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entitled 'Continuing Resolution Mandate to Identify Accounts for Which 
Apportionments Differ From the Current Rate' which was released 
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United States General Accounting Office: 
GAO: 

B-300373: 

December 20, 2002: 

The Honorable C.W. Bill Young: 
Chairman: 
The Honorable David R. Obey: 
Ranking Minority Member: 
Committee on Appropriations: 
House of Representatives: 

The Honorable Robert C. Byrd: 
Chairman: 
The Honorable Ted Stevens: 
Ranking Minority Member: 
Committee on Appropriations: 
United States Senate: 

Subject: Continuing Resolution Mandate to Identify Accounts for Which 
Apportionments Differ From the Current Rate: 

Section 134 (d)(2) of the Fiscal Year 2003 Continuing Resolution, as 
amended by Public Law 107-240, required the Comptroller General to 
identify executive branch accounts for which apportionments made from 
funds appropriated or authority granted by the joint resolution provide 
for a rate of operations that differs from the current rate. 

Current rate is defined by the continuing resolution as having the same 
meaning given to the term by Office of Management and Budget Bulletin 
No. 01-10, i.e., the net amount enacted in FY 2002 (plus supplementals 
and minus rescissions), plus unobligated balances carried forward from 
FY 2001 (if any), minus unobligated balance at the end of FY 2002 (if 
any). This amount is multiplied by the lower of the percentage of the 
year covered by the continuing resolution (the prorata rate), or the 
historical seasonal rate of obligations for the period of the year 
covered by the continuing resolution (the seasonal rate). Furthermore, 
the continuing resolution directs that any unobligated balances carried 
over from Public Law 107-38 (except funds transferred by division B of 
Public Law 107-117) and specific nonrecurring/onetime spending items 
not be included in the "current rate" calculation. 

On December 10, 2002, we briefed your offices on the results of our 
work. This report transmits the materials that formed the basis for 
that briefing. 

Results in Brief: 

Of the one hundred twenty accounts we reviewed, we found the following: 

* Only one account, the salaries and expenses (S&E) account of the 
National Science Foundation (NSF), was not apportioned in accordance 
with the continuing resolution. NSF used a prorated current rate of 
14.94 percent (based on compensable days) instead of 14.52 percent 
(53/365). NSF advised that this was necessary to permit them to meet 
payroll. The Office of Management and Budget (OMB) advised us that NSF 
did not request a written higher apportionment for its S&E account. 
After discussions with GAO, NSF informed us that it has now 
reapportioned continuing resolution funding (October 1 to January 11) 
based on calendar days. 

* For six accounts OMB provided a written higher apportionment (two of 
the accounts were apportioned at higher than the seasonal rate but 
lower than the prorata rate). 

* For most of the other accounts the apportionments were on a prorata 
basis, i.e., 14.52 percent (53/365 days). 

* Six accounts used a lower seasonal rate. 

* For seven accounts the current rate is inapplicable for various 
reasons (see Appendix I of enclosure). For example, for the Department 
of Housing and Urban Development, Public & Indian Housing Programs, 
Housing Certificate Fund, HUD advised that it is using available FY 
2001 unobligated balances. Therefore, it stated that no apportionment 
of FY 2003 budget authority is necessary. 

Appendix I of the enclosure contains lists of the accounts selected for 
review, accounts for which the current rate is not applicable, accounts 
that had seasonal apportionment, and accounts that received a written 
apportionment from OMB. You also requested a list of all accounts that 
had one-time expenditures as listed in OMB Bulletin 02-06. We will 
provide these separately. 

Scope and Methodology: 

As agreed with your staff, we selected a sample of accounts to examine. 
First, we excluded accounts in the legislative and judicial branches as 
outside the scope of the section's coverage. In addition, we excluded 
accounts covered by an enacted appropriation (the Department of Defense 
and the Military Construction Appropriations Acts) and the 
appropriation for the District of Columbia. We then drew a sample of 
the largest discretionary accounts under each subcommittee for each 
agency. This yielded a sample that included all twenty-four Chief 
Financial Officer agencies. Committee staff added other accounts of 
particular interest. This yielded one hundred twenty accounts in thirty-
one agencies. 

