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The purpose of outlay monitoring is to reduce the Government's interest costs. Realistic outlay estimates enable Treasury to borrow only amounts actually needed to finance Government activities. OMB Circular A-11, Section 135 provides instructions on monitoring Federal outlays. Agency must prepare monthly plans and submit periodic reports and revisions.

Agency submits outlay plans and reports for each account to the Office of Budget five (5) days before the OMB due date. An initial plan and three updates are required annually as outlined in Section 135.9 of Circular A-11.

Outlay estimates are based on the best current estimate of the amount to be spent by month. The totals are consistent with the President's budget as amended by Congress. In cases where Congressional amendment of the budget is not complete, but some actions are almost certain to occur (e.g., both the Senate and House bills have made the same amendment to the President's budget, but the conference report has not yet been acted upon), agency should discuss the situation with the OMB prior to preparing a revised outlay plan. The monthly breakdown of the totals reflects a realistic assessment of recent trends and the past history of outlay patterns for each account. A statement explaining the assumptions used and any unusual or special circumstances accompanies each outlay plan.

• October 1st - Initial Plan: The initial plan includes data for the final month of the year in progress and monthly estimates for the fiscal year beginning October 1st. Generally, the totals for the upcoming year reflect the 20CY column of the 20BY budget currently pending at OMB and the estimate for September should agree with the last update.
• One week after Budget Transmittal to Congress - 1st Update: The first update includes actuals through December and the plan for the balance of the year. Differences in totals from the initial plan may be due to changes in prior year balances, amendments to the Current Year included in the President's Budget, revised outlay rates included in the President's Budget, pay raise supplementals, etc. Monthly outlay patterns may change from the initial plan due to more realistic assessments of spending patterns and trends.
• May - Update: The second outlay update is scheduled for May and includes actual data through March and monthly estimates from October through September of the Budget Year.
• July - Final Update: The timing of the final update is based on the date of the Mid-session review. 31 U.S.C. 1106 requires that the Mid-session Review be submitted to Congress by July 16th. This final update shows cumulative totals through May and estimates for the balance of the current year and the budget year. The final update may incorporate changes in totals and/or monthly breakouts resulting from completed or "almost certain" Congressional action as discussed above.

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