Deltek Insight 2011: The Ins and Outs of the Federal Budget Process

BD-102:The Ins and Outs of the Federal Budget Process

Insight 2011

Presented by Kevin M. Plexico

Project

Manufacturing

Human

Resources

Project

Management

Financial

Management

Enabling Success

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Winning More

Business

Reducing the Cost

of Compliance

Increasing Project

Visibility

Improving Cash

Flow

CRM and Capture ManagementTeaming

SolutionsMarket Intelligence

Business Performance Management

Know More

Win More

Do More

Project

Manufacturing

Human

Resources

Project

Management

Financial

Management

Win More

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CRM and Capture ManagementTeaming

SolutionsMarket IntelligenceWin More

Do More

Opportunity

Identification

Customer &

Pipeline MgmtTeaming

Proposal

Development

Business Performance Management

Know More

4

Agenda• Federal Budget Terminology

• Components of the Budget

• Budget Process Overview

• The OMB Role in the Process

• Congressional Role in the Process

• After the Appropriation is Enacted

Understanding the Government’s Budget Lingo

Federal Term Commercial Sector Equivalent

Appropriation Company Budget Approval

Budget Authority Budget

Obligation Booking/Sales Order or Commitment

Outlay Cash Payment

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• Appropriation – provides agency or program with a specified amount of budget authority.

• Conducted annually for the coming fiscal year• Funds must be obligated during the fiscal year

• Budget Authority -- legal authority to incur financial obligations that will result in immediate or future outlays

• Obligations -- commitments to make payments, immediately or in the future.

• Represents the best indicator of actual spending.

• Outlays – payments, typically by a Treasury check

Major Components of the Federal Budget

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Source: President’s Budget FY 2012

• OMB dictates format/expectations

• Agencies produce internal budgets

• Submission by the President to Congress

Formulation

• Appropriations committee begins work

• Congress conducts hearings

• Congress passes legislation to appropriate

Appropriation• OMB/Agencies reconcile

to request levels

• Agencies execute at appropriated level

Execution

7

Budget Process

A Case Study in FY 2011

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Source: FedSources analysis of

GFY2011 President’s Budget,

Congressional budget resolutions,

appropriation legislation, and

federal spending

Roles & Responsibilities

9

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OMB and Budgetary Authority

• Guides/assists in President’s budget preparation

• Supervises federal budget administration in Executive Branch

• Assesses and sets priority for competing funding demands

among agencies

• Evaluates the effectiveness of agency programs, policies, and

procedures, including Recovery Act spending

• Enforces rules & regulations and sets policy consistent with

• Legislation

• Regulations

• Administrative Agenda

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Congressional Role - Budget and Appropriations Committees

Appropriations Bills Conference reports• Adopt conference reports and send to President for signature

The White House• President’s Budget

House & Senate Appropriations CommitteesViews & Estimates

• Full Committees make 302(b) sub allocations to their respective subcommittees

Separate House & Senate Appropriations Bills & SubcommitteesAgriculture & Rural Development District of Columbia

Commerce, Justice & Science Energy and Water

Military Construction & Vet Affairs Homeland Security

State & Foreign Operations Interior and Environment

Transportation and HUD Labor, HHS, Education

Legislative branch Financial Services & General Govt

Defense

House & Senate Appropriations Subcommittees• Hold Hearings

Artifacts to Monitor the Budget

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• OMB Circular A-11

• President’s Budget

• IT Budget - Exhibit 53 & Exh 300s

• Agency Budget documents & summaries

Formulation

• Committee hearings

• Committee bill summaries & conference reports

Appropriation• Federal Procurement

Data System

• usaspending.gov

• GAO reports

Execution

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Helpful Documents to Deciphering the Budget

Don’t Forget!

Exclusive Events at Insightfor Business Development Attendees:

Tuesday, May 17, 2011

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•Federal Teaming Expo from 6:00pm to 7:30pm in the Expo Hall

All teaming expo attendees will be entered in a drawing to win an iPad. Winners will be

announced at the BD reception (must be present to win).

•Business Development Reception from 7:30pm to 9:30pm in the Magnolia

BallroomWinners of iPad drawing will be

announced at 8:00 pm and 8:30 pm at

the BD Reception (must be present to

win).

Q & A

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