**CHAPTER 1 - BUDGET EXECUTION**

**1-1. [Budget Execution in HUDCAPS]{.underline}**

**A. [Budget Execution Subsystem]{.underline}**[.]{.underline} HUDCAPS
budget execution subsystem automates the budget execution process by
recording on-line all financial activity associated with the
establishment and distribution of the Department's budget. These
activities include the establishment of budgetary resources,
distribution of funds, and monitoring the spending of funds at all
budget levels. By specifying certain system options, the distribution
and control of funds can be uniquely defined for each budget level and
HUDCAPS systematically ensures that authorized amounts are not exceeded.

**B. [Fund Codes]{.underline}**[.]{.underline} Appropriations and funds
are defined and established in HUDCAPS with a fund code. An
appropriation may have a single fund code or multiple fund codes
depending on restrictions on the use of funds imposed by legislation,
Office of Management and Budget, and HUD management. Multiple fund codes
for a single appropriation will have the same Treasury symbol for that
appropriation to facilitate consolidated reporting at the appropriation
level.

> 1\. A separate fund code will be used to define and establish the
> following distinctions in budget authority:
>
> \- direct authority
>
> \- contract authority
>
> \- credit program account
>
> \- credit financing account
>
> \- credit liquidating account
>
> \- reimbursable authority
>
> \- transfer appropriation (allocation account)
>
> \- source year (no-year accounts only beginning with fiscal year 1998)
>
> \- apportionment line item (Category B)

2.  The fund code is a six position alphanumeric code preceded by two
    fields of two positions each for the budget fiscal years (Beginning
    BFY and Ending BFY). Two different coding structures are used:

-   \(1\) for annual appropriations and other selected accounts, and

-   \(2\) for multi-year and no-year accounts.

a.  For annual appropriations and other selected accounts, such as the
    Working Capital Fund, the first four positions of the fund code will
    be the

**1-1. B.** 2. a. appropriation account symbol assigned by Treasury, and
the last two positions are optional for Category A apportionments. For
Category B apportionments the optional positions must be used to
identify a master account code and a component account code for annual
appropriations. The fund code is a six position alphanumeric code
preceded by two fields of two positions each for the budget fiscal years
(BFY). For example, the fund code for the Salaries and Expenses account
for budget fiscal year 2000, Treasury symbol 8600143, for annual
appropriations apportioned as Category A, would be represented as
follows:

Annual Account (**Category A** apportionment):

> [00]{.underline} [0143]{.underline} [\--]{.underline} Fund Code

BFY Appropriation Symbol Optional Code or Blank

Annual Account (**Category B** apportionment):

> [00]{.underline} [0200]{.underline} [00]{.underline} Fund Code

BFY Appropriation Symbol Master Account Code

> If the **Optional Code** is used to identify a master account code and
> component account code, **the master account code** for the
> appropriation will be designated with a numberic code of "00". **The
> component account code**, which represents an apportionment line item
> for Category B apportionments of the same appropriation symbol, will
> use an alpha code for the appropriation symbol as shown in the FUN3
> Table.

b.  For multi-year and no-year accounts, the fund code structure will
    consist of six continuous alphanumeric characters consisting of
    three segments: (1) BFY, (2) source year, (3) appropriation account
    code, (4) master account code or component account code. The fund
    code is a six position alphanumeric code preceded by two fields of
    two positions each for the budget fiscal years (Beginning BFY and
    Ending BFY). For example:

Multi-year master account:

Beginning and Ending BFY's

> [00 02]{.underline} 00 [CD]{.underline} [00]{.underline} Fund Code

Source Year Appropriation Account Master Account Code

Code

> No-year component account:

Beginning BFY

> [00]{.underline} 00 [HA]{.underline} [HG]{.underline} Fund Code

Source Year Appropriation Account Component Account Code

Code

> **Source Year** is the fiscal year in which the funding source was
> provided. **Appropriation Account Code** is an alpha code as shown in
> the FUN3 Table. **The Master Account code** for an appropriation will
> be designated with a numeric code of "00". **The Component Account
> code**, which represents an apportionment line item for Category B
> apportionments of the same appropriation symbol, will use an alpha
> code as shown in the FUN3 Table.
>
> [Note:]{.underline} Refer to the FUN3 Table (Fund Code Listing Table)
> for the complete listing of fund codes with related appropriation
> symbol and account name.

**1-1. C. [Uniform Budget Structure.]{.underline}** A uniform budget
structure has been implemented by

> HUD and will be used for the establishment and distribution of all
> budgets. The uniform budget structure consists of eight levels and
> each level is distinguished by budget dimensions which are codes that
> represent how funds are distributed.

HUD Uniform Budget Structure

+-----+--------------------------------+------------------------------+
| Le  | Description                    | Dimensions                   |
| vel |                                |                              |
+-----+--------------------------------+------------------------------+
| 1   | Appropriation                  | Budget Fiscal Year           |
|     |                                |                              |
|     |                                | Fund Code                    |
+-----+--------------------------------+------------------------------+
| 2   | Apportionment                  | Budget Fiscal Year           |
|     |                                |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
+-----+--------------------------------+------------------------------+
| Le  | Description                    | Dimensions                   |
| vel |                                |                              |
+-----+--------------------------------+------------------------------+
| 3   | Advice of Allotment            | Budget Fiscal Year           |
|     |                                |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
|     |                                |                              |
|     |                                | Allotment Holder             |
+-----+--------------------------------+------------------------------+
| 4   | Distribution to Program/Object | Budget Fiscal Year           |
|     | Class                          |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
|     |                                |                              |
|     |                                | Allotment Holder             |
|     |                                |                              |
|     |                                | Program/Object Class         |
+-----+--------------------------------+------------------------------+
| 5   | Distribution to Program        | Budget Fiscal Year           |
|     |                                |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
|     |                                |                              |
|     |                                | Allotment Holder             |
|     |                                |                              |
|     |                                | Program Code                 |
+-----+--------------------------------+------------------------------+
| 6   | Assignment/Operating Budget -  | Budget Fiscal Year           |
|     | Level 1                        |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
|     |                                |                              |
|     |                                | Allotment Holder             |
|     |                                |                              |
|     |                                | Program Code                 |
|     |                                |                              |
|     |                                | Organization Code            |
+-----+--------------------------------+------------------------------+
| 7   | Assignment/Operating Budget -  | Budget Fiscal Year           |
|     | Level 2                        |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
|     |                                |                              |
|     |                                | Allotment Holder             |
|     |                                |                              |
|     |                                | Program Code                 |
|     |                                |                              |
|     |                                | Organization Code            |
+-----+--------------------------------+------------------------------+
| 8   | Assignment/Operating Budget -  | Budget Fiscal Year           |
|     | Level 3                        |                              |
|     |                                | Fund Code                    |
|     |                                |                              |
|     |                                | Quarter                      |
|     |                                |                              |
|     |                                | Allotment Holder             |
|     |                                |                              |
|     |                                | Program Code                 |
|     |                                |                              |
|     |                                | Organization Code            |
+-----+--------------------------------+------------------------------+

**1-1. C.** 1. Controls are established in HUDCAPS for each
appropriation which automatically enforces compliance with the uniform
budget structure. [The levels of budget distribution must be entered in
sequence, from the highest level]{.underline} [to the lowest
level]{.underline}. For example, before an Assignment/Operating Budget
(Level 6) can be entered the preceding 5 levels must be entered.

**D. [Budget Controls]{.underline}**[.]{.underline} Budget distribution
controls are also established in HUDCAPS for each appropriation or fund
code which automatically restricts the processing of subordinate budget
distribution documents to amounts authorized. The appropriation amount,
or the amount established for each fund code, determines the overall
amount authorized. Subsequent subordinate distributions are restricted
to the amount of the next higher level, for example:

-   apportionment of funds cannot exceed the amount appropriated or
    established for the fund code;

-   advice of allotments cannot exceed the amount established at the
    apportionment level;

-   distribution to Program/Object Class cannot exceed the amount
    established at the allotment level; etc.

> An error message is automatically generated when a subordinate budget
> distribution exceeds the amount of the next higher level and the
> transaction is rejected.

