    Budget Issues: Inventory of Accounts With Spending Authority and
    Permanent Appropriations, 1996 (Letter Report, 05/31/96, GAO/AIMD-96-79).

    This report updates GAO's 1987 inventory of accounts with spending
    authority and permanent appropriations, commonly known as "backdoor
    authority." GAO provides information on such accounts and analyzes the
    changes in the number and dollar amounts of accounts with backdoor
    authority. It also provides information on each reported account's
    status under the Balanced Budget and Emergency Deficit Control Act--that
    is, whether it is subject to or exempt from sequestration or subject to
    any special rules or limitations.

    --------------------------- Indexing Terms -----------------------------

     REPORTNUM:  AIMD-96-79
         TITLE:  Budget Issues: Inventory of Accounts With Spending
                 Authority and Permanent Appropriations, 1996
          DATE:  05/31/96
       SUBJECT:  Backdoor authority
                 Appropriation accounts
                 Deficit reduction
                 Trust funds
                 Public enterprise revolving fund accounts
                 Budget functions
                 Offsetting collections
                 Permanent budget authority
                 Budget obligations
    IDENTIFIER:  Highway Trust Fund
                 Foreign Military Sales Trust Fund
                 Airport and Airway Trust Fund
                 Defense Business Operations Fund
                 CCC Fund
                 Postal Service Fund
                 TVA Fund
                 Bonneville Power Administration Fund
                 Federal Buildings Fund
                 DOT Ocean Freight Differential Account
                 Treasury Other Interest on the Public Debt Account
                 Old Age and Survivors Insurance Trust Fund
                 Hospital Insurance Trust Fund
                 Supplementary Medical Insurance Trust Fund
                 Social Security Disability Insurance Trust Fund
                 Civil Service Retirement and Disability Fund
                 RTC Revolving Fund
                 Bank Insurance Fund
                 BIF

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    Cover
    ================================================================ COVER

    Report to the Committee on the Budget, U.S.  Senate

    May 1996

    BUDGET ISSUES - INVENTORY OF
    ACCOUNTS WITH SPENDING AUTHORITY
    AND PERMANENT APPROPRIATIONS, 1996

    GAO/AIMD-96-79

    Spending Authority

    (935147)

    Abbreviations
    =============================================================== ABBREV

      BEA - Budget Enforcement Act
      DOD - Department of Defense
      GAO - General Accounting Office
      GRH - Gramm-Rudman-Hollings
      OMB - Office of Management and Budget
      PAYGO - Pay-As-You-Go

    Letter
    =============================================================== LETTER

    B-260063

    May 31, 1996

    The Honorable Pete V.  Domenici
    Chairman
    The Honorable J.  James Exon
    Ranking Member
    Committee on the Budget
    United States Senate

    In response to your request that we update our 1987 inventory of
    accounts with spending authority and permanent appropriations\1
    (commonly referred to as "backdoor authority"), this report provides
    specific information on such accounts and analyzes the changes in the
    number and dollar amounts of accounts with backdoor authority.  It
    also provides the information you requested on each reported
    account's status under the Balanced Budget and Emergency Deficit
    Control Act of 1985 (Public
    Law 99-177), as amended\2 --that is, whether it is subject to or
    exempt from sequestration or subject to any special rules or
    limitations.  This report also satisfies our legislative mandate to
    study the provisions of law which provide the federal government with
    backdoor authority.

    The Congressional Budget Act of 1974, as amended, defines spending
    authority as authority provided in laws other than appropriation acts
    to obligate the U.  S.  government to make payments.  More
    specifically, it includes contract authority, authority to borrow,
    authority to forgo the collection of proprietary offsetting receipts
    (the use of monetary credits or bartering),\3 and authority to make
    any other payments for which the budget authority is not provided in
    advance by appropriation acts.  The latter includes, but is not
    limited to, authority to make payments from offsetting collections
    from nonfederal sources credited to appropriation or fund accounts.

    A permanent appropriation is an appropriation that is available as
    the result of previously enacted legislation, remains so until
    repealed, and does not require current appropriations action by the
    Congress.

    --------------------
    \1 Budget Issues:  Inventory of Accounts With Spending Authority and
    Permanent Appropriations, 1987 (GAO/AFMD-87-44A, July 17, 1987).

