EXECUTIVE OFFICE OF THE PRESIDENT 

 OFFICE OF MANAGEMENT AND BUDGET

WASHINGTON, D.C. 20503

The Director 

January 5, 2006 

BULLETIN NO. 2006-02 

TO THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES 

SUBJECT: Guidance on Implementing the Government-wide Across-the-Board Reduction in 

the Department of Defense Appropriations Act, FY 2006 (H.R. 2863) 

Purpose. This bulletin provides guidance on implementing the government-wide across-the-board 

reduction required by the Department of Defense Appropriations Act, FY 2006 (H.R. 2863). 

Background and coverage. Section 3801 (a) in Division B, Title III, Chapter 8 of H.R. 2863 

(Attachment A) rescinds an amount equal to 1 percent of: 

(1) the budget authority provided (or obligation limit imposed) for fiscal year 2006 for any 

discretionary account of this Act and in any other fiscal year 2006 appropriation Act; 

(2) the budget authority provided in any advance appropriation for fiscal year 2006 for any 

discretionary account in any prior fiscal year appropriation Act; and 

(3) the contract authority provided in fiscal year 2006 for any program subject to limitation 

contained in any fiscal year 2006 appropriation Act. 

Section 3801(b) provides that reductions must be made proportionately to each program, project, 

and activity within each account. Section 3801 (c) exempts appropriations designated as an 

emergency pursuant to section 402 of the 2006 budget resolution (H. Con. Res. 95) and 

appropriations made to the Department of Veterans Affairs. 

Required agency actions. Please provide the following to your agency’s OMB representative by 

5 pm Friday, January 13th. 

1. A list of reductions by Treasury Appropriation Fund Symbol (TAFS), type of budgetary 

resource, and the reduction amounts using the electronic format provided in Attachment B. This 

list should include amounts in unavailable receipt accounts associated with each special or trust 

fund TAFS. 

2. Any additional supporting information requested by your Resource Management Offices. 

3. FY 2006 reapportionments.
Attachments C and D provide detailed guidance for budget and accounting offices to execute and 

report these reductions. 

Contact. Questions regarding this bulletin should be directed to the agency’s OMB 

representatives. 

Joshua B. Bolten 

Director 

Attachments 
Attachment A 

SECTION 3801: GOVERNMENT-WIDE ACROSS-THE-BOARD REDUCTIONS 

SEC. 3801. (a) ACROSS-THE-BOARD RESCISSIONS.—There is hereby rescinded an amount 

equal to 1 percent of— 

(1) the budget authority provided (or obligation limit imposed) for fiscal year 2006 for any 

discretionary account of this Act and in any other fiscal year 2006 appropriation Act; 

(2) the budget authority provided in any advance appropriation for fiscal year 2006 for any 

discretionary account in any prior fiscal year appropriation Act; and 

(3) the contract authority provided in fiscal year 2006 for any program subject to limitation 

contained in any fiscal year 2006 appropriation Act. 

(b) PROPORTIONATE APPLICATION.—Any rescission made by subsection (a) shall be 

applied proportionately— 

(1) to each discretionary account and each item of budget authority described in such 

subsection; and 

(2) within each such account and item, to each program, project, and activity (with programs, 

projects, and activities as delineated in the appropriation Act or accompanying reports for the 

relevant fiscal year covering such account or item, or for accounts and items not included in 

appropriation Acts, as delineated in the most recently submitted President’s budget). 

(c) EXCEPTIONS.—This section shall not apply— 

(1) to discretionary budget authority that has been designated pursuant to section 402 of 

H. Con. Res. 95 (109th Congress), the concurrent resolution on the budget for fiscal year 2006; 

or 

(2) to discretionary authority appropriated or otherwise made available to the Department of 

Veterans Affairs. 

(d) OMB REPORT.—Within 30 days after the date of the enactment of this section the Director of 

the Office of Management and Budget shall submit to the Committees on Appropriations of the 

House of Representatives and the Senate a report specifying the account and amount of each 

rescission made pursuant to this section. 
H.R. 2863 Across-the-Board Reduction [Division B, Title III, Chapter 8, section 3801(a)] 

[Agency Name] 

Does the reduction 

Amount of require a FMS 6200 

Treasury Treasury Type of Reduction warrant to be processe

Agency FY1 FY2 Account Treasury Account Title Budgetary Resource (in dollars) by Treasury? 