We requested documents, interviewed knowledgeable officials, compared 
the agencies' math with our math, and followed up any differences with 
agency officials. Generally, the officials provided technical 
clarifications that resolved or explained the differences. 

Supplemental appropriations, one-time spending items, and historical 
seasonal rates were not independently verified. We performed our work 
on this assignment from October to December 2002. Since we received 
information directly from the agencies and discussed any differences 
directly with agency staff, we did not seek written comments. A 
detailed description of our methodology is included in the enclosure. 

This work was done under the direction of Susan A. Poling, Associate 
General Counsel, and Susan Irving, Director for Federal Budget 
Analysis, Strategic Issues. If you or your staff have any questions on 
the matters discussed in this report, you may contact them at 202-512-
5644 or 202-512-9142. Major contributors to this report were Carlos 
Diz, Denise Fantone, Jacqueline Nowicki, Hannah Laufe, and Alice 
Feldesman. 

Sincerely yours, 

Signed by: 

Anthony H. Gamboa: 
General Counsel: 

Enclosure: 

Continuing Resolution: 
Current Rate Report: 

House & Senate Appropriations Committees: 

Continuing Resolution (CR) Mandate: Requirement: 

Section 134(2) of the Fiscal Year 2003 Continuing Resolution, Public 
Law 107-229, as amended by Public Law 107-240, requires the Comptroller 
General to identify executive branch accounts for which apportionments 
made from funds appropriated or authority granted by the joint 
resolution provide for a rate of operations that differs from the 
current rate, within the meaning of sections 101 and 105, and report 
findings to the Committees on Appropriations. 

Scope: Account Coverage: 

* We excluded accounts covered by enacted appropriations [Military
Construction and Department of Defense]; D.C., Legislative & Judicial
Branches. 

* We drew a sample of largest discretionary accounts under each 
subcommittee for each agency; included all 24 CFO agencies plus others. 

* Appropriations Committee staff added other accounts of particular 
interest. 

* Results: 120 accounts in 31 agencies. [see Appendix I for list]. 

Results: What we found: 

* Only one account, the salaries and expenses account of the National 
Science Foundation (NSF), was not apportioned in accordance with the 
continuing resolution. NSF used a prorated current rate of 14.94% based 
on compensable days instead of 14.52% (53/365). NSF advised us that 
this was necessary to permit them to meet payroll. OMB advised us that 
NSF did not request a written higher apportionment for its S&E account 
but would have provided one if necessary to permit NSF to meet payroll. 
After discussions with GAO, NSF informed us that it has now 
reapportioned continuing resolution funding (October 1 to January 11) 
based on calendar days. 

*For six accounts OMB provided a written higher apportionment (two of 
the accounts were apportioned at higher than the seasonal rate but 
lower than the prorata rate). 

* For most of the other accounts the apportionments were calculated on 
a prorata basis, i.e., 14.52% (53/365 days). 

* Six accounts used a seasonal rate for their automatic apportionments 
(see Appendix I). 

* For seven accounts the current rate appeared not to be applicable for 
various reasons, e.g., Housing and Urban Development [using 2001 
unobligated balances; no 2003 continuing resolution apportionment 
necessary], civil service retirement & disability fund [administrative 
funds transferred to S&E account and apportioned there] (see Appendix I 
for complete list of these accounts). 

Methodology: Process: 

* Sent letter to each department/agency head describing mandate, listing
accounts to be covered, requesting point of contact for each account,
documents, and the agency's "CR math"-- i.e., how agency computed its
current rate. 

* Conducted structured phone interview with agency contact for each 
account. 

* Since we received information directly from the agencies and 
discussed any differences directly with agency staff, we did not seek 
written comments. 

* GAO staff analyzed documents submitted & independently calculated the
current rate for each account. This calculation was compared to the CR 
math provided by agency. Also examined interviews to check for 
consistency. 

* Made follow-up phone calls to agencies to clarify any differences in 
CR math between agency documents and GAO calculations. 

Agency Cooperation: 

* Agencies were largely cooperative. For a few it took more effort and
persistence to obtain information:
- GSA, USDA & Transportation required repeated requests & persistent
follow up to get documents & CR math; 
- AID sent documents but knowledgeable staff were unavailable in a 
timely manner. 

