We are providing information about the implementation of our new agency budget structure through myth-busting and sharing facts that help us all learn together.

Myth #12: Money not spent by Sept. 30 is no longer available to the agency.

Fact #12: Forest Service annual appropriated funds are either four-year funds or no-year funds in the case of wildland fire. This is called the period of availability for these funds. If funding remains unobligated at the end of the fiscal year and it’s within the period of availability, the funding is still available to spend.

However, current agency business practices are to sweep unobligated funds after the fiscal year has closed to make them available to be used at the Chief’s discretion for high-priority work. Therefore, it is important to continue exercising good funds management the end of the fiscal year and only spend funds on priority items and services that are needed before year-end.

Myth #13:  The new budget structure does not change how we operate under a continuing resolution. 

Fact #13:  The legal requirements of working under a continuing resolution do not change under the new budget structure. Refer to the Strategic Planning, Budget and Accountability website for FY2022 direction. However, the strategy on spending within CR funding limits does change. 

Prior to the implementation of the new budget structure, all funds were in program budget line items, which resulted in more spending authority under the CR in each individual line item. Under the new budget structure, the creation of Salary and Expense budget line items shifted a considerable amount of funds out of program budget line items. While the total spending authority under the CR is the same, the amount of authority in the program budget line items will be much less due to this shifting of authority for salary and expenses. This creates the need for a more precise spending strategy.

Managers need to still move out on their program of work while staying within limited CR authority. Units must coordinate with budget, procurement, property, and grants and agreements staffs to plan ahead, take advantage of no-commit transactions, and explore other options for aligning work to obligate funds as they become available during the fiscal year.

Budget Myth vs. Fact: Employee benefits