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NPR 9420.1A
Effective Date: September 07, 2016
Expiration Date: September 07, 2026
Printable Format (PDF)

Subject: Budget Formulation (Revalidated on September 15, 2021 with Change 1)

Responsible Office: Office of the Chief Financial Officer

| TOC | ChangeLog | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | AppendixA | AppendixB | AppendixC | AppendixD | AppendixE | ALL |

Appendix A. Definitions Related to Budget Formulation

Account or Control Account (often Appropriation Account). A major line of budget authority defined in appropriations, and for which top-level controls are approved by Congress. These are distinct from other non-appropriated funds accounts, including receipt funds, revolving funds, and other matters.

Agency Baseline Commitment (ABC). This agreement, between the Agency and OMB and Congress, documents an integrated set of project requirements; cost, schedule, and technical content; and an agreed-to Joint Cost and Schedule Confidence Level (JCL). The Agency Baseline Commitment is the one official baseline for a NASA program or project, and the baseline against which the Agency's performance is measured during a project's implementation phase. See NPR 7120.5 for additional information.

Agency Budget Decisions. EC decisions on resource allocations. These decisions reflect the end of the programming phase of PPBE, are documented in the PaIG, and are used by CAMs as resource marks for the OMB Submit.

Agency Mission Planning Model (AMPM). This planning tool provides managers the ability to forecast capability, services, technology, and infrastructure needs. The AMPM maintains the official, integrated manifest of Agency's approved and notional content, including flight and ground efforts, and technology milestones.

Amendment. A proposed action to revise the PBR and is transmitted prior to completion of action on the budget request by the Appropriations Committees of both Houses of Congress.

Appeal. An application to a recognized authority for reconsideration of a prior or proposed decision. Often referred to as a reclama in the passback process.

Appropriation. A provision of law authorizing the expenditure of funds for a given purpose. Usually, but not always, an appropriation provides budget authority.

Authorization. Legislation authorizing the expenditure of funds from the Federal budget. An authorization may specify spending amounts, time limitations, or establish specific requirements, but does not actually fund the authorized activities (done through an appropriation).

Budget. A financial plan providing a formal estimate of future revenues and obligations for a definite period of time for approved programs, projects, and activities.

Budget Authority. The authority provided by law to incur financial obligations resulting in outlays. Specific forms of budget authority include appropriations, borrowing authority, contract authority, and spending authority from offsetting collections, leases, interest on trust funds, gifts, and donations.

Budget Formulation. The process of analyzing programmatic and support requirements, prioritizing work, optimizing budget and resource decisions, and developing the budget request.

Budget Resolution. A concurrent resolution passed by both the House and Senate outlining a revenue and spending plan for the budget year and at least four outyears. The plan consists of revenue and spending targets that subsequent appropriation acts and authorization acts are expected to comply.

Budget Year. The approaching fiscal year, typically the year for which a budget is being formulated.

CJS Subcommittee. Senate or House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies (CJS). CJS subcommittees mark up and pass a preliminary NASA budget before sending it to full Senate and House appropriation committees.

Center Allocations. Distribution of EC-approved Center FTE estimates by Mission Directorate to ensure approved FTE are accounted for during budget formulation.

Congressional Budget Justification (CJ). An annual NASA budget document outlining the proposed budget plan at the program and project-level budget. The CJ includes the performance plan for the budget year and the annual performance report for the prior year.

Construction and Environmental Compliance and Restoration (CECR). A NASA budget account for the construction of mission and support facilities, including revitalization projects (repair, rehabilitation, and modification of existing facilities), construction of new facilities, acquisition of related collateral equipment, environmental compliance and restoration activities, design of facilities projects, and advanced planning related to future facility needs. Also includes budgeting of EUL net proceeds.

Continuing Resolution (CR). Legislation in the form of a joint resolution enacted by Congress to provide budget authority for Federal agencies and programs to continue in operation until regular appropriations acts are enacted.