Limitations: 

Given the way Continuing Resolutions work, particularly this fiscal 
year's CR, there are limitations in this methodology: 

* Agencies provided SF 132s for unobligated balances carried over from 
FY `02 to '03 but no documentation for what agencies describe as 
current actual unobligated balances. 

* Unless an agency is requesting a variance, the OMB Bulletin 
authorizes an automatic apportionment in lieu of an approved SF 132. 

* Supplementals, one-time spending items, and historical seasonal rates 
were not independently verified. 

* Across-the-board rescissions of administrative and travel funds were 
not independently verified. 

Results: CR Math: 

* Where there was a difference between GAO document review and agency 
CR math, GAO called to obtain an understanding of the difference: 
- Note: difference of $1 million or less was considered de minimus.
- In general, professional budget staff in agencies were familiar with
rules. 

CR Math: Typical Differences: 

* Differences between GAO document review and agency math were found 
most frequently in these categories: 
- Calculation of estimated unobligated balances carried over from
FY '01 into '02.
- Calculation of estimated unobligated balances carried over from
FY `02 into '03.
- Executive branch-wide rescissions made in fiscal year 2002
specified by agencies. 

* Missing documents not transmitted in first response to GAO request
for documents often contained clarifying information. 

One-Time Exclusions: 

There were several instances in which agencies excluded one-time, non-
recurring items from their CR math calculations. These one-time
exclusions were not independently verified. GAO will provide a list to 
the Appropriation Committees separately. 

Appendix I: Account Information: 

* Accounts selected for review; 
* Accounts for which current rate calculation is inapplicable; 
* Accounts for which seasonal apportionment was used; 
* Accounts which received written apportionment from OMB. 

Appendix I: Original List of Accounts: 

Department/Agency: Interior; 
Bureau: NPS; 
Account: Operation of the national park system. 

Department/Agency: Interior; 
Bureau: Office of the Special Trustee for:
Account: Office of Special Trustee for American: 

Department/Agency: Interior; 
Bureau: USGS; 
Account: Surveys, investigations, & research. 

Department/Agency: Justice; 
Bureau: FBI; 
Account: Salaries and expenses. 

Department/Agency: Justice; 
Bureau: Federal Prison System; 
Account: Salaries and expenses; 

Department/Agency: Justice; 
Bureau: INS; 
Account: Immigration enforcement. 

Department/Agency: Justice; 
Bureau: Legal Activities and U.S. Marshals; 
Account: Salaries and expenses, U.S. Attorneys. 

Department/Agency: Justice; 
Bureau: Office of Justice Programs; 
Account: State & Local Law Enforcement Assistance - Local law 
enforcement block grants. 

Department/Agency: Justice; 
Bureau: [Empty]; 
Account: Community Oriented Policing Services -	Public safety & 
community policing grants. 

Department/Agency: Justice; 
Bureau: [Empty]; 
Account: Justice Assistance. 

Department/Agency: Labor; 
Bureau: Departmental management; 
Account: Salaries and expenses. 

Department/Agency: Labor; 
Bureau: ETA; 
Account: Training & employment services. 

Department/Agency: Energy; 
Bureau: [Empty]; 
Account: Fossil energy research and development. 

Department/Agency: HHS; 
Bureau: FDC; 
Account: Salaries and expenses. 

Department/Agency: HHS; 
Bureau: CDC; 
Account: Disease control, research and training. 

Department/Agency: HHS; 
Bureau: Agency for Health Care, Research & Quality; 
Account: Health care, research & quality. 

Department/Agency: HHS; 
Bureau: Administration on Aging; 
Account: Aging services programs. 

Department/Agency: HHS; 
Bureau: NIH; 
Account: Buildings and Facilities. 

Department/Agency: HHS; 
Bureau: NIH; 
Account: NIAID. 

Department/Agency: HHS; 
Bureau: ACF; 
Account: Children & families services programs. 

Department/Agency: HHS; 
Bureau: [Empty]; 
Account: Low income home energy assistance. 

Department/Agency: HHS; 
Bureau: HRSA; 
Account: Health resources & services. 

Department/Agency: HHS; 
Bureau: Departmental Management; 
Account: Public health &social services -emergency fund. 

