General Requirements and Terminology 71.1. Purpose and authority. This part provides guidance on the preparation of special and supplementary messages on rescission proposals and deferrals, pursuant to the Impoundment Control Act of 1974, Public Law 93-344, Title X (2 U.S.C. 681-688) and on the establishment of reserves under the Antideficiency Act (31 U.S.C. 1512). It also provides instructions on the preparation of apportionment and reapportionment requests when funds are deferred or proposed for rescission. 71.2. General requirement. Any budgetary resources deferred or proposed for rescission will be reported to the Congress in special and supplementary messages and in cumulative reports, as described in this part. 71.3. Rescissions. A rescission is enacted legislation canceling previously enacted budget authority before the authority would otherwise expire for the purpose of making obligations. Rescissions may be proposed by the President or by a Member of Congress. The Impoundment Control Act of 1974 requires that the President transmit a special message to Congress whenever he proposes an amount for rescission (2 U.S.C. 683). The President is required to report to the Congress whenever he determines that: --all or part of any budget authority will not be required to carry out the full objectives or scope of the programs for which it is provided; --all or part of any budget authority limited to a fiscal year (i.e., annual appropriations or budget authority for the last year of multiple-year accounts) is to be reserved from obligation for the entire fiscal year; or --budget authority should be rescinded for fiscal policy or other reasons. The Congress must enact legislation to rescind funds. The enacted legislation may rescind all, part of, or more than the amount proposed by the President. If both Houses of the Congress have not completed action on a Presidentially-initiated rescission proposal within 45 days of continuous session after the proposal is received, any funds being withheld must be made available for obligation. Funds made available for obligation under this procedure may not be proposed for rescission again. 71.4. Deferrals. A deferral is any executive action or inaction that temporarily withholds, delays, or effectively precludes the obligation or expenditure of budget authority. Amounts may be deferred (a) to provide for contingencies; (b) to achieve savings made possible by or through changes in requirements or greater efficiency of operations; or (c) as specifically provided by law (31 U.S.C. 1512; 2 U.S.C. 684). The President is required to transmit a special message whenever funds provided for a specific purpose or project are deferred. The reporting requirement covers (a) amounts deferred through the apportionment process and (b) those deferred by an agency but not reflected in the apportionment process. The latter, known as agency deferrals, are actions within an agency that result from policy decisions to obligate apportioned funds at a pace slower than intended by Congress. Deferrals may be overturned only by an act of Congress. Specifically, Congress has placed language in appropriations acts to disapprove them. Deferrals may not be made for the entire fiscal year in cases where the funds deferred would expire at the end of the fiscal year (i.e., for annual accounts and the last year of multiple-year accounts). (See instructions on review of deferrals in section 72.7.) Unless overturned by an act of Congress, deferrals of funds that do not expire may remain in effect for the entire year or for part of the year. No deferral action may be taken for any period of time extending beyond the end of the fiscal year covered by a special message. If funds are to be deferred in the next fiscal year, another special message must be transmitted at the beginning of that year. Deferral actions are not appropriate when funds are not obligated due to delays while acting to fulfill all legal, programmatic, and administrative requirements or while searching for a way to obligate funds in a reasonable and authorized manner to carry out program purposes. Actions of this nature do not constitute deferrals. A deferral is not an appropriate method to notify Congress of the reasons why funds are not being obligated when efforts are being made to obligate the funds. 71.5. Reserves established under the Antideficiency Act. Reserves may be established under the Antideficiency Act (31 U.S.C. 1512) and the Impoundment Control Act (2 U.S.C. 684) solely to (a) provide for contingencies; (b) achieve savings made possible by or through changes in requirements or greater efficiency of operations; or (c) as specifically provided by law. These reserves are required to be reported in special messages to the Congress, as described in section 72.2 On the forms prescribed by this Circular, "reserves" will be reported as a deferral when established to provide for contingencies (sec. 71.4) or as a rescission proposal when established to effect savings (sec. 71.3). Exceptions must be approved by OMB. 71.6. Withholdings under continuing resolutions. Continuing resolutions are enacted legislation that provide budget authority and other obligational authority for Federal agencies or activities to continue operations until a regular appropriation is enacted or until a specified date. When a continuing resolution covers only part of the year, any Executive withholding, even if proposed for the duration of the resolution, will be reported as a deferral (Comptroller General decision B-205053, dated December 31, 1981). When a continuing resolution covers the full fiscal year, provides funds for an activity for the full fiscal year, or covers the remainder of the fiscal year, funds withheld may be reported as a rescission proposal or deferral, depending on the nature of the withholding. 