Control Account Managers (CAMs). Senior Agency leaders who manage major budgetary accounts and are responsible for development and execution of the budget content for those accounts. CAMs are also responsible for the planning, coordination, and achievement of work within an assigned account and provide a single authority for scope, technical, and cost issues. CAMs are identified by title in NASA's annual SPG.

Direct Budget Authority. Direct Budget Authority is the authority provided by law to incur financial obligations that results in outlays. The term direct budget authority is used in this document to identify the authority NASA receives as the result of congressionally enacted appropriations and apportionments issued by OMB. As used in this document, direct budget authority does not include reimbursable budget authority.

Fiscal Year. The Government's accounting period. The Federal Government's fiscal year begins on October 1 of one calendar year and ends on September 30 of the following calendar year. It is designated by the calendar year in which it ends.

Formulation. The identification of how the program or project supports the Agency's strategic goals; the assessment of feasibility, technology, and concepts; risk assessment, team building, development of operations concepts, and acquisition strategies; establishment of high-level requirements and success criteria; the preparation of plans, budgets, and schedules essential to the success of a program or project; and the establishment of control systems to ensure performance to those plans and alignment with current Agency strategies. The term is applicable at the project or program level, and also at the account and whole-Agency level.

Full-Time Equivalent (FTE). The basic measure of the levels of employment used in the budget for civil servants. It is defined as the number of total hours worked (or to be worked) divided by the maximum number of compensable hours in a fiscal year. The number of compensable hours in the relevant fiscal years is provided in OMB Circular A-11.

Life-Cycle Cost. The total of the direct, indirect, recurring, nonrecurring, and other related expenses both incurred and estimated to be incurred in the design, development, verification, production, deployment, prime mission operation, maintenance, support, and disposal of a project, including closeout, but not extended operations. The life-cycle cost of a project or system can also be defined as the total cost of ownership over the project or system's planned life cycle from formulation (excluding Pre-Phase A) through implementation (excluding extended operations). The life-cycle cost includes the cost of the launch vehicle. See NPR 7120.5.

MAX A-11. The OMB information system used to collect and process much of the information required from each Agency for preparing the PBR and Mid-Session review. MAX A-11 includes a series of schedules used for cross-government analysis and decision making in formulating the PBR.

Mission Support Offices. Staff offices supporting the Administrator and the overall management of the Agency. Staff offices may have responsibilities in cross-Agency and cross-government coordination, operations, regulation/compliance, and policy. Budgets for NASA mission support offices are formulated under the SSMS account. Mission support offices are listed in NPD 1000.3, The NASA Organization.

Obligation. A binding agreement that results in outlays, immediately or in the future. An obligation reflects a reservation of spending authority used to pay for a contract, labor, or other items.

OMB Submit. The first presentation of a formulated budget to OMB, usually occurring the first full week in September.

Outyears. The fiscal years following the budget year. Budget development typically includes four outyears.

Overguide. A resource (budget or workforce) request exceeding planning limits. Although OMB provides budget targets to use in budget formulation, OMB may consider requests exceeding the initial controls, i.e. an "overguide" request. OMB typically requires additional justification and evidence the overguide activities cannot be accommodated within the agency's budget trade space. OMB considers and rules on overguides during the passback/settlement process.

Passback. OMB's notification to agencies of budget, management, and policy decisions following its analysis and review of agency budget submissions. Passback data is pre-decisional in nature and is not widely distributed or released.

Performance Plan. The annual performance plan includes multiyear performance goals, which typically span three-to-five years, and annual performance indicators. Long-term goals are established in the strategic plan.

Pre-decisional Data. Data developed during the SPG development and the Programming and Budgeting Phases, including the nature and targets provided in OMB guidance, is pre-decisional. This information is generally notional and should only be shared as necessary. NASA maintains appropriate control of decisions affecting programs, personnel, and budget, including the materials underlying these decisions. No budget formulation will be released outside of the Agency and OMB, until NASA transmits it to Congress. Management and release of budget information should comply with OMB Circular A-11 and NPR 1600.1.

