**Module 11: Department/Agency Programming, Planning, and Budgeting Type
System (OMB A-11)**

**Module Outline**

  ------------------------------------------------- ----------- ---------------------
  Topic                                                         Time Frame

  Introduction/Objectives                           10 minutes  

  Appropriation Categories                          40 minutes  

  The PPBE Process                                  30 minutes  

  Review                                            10 minutes  

  **Estimated/Approximate Time for Module           **1 hour    
  Completion**                                      and 30      
                                                    minutes**   
  ------------------------------------------------- ----------- ---------------------

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  **Topic 1: Introduction/Objectives**

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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| This module explores fund allocation and allocation categories, along |
| with the Planning, Programming, Budgeting, and Execution (PPBE)       |
| process for governmental financial planning.                          |
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  **Topic 1: Introduction/Objectives (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| This topic is important for government project managers because of    |
| the lead-time it takes and the strict rules for the use of taxpayer   |
| money.                                                                |
|                                                                       |
| -   Appropriation is the means of providing budget authority or       |
|     funding for your project.                                         |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   The Federal government uses the Planning, Programming, Budgeting, |
|     and Execution (PPBE) process                                      |
|                                                                       |
| -   Have to build a project plan and use it in a way that is          |
|     consistent with the constraint of the money lifecycle. This is    |
|     what makes this process unique for the government.                |
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  **Topic 1: Introduction/Objectives (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| [Objectives]{.underline}                                              |
|                                                                       |
| At the end of this module, you will be able to:                       |
|                                                                       |
| -   Describe the process of fund allocation within appropriation      |
|     categories                                                        |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   You will learn how funds are assigned to different appropriation  |
|     categories and allocated for different projects.                  |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Explain the process of budget development and execution           |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   You will learn about the PPBE process for planning, programming,  |
|     budgeting, and executing a project.                               |
|                                                                       |
|     (continued on the next page)                                      |
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  **Topic 1: Introduction/Objectives (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| [Objectives (continued)]{.underline}                                  |
|                                                                       |
| At the end of this module, you will be able to: (continued)           |
|                                                                       |
| -   Discuss the documentation process, which are employed in          |
|     development and decision making of a Department/Agency's total    |
|     federal fiscal activity for a given fiscal period                 |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   You will learn about the OMB A-11 policy for documenting the PPBE |
|     process.                                                          |
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  **Topic 1: Introduction/Objectives (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image7.png){width="0.49930555555555556in"                   |
| height="0.48819444444444443in"}**Where does the idea for the          |
| appropriation of funds in the government come from?**                 |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| Article 1, Section 9 of the U.S. Constitution states that no money    |
| can be withdrawn from the U.S. Treasury except as a result of         |
| appropriations made by law.                                           |
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  **Topic 1: Introduction/Objectives (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| This concludes the topic on the introduction and objectives. After    |
| addressing any questions the participants may have, inform them that  |
| we will be moving on to the next topic: Appropriation Categories for  |
| the Allocation of Funds.                                              |
+-----------------------------------------------------------------------+

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  ![](media/image7.png){width="0.49930555555555556in"
  height="0.48819444444444443in"}**What questions do you have regarding
  the Introduction and Objectives?**

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  -----------------------------------------------------------------------
  **Topic 2: Appropriation Categories for the Allocation of Funds**