    \2 This act is also referred to as Gramm-Rudman-Hollings (GRH).  It
    was amended by the Budget Enforcement Act of 1990 and the Omnibus
    Budget Reconciliation Act of 1993.

    \3 Monetary credits or bartering are used by agencies having the
    authority to make purchases by giving the seller credits or something
    other than money instead of issuing a check.  The holder of the
    credits may apply them later to reduce an amount owed the government
    in other, sometimes unrelated, transactions.  An agency's acceptance
    of credits or something other than money as payment results in the
    agency's forgoing the collection of offsetting receipts or
    collections in an amount equal to the credit.

       RESULTS IN BRIEF
    ------------------------------------------------------------ Letter :1

    The use of backdoor authority continues to be widespread and both it
    and the number of accounts have increased since 1987.\4 Of the 173
    departments and agencies in the President's fiscal year 1996 budget,
    82 used or had authority to use spending authority or permanent
    appropriations to finance all or part of their programs and
    activities.  This number increased from 65 departments and agencies
    in 1987.  The number of accounts with backdoor authority increased by
    35 percent since 1987.  The amounts of backdoor authority used
    increased nearly 10 percent (adjusted for inflation), from $1,060
    billion in fiscal year 1985 to $1,165 billion in fiscal year 1994.
    This represented a small increase in the share of the federal
    budget--from 58.2 percent to 59.5 percent over the 9-year period.  In
    fiscal year 1994, $983 billion in permanent appropriations, $42
    billion in contract authority, and $16 billion in authority to borrow
    were used to finance programs and activities.  In addition, $124
    billion of offsetting collections from the public was credited to
    appropriation or fund accounts.  The use of backdoor authority was
    concentrated in certain departments and agencies, budget functions,
    and types of fund accounts.

    Five hundred and fifty-eight accounts in the President's fiscal year
    1996 budget used or have been provided with backdoor authority.\5
    This represents an increase of 35 percent from the 413 accounts in
    1987.  This increase is primarily a function of an 85-percent
    increase (from 143 to 265) in accounts having authority to use
    permanent appropriations.  Sixty-one percent of spending through
    permanent appropriations is by nonrevolving trust funds.

    Of the 558 budget accounts with backdoor authority, 113 accounts use
    or have authority to use more than one type of backdoor authority.
    For example, 43 have both contract authority and the authority to use
    offsetting collections from nonfederal sources as a means of
    financing.  Twenty-nine others used permanent appropriations and may
    also use offsetting collections from nonfederal sources as a means of
    financing.

    Use of specific types of backdoor authority was concentrated in some
    departments.  The Social Security Administration used the largest
    amount of permanent appropriations, with 33 percent of the total
    permanent appropriations used in fiscal year 1994.  The Department of
    the Treasury followed closely with 32 percent of total permanent
    appropriations.  The Department of Transportation used 65 percent of
    total contract authority in that year.  The Department of Agriculture
    used 73 percent of total authority to borrow in fiscal year 1994.
    The group of Other Independent Agencies collected 70 percent of total
    offsetting collections from the public in fiscal year 1994.  Of these
    collections from the public, the Postal Service alone accounted for
    56 percent of the total.

    Use of specific types of backdoor authority was also concentrated in
    certain budget functions.  Budget function 650 (Social Security) used
    $326.8 billion (33 percent) of the total permanent appropriations in
    fiscal year 1994.  The Transportation budget function (400) used $27
    billion (65 percent) of the total contract authority in that year.
    The Agriculture budget function (350) used $11.8 billion (73 percent)
    of the total authority to borrow.  The Commerce and Housing Credit
    budget function (370) collected $81.6 billion (66 percent) of the
    total offsetting collections from the public in that year.\6

    In addition, use of backdoor authority is largely concentrated in
    specific types of accounts.  As mentioned, nonrevolving trust fund
    accounts used 61 percent of total permanent appropriations in fiscal
    year 1994.  Nonrevolving trust fund accounts also used 96 percent of
    the total contract authority in that year.  Public enterprise fund
    accounts used 99 percent of the total authority to borrow and also
    collected 83 percent of the total offsetting collections from the
    public in that year.