Department/Agency: HUD; 
Bureau: Public & Indian Housing	Programs; 
Account: Housing certificate fund. 

Department/Agency: HUD; 
Bureau: [Empty]; 
Account: Public housing operating fund. 

Department/Agency: HUD; 
Bureau: Community Planning & Development; 
Account: Community development block grants. 

Department/Agency: HUD; 
Bureau: [Empty]; 
Account: Homeless assistance grants. 

Department/Agency: Interior; 
Bureau: Bureau of Reclamation; 
Account: Water & related resources. 

Department/Agency: Interior; 
Bureau: [Empty]; 
Account: Central Valley project restoration fund. 

Department/Agency: Interior; 
Bureau: BIA; 
Account: Operation of Indian programs. 

Department/Agency: USDA; 
Bureau: Food & Nutrition Service; 
Account: Special supplemental nutrition program for women, infants, & 
children (WIC). 

Department/Agency: USDA; 
Bureau: Agricultural Research Service; 
Account: Salaries and expenses. 

Department/Agency: USDA; 
Bureau: Farm Service Agency; 
Account: Salaries and expenses. 

Department/Agency: USDA; 
Bureau: [Empty]; 
Account: Agricultural credit insurance fund program. 

Department/Agency: USDA; 
Bureau: Animal and Plant Health Inspection; 
Account: Salaries and expenses. 
	
Department/Agency: USDA; 
Bureau: Natural Resource Conservation; 
Account: Conservation operations. 

Department/Agency: USDA; 
Bureau: Rural Housing Service; 
Account: Rural housing insurance fund programs. 

Department/Agency: USDA; 
Bureau: Foreign Assistance Programs; 
Account: Public Law 480 Title II grants. 

Department/Agency: USDA; 
Bureau: Forest Service; 
Account: Wildlife fire management. 

Department/Agency: USDA;
Bureau: Forest Service; 
Account: National forest system. 

Department/Agency: USDA;
Bureau: Forest Service; 
Account: Capital improvement and maintenance. 

Department/Agency: Commerce; 
Bureau: [Empty]; 
Account: Procurement, acquisition and construction. 

Department/Agency: Commerce; 
Bureau: [Empty]; 
Account: Operations, research and facilities. 

Department/Agency: Commerce; 
Bureau: Bureau of the Census; 
Account: Periodic censuses and programs. 

Department/Agency: Commerce; 
Bureau: International Trade Administration; 
Account: Operations & administration. 

Department/Agency: Education; 
Bureau: Office of Student Financial Assistance; 
Account: Student financial assistance. 

Department/Agency: Education; 
Bureau: Office of Elementary & Secondary Education; 
Account: Impact Aid. 

Department/Agency: Education; 
Bureau: Departmental Management; 
Account: Program administration. 

Department/Agency: Energy; 
Bureau: NSSA; 
Account: Weapons activities. 

Department/Agency: Energy; 
Bureau: Environmental and Other Defense; 
Account: Defense environmental restoration and waste. 

Department/Agency: Energy; 
Bureau: Energy Programs; 
Account: Science. 

Department/Agency: Energy; 
Bureau: Energy Programs; 
Account: Energy conservation. 

Department/Agency: Labor; 
Bureau: [Empty]; 
Account: Community service employment for older Americans. 

Department/Agency: Labor; 
Bureau: OSHA; 
Account: Salaries and expenses. 

Department/Agency: State; 
Bureau: Administration of Foreign Affairs; 
Account: Diplomatic & consular programs. 

Department/Agency: State; 
Bureau: [Empty]; 
Account: Embassy security construction. 

Department/Agency: State; 
Bureau: International Organizations & Conferences; 
Account: Contributions to international organizations. 

Department/Agency: State; 
Bureau: Other; 
Account: International narcotics control and law enforcement. 

Department/Agency: State; 
Bureau: [Empty]; 
Account: Nonproliferation, antiterrorism, demining, and related 
programs. 

Department/Agency: State; 
Bureau: [Empty]; 
Account: International organizations and programs. 

Department/Agency: State; 
Bureau: [Empty]; 
Account: Andean Counter Drug Initiative. 

Department/Agency: State; 
Bureau: [Empty]; 
Account: Migration and Refugee Assistance. 

