**Permanent Reduction**

**Authority to Borrow**

**(Includes FY 2004 accounts and crosswalks and new FY 2005 accounts and crosswalks)**

The June 2003 revisions to OMB Circular A-11 restated the budgetary presentation requirements for reductions.  There are now two basic categories to distinguish reductions.  These categories are temporary and permanent.  Reductions of borrowing authority are considered permanent.   

The following scenario displays a permanent reduction to new budget authority derived from borrowing authority.  In FY 2004, there are three USSGL accounts available for posting permanent reductions.  The FY 2004 account numbers and titles are shown in the scenario in normal text.  Each account crosswalks to OMB SF-133 line “6. Permanently not available: B. Enacted reductions.”  

For FY 2005, USSGL account titles were changed to more closely correspond to the OMB Circular No. A-11 dated June 2003.  Account titles and definitions approved for FY 2005 are shown in bold italics.  As in FY 2004, each account crosswalks to OMB SF-133 line “6. Permanently not available: B. Enacted reductions.” 

These USSGL accounts to be used for reductions of borrowing authority are: 

4392Rescission – New Budget Authority***Permanent Reduction – New Budget Authority***

4393Rescission – Prior-Year ***Permanent Reduction – Prior-Year Balances***

4396Authority Permanently Unavailable for Obligation Pursuant to Public Law ***Delete in FY2005***

Like all permanent reductions, the gross amount of budget authority provided is reflected on line 1 of the SF-133, while the reduction is reflected separately on line 6B of the SF-133.  Permanent reductions are lost as resources of the fund forever.  

The following scenario reflects a discretionary program in which new budget authority provided in the form of definite borrowing authority is reduced. USSGL account 4392, attribute Authority Type “B” (borrowing authority) is highlighted in the following scenario.

1. To record the enactment of public law for new borrowing authority.

2.  To record OMB approved apportionment request on SF 132 for borrowing authority.

2. To record allotment of apportioned borrowing authority.

3. To record a 10% reduction to the borrowing authority recorded in transaction 1. Use Authority Type attribute B to specify the reduction to borrowing authority.  This attribute ensures proper crosswalks to the OMB Schedule P and USSGL 2108.  (Reductions are often expressed as a percentage of the amount provided in an Appropriations Act).

**Pre - Closing Trial Balance**

###### Reduction to Authority to Borrow

###### SF 133:  Report On Budget Execution And Budgetary Resources 

## BUDGETARY RESOURCES 

1.  Budget authority

      A.  Appropriation           0

      B.  Borrowing authority (4141E)                                                                               1,000

2.  Unobligated balance:

      A.  Brought forward, October 1                                            0

6.  Permanently not available:

B.  Enacted reductions (-) (4392E)     (100)

7. Total budgetary resources ****       900

## STATUS OF BUDGETARY RESOURCES

8. Obligations incurred             0

9. Unobligated balance

A. Apportioned

1.  Balance, currently available (4610E)         600

10.  Unobligated balance not available:

D.  Other (4450E)      300

11. Total status of budgetary resources     900

## RELATIONSHIP OF OBLIGATIONS TO OUTLAYS

12.  Obligated balance, net as of October 1 0

13.  Obligated balance transferred, net             0                                       

14.  Obligated balance, net, end of period:0

15. Outlays:

A.  Disbursements (+)0B.  Collections (-)0

**Outlay Formula:**

15C = 8 – (3A+3B+3D+4A) + 12 +/- 13 – (-14A-14B+14C+14D)

0 = 0 – (0) +0 +/- 0 – (0)

0 = 0

**Reduction to Borrowing Authority**

**USSGL-2108 Year End Closing Statement**

**Year 1**

**Record Type 7 – .951 Authority to Borrow from the Treasury                     Main      B.A.T.**

Col. 2 Balance of borrowing authority 

Col. 3  Increases and rescissions  (4141E, 4392E (B))                                                                            900

Col. 4  Borrowings

Col. 5  N/A

Col. 6  Balance (4141E+4392E (B)) also calc. (2+3-4)                                                                           900

Col. 9  Undelivered Orders                                                                                                                     

Col. 10 Accounts Payable and Other Liabilities                                                                

Col. 11 Unobligated Balance (4450E+4610E) also calc. (6-9-10)                                         900                                                                                                 

# Permanent Reductions to Authority to Borrow

# Program And Financing  (Schedule P)

# BUDGETARY RESOURCES AVAILABLE FOR OBLIGATION:

2200  New budget authority (gross) (Sum lns. 4000...6990)                                                  900

2440  Unobligated balance carried forward, end of year  (4450E+4610E)                        900 

# NEW BUDGET AUTHORITY (GROSS), DETAIL:

*Discretionary:*

4700  Authority to borrow   (4141E)                                                                                    1,000

4735  Authority to borrow permanently reduced (-) (4392E (B))              (100)

# 4790  Authority to borrow (total) 900

# NEW BUDGET AUTHORITY AND OUTLAYS:

8900  Budget authority (net)                                                                                                   900

9000  Outlays (net)                                                                                                                      0

5.  Closing of unobligated balances to unapportioned authority.

6.  Closing of fiscal year borrowing authority.

**Post - Closing Trial Balance**

Auth Type attribute not on SF-133

Auth Type attribute B on SF-2108

Auth Type attribute B on Schedule P

� Since there are no proprietary transactions, OMB Bulletin 01-09 Form and Content proprietary financial statements are not illustrated.

June, 2004