For example, the Army, Navy, Air Force, and Defense Supply Agency are agency components of DOD; the Federal Aviation Administration, the Urban Mass Transportation Administration, and the Federal Highway Administration are agency components of DOT.

AGENCY MISSIONS

Those responsibilities for meeting national needs assigned to a specific agency. Agency missions are expressed in terms of the purpose to be served by the programs authorized to carry out functions or subfunctions which, by law, are the responsibility of that agency and its component organizations. (See section 201 of the Budget and Accounting Act, 1921, as amended. See also Activity and National Needs.)

APPROPRIATION

An authorization by an act of the Congress that permits Federal agencies to incur obligations and to make payments out of the Treasury for specified purposes. An appropriation usually follows enactment of authorizing legislation. An ap

propriation act is the most common means of providing budget authority (see Budget Authority), but in some cases the authorizing legislation itself provides the budget authority. (See Backdoor Authority.) Appropriations do not represent cash actually set aside in the treasury for purposes specified in the appropriation act; they represent limitations of amounts which agencies may obligate during the time period specified in the respective appropriations acts. There are several types of appropriations that are not counted as budget authority, since they do not provide authority to incur additional obligations: Appropriation to liquid contract authority-congressional action to provide funds to pay obligations incurred against contract authority.

• Appropriation to reduce outstanding debt-congressional action to provide funds for debt retirement.

• Appropriation for refund of receipts.

APPROPRIATION ACT

An act under the jurisdiction of the Committees on Appropriations which provides funds for Federal programs. At the time these definitions were published, there were 13 regular appropriation acts. There are also enacted from time to time supplemental appropriations acts.

AUTHORIZATION (Authorizing Legislation)

Basic substantive legislation enacted by Congress which sets up or continues the legal operation of a Federal program or agency either indefinitely or for a specific period of time or sanctions a particular type of obligation or expenditure within a program. Such legislation is normally a prerequisite for subsequent appropriations or other kinds of budget authority to be contained in appropriation acts. It may limit the amount of budget authority to be provided subsequently or may authorize the appropriation of "such sums as may be necessary." In some instances budget authority may be provided in the authorization (see Backdoor Authority), which obviates the need for subsequent appropriations or requires only an appropriation to liquidate contract authority or reduce outstanding debt.

AUTHORIZING COMMITTEE

A standing committee of the House or Senate with jurisdiction over the subject matter of those laws, or parts of laws, that set up or continue the legal operations of Federal programs, agencies, or particular types of obligations within programs. The authorizing committee also has spending responsibility in those instances where the budget authority ("backdoor authority") is also provided in the basic substantive legislation.

BACKDOOR AUTHORITY

Budget authority provided in legislation outside the normal (appropriations committees) appropriations process. The most common forms of backdoor authority are borrowing authority and contract authority. In other cases (e.g., interest on the public debt), a permanent appropriation is provided that becomes available without any current action by the Congress. Section 401 of the Congressional Budget Act of 1974 specifies certain limits on the use of backdoor authority. Examples of accounts that have backdoor authority are the Federal-aid highways trust fund, the Environmental Protection Agency's construction grants, and the social security trust funds. BORROWING AUTHORITY

Statutory authority (substantive or appropriation) that permits a Federal agency to incur obligations and to make payments for specified purposes out of borrowed moneys. Section 401 of the Congressional Budget Act of 1974 limits new borrowing authority (except for certain instances) to such extent or in such amounts as are provided in appropriation acts. Borrowing authority, also called "authority to borrow from the Treasury and the Public," may be one of the following types:

Authority to Borrow from the Treasury

The legislative authority to borrow funds from the Treasury that are realized from the sale of public debt securities.

Authority to Borrow from the Public

The legislative authority to sell agency debt securities.
Authority to Borrow from the Treasury and the Public

This represents a combination of the legislative authorities noted above.

BUDGET ACTIVITY

Categories included in the budget appendix for each appropriation and fund account which identify the services to be performed under the appropriation or fund for which the budget estimate (or request) is being made.

BUDGET AUTHORITY

Authority provided by law to enter into obligations which will result in immediate or future outlays involving Government funds, except that such term does not include authority to insure or guarantee the repayment of indebtedness incurred by another person or government. The basic forms of budget authority are appropriations, contract authority, and borrowing authority. Budget authority may be classified by the period of availability (1-year, multiple-year, no-year), by the timing of congressional action (current or permanent), or by the manner of determining the amount available (definite or indefinite).

CONGRESSIONAL BUDGET

The budget as set forth by congress in a concurrent resolution of the budget. These resolutions shall include:

(1) the appropriate level of total budget outlays and of total new budget authority;

(2) an estimate of budget outlays and new budget authority for each major functional category, for contingencies and for undistributed offsetting receipts based on allocations of the appropriate level of total budget outlays and of total new budget authority;

(3) the amount, if any, of the surplus or deficit in the budget; (4) the recommended level of Federal revenues; and (5) the appropriate level of the public debt. CONTRACT AUTHORITY

A form of budget authority under which contracts or other obligations may be entered into in advance of an appropriation or in excess of amounts otherwise available in a revolving fund. Contract authority must be funded by a subsequent appropriation or the use of revolving fund collections to liquidate the obligations. Appropriations to liquidate contract authority are not classified as budget authority since they are not available for obligation. Section 401 of the Congressional Budget Act of 1974 limits new contract authority, with few exceptions, to such extent or in such amounts as are provided in appropriation acts.

