Enacted appropriations and other budgetary legislation may vary in the level of detail they provide regarding how agencies should spend the funds that have been provided. Even when the purpose of appropriations is specified in great detail, agencies may be provided with some flexibility to make budgetary adjustments throughout the fiscal year. These adjustments may be necessary due to changing or unforeseen circumstances. In some instances, agencies are provided with transfer authority (i.e., authority to shift funds from one appropriations or fund account to another). In addition, agencies are generally permitted to shift funds from one purpose to another within an appropriations account. This practice, usually referred to as "reprogramming," is subject to statutorily imposed limitations.
Reprogramming process is to realign funds within an appropriation or fund account to use for different purposes than those contemplated at the time of appropriation (for example, obligating budgetary resources for a program, project or activity different from the one originally planned).
A reprogramming request package consists of:
An agency may only transfer budgetary resources if Congress has provided the agency with the statutory authority to do so. Transfer authority may be provided either in authorizing statutes or in appropriations acts. Transfer authority may be broad or narrow in scope, and may apply to all agencies, to select agencies, or only to a single agency. Transfer authority may be limited to a specific dollar amount. Alternatively, transfer authority may be provided for an indefinite amount, but with specific restrictions on the circumstances under which the authority may be used.
Reprogramming is generally permitted unless otherwise restricted or prohibited by statute. An agency's ability to reprogram may be restricted by including "limiting provisions" within its annual appropriations acts or other statutes. In addition, an agency may not reprogram funds if doing so would violate any other provisions of law.
In general, transferred and reprogrammed funds are subject to any limitations or conditions that were imposed by their original appropriations act. Statutes that provide transfer and reprogramming authority will commonly impose additional limitations or conditions, such as "not-to-exceed" limits, which place a cap on the amount of funds that may be transferred or reprogrammed, and "purpose" restrictions, which prohibit transferred or reprogrammed funds from being used for certain activities.
Agencies may be required by statute to notify Congress prior to (or shortly after) transferring or reprogramming funds. Such requirements usually involve notification to the relevant House and Senate Appropriations Committees a certain number of days (often 15, 30, or 45 calendar days) prior to transferring or reprogramming funds. Typically, all account-to-account transfers will require prior notification to Congress. Reprogramming actions generally require prior notification only when they exceed a certain dollar amount or "threshold."
When done so in accordance with the applicable authorities and procedures, transferring or reprogramming funds may enable agencies to operate more effectively or efficiently, and in a manner that is consistent with congressional intent. When transfers or reprogramming actions deviate from the applicable authorities, procedures, and limitations, however, it is possible that funds may be used in ways contrary to congressional intent.
Transfers (i.e., the shift of budgetary resources from one appropriations or fund account to another) typically involve movement of funds within an agency or department, but may also involve movement of funds between two or more agencies or departments.8 An agency or department may only transfer budgetary resources if it has been provided the statutory authority to do so. A general restriction on transfers may be found in 31 U.S.C. Section 1532, which provides, in part, "An amount available under law may be withdrawn from one appropriation account and credited to another or to a working fund only when authorized by law."9 According to the Government Accountability Office (GAO), all transfers are prohibited without statutory authority, including "(1) transfers from one agency to another, (2) transfers from one account to another within the same agency, and (3) transfers to an interagency or intra-agency working fund. In each instance statutory authority is required."
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