EXAMPLES: 80 2006 0174 Salaries and expenses Appropriation ($432,567) Yes 80 X 0174 Resource management Advance Appropriation ($76,543) Yes 80 2006 / 2007 0511 Program management Appropriation ($56,547) Yes 80 X 8065 Safety program Contract Authority ($756,434) No 80 2006 8065 Safety program Obligation Limitation ($56,547) No 80 X 5689 Development management Appropriation ($567,544) Yes 80 X 5488 Research and development Appropriation ($954,874) No 

Comments:FY1 FY1 will include a fiscal year for the first year of availability in a multi-year TAFS only. FY2 FY2 will include a fiscal year for an annual TAFS, for the last year of availability in a multi-year TAFS, 

and a "X" for no-year TAFS. 

Treasury Account Spreadsheet is formatted as text. Type of Budgetary Resource The following is a list of possible budgetary resources: 

Appropriation = SF 132/133 line 1A Advance Appropriation = SF 132/133 line 1A Contract Authority = SF 132/133 line 1C Obligation Limitation 

If you have identified another budgetary resource, please contact your agency's OMB representative. 

Amount of Reduction This amount is required to be deducted and reported in dollars. 
Attachment C 

INSTRUCTIONS FOR ACCOUNTING AND BUDGET OFFICES 

RELATED TO EXECUTING AND REPORTING 

THE SECTION 3801 REDUCTION OF H.R. 2863 

OMB, working with the Treasury Financial Management Service, has prepared the following 

instructions related to executing and reporting the section 3801 reduction of H.R. 2863. 

What accounting event happened that must be acted on? 

Division B, Title III, Chapter 8, section 3801 of the Department of Defense Appropriations Act, 

FY 2006 (H.R. 2863) contains an across-the-board reduction. The Public Law is 109-148. 

How much flexibility do I have in allocating the reduction? 

The language says: "Any rescission made by subsection (a) shall be applied proportionately-- 

"(1) to each discretionary account and each item of budget authority described in such 

 subsection; and 

"(2) within each such account and item, to each program, project, and activity (with 

programs, projects, and activities as delineated in the appropriation Act or accompanying 

reports for the relevant fiscal year covering such account or item, or for accounts and 

items not included in appropriation Acts, as delineated in the most recently submitted

 President’s budget)." 

What general rules do I apply in calculating the reduction? 

Section 3801 (b) includes instructions on applying the reduction, which interact in various ways 

with the base appropriation language in the FY 2006 appropriation bills. Therefore, you should 

apply the following basic rules: 

1. Scope of the Reduction. The reduction applies to all discretionary spending authority 

provided in the bill or in previous appropriations acts for fiscal year (FY) 2006: 

a. Discretionary authority. The across-the-board reduction only applies to 

discretionary amounts. It does not apply to mandatory amounts. 

b. Spending authority. The reduction applies to spending authority (i.e., budget 

authority, obligation limitations, and contract authority). 

c. Advance appropriations. The reduction applies to any advance appropriation for 

FY 2006 provided in any prior appropriations act, i.e., FY 2005 or prior 

appropriations acts. Advance appropriations for FY 2007 or future years provided 

in any FY 2006 appropriation act are not subject to the reduction. 
2. Offsetting Collections from Federal sources and the Public. In general, the reduction 

applies to net positive spending authority. Therefore the reduction is not applied to 

spending authority from offsetting collections from Federal sources and the public 

provided by the bill. If the agency may spend certain offsetting collections without 

appropriations action, then those offsetting collections are not reduced. 

3. Unobligated balances. The reduction does not apply against unobligated balances brought 

forward on October 1, 2005. 

4. Multiple Reductions. If your account has more than one reduction on the amount newly 

appropriated, apply the reductions in the following sequence: (1) account-specific 

rescission, (2) agency-wide reduction, (3) appropriation act-wide reduction, and 

(4) government-wide reduction. For example, if an account has an account-specific 

rescission of $5M against new budget authority of $400M, subtract the $5M from the 

budget authority of $400M and then apply the next reduction to BA of $395M. 

