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          Subject:  SYSTEM REQUIREMENTS AND OPERATION

3-00-00   General
     10   System Documentation
     20   Elements Comprising a Total System
     30   Basic Structure of a System
     40   Appropriation Accounting B Input and Output
          Controls, Revenue and Receipts, Closing Entries
     50   Obligation Control
     60   Accounts Payable and Other Accrual Based Processes
     70   Disbursements
     80   System Output  

3-00-00   GENERAL

This accounting manual part prescribes general guidelines for the
establishment of accounting records and their maintenance and control. 
The forms and processes described are not to be applied arbitrarily. 
Rather, the intent is to provide general guidance to financial
management, officials, systems analysts, and others responsible for
the development and maintenance of agency accounting systems, so that,
each system in addition to meeting the specific needs of the agency
will consistently provide compatible data required by the Department,
Congress and the Control Agencies.  External reporting requirements
and the procedures for establishing internal reporting requirements
for accounting systems are set forth in Part 5, Financial Reporting,
of this manual.

3-00-10   SYSTEM DOCUMENTATION

     A.   The accounting system in each agency will be fully documented in
     an accounting manual which will serve as the official means of
     detailed communication and reference.  It should contain
     accounting policies, account formats, methods, procedures, and
     practices and the forms to be employed.  The use of documents,
     records and forms will be clearly defined and processes simply
     describe.  All matters essential to the proper functioning and
     control of the system will be covered.  It is important that the
     manual be complete and currently maintained so that:

               1.   It will serve as a detailed guide for the conduct of daily
          operations by supervisors and clerks, and thereby form the
          basis for achieving uniformity, consistency, and reliability
          in accounting operations.

               2.   It will serve as a means of communication with those persons
          concerned with processing system input documents and those
          who use the reports and data compilations produced by the
          system.

               3.   It will serve as a means of indoctrination and instruction
          of new personnel.

               4.   It will serve as a means of broadening and increasing the
          capabilities of accounting personnel generally.

          Also, system integration, coordination, responsiveness, and
     control depend essentially upon clear precise communication and
     understanding of the procedures to be followed.  Consistent
     attainment of this objective is not possible, particularly in the
     larger agencies, without a comprehensive procedures manual.

3-00-20   ELEMENTS COMPRISING A TOTAL SYSTEM

A total accounting system includes all input documents evidencing
accounting transactions, all of the accounts and subsidiary records
maintained, trial balances, working papers, reports, and the detailed
procedures which make it a workable system.  In a mechanical system,
either EAM or EDP, printouts of accounts information will be produced
at regular intervals.  These printouts will be indexed and retained in
post binders.  Each agency's accounting manual will specify the
documents to be used as a basis for entry or as the record to be
employed in each phase of the accounting process or class of accounts
affected.  It will establish specific responsibility for control and
custody of the documents.  All transactions, adjustments, analyses,
accruals, and related processes will be completely documented.  They
will be referenced and maintained so as to clearly support the entries
to the accounts and the reports produced from them.  All documents
must be readily accessible for reference at all times.

The use of procedures, methods and techniques not prescribed or
explained in the accounting manual will be avoided.  Methods and
techniques occasionally employed for special reports and analyses will
be fully documented and retained with the related working papers. 

3-00-30   BASIC STRUCTURE OF A SYSTEM

A.   General
          The chart of general ledger accounts prescribed in Chapter 3-20
     of this manual, which includes account codes, account title,
     account definitions and transaction flow specifications, forms
     the basis structure of the accounting system outlined in this
     chapter.  This general chart of accounts fulfills the
     requirements prescribed by the General Accounting Office and the
     Bureau of the Budget and is structured with sufficient
     flexibility to meet the needs of all agencies within the
     Department.  Use of additional or substitute accounts to meet any
     unique situations or an agency must be cleared in advance with
     the Office of Comptroller.

B.   Functions of the Account Structure
          The basic structure of the chart of general ledger accounts is
     functionally segmented as follows:

                                             1.   Assets         5.   Reciprocal and income 
                                             2.   Liabilities    6.   Expense
                                             3.   Capital        7.   Statistical
                         4.   Budgetary

          The specific account titles, codes, contents and transactions, of
     individual accounts within each segment are detailed in Chapter
     3-20, General Ledger Accounts.  The functions of each segment as
     follows:

               1.   The asset accounts primarily reflect the resources available
          to an agency to carry our its assigned program(s).  Among
          this largest group of prescribed accounts are (a) separate
          accounts reflecting fund balances with the U.S. Treasury for
          each appropriation, (b) various receivable and advance
          payment accounts, (c) inventory accounts, and (d) fixed
          asset accounts.

                    Each agency has the responsibility for maintaining current
          and accurate records of individual disbursements and
          deposits.  The Treasury Deportment maintains only summary
          control totals for each agency accounting station.  Net
          disbursements and deposits of receipts must be reconciled
          monthly with the U.S. Treasury summary accounts.  Reports of
          net disbursements and receipts by appropriation, fund, and
          receipt accounts together with related control totals must
          be furnished the U.S. Treasury shortly after the close of
          each month.

                    The inventory and fixed asset accounts are control accounts
          over detailed property records.  Amounts representing
          current consumption of these assets are obtained from either
          subsidiary accounts or records and are the basis for charges
          to the expense accounts.

               2.   The accounts payable and accrued liability accounts reflect
          accrued expenditures for which payment is not made or due in
          the current accounting period.  Entries to accounts payable
          will be recorded currently as receiving or work progress
          reports are received.  The control accounts are usually
          supported by subsidiary accounts or records for each
          creditor.  In mechanized operations, either EAM or EDP, the
          subsidiary records may be individual transactions of amounts
          owed to creditors recorded on punch cards or magnetic tape. 
          Entries to the accrued liability accounts will be determined
          at the end of each fiscal period (monthly for most
          applicable objects).  Accruals are determined for such
          objects, among others, as salaries and related personnel
          benefits earned during the fiscal period but not due for
          payment until the subsequent fiscal period, travel expenses
          incurred but not paid in the fiscal period, continuing
          contractual type services not billed or paid monthly, and
          unfunded expenses such as accrued annual leave.

                    Accrued expenditures as accumulated in the liability
          accounts will differ from obligations incurred for some
          objects of expenditure because some obligations are incurred
          as contracts are awarded or orders for goods or services are
          placed regardless of when the goods will be received or
          services rendered.