71.7. Withholdings under multi-year apportionments. Where funds are available for obligation beyond the current fiscal year, multi-year apportionments may encourage the development of full financial plans that reflect a comprehensive approach to programs. Multi-year apportionments are allowed in such cases and the normal rules governing the reporting of withholdings continue to apply. If funds available for more than one fiscal year are withheld, then they must be reported in a special message as a rescission proposal or deferral, as appropriate. (If the funds are apportioned for use (i.e., are not withheld), no special message is required). A rescission report is required if the funds are not intended to be used before they expire. A deferral report is required if the funds are to be withheld temporarily. Moreover, no deferral action may be taken for any period of time extending beyond the end of the fiscal year covered by a message. If the funds are to be deferred in subsequent fiscal years, deferrals are required to be reported at the beginning of each such fiscal year. Reporting Procedures 72.1. Reports to Congress. The law requires the President to transmit to the Congress: (a) special messages; (b) supplementary messages, whenever any information contained in a special message submitted previously is revised; and (c) cumulative reports listing the status as of the first day of the month of all deferrals and rescission proposals previously included in special messages. The cumulative reports are to be transmitted to Congress by the 10th day of each month. Instructions on reporting procedures are provided below. 72.2. Materials required for special messages. Agencies are required to submit an original and two copies of the following materials, as appropriate, to the Office of Management and Budget: --for each rescission proposal: -a proposed rescission report (see Exhibit 72A); -proposed rescission language (see Exhibit 72B); and -an apportionment request (S.F. 132) that reflects the amount withheld pending rescission on line 9 of the S.F. 132 (see Exhibit 72C). --for each deferral: -a deferral report (see Exhibit 72D); and -an apportionment request (S.F. 132) that reflects the amount deferred on line 10 of the S.F. 132 (see Exhibit 72E). (For information on materials required for supplementary messages, see section 72.3 and Exhibits 72F-H.) The rescission or deferral reports are required to include information specifying: --the amount proposed for rescission or being deferred; --the affected account and specific project or governmental functions involved; --the reasons why the amount should be rescinded or deferred; --the estimated fiscal, economic, and budgetary effects of the rescission proposal or deferral; --the effect of the rescission proposal or deferral on the objects, purposes, and programs for which the amount was provided, to the maximum extent practicable; and --any other relevant facts, circumstances, and considerations. In the case of deferrals, the report must also specify the period of time the budget authority is to be deferred (i.e., for part of the fiscal year or for the full year) and any legal authority invoked to justify the deferral in addition to the Impoundment Control Act (2 U.S.C. 684). Additional examples of deferral reports and apportionment requests are included as exhibits, as follows: ---------------------------------------------------------------------- Type of Exhibit Description Exhibit No. ---------------------------------------------------------------------- Apportionment request.... For deferral overturned by 72I Congress Apportionment request.... For congressionally-initiated 72J deferral ---------------------------------------------------------------------- The information provided by the agencies and incorporated into special messages constitutes formal notification to the Congress of rescission proposals and deferrals. As such, rescission and deferral reports prepared by agencies should set forth a brief description of the program, and a justification that presents in a logical, clear and concise fashion the reasons for the rescission proposal or deferral, a persuasive argument in support of each rescission proposal or deferral, and any other relevant information. The estimated program and outlay effect should also be specifically addressed. For instructions on preparation of rescission and deferral reports, see section 74.1. 