5. Proportionate application. The Act requires that the reductions be applied equally to each 

account and separately to each item. Then, within each account and each item, apply the 

rescission to each program, project, and activity subject to the rescission. 

6. Program, project, and activity (PPA). PPAs have been interpreted as that level of 

appropriations detail specified: 

a. In the appropriation act or accompanying report, including earmarks and directives; 

or 

b. If the detail in (a) does not exist, in the program and financing schedule of the 

President’s Budget. 

7. Credit programs. The reduction percentage is applied separately to the administrative 

expenses, the direct loan subsidy, and the guaranteed loan subsidy. 

8. Nonexpenditure transfers. The across-the-board reduction is applied to the parent account 

that receives the appropriation and makes the transfer, not to the account that receives the 

transfer. This is a "pre-transfer" basis. 

9. Discretionary expenditure transfers from trust funds. Where appropriate, the across-theboard reduction is applied against the trust fund making the payment, which then transfers 

the lower amount to the performing account(s). 

10. Permanent or temporary reductions. 

a. For appropriations from the General Fund of the Treasury, the amounts rescinded 

by section 3801 (a) are permanent and returned to miscellaneous receipts in the 

Treasury. 

b. However, for special, trust, and revolving funds, the amounts are temporarily not 

available during this fiscal year. For special or trust fund expenditure accounts 
associated with unavailable receipt accounts, the amounts rescinded are returned to 

the corresponding unavailable receipt accounts from which they can be 

subsequently appropriated. For special or trust fund expenditure accounts 

associated with available receipt accounts and revolving funds, the amounts 

rescinded stay in the fund but are not available for obligation in FY 2006. 

11. Rounding rules. The reduction will be taken in dollars. However, for reporting purposes, 

the reductions may be rounded to thousands or millions, as appropriate. For example, the 

reductions will be reported in whole dollars on the Treasury warrants, which are issued in 

dollars. The reductions will be rounded to millions in the Program and Financing 

schedule, as required by OMB Circular No. A-11. 

In general, what must I do? 

When executing the reduction, ensure that you consistently report the reduction on the SF 132, SF 

133, and the actual column of the FY 2006 Budget Program and Financing (P&F) schedule. 

Specifically, what must I do? 

1. OMB Bulletin. Respond to the OMB Bulletin. A copy of the enacted appropriations language 

and instructions for responding are contained in an attachment to the Bulletin. 

2. FMS 6200 Warrant. Contact the Department of the Treasury's Financial Management Service 

(FMS) Budget Reports Division to request a negative FMS 6200 Warrant for affected accounts 

appropriated from the General Fund of the Treasury or associated with unavailable receipt 

accounts. You will need to know the amount and the TAFS (which includes the period of 

availability) to request a warrant. You can fax reduction requests to Treasury at 202-874-9944. 

OMB will provide FMS with a list of accounts and reduction amounts that agencies provided to 

OMB. FMS will cross check warrant requests received from the agencies against this list, send 

any request that does not agree with this list to OMB, and not process the request until OMB 

approves the change. This process is consistent with last year. 

3. SF 132 Apportionment. Prepare an SF 132 Apportionment with reduction amounts on the 

appropriate line number. For general funds or TAFS with contract authority, use line 6B "Enacted 

reductions (-)." For special trust, and revolving funds, use line 5 "Temporarily not available 

pursuant to Public Law 109-148". Refer to the Treasury Financial Manual, USSGL Supplement 

or consult your agency's USSGL representative to identify the specific U.S. Government Standard 

General Ledger account codes that provide the mechanism to either make the funds temporarily or 

permanently not available. See OMB Circular No. A-11, Appendix F for further guidance. 

4. U.S. Government Standard General Ledger (USSGL)/FACTS II. Record the reduction using 

the appropriate USSGL account codes in your accounting system so that the proper amounts will 

be reported via FACTS II. FACTS II will then create the SF 133 and initial set of data for the 

P&F schedule. When reporting the reduction via FACTS II, use 109-148 for the Public Law 

number. For general funds appropriated from the General Fund of the Treasury or contract 

authority, use USSGL account 4392. For special or trust fund expenditure accounts related to 
available receipt accounts and revolving funds, use USSGL account 4382. For special or trust 

fund expenditure accounts related to unavailable receipt accounts, use USSGL account 4387. See 

Treasury Financial Manual, USSGL Supplement or consult your agency's USSGL representative 

for further guidance. 