                    Separate accounts payable and accrued liability accounts
          must be maintained by appropriation for (1) amounts owed to
          Government agencies and (2) amounts owed to other than
          Government agencies.  This information is pertinent to
          establishing the total amount owed by the Government as a
          whole.

               3.   Agency equity, as represented by the Capital Accounts ("300
          Series") is defined as residual accountability for resources
          which are within the control of the agency and carry forward
          to subsequent fiscal periods.  These resources include
          inventories, prepaid expenses, fixed assets (net to
          depreciation) and deferred charges.  The periodic change in
          agency equity is computed in the closing process.

                    The difference between Expended Appropriations (a/c 471) and
          Income Control (a/c 551) and Expense Control (a/c 601)
          represents changes in selected resources.  In the case of
          revolving funds gains or losses from operations are included
          in the computation of the change in agency equity.  For
          other type funds, the unobligated balances lapse at the end
          of their period of availability and revert to the general
          fund of the U. S. Treasury, therefore, have no effect on
          equity.

               4.   Budgetary Accounts.  The budgetary segment of accounts ("400
          Series," & above) is used to record and control
          appropriations and funds from, the point of authorization or
          receipt through apportionment, allotment, obligation, and
          expenditure.  Control and subsidiary record format and
          content are arranged primarily for the primarily for the
          purpose of controlling, accounting, and reporting on the
          status of funds in accordance with statutory and regulatory
          requirements.  Appropriations and other congressional
          authorizations are credited as enacted.  Estimated
          reimbursements and other available funds (transfers,
          transfer appropriations) are similarly recorded in
          accordance with interagency agreements and other
          authorizations.  Apportionment approved by the Bureau of the
          Budget and allotments issued within an agency also are
          entered in these accounts.  The remaining entries are
          primarily those which arise from carrying out the agency's
          programs, i.e., fiscal transactions resulting from direct
          operations, grants, etc.  They are entries which record in
          summary from by appropriation the amounts which reduce or
          increase the available funds.  These accounts facilitate the
          control of funds and permit rapid preparation of status of
          funds reports at the allotment level or higher.

          5.   Reciprocal Control and Income("500 Series," Segment 5)

                         a.   Reciprocal Control
                              This segment of accounts is employed when the general
               ledger and/or allotment ledger has been decentralized
               to field stations of an agency.  The accounts are also
               used to facilitate transfer and control of parts of an
               appropriation or fund which will be used by more than
               one agency of the Department.  This type of transfer
               is similar to an allocation to a transfer
               appropriation account  (allotments of the Civil Rights
               appropriation is an example of this type of transfer). 
               See explanation of use and sample entries in Sections
               3-20-30 and 3-20-50 of this manual.

                         b.   Income
                              This segment of accounts is used to record current
               year operating and other income.  Appropriate
               subsidiary records should be maintained to permit
               analysis of income by types of services rendered,
               goods supplied, interest earned, etc.

          6.   Expense Control ("600 Series," Segment 6)
                    This segment of accounts functions as a control over the
          accrual base expense data maintained in detailed subsidiary
          accounts and records.  Two sub-segments will be maintained
          in this series. One for funded costs and the other for
          unfunded costs (annual leave accruals and depreciation):

                                                                           a.   The subsidiary accounts for funded costs          
                              will be maintained at organizational levels consistent
               with assigned responsibility for effective management
               of an activity, operation, or extended project. Short-
               range projects need not be established as cost
               centers; cost findings may be used instead to
               determine costs of such projects to avoid frequent
               changes in account classifications.
     
                         b.   Unfunded costs will be distributed monthly only at the
               major organizational or budget activity level.  Finer
               distribution of these costs will be made as frequently
               as required to determine total costs of reimbursable
               operations and in analyzing and comparing costs of
               measurable operations.

                              The sources of entry to the expense control segment of
               accounts are:

                              (1)  The Accounts Payable Process
                              (2)  The Recording of Accrued Liabilities
                                   (3)  Revenue and Receipts Processes for Refunds
                                   (4)  The Disbursements Process

                    The Expense Segment of Accounts is closed out to the "300
          Series", Capital Accounts at the end of each accounting
          period.

               7.   Statistical Accounts ("700 Series", Segment 7)
                    This segment contains accounts which primarily perform
          certain ancillary accounting functions in relation to the
          Civil Service Commission and Treasury, such as, control
          accounts for retirement fund deductions and payments.  The
          uses of these various accounts are described in Section 3-
          20-30 of this manual.

3-00-40   APPROPRIATION ACCOUNTING - INPUT AND OUTPUT
                    CONTROLS, REVENUE AND RECEIPTS, CLOSING ENTRIES

The flow of transactions through the budgetary segment of accounts
provides for identification of (1) the source and nature of funds; (2)
their status as to apportionment, allocation, and allotment; and (3)
their status with respect to obligations incurred, expenditures, and
realization of reimbursements.  These are required accounts which
serve as input and output controls for the entire accounting system. 
The design of allotment and other subsidiary accounts for a particular
agency's system will be structured in accordance with the program and
administrative requirements of the agency.  These requirements will be
established in the manner set forth in Chapters 5-00 and 5-10). 
Initial entries in the budgetary accounts (through the allotment
stage) are made form documents evidencing (1) congressional approval
of appropriations and authorizations to incur obligations or expend
special funds, (2) apportionments (some appropriations or funds may
not be subject to apportionment), and (3) allotments approved by the
agency's budget office.  Changes and adjustments in these accounts
must be similarly evidenced prior to entry.  Two transaction flows are
prescribed; the first, for funds subject to apportionment and the
second, for funds not subject to apportionment.  These transactions
flows are outlined in the charts and explanatory test following:

A.   Flow of funds subject to apportionment
          Funds subject to apportionment include:

          1.   Direct Appropriations.
               2.   Contract and Other Unfunded Authorizations and Transfers
          Authorized by Congress.
               3.   Authorized Reimbursements to Appropriations and Available
          Receipts.

                                
            "FLOW OF FUNDS SUBJECT TO APPORTIONMENT
                IN THE USING AGENCY'S ACCOUNTS"
                                
            CHART NOT AVAILABLE IN ELECTRONIC FORMAT
                                
.                    The entries, for funds subject to apportionment, shown in
          the chart on the preceding page are as follows: 

Entry Number

               1    Direct appropriation (Dr Account 101, Cr account 451) are
          entered from appropriation warrants issued by the Treasury
          Department and countersigned by the Comptroller General.