72.3. Materials required for supplementary messages. Whenever information on a rescission proposal or deferral previously included in a special message is revised, agencies will submit an original and two copies of: --a supplementary report explaining the change (see Exhibit 72F for a supplementary report for a deferral); --the corresponding revised rescission or deferral report (see Exhibit 72G for a revised deferral report); --in the case of rescissions, revised proposed rescission language; and --in some cases, a reapportionment request (see Exhibit 72H). (NOTE: Revisions to information (e.g., amounts withheld or explanations) contained in rescission or deferral reports will be preceded by an asterisk (*). The report also will be footnoted "* Revised from previous report.") The supplementary report, the revised rescission or deferral report, and revised rescission language will be included in a special message from the President to the Congress. 72.4. Cumulative reports. OMB is responsible for preparing cumulative reports on the status of rescission proposals and deferrals. For these reports, agencies are required to notify OMB when all or portions of agency deferrals (deferrals not withheld through the apportionment process) are released. 72.5. Timing of submissions to OMB. For deferrals and proposed rescissions withheld through the apportionment process: --the required materials will be submitted when the corresponding apportionment or reapportionment requests are made to OMB, or --if OMB suggests changes in or initiates rescission proposals or deferrals, requested materials will be furnished expeditiously on a time schedule determined by OMB. The department or agency head is responsible for identifying deferrals not withheld through the apportionment process (i.e., agency deferrals) and for submitting the required materials immediately after a decision is made to withhold funds. A supplementary report (and revised rescission proposal report and proposed rescission language, or deferral report, as appropriate) will be submitted to OMB whenever an agency submits a reapportionment request changing the amount of the rescission proposal or increasing the amount of the deferral, or making any substantial changes to information contained in a previous report. Reductions in amounts deferred are reported in cumulative reports based on approved apportionments. When all or portions of agency deferrals are released, the agency should contact OMB no later than the first day of the following month to report the release. 72.6. OMB responsibilities. OMB will compile and transmit the special and supplementary messages and the cumulative reports to the Congress and to the Comptroller General. After the special and supplementary messages are transmitted to the Congress and GAO, they are printed as House and Senate documents and in the Federal Register. 72.7. Review of deferrals. Agencies should review all deferrals periodically so that amounts deferred for only part of the year may be released in time to be used prudently before the year ends. Deferrals of funds expiring at the end of the year should be reviewed in June. If it is unclear whether funds are needed or could be prudently used or if a determination is made that such amounts should not be used before the funds expire, a rescission will be proposed before the beginning of the fourth fiscal quarter. Only in exceptional cases will rescissions of annual funds be proposed during the fourth quarter. All proposed rescissions must be approved by OMB. If amounts actually becoming available are less than previously anticipated for indefinite budget authority, transfers, reimbursements, or recoveries, the difference will normally be deducted from amounts apportioned. The difference will not be deducted from amounts deferred or otherwise unapportioned, unless specific provision is made for a different treatment on the approved apportionment form, or unless reapportionment action is taken. Whenever it is determined that a deferred amount will not be required to carry out the purposes of the appropriation or other authority, it will be recommended for rescission as required by law (31 U.S.C. 1512 and 2 U.S.C. 683). 72.8. Proposals to lower limitations on trust or revolving funds. Statutory limitations on the availability of trust or revolving funds are a mechanism to control funds that would otherwise be available for obligation under broad authority. The limitations are generally not the source of authority to incur obligations; rather they place a ceiling on the use of a portion of the obligational authority by limiting the amount that can be obligated or committed for a specific purpose. Generally amounts in trust or revolving funds do not expire. A proposal to lower a statutory limitation on funds that do not expire, by itself, will not result in a rescission. Even when the Congress enacts the lower limitation, the funds will continue to be available for other purposes in the same account. In the rare case when the intent is to restrict the use of such funds permanently, the proposal must be modified usually by proposing to amend the authorizing legislation. If the intent is to lower the limitation and withhold such funds temporarily, the funds may be deferred through the apportionment process. To withhold the funds through the apportionment process requires that the trust or revolving fund be apportioned and the difference between the limitation and the proposed lower amount be placed on line 10, deferred, of the apportionment for the trust or revolving fund. Whenever an amount is placed on line 10 of an apportionment, a deferral report is required. As with other deferrals, if it is intended that the funds be deferred through a subsequent fiscal year(s), a new deferral report is required at the beginning of each new fiscal year in which funds are to be deferred. Whether appropriations language to reduce the limitation is also required can be determined only after careful programmatic and legal analyses of the account, the limitation, and the basic legislation authorizing the program. 