5. SF 133 Report on Budget Execution and Budgetary Resources. By using FACTS II 

appropriately, the amounts will crosswalk to SF 133 line 5 "Temporarily not available pursuant to 

Public Law 109-148" or line 6B "Enacted reductions (-)". See OMB Circular No. A-11, Appendix 

F for further guidance. 

6. Budget Program and Financing (P&F) schedule. As a result of correctly reporting the amounts 

via FACTS II for the fourth quarter of FY 2006, they will be automatically crosswalked to the 

appropriate P&F line number. The accounting and the budget offices must work together to 

ensure that the actual column of the FY 2008 Budget P&F schedule accurately reflects this 

reduction. See OMB Circular No. A-11, section 82 for further guidance. 
 ATTACHMENT D 

Relationship among Selected SF 132 and SF 133

as they relate to the Across-The-Board Reduction, H.R. 2863

Division B, Title III, Chapter 8, section 3801

SF 132 APPORTIONMENT AND REAPPORTIONMENT SCHEDULE

 Period ended 9/30/2006

AGENCY: Department of Government APPROPRIATION OR FUND TITLE AND SYMBOL

BUREAU: Government Bureau 80-2006-???? Governmental Operations 

AMOUNT ON 

LATEST SF 132 AGENCY REQUEST 

-xxx,xxx 

ACTION BY OMB 

BUDGETARY RESOURCES 

5. Temporarily not available pursuant to P.L. 109-148 (-)......... 

6. Permanently not available:

 B. Enacted Reduction (-).................................................... 

For general funds appropriated from the 

General Fund of the Treasury and contract 

authority, the reduction makes the funds 

permanently not available. For general funds 

originally appropriated from the General Fund 

of the Treasury, they, then, are returned to the 

General Fund of the U.S. Treasury.

-xxx,xxx 

7. Total budgetary resources.................................................

NOTE: Lines 5 and 6B, These amounts are rescinded pursuant to Section 3801 (a) of Public Law 109-148, signed 12/30/05. 

For revolving, special, and trust funds,

 the reduction makes the funds temporarily 

not available. For special or trust fund 

expenditure accounts associated with 

unavailable receipt accounts, the amounts 

rescinded are returned to the corresponding 

unavailable receipt account from which they 

can be subsequently appropriated. For 

special or trust fund expenditure accounts 

associated with available receipt accounts 

and revolving funds, the amounts rescinded 

stay in the fund but they are simply not 

available for obligation. 

SF 133 REPORT ON BUDGET EXECUTION AND BUDGETARY RESOURCES 

Period ended 9/30/2006

AGENCY: Department of Government APPROPRIATION OR FUND TITLE AND SYMBOL 

BUREAU: Government Bureau 80-2006-???? Governmental Operations

FY 2006 FY 2005 

Unexpired Expired 

Account Account 

BUDGETARY RESOURCES 

5. Temporarily not available pursuant to P.L. 109-xxx (-)......... -xxx,xxx 

6. Permanently not available:

 B. Enacted Reduction (-)....................................................... -xxx,xxx

TotalFor special or trust fund expenditure accounts associated with 

available receipt accounts and revolving funds, use USSGL account 

4382. By using USSGL account 4382, the reduction makes the 

funds temporarily not available. 

For special or trust fund expenditure accounts associated with 

unavailable receipt accounts, use USSGL account 4387. By using 

USSGL account 4387, the reduction makes the funds temporarily 

not available. 

For general funds appropriated from the General Fund of the Treasury 

and contract authority, use USSGL account 4392. By using USSGL 

7. Total budgetary resources................................................. account 4392, the reduction makes the funds permanently not available.

NOTE: Lines 5 and 6B, These amounts are rescinded pursuant to Section 3801(a) of Public Law 109-148, 

signed 12/30/05.