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Office of the Chief Financial Officer

Office Work Instruction

Budget & Performance Plan Formulation

Approved by:

Stephen J. Varholy

> Deputy Chief Financial Officer

# DOCUMENT HISTORY LOG

+---------+--------+--------+-----------------------------------------+
| Status  | Do     | Eff    | Description                             |
|         | cument | ective |                                         |
| (Ba     |        |        |                                         |
| seline/ | Re     | Date   |                                         |
|         | vision |        |                                         |
| Re      |        |        |                                         |
| vision/ |        |        |                                         |
|         |        |        |                                         |
| Ca      |        |        |                                         |
| nceled) |        |        |                                         |
+---------+--------+--------+-----------------------------------------+
| B       |        | 1/7/00 |                                         |
| aseline |        |        |                                         |
+---------+--------+--------+-----------------------------------------+
| R       | A      | 3      | Incorporation of Pre-Assessment Audit   |
| evision |        | /20/00 | comment on flowchart (6.7 & 6.8). Minor |
|         |        |        | text and punctuation corrections (1.0,  |
|         |        |        | 2.0, 3.0, 6.0 & 7.0). Added word to     |
|         |        |        | follow process (6.1).                   |
+---------+--------+--------+-----------------------------------------+
| R       | B      | Fe     | Minor corrections to (a) clarify        |
| evision |        | bruary | Enterprise as Enterprise Associate      |
|         |        | 8,     | Administrator and Functional Office as  |
|         |        | 2002   | Functional Office and Crosscut Stewards |
|         |        |        | and (b) improve punctuation for         |
|         |        |        | consistency. Update of Section 7.       |
|         |        |        | Quality Records, to reflect more        |
|         |        |        | accurately the Schedule & Item Number   |
|         |        |        | and Retention/Disposition language and  |
|         |        |        | to include reference to General Records |
|         |        |        | Schedule 5 for Budget Preparation,      |
|         |        |        | Presentation and Apportionment Records. |
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|         |        |        |                                         |
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**1. Purpose:** Establish and define the steps to be followed by the
Office of the Chief Financial Officer (CFO) for formulating the Agency's
OMB budget submission, Performance Plan, and the President's budget to
Congress**.**

2.  **Scope and Applicability**

**2.1 Scope:** The budget formulation process applies to the development
of Budget Year (BY) through BY +4 budget requirements for all NASA
appropriated funds and anticipated reimbursements. This documents the
processes followed at the Agency-level for formulation, review, and
disposition of budget requirements for all programmatic and
institutional activities. In addition, this is the process utilized to
formulate the annual Performance Plan that is associated with the
execution of the budget.

**2.2 Applicability:** This OWI outlines the activities and steps which
are performed by the staff of the Resources Analysis Division in the
Office of the Chief Financial Officer to work with the Enterprise
Associate Administrators (EAAs), Functional Offices (FOs) and Crosscut
Stewards to develop the Agency's budget and performance plan.

**3. Definitions:**

CFO Chief Financial Officer

B Comptroller

BR Resources Analysis Division

POP Program Operating Plan

OMB Office of Management and Budget

FOs Functional Office

EAAs Enterprise Associate Administrators

Crosscut Stewards Crosscutting Process Management Major Four Activities:

Manage Strategically; Provide Aerospace Products and

> Capabilities; Generate Knowledge and Communicate
>
> Knowledge

CIC Capital Investment Council

SMC Senior Management Council

OMB/MAX OMB's budget database

Passback OMB's markup of the Agency's budget

**4. References**

NPD 1000.1 NASA Strategic Plan

NPD 1000.2 NASA Strategic Management Handbook

OMB Circular A-11

Integrated Financial Management System (Budget Module)

Annual NASA Performance Plan

**5.** ![](media/image2.wmf)**FLOWCHART**

![](media/image3.wmf)

![](media/image4.wmf)

![](media/image5.wmf)

6.  **Procedure**

*Version Control*

**The budget development is controlled through the Integrated Financial
Management System (IFMS) budget formulation database. Access to the
database is controlled within Code BR by a Functional Administrator, and
is open to authorized users at HQS and field Centers, using access
accounts and passwords. Access, inquiry and update privileges are under
the control of the Functional Administrator. Different processes
representing separate "stages" of the budget are opened and closed at
scheduled intervals based on the budget schedule contained in the annual
POP guidelines. Configuration control is maintained by "freezing" the
previous budget process prior to opening the next process, and allowing
update of the data [only]{.underline} within the new (opened) process.
Previous processes remain active for viewing and/or comparison purposes
in separate segments of the database.**