Department/Agency: Transportation; 
Bureau: Maritime Administration; 
Account: Operations & training. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Title XI loans. 

Department/Agency: Transportation; 
Bureau: FAA; 
Account: Trust fund share of FAA operations. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Facilities & equipment. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Grants-in-aid for airports. 

Department/Agency: Transportation; 
Bureau: Coast Guard; 
Account: Operating expenses. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Acquisitions, construction, & improvements. 

Department/Agency: Transportation; 
Bureau: Office of the Secretary; 
Account: Payments to air carriers. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Salaries and expenses. 

Department/Agency: Transportation; 
Bureau: Federal Highway Administration; 
Account: Federal-aid highways (Ob limits). 

Department/Agency: Transportation; 
Bureau: Federal Railroad Administration; 
Account: Capital grants to National Railroad Passenger Corporation. 

Department/Agency: Transportation; 
Bureau: Federal Transit Administration; 
Account: Capital Investment Grants. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Formula Grants. 

Department/Agency: Transportation; 
Bureau: RSPA Administration; 
Account: Trust fund share of pipeline safe. 

Department/Agency: Transportation; 
Bureau: General Provisions; 
Account: Surface transportation projects - Title III General Provisions 
§ 330 of FY2002 Appropriation. 

Department/Agency: Transportation; 
Bureau: Federal Motor Carrier Safety Administration; 
Account: Motor carrier safety -limitation on administrative expenses. 

Department/Agency: Transportation; 
Bureau: [Empty]; 
Account: Border enforcement program. 

Department/Agency: Transportation; 
Bureau: Transportation Security Administration; 
Account: Salaries & Expenses. 

Department/Agency: Treasury; 
Bureau: IRS; 
Account: Processing, assistance, & management. 

Department/Agency: Treasury; 
Bureau: IRS. 
Account: Tax law enforcement. 

Department/Agency: Treasury; 
Bureau: U.S. Customs Service; 
Account: Salaries & Expenses. 

Department/Agency: VA; 
Bureau: VHA; 
Account: Medical care. 

Department/Agency: VA; 
Bureau: Departmental Administration; 
Account: General operating expenses. 

Department/Agency: VA; 
Bureau: VHA; 
Account: Medical and prosthetic research. 

Department/Agency: AID; 
Bureau: AID; 
Account: Economic support fund. 

Department/Agency: AID; 
Bureau: AID; 
Account: International Disaster Assistance. 

Department/Agency: AID; 
Bureau: AID; 
Account: Child survival and disease programs. 

Department/Agency: AID; 
Bureau: AID; 
Account: Sustainable development assistance programs. 

Department/Agency: Corporation for National & Community Service; 
Bureau: Corp. for National & Community Service 86; 
Account: National & community service programs, operating expenses. 

Department/Agency: Corporation for Public Broadcasting; 
Bureau: Corporation for Public Broadcasting; 
Account: Corporation for Public Broadcasting - digital program 
conversion. 

Department/Agency: Corps of Engineers; 
Bureau: Corps of Engineers; 
Account: Construction, general. 

Department/Agency: EPA; 
Bureau: EPA; 
Account: State and tribal assistance grants; 

Department/Agency: EPA; 
Bureau: [Empty]; 
Account: Environmental programs and management. 

Department/Agency: EPA; 
Bureau: [Empty]; 
Account: Hazardous substance superfund. 

Department/Agency: EXOP; 
Bureau: Special Assistance to the President & the Official Residence of 
the Vice-President; 
Account: Salaries and expenses. 

Department/Agency: EXOP; 
Bureau: [Empty]; 
Account: Operating expenses. 

Department/Agency: EXOP; 
Bureau: Office of Administration; 
Account: Salaries and expenses. 

Department/Agency: EXOP; 
Bureau: OMB; 
Account: Salaries and expenses. 

Department/Agency: FEMA; 
Bureau: FEMA; 
Account: Disaster relief. 

Department/Agency: FEMA; 
Bureau: [Empty]; 
Account: Emergency management planning & assistance. 

Department/Agency: FEMA; 
Bureau: [Empty]; 
Account: Salaries and expenses. 