**1-1. E. [Establishing Budgets]{.underline}**[.]{.underline} Budgets
are established in HUDCAPS by entering budget documents. These documents
define the amount of funds available at each budget level and they must
be processed prior to any spending documents. Establishment of a new
budget and budget changes [involves a three-step process before funds
are available for spending.]{.underline}

> Step 1. **Pending budgets** are always entered as the first step.
> Amounts entered as pending budgets update the online query tables,
> however, they are not available for spending until the amounts are
> approved and posted to the general ledger.
>
> Step 2. **Approved budgets** are entered as the next step. When an
> [approval document]{.underline} (PA) is processed or [approval
> transaction *type*]{.underline} is included in PA, BE, B4, B5, B6, and
> SA documents, all pending budget amounts are approved and budget
> execution query tables updated. However, approved budgets are still
> not available for spending until the amounts are posted to the general
> ledger.
>
> Step 3. **Posted budgets** are entered as the last step and is usually
> entered concurrent with step 2 above. When PA, BE, B4, B5, B6, and SA
> documents are processed with a [posting transaction
> *type*]{.underline}, the amount of the approved budgets are posted and
> budget execution query tables updated, and the posted amounts are
> available for spending.

**F. [Spending Controls]{.underline}**[.]{.underline}

1.  **[Definition.]{.underline}** Spending controls are also established
    in HUDCAPS for each appropriation or fund code which automatically
    restricts the processing of spending documents to amounts authorized
    at the lowest budget distribution level. As a system-wide control,
    HUDCAPS treats a commitment (reservation) transaction as a spending
    document and a reduction of budget availability. Spending documents
    include transactions that record a commitment (reservation),
    obligation, or expenditure. An error message is automatically
    generated when a spending document exceeds the lowest level budgeted
    amount and the transaction is rejected.

**1-1. F.** 2. **[Policy.]{.underline}** Spending controls will be set
to Full Control at all budget levels. An exception may be made at fiscal
year-end for expired accounts when spending controls below the
apportionment level may be reset to Presence Control.

+-----------------+----------------------------------------------------+
| Control Option  | Definition                                         |
+=================+====================================================+
| Full Control    | The budget line(s) referenced by a spending        |
| (C)             | transaction must exist on the Budget Execution     |
|                 | inquiry tables.                                    |
|                 |                                                    |
|                 | The spending transaction must not exceed available |
|                 | funds.                                             |
+-----------------+----------------------------------------------------+
| Presence        | The budget line(s) referenced by a spending        |
| Control (P)     | transaction must exist on the Budget Execution     |
|                 | inquiry tables.                                    |
|                 |                                                    |
|                 | The spending transaction can exceed available      |
|                 | funds.                                             |
+-----------------+----------------------------------------------------+
| No Control (N)  | A spending transaction can be processed without    |
|                 | referencing an existing budget line.               |
|                 |                                                    |
|                 | Funds do not have to be available for the spending |
|                 | transaction to be processed.                       |
|                 |                                                    |
|                 | If the budget line does not exist, this option     |
|                 | creates the budget line during the processing of   |
|                 | the spending transaction.                          |
+-----------------+----------------------------------------------------+
| Ignore (I)      | Ignore is used to disregard a specific budget      |
|                 | level.                                             |
|                 |                                                    |
|                 | Spending transactions do not update or create      |
|                 | budget lines for levels defined with ignore        |
|                 | control.                                           |
|                 |                                                    |
|                 | No budget line is created by the spending          |
|                 | transaction.                                       |
+-----------------+----------------------------------------------------+

**1-1. G. [Control Override.]{.underline}** Budget and spending controls
can be overridden. A limited number of management officials will have
authority to override budget and spending control deficiencies and allow
processing of a document rejected for insufficient funds.

**1-1. H. [Status of Funds.]{.underline}** After a spending document is
processed, HUDCAPS immediately updates all online query tables relating
to that document. The results of a spending document on each budget
level can be viewed by accessing the appropriate online query table.

**I. [Posting Models.]{.underline}** The specific transactions
identified in this Chapter are the routine type transactions normally
used to record budgetary resources and the distribution of funds.
Reference to nonroutine type transactions and their descriptions can be
found on the HUDWEB under HUDCAPS Posting Models. If a nonroutine
transaction is needed, contact the Financial Systems Maintenance and
Development Division for assistance in identifying and processing the
transaction.

**J. [Document ID and Numbering.]{.underline}**

1.  A unique document ID must be assigned to all documents for HUDCAPS
    processing. Each document is identified by its transaction code,
    such as AA for the Appropriation/Apportionment document, and a
    Document ID consisting of two fields:

-   a four position alphanumeric field for the division code of the
    [office]{.underline} authorized to enter the transaction, which is
    also referred to as the SEC1 code (Security Level 1); and

-   an eleven position alphanumeric field that must conform to a
    prescribed structure for budget execution documents, a portion of
    which is automatically assigned.

2.  A portion of the second field of the document ID is automatically
    generated by the Automatic Document Number Table (ADNT) which
    controls and assigns sequential document numbers by transaction code
    and document number prefix. Sequential document numbers [should not
    be entered manually]{.underline} for budget transactions AA, PA, BE,
    B4, B5, B6, SA, TA, and TC.

3.  The complete Document ID is structured as follows:

For program funds:

AA CFO 0HA00000001

Transaction Sec1 Last Digit 3^rd^ & 4^th^ digit Sequential

Code Code Current of Fund Code Number

BFY

For administrative funds:

AA CFO 00143000001

Transaction Sec1 Last Digit Administrative Sequential

Code Code Current Fund Code Number

BFY

> 4\. When creating a new Document ID, the automatic document sequence
> number is applied by entering the SEC1 code and prefix followed by the
> pound sign (#).

**1-2. [Budgetary Resources]{.underline}**

**A. [Policy]{.underline}**[.]{.underline} All budgetary authority
available to HUD will be recognized and recorded into HUDCAPS, including
estimated and anticipated amounts. These transactions will be recorded
for the full amount authorized in a timely manner coincident with the
occurrence of the event from which they originate.

**B. [Definition]{.underline}**[.]{.underline} Specific forms of
budgetary authority are appropriations (including continuing
resolutions), borrowing authority, contract authority, and
reappropriations provided by Federal law. Other forms of authority may
include appropriations to liquidate contract authority, transfers
between two Federal Government accounts, recoveries of prior year
obligations, and reimbursable orders.

**C. [Roles and Responsibilities]{.underline}**[.]{.underline} The
**Office of the Assistant Chief Financial Officer for Budget (ACFOB)**
is responsible for recording budget authority for **all** of HUD's funds
**in HUDCAPS**. The Assistant Chief Financial Officer for Budget, or
authorized and documented designee, must approve all budget authority
transaction documents online in HUDCAPS for processing.

-   The initial recording of budgetary resources at the beginning of the
    fiscal year must be coordinated with and concurred in by the
    Director, Office of Financial Systems Maintenance and Development
    Division (FSMD), and the Director, Internal and External Financial
    Reporting Division (IEFRD).

-   The ACFOB, in coordination with the FSMD, will determine and
    establish the appropriate fund codes for all of HUD's funds.

-   The FSMD is responsible for maintaining the currency of fund codes
    and related Treasury symbols in appropriate tables of HUDCAPS.

**D. [Appropriations and Apportionments (Levels 1 and 2).]{.underline}**
The determination of the recording of an appropriation is dependent upon
the language in the Federal law and the approved apportionment request.
The budgetary authority with all limitations imposed by Federal law,
Office of Management and Budget (referred to as OMB), HUD management,
and Category B line items included in approved apportionment requests,
must be recognized and recorded by separate fund codes.

1.  **Annual appropriations** may be recorded by a single fund code or
    multiple fund codes with the same Treasury symbol. A distinction
    must be made between Catagory A and Category B apportionments. If
    multiple fund codes are used for funds apportioned as **Category
    A**, the components of the appropriation must be determined for each
    fund code and the amounts recorded by fund code. The combined amount
    established for all fund codes with the same Treasury symbol must
    not exceed the total amount of the approved apportionment request
    for the appropriation. Quarterly limitations must also be recognized
    and adhere to approved Category A apportionments by quarter.

> **Annual appropriations,** which have been apportioned as **Category
> B**, must be recorded using multiple fund codes with the same Treasury
> symbol and use the *master/component concept* whereby the full amount
> of the appropriations is initially recorded in a fund code established
> for the master account and amounts for the component fund codes are
> accomplished by a transfer of funds from the master account to the
> component accounts.
>
> 2\. **Multi-year and no-year appropriations** (including revolving
> funds and special funds) may also be recorded by a single fund code or
> multiple fund codes with the same Treasury symbol. However, if the
> appropriation is recorded by multiple fund codes, such as
> apportionment line items for Category B apportionments (which are
> amounts apportioned on a basis other than calendar quarters, such as
> by programs, activities, projects, etc.), it must be recorded using
> the ***master/component concept*** whereby the full amount of the
> appropriation is initially recorded in a fund code established for the
> master account and amounts for component fund codes are accomplished
> by a transfer of funds from the master account to the component
> accounts. The combined amount established for all fund codes with the
> same Treasury symbol must not exceed the total amount of the approved
> apportionment request for the appropriation.