+----+----------+-----------------------------------------------------+
| ## | ##       | ## Action                                           |
|  S | Actionee |                                                     |
| te |          |                                                     |
| p  |          |                                                     |
+====+==========+=====================================================+
| 6  | B        | OMB Planning Guidance or delivery of the            |
| .0 |          | President's budget to Congress (whichever occurs    |
|    |          | first) is the activity that signals the beginning   |
|    |          | of the next year's budget formulation process.      |
+----+----------+-----------------------------------------------------+
| 6  | B, BR    | Issue POP guideline call and develop and integrate  |
| .1 | Analysts | guidelines. EAAs, FOs and Crosscut Stewards are     |
|    |          | required to submit their POP guidelines via an      |
|    |          | electronic guideline call. Collect all program      |
|    |          | guidance from EAAs, FOs and Crosscut Stewards.      |
|    |          | Also, collect all related policy guidance including |
|    |          | Strategic Plan, Performance Plan, Administration    |
|    |          | direction, applicable policies, and NASA            |
|    |          | Administrator's direction.                          |
|    |          |                                                     |
|    |          | Integrate all budget guidance received into         |
|    |          | consolidated document, which consist of, electronic |
|    |          | documents, or files on a shared computer drive or   |
|    |          | internet site. Provide formats, schedule, and       |
|    |          | consolidated guidance to the EAAs, FOs, Crosscut    |
|    |          | Stewards and Centers electronically. Content and    |
|    |          | formats are based on Enterprise/FO/Crosscut         |
|    |          | Steward/Agency data requirements and/or needs and   |
|    |          | OMB-specific guidance.                              |
+----+----------+-----------------------------------------------------+
| 6  | BR       | Monitor and support Center/ Lead Center POP         |
| .2 | Analysts | process. Participate in budget formulation          |
|    |          | activities, both at Performing Centers and Lead     |
|    |          | Centers. Offer guidance, assessment and other       |
|    |          | assistance based on unique knowledge and            |
|    |          | experience.                                         |
+----+----------+-----------------------------------------------------+
| 6  | BR       | Review Enterprise and FO budget submissions and     |
| .3 | Analysts | Enterprise, FO and Crosscut Steward Performance     |
|    |          | Plan data against the financial and policy guidance |
|    |          | (Step 6.1). Prepare analysis, issues, and           |
|    |          | recommendations for briefing to Code B Management   |
|    |          | for preparation of pre-brief to Administrator.      |
+----+----------+-----------------------------------------------------+
| 6  | BR       | Prepare & present overall proposed Agency budget &  |
| .4 | A        |                                                     |
|    | nalysts, | Performance plan. Prepare consolidated picture of   |
|    | B        | Agency budget and performance plan for Comptroller  |
|    |          | to present to Agency Management (CIC and SMC).      |
|    |          | Highlight issues for discussion based on            |
|    |          | adherence/non-adherence to guidance and other       |
|    |          | unique factors. Provide schedule detail and agenda  |
|    |          | for upcoming budget meetings.                       |
+----+----------+-----------------------------------------------------+
| 6  | BR       | Provide staff support to CIC. Per CIC direction,    |
| .5 | Analysts | prepare consolidated issues, recommendations, and   |
|    |          | Straw Budget Proposal for review. Modify budget     |
|    |          | proposal as directed by CIC.                        |
+----+----------+-----------------------------------------------------+
| 6  | B        | Based on CIC direction, Comptroller presents CIC    |
| .6 |          | Budget Recommendation to Administrator.             |
+----+----------+-----------------------------------------------------+
| 6  |          | Administrator approves? If Administrator approves,  |
| .7 |          | proceed to Step 6.9. If Administrator directs       |
|    |          | changes, proceed to 6.8                             |
+----+----------+-----------------------------------------------------+
| 6  | BR       | Incorporate Administrator's Changes. Comptroller    |
| .8 | A        | will revise proposed budget to reflect the          |
|    | nalysts, | Administrator's changes. Provide control numbers to |
|    | B        | Enterprises and FOs.                                |
+----+----------+-----------------------------------------------------+
| 6  | BR       | Establish Final Budget Levels & Performance Plan    |
| .9 | A        | metrics consistent with Administrator's direction.  |
|    | nalysts, | B will provide assistance/recommendations to        |