               2    Contract and other unfunded authorization and transfers (Dr
          account 116, Cr account 451) a re entered from the documents
          evidencing congressional authorization (a) for contract
          negotiation, (b) for consolidation, merger, or transfer of
          appropriations,   for use of certain general or special fund
          receipts as realized, and (d) to expend trust fund monies up
          to an established limit.

               3    Estimated reimbursements authorized in the approved budget
          are entered (Dr a/c 401, Cr a/c 451).

               4    This entry (Dr a/c 101, Cr a/c 116) records the funding of
          disbursing accounts by Treasury in accordance with prior
          authorizations (previously entered in 2 above) as evidenced
          by:

                         (a)  Warrants issued by Treasury in accordance with
               appropriations enacted to fund prior Congressional
               authorizations.

                         (b)  Accomplished transfer documents (SF-1151) evidencing
               the actual transfer, merger, or consolidation of funds
               in accordance with Congressional authorization.  Ion
               the case of Congressional authorizations to expend
               funds directly from trust accounts, the agency
               responsible for initiating action to transfer monies
               to its disbursing account will request the monies only
               as needed to meet current disbursement requirements.

                         (c)  The receipt and deposit of available receipts in
               accordance with prior authorization.

                    At this point in the flow, the total reflected in Account
          451 forms the basis for preparation of the apportionment
          request to the Bureau of the Budget and should agree with
          the total of amounts reflected on the Standard  Form (SF-132
          or 142) submitted.  Adjustments or changes in the amounts
          recorded in these accounts are entered from documents
          evidencing BoB changes in the operating budget.  The flow of
          funds our of Account 451 (Unapportioned Funds) is based upon
          BoB apportionments.  Any balance remaining in Account 451
          reflects the amount of Unapportioned funds or reserves as
Entry Number

                    indicate on the initial or revised SF-132's (or 142's)
          approved by the Bureau of the Budget.

               5    Funds apportioned for obligation and expenditure in the
          current quarter are transferred to Account 456 pending the
          issuance of allotments.

               6    Funds apportioned for obligation and expenditure in
          subsequent quarters are temporarily transferred to and
          reserved in Account 455.  At the beginning of each quarter,
          the amount apportioned for that quarter is moved into
          Account 456 pending the issuance of allotments.

               7    Approved allocations to other Government agency transfer
          appropriation accounts, are entered as a debit to accounts
          455 and 456 and a credit to account 459 in accordance with
          approved apportionment schedule.  The request for
          apportionment of such funds is based upon an agreement
          between the parent and using agencies.  Such allocations are
          usually confined to large construction or similar projects,
          specified in the parent appropriation, for which direct
          supervision and administrative responsibility is assumed by
          the agency receiving the allocation.

               8    Establishment and issuance of official allotments, within
          the apportioned limits for each appropriation, are recorded
          in this entry (Dr a/c 456, Cr a/c 461).

               9    Obligations are recorded in summary form at the
          appropriation and allotment control level from batched and
          cleared documents evidencing transactions (Dr a/c 461, Cr
          a/c 465.  The totals secured in posting to the subsidiary
          records (allowance controls) are reconciled to the amounts
          previously entered in the control accounts.  In a computer
          system, as batch total is used as the major control and the
          input run sheets provide the distribution of totals by
          appropriations, allotments, and allowances, if used.

               10   Accrued expenditure transactions, either accounts payable or
          accrued liabilities are the source of this entry.  The
          liquidating debit to Account 465 must be in the total of
          amount previously obligated for the accrued expenditures
          being processed.  Any difference between the totals
          previously obligated and the total of amounts to be paid
          must be adjusted in the entry increasing or decreasing the
          unobligated balance (a/c 461).  Payment transactions not
          preceded by establishment of an obligation will usually be
          recorded as a debit to 461, Unobligated Allotments and a
          credit to 471, Expended Appropriations.

Entry Number
                    The credit to account 471 corresponds to the total amount of
          the accrued expenditure transactions processed in each
          batch.  In a computer operation these summary entries are
          verified by comparing the individual amounts with the
          amounts previously recorded as obligations.

               11   As measurable units of reimbursable work or services are
          completed, the amounts earned are billed and recorded as a
          credit to Account 482.  Account 482 serves to assemble
          reimbursement income data for comparison to the budgeted
          amounts recorded in Account 401, Estimated Reimbursements,
          to provide the means of keeping allotments in line with
          realized income in accordance with Section 11, Circular A-
          34, Bureau of the Budget.

                    In a system where volume is low and other requirements
          permit, billings may be charged directly against existing
          advance accounts.  The preferable practice is to charge all
          billings to accounts receivable, and advances earned are
          cleared against the receivable.  Two entries are thus
          involved (1) Dr 1110, Accounts Receivable (Government), Cr.
          A/C 482, Reimbursements Earned, (2) Dr. a/c 271, Advances
          from Other Agencies, Cr. A/c 110, Accounts Receivable.

               12   As amount apportioned to subsequent quarters become
          available for allotment, obligation, and expenditure, they
          are transferred to Unallotted Funds, Current Quarter,
          Account 456.

     B.   Flow of Funds not Subject to Apportionment
          in the Using Agency's Accounts
          Transfer appropriation accounts and consolidated working fund
     advances to directly finance and account for obligations and
     expenditures are set up, in the negotiated or budgeted amount, in
     Accounts 421 and 422, respectively.  These accounts have been
     established to segregate such allocations and advances from funds
     subject to apportionment.  The required entry, upon receipt of
     the documents which place these amounts in Treasury Disbursing
     Accounts, under the fund title and symbol designated is:

                    Dr. 101 Disbursing Fund
                    Cr. 271 Advance from Other Agencies
     
          The series of entries prescribed for subsequent transactions is
     illustrated in the text following the below chart.  Each numbered
     entry is explained in the text following the chart.

.

          "FLOW OF FUNDS NOT SUBJECT TO APPORTIONMENT
                                
                    Transfer Appropriations
          Consolidated Working Fund Advance Accounts"
                                 
                                
            CHART NOT AVAILABLE IN ELECTRONIC FORMAT
                                .Entry Number

                    Explanation of numbered entries for funds not subject to
          apportionment in the using agencies accounts:

               1    Entry for amounts to be established in transfer
          appropriation accounts in accordance with the parent
          agency's apportionment schedule as expressed in the
          agreement between the agencies.