**1-2. D.** 3. **Anticipated appropriations,** for indefinite budget
authority of no-year funds, may be recorded the same as the multi-year
and no-year appropriations described above in Paragraph 1-2.D.2.
**Anticipated appropriations are recorded as estimated reimbursements**
because availability of funds is dependent upon actual collections. The
transfer of amounts to component fund codes, and subsequent
apportionment of anticipated appropriations, is automatically restricted
by the system to the amount of actual collections.

4\. **Anticipated collections,** for no-year revolving funds and special
funds, may be recorded the same as the multi-year and no-year
appropriations described above in Paragraph 1-2.D.2.

**1-2. D.** 5**. Data Entry**

> .

a.  [Data Entry for Annual Appropriations Apportioned as Category
    A.]{.underline} The source document for recording appropriation and
    apportionment transactions is an approved SF-132, Apportionment and
    Reapportionment Schedule, with amounts apportioned as Category A, by
    quarter. These transactions require the use of two documents:

-   an Appropriation/Apportionment Document (AA document), and

-   an Apportionment Approval Document (PA document).

> The AA document is used to enter the appropriation amount by fund code
> and pending apportionments, if any. The PA document is used to approve
> and post pending apportionment amounts.

1.  An AA document must be entered for each fund code citing the
    following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Appropriation                                 01

  Apportionment                                 PA
  --------------------------------------------- -------------------------

2.  A PA document must be entered for each fund code with pending
    apportionment amount citing the following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Approval                                      AP

  Posting                                       01
  --------------------------------------------- -------------------------

> b\. [Data Entry for Multi-year, No-year and Annual Appropriations
> Apportioned as Category B.]{.underline} The source document for
> recording these transactions is an approved SF-132, Apportionment and
> Reapportionment Schedule, and apportioned as **Category B,** i.e. a
> basis other than calendar quarters. Under the *master/component
> concept* these transactions require 6 steps and the use of four
> documents: (1) an Appropriation/Apportionment Document (AA document),
> (2) an Appropriation Transfer Document (TA document), (3) an
> Appropriation Transfer Approval Document (TC document), and (4) an
> Apportionment Approval Document (PA document).

**1-2. D.** 5. b. Step (1). An AA document must be entered for the
master account fund code with the full amount of the appropriation
citing the following transaction types. Apportionments are not recorded
in the master account.

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Appropriation                                 01

  Estimated Reimbursement (for Anticipated      IA
  Appropriations)\*                             

  Apportionment                                 Leave blank
  --------------------------------------------- -------------------------

> \* Select Reimbursement Option "Include lesser of actual and
> estimated".
>
> Step (2). An AA document must be entered for each component fund code
> with zero amounts and blank transaction types to establish the fund
> code on the Appropriation Query (APPR) Table. This entry is necessary
> in order to process the Appropriation Transfer Document (TA document)
> for transfers to component fund codes.
>
> Step (3). An Appropriation Transfer Document (TA document) must be
> entered for each component fund code with the applicable amount of the
> transfer for the component citing the following document and
> transaction types:

  ---------------------------------------------- ------------------------
  Type                                           Value

  Document                                       Budget Authority

  From Transaction                               MC

  To Transaction                                 MC
  ---------------------------------------------- ------------------------

> Step (4). An Appropriation Transfer Approval Document (TC document)
> must be entered for each component fund code citing the related TA
> document ID:

  -----------------------------------------------------------------------
  Transfer Document ID TA \-\-\-\-\-\-\-\-\-\--

  -----------------------------------------------------------------------

> Step (5). An Appropriation/Apportionment Document (AA document) must
> be entered for each component fund code **to apportion the transfer
> amount received**. Only the apportionment section of the AA document
> is completed with the amount of the transfer entered in the "APPOR
> INC/DEC AMT" field for apportionment period 1 only and citing the
> following transaction type:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Apportionment                                 PA
  --------------------------------------------- -------------------------

**1-2. D.** 5. b. Step (6). An Apportionment Approval Document (PA
document) must be entered for each component fund code with the pending
apportionment amount and citing the following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Approval                                      AP

  Posting                                       01
  --------------------------------------------- -------------------------

**E. [Continuing Resolutions (CR).]{.underline}**

1.  [Definition.]{.underline} For accounts operating under a CR, the
    annualized level of the appropriation will be recorded. The source
    document for recording a CR is an internal document which shows the
    formula for calculating the amount, usually by deriving an annual
    amount and prorating the amount available for the period of the CR.
    Amounts made available under CRs that expire before December 31st
    are automatically apportioned. Since a portion of the annualized
    amount will be unavailable, two transactions will be required to
    record the available and unavailable amounts for each fund code. New
    fund codes for the new fiscal year will be established for each
    appropriation which conforms to the configuration of the related
    prior fiscal year fund codes.

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2.  [Data Entry.]{.underline} Data entry for a continuing resolution
    will be recorded in two parts.

-   The first part will record the [available]{.underline} amount, and

-   the second part will record the [unavailable]{.underline} amount.

> The recording of continuing resolution transactions requires the use
> of two documents:

-   an Appropriation/Apportionment Document (AA document), and

-   an Apportionment Approval Document (PA document).

> The AA document is used to enter the appropriation (or fund code)
> amount and pending apportionments, if any. The PA document is used to
> approve and post pending apportionment amounts.
>
> Step 1. The **available** portion must be entered with an AA document
> for each fund code citing the following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Appropriation                                 01

  Apportionment                                 PA
  --------------------------------------------- -------------------------

> Step 2. The **unavailable** portion must be entered with an AA
> document for each fund code with apportionment amount fields left
> blank and citing the following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Appropriation                                 F1

  Apportionment                                 Leave blank
  --------------------------------------------- -------------------------

> Step 3. A PA document must be entered for each fund code with an
> **available** portion and citing the following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Approval                                      AP

  Posting                                       01
  --------------------------------------------- -------------------------

> [NOTE:]{.underline} A Treasury warrant must be requested for the
> annualized level of each amount appropriated under the continuing
> resolution and recorded (see Paragraph 1-7).

**1-2. F.** **[Borrowing Authority.]{.underline}** (Reserved for future
use.)

**G. [Contract Authority.]{.underline}**

1.  [Definition.]{.underline} Contract authority is statutory authority
    that allows an agency to enter into contracts or incur other
    obligations prior to an appropriation, or the realization of
    revenues, for the payment of obligations. It is authority to incur
    obligations in anticipation of either receipts or an appropriation
    of liquidating authority with which to pay the obligations. It is
    reported as budget authority, whereas the appropriation of
    liquidating authority is *not* reported as budget authority.
    Contract authority may be current or permanent, with or without
    fiscal year limitation, and definite or indefinite in amount.
    Ordinarily, contract authority is used where more than a year is
    expected to elapse between the time the obligation was placed and
    the time expenditures would begin in payment of the obligation. An
    agency may not make expenditures to liquidate obligations incurred
    by contract authority. Funds must be appropriated to liquidate
    contract authority, or otherwise become available, for payment of
    these obligations.

2.  [HUD Permanent Contract Authority.]{.underline} Contract authority
    has been appropriated to HUD by Federal law which is permanent
    contract authority and indefinite in amount. If available indefinite
    contract authority, other than unobligated balance brought forward
    from the previous year, is necessary to cover obligations during the
    current fiscal year, **an amount must be recorded for the additional
    contract authority anticipated.**

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a.  [Data Entry.]{.underline} The source document for recording contract
    authority and apportionment transactions is an approved SF-132,
    Apportionment and Reapportionment Schedule. The recording of the
    anticipated contract authority transaction requires the use of two
    documents:

-   an Appropriation/ Apportionment Document (AA document), and

-   an Apportionment Approval Document (PA document).