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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| There are three major appropriation categories of funds:              |
|                                                                       |
| -   Often referred to as the **"colors of money"**                    |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Research, Development, Test, and Evaluation (RDT&E)               |
|                                                                       |
| -   Procurement                                                       |
|                                                                       |
| -   Operation and Maintenance (O&M)                                   |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Each category is intended to fund specific items.                 |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
  (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| RDT&E funds the following types of activities:                        |
|                                                                       |
| -   Development of equipment, material, or computer application       |
|     software.                                                         |
|                                                                       |
| -   Development Test and Evaluation (DT&E).                           |
|                                                                       |
| -   Initial Operational Test and Evaluation (IOT&E).                  |
|                                                                       |
| -   Operation costs for some R&D dedicated installations.             |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Procurement funds the following types of items and activities:        |
|                                                                       |
| -   Purchase of major end items and systems.                          |
|                                                                       |
| -   Initial issue of spares for above items.                          |
|                                                                       |
| -   All costs necessary to deliver a useful end item intended for     |
|     operational use or inventory.                                     |
|                                                                       |
| -   Major modifications to fielded systems.                           |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| O&M funds the following types of items and activities:                |
|                                                                       |
| -   Day-to-day operations                                             |
|                                                                       |
| -   Salaries                                                          |
|                                                                       |
| -   Training and education                                            |
|                                                                       |
| -   Travel                                                            |
|                                                                       |
| -   Fuel                                                              |
|                                                                       |
| -   Furniture, equipment, and tools                                   |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
  (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| As project managers, whatever money we are spending, it is coming     |
| from somewhere and it has strings attached. It is prudent for us to   |
| understand what color of money we're spending -- especially the       |
| obligation periods. Your agency may restrict you even further on this |
| -- each agency is different, and you need to find out what your       |
| agency restrictions are.                                              |
|                                                                       |
| 1\. Commit: Send request to budget person and mark X amount that I am |
| going to spend it for X project.                                      |
|                                                                       |
| 2\. Obligate: Putting the money into a contract. Really still sitting |
| in the government bank account, and the contractor can draw down on   |
| that (nobody can take it away without work).                          |
|                                                                       |
| 3\. Spend: Pay for Project X.                                         |
|                                                                       |
| 4\. De-obligate: Does not happen often, but if the money has not been |
| spent, it can be de-obligated.                                        |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| 5\. Liquidate: As you spend money, as the contractor gets paid, you   |
| are liquidating the obligation. You have a maximum of five years to   |
| liquidate the obligation. As you go through you may not spend all the |
| money -- if you have un-liquidated obligations, someone will come     |
| along and ask if it's not valid or not needed, and may take it back.  |
|                                                                       |
| If we\\ have received obligated money, but have some excess, we can   |
| use the same contractor for a project of similar scope and spend that |
| obligated money at the contractor.                                    |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Obligation Period                                                     |
|                                                                       |
| -   Each appropriation has a legal time limit, or obligation period,  |
|     within which funds can be obligated (i.e., put on contract).      |
|                                                                       |
|   -------------------------------- ---------------------------------  |
|   **Appropriation Categories**     **Obligation Period**              |
|                                                                       |
|   RDT&E                            2 Years                            |
|                                                                       |
|   Procurement                      3 Years                            |
|                                                                       |
|   Operations & Maintenance         1 Year                             |
|   -------------------------------- ---------------------------------  |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
  (continued)**

