U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

1 

59–012 2007

110th Congress, 1st Session – – – – – – – – – – – – House Document 110–7 

A REQUEST FOR SUPPLEMENTAL APPROPRIATIONS 

FOR FISCAL YEAR 2007 

MESSAGE 

FROM

THE PRESIDENT OF THE UNITED STATES 

TRANSMITTING

A REQUEST FOR THE DEPARTMENT OF HOMELAND SECURITY 

NEEDED TO LIQUIDATE PRIOR-YEAR OBLIGATIONS FOR CONTRACTS AND GRANTS MADE BY THE TRANSPORTATION SECURITY ADMINISTRATION 

JANUARY 11, 2007.—Message and accompanying papers referred to the 

Committee on Appropriations and ordered to be printed 


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THE WHITE HOUSE, 

Washington, January 10, 2007. 

Hon. NANCY P. PELOSI, 

Speaker of the House of Representatives, 

Washington, DC. 

DEAR MADAM SPEAKER: I ask the Congress to consider the enclosed request for the Department of Homeland Security. The request is needed to liquidate prior-year obligations for contracts and 

grants made by the Transportation Security Administration. The 

request is fully offset by transferring unobligated balances and 

would not increase spending or the deficit. 

The details of this request are set forth in the enclosed letter 

from the Director of the Office of Management and Budget. I concur with his comments and observations. 

Sincerely, 

GEORGE W. BUSH. 


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[Estimate No. 1, 110th Cong., 1st Sess.] 

EXECUTIVE OFFICE OF THE PRESIDENT, 

OFFICE OF MANAGEMENT AND BUDGET, 

Washington, DC, January 10, 2007. 

The PRESIDENT, The White House. 

Submitted for your consideration is a request by the Department 

of Homeland Security (DHS) to seek legislative authority to liquidate $195 million in prior-year obligations for contracts and 

grants made by the Transportation Security Administration (TSA). 

This would resolve an Antideficiency Act (ADA) violation reported 

to you and the Congress on December 3, 2006. This proposal would 

not affect FY 2007 budget authority or the deficit. 

The DHS request seeks authority to transfer $195 million in unobligated balances from TSA’s Aviation Security account ($175 million) and Transportation Security Support account ($20 million) to 

its Expenses account. These transfers will be used to liquidate obligations incurred against funds appropriated in fiscal years 2002 

and 2003. The request is fully offset through transfers of existing 

unobligated balances. The request would ensure that adequate resources are available in the appropriate account to meet anticipated expenditures from existing obligations for contracts and 

grants. 

The ADA violation was uncovered this summer as a result of 

manual reconciliation efforts by TSA. During the migration of TSA 

financial systems from the Department of Transportation to DHS 

in March 2003, erroneous journal voucher entries resulted in an 

underreporting of obligations. To date, DHS has identified no evidence that the violation was intentional. DHS Secretary Chertoff 

has requested the DHS Inspector General conduct a formal investigation of the violation, which is ongoing, to identify the responsible individuals, if appropriate. 

Uncovering this accounting error is part of TSA’s implementation 

of a comprehensive financial management review and corrective action plan begun over the past year. TSA has instituted a series of 

internal control processes to ensure data integrity and the accuracy 

of reported financial information. Instituting these internal control 

processes will reduce the possibility of a deficiency violation recurring in the future. OMB will continue to monitor implementation 

of TSA’s corrective action plans against agreed upon milestones 

and will use the President’s Management Agenda scorecard system 

to monitor progress. 


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I have reviewed this proposal and am satisfied that it is necessary at this time. Therefore, I join the Secretary of DHS in recommending that you transmit the proposal to the Congress. 

Sincerely, 

ROB PORTMAN, Director. 

Enclosure. 


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DEPARTMENT OF HOMELAND SECURITY 

TRANSPORTATION SECURITY ADMINISTRATION

From unobligated balances currently available to the Transportation Security Administration, not to exceed $195,000,000 may be 

transferred to ‘‘Expenses’’, Transportation Security Administration, 

to liquidate obligations incurred against funds appropriated in fiscal years 2002 and 2003, notwithstanding Section 503 of Public 

Law 109–295. 

This request would authorize the transfer of $195 million of existing unobligated balances to liquidate obligations incurred in fiscal years 2002 and 2003. This request would ensure that adequate 

resources are available for existing obligations for contracts and 

grants for the Transportation Security Administration (TSA). The 

request is necessary to complete the implementation of a comprehensive corrective action plan developed by TSA to strengthen 

internal financial management procedures, including revising reporting and adjustment procedures, reconciliation of purchase orders to the general ledger monthly, and ensuring responsibility and 

accountability for each account. 

Æ 


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