(including data from the most recent census), the Director 
shall by rule do the following: 
(1) Establish a uniform system for classifying 
such programs and activities within categories (here-
inafter in this Act referred to as ‘‘agency activities’’) 
identified by the Director. 
(2) For each agency activity, identify conduct 
(hereinafter in this Act referred to as an ‘‘activity 
unit’’) that, in the determination of the Director, 
constitutes a completed instance of such agency ac-
tivity. 
(3) For each agency activity, identify, to the ex-
tent practicable, performance measures for that 
agency activity, and, in publishing a report under 
section 3(c), link electronically such performance 
measures to that agency activity. 
SEC. 5. UNIT-COST SUMMARY. 
Each unit-cost summary for a budget entity of a 
State government shall be in such form as the Director 
may prescribe, be one page long, and include the following: 
(1) A statement of funds available, as described 
under section 6. 
(2) For each agency activity that the budget en-
tity began, attempted, continued, or completed, a 
line-item listing as described under section 7. 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS
(3) A reconciliation of funds available with ad-
justed expenditures as described under section 8. 
SEC. 6. STATEMENT OF FUNDS AVAILABLE. 
(a) IN GENERAL.—A statement of funds available 
shall identify— 
(1) in accordance with subsection (b), each 
source of funds available for expenditure or obliga-
tion by the budget entity and the amount of such 
funds; and 
(2) the sum of all amounts identified under 
paragraph (1). 
(b) IDENTIFICATION OF SOURCES.—In identifying 
the sources of funds available for expenditure or obligation 
by the budget entity, the budget entity shall include the 
following: 
(1) All funds made available by State appro-
priations laws. 
(2) Any Federal financial assistance provided 
by a Federal department or agency. 
(3) Any other sources the Director determines 
appropriate. 
SEC. 7. AGENCY ACTIVITY LINE ITEM LISTINGS. 
(a) IN GENERAL.—A line item listing for an agency 
activity shall— 
(1) identify— 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS
(A) the agency activity; 
(B) in accordance with subsection (b), the 
total amount of funds that the budget entity ex-
pended in carrying out the agency activity; 
(C) the number of activity units of the 
agency activity the budget entity began, at-
tempted, continued, or completed; and 
(D) the unit-cost of the agency activity, de-
termined in accordance with subsection (c); and 
(2) describe as many of the following as are rel-
evant to the agency activity: 
(A) What conduct constitutes an activity 
unit. 
(B) Each purpose for which the budget en-
tity engaged in that agency activity. 
(C) Each person that is an intended bene-
ficiary of that agency activity. 
(b) SPECIAL RULES FOR DETERMINATION OF EX-
PENDITURES.— 
(1) ALLOCATION OF EXPENDITURES FOR CER-
TAIN
AGENCY
ACTIVITIES.—If the Director deter-
mines that there is an agency activity for which no 
method of measuring the accomplishment of the 
agency activity exists, an expenditure for that agen-
cy activity must be consistently allocated to what is, 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS
in the determination of the Director, a sufficiently 
similar agency activity for which such a method ex-
ists. 
(2) PAYMENTS TO CONTRACTORS OR SUBORDI-
NATE ENTITIES INCLUDED.—An identification of the 
total amount of funds that a budget entity expended 
shall include any amounts paid to a contractor or 
subordinate entity. 
(c) DETERMINATION OF UNIT-COST.— 
(1) IN GENERAL.—The unit-cost of an agency 
activity shall be determined in accordance with the 
following formula: 
µ 
UC = 
———————————————————. 
ϕ 
(2) DEFINITION OF TERMS IN FORMULA.—For 
purposes of the formula in paragraph (1)— 
(A) UC is the unit-cost of the agency activ-
ity; 
(B) µ is the amount described in sub-
section (a)(1)(B); and 
(C) ϕ is the number described in sub-
section (a)(1)(C). 
SEC. 8. RECONCILIATION OF FUNDS AVAILABLE WITH AD-
JUSTED EXPENDITURES. 
(a) IN GENERAL.—A reconciliation of funds available 
with adjusted expenditures shall— 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS
(1) identify the adjusted expenditures of the 
budget entity; and 
(2) explain any difference between the adjusted 
expenditures and the sum of all funds available for 
expenditure or obligation by the budget entity (de-
termined in accordance with section 6). 
(b) DETERMINATION
OF
ADJUSTED
EXPENDI-
TURES.— 
(1) IN GENERAL.—The adjusted expenditures 
of the budget entity shall be determined in accord-
ance with the following formula: 
AE = EXP + PT + REV. 
(2) DEFINITION OF TERMS IN FORMULA.—For 
purposes of the formula in paragraph (1)— 
(A) AE is the adjusted expenditures; 
(B) EXP is the sum of all expenditures by 
the budget entity for agency activities; 
(C) PT is the sum of all pass-throughs 
identified by the budget entity under subsection 
(c); and 
(D) REV is the sum of all reversions iden-
tified by the budget entity under subsection (c). 
(c) IDENTIFICATION OF PASS-THROUGHS AND RE-
VERSIONS.—A budget entity may identify an amount as 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS
a pass-through or a reversion if the amount satisfies cri-
teria established by the Director. 
SEC. 9. NONCOMPLIANCE. 
If the Director determines that a State government 
has failed, with respect to a Federal fiscal year, to file 
a sufficient and timely State fiscal accounting report 
under this Act, the Director shall so inform the head of 
each Federal department or agency. Each such head shall 
withhold 10 percent of any Federal financial assistance 
provided to the State government for the next Federal fis-
cal year. 
SEC. 10. RULES. 
The Director is authorized to make such rules as may 
be necessary to carry out this Act. 
SEC. 11. DEFINITIONS. 
In this Act: 
(1) The term ‘‘State government’’ means the 
government of each of the several States, the Dis-
trict of Columbia, and any commonwealth, territory, 
or possession of the United States. 
(2) The term ‘‘budget entity’’ means a State 
agency or the State judiciary. 
(3) The term ‘‘agency activity’’ means major 
operational activities carried out by a budget entity. 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS
(4) The term ‘‘Federal financial assistance’’ has 
the meaning given such term in section 7501 of title 
31, United States Code, and also includes any other 
amounts that the Director determines appropriate. 
Æ 
VerDate Mar 15 2010 
23:38 Jun 11, 2010
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H5514.IH
H5514
tjames on DSKG8SOYB1PROD with BILLS