    While there is potential for future increased spending by the newly
    identified accounts, recent increases in backdoor spending occurred
    in accounts that existed at the time of our last report.  For
    example, although 79 of the 145 additional accounts with backdoor
    authority have permanent appropriations that were enacted since our
    last report, that is not where the increase in spending occurred.
    The overall increase in backdoor authority used is the result of
    permanent appropriations enacted more than 30 years ago.

    --------------------
    \4 In this report, "use" refers to the amount of contract and
    borrowing authority obligated, the amount of budget authority
    utilized under a permanent appropriation, or the amount of offsetting
    collections from nonfederal sources credited to an appropriation or
    fund account.  For monetary credits or bartering, no amounts are
    reported since such authority is not recorded in the budget.

    \5 As noted in our report, Budget Account Structure:  A Descriptive
    Overview (GAO/AIMD-95-179, September 18, 1995), there are
    approximately 1,300 accounts in the President's Budget for fiscal
    year 1996.  This number does not include a certain number of accounts
    that have no current activity.  For this study, we compared accounts
    contained in the President's fiscal year 1987 budget that reports
    fiscal year 1985 actual dollar amounts and accounts in the
    President's fiscal year 1996 budget that reports fiscal year 1994
    actual dollar amounts.

    \6 For a view on the distribution of total spending by agency and
    budget function, see Budget Function Classification:  Agency Spending
    and Personnel Levels for Fiscal Years 1994 and 1995
    (GAO/AIMD-95-115FS, April 11, 1995) and Budget Function
    Classification:  Relating Agency Spending and Personnel Levels to
    Budget Functions (GAO/AIMD/GGD-95-69FS, January 30, 1995).

       BACKGROUND
    ------------------------------------------------------------ Letter :2

    The Balanced Budget and Emergency Deficit Control Act of 1985 amended
    the Congressional Budget Act of 1974 (titles I through IX of Public
    Law 93-344) to require us to study the provisions of law which
    provide the federal government with spending authority and permanent
    appropriations for which the budget authority is not provided in
    advance by an appropriation act.\7 To fulfill this requirement, we
    issued two reports in July 1987, Budget Issues:  Inventory of
    Accounts With Spending Authority and Permanent Appropriations, 1987
    and a companion report, Budget Issues:  The Use of Spending Authority
    and Permanent Appropriations Is Widespread (GAO/AFMD-87-44, July 17,
    1987).\8

    The inventory report provided selected information such as account
    description, the legal citation providing the spending authority or
    permanent appropriation, the amounts of authority used, and reasons
    given by agency officials for having the authority.  The companion
    report summarized and provided general observations on the data in
    the inventory report.

    In 1987, we reported that 65 federal agencies or establishments used
    backdoor authority as a means of financing some of their programs or
    activities.  We identified 413 accounts as having one or more types
    of spending authority or permanent appropriations.  Specifically, 59
    accounts had contract authority, 37 accounts had authority to borrow,
    27 accounts had authority to use monetary credits or bartering, 263
    accounts were authorized to make payments from offsetting collections
    from nonfederal sources, and 143 accounts had permanent
    appropriations, including entitlements not annually appropriated.

    Backdoor authority is authority to obligate federal funds that is not
    controlled through the appropriations process.  Basically, it
    represents mandatory spending that is provided and controlled
    indirectly through other forms of legislation.  The Congressional
    Budget Act of 1974 attempted to limit the creation of new
    nonappropriated contract authority or authority to borrow.  Although
    the act continues to limit the creation of these types of spending
    authority, it has not stopped the expansion.  In 1987, we reported
    that since 1976 (the year the act became effective), at least four
    provisions of law interpreted by agencies as providing
    nonappropriated contract authority and six provisions of law
    interpreted by agencies as providing authority to borrow had been
    enacted.

    In 1990, the Congress further attempted to limit backdoor authority
    by establishing controls over changes in direct spending\9 --spending
    that is generally the same as backdoor authority.  The Budget
    Enforcement Act of 1990 (BEA) amended both the Congressional Budget
    Act of 1974 and the Balanced Budget and Emergency Deficit Control Act
    of 1985.  In addition to establishing dollar limits for total annual
    appropriations, BEA contains a "pay-as-you-go" (PAYGO) provision
    requiring that legislation enacted be either deficit neutral or
    deficit reducing.  In other words, any legislation reducing taxes or
    expanding direct spending programs must be offset by direct spending
    cuts or revenue increases.  If PAYGO requirements are violated,
    nonexempt direct spending programs are sequestered at the end of the
    congressional session.