> The AA document is used to enter the anticipated contract authority
> amount and pending apportionment. The PA document is used to approve
> and post pending apportionment amounts.
>
> Step (1). An AA document must be entered for the fund code of the
> contract authority with the anticipated contract authority amount
> citing the following transaction type:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Appropriation                                 CA

  Apportionment                                 PA
  --------------------------------------------- -------------------------

> Step (2). A PA document must be entered for the fund code of the
> contract authority with pending apportionments amounts citing the
> following transaction types:

  --------------------------------------------- -------------------------
  Transaction                                   Trans Type

  Approval                                      AP

  Posting                                       01
  --------------------------------------------- -------------------------

**1-2. H. [Reappropriations]{.underline}** (Reserved for future use.)

**I. [Transfers of Funds]{.underline}**

> 1\. [Definitions.]{.underline} Transfers between two Federal
> Government accounts move budgetary resources from one account to
> another account and must be specifically authorized by Federal law.
> Amounts transferred are available for obligation only for the same
> period as the original appropriation, unless the language authorizing
> the transfer provides for a change. Transfers of funds are of two
> general types: nonexpenditure and expenditure transfers.

**1-2. I.** 2**.** [Nonexpenditure Transfers.]{.underline}
Nonexpenditure transfers are transfers of authority in the form of
increases and decreases of either new budget authority or balances
brought forward from prior years. They may be made directly (*direct
transfers*) between two existing accounts that benefit the *receiving
account* or through the use of an *allocation account* (transfer
appropriation account) that benefit the *parent account*.

-   *Receiving account benefit*. Direct transfer accounts are made a
    part of the receiving appropriation and are recorded into HUDCAPS
    using an existing fund code.

-   *Parent account benefit*. Allocation accounts carry the Treasury
    symbol identified with the original appropriation from which the
    amounts are transferred and requires the establishment of a new fund
    code. The account is symbolized by adding the Department's
    prefix (86) to the original appropriation symbol.

> Nonexpenditure transfers are limited to transactions in which both the
> withdrawal and the credit occur in the same fund group, such as,
> general funds, revolving funds, special funds, trust funds, and
> deposit funds. A withdrawal and credit transaction between accounts in
> different groups, for example, between a general fund and a revolving
> fund, will be classified as an expenditure transaction without
> exception. Nonexpenditure transfers are accomplished by preparing and
> processing a SF-1151, Nonexpenditure Transfer Authorization.

a.  [Data Entry.]{.underline} The source document for recording a
    nonexpenditure transfer is an approved SF-1151, Nonexpenditure
    Transfer Authorization. The determination of the recording of a
    nonexpenditure transfer is dependent upon the language in the
    Federal law and whether the authorized transfer is for new budget
    authority, prior year unobligated balances, or a reappropriation of
    an unexpired account.

-   The recording of the transfer authority must first be recorded as an
    anticipated transfer for the appropriate type of transfer and
    requires the use of an Appropriation Transfer Document (TA document)
    citing both the receiving account and the transferring account.

-   Subsequently, upon receipt of a Treasury accomplished SF-1151,
    Nonexpenditure Transfer Authorization, the realization of the
    nonexpenditure transfer must be recorded and requires the use of an
    Appropriation Transfer Approval Document (TC document) which
    references the related TA document.

**1-2. I.** 2**.** For intra-agency direct transfers, both receiving and
transferring accounts should be entered citing existing fund codes of
the related appropriations. Do not establish new fund codes for these
intra-agency direct transfers unless the fund code for the receiving
account does not exist. For interagency direct transfers of
appropriations external to HUDCAPS, a provision is made for recording a
guest symbol in the TA document.

> (1). Direct transfers of *new budget authority* authorized by
> legislation must first be recorded as an anticipated transfer with an
> Appropriation Transfer Document (TA document) citing the following
> document and transaction types:

  ---------------------------------------------- ------------------------
  Type                                           Value

  Document                                       Budget Authority

  From Transaction                               OC

  To Transaction                                 TC
  ---------------------------------------------- ------------------------

> (2). Realization of the direct transfer of *new budget authority* by a
> Treasury accomplished SF-1151, Nonexpenditure Transfer Authorization,
> requires the use of an Appropriation Transfer Approval Document (TC
> document) citing the following related TA document ID:

  -----------------------------------------------------------------------
  Transfer Document ID TA \-\-\-\-\-\-\-\-\-\--

  -----------------------------------------------------------------------

> (a). The realized direct transfer of *new budget authority* must also
> be apportioned. Amounts may be apportioned separately or together with
> other budgetary resources of the same fund code in accordance with an
> approved SF-132, Apportionment and Reapportionment Schedule.
> Apportionment requires the use of an Appropriation/Apportionment
> Document (AA document) and an Apportionment Approval Document (PA
> document).
>
> [NOTE:]{.underline} Direct transfers of *new budget authority*
> specifically authorized by Federal law must be recognized and recorded
> in the full amount authorized or anticipated at the beginning of the
> fiscal year.
>
> (3). Direct transfers of *prior year unobligated balances* authorized
> by legislation must first be recorded as an anticipated transfer with
> an Appropriation Transfer Document (TA document) citing the following
> document and transaction types:

  ---------------------------------------------- ------------------------
  Type                                           Value

  Document                                       Unobligated Balance

  From Transaction                               OP

  To Transaction                                 TP
  ---------------------------------------------- ------------------------

**1-2. I.** 2. (4). Realization of the direct transfer of *prior year
unobligated balances* by a Treasury accomplished SF-1151, Nonexpenditure
Transfer Authorization,

> requires the use of an Appropriation Transfer Approval Document (TC
> document) citing the following related TA document ID:

  -----------------------------------------------------------------------
  Transfer Document ID TA \-\-\-\-\-\-\-\-\-\--

  -----------------------------------------------------------------------

> (a). The realized direct transfer of *prior year unobligated balances*
> must also be apportioned. Amounts may be apportioned separately or
> together with other budgetary resources of the same fund code in
> accordance with an approved SF-132, Apportionment and Reapportionment
> Schedule. Apportionment requires the use of an
> Appropriation/Apportionment Document (AA document) and an
> Apportionment Approval Document (PA document).

(5). Transfers of *reappropriations of unexpired account balances.*

(Reserved for future use.)

> (6). Transfers of *obligated account balances*.
>
> (Reserved for future use.)
>
> (7). An *allocation transfer received* of *new budget authority* based
> on authorizing legislation requires the establishment of a new fund
> code, with an Appropriation/Apportionment (AA) document, for the
> *transfer appropriation account* and it must first be recorded as an
> anticipated *allocation transfer received* with an Appropriation
> Transfer Document (TA document) citing the following document and
> transaction types:

  ---------------------------------------------- ------------------------
  Type                                           Value

  Document                                       Budget Authority

  From Transaction                               Leave blank

  To Transaction                                 AT

  From Guest Symbol                              Enter guest symbol
  ---------------------------------------------- ------------------------

> (8). Realization of the *allocation transfer received* of new budget
> authority by a Treasury accomplished SF-1151, Nonexpenditure Transfer
> Authorization, requires the use of an Appropriation Transfer Approval
> Document (TC document) citing the following related TA document ID:

  -----------------------------------------------------------------------
  Transfer Document ID TA \-\-\-\-\-\-\-\-\-\--

  -----------------------------------------------------------------------

**1-2. I.** 2. (8) (a). The realized *allocation transfer received* of
new budget authority must be apportioned based on the approved
apportionment of the parent

> account, which should be indicated in the accomplished SF-1151.
>
> Nonexpenditure Transfer Authorization. An AA document must be entered
> for the apportionment only of the fund code for the *allocation
> transfer received* with amounts entered in the "APPOR INC/DEC AMT"
> fields by quarter and citing the following transaction type:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Apportionment                                  PA
  ---------------------------------------------- ------------------------

b.  A PA document must be entered for the fund code of the *allocation
    transfer received* to approve and post the pending apportionment
    amounts citing the following transaction types:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Approval                                       AP

  Posting                                        01
  ---------------------------------------------- ------------------------

9.  An *allocation transfer issued* of new budget authority authorized
    by legislation must first be recorded as an anticipated *allocation
    transfer issued* with an Appropriation Transfer Document (TA
    document) citing the following document and transactions types:

  ---------------------------------------------- ------------------------
  Type                                           Value

  Document                                       Budget Authority

  From Transaction                               OP

  To Transaction                                 Leave blank

  To Guest Symbol                                Enter guest symbol
  ---------------------------------------------- ------------------------

> \(10\) Realization of the *allocation transfer issued* of new budget
> authority by a Treasury accomplished SF-1151, Nonexpenditure Transfer
> Authorization, requires the use of an Appropriation Transfer Approval
> Document (TC document) citing the following related TA document ID:

  -----------------------------------------------------------------------
  Transfer Document ID TA \-\-\-\-\-\-\-\-\-\--

  -----------------------------------------------------------------------

**1-2. I.** 3. [Expenditure Transfers.]{.underline} An expenditure
transfer is a transfer to carry out the purposes of the *paying
account*. Expenditure transfers are payments between two different fund
groups, such as, between a credit program account (general fund) and a
financing account (revolving fund), and are specifically authorized by
Federal law. The *paying account* will record obligations and outlays
and the *receiving account* will record spending authority from
offsetting collections. The full amount of the authorized transfer will
be recorded in the paying account as an obligation at the beginning of
the fiscal year based on a continuing resolution or upon enactment of
appropriations for HUD. The full amount of the authorized reimbursement
for offsetting collections in the receiving account will be recorded as
an accounts receivable. The actual payment and collection may be
recorded in incremental amounts during the fiscal year. See Paragraphs
\_-\_ and \_-\_ for the recording of the obligations and outlays and
Paragraphs \_-\_ and \_-\_ for the recording of reimbursements as
offsetting collections.

