Decision Concerning the President's Sequestration, Under the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99-177), of Funds From a Permanent Appropriations Account of the Forest Service

B-221498.32: May 5, 1986

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In response to a congressional request, GAO reviewed the Office of Management and Budget's (OMB) analysis of the sequestration of Forest Service funds under the Balanced Budget and Emergency Deficit Control Act, specifically which budgetary resources of the Forest Service permanent appropriations account are subject to the fiscal year (FY) 1986 sequestration process. GAO noted that: (1) OMB determined that two of the three budget account activities have been obligated; and (2) OMB has, therefore, increased the percentage reduction required for the remaining budget account activity. GAO noted that budgetary resources should be attributable to the year in which receipts are collected. GAO determined that: (1) it would inform OMB of its views; (2) it would request that OMB reexamine the treatment given to the account; and (3) if no further action is taken to release funds sequestered from FY 1985 budgetary resources of one of the accounts, GAO would issue a report to Congress.

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