    --------------------
    \7 The act also requires us to update our study from time to time.

    \8 The 1985 act also required us to recommend the appropriate form of
    financing for activities or programs financed by such provisions of
    law.  To fulfill this requirement, we issued a report in September
    1989, Budget Issues:  Agency Authority to Borrow Should Be Granted
    More Selectively (GAO/AFMD-89-4, September 15, 1989).

    \9 Direct spending, as defined by the Budget Enforcement Act, is
    spending for entitlement authority, the Food Stamp Program, and
    budget authority provided by law other than appropriation acts.
    Direct spending authority is under the control of congressional
    authorizing committees, as contrasted with discretionary spending,
    which is under the control of appropriations committees.

       OBJECTIVES, SCOPE, AND
       METHODOLOGY
    ------------------------------------------------------------ Letter :3

    Our objectives were to (1) update the data reported in our 1987
    inventory, (2) identify accounts provided with backdoor authority
    between 1987 and 1996 and add them to the inventory, (3) identify
    accounts reported in 1987 that no longer had such authority in fiscal
    year 1996 and delete them from the inventory, (4) give the legal
    citations providing backdoor authority, (5) determine whether the
    accounts are subject to or exempt from sequestration or subject to
    any special rules or limitations, and (6) determine the change in
    accounts with backdoor authority in terms of number of accounts and
    dollar amounts used or collected.

    We identified new accounts with backdoor authority by using Office of
    Management and Budget (OMB) data in the GAO Budget Database\10 and by
    requesting agencies to identify new accounts they thought met the
    definition of backdoor authority we provided to them.

    We asked each agency to (1) update the data reported in our 1987
    inventory, (2) identify accounts that no longer have backdoor
    authority, and (3) identify and provide similar data on new accounts
    that we or the agencies identified as having backdoor authority.  For
    certain legislative branch accounts, we researched the needed data.
    Budget data for fiscal years 1985 and 1994 were obtained from the GAO
    Budget Database.  We used data contained in the 1996 President's
    Budget because, at the time of our analysis, the 1997 budget had not
    been released.

    When necessary, we had numerous discussions with many agency
    officials in attempting to obtain accurate and complete data.  If an
    agency did not provide the data as requested, we have indicated this.

    We asked each agency to give us the legal citation of the agency's
    spending authority or permanent appropriations for each account
    identified.  We reviewed each citation to ensure its accuracy.  When
    necessary, we sought clarification from agency officials.  In certain
    instances, the citation could not be verified and, in appendix III,
    we marked the citation with an asterisk.  In some cases, the agency's
    citation did not provide the spending authority or permanent
    appropriations that the agency claimed.  In other cases, the citation
    supported a different type of authority (for example, permanent
    appropriations instead of contract authority).  For those citations
    which could not be verified, we will continue to work with the
    appropriate agency and its office of general counsel to resolve the
    discrepancy.  Generally, the date of enactment is reported as
    provided by the agency unless a different date was readily apparent
    in our legal review.  We used OMB data from the GAO Budget Database
    to report the account's GRH status.

    We then compared and analyzed the new inventory data and the old
    inventory in terms of the number of accounts and dollar amounts.

    Our work was conducted from July 1994 through March 1996 in
    accordance with generally accepted government auditing standards.
    This work entailed contacting over 80 departments and agencies (some
    of which did not ultimately have backdoor authority) and was highly
    dependent on agency response time and verification of their
    responses.  Our scope and methodology are described in greater detail
    in appendix IV.

    --------------------
    \10 The GAO Budget Database is a compilation of automated data we
    obtained from the OMB budget tapes used in preparing the annual
    budgets.  For this study, we compared accounts contained in the
    President's fiscal year 1987 budget (which reports fiscal year 1985
    actual dollar amounts) and accounts in the President's fiscal year
    1996 budget (which reports fiscal year 1994 actual dollar amounts).