|    | B        | Administrator/Deputy Administrator to resolve any   |
|    |          | outstanding issues. Establish final control numbers |
|    |          | for Agency budget to OMB and Performance Plan.      |
|    |          | Performance Plan is based on Enterprise, FO and     |
|    |          | Crosscut Steward input (Step 6.3) updated from      |
|    |          | direction/approval received throughout the budget   |
|    |          | process milestones.                                 |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Develop OMB Submit -- Justification Documents,      |
| 10 | Analysts | Performance Plan, and data requirements. BR will    |
|    |          | provide directions, formats and schedule to the     |
|    |          | Enterprises, FOs and Crosscut Stewards for          |
|    |          | development of the OMB budget submit and            |
|    |          | Performance Plan. Format and content are dictated   |
|    |          | by data requirements detailed in the OMB guidance   |
|    |          | letter and the previous year financial detail.      |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Develop OMB transmittal letter to accompany the     |
| 11 | Analysts | budget submission. Prepare draft OMB transmittal    |
|    |          | letter that will outline the Agency's budget        |
|    |          | content and issues for review and concurrence by    |
|    |          | the Administrator, EAAs, FOs and Crosscut Stewards. |
|    |          | Incorporate suggested changes and prepare final     |
|    |          | letter for Administrator's signature.               |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Review and integrate Budget and release for         |
| 12 | A        | printing. BR and B review budget narratives for     |
|    | nalysts, | accuracy against approved recommendations and       |
|    | B        | submission requirements; integrate budget into      |
|    |          | consolidated document and release for printing to   |
|    |          | the Headquarters Printing & Design Branch.          |
+----+----------+-----------------------------------------------------+
| 6. | B        | Submit Letter, Budget & Initial Performance Plan to |
| 13 |          | OMB. Deliver to OMB the consolidated Agency budget  |
|    |          | submit and Performance Plan.                        |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Develop Budget Presentation to OMB, reflecting the  |
| 14 | A        | financial details, program content and performance  |
|    | nalysts, | metrics contained in the printed submission.        |
|    | B        | Presentation reflecting overview of agency resource |
|    |          | requirements and issues is provided to both         |
|    |          | management and staff members.                       |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Monitor & support OMB Briefings, Identify Issues. B |
| 15 | A        | and BR staff attends and supports Enterprises and   |
|    | nalysts, | FOs budget briefings to OMB. Identify issues        |
|    | B        | discussed at briefings and prepare meeting notes    |
|    |          | for Code B and Agency management.                   |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Respond to OMB questions/data requirements. Prepare |
| 16 | A        | responses and provide additional information        |
|    | nalysts, | requested by OMB. Coordinate and review the EAAs,   |
|    | B        | FOs and Crosscut Stewards response to OMB.          |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Provide analyses & support to Agency passback       |
| 17 | A        | management. Review OMB's markup of Agency budget.   |
|    | nalysts, | Analyze to identify issues and options to Code B    |
|    | B        | and agency management for negotiations with OMB.    |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Establish Final Budget Levels, Guidance & Direction |
| 18 | A        | for Preparation of President's Budget. Based on     |
|    | nalysts, | final negotiations with OMB, provide final control  |
|    | B        | numbers, guidance, formats, and schedule to         |
|    |          | Enterprises, FOs and Crosscut Stewards for the      |
|    |          | preparation of the President's budget and           |
|    |          | Performance Plan.                                   |
+----+----------+-----------------------------------------------------+
| 6. | BR       | Review & Integrate budget; enter budget into OMB    |
| 19 | A        | MAX database. Review for accuracy against final     |
|    | nalysts, | control numbers, and integrate EAA and FOs budget   |
|    | B        | narrative, data requirements, and Performance Plan  |
|    |          | into consolidated document. Release Agency budget   |
|    |          | narrative and Performance Plan to Headquarters      |
|    |          | Printing & Design Branch for printing.              |
+----+----------+-----------------------------------------------------+
| 6. | B, BR    | Submit Budget to Congress. Arrange with             |
| 20 | Analysts | Headquarters Transportation Branch to deliver       |
|    |          | Agency Budget to Congress.                          |
+----+----------+-----------------------------------------------------+