**1-2. J. [Spending Authority From Offsetting Collections]{.underline}**

1.  [Definitions.]{.underline} Spending authority from offsetting
    collections are payments and repayments authorized by law to be
    credited to an appropriation or fund account. Payments and
    repayments consist of reimbursements, advances, refunds, and other
    income. Amounts are recorded as either *estimated reimbursements* or
    *anticipated collections.*

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2.  [Reimbursable Work Between Federal Appropriations Under The Economy
    Act.]{.underline} The Economy Act authorizes the head of a
    department or major organizational unit within a department to place
    an order with a major organizational unit with the same department
    or another department for goods or services. Spending authority from
    offsetting collections is recognized by the *performing*
    appropriation as an estimated reimbursement.

> a\. [Policy.]{.underline}
>
> (1). For appropriations **subject to apportionment**, annual estimates
> will be recognized and recorded into HUDCAPS at the beginning of the
> fiscal year for anticipated amounts of reimbursements based on
> approved apportionment requests in the *performing* account. Estimated
> reimbursements are treated as budget authority which is available for
> apportionment and further budget distribution. However, allotments of
> reimbursable authority in the *performing* account must be limited to
> the amount of reimbursable orders received in the *performing* account
> and recorded as obligations in the *ordering* account.

**1-2. J.** 2. a. (2). For the **Working Capital Fund**, which is *not
subject to apportionment*, current annual estimates will *not* be
recognized and recorded into HUDCAPS at the beginning of the fiscal year
for anticipated amounts of reimbursements. Estimated reimbursements will
be recognized and recorded into HUDCAPS based on the receipt of approved
reimbursable orders which have been recorded and obligated in the
*ordering* account

> (3). The setting of the **Estimated Reimbursement Option** field on
> the AA
>
> document is critical to the establishment and availability of
>
> reimbursable authority as budget authority for allotment and
> obligation. Two options are used in HUDCAPS; "Include Estimated
> Reimbursements" which denotes that estimated reimbursements are
> automatically included in availability, and "Include Lesser of Actual
> and Estimated" which denotes that the lesser of actual receipts and
> estimated receipts are automatically included in availability.
>
> (4). The **Estimated Reimbursement Option** must be set to **"Include
> Estimated Reimbursements"** for the following appropriations:

-   Salaries and Expenses

-   Office of Inspector General

-   Working Capital Funds

> (5). The **Estimated Reimbursement Option** must be set to **"Include
> Lesser of Actual and Estimated"** for all program appropriations with
> estimated reimbursements.
>
> b\. [Data Entry for Estimated Reimbursements.]{.underline} The
> recording of estimated reimbursements requires the use of two
> documents: (1) an Appropriation/Apportionment Document (AA document),
> and (2) an Apportionment Approval Document (PA document). The AA
> document is used to enter the estimated reimbursement amount and
> pending apportionment amounts. The PA document is used to approve and
> post the pending apportionment amounts.
>
> (1). For accounts **subject to apportionment**, an AA document must be
> entered for the applicable fund code and estimated amount, based on an
> approved apportionment request, using the Estimated Reimbursement
> line, with the Estimated Reimbursement Option set as appropriate, and
> pending apportionment amounts, citing the following transaction types:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Estimated Reimbursement                        AR

  Apportionment                                  PA
  ---------------------------------------------- ------------------------

**1-2. J.** 2. b. (2). A PA document must be entered for the
reimbursement fund code and pending apportionment amount citing the
following transaction types:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Approval                                       AP

  Posting                                        01
  ---------------------------------------------- ------------------------

> (3). For the **Working Capital Fund**, an AA document must be entered
> for the Working Capital Fund code and amount, *based on approved
> reimbursable orders*, using the Estimated Reimbursement line, with the
> Estimated Reimbursement Option set to "Include Estimated
> Reimbursements", and pending apportionment amounts in apportionment
> period 1, citing the following transaction types:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Estimated Reimbursement                        AR

  Apportionment                                  PA
  ---------------------------------------------- ------------------------

> (4). A PA document must be entered for the Working Capital Fund code
> and pending apportionment amount citing the following transaction
> types for the Working Capital Fund only (with Fund Category "I" that
> includes a compound entry to recognize and record an unfilled customer
> order in the general ledger but not reflected in the Appropriation
> Inquiry Table \[APPR\]):

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Approval                                       AP

  Posting                                        01
  ---------------------------------------------- ------------------------

> (5). [Reimbursable Orders.]{.underline} The determination of recording
> reimbursable orders is dependent upon whether the reimbursable order
> is *with* or *without* an advance.
>
> (a). [Data Entry.]{.underline}
>
> 1\. A reimbursable order *with* an advance. (Reserved for future use.)
>
> 2\. A reimbursable order *without* an advance. (Reserved for future
> use.)

**1-2. J.** 3. [Anticipated Collections.]{.underline} **Anticipated
collections may be included in apportionment requests or anticipated as
unapportioned**. A distinction also needs to be recognized for
collections from **federal sources** and **non-federal sources.**

a.  [Data Entry for Anticipated Collections.]{.underline} The source
    document for recording anticipated collections is an attachment to
    an approved SF-132, Apportionment and Reapportionment Schedule, or
    an approved internal memorandum. The SF-132 attachment and the
    approved internal

memorandum should show anticipated collections by federal sources and
non-federal sources. Under the *master/component concept* these
transactions require 6 steps (see paragraph D.5.b.) and the use of four
documents: (1) an Appropriation/Apportionment Document (AA document),
(2) an Appropriation Transfer Document (TA document), (3) an
Appropriation Transfer Approval Document (TC document), and (4) an
Apportionment Approval Document (PA document).

1.  An AA document must be entered for the master account fund code with
    the amount of anticipated collections citing the following
    transaction types. Amounts will be recorded as estimated
    reimbursements. Apportionments are not recorded in the master
    account. Apportionments are recorded for each component fund code.

  --------------------------- ------------- ------------------------ -----------
  Apportioned/Unapportioned   Source        Transaction              Trans Type

  Apportioned Amounts         Federal       Estimated                R2
                                            Reimbursement\*          

  Apportioned Amounts         Non-Federal   Estimated                SA
                                            Reimbursement\*          

  Unapportioned Amounts       Federal       Estimated                R6
                                            Reimbursement\*\*        

  Unapportioned Amounts       Non-Federal   Estimated                R5
                                            Reimbursement\*\*        

  Apportioned/Unapportioned   N/A           Apportionment            Leave blank
  --------------------------- ------------- ------------------------ -----------

> \* Select Reimbursement Option "Include lesser of actual and
> estimated".
>
> \*\*Select Reimbursement Option "Do not include reimbursements".
>
> \(2\) For anticipated collections **included in an apportionment
> request**, follow the steps prescribed above in Paragraphs 1-2.5.b.(2)
> through (6) but only for amounts of actual collections.
>
> \(3\) For anticipated collections ***not* included in an apportionment
> request**, no further transactions are required.

**1-2. K. [Recoveries of Prior Year Obligations]{.underline}**

> 1\. [Definition.]{.underline} Recoveries (recaptures) of prior year
> obligations are cancellations or downward adjustments in the current
> fiscal year of obligations incurred in prior fiscal years that were
> *not outlayed,* i.e., not refunds, in no-year and unexpired multi-year
> accounts, and when apportioned are budgetary resources available for
> new obligations.
>
> 2\. [Policy.]{.underline} Recoveries of prior year obligations are
> automatically withdrawn from the assignment/operating budget designee
> and allotment holder and recorded as authority available for
> apportionment. Recoveries must be estimated to be apportioned before
> the budgetary resource can be reallotted.