Department/Agency: FCC; 
Bureau: FCC; 
Account: Salaries and expenses. 

Department/Agency: GSA; 
Bureau: Real Property Activities; 
Account: Federal building fund. 

Department/Agency: GSA; 
Bureau: General Activities; 
Account: Operating expenses. 

Department/Agency: GSA; 
Bureau: [Empty]; 
Account: Policy & citizen services. 

Department/Agency: NASA; 
Bureau: NASA; 
Account: Science, aeronautics & technology. 

Department/Agency: NASA; 
Bureau: [Empty]; 
Account: Human space flight. 

Department/Agency: NSF; 
Bureau: NSF; 
Account: Research & related activities. 

Department/Agency: NSF; 
Bureau: [Empty]; 
Account: Education and human resource. 

Department/Agency: NSF; 
Bureau: [Empty]; 
Account: Salaries and expenses. 

Department/Agency: NRC; 
Bureau: NRC; 
Account: Salaries and expenses. 

Department/Agency: OPM; 
Bureau: OPM; 
Account: Salaries and expenses. 

Department/Agency: OPM; 
Bureau: [Empty]; 
Account: Civil service retirement and disability fund. 

Department/Agency: SBA; 
Bureau: SBA; 
Account: Salaries and expenses. 

Department/Agency: SBA; 
Bureau: [Empty]; 
Account: Business loan program account. 

Department/Agency: SEC; 
Bureau: SEC; 
Account: Salaries and expenses. 

Department/Agency: SSA; 
Bureau: SSA; 
Account: Limitation on administrative expenses. 

Department/Agency: DOD; 
Bureau: International Security Assistance; 
Account: Foreign military financing program. 

[End of Appendix I] 

Continuing Resolution (CR) Mandate: Requirement: 

Section 134(2) of the Fiscal Year 2003 Continuing Resolution, Public 
Law 107-229, as amended by Public Law 107-240, requires the Comptroller 
General to identify executive branch accounts for which apportionments 
made from funds appropriated or authority granted by the joint 
resolution provide for a rate of operations that differs from the 
current rate, within the meaning of sections 101 and 105, and report 
findings to the Committees on Appropriations. 

Scope: Account Coverage: 

* We excluded accounts covered by enacted appropriations [Military
Construction and Department of Defense]; D.C., Legislative & Judicial
Branches. 

* We drew a sample of largest discretionary accounts under each 
subcommittee for each agency; included all 24 CFO agencies plus others. 

* Appropriations Committee staff added other accounts of particular 
interest. 

* Results: 120 accounts in 31 agencies. [see Appendix I for list]. 

Results: What we found: 

* Only one account, the salaries and expenses account of the National 
Science Foundation (NSF), was not apportioned in accordance with the 
continuing resolution. NSF used a prorated current rate of 14.94% based 
on compensable days instead of 14.52% (53/365). NSF advised us that 
this was necessary to permit them to meet payroll. OMB advised us that 
NSF did not request a written higher apportionment for its S&E account 
but would have provided one if necessary to permit NSF to meet payroll. 
After discussions with GAO, NSF informed us that it has now 
reapportioned continuing resolution funding (October 1 to January 11) 
based on calendar days. 

* For six accounts OMB provided a written higher apportionment (two of 
the accounts were apportioned at higher than the seasonal rate but 
lower than the prorata rate). 

* For most of the other accounts the apportionments were calculated on 
a prorata basis, i.e., 14.52% (53/365 days). 

* Six accounts used a seasonal rate for their automatic apportionments 
(see Appendix I). 

* For seven accounts the current rate appeared not to be applicable for 
various reasons, e.g., Housing. and Urban Development [using 2001 
unobligated balances; no 2003 continuing resolution apportionment 
necessary], civil service retirement & disability fund [administrative 
funds transferred to S&E account and apportioned there] (see Appendix I 
for complete list of these accounts). 

Methodology: Process: 

* Sent letter to each department/agency head describing mandate, listing
accounts to be covered, requesting point of contact for each account,
documents, and the agency's "CR math"-- i.e., how agency computed its
current rate. 

* Conducted structured phone interview with agency contact for each 
account. 

* Since we received information directly from the agencies and 
discussed any differences directly with agency staff, we did not seek 
written comments. 