72.9. Apportionment action following enactment of rescissions. In the case of Presidentially-proposed rescissions, apportionment forms will be submitted to OMB when amounts are to be withheld through the apportionment process pending rescission. If Congress completes action on such a proposal within the 45-day period prescribed by law and rescinds the exact amount proposed by the President, reapportionment action is not required to reflect the reduction in budget authority. The S.F. 132 will be adjusted to reflect the enacted rescission only if reapportionment action is requested for other reasons. On the S.F. 133, amounts on line 1A or 1C, as appropriate, will be net of enacted rescissions of new budget authority. Enacted rescissions of unobligated balances will be reflected on line 2A. In all other circumstances involving congressional rescission of amounts initially proposed for rescission by the President, reapportionment requests will be submitted to OMB promptly upon completion of congressional action. This includes instances when the Congress rescinds an amount different from that proposed by the President within the prescribed 45 days or rescinds all or any portion of the amount proposed by the President subsequent to the expiration of the prescribed 45 days of continuous session. In all cases, agencies will follow congressional action on proposed rescissions affecting their programs or activities to ensure accurate and timely reapportionment action. Congressionally-initiated rescissions may occur as the result of the reconciliation process established by the Congressional Budget Act (2 U.S.C. 641) or because of changing priorities or economic conditions during the year. Agencies will submit reapportionment requests after final congressional approval in such cases and ensure that obligations do not exceed reduced appropriations. When congressionally-initiated rescissions take place, apportionments will be adjusted in the following ways: --Where initial apportionment action has not been completed before rescission action is taken and sufficient time exists to revise the apportionment request (e.g., within 30 days after the date of enactment of the appropriation bill), the affected agency or OMB will make appropriate changes to the S.F. 132. --When there is insufficient time to adjust the initial S.F. 132, the agency will submit a reapportionment request within 5 calendar days after the date of enactment of the rescission. 72.10. Release of withholdings necessitated by congressional action or inaction. According to law, funds withheld pending rescission must be released following expiration of the prescribed 45 days of continuous session without completion of action on the proposed rescission by both Houses of Congress. Similarly, amounts deferred must be released following enactment of legislation disapproving a reported deferral. In situations where funds must be released because of congressional inaction on proposed rescissions, reapportionment requests reflecting the release of the affected amounts will be submitted to OMB before the end of the prescribed 45 days, as determined by OMB. The 45-day period begins the first day following receipt of a special message by the Congress, if the Congress is in session. If the Congress is not in session at the time of the transmittal of a special message, the first day on which the Congress convenes is the first day of the 45-day period. If the second session of a Congress adjourns sine die before the expiration of the 45 days, the special message is considered retransmitted on the first day of the succeeding Congress and the 45-day period begins the following day. If either House recesses during a session for more than 3 days to a day certain, the number of days in recess is excluded from the counting period. OMB, in consultation with the General Accounting Office, will determine the day for the release of each proposed rescission and will notify agencies when funds should be released. In situations where the Congress enacts legislation to disapprove an Executive deferral, agencies must take prompt action to ensure the release of the affected amounts. In those cases where funds have been deferred through the apportionment process, a reapportionment form, reflecting release of amounts previously deferred, will be submitted to OMB not later than the day following enactment of the legislation. Explanation of Standard Form 132 for Rescissions and Deferrals 73.1. General information. Deferrals.