[Estimated Recoveries.]{.underline} Annual estimates will be recognized
and recorded into HUDCAPS at the beginning of the fiscal year for
anticipated recoveries of prior year obligations based on approved
apportionment requests of unexpired accounts.

> a\. [Data Entry.]{.underline} The recording of estimated recoveries of
> prior year obligations requires the use of an
> Appropriation/Apportionment Document (AA document). The AA document is
> used to enter the estimated recoveries of prior year obligations
> amount.
>
> (1). An AA document must be entered for the appropriation fund code
> with the estimated recoveries of prior year obligations amount on the
> Estimated Recovery line citing the following transaction type:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Estimated Recovery                             RU
  ---------------------------------------------- ------------------------

4.  [Actual Recoveries.]{.underline} Actual recoveries of prior year
    obligations are automatically recognized in HUDCAPS when a
    transaction is entered for a cancellation or downward adjustment, or
    final payment is less than the obligation amount, of a prior year
    obligation. General ledger entries are automatically generated and
    budget tables updated for the old year and the new year.

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a.  [Actual Recoveries Greater Than Estimated.]{.underline} When actual
    recoveries of prior year obligations are greater than the annual
    estimate of recoveries, the difference must be recorded as
    unavailable on a Standard Voucher (SV) Document at the end of each
    month (see Paragraph \_-\_).

**1-2. L. [Unobligated Balances]{.underline}**

1.  [Definition.]{.underline} An unobligated balance is the amount
    remaining after deducting the cumulative obligations from the amount
    available for obligation. For unexpired multi-year and no-year
    accounts, unobligated balances are included in available balances of
    budgetary resources. In HUDCAPS the unobligated balance is
    calculated by fund code as a result of the automated annual close
    process and reported as **Carryover Amount** in the Appropriation
    Query (APPR) Table.

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2.  [Policy.]{.underline} As a result of the automated annual close
    process the Carryover Amount [for no-year accounts]{.underline} is
    automatically moved forward from the **prior budget fiscal year**
    component fund code to the **new budget fiscal year** component fund
    code. Carryover Amounts [for no-year accounts]{.underline} in the
    **component fund code** of the new budget fiscal year must be
    **manually transferred** to the related **master fund code** for the
    new budget fiscal year in accordance with the *master/component
    concept* described in Paragraph 1-2.D.2, and procedures described in
    Paragraph 1-2.D.5.b.

3\. [Roles and Responsibilities.]{.underline} The Office of the
Assistant Chief Financial Officer for Budget (ACFOB) is responsible for
the timely recording, at the beginning of the fiscal year, of the
transfer of unobligated balances for no-year accounts from the component
fund code to the related master fund code.

4.  [Data Entry.]{.underline} The source document for recording theses
    transactions is an approved SF-132, Apportionment and
    Reapportionment Schedule, and requires the use of two documents:

-   An Appropriation Transfer Document (TA document), and

-   an Appropriation Transfer Approval Document (TC document).

> a\. An Appropriation Transfer Document (TA document) must be entered
> for each component fund code with the applicable amount of the
> transfer for the component citing the following document and
> transaction types:

  ---------------------------------------------- ------------------------
  Type                                           Value

  Document                                       Unobligated Balance

  From Transaction                               PY

  To Transaction                                 PY
  ---------------------------------------------- ------------------------

b.  An Appropriation Transfer Approval Document (TC document) must be
    entered for each component fund code citing the related TA document
    ID:

  -----------------------------------------------------------------------
  Transfer Document ID TA \-\-\-\-\-\-\-\-\-\--

  -----------------------------------------------------------------------

**1-3. [Deferrals.]{.underline}**

> **A. [Definition]{.underline}**[.]{.underline} A deferral is any OMB
> action or inaction that temporarily withholds, delays, or effectively
> precludes the obligation or expenditure of budgetary resources.
> Deferrals are generally effected through the apportionment process.
> This is the amount of budgetary resources being set aside for possible
> use at a later date, before the funds expire, pursuant to a special
> message transmitted, or to be transmitted, to the Congress.
>
> 1\. [Deferrals Through The Apportionment Process.]{.underline} Such
> deferral action may be taken by OMB on its own initiative or at the
> request of the Department.

a.  [Data Entry.]{.underline} The deferral amount must be recorded
    simultaneously with, and in the same document as, the appropriation
    and apportionment amounts based on an approved SF-132, Apportionment
    and Reapportionment Schedule. The deferral amount must be entered
    for the same fund code as the appropriated amount on the Statutory
    Reserve line of the Appropriation/Apportionment Document (AA
    document), citing the following transaction type:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Statutory Reserve (Deferral)                   AD
  ---------------------------------------------- ------------------------

[NOTE:]{.underline} If the deferral action occurs subsequent to the
initial recording of the appropriation and apportionment amounts, enter
a *positive* amount for the deferral and an equal *negative* amount for
the appropriation and apportionment on the same AA document (see
Paragraph 1-2.D. for the required transaction type codes).

**1-4. [Rescissions.]{.underline}**

> **A. [Definition]{.underline}**[.]{.underline} A rescission is enacted
> or pending legislation that cancels budget authority previously
> provided by law, prior to the time when the authority would otherwise
> expire. Budget authority subject to rescission may be appropriations,
> borrowing authority, contract authority, or unapportioned balances of
> revolving funds.
>
> 1\. [Pending Rescission.]{.underline} Pending rescissions must be
> recorded pursuant to a special message transmitted, or to be
> transmitted, to the Congress and included on line 9 of the most
> recently approved apportionment request (SF 132).

**1-4. A.** 1. a. [Data Entry.]{.underline} The rescission amount must
be recorded simultaneously with, and in the same document as, the
appropriation and apportionment amounts based on an approved
apportionment request. The rescission amount must be entered for the
same fund code as the appropriated amount, on the Statutory Reserve line
of the Appropriation/Apportionment Document (AA document). Enter a
*positive* amount for the rescission and an equal *negative* amount for
the appropriation and apportionment (see Paragraph 1-3.a. for the
required transaction type codes). Cite the following transaction type
for the rescission amount:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Statutory Reserve (Rescission)                 PR
  ---------------------------------------------- ------------------------

> 2\. [Enacted Rescission Pending.]{.underline} The determination of the
> recording of enacted rescissions, *previously recorded as pending*, is
> dependent upon whether the rescission is for unobligated balance of
> (1) current year authority, or (2) prior year authority.
>
> a\. [Data Entry For Current Year Authority.]{.underline} The
> rescission amount must be recorded simultaneously with, and in the
> same document as, the appropriation and apportionment amounts, based
> on the enacted legislation and an approved apportionment request. The
> rescission amount must be entered for the same fund code as the
> appropriated amount, on the Statutory Reserve line of the
> Appropriation/Apportionment Document (AA document). Enter a positive
> amount for the rescission and an equal negative amount for the
> appropriation and apportionment (see Paragraph 1-2.D. for the required
> transaction type codes). Cite the following transaction type for the
> rescission amount:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Statutory Reserve (Rescission)                 RC
  ---------------------------------------------- ------------------------

> [NOTE:]{.underline} The rescission warrant will be recorded by a
> separate transaction (see Paragraph 1-7).
>
> b\. [Data Entry For Prior Year Authority.]{.underline} The rescission
> amount must be recorded simultaneously with, and in the same document
> as, the appropriation and apportionment amounts, based on the enacted
> legislation and an approved apportionment request. The rescission
> amount must be entered for the same fund code as the appropriated
> amount, on the Statutory Reserve line of the
> Appropriation/Apportionment Document (AA document). Enter a *positive*
> amount for the rescission of the unobligated balance brought forward,
> and an equal *negative* amount for the appropriation and apportionment
> (see Paragraph 1-3.a. for the required transaction type codes). Cite
> the following transaction type for the rescission amount:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Statutory Reserve (Rescission)                 R1
  ---------------------------------------------- ------------------------

> [NOTE:]{.underline} The rescission warrant will be recorded by a
> separate transaction (see Paragraph 1-7).

