Subject: External Reports-Budget

Responsible Office: Office of the Chief Financial Officer

Chapter 2. External Reports Requirements

2.1 Overview

2.1.1 Congress is the intended audience for many of the reports described below. NASA integrates the requirements, strategies, and messages of the Executive Office (i.e., OMB) with the intent of Congress and purpose underlying each report. The CFO, Administrator, or other senior leaders will meet with OMB to resolve concerns and conflicts that arise during report development.

2.1.2 OMB and the Office of Science and Technology Policy (OSTP) require numerous budget and performance reports. These may assist the President in responding to legal requirements, such as building and delivering the President's Budget Request (31 U.S.C. § 1108). Additional reports from agencies help the Administration identify the need for or support for proposed or ongoing initiatives and help inform decisions and Executive Office policy.

2.1.3 Congress has established numerous performance reporting requirements, codified in 31 U.S.C. Chapter 11 with NASA-specific requirements detailed in Title 51, as noted below. Sections 1123 and 1124 require each agency to establish a COO and PIO to improve the management and performance of the agency.

2.1.4 The CFO or appropriate DCFO (see Section 1.3.1 of this document) shall clear all final reports before they are transmitted. OLIA, directors of OCFO(SID), and/or OCFO(BD), or their designee, may work with OMB or OSTP to obtain guidance, clarify issues, resolve conflicts, review draft materials, or respond to queries.

2.2 Reports Required by Statute

2.2.1 Budget reports required by Congress from NASA are typically specified in appropriations and/or authorization law (and later codified). As determined by the CFO and DCFO(A), NASA also responds to reporting requirements described in conference reports. Such requirements may be initially described in appropriations for the lead agency or may be specified in acts relating to a specific topic (e.g., Federal spending on research and development (R&D)). Though Congress may issue the report requirement, guidance and direction are usually provided by OMB.

2.2.2 The Congressional Budget Justification. 31 U.S.C. § 1108 requires Federal agencies to develop and submit a budget request (often called a Congressional Budget Justification (CJ)) to the President on the first Monday in February, unless otherwise instructed by OMB. In turn, the President submits to Congress a Government-wide budget. OCFO(BD) shall lead development of the CJ, an Agency-wide document that presents the budget request and justification materials for the budget year in formulation. For major programs and projects in development, NASA will also provide detailed information on schedule, milestones, and progress. A list of specific requirements and development guidance can be found in OMB Circular No. A-11, Part 2. For a description of deliverables, detailed roles, and responsibilities, see NPR 9420.1.

2.2.3 Annual Performance Report. Per 31 U.S.C. § 1116, the OCFO shall provide on behalf of the Agency, an annual performance report that compares planned and actual performance for programs and projects. The review is generally delivered with the Congressional Budget Justification. The report includes an OMB-approved rating for each multiyear performance goal, an annual performance indicator, and results of the prior year's strategic review. The report describes major achievements and explains schedule or other setbacks. The report also details progress on Agency priority goals and contributions to cross-Government improvement initiatives. OCFO(SID) will collaborate with goal owners to rate progress and develop/review explanatory materials. OCFO(SID) will also coordinate internal and external reviews. For details, see OMB Circular No. A-11, Part 6.

2.2.4 Annual Performance Plan. 31 U.S.C. § 1115 requires NASA to provide an annual performance plan that describes top-level Agency goals, strategic objectives, multiyear performance goals, and detailed annual performance (one year) indicators. The report is made available on a public Web site, and the Congress and President (i.e., OMB) are informed, no later than the first Monday of February of each year, unless otherwise directed by OMB. OCFO(SID) shall collaborate with CAMs, program managers, and senior leaders in the updating of existing and developing new goals and indicators. OCFO(SID) will also coordinate internal and external reviews.