--Available budgetary resources may be withheld from obligation temporarily through the apportionment process with the intent of apportioning them for later use before they expire. Such deferral action may be taken by OMB on its own initiative or at the request of an agency. Funds may also be deferred by the agency (i.e., agency deferrals) but they are not reflected in the apportionment process. Rescissions.--Generally, amounts proposed for rescission will be withheld during the time proposals are being considered by the Congress. This may be accomplished through apportionment action or through agency withholding action. When approved by OMB, funds may be proposed for rescission without being withheld. For amounts withheld through the apportionment process, the following instructions will apply with respect to entries for enacted and proposed rescissions and deferrals on the S.F. 132 and S.F. 133. (For timing of apportionment actions, see sections 44.3, 44.4, 72.9, and 72.10.) 73.2. Use of Standard Form 132. The following instructions will apply with respect to rescissions and deferrals. (See section 45.1 for a description of all entries on the S.F. 132.) BUDGETARY RESOURCES ---------------------------------------------------------------------- Line Entry Explanation ---------------------------------------------------------------------- Line 1. Budget authority: A. Appropriations Amounts shown on this line will be net of realized.............. enacted rescissions of current year appropriations. C. Other new authority. Amounts shown on this line will be net of all enacted rescissions of new budget authority other than appropriations. For lines 1.A and 1.C, show in a footnote the amount of enacted rescissions on each line. ---------------------------------------------------------------------- Line 2. Unobligated balance: A. Brought forward, Enter the unobligated balance brought forward October 1............. from prior years as of October 1 of the fiscal year. In cases where balances are rescinded during the year, amounts shown on this line will be adjusted downward in the amount of the enacted rescission. In these cases, amounts shown will differ from actual balances reported to Treasury for inclusion in the Treasury Annual Report Appendix. Show in a footnote the amount of enacted rescissions on this line. ---------------------------------------------------------------------- APPLICATION OF BUDGETARY RESOURCES ---------------------------------------------------------------------- Line Entry Explanation ---------------------------------------------------------------------- Line 9. Withheld pending Enter the amount of budgetary resources to be rescission............. withheld from availability pending congressional action on a Presidential rescission proposal. Such amounts are subject to the Impoundment Control Act (2 U.S.C. 683). Include amounts proposed for rescission "to achieve savings made possible by or through changes in requirements or greater efficiency of operations," in accordance with 31 U.S.C. 1512. Also include amounts proposed for rescission for other reasons, as well as any unapportioned balances of revolving funds that are being proposed for rescission (i.e., amounts being proposed for rescission that could be effectively, efficiently, and legally obligated for the purposes appropriated.) ---------------------------------------------------------------------- Line 10. Deferred....... Enter the amount of budgetary resources being set aside for possible use at a later date, before the funds expire. Such amounts are subject to the Impoundment Control Act (2 U.S.C. 684). Include amounts deferred to meet future contingencies under authority of 31 U.S.C. 1512 and 2 U.S.C. 684. These entries will also include unapportioned balances of revolving funds that are temporarily withheld restrictively, i.e., withheld when the agency could effectively, efficiently, and legally obligate the funds for the purposes appropriated. Include amounts in annual accounts deferred for apportionment later in the year, as well as amounts in multiple- and no-year accounts deferred for apportionment in subsequent years. ---------------------------------------------------------------------- Line 11. Unapportioned Use only for public enterprise and balance of revolving intragovernmental revolving funds, as well fund................... as trust funds that are subject to apportionment. For these types of funds, enter the amount of budgetary resources that is neither apportioned nor being withheld restrictively as a proposed rescission or deferral, but is credited to the current fiscal year. ---------------------------------------------------------------------- 73.3. Use of Standard Form S.F. 133. The following instructions will apply with respect to rescissions and deferrals. (See section 53.1 for a description of all entries on the S.F. 133.) BUDGETARY RESOURCES ---------------------------------------------------------------------- Line Entry Explanation ---------------------------------------------------------------------- Line 1. Budget authority: A. Appropriations Amounts shown on this line will be net of