CROSSWALK

The expression of the relationship between one set of classifications and another, such as between appropriation accounts and authorizing legislation or between the budget functional structure and the congressional committee spending jurisdictions.

ENTITLEMENT AUTHORITY

Legislation that requires the payment of benefits to any person or government meeting the requirements established by such law, e.g., social security benefits and veterans' pensions. Section 401 of the Congressional Budget Act of 1974 places certain restrictions on the enactment of new entitlement authority.

FISCAL POLICY

Federal Government policies with respect to taxes, spending, and debt management, intended to promote the Nation's economic goals, particularly with respect to employment, gross national product, price level stability, and equilibrium in balance of payments. The budget process is a major vehicle for determining and implementing Federal fiscal policy.

FISCAL YEAR

Any yearly accounting period, without regard to its relationship to a calendar year. The fiscal year for the Federal Government begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends: e.g., fiscal year 1977 is the fiscal year ending September 30, 1977. (Prior to fiscal year 1977 the fiscal year began on July 1 and ended on June 30.)

Budget Year

The fiscal year for which the budget is being considered; the fiscal year following the current year.

Current Year

The fiscal year in progress.

Past Year

The fiscal year immediately preceding the current year; the last complete fiscal year.

FUNCTION (Functional Classification)

The Congressional Budget Act of 1974 requires the Congress to estimate outlays, budget authority, and tax expenditures for each function. The functional classification is a means of presenting budget authority, outlay, and tax expenditure data in terms of the principal purposes that Federal programs are intended to serve. Each account is generally placed in the single function (e.g., national defense, health) that best represents its major purpose, regardless of the agency administering the program. Functions are generally subdivided into narrower categories called subfunctions.

GOVERNMENT-SPONSORED ENTERPRISES Enterprises with completely private ownership, such as Federal land banks and Federal home loan banks, established and chartered by the Federal Government to perform specialized functions. These enterprises are not included in the budget totals, but financial information on the operations is published in a separate part of the appendix to the President's budget.

GRANTS-IN-AID

For purposes of the budget, grants-in-aid consist of budget outlays by the Federal Government to support State or local programs of governmental service to the public. Grants do not include purchases from State or local governments (i.e., payments for research or support of Federal prisoners). IDENTIFICATION CODE

An 11-digit number assigned to each appropriation or fund account included in the budget. The identification code identifies the agency, the appropriation or fund account symbol, the timing of the transmittal (regular, supplemental), the type of fund (general, special), and the functional classification of each account (see Function).

NATIONAL NEEDS

Those Federal functions which describe the end purposes being served by budget authority, outlays, and tax expenditures, without regard to the means that may be chosen to meet those purposes. National needs, in current budgetary usage, may be assumed to be synonymous with "function." OBJECT CLASSIFICATION

A uniform classification identifying the transactions of the Federal Government by the nature of the goods or services purchased (such as personnel compensation, supplies and materials, or equipment) without regard to the agency involved or the purpose of the programs for which they are used. (General instructions are provided in OMB Circular No. A-12.)

OBLIGATIONS

Amounts of orders placed, contracts awarded, services rendered, or other commitments made by Federal agencies during a given period, which will require outlays during the same or some future period. (See 31 USC 200.)

OFF-BUDGET FEDERAL ENTITIES

Entities, federally owned in whole or in part, whose transactions have been excluded from the budget totals under provisions of law, e.g., the Federal Financing Bank. The fiscal ac

tivities of these entities are not included in either budget authority or outlay totals, but are presented in a separate part of the budget appendix and as memorandum items in various tables in the budget.

OUTLAYS

The amount of checks issued, interest accrued on most of the public debt, or other payments by the Government less refunds and reimbursements due the Government. Total budget outlays consist of the sum of the outlays from appropriations and funds included in the unified budget, less offsetting receipts. The outlays of off-budget Federal entities are excluded from the unified budget under provisions of law, even though these outlays are part of total Government spending. Federal outlays are recorded on the "cash basis of accounting"-with the exception of most interest on the public debt, for which the "accrual basis of accounting" is used.

OVERSIGHT COMMITTEE

The congressional committee charged with general oversight of the operation of an agency or program. In some, but not all, cases the oversight committee for an agency also is the authorizing committee for that agency's programs.

PRESIDENT'S BUDGET

The budget for a particular fiscal year transmitted to the Congress by the President in accordance with the Budget and Accounting Act of 1921, as amended. Some elements of the budget, such as the estimates for the legislative branch and the judiciary, are required to be included without review by the Office of Management and Budget or approval by the President.

PROGRAM

Generally defined as an organized set of activities directed toward a common purpose, objective, or goal undertaken or proposed by an agency in order to carry out responsibilities assigned to it. In practice, however, the term "program" has many usages and thus does not have a well-defined standardized meaning in the legislative process. "Program" has been used as a description for agency missions, activities, services, projects, and processes.

PROJECTIONS

Estimates of budget authority, outlays, receipts, or other budget amounts that extend several years into the future. Projections generally are intended to indicate the budgetary implications of continuing current or currently proposed programs and legislation for an indifinite period of time. These include alternative program and policy strategies and ranges of possible budget amounts. They generally should not be regarded as firm estimates of what actually will occur in future years nor as recommendations regarding future budget decisions. SCOREKEEPING

A procedure used by the Congressional Budget Office for up-to-date tabulations and reports of congressional budget actions on bills and resolutions providing new budget authority and outlays and changing revenues and the public debt limit for a fiscal year. Such reports shall include, but not be limited to, status reports on the effects of these congressional actions to date and of potential congressional actions, and com