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| ![](media/image15.png){width="0.8854166666666666in"                   |
| height="0.8125in"}**Activity**                                        |
|                                                                       |
| Activity Purpose:                                                     |
|                                                                       |
| This activity will give the participants a chance to reinforce what   |
| they have learned about appropriation categories.                     |
|                                                                       |
| Activity Length: 10 minutes                                           |
|                                                                       |
| Activity Instructions:                                                |
|                                                                       |
| Have the participants fill out the following knowledge check.         |
|                                                                       |
| In the space to the right of the statement, write the letter of the   |
| appropriate appropriation category that corresponds with it.          |
|                                                                       |
| Write "A" for RDT&E, "B" for Procurement or "C" for Operations &      |
| Maintenance.                                                          |
|                                                                       |
|   ------------------------------------------------------- ----------  |
|   1\. A model used for simulating air resistance          A           |
|                                                                       |
|   2\. Fixing an air-conditioning system in a government   C           |
|   vehicle                                                             |
|                                                                       |
|   3\. Delivery cost of a finished aircraft                B           |
|                                                                       |
|   4\. Salary of an FAI employee                           C           |
|                                                                       |
|   5\. Gasoline used to fuel a tank                        C           |
|                                                                       |
|   6\. Lab usage for preliminary test of material strength A           |
|                                                                       |
|   7\. The existing X-Ray machine in an airport security   B           |
|   station must be updated to be compatible with new                   |
|   computers that are presently being designed.                        |
|   ------------------------------------------------------- ----------  |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
  (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| As a measure of fiscal discipline and control, Congress specifies     |
| funding policies or rules for each particular category.               |
|                                                                       |
| -   Policies specify how each agency computes the budget request for  |
|     each appropriation category in a given year.                      |
|                                                                       |
| -   Funding policies are:                                             |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Incremental Funding                                               |
|                                                                       |
| -   Full Funding                                                      |
|                                                                       |
| -   Annual Funding                                                    |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Which policy should you use?                                          |
|                                                                       |
|   -------------------------------- ---------------------------------  |
|   **Appropriation Categories**     **Funding Policy**                 |
|                                                                       |
|   RDT&E                            Incremental                        |
|                                                                       |
|   Procurement                      Full                               |
|                                                                       |
|   Operations & Maintenance         Annual                             |
|   -------------------------------- ---------------------------------  |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Annual Funding:                                                       |
|                                                                       |
| -   All money needed for Fiscal Year (FY).                            |
|                                                                       |
| -   Have to show a bona fide need for that fiscal year.               |
|                                                                       |
| -   If they are buying it Sept. 28, is it really a bona fide need for |
|     what FY?                                                          |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Incremental Funding:                                                  |
|                                                                       |
| -   For example, you signed a \$50,000 contract to develop something, |
|     but you do not have to fund everything all at once.               |
|                                                                       |
| -   Recently, Procurement Offices want you to obligate up front for   |
|     at least the first year, and in later years you can pay           |
|     incrementally.                                                    |
|                                                                       |
| -   If it is a time-and-materials contract, you can still fund it     |
|     incrementally.                                                    |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
  (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| Agencies have a lot of leeway -- in this module, there is an overview |
| of government funding, but agencies are all so different that this    |
| topic and its specifics may be better handled by discussions, because |
| the differences are so striking.                                      |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Full Funding:                                                         |
|                                                                       |
| -   All money needed for 12 months                                    |
|                                                                       |
| -   You can start the 12 months any time.                             |
|                                                                       |
| -   This is really handy, because you can use to skate around all the |
|     turbulence of October 1.                                          |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Colors of money have some restrictions on them, and knowing those     |
| colors allows you to plan accordingly.                                |
|                                                                       |
| -   The money expires.                                                |
|                                                                       |
| -   You have a very limited time to spend it.                         |
|                                                                       |
| -   Be nice to B+F!                                                   |
|                                                                       |
| -   Once you get to the Agency-level, you get all kinds of different  |
|     levels of forms, documents, etc.                                  |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
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| ![](media/image7.png){width="0.5006944444444444in"                    |
| height="0.4888888888888889in"}**As an example, how would we construct |
| a funding profile for the development and delivery of 190 new         |
| hydrogen powered vehicles for the National Park Service? Assume that  |
| development costs \$10 million and takes two years and that           |
| production is at the rate of 10 vehicles per month.**                 |
|                                                                       |
| **Answer:**                                                           |
|                                                                       |
| (use the flipchart to aid in the presentation of this information)    |
|                                                                       |
| The key to the answer is recognizing that the funding will come from  |
| several appropriation categories.                                     |
|                                                                       |
| The \$10M development spread over two years will be using RDT&E       |
| funds, the 190 vehicle purchase will take 19 months and use           |
| Procurement funds, and some unspecified amount will be needed for     |
| ongoing operating costs using Operations & Maintenance funds (specify |
| this amount - \$1 million/yr).                                        |
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  **Topic 2: Appropriation Categories for the Allocation of Funds
  (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| This concludes the topic on the appropriation categories for the      |
| allocation of funds. After addressing any questions the participants  |
| may have, inform them that we will be moving on to the next topic:    |
| PPBE process.                                                         |
+-----------------------------------------------------------------------+

  -----------------------------------------------------------------------
  ![](media/image7.png){width="0.5006944444444444in"
  height="0.4888888888888889in"}**What questions do you have regarding
  the Appropriation Categories for the Allocation of Funds?**

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

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  **Topic 3: The PPBE Process**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| After the project office has identified how much funding is needed    |
| for each appropriation category and year in the budget request, the   |
| next step is to get service/agency and eventually Department or       |
| Agency approval to request those funds.                               |
|                                                                       |
| -   Planning, Programming, Budgeting and Execution (PPBE) Process is  |
|     used to identify fiscal needs of the services and decide how to   |
|     allocate resources.                                               |
|                                                                       |
| -   Annual balancing act between requirements competing for limited   |
|     funds.                                                            |
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  **Topic 3: The PPBE Process**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| -   When determining preference, your project manager will debate:    |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   What is more important?                                           |
|                                                                       |
| -   What is the degree of difficulty?                                 |
|                                                                       |
| -   What is the history of the project, i.e. "Let's not start this    |
|     until next year and let's finish this other one instead?          |
|                                                                       |
| -   What are the politics around your office?                         |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Appropriation categories are the major funding classes by which   |
|     Congress provides funds for all Federal agencies.                 |
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  **Topic 3: The PPBE Process (continued)**

