Subject: Budget Execution

Responsible Office: Office of the Chief Financial Officer

Chapter 1. Budget Execution Overview

1.1 Overview

1.1.1 The development of NASA’s budget plan and the application of budget authority to achieve the Agency’s objectives are carried out through a four-phase Planning, Programming, Budgeting, and Execution (PPBE) process managed through the Agency Office of the Chief Financial Officer (OCFO). The PPBE is a top-down approach for resource alignment and control to support NASA’s vision and mission with budget execution as the last phase and topic of this NPR. For description and procedural policy for the first three PPBE phases, refer to NPR 9420.1, Budget Formulation.

1.1.2 The execution phase includes developing and maintaining Agency budget authority through operating and spending plans, and funding controls; executing the programmatic plans approved by Congress; and managing financial and accounting activities, to include reporting performance. Refer to Figure 1. Annual PPBE Phases and Steps for the full PPBE process; the execution phase is depicted in the last column. The policy and procedures in this NPR are arranged to correlate with the steps contained in the execution phase.

Figure 1. Annual PPBE Phases and Steps.

1.2 Antideficiency Act (ADA) Relationship

1.2.1 The ADA (a compilation of several major laws) and other provisions of law are the process through which Congress exercises constitutional control of public funds, i.e., “power of the purse.” These laws have cross-cutting impacts throughout the budget execution phase to ensure the budgetary resources available to the Agency are controlled and expended toward achieving the mission and objectives. They primarily set prohibitions or restrictions on an appropriation or other budgetary resource’s life cycle.

1.2.1.1 Prohibitions include making or incurring overobligation or overexpenditure from an appropriation, apportionment, or formal subdivision thereof (an allotment or suballotment under NASA Funds Control Regulations); making or incurring expenditures or obligations in advance of an appropriation unless authorized by law; and accepting voluntary services unless authorized by law.

1.2.1.2 Restrictions include using an appropriation only for its intended purpose, using an appropriation within its intended time (availability), and using the appropriation only for expenses and obligations properly incurred during that time (bona fide needs rule). For example, an obligation may only be incurred for a proposed order of goods or services that are a current need and the providing entity is able to start without an unnecessary delay.

1.2.2 The ADA law also provides that any officer or employee of the United States who violates the prohibitions of the ADA shall be subject to appropriate administrative discipline, through either administrative penalties or criminal penalties.

1.2.3 For additional information on ADA requirements and violations and related funds control regulation requirements, refer to OMB Circular A-11, Preparation, Submission, and Execution of the Budget (OMB Circular A 11); NPD 9050.3, Administrative Control of Appropriations and Funds; and NPR 9050.3, The Antideficiency Act.

1.3 Roles and Responsibilities

1.3.1 The NASA Administrator leads the Agency in articulating the Agency’s mission, setting program and budget priorities, and assessing Agency budget execution and performance.

1.3.2 The Agency Chief Financial Officer (CFO) and the Deputy CFO (DCFO):

a. Lead, manage, and provide policy guidance and oversight for conducting PPBE, budget execution activities, and maintaining effective internal controls over the budget execution processes, to include, overseeing the administrative control of funds through NASA’s funds control regulations. Refer to NPD 9050.3 for overall NASA policy of the administrative control of funds.

b. Oversee and maintain the integrated Agency planning, budgeting, performance, reporting, accounting, and financial management system to ensure financial resources are aligned and executed on the basis of strategic alignment with the Agency’s missions in accordance with NPR 9130.1, Financial Information Systems.

1.3.3 The Agency Performance Improvement Officer (PIO) reviews and approves performance-related materials and reports prior to review and approval by the Chief Operating Officer (COO) and the Administrator. Both the PIO and COO are responsible for review and oversight of the Agency external performance reports (Chief Operating Officers, 31 U.S.C. § 1123 and Performance Improvement Officers and the Performance Improvement Council, 31 U.S.C. § 1124). As designated in NPD 1000.3, The NASA Organization, the Associate Administrator serves as the Agency COO, and the Agency CFO serves as the PIO.

1.3.4 The DCFO for Strategic Insights and Budget (SIB) in coordination with the Associate CFO (ACFO) for Agency Budget monitor and report on budget execution activities to OCFO leadership.

1.3.5 The DCFO for Finance, through the OCFO Financial Management Division (FMD) and the OCFO Policy Division (PD), manages the Agency’s financial funds control and reporting; and ensures compliance to financial policy and regulation and initiates investigations of potential ADA violations, respectively.

1.3.6 The DCFO of Appropriations consults with senior leaders on budget strategies to meet known and anticipated requirements from Congress, and leads appropriations-related communications with Congress, to include transmitting the budget, receiving and providing responses to Congressional questions, and clarifying Agency direction from Congress.

1.3.7 Mission Directorates develop and maintain their mission’s operating and execution plans, distribute funding, and oversee their respective program/project execution.

1.3.8 Control Account Managers (CAMs) are senior Agency leaders who manage major budgetary accounts (programs/projects) and are responsible for development and execution of the budget content for those accounts.

1.3.9 Center CFOs develops the financial management processes at their Center to support Agency policy and manage the Center’s financial operations, including funds distribution and budget execution.

1.3.10 The Office of Inspector General (OIG) conducts accounting and financial audits and investigations and oversees activities executed against the OIG appropriation.

1.3.11 NASA employees involved in budget execution activities conduct these activities in compliance with legal and regulatory requirements, to include ADA requirements, for the purpose of achieving the Agency’s vision and mission.

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