**1-5. [Distribution of Funds.]{.underline}**

> **A. [Policy]{.underline}**[.]{.underline} Before a commitment
> (reservation), obligation, or expenditure of any of HUD's funds can
> occur, an internal Assignment/Operating Budget must be approved and
> established in HUDCAPS that authorizes the use of funds consistent
> with legislative appropriation or authorizing language, including
> continuing resolutions, for apportioned and unapportioned funds. The
> official establishment and authorized distribution of funds will
> reside in HUDCAPS for all funds of HUD. All allotment holders and
> assignment/operating budget designees must be identified by title and
> organization, and approved in writing by the Secretary, as authorized
> recipients. (See Chapter 1, Appendix 1.)
>
> **B. [Definition]{.underline}**[.]{.underline} The Department's
> distribution of funds process provides for the recording and
> distribution of the Department's budgetary resources as prescribed in
> HUD's uniform budget structure (Paragraph 1-1.C.), and consists of
> eight budget levels: (1) Appropriation, (2) Apportionment, (3) Advice
> of Allotment, (4) Distribution to Program/Object Class, (5)
> Distribution to Program, (6) Assignment/Operating Budget - Level 1,
> (7) Assignment/Operating Budget - Level 2, and (8)
> Assignment/Operating Budget - Level 3.
>
> **C. [Roles and Responsibilities]{.underline}**[.]{.underline}

1.  The Assistant Chief Financial Officer for Budget (ACFOB) is
    responsible for maintaining a current signed list of allotment
    holders and assignment/operating budget designees approved by the
    Secretary as authorized recipients. The ACFOB is also responsible
    for issuing and recording into HUDCAPS distributions of funds as
    follows:

  ---------------------------------------------- ------------------------
  Fund Category                                  Budget Levels

  Administrative Funds                           3,4,5,6

  Program Funds                                  3 & 4
  ---------------------------------------------- ------------------------

> Budget levels 3, 4, 5 and 6 will be issued to recipients designated as
> authorized allotment holders or assignment/operating budget designees
> that have been

**1-5. C.** 1. approved by the Secretary. The ACFOB, or authorized and
documented designee, must approve all documents online in HUDCAPS for
timely processing. The ACFOB will determine the frequency of issuance
and incremental amounts of all documents for quarterly or annual periods
and during periods of continuing resolutions.

> 2\. The Program Budget Division for the allotment holder of **program
> funds** is responsible for issuing and recording budget levels 5 and 6
> into HUDCAPS to subordinate organizations authorized by the Secretary.
> The Director, Program Budget Division, will determine the frequency of
> issuance and incremental amounts of distributions for monthly,
> quarterly or annual periods and during periods of continuing
> resolutions.
>
> 3\. The Program Budget Division may authorize the recipient of budget
> level 6, an Assignment/Operating Budget - Level 1, to issue
> subassignments to subordinate organizations authorized by the
> Secretary as assignment/operating budget designees, i.e., budget level
> 7, an Assignment/Operating Budget - Level 2, and budget level 8, an
> Assignment/Operating Budget - Level 3.
>
> (a). See Chapter 1, Appendix 1, for authorized allotment holders and
> assignment/operating budget designees.
>
> 4\. The ACFOB and the Director, Program Budget Division, are
> authorized to deactivate a budget line at their discretion.
> Deactivation of a budget line is a means of controlling spending
> against specific authorizations. A budget line can be deactivated at
> any budget level. See Appendix A for detailed data entry procedures.

**1-5. D. [Advice of Allotment (Level 3)]{.underline}**[.]{.underline}
The Advice of Allotment authorizes the designated recipient to incur
commitments (reservations), obligations, and expenditures within a
specified amount for a specified period of time for purposes authorized
by legislation. After further distribution to Program/Object Class
Budgets and Program Budgets, this authority is subsequently delegated to
subordinate organizations through Assignment/Operating Budgets. The
authorization granted by the Advice of Allotment may be queried online
in the Advice of Allotment Query Table (ALOC) by entering the applicable
key fields. This third budget level is not used for citing or recording
of actual spending documents.

> 1\. [Data Entry.]{.underline} The source document for recording the
> Advice of Allotment is an approved Form HUD-158, Advice of Allotment.
> The recording of an Advice of Allotment requires the use of a **Budget
> Execution** **(BE) Document for administrative funds,** and **PAS
> Advice of Allotment** **(B4) Document for program funds**. To verify
> funds availability before processing an Advice of Allotment, scan the
> Apportionment Query (APOR) for the related fund code. Amounts must be
> entered by source year and fund code. Multiple allotments with the
> same fund code may be entered on a single BE or B4 document, citing
> the appropriate budget dimension(s) and the following transaction
> types, and budget level:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Budget Level                                   Allotment Holder

  Approval                                       AP

  Posting                                        01
  ---------------------------------------------- ------------------------

**1-5. E. [Distribution to Program/Object Class (Level
4)]{.underline}**[.]{.underline} The Distribution to Program/Object
Class is a distribution of funds to establish additional budget
dimensions by *program/object class.* This level represents line items
from the Advice of Allotment, i.e., the allotment line limits by program
for program funds, and allotment line limits by object class for
administrative funds. The dimensions of this fourth budget level must
include the budget dimensions of the Advice of Allotment (i.e., source
year, fund code, and allotment holder code) and the *program/object
class* code being established. A Distribution to Program/Object Class
must be established for all funds of HUD within HUDCAPS. The status of
the Distribution to Program/Object Class may be queried online in the
Distribution to Program/Object Class Query (SALC) by entering the
applicable key fields. Documentation of the Distribution to
Program/Object Class by ACFOB is optional. This fourth budget level is
not used for citing or recording of actual spending documents.

1.  [Data Entry.]{.underline} The source document for recording the
    Distribution to Program/Object Class is an approved Form HUD-158,
    Advice of Allotment. The recording of line item controls as a
    Distribution to Program/Object Class requires the use of a **Budget
    Execution** **(BE) Document for administrative funds**, and **PAS
    Distribution to Pgm/Obj Cls (B5) Document for program funds**. To
    verify funds availability before processing a Distribution to
    Program/Object Class, scan the Advice of Allotment Query (ALOC) for
    the related allotment holder. Amounts must be entered by source year
    and fund code. Multiple distributions, with the same fund code, may
    be entered on a single BE or B5 document, citing the appropriate
    budget dimension(s) and the following transaction types, and budget
    level:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Budget Level                                   Pgm/Obj Cls

  Approval                                       AP

  Posting                                        01
  ---------------------------------------------- ------------------------

**1-5. F. [Distribution To Program (Level
5)]{.underline}**[.]{.underline} The Distribution to Program is a
distribution of funds to a specific *program* code and it authorizes the
recipient to make assignments of funds. The dimensions of this fifth
budget level must include the budget dimensions of the Distribution to
Program/Object Class (i.e., source year, fund code, allotment holder
code, program/object class code) and the *program* code for the
recipient organization. A Distribution to Program must be established
for all funds of HUD within HUDCAPS. The status of the Distribution to
Program may be queried online in the Distribution to Program Query
(ALLT) by entering the applicable key fields. A documented copy of the
Distribution to Program may also be prepared and issued by ACFOB. This
fifth budget level may not be used for citing or recording of spending
documents.

> 1\. [Data Entry.]{.underline} The source document for recording the
> Distribution to Program is an approved internal HUD memorandum. The
> recording of line item controls as a Distribution to Program requires
> the use of a **Budget Execution** **(BE) Document for administrative
> funds**, and **PAS Distribution to Program** **(B6) Document for
> program funds**. To verify funds availability before processing a
> Distribution to Program, scan the Distribution to Program/Object Class
> Query (SALC) for the related budget dimensions. Amounts must be
> entered by source year and fund code. Multiple distributions, with the
> same source year and fund
>
> code, may be entered on a single BE or B6 document, citing the
> appropriate budget dimension(s) and the following transaction types,
> and budget level:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Budget Level                                   Program

  Approval                                       AP

  Posting                                        01
  ---------------------------------------------- ------------------------

**1-5. G. [Assignment/Operating Budget (Level
6)]{.underline}**[.]{.underline} The Assignment/Operating Budget is a
distribution of funds by the ACFOB or the Program Budget Division,
servicing the allotment holder's organization, to a *subordinate
organization* for a specific *budget object code* or multiple *budget
object codes*. Authority is granted to the recipient to incur
commitments (reservations), obligations, and expenditures consistent
with the restrictions and limits of the Assignment/Operating Budget. The
dimensions of this sixth budget level must include the budget dimensions
of the Distribution to Program (i.e., source year, fund code, allotment
holder code, program/object class code, organization code) and the
*subordinate organization and budget object code* for the recipient
organization. The status of Assignment/Operating Budgets may be queried
online in the Assignment/Operating Query Table (SAIN) by entering
applicable key fields. **This budget level must be cited on all spending
documents**. A documented copy of the assignment may also be prepared
and issued by the ACFOB in an Operating Budget, or Director, Program
Budget Division, on Form HUD-185, Regional Fund Assignment.