realized.............. enacted rescissions of appropriations. C. Other new authority. Amounts shown on this line will be net of enacted rescissions of new budget authority other than appropriations. For lines 1.A and 1.C, show in a footnote the amount of enacted rescissions on each line and explain any differences between amounts reported and those on the latest S.F. 132. ---------------------------------------------------------------------- Line 2. Unobligated balance: A. Brought forward, Enter the unobligated balance brought forward October 1............. from prior fiscal years as of October 1 of the fiscal year. Such amounts will be net of enacted rescissions of balances. In these cases, amounts shown on line 2A will differ from amounts reported to Treasury for inclusion in the Treasury Annual Report Appendix. Show in a footnote the amount of enacted rescissions of balances and explain any differences between amounts reported on this line and those on the latest S.F. 132. ---------------------------------------------------------------------- APPLICATION OF BUDGETARY RESOURCES ---------------------------------------------------------------------- Line Entry Explanation ---------------------------------------------------------------------- Line 10. Unobligated balances not available: B. Withheld pending Enter the total amount withheld pending rescission............ rescission and reported on line 9 of the most recently approved S.F. 132. C. Deferred............ Enter the amount deferred as shown on line 10 of the most recently approved S.F. 132. D. Unapportioned Enter the amount shown on line 11 of the balance of revolving most recently approved S.F. 132. fund.................. ---------------------------------------------------------------------- Preparation of Rescission, Deferral, and Supplementary Reports 74.1. Instructions on preparing rescission, deferral, and supplementary reports. Rescission, deferral, and supplementary reports will be prepared in accordance with the following instructions. (Examples of these reports are illustrated in Exhibits 72A, D, F, and G.) ---------------------------------------------------------------------- Entry Explanation ---------------------------------------------------------------------- Rescission Proposal No.. A number (RCY-XX) is used to identify each proposed rescission. Enter "R" to designate a proposed rescission and the last two digits of the fiscal year for which the rescission is proposed. OMB will assign a serial number to distinguish between individual reports. If a revised rescission report is prepared, add an "A" to the OMB-assigned serial number (XX) of the initial rescission proposal to indicate the first revision, a "B" to indicate the second revision, etc. Deferral No............. A number (DCY-XX) is used to identify each deferral. Enter a "D" to designate a deferral and the last two digits of the fiscal year for which the deferral action is taken. OMB will assign a serial number to distinguish between individual deferrals. If a revised deferral report is prepared, add an"A" to the OMB- assigned serial number (XX) of the initial deferral to indicate the first revision, a "B" to indicate the second revision, etc. Agency.................. Enter the name of the department or agency for which the rescission is proposed or the deferral action is taken. Appropriation title and Enter the title of the appropriation or fund symbol................. account from which the funds are being proposed for rescission or are being deferred. Also include the Treasury Account Symbol(s) to indicate the coverage of the report. Enter the account symbols: --for the accounts affected by the rescission proposal or deferral; or --for all accounts that are included under the appropriation title--not just those subject to the proposed rescission or deferral. To indicate the latter case, footnote this line as follows: "Includes all accounts included under this appropriation title". OMB identification code. Enter the 11 digit identification code used in the most recent Budget Appendix. Show transmittal code "0". Grant program........... Check "Yes" only when the items are classified as "Grants-in-aid to State and local governments," and reported as obligations in response to OMB Circular No. A-11; otherwise, check "No". Type of account or fund. Check the box that correctly identifies the period of fund availability for the accounts covered by the rescission or deferral report. Show the date of expiration for each multiple-year account identified in the "Appropriation Title and Symbol" block. Budgetary resources: New budget authority... Enter the amount of new budget authority specified in appropriation or substantive acts that is available in the current year for the accounts covered by the rescission or deferral report. This amount should equal the sum of new budget authority shown on lines 1.A, 1.B, 1.C and 1.D of the latest S.F. 132 in exact dollars. Other budgetary Enter the amount of other budgetary resources............. resources. This amount is equal to the sum of lines 2-6 on the latest S.F. 132. Total budgetary Enter the total amount of budgetary resources............. resources. This should equal the amount on line 7 of the latest S.F. 132. Amount proposed for On rescission reports, enter the amount of rescission............. budgetary resources proposed for rescission. Amount to be deferred... On deferral reports, enter the amount of budgetary resources to be deferred, as follows: Part of year........... --report the amount to be deferred for part of the current year. Use when amounts to be deferred would expire at the end of the year (i.e., for annual accounts and the last year of multiple-year accounts). Entire year............ --report the amount to be deferred for the entire current year. Use only when the funds remain available beyond the end of the fiscal year. Legal authority......... Indicate any legal authority in addition to sections 1012 and 1013 of the Impoundment Control Act (2 U.S.C. 683-684) for a rescission proposal or deferral. Antideficiency Act...... Check this box when a rescission is proposed or a deferral action is taken under authority of the Antideficiency Act (31 U.S.C. 1512). It will be used only when (a) a rescission is proposed to achieve savings made possible by or through changes in requirements or greater efficiency of operations or (b) a deferral is made to withhold funds temporarily to provide for contingencies. Other................... Check this box when the legal authority for the rescission proposal or deferral is a law other than the Antideficiency Act or the Impoundment Control Act and cite the public law containing the legal authority. Type of budget authority In most cases, the type of budget authority will be "Appropriation", e.g., funds made available through annual appropriations acts. If contract authority (provided by an authorization act) is being proposed for termination, check that box. Other types of budget authority (authority to borrow) should be described under "Other." Justification........... Provide a justification that briefly describes: (a) the activities funded by the account; (b) the rationale for the deferral or the proposed rescission and the consequences of not expending the funds; and (c) the authority for withholding the funds in addition to the Impoundment Control Act. Since these reports are transmitted by the President to the Congress, they should be written precisely and concisely so that those who are not familiar with the program will be able to understand the proposal. Estimated program effect When there is no estimated program effect, enter "None" on the appropriate line. This will normally be the case for rescissions proposed and deferrals made pursuant to the Antideficiency Act. When there is a program effect, include a brief, clear statement of the expected effect. Outlay effect........... Show outlay savings for proposed rescissions for 19CY through 19BY+4, as appropriate. Include outlay changes for deferrals for 19CY through 19BY+4, as appropriate. Enter "None" for the outlay effect for deferrals reported pursuant to the Antideficiency Act. Footnotes............... For the account(s) covered by deferral or rescission report, cite any past or current year rescission proposals or deferrals. For a revised rescission or deferral report, indicate all sections containing changes from initial report with an asterisk (*) and provide the footnote "* Revised from previous report." Subsequent revisions to a report will also indicate changes from the previous report with the specified footnotes. When more than one Treasury account is affected by a proposed rescission or deferral, OMB may require detail on budgetary resources and changes thereto should be supplied at the Treasury account level. Supplementary report.... A supplementary report will be prepared whenever the purpose of the rescission proposal or deferral has not changed and (a) the amount of the proposed rescission changes; (b) the amount of the deferral increases; or (c) other substantial changes are made to the previous report. When the purpose of a deferral changes, OMB may determine that a new deferral report is required. In such cases, a supplementary report is not required. No supplementary report is needed when the amount of a deferral decreases. Reductions in deferrals are reported by OMB to the Congress in monthly cumulative reports based on approved apportionments. When all or portions of agency deferrals (i.e., deferrals not withheld through the apportionment process) are released, the agency should contact its OMB representative no later than the first day of the following month so that these deferrals can also be reported by OMB in cumulative reports. The supplementary report should specify: (a) the amount of the initial proposed rescission or deferral reported in a special message or, in cases where revised reports have been made previously, the amount of the latest revision reported in a special message; (b) the amount currently being deferred or proposed for rescission, (c) the amount of the increase in the deferral or change in proposed rescission; and (d) the reason for the change. (See Exhibit 72F for the format of supplementary reports.) For materials required to be submitted with a supplementary report, see section 72.3. ----------------------------------------------------------------------