* GAO staff analyzed documents submitted & independently calculated the
current rate for each account. This calculation was compared to the CR 
math provided by agency. Also examined interviews to check for 
consistency. 

* Made follow-up phone calls to agencies to clarify any differences in 
CR math between agency documents and GAO calculations. 

Agency Cooperation: 

* Agencies were largely cooperative. For a few it took more effort and
persistence to obtain information:
- GSA, USDA &. Transportation required repeated requests & persistent
follow up to get documents & CR math.
- AID sent documents but knowledgeable staff were unavailable in a 
timely manner. 

Limitations: 

Given the way Continuing Resolutions work, particularly this fiscal 
year's CR, there are limitations in this methodology: 

* Agencies provided SF 132s for unobligated balances carried over from 
FY `02 to '03 but no documentation for what agencies describe as 
current actual unobligated balances. 

* Unless an agency is requesting a variance, the OMB Bulletin 
authorizes an automatic apportionment in lieu of an approved SF 132. 

* Supplementals, one-time spending items, and historical seasonal rates 
were not independently verified. 

* Across-the-board rescissions of administrative and travel funds were 
not independently verified. 

Results: CR Math: 

* Where there was a difference between GAO document review and
agency CR math, GAO called to obtain an understanding of the
difference: 
- Note: difference of $1 million or less was considered de minimus.
- In general, professional budget staff in agencies were familiar with
rules. 

CR Math: Typical Differences: 

* Differences between GAO document review and agency math were
found most frequently in these. categories: 
- Calculation of estimated unobligated balances carried over from
FY '01 into '02.
- Calculation of estimated unobligated balances carried over from
FY `02 into '03.
- Executive branch-wide rescissions made in fiscal year 2002
specified by agencies. 

* Missing documents not transmitted in first response to GAO request
for documents often contained clarifying information. 

One-Time Exclusions: 

There were several instances in which agencies excluded one-time, non-
recurring items from their CR math calculations. These one-time
exclusions were not independently verified. GAO will provide a list to 
the Appropriation Committees separately. 

Appendix I: Account Information: 

* Accounts selected for review; 
* Accounts for which current rate calculation is inapplicable; 
* Accounts for which seasonal apportionment was used; 
* Accounts which received written apportionment from OMB. 

Appendix I: Original List of Accounts: 

Appendix I: Accounts for which current rate calculation is
inapplicable: 

* Corporation for Public Broadcasting/Digital program conversion 
account: By letter dated November 13, 2002, CPB requested a waiver from 
OMB apportionment of its payment at the current rate and advised OMB 
that if it were to operate with a normal apportionment under the terms 
of the CR its efforts to meet a May deadline for its digital program 
conversion would be in serious jeopardy. It requested an apportionment 
of the fiscal year 2002 level of $25 .million. CPB was recently advised 
by telephone that OMB had apportioned only $7 million. 

* Department of Transportation, Surface transportation projects - Title 
III General Provisions $ 330 of FY2002 Appropriation: according to
Transportation, no fiscal year 2003 appropriations are provided for 
these projects. 

* HUD, Public & Indian Housing Programs/Housing certificate fund: HUD
used available FY2001 unobligated balances. No apportionment of fiscal
year 2003 budget authority necessary. 

* HUD, Public & Indian Housing Programs/Public housing operating fund:
HUD used available FY2001 unobligated balances. No apportionment of
fiscal year 2003 budget authority necessary. 

* HUD, Community Planning & Development/Community development block 
grants: HUD used available FY2001 unobligated balances. No 
apportionment of fiscal year 2003 budget authority necessary. 

* HUD, Community Planning & Development/Homeless assistance grants: HUD 
used available FY2001 unobligated balances. No apportionment of fiscal 
year 2003 budget authority necessary. 

* Civil Service Retirement & Disability Fund: Since this is a trust 
fund, only the amount for administrative expenses is apportioned. This 
amount was transferred and is apportioned under OPM's Salaries and 
expenses account. 

Appendix I: Seasonal Rate Accounts: 

Commerce/NOAA, Procurement, acquisition & construction (9.4%); 
Commerce/NOAA, Operations, research & facilities (7.9%); 
Commerce/Census, Periodic censuses & programs (10.1%); 
Labor/Departmental Management, Salaries & expenses (9.68%); 
Labor/ ETA, Community Service Employment for Older Americans (0%); 
Labor/ ETA, Training and employment services (0%). 