2.2.5 Major Program Annual Report (MPAR). Per 51 U.S.C. § 30104, NASA provides the Committee on Science and Technology of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate detailed budget analyses for proposed major investments, including a baseline cost and schedule assessment. Annually, NASA reports in the CJ on the budget and milestones (compared to baseline) of these major projects. The code includes requirements for NASA to notify Congress if the Agency determines that schedule or budget adjustments will exceed allowed thresholds. These reports include analyses, trade-offs, and proposed corrective actions. OCFO(SID) shall coordinate with CAMs, program and mission managers, and the DCFO(A) to develop and submit baselines, detailed schedules and milestones, a breakdown of development and operations costs, confidence levels, reserves, and plans for mitigating risk (e.g., schedule, cost, technical). In the event that baseline thresholds are exceeded, OCFO(SID) will coordinate with OLIA and the appropriate program and mission managers to develop the required reports. The MPAR report is generally due concurrent to delivery of the CJ. OCFO(SID) will coordinate internal and OMB reviews.

2.2.6 Agency Priority Goals. Per 31 U.S.C. § 1120, NASA identifies a subset of Agency priority goals covering a two-year period, which are assessed quarterly. NASA provides performance data to OMB, and the results are published on the Performance.gov Web site. OCFO(SID) shall coordinate development and review with affected internal stakeholders and provide all required information to OMB.

2.2.7 Congressional Operating Plan and Updates. Pursuant to appropriations language (whether full appropriations, omnibus, or for a continuing resolution), NASA submits an operating plan to the House and Senate Committees on Appropriations. The plan demonstrates how the Agency will use its appropriated budget authority and records any adjustments. After an appropriation, OCFO(BD) and the DCFO(A) shall work with CAMs to develop an initial operating plan, which may propose and justify specific changes from appropriated funding levels (or changes from recommendations made in the appropriation and/or Conference Report). The DCFO(A) will transmit these materials. For a detailed description of deliverables, detailed roles, and responsibilities, see NPR 9470.

2.2.7.1 OCFO(BD) shall work with the DCFO(A) and CAMs to develop, review, and provide notification of an operating plan update when the Agency needs to realign budget authority to meet emerging needs (i.e., reprogram funds within an account or transfer funds between accounts). The DCFO(A) will transmit updates.

Note: Appropriations language will detail when operating plans are submitted and what limitations are placed on reprogrammings and transfers.

2.2.8 Strategic Plans. Per 5 U.S.C. § 306, agencies must develop a strategic plan (every four years) and publish it on the agency's public Web site. The plan should be in place by the first Monday of February one year after a new presidential term begins. The Agency notifies the President and Congress when the plan is published. The NASA Strategic Plan establishes top-level goals and objectives for the Agency and describes key strategies for achieving results. OCFO(SID) shall lead development, review, and production of the strategic plan and coordinate content and input from organizations Agency wide. OCFO(SID) will coordinate reviews internally and with OMB. For details on roles and responsibilities, content, and review requirements, see NASA Policy Directive (NPD) 1000.0.

2.2.9 Other reports. The OCFO shall lead development of other required reports related to budget, finance, or performance, as required by NASA authorizations, appropriations, and/or conference reports.

2.2.9.1 For reports required by law on topics other than budget or performance, but which include such information, OCFO shall collaborate with appropriate offices and/or OLIA to contribute or review required budget or performance material.

2.3 Reports required by Office of Management and Budget (OMB)

2.3.1 Many NASA budget and performance reports impact the larger Federal budget, assess how budget is managed, and gauge Agency progress toward achieving Administration priorities. Budget and performance reports are generally described in OMB Circular No. A-11. When requirements are unclear, managers should discuss guidance with their OMB examiner.

2.3.2 OMB Submit. The CFO, CAMs, and other leaders shall provide to OMB the Agency's first draft of a proposed budget through the OMB Submit. In this report and series of presentations, the Agency details its budget priorities and proposed plans as determined by the budget formulation process. OCFO(BD) leads this process. See NPR 9420.1.

2.3.3 Inputs to OMB A-11 Schedules for the President's Budget Request. Part 2 of OMB Circular No. A-11 provides detailed guidance and requirements on preparation and submission of budget data necessary to develop the President's Budget Request. OCFO(BD) leads this process and ensures the data is submitted through the MAX A-11 system. See NPD 9420.1 for roles, responsibilities, and requirements for completing these budget schedules. See Appendix B for a description of budget schedules and requirements for completing each.