               2.   When obligations and accrued expenditures are to be charged
          directly to the fund title and symbol established for
          Consolidated Working Fund Advances, a complete segment of
          accounts must be in general conformity with the procedures
          established for regular appropriations.  This entry record
          total amount budgeted and apportioned for the fiscal period
          contemplated in the agreement.  From this point on the
          accounts and entries for issuance of allotments and
          controlling funds are the same as those specified for
          apportioned funds.

                    When obligations and accrued expenditures are charged to a
          direct appropriation and the Consolidated Working Fund
          Advance accounts are used only to reimburse the direct
          appropriation, the only accounts employed are Disbursing
          Funds, CWF (101) and Advances from Other Agencies.  In these
          instances, the amount of reimbursements must be estimated
          and apportioned as a part of the appropriation so utilized
          in accordance with the limitations applicable to the parent
          appropriation.  The direct appropriation is periodically
          reimbursed by internal transfers using either (SF-1081) or a
          journal voucher crediting 101 Disbursing Funds (CWF) and
          debiting 101 Disbursing Funds (appropriation).

                    A concurrent entry is made debiting account 271 (CWF
          symbol), Advances for Other Agencies, and crediting Account
          482, Reimbursements Earned (appropriation symbol).

               3    Records the issuance of allotments for both transfer
          appropriation and Consolidated Working Fund Accounts.

            4 and 5 Records obligations and accrued expenditures in the same
                    manner as for funds subject to apportionment.

               6    Records in Accounts 421 and 422 the summary of
          classification of revenues and the consumption of an advance
          previously recorded in Account 271.  The source of entry is
          the report or summary of expenditures submitted to internal
          management and/or the parent agency as required. Alterna-
          tively, the reports or summaries may be charged to Accounts
          Receivable and the advance is then written of against the
          receivable.

     C.   Closing Entries
          The pattern of closing entries for appropriations or funds is
     generally the reverse of the pattern used to establish them. 
     Closing entries are made in series of distinct steps as follows:

               1.   Withdrawal of unobligated balances of allotments for all
          lapsed funds including transfer appropriation, management,
          and consolidated working funds accounts.
          
               2.   Repayment or withdrawal of unused advances and allocations.
          
               3.   Adjustments for unrealized authorizations and estimated
          reimbursements.
          
               4.   Assembly and determination in Account 451 of the unobligated
          amounts of direct appropriations subject to withdrawal by
          Treasury.

               5.   Withdrawal of unobligated amounts by Treasury.

               6.   The transfer of Disbursing Funds, Receivables and Unpaid
          Obligations contra to Successor "M" Accounts.

               7.   Closing of Expended Appropriations (471), Income (551), and
          Expense Controls (601) into Capital Account (351).

          The following chart and legend illustrates the closing entries
     for unobligated balances subject to withdrawal or repayment in
     the budgetary and relate asset and liability accounts.  These
     entries are outlined in the chart and referenced explanations
     following:

.
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                        "CLOSING ENTRIES
                                
            UNUSED OR UNOBLIGATED BALANCES OF FUNDS"
                                
                                
            CHART NOT AVAILABLE IN ELECTRONIC FORMAT
                                
.                         Entry Number             Description Closing Entries

                    1         Closing of Unobligated Allotment Balances (461) into
               Unallotted Funds - Current Quarter (456) to affect
               withdrawal of unused portions of allotments (all
               funds).

                    2         Closing of unused portion of Consolidated Working Fund
               Budget (422)into Unallotted Funds - Current Quarter
               (456) to affect withdrawal of unobligated balances of
               allotments (applicable only where Consolidated Working
               Fund Advance accounts are used directly to finance and
               account for the work or project performed).

                    3         Closing of unused or unobligated allocations (Account
               421, transfer appropriation accounts) into Unallotted
               Funds Current Quarter (456) in preparation fore
               repayment to the parent agency or direct withdrawal by
               Treasury.

                    4         Closing unobligated balances (direct appropriations,
               authorizations and reimbursements) from Unallotted
               Funds - Current Quarter (456) into Unapportioned Funds
               Account (51).  A preliminary to determination of
               amounts subject to withdrawal by Treasury.

                    5         Closing of any Unallotted balances (Account 455) into
               Unapportioned funds in preparation for establishing
               amount subject to withdrawal by Treasury.

                    6         Return of any unused portions of allocations to other
               agencies (Account 459) (concurrent with entry 12).

                    7         Amounts of unused authorizations for special and trust
               fund activities will be closed out to the
               Unapportioned funds account either at the end of the
               period of availability for obligation or when the
               funds expire.  In trust fund activities, where
               Congress places a limitation on expenditure of funds
               in a given period, this account can be used to reflect
               the amounts available for restoration. When left open
               for this purpose subsequent restorations or returns to
               the trust funds must be processed to this account.

                    8         Closing of actual earned reimbursements (Account 482)
               to Estimated Reimbursements (Account 401) as a
               preliminary to establishing the amounts to be
               withdrawn by Treasury.
.                         Entry Number             Description Closing Entries

                    9         Unrealized balance (Estimated Reimbursements, 401)
               closed to Unapportioned funds account (451_ to
               determine actual amount subject to Withdrawal by
          Treasury. 

                    10        Withdrawal of unobligated balances by Treasury (direct
               appropriations, authorizations and reimbursements).

                    11        Records actual repayment to parent agency (or private
               concern as appropriate) of unused advances (merged
               accounts) and the repayment to the parent agency or
               direct withdrawal by Treasury of unobligated balances
               of transfer appropriation account funds or
               consolidated working fund advances.

                    12        Actual receipt of unused portions of advances returned
               by other agencies or private concerns.  When this
               entry records the return of funds advanced to other
               agencies in transfer appropriation accounts, it must
               be accompanied by entry (6) in the same amount.

                              When this entry records the return of unused
               consolidated working fund advances, it must be
               accompanied by an entry in the same amount Dr. 471,
               Expended Appropriations, Cr. 461, Unobligated
               Allotments.  These amount will usually be included in
               entries (1) and (4).

          3-00-50   OBLIGATIONS CONTROL

     A.   Purpose
          As an integral part of the total accounting system, the
     obligations control process in the budgetary segment of accounts
     serves the following principal functions:

               1.   Provides a direct system of controls which complies with
          statutory requirements for records to control and report on
          obligations and status of funds of each appropriation.

               2.   Serves as the initial and progressive record for control of
          accounting transactions from inception to payment.

               3.   Provides the means for systematically classifying and
          accumulating data in the format required for prompt and
          effective reporting to the regulatory agencies.

               4.   Provides a uniform classification and flow of transactions
          as a basis for assembly of reports and other data at the
          Department level.