Appendix I Written Higher Apportionment from OMB: 

* VA/Medical Care: Based on pro-rata share plus apportionment of 
unobligated balances because account spends more in first quarter than 
other quarters. 

* Commerce/ITA, Operations &. Administration: apportionments for various
ITA components ranged from 7.6% to 12.7%; the higher apportionment was
necessary because the rate of operations is above the seasonal rate but 
below the flat rate (pro-rata share), to cover increased personnel 
costs associated with FY 2002 hiring, travel, and International 
Cooperative Administrative Support (ICASS). 

* State/Contributions.to International Organization (67%). 

* USDA/Food & Nutrition Service, Women, Infants and Children Program
(25.21%). 

* USDA/Rural Housing Service, Rural housing insurance fund program 
account: (14.24%); the higher apportionment was necessary because the 
rate of operations is above the seasonal rate but below the flat rate 
(pro-rata share). 

* HHS, Low Income Home Energy Assistance Program (38%). 

Appendix I: Definitions, Legal Language: 

* What is current rate? 
* OMB Bulletin 01-10; 
* GAO Current Rate Interpretations; 
* Formula for Current Rate. 

Appendix I: Definitions, Legal Language Definition of Current Rate: 

* Sec. 101 Appropriates "Such amounts as may be necessary under the
authority and conditions provided in the applicable appropriations Act
for fiscal year 2002 for continuing projects or activities including the
costs of direct loans and loan guarantees (not otherwise specifically
provided for in this joint resolution) which were conducted in fiscal
year 2002, at a rate for operations not exceeding the current rate, and
for which appropriations, funds, or other authority was made
available" in the fiscal year 2002 appropriations acts. 

Furthermore, section 105 of the CR defines "rate for operations not 
exceeding the current rate" as having the "meaning given such term 
(including supplemental appropriations and rescissions) in the 
attachment to Office of Management and Budget. Bulletin No. 01-10 
entitled `Apportionment of the Continuing Resolution(s) for Fiscal
Year 2002' and dated September 27, 2001; applied by substituting `FY 
2002' for `FY 2001' each place it appears..." 

This current rate "does not include any unobligated balance of funds
appropriated in Public Law 107-38 and carried forward to fiscal year 
2002, other than funds transferred by division B of. Public Law 107-
117. 

CR Reduces appropriations by one-time, non-recurring items listed in
Attachment C, OMB Bulletin dated 10-04-02. 

Appendix I: Definitions, Legal Language Definition of Current Rate -
OMB Bulletin 01-10: 

* OMB Bulletin 01-10 instructs agencies that the rate of operations not
exceeding the current rate, is to be calculated as follows: 
- take the net amount enacted in FY 2002, i.e., add any supplemental
appropriations and subtract any rescissions; 
- add the unobligated balance carried forward to FY 2001 (if any), and; 
- subtract the unobligated balance at the end of FY 2002 (if any). 

* The OMB Bulletin further instructs agencies to calculate the amount 
automatically apportioned through the specified period covered by the 
CR by multiplying the rate (amount) provided by the CR by the lower of: 
- the percentage of the year covered by the CR, or; 
- the historical seasonal rate of obligations for the period of the 
year covered by the CR. 

* If a program requires an amount different from the total amount 
automatically apportioned, an agency must request a written 
apportionment. 

Appendix I: Definitions, Legal Language - The Formula for Current
Rate: 

Unobligated balances at the end of FY2001: 
Plus: 
Appropriations for FY2002: 
Plus: 
Supplementals for FY2002 (including the 2nd $20b.-(tranche 3) of the 
9/11 Emergency Supp.): 
Minus: 
Unobligated balances from the 1St $20b.(tranches 1&2) of the 9/11 
Emergency Supp.): 
Minus: 
Rescissions in FY2002: 
Minus: 
One-Time Expenditures (per OMB list): 
Minus: 
Unobligated balances that carry over from FY2002: 
Multiplied by either (014.52 % or (2) Seasonal rate. 

[End of enclosure] 

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