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| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| A key circular that contains the policy for documentation during this |
| process is the Office of Management and Budget's **OMB A-11 Part 3**. |
|                                                                       |
| -   Written in an attempt to improve project management, legislating  |
|     that money for projects comes with a string that you have to      |
|     manage it right.                                                  |
|                                                                       |
| -   Provides guidance on planning, budgeting, and acquisition of      |
|     capital assets.                                                   |
|                                                                       |
| -   Requires you to provide information on these assets in your       |
|     budget submissions to OMB.                                        |
|                                                                       |
| -   Includes guidelines for planning.                                 |
|                                                                       |
| -   OMB uses these submissions to review funding requests and         |
|     evaluate new and ongoing projects.                                |
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  **Topic 3: The PPBE Process (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| The federal government needs to manage better the planning, budgeting |
| and acquisition of capital assets, including information technology.  |
|                                                                       |
| -   The National Performance Review in 1993 and recent legislation    |
|     suggest that the government must improve its performance in this  |
|     area.                                                             |
|                                                                       |
| -   In recent years, OMB has issued guidance on asset acquisition,    |
|     conducted crosscutting reviews, and addressed specific asset      |
|     acquisition issues in agency review sessions during the fall      |
|     budget process.                                                   |
|                                                                       |
| -   GPRA and FASA have created statutory performance based reporting  |
|     and review requirements that complement the goals of OMB's asset  |
|     acquisition review.                                               |
|                                                                       |
| -   Part 3 encourages you to focus on the importance of capital       |
|     assets, including information technology, in carrying out the     |
|     mission of your agency within the context of the existing scoring |
|     rules and the limits on discretionary spending.                   |
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  **Topic 3: The PPBE Process (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| These things happen at a level high-above the PM and their effects    |
| trickle down. At entry-level, you should know what it means and what  |
| it does, and that's it.                                               |
|                                                                       |
| -   FASA (Federal Acquisition Streamlining Act) (Title V) requires    |
|     OMB to report on the cost, schedule, and performance goals for    |
|     asset acquisitions and how well you are meeting the goals.        |
|                                                                       |
| -   GPRA (Government Performance and Results Act) requires you to     |
|     develop mission statements, long range strategic goals and        |
|     objectives, and annual performance plans.                         |
|                                                                       |
| -   OMB published the *Capital Programming Guide* (June 1997) for     |
|     further guidance.                                                 |
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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| The following information should be provided as a part of an initial  |
| budget submission:                                                    |
|                                                                       |
| -   Information of the impact of full funding of capital assets now   |
|     funded incrementally.                                             |
|                                                                       |
| -   A capital asset plan and justification for major acquisitions     |
|     identified.                                                       |
|                                                                       |
| -   Guidelines for these submissions are contained in OMB A-11 Part   |
|     300.                                                              |
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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points: OMB A-ll Part 300**                                     |
|                                                                       |
| -   OMB A-11 is a form you fill in, usually used for the big projects |
|                                                                       |
| -   Each agency has different people, who fill out this form, but     |
|     it's a very valuable tool and you should know what it is. Most    |
|     agencies the capital planning group, some finance group does      |
|     this. Depending upon the size of the project, the PM can be       |
|     responsible for filling it out.                                   |
|                                                                       |
| -   The form goes to OMB -- it's an annual report.                    |
|                                                                       |
| -   This document is used for both Programs and Projects.             |
|                                                                       |
| -   OMB A-II only affects a small fraction of work. Ideally these     |
|     rigors would apply to more of our projects.                       |
|                                                                       |
|     (continued on the next page)                                      |
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  **Topic 3: The PPBE Process (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| OMB A-11: (continued)                                                 |
|                                                                       |
| -   Presents unified guidance designed to coordinate OMB's collection |
|     of agency information for its report to the Congress.             |
|                                                                       |
| -   Required by the Federal Acquisition Streamlining Act of 1994      |
|     (FASA) (Title V).                                                 |
|                                                                       |
| -   Ensures that your acquisition plans support the mission           |
|     statements long-term goals and objectives, and annual performance |
|     plans that you developed pursuant to the Government Performance   |
|     and Results Act of 1993 (GPRA)                                    |
|                                                                       |
| -   Submission allows OMB to carry out its reporting responsibilities |
|     under FASA without issuing additional central guidance.           |
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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.7708333333333334in"                    |
| height="0.7076388888888889in"} **[CONTENT TO BE                       |
| PRESENTED:]{.underline}**                                             |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| OMB A-11: (continued)                                                 |
|                                                                       |
| -   When developing your capital plans, you should follow the         |
|     "Principles of Budgeting for Capital Asset Acquisitions":         |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Located in appendix 300A.                                         |
|                                                                       |
| -   Also, use additional guidance in 300B.                            |
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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| This concludes the topic on the PPBE Process. After addressing any    |
| questions the participants may have, inform them that we will be      |
| moving on to the next topic: Review.                                  |
+-----------------------------------------------------------------------+

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  ![](media/image7.png){width="0.5006944444444444in"
  height="0.4888888888888889in"}**What questions do you have regarding
  the PPBE Process?**