          System characteristics and patterns related to size, structure,
     transaction volume and the equipment employed will be developed
     to attain these objectives in accordance with the methods and
     techniques broadly outlined in this section.  The obligations
     control processes will be maintained primarily to control and
     report on the status of funds at the allotment and appropriation
     levels.  The classification, control, and reporting accrued
     expenditures by cost center, project, activity, object of
     expenditures or in other forms of interest to management are
     functions of other specific segments of the accounts and
     accounting system.  In a computerized system, obligations,
     accrued expenditures, and costs can be integrated in a such a way
     that many accounting transactions will be keyed into the system
     at the obligation stage and not require detailed re-entry at
     successive stages.  This approach significantly reduces the
     chance of error as a transaction moves from the obligation to the
     accrued expenditure stage and subsequently or simultaneously is
     allocated to cost centers.  In addition to the above, obligations
     and accrued expenditures, any disbursements not preceded by an
     obligation transaction, will be recorded in summary against fund
     limitations recorded at the appropriate control level in general
     ledger accounts.  Thus, the status of funds by appropriation or
     other control level established in the system, will be readily
     and currently available by reference to the general ledger
     accounts.

     B.   Basic Records
          The basic records required to establish and maintain obligation
     control are the documents evidencing the inception and progress
     of individual obligation transactions.  The technical adequacy
     and accuracy of these documents in terms of evidencing the
     validity of obligations, shall be reviewed to insure compliance
     with statutory requirements.  The criteria established for these
     documents and the for the obligations they represent are set
     forth in Chapter 2-30, "Requirements for Obligations."  The
     responsibility for providing adequate documentation rests
     primarily upon such other officials designated, within an
     organization, to discharge the following responsibilities
     inherent in obligation transactions:

               1.   To determine that items, services, and/or expenditures
          contemplated meet requirements and are within limitations or
          purposes of the appropriation.
               2.   To determine that items, services, and/or expenditures
          ordered are required in the quantities and/or amounts
          requested.
               3.   To determine that amounts to be utilized are available and
          are properly and accurately identified by accounts
          chargeable and object class code.
               4.   To verify that items, service and/or expenditures are
          approved by the allottee or his designee.
               5.   To determine that orders or contracts placed are negotiated
          in good faith at the best possible terms and prices, and
          that conditions are in accord with the requirements of
          pertinent legislation, as applicable.
               6.   To determine that supplies, materials ands services are
          obtained from other government agencies where available in
          the interest of economy and efficiency in procurement.

     C.   Document Flow and Filing
                    
               1.   General.  The flow of obligations documents to the
          accounting operation and the assignments of authority and
          responsibility for the functions and determinations
          enumerated in Section 3-00-50B preceding will be specified
          in each agency's manual.  Obligations will be recorded, at
          the appropriate control level prior to or concurrent with
          the issuance of purchase orders and/or the execution of
          contracts.
               2.   Manual System.  In a manual system, documents in process
          must be maintained in files arranged to accord with the
          control accounts, that is, by appropriation and allotment
          and by transaction status (undelivered orders and unpaid
          delivered orders).  As obligations progress to the status of
          liabilities, these documents, together with those evidencing
          receipt of goods or services form the basis for authorizing
          and recording the accrued expenditures in the accounts
          payable and expense accounts.
               3.   Computer System.  In system utilizing computers, the flow
          and filing of documents within the accounting operation are
          not subject to the same file classifications required with
          manual applications.  Totals and listings of transaction
          details are easily and quickly available in any array
          required to coincide with the control accounts.  Documents,
          however, must be filed systematically so as to be readily
          accessible for association, verification, analysis and
          control, at the input stage, for each individual
          transaction.  Transaction documents will be temporarily
          grouped or batched to facilitate and control the entry
          process.  They will not be filed until each batch input run
          is balanced to the control totals.  A document file
          organized by the vendor name or order control number will
          serve for most applications.

                    Documents in process constitute a continuing major file
          grouping usually referred to as the "open" file. Paid
          documents are further subject to major file grouping by
          fiscal year to facilitate reference and records retention
          and disposal processes.  This file grouping is usually
          referred to as the "closed" file.  Thus, the files
          categories established for transaction documents are:

          (a)  Open File
                              (1) Vendor Name or Oder Control Number

          (b)  Closed File
                              (1) Fiscal Year
                              (2) Vendor Name or Order Control Number.

                              As transactions take place, files maintenance of open file
               documents by vendor name facilitates individual association
               and processing of related documents subsequently received
               with those on file.  Maintenance by vendor name has an
               advantage over order control number because subsequently
               received documents, like invoices, may not bear the order
               control number and association can be difficult. 
               Computerized systems commonly utilize a control number
               identification for individual transactions.  Outputs of such
               a system requiring reference to documents on file must
               provide the vendor's name.

     D.   Documents Flow Outlines
          The document flow outlines which fulfill the essentials are
     illustrated and discussed in this section.  The variations
     illustrated provide for the wide range organizational and
     financial structure characteristics generally observed within the
     department.  Further, one flow pattern may be clearly specified
     for a particular type of transaction and another prescribed for
     the general run of transactions.  The essential point is that
     documentation requirements be fully and promptly met at each of
     the designated points of responsibility established in the
     system:

     1.   Definitions and General Considerations
                    For the purpose of these outlines, the following terms are
          used in the context indicated: (See also 2-10-20)

                         a.   Allottee refers to the persons or points at which
               official responsibility and commensurate authority for
               funds control is vested.  Consequently, the tem
               Allottee refers to variously titled officials with the
               authority for funds control decisions and the
               responsibility for initiation of transactions and/or
               awareness of the extent and progress of transactions
               within their purview.
                         b.   Fund Reservation Document is defined ti include all
               documents used to initiate transactions such as
               requisitions, proposals, estimate, applications, and
               letters of intent.  Estimates may be recorded by
               either a special form developed for this type of
               transaction or by the miscellaneous obligation record
               form.  Although the accounting operation may perform
               certain services in connection with the preparation of
               these estimates, the primary responsibility for
               accuracy and timeliness in preparation and submission
               rests with the allottee or designated program
               official. The purpose of this requirement is to assure
               that the responsible official will apply his more
               timely and intimate knowledge of circumstances
               affecting the construction of such estimates.
                         c.   Allotment Control Operation refers to the obligation
               control segment of the accounting function in the
               fiscal office.
                         d.   Contracting Officer refers to the official designated
               to complete or finalize a transaction, in the form of
               a valid obligation, in response to the request of the
               initiating official and in accordance with program and
               statutory requirements.  The term includes purchasing
               procurement, and contracting officers within the usual
               definition, and variously titled officials whose
               functions are concerned with finalizing other forms of
               obligations.
                         e.   Obligational Document refers to purchase orders,
               contracts in final form, and similar documents which
               bind all parties concerned and fulfill the evidence
               requirements set forth in Chapter 2-30 (Requirements
               for Obligations).  (See also 2-10-20 C4).
                         f.   Vendor or Contractor refers to the person, agency or
               organization with which the obligation is placed.  The
               designation includes other Federal agencies, State
               agencies, private organizations, or any combination
               thereof.