1.  [Data Entry.]{.underline} The source document for recording the
    Assignment/Operating Budget is an approved Form HUD-185, Regional
    Fund Assignment, for program funds other than Section 8 PIH, and an
    approved Operating Budget for administrative and Section 8 PIH
    funds. The recording of an Assignment/Operating Budget requires the
    use of an **Assignment/Operating Budget Document (SA document).** To
    verify funds availability before processing an Assignment/Operating
    Budget, scan the Distribution to Program Query (ALLT) for the
    related budget dimensions. Amounts must be entered by source year
    and fund code, and multiple distributions with the same source year
    and fund code, may be entered on a single **SA document**, citing
    the appropriate budget dimension(s) and the following transaction
    types:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Pending                                        PN

  Approved                                       AP

  Posted                                         01
  ---------------------------------------------- ------------------------

**1-6. [Reprogramming of Funds.]{.underline}** (Reserved for future
use.)

**1-7. [Treasury Warrants.]{.underline}**

> **A. [Definition]{.underline}**[.]{.underline} Treasury warrants are
> also known as appropriation warrants and are official documents issued
> by the Treasury, pursuant to law, that establishes the amount of
> moneys authorized to be withdrawn from the central accounts maintained
> by the Treasury. Treasury warrants are the basis for recording
> appropriations on the books of Treasury and the department for which
> the appropriation is made. Amounts are identified in the warrants by
> appropriation symbols. Warrants are issued routinely by the Treasury
> for regular appropriations and Surplus Warrants and no action is
> required by the department. Warrants must be requested in writing by
> the department during periods of continuing resolutions in accordance
> with instructions in Treasury Financial Manual, Section 2030.20, and
> for annual amounts of liquidating authority, authorized by law, for
> permanent/indefinite contract authority and for current/definite
> contract authority, and for rescission warrants.
>
> **B. [Policy.]{.underline}** Treasury warrants must be obtained from
> Treasury and recorded in HUDCAPS for all accounts of HUD.
>
> **C. [Roles and Responsibilities]{.underline}**[.]{.underline} For
> warrants that must be requested in writing, the ACFOB is responsible
> for determining the amounts of the warrants by appropriation and
> submitting the request to Treasury in a timely manner. The Director,
> Office of Accounting Monitoring and Analysis (OAMA), is responsible
> for recording all Treasury warrants for all funds of HUD in HUDCAPS.

**1.-7. D. [Data Entry.]{.underline}** The source documents used to
record Treasury Warrants are an approved FMS Form 6201, Department of
the Treasury Appropriation Warrant, or FMS Form 6202, Department of the
Treasury Surplus Warrant. [When multiple fund codes are used to record
an appropriation, and point to the same appropriation symbol, only one
fund code for the appropriation will be used to record the full amount
of the Treasury warrant]{.underline}. [Use the fund code of the master
account identified with "00" in the 5^th^ and 6^th^ positions of the
fund code]{.underline}. This will result in an abnormal balance in the
general ledger account, "Fund Balance With Treasury", for each of the
associated fund codes because the Treasury warrant will be recorded
against the master fund code and disbursements will be recorded against
each of the component fund codes. However, the proper account balance
will be reflected in consolidation by Treasury symbol. The recording of
Treasury warrants requires the use of a Standard Voucher (SV document)
citing the following transaction type.

> 1\. For appropriation warrants:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Appropriation Warrant                          W1
  ---------------------------------------------- ------------------------

> 2\. For contract liquidating authority the Treasury warrant must be
> entered by the same fund code of the related contract authority. Do
> not establish a new fund code for contract liquidating authority.

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Contract Liquidating Authority Warrant         CA
  ---------------------------------------------- ------------------------

> 3\. For rescission and surplus warrants:

  ---------------------------------------------- ------------------------
  Transaction                                    Type

  Rescission/Surplus Warrant                     RR
  ---------------------------------------------- ------------------------

**1-8. [Credit Reform.]{.underline}**

> **A. [Policy.]{.underline}** All credit programs of HUD will comply
> with the requirements of the Federal Credit Reform Act of 1990 (FCRA)
> and the accounting standards prescribed by the Statement of Federal
> Financial Accounting Standards (SFFAS) No.2, Accounting for Direct
> Loans and Loan Guarantees. Actual costs of federal credit programs
> must be fully recognized in both budgetary and financial reporting.
> Amounts will be recorded discretely into HUDCAPS for the loan subsidy
> appropriation, loan administrative expense appropriation, and the
> guaranteed loan level.
>
> **B. [Roles and Responsibilities.]{.underline}** The Office of
> Accounting Monitoring and Analysis (OAMA) is responsible for recording
> budget authority for loan subsidy appropriations, loan administrative
> expense appropriations, and the guaranteed loan levels for all credit
> programs of HUD.

**1-9. [Deactivating/Reactivating a Budget Line.]{.underline}**

> **A. [Definition.]{.underline}** When a budget line is deactivated the
> only processing that can occur against that budget line are
> obligations of existing commitments, and expenditures of existing
> obligations. No new commitments, obligations, or expenditures can
> occur, and no additional budget transactions can be processed against
> that budget line item, including subordinate distributions of funds.
>
> **B. [Policy.]{.underline}** Deactivation of a budget line may be used
> for restricting spending at budget levels 3 through 8. Deactivation of
> a budget line must be used judiciously and with the knowledge of all
> parties concerned.
>
> **C. [Roles and Responsibilities.]{.underline}** The Office of the
> Assistant Chief Financial Officer for Budget (ACFOB) is responsible
> for recording deactivation (and re-activation) of a budget line for
> budget levels 3, 4, 5, 6, 7, 8 for administrative funds, and budget
> levels 3 and 4 for program funds. The Program Budget Division is
> responsible for recording deactivation (and re-activation) of a budget
> line for budget levels 5, 6, 7, 8 for program funds. The Director,
> Office of Financial Systems Maintenance and Development Division
> (FSMD) is to be kept apprised promptly of any deactivations and
> re-activations.

**1-9. D. [Data Entry.]{.underline}** Deactivation and re-activation of
a budget line is accomplished by use of the standard budget documents
used for distribution: BE, B4, B5, B6 and SA. The documents must be
processed **using all applicable budget dimensions appropriate to the
budget level with zero amounts and blank transaction codes**.

> 1\. **Deactivation** (and re-activation) **for budget level 3, Advice
> of Allotment**, must use the Budget Execution (BE) Document for
> administrative funds, and PAS Advice of Allotment (B4) Document for
> program funds. On the Header Tab, select the **Deactivate** button for
> the **Default Line Action**, and the **Allotment Holder** button for
> the **Budget Level**. To re-activate the budget for budget level 3,
> process the same budget documents and select **Add/Activate** button
> for the **Default Line Action** and the **Allotment Holder** button
> for the **Budget Level**.
>
> 2\. **Deactivation** (and re-activation) **for budget level 4,
> Distribution to Program/Object Class**, must use the Budget Execution
> (BE) Document for administrative funds, and PAS Distribution to
> Pgm/Obj Cls (B5) Document for program funds. On the Header Tab, select
> the **Deactivate** button for the **Default Line Action**, and the
> **Pgm/Obj Cls** button for the **Budget Level**. To re-activate the
> budget for budget level 4, process the same budget documents and
> select **Add/Activate** button for the **Default Line Action** and the
> **Pgm/Obj Cls** button for the **Budget Level**.

**1-9. D.** 3. **Deactivation** (and re-activation) **for budget level
5, Distribution to Program**, must use the Budget Execution (BE)
Document for administrative funds, and PAS Distribution to Program (B6)
Document for program funds. On the Header Tab, select the **Deactivate**
button for the **Default Line Action**, and the **Program** button for
the **Budget Level**. To re-activate the budget for budget level 5,
process the same budget documents and select **Add/Activate** button for
the **Default Line Action** and the **Program** button for the **Budget
Level**.

4.  **Deactivation** (and re-activation) **for budget levels 6, 7, 8,
    Assignment/**

> **Operating Budget**, must use the Assignment/Operating Budget (SA)
> Document for administrative funds and program funds. On the Budget
> Line Tab, select the **Deactivate** button for the **Budget Line
> Action**, and the enter the appropriate **Assignment/Op Budget
> Level:** 1 for Budget Level 6; 2 for Budget Level 7; and 3 for Budget
> Level 8. To re-activate the budget for budget levels 6, 7, 8, process
> the same budget documents and select **Add/Activate** button for the
> **Budget Line Action** and the appropriate **Assignment/Op Budget
> Level**.