7.  **Quality Records**

+------------+-----+---------+--------+--------+--------------------+
| Record     | Ow  | L       | Record | Sc     | Ret                |
| Iden       | ner | ocation | Media: | hedule | ention/Disposition |
| tification |     |         | Elec   | Number |                    |
|            |     |         | tronic | and    |                    |
|            |     |         | or     | Item   |                    |
|            |     |         | Hard   | Number |                    |
|            |     |         | Copy   | (NPG   |                    |
|            |     |         |        | 1      |                    |
|            |     |         |        | 441.1, |                    |
|            |     |         |        | GRS 5) |                    |
+------------+-----+---------+--------+--------+--------------------+
| Agency POP | Dir | BR BRIC | Elec   | GRS    | Destroy when two   |
| Guideline  | BR  | &       | tronic | 5.1    | years old.         |
| Call       |     |         |        |        |                    |
|            |     | CNBS    |        |        |                    |
+------------+-----+---------+--------+--------+--------------------+
| Agency POP | Dir | BR BRIC | Elec   | GRS    | Destroy when two   |
| Guidelines | BR  | &       | tronic | 5.1    | years old.         |
|            |     |         |        |        |                    |
|            |     | NBS     |        |        |                    |
+------------+-----+---------+--------+--------+--------------------+
| Relevant   | Dir | BR      | Ha     | GRS    | Destroy one year   |
| Documents  | BR  | Files   | rdcopy | 5.2    | after the close of |
| (Budget    |     |         |        |        | the fiscal year    |
| Issue      |     |         |        |        | covered by the     |
| Book,      |     |         |        |        | budget.            |
| Straw      |     |         |        |        |                    |
| Proposal)  |     |         |        |        |                    |
+------------+-----+---------+--------+--------+--------------------+
| Copy of    | Dir | BR      | Ha     | GRS    | Destroy when 2     |
| OMB        | BR  | Files   | rdcopy | 5.1    | years old.         |
|            |     |         |        |        |                    |
| T          |     |         |        |        |                    |
| ransmittal |     |         |        |        |                    |
|            |     |         |        |        |                    |
| Letter     |     |         |        |        |                    |
+------------+-----+---------+--------+--------+--------------------+
| OMB Budget | Dir | BR      | Elec   | Sched  | Permanent.         |
| Submit:    | ,BR | U/Drive | tronic | 9,     | Transfer to NARA   |
| (a.)       |     |         |        | item   | when 35 yrs old.   |
| Jus        |     | NBS     |        | 2A     |                    |
| tification |     |         |        |        |                    |
| Documents; |     |         |        |        |                    |
| (b.)       |     |         |        |        |                    |
| Database   |     |         |        |        |                    |
| Numbers    |     |         |        |        |                    |
+------------+-----+---------+--------+--------+--------------------+
| OMB        | OMB | Code BR | Ha     | GRS 5  | Destroy when two   |
| Passback   |     | Files   | rdcopy | .1     | years old.         |
+------------+-----+---------+--------+--------+--------------------+
| Integrated | BR  | Code BR | Ha     | GRS    | Destroy when two   |
| Budget     |     | Files   | rdcopy | 5.1    | years old.         |
+------------+-----+---------+--------+--------+--------------------+
| Final      | Dir | Code BR | Ha     | Sched  | Permanent.         |
| P          | ,BR | Files   | rdcopy | 9,     | Transfer to NARA   |
| erformance |     |         |        | item   | when 35 yrs old.   |
| Plan       |     |         |        | 2A     |                    |
+------------+-----+---------+--------+--------+--------------------+
| P          | Dir | Code BR | Ha     | Sched  | Permanent.         |
| resident's | ,BR | Files   | rdcopy | 9,     | Transfer to NARA   |
| Budget     |     |         |        | item   | when 35 yrs old.   |
|            |     |         |        | 2A     |                    |
+------------+-----+---------+--------+--------+--------------------+