               2.   Flow of Documents When Accounting Office Records
          Reservations
                    For small organizations with low transaction volume and
          simple organizational structure, the flow of fund
          reservation documents through the Accounting Office brings
          together t one point total allotment control from the time
          the allottee first reserves funds for a particular purpose
          through the formal obligational stage.  Properly designed
          with frequent and timely reporting to the allottee, each
          allotment control eliminates the need for duplicate record
          keeping by each allottee.  The following chart illustrates
          this type of flow.
.                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
 "FLOW OF DOCUMENTS WHEN ACCOUNTING RECORDS FUND RESERVATIONS"
                                
            CHART NOT AVAILABLE IN ELECTRONIC FORMAT
.               3.   Allottee Records Fund Reservation in Memoranda Accounts
                    For the larger more complex organizations, processing time
          and complexities are reduced by recording reservations on
          simple memoranda records maintained by the allottee.  The
          allottee reconciles his records with periodic, usually
          monthly, reports on a "valid obligation" basis furnished by
          the accounting operation.  Reservations are noted and
          carried forward to successive reports.  The reconciliation
          also enables the allottee to follow-up on delays in the
          issuance of orders.  The flow of documents is illustrated in
          the following chart.

.                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
                                
  "FLOW OF DOCUMENTS WHEN ACCOUNTING RECORDS ONLY OBLIGATIONS"
                                
            CHART NOT AVAILABLE IN ELECTRONIC FORMAT
                                

.     E.   Illustrative Process Format

               1.   Introduction
                    The fundamental format and related processes of a manual
          Obligation Control Register are illustrated and described in
          some detail to graphically display the principles of control
          required for effective management of obligations and related
          transactions.  The format and processes described may be
          appropriately applied, with minor variations, to a simple
          manual or semi-mechanized system.  The basic control
          principles also apply to larger more complex automated
          systems.  Subsequent portions of this manual section deal
          with variations in format and processes to be considered in
          other more complex applications.
 
               2.   Illustrative Outline

                         a.   The format of an Obligation Control Register including
               illustrative entries which follows illustrates the
               document flow described in Section 3-00-30 D 2. 
               Transactions are recorded at the fund reservation
               stage to facilitate planning and control.  The
               columnar arrangement is utilized as follows:

                                                       (1)  Date                Date of entry
                                                            (2)  Reference                Source Reference of
                                             Documents entered
                                                       (3)  Description         Notational description of
                                        transaction, such as, type,
                                        object, vendor's name, etc.
                                                       (4)  Reservations        Reservation and     
                                        liquidation amounts by
                                        batch totals and single
                                        large transactions like
                                        payroll.
                                                       (5)  Obligated Amounts   Individual amounts of valid
                                        obligations.  Batch totals
                                        are recorded in general
                                        ledger control accounts 461
                                        and 465.  As disbursements
                                        are made, the difference
                                        between recorded
                                        obligations and actual
                                        expenditures are recorded
                                        in batch totals either as
                                        plus or minus.  An
                                        expenditure not previously
                                        recorded as an obligations
                                        is recorded as separate
                                        line item.
.                                                            (6)  Allotment Advice         Quarterly allotments and
                                             amendments - recorded from
                                             authoritative allotment
                                             advances.
                                                       (7)  Available Balance   The effect of amounts
                                        reserved, obligate, and
                                        disbursed upon the amount
                                        allotted is computed and
                                        the available balance is
                                        adjusted accordingly.  The
                                        available balance in this
                                        column plus outstanding
                                        reservations will equal the
                                        balance in the 461
                                        "Unobligated Allotments"
                                        account if the allotment is
                                        at the appropriation level. 
                                        If several allotments are
                                        made from one
                                        appropriation, the sum of
                                        the available balances of
                                        such allotments plus the
                                        outstanding reservations
                                        will equal the balance in
                                        the "461" account.  This
                                        reconciliation should be
                                        made at least monthly.

.                                
                                
                                
                                
                                
                                
                                
                                
                                
                 "OBLIGATIONS CONTROL REGISTER
                                
                                       
                         Appropriation"
                                
                                
            CHART NOT AVAILABLE IN ELECTRONIC FORMAT

.                         a.   Entry (1) in the Obligations Control Register
               illustrates recording of the original allotment
               advice.  The amount allotted is entered in column (6)
               and the resultant unobligated balance is extended to
               column (7).  Subsequent allotment advices are
               similarly entered and are added ro be subtracted from
               the available balance, Increases are recorded as
               indicated in entry (1).  Decreases in allotted funds
               are recorded in parentheses as in (entry (5)).
          
                         b.   Fund reservation documents (requisitions, salary
               estimates, contract proposals, etc) are sorted and
               batched by allotment.  Each group is edited for
               complete documentation and accuracy of account coding. 
               The amounts to be recorded, as reservations, are
               totaled.  The totals arrived at for each allotment are
               compared to available  balances reflected in the
               obligation control registers to determine whether
               sufficient funds are available, Rejections are
               annotated and returned to the originator.  As each
               batch is cleared in this manner, a sequential number
               is assigned.  The individual documents (original and
               carbon) in each cleared batch are stamped with the
               date, batch number, and a funds validation indication. 
               Copies intended for the contracting or procurement
               offices are removed and forwarded without further
               delay.  The batch totals are then entered in the
               obligations control register. Date, batch number
               description, and amount are entered form the retained
               documents as indicated in entry (2). The reduction in
               unobligated balance is computed and the new balance
               entered in column (7).  The retained copies are then
               filed chronologically by allottee.  This process is
               repeated at least daily.
                    