2.3.4 Passback Deliverables. The OMB passback to NASA typically includes requirements for new reports, briefings, or other deliverables. NASA may appeal, and the settlement will define which deliverables NASA will provide. OCFO(BD) shall manage the schedule, development of responses, and concurrence of passback deliverables, coordinating with CAMs and other Agency stakeholders.

2.3.5 Budget Data Requests (BDRs). Throughout the year OMB issues BDRs to collect a standard set of data from agencies. BDRs may recur from year-to-year, be issued in response to a congressional concern or inquiry, or released on an ad hoc basis to meet emerging needs of the Administration. OCFO(BD) shall monitor BDR and coordinate an Agency response. OCFO(BD) will initiate data calls to CAMs or affected offices, integrate data, resolve discrepancies, and respond to the BDR in the manner specified in the request.

2.3.5.1 Other Budget Crosscut Reports and Analyses. OMB or other specialized agencies lead annual assessments of Federal spending in categories of interest to the Administration and Congress. These agencies use a variety of mechanisms to communicate requirements and collect input, including the MAX data collect system, or notification through the Budget Officers Advisory Council (BOAC) or other communities.

2.4 Office of Science and Technology Policy (OSTP)

2.4.1 OSTP manages numerous Administration objectives, often achieved by multiple Federal departments and agencies. For example, National Security Policy Directive 49 directs commercialization of space, partnerships, and economic development. NASA responds to requests to input for such cross-agency reports and analyses by providing data and/or narratives. Requirements are administered through OMB BDRs or other mechanisms.

2.5 Inputs to Reports for Other Government Agencies or Offices

2.5.1 Other Government agencies and offices may develop cross-Government reports, for which NASA will provide information. Depending on the requirement, NASA may provide data, narratives, reports, or other information. Examples of non-NASA reports to which the Agency provides information are provided below and do not represent all potential reports. OCFO will coordinate responses with mission directorates, Centers, OLIA and other offices, as appropriate.

2.5.2 Government Accountability Office (GAO) report, "NASA: An Assessment of Major Projects." Since 2009, GAO has conducted an annual independent review of NASA major projects (often referred to as the "GAO Quick Look"). NASA inputs to this report on development of major missions and investments may include, but are not limited to, budget, schedule and progress-to-date, results of internal reviews, information on risk, and acquisition practices. OCFO(SID) shall lead development of responses, providing required information in the manner specified by GAO. In developing responses, OCFO(SID) will issue data calls, integrate material when appropriate, and conduct reviews with affected stakeholders. OLIA will facilitate and transmit information.

2.5.3 National Science Foundation (NSF), R&D Reports. Per 42 U.S.C. § 1861 et seq., NSF leads national efforts in assessing and assisting the development of science, technology, and R&D. Each year, NSF collects data from agencies and develops two Government-wide reports on Federal spending on R&D, the "Survey of Federal Funds for R&D" and the "Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions." OCFO(BD) shall lead data collection and report R&D spending in response to two NSF cross-Government data calls for R&D funding, OCFO(BD) will collect and analyze data to develop reports on prior year actuals and current and budget year estimates on R&D spending. OCFO(BD) will also provide to NSF estimates on spending within R&D crosscut categories (e.g., basic, applied, development, plant, and equipment) and spending as classified by numerous parameters, including type of institution performing external work, investment by state, discipline of work supported, etc. OCFO(BD) will transmit information to NSF.

2.5.4 Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) Programs. In its support for small businesses, the Federal Government has established requirements in spending R&D funds (15 U.S.C. § 638). The Small Business Administration (SBA) sets guidelines and collects data from participating agencies, including NASA, on investments made through the SBIR and STTR programs which require agencies to set aside a percentage of certain R&D funding specifically for small businesses. The statute establishes methodologies for determining agency participation and funding levels. As an R&D Agency, NASA participates in these programs. OCFO(BD) shall coordinate an Agency response and provide required data and reports to SBA per their guidance.

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