President's Budget Request (PBR). The annual proposed government budget, as developed by the Executive Branch and submitted to Congress for consideration. The PBR includes department and agency requirements that have been integrated to form a cohesive Federal budget plan. NASA submits PBR budget data through MAX A-11 and supports the PBR release with a detailed agency budget plan and justification.

Program. A strategic investment by a Mission Directorate or Mission Support Office that has a defined architecture or technical approach, requirements, funding level, and a management structure that initiates and directs one or more projects. Additional information on programs may be found in NPR 7120.5.

Program Analysis and Alignment (PAA) Reports. A preliminary determination of resource requirements and identification of potential funding issues/impacts. CAMs develop PAA reports with input from Centers and CAMs of other affected accounts. PAA reports form the basis of EC deliberations and determinations.

Program and Resources Guidance (PRG). Guidance issued by CAMs to provide account-specific guidance and early budget/resource marks. Centers use the PRG to inform development of PAA report inputs.

Programmatic and Institutional Guidance (PaIG). Documents the budget trace during budget formulation and includes final guidance arising from EC decisions. PaIG guidance informs final resource requests in the OMB Submit.

Program Financial Plan (PFP). A detailed budget request presented in the work breakdown structure. Unless otherwise directed, the PFP and budget tables are presented as comparable from year to year.

Project. A specific investment having defined goals and objectives, timeframe, requirements, and life-cycle cost, and that directly addresses NASA's strategic needs. Projects may be performed in-house, by government, industry, academia partnerships, or through contracts with private industry. Additional information on projects may be found in NPR 7120.5.

Reclama. An alternate term for the Agency appeal to OMB's passback guidance.

Reimbursable Budget Authority. Reimbursable budget authority is a budgetary resource category, approved on OMB Standard Form (SF)-132, giving NASA the authority to accept funding from other entities as reimbursement for the cost of services rendered or goods provided. The budgetary resources become available to incur obligations only after reimbursable agreements are executed and, generally, the receipt of an advance (offsetting collection). Monies collected from the reimbursable customer as payment for the services provided are included in the Agency's total budgetary resources.

Reimbursable Work. Reimbursable work is performed by NASA on behalf of an internal or external organization for which NASA costs are reimbursed by the other organization.

Safety, Security, and Mission Services (SSMS). A NASA budget account providing for basic general and administrative activities at Headquarters and Centers. It includes the Administrator's office, Mission Directorate management, mission support offices, and supporting operations and facilities Agency-wide.

Senate or House Appropriations Subcommittee on Commerce, Justice, Science, and Related Agencies (CJS Subcommittee). These subcommittees mark up and pass a preliminary NASA budget before sending it to full Senate and House appropriation committees.

Settlement. The final decision memorandum from OMB to NASA that describes all final guidance and decisions necessary for preparing the budget proposal and justification.

Strategic Programming Guidance (SPG). The initial budget formulation guidance. SPG includes roles and requirements, preliminary top-level budget and FTE requirements, an analysis of institutional capabilities and requirements, and a first set of unresolved issues and decisions to be addressed during formulation.

Supplemental. An appropriation request submitted after completion of action on an annual appropriations bill by the Appropriations Committees of both House and Senate.

Trade Space. Budget flexibility during formulation, which enables managers to consider different program/project activities and funding profiles.

Workforce Planning. The process whereby NASA plans for its future workforce requirements as part of the PPBE process in order to match skills (supply) with work (demand) so that civil service FTE and recurring contractor capacity and costs can be assigned to NASA's programs/projects and mission support.

Working Capital Fund (WCF). A type of revolving fund that operates as a self-supporting fund with businesslike activities. The WCF is funded from the fees charged for the services provided consistent with the statutory authority.

| TOC | ChangeLog | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | AppendixA | AppendixB | AppendixC | AppendixD | AppendixE | ALL |
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