                         c.   Copies of payroll documents, purchase orders,
               contracts, and other valid obligation documents
               related to requisitions previously cleared are sorted
               and grouped by allotment as they are received.  These
               documents are processed against the reservations file
               in groups by allotment.  The documents are assembled
               one for one and a control tape is run on each batch
               obtaining a total of the amounts to be liquidated as
               reservations and a total of the amounts to be
               obligated.  A shuttle adding machine with two counters
               is ideal for this purpose.  The liquidated amount and
               the amount of obligation for each item appear side by
               side on the tape, A journal voucher is prepared
               debiting general account 461, Unobligated Allotments
               and crediting a/c 465, Unliquidated Obligations.  The
               individual obligation documents are then posted to the
               obligations control register as indicated in entries
               (3).  The first entry (3) reflects a liquidation of
               reservations, in total only, of the actual amounts
               previously recorded as reservations.  If there is a
               difference between the reservations liquidated and
               obligations recorded, the available balance in column
               (7) is adjusted accordingly.  Obligation documents not
               preceded by requisitions require special attention as
               there may be an account designation error or a
               requirement for expeditious processing to place an
               emergency order.

                              The reservation for personal services and related
               benefits is usually entered at the beginning of each
               month for the entire month, entry (2).  Reservations
               may also be made for classes of expenditures not
               preceded by obligating documents or where there are
               delays in receipt of valid obligating documents.  The
               working papers prepared for each class or type of such
               expenditures are based upon recorded experience, new
               normal pay projections , and te provisions of leases
               and contracts as applicable.  The estimates may be
               prepared by the allottee or the accounting office if
               it is furnished with necessary and timely information. 
               If the accounting office prepares such estimates, the
               estimates should be reviewed by the allottee prior to
               closing the books for the month.  Balances of
               unliquidated reservations can then be used as
               estimates of obligations incurred to firm up
               obligations at the end of the month.

                              The working papers for estimates will be prepared
               consistently in a form which will facilitate periodic
               entry and liquidation of the reservations.  The
               miscellaneous obligation record can be used for this
               purpose.  If the allottees prepare the estimates,
               special forms should be designed for the purpose.
                    
                         d.   Entry (6) reflects net difference, plus or minus,
               between disbursements and the obligations liquidated
               by the disbursements.
                    
                         e.   Entry (7) is the monthly rule-off of the register for
               balancing-reconciliation to the general ledger control
               accounts.  Adjusting entries are then made to record
               incurred obligations (see entry (8) below.
                    
                         f.   Entry (8) reflects the adjusting entries required to
               record estimates of obligations incurred for which
               obligation documents are not available in the
               accounting office at the close of the month.  Salaries
               and other personnel benefits earned but not payable
               until the next month, recurring travel performed on
               blanket orders, and utilities are in this category. 
               Since such entries are made only to ascertain total
               cumulative obligations incurred, they will be reversed
               after the books are reopened both on the control
               register and in the general ledger.

                    In any accounting system whether it be simple or complex,
          the fund control processes can form the base on which the
          entire system is built.  Information by objects of
          expenditure is needed for the external control agencies and
          fro internal management analyses of expenditures. 
          Information on an accrual basis is needed for program
          planning, budget presentations and internal management.  In
          a relatively simple system, punch card records can b
          utilized to good advantage to provide this information. 
          Individual punch cards prepared fr each obligation
          transaction can, through a proper coding system including a
          status code, by manipulated to (1) control resources on
          order, (2) update general ledger control and cost accounts
          as goods or services are received, and (3) array costs by
          PPB categories and budget activities.  Anything less than a
          punch card subsidiary system is too inflexible to produce
          accurate and timely information.

     F.   Larger Agencies.  More complex fund organization structure-large
     volume of transactions
          Obligations control function and processes for the larger
     agencies are essentially the same as those described earlier in
     this section except that detail is not posted to registers. 
     Usually, the accounting transactions are recorded on punch cards
     or magnetic tape and updating of accounts is accomplished
     mechanically.  The registers simply serve as a control on input
     into the mechanized system.  Once the daily runs are prepared and
     balanced to the control registers, the batch totals are not
     significant.  Hard copy ledgers are dispensed with and mechanical
     tabulations reflect the account balances and available funds at
     each level to which funds are allocated formally or informally.

          Reservations are not usually recorded in the accounts.  File
     copies retained at the originating point (allottee or cost
     center) serve as memoranda records and enable the allottee or
     cost center official to control the funds allocated to him.  The
     accounting office records obligations upon receipt of pre-
     validated purchase orders, contracts, and other valid obligation
     documents.

          The flow of documents within the accounting operation consist of
     sorting, checking accounting codes and other information which
     will be recorded, assigning transaction codes, obtaining batch
     control totals and recording the totals to control registers as a
     control over input into the mechanized system.  After the
     required transaction information is put in machinable form and
     daily runs prepared, the accounting office balances each batch to
     the control register before updating of the master tape files and
     accounts is started.  The exact details of flow and handling are
     not specifically prescribed since they should conform to the
     needs of each application and the equipment used.  In a totally
     integrated system, however, once an obligation is recorded in
     machinable form, much of the information is used again in
     successive stages to reflect accrued expenditures and
     disbursements by a simple updating of the transaction status
     code.  By not having to rekey account identification codes or
     money amounts, except when adjustments are necessary, errors are
     reduced appreciably.

          3-00-60   ACCOUNTS PAYABLE AND OTHER ACCRUAL BASED PROCESSES

An acceptable accounting system n the accrual basis is built around
the "Accounts Payable Process" and the "Accrual Process."  These two
processes are separately organized ad controlled to simplify account
entry and control procedures in manual, mechanical, or computer
systems applications.

     A.   Accounts Payable
          In the "Accounts Payable Process", expenses and asset
     acquisitions are distributed in the general ledger accounts
     (control and subsidiary) at the point in time that the liability
     accrues (goods or services are received).  Receiving reports and
     vender invoices for minor purchases which serve also as receiving
     reports are associated with the original obligation documents. 
     The amount of the liability established for each transaction is
     compared to the amount initially obligated.  The documents are
     batched and control totals for obligations liquidated and related
     accrued expenditures are developed and recorded by use of
     internal journal vouchers.  The batched documents are then
     released to subsidiary accounting posting processes or to
     computer input.  Adjustments are made by virtue of acceptable
     changes in amounts reflected in the receiving reports are
     computed and recorded in the general ledger account 461.  This
     amount should be the difference between the debits to 465,
     Unliquidated Obligations and credits to 471, Expended
     Appropriations.  If all vendor transactions are processed through
     the accounts payable process, the disbursements process will be
     simpler since all payments to vendors will be treated as credits
     to disbursing funds and debits to accounts payable.  The exact
     sequence of these actions and the specific methods, techniques,
     and forms to be employed will vary depending upon the size and
     complexity of an agency's accounting system and the type of
     equipment employed.  However, the control totals that should be
     developed in the batching and input process are:

               1.   200 Series, Accounts Payable Government, Other)
               2.   600 Series, Expense Control
               3.   400 Series, Budgetary Accounts, debits and credits to
          account 461 Unobligated Allotments; account 465,
          Unliquidated Obligations; and 471, Expended Appropriations.