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  -----------------------------------------------------------------------
  **Topic 4: Review**

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+-----------------------------------------------------------------------+
| ![](media/image3.png){width="0.75in" height="0.6916666666666667in"}   |
| **[CONTENT TO BE PRESENTED:]{.underline}**                            |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Let's review the learning objectives for this module on               |
| Department/Agency Programming, Planning, and Budgeting Type System    |
| (OMB A-11).                                                           |
|                                                                       |
| -   Discuss the documentation process, which are employed in          |
|     development and decision making of a Department/Agency's total    |
|     federal fiscal activity for a given fiscal period.                |
|                                                                       |
| -   Explain the process of budget development and execution.          |
|                                                                       |
| -   Describe the process of fund allocation within appropriation      |
|     categories.                                                       |
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| ![](media/image3.png){width="0.75in" height="0.6916666666666667in"}   |
| **[CONTENT TO BE PRESENTED:]{.underline}**                            |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Remember, appropriation is the means of providing budget authority or |
| funding for your project.                                             |
|                                                                       |
| -   The federal government uses the Planning, Programming, Budgeting, |
|     and Execution (PPBE) process.                                     |
|                                                                       |
| -   There are three major appropriation categories of funds, which    |
|     are often referred to as the "colors of money." They are:         |
|                                                                       |
| ```{=html}                                                            |
| <!-- -->                                                              |
| ```                                                                   |
| -   Research, Development, Test, and Evaluation (RDT&E)               |
|                                                                       |
| -   Procurement                                                       |
|                                                                       |
| -   Operation and Maintenance (O&M)                                   |
|                                                                       |
| Each category is intended to fund specific items.                     |
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| ![](media/image3.png){width="0.75in" height="0.6916666666666667in"}   |
| **[CONTENT TO BE PRESENTED:]{.underline}**                            |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| Also, remember the obligation period for each that was discussed.     |
|                                                                       |
|   -------------------------------- ---------------------------------  |
|   **Appropriation Categories**     **Obligation Period**              |
|                                                                       |
|   RDT&E                            2 Years                            |
|                                                                       |
|   Procurement                      3 Years                            |
|                                                                       |
|   Operations & Maintenance         1 Year                             |
|   -------------------------------- ---------------------------------  |
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  **Topic 4: Review (continued)**

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| ![](media/image3.png){width="0.75in" height="0.6916666666666667in"}   |
| **[CONTENT TO BE PRESENTED:]{.underline}**                            |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| As a measure of fiscal discipline and control, Congress specifies     |
| funding policies or rules for each particular category.               |
|                                                                       |
| The different policies were:                                          |
|                                                                       |
|   -------------------------------- ---------------------------------  |
|   **Appropriation Categories**     **Funding Policy**                 |
|                                                                       |
|   RDT&E                            Incremental                        |
|                                                                       |
|   Procurement                      Full                               |
|                                                                       |
|   Operations & Maintenance         Annual                             |
|   -------------------------------- ---------------------------------  |
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  **Topic 4: Review (continued)**

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| ![](media/image3.png){width="0.75in" height="0.6916666666666667in"}   |
| **[CONTENT TO BE PRESENTED:]{.underline}**                            |
|                                                                       |
| **Key Points:**                                                       |
|                                                                       |
| After the project office has identified how much funding is needed    |
| for each appropriation category and year in the budget request, the   |
| next step is to get service/agency and eventually Department or       |
| Agency approval to request those funds.                               |
|                                                                       |
| -   Planning, Programming, Budgeting and Execution (PPBE) Process is  |
|     used to identify fiscal needs of the services and decide how to   |
|     allocate resources.                                               |
|                                                                       |
| -   Annual balancing act between requirements competing for limited   |
|     funds.                                                            |
|                                                                       |
| Appropriation categories are the major funding classes by which       |
| Congress provides funds for all Federal agencies.                     |
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  **Topic 4: Review (continued)**

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+-----------------------------------------------------------------------+
| ![](media/image1.png){width="0.40555555555555556in"                   |
| height="0.6354166666666666in"} **Instructor Notes:**                  |
|                                                                       |
| This concludes Module 11 -- Dept/Agency Programming, Planning and     |
| Budgeting Type System. Address any questions the participants may     |
| have before moving on to Module 12 -- Realistic or Operational Test   |
| and Evaluation.                                                       |
+-----------------------------------------------------------------------+

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  ![](media/image7.png){width="0.5006944444444444in"
  height="0.4888888888888889in"}**What questions do you have about Module
  11 -- Dept/Agency Programming, Planning and Budgeting Type System?**

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