          These controls and account entries are essential for funds
     control, input/output control, and internal reconciliation and
     control requirements.  The subsidiary record posting or computer
     entry processes, whichever employed, may yield exceptions which
     will require adjustments to be made to the control accounts to
     bring them into agreement.  Further, the exceptions so generated
     must also be controlled through the re-entry process. 
     Periodically, upon completion of the posting or computer entry
     and updating profess, the subsidiary account balance are
     reconciled to the control accounts.

     B.   Other Accrual Based Processes
          Accruals of liabilities such as salaries earned but not paid,
     utilities, services under continuing contracts or agreements, and
     others requiring data analysis and computations are functionally
     segregated from the routine vendor voucher flow.  Basic
     documents, working papers, and other material related to the
     preparation and introduction of these entries should be
     concentrated at one accounting group.  Ab effective procedure is
     to place responsibility on this group for maintenance and control
     o a prenumbered series of journal vouchers for posting accruals
     to the accounts.  Review and approval of these vouchers prior to
     posting should be carefully supervised.  Where monthly
     reservations are made against allotments and the reservations are
     based on current knowledge furnished by the allottee, the month
     end balances of these reservations can be used as obligations
     incurred and also as accrued liabilities.  The accrued liability
     transactions are subject to the same control and flow
     requirements established for accounts payable documents and may
     be either merged in that flow or separately batched for control
     and subsidiary account postings.  This accounting group is
     concerned with the preparation, for approval and entry, of
     journal vouchers distributing costs and making accruals in the
     following areas:

               a.   Distribution of salaries and related personnel benefits
          earned but payable in the following accounting period.

               b.   Unpaid rents, utilities, services and other distributable
          costs during the month.

               c.   Inventory issuances

               d.   Depreciation

               e.   Annual leave

               f.   Deferred charges, prepaid expenses

          Expenses which are prepaid regularly, such as quarterly space
     rentals, annual subscriptions (if total is significant), etc.,
     should all uniformly be run through a prepaid expense account,
     even if payment is sometimes made in the last month of the
     extended period.  Processing on an accrual basis is simplified.

          As a general rule, accruals will be made at the end of a period
     and reversed at the opening of the subsequent period o keep the
     accounts payable and disbursements processes as simple as
     possible.

          3-00-70   DISBURSEMENTS

     A.   The disturbing process is concerned primarily with management
     control and reconciliation of disbursing funds.  Account entries
     distribute disbursements made by appropriation.  The entries
     required to be made are:

                              (1)  Dr.  Accounts Payable
                                             Cr.  Disbursing Funds

                                                  (Note:    Accounts Payable is debited for the
                              amount originally recorded.  If the
                              disbursement is more or less than that
                              amount, the appropriate budgetary, and
                              asset or expense accounts should be
                              debited or credited for the
                              difference.)
                    
                         (2)  If disbursements is not preceded by an obligation or
               accrued expenditure, the entries are:

                                   Dr.  Unobligated Allotments
                                   Cr.  Expended Appropriations

                                                            - also -

                                   Dr.  Expense or Appropriate Asset Account
                                   Cr.  Disbursing Funds

     B.   In a manual system accounts payable items are schedule for
     payment as rapidly as possible after the invoices are received. 
     Voucher schedules of payment are certified and sent to the
     Regional Disbursing Office daily. Invoices indicating time
     discounts are given preferential handling.  Records are
     maintained of discounts lost.  Further details concerning these
     procedures are set forth in the HEW Voucher Audit Manual. 
     Control totals are established and entered in the General Ledger
     accounts as indicated in A above.

     C.   In a computer system two general outlines are provided for
     guidance.

               (1)  Payment schedules to Treasury can be produced automatically
          by the computer in a variety of forms;

                    (a) printed output, (b) magnetic tape, or   punched cards
          which are transmitted to the servicing RDO.  Advice and
          consent of the RD must be secured as to timing, format, and
          schedule for submission of certifications.
          
               (2)  Voucher-schedules of payment can be prepared by flexo-writer
          or similar equipment which provides as a by-product, account
          updating information in machinable form.  The totals on the
          voucher-schedules serve as input control for the computer
          processes.

          3-00-80   SYSTEM OUTPUT

In both the general statement on accounting principles and standards,
1-00-30, and in the chapter on reporting objectives and standards, 5-
00-00, emphasis is placed on designing an accounting system which will
produce valid, useful, and timely data to meet internal and external
needs.  The chapter on reporting objectives particularly stresses the
preparation of useful reports, i.e., reports should be prepared only
in the amount of detail required to serve a particular need.  Summary
data which meets the needs of top management, for example, will not
serve the needs of a budget analyst or a supervisor of an operation,
since each needs detailed cost information to assist him in carrying
out his responsibilities.  In addition to reports, a highly mechanized
system will need t produce at frequent and regular intervals controls
of funds data and general ledger account information if hard copy
ledgers are not maintained.  The output of any accounting system
should provide as a minimum:

               1.   Current information for control of appropriations,
          apportionments, and allotments.

               2.   Reports on availability of funds to allottee and budget
          staff.

               3.   Summary cost reports to top management, budget staff, and
          allottee by budget activities and program planning elements. 
          These reports will contain information bridging costs to
          obligations.

               4.   Summary cost reports by PPB categories, programs and program
          elements for compilation of Department-wide reports. 
          (Separate instructions will be issued for each Department-
          wide report specifying content and format of information to
          be submitted.  Ultimate goal will be ro receive this data in
          machinable form to facilitate compilation.)

               5.   Detailed cost reports to managers having "front line"
          responsibility for direct program operations and projects
          and program grants and contracts.

               6.   All information needed for reports to control agencies, such
          as, the SF-133, Budget Status Report; SF-225, Report of
          Obligations by Object Class; et al.  (See part 5 of this
          manual for the various external reports required).

               7.   Expenditure data by country, state, county, city and
          Congressional District.