       USE OF BACKDOOR AUTHORITY
       CONTINUES TO BE WIDESPREAD
    ------------------------------------------------------------ Letter :4

    Many federal budget accounts use backdoor authority to finance their
    programs and activities.  As shown in table 1, the number of accounts
    having spending authority and permanent appropriations has generally
    increased since 1987, with the largest increase being in accounts
    with permanent appropriations.  While an increase is also shown in
    the number of accounts having authority to use offsetting collections
    from the public, the number of accounts having contract authority,
    authority to borrow, and authority to use monetary credits has not
    changed significantly.

    As table 1 shows, the number of accounts having backdoor authority
    has increased.  However, it is important to note that the number of
    accounts does not necessarily indicate how widespread the existence
    of backdoor authority is.  This is because one provision of law
    providing backdoor authority may be used by any number of accounts
    and, alternatively, any number of provisions of law may have provided
    backdoor authority to one account.  For example, one provision of
    law, 41 U.S.C.  section 11a, provides contract authority to 31
    Department of Defense--Military accounts.  By contrast, one
    account--Operation and Maintenance, Army--in addition to appropriated
    funds, uses offsetting collections authority provided by 22 separate
    provisions of law.

                                    Table 1

                      Accounts Having Backdoor Authority,
                           Fiscal Years 1987 and 1996

                                                   Number of     Number of
                                                 accounts in   accounts in
    Type of authority                                   1987        1996\a
    ------------------------------------------  ------------  ------------
    Contract authority                                    59            57
    Authority to borrow                                   37            38
    Monetary credits/bartering                            27            26
    Permanent appropriations                             143           265
    Offsetting collections                               263           304
    ----------------------------------------------------------------------
    Note:  The number of accounts with each type of backdoor authority in
    this table differs from the numbers reported in Budget Account
    Structure:  A Descriptive Overview (GAO/AIMD-95-179, September 18,
    1995) for several reasons.  First, unlike that report, this table
    includes accounts identified by agencies as having backdoor
    authority, even if the authority was not used.  The table also
    separates accounts with permanent contract authority and authority to
    borrow from accounts with other permanent authority.  Further, it
    includes only accounts with offsetting collections from the public,
    while the 1995 report includes accounts with offsetting collections
    from federal sources as well.

    \a This includes some accounts that had backdoor authority in 1987
    but were not included in our 1987 report because agencies did not
    report them to us.

    The real barometer of the use of backdoor authority is reflected in
    the change in dollar amounts.  The use of backdoor authority to
    finance programs and activities continues to be significant in dollar
    terms and also has increased since 1985.  In real terms (constant
    dollars), overall spending through backdoor authority has increased
    nearly 10 percent.  The use of permanent appropriations as a means of
    financing has increased 20.6 percent, while spending through the use
    of all other types of backdoor authority has decreased.  Although the
    number of accounts using offsetting collections from nonfederal
    sources has increased, in real terms the use of this method of
    financing has decreased 4.7 percent.  Table 2 compares spending
    through the use of backdoor authority in fiscal years 1985 and 1994.

                                    Table 2

                     Backdoor Authority Used, Fiscal Years
                                 1985 and 1994

                             (Dollars in billions)

                                   FY                     FY
                                 1985                   1994
                                actua                  actua       Percent
                                    l  FY 1985 actual      l   change from
                                amoun    amount (1994  amoun    1985 (1994
    Type of authority               t        dollars)      t      dollars)
    --------------------------  -----  --------------  -----  ------------
    Contract authority            $34             $46    $42          -9.4
    Authority to borrow            51              68     16         -76.4
    Monetary credits/              \a              \a     \a            \a
     bartering
    Permanent appropriations      608             815    983          20.6
    Offsetting collections         97             130    124          -4.7
    ----------------------------------------------------------------------
    \a Data not reported in the President's Budget.

    Source:  President's Budget, Fiscal Years 1987 and 1996.

       ACCOUNTS USING LARGEST AMOUNTS
       OF BACKDOOR AUTHORITY
    ------------------------------------------------------------ Letter :5

    The following tables present the accounts using the largest amounts
    of backdoor authority in fiscal year 1994.  As shown in table 3, the
    six accounts using the largest amounts of contract authority used
    $41.6 billion in fiscal year 1994.  This represented 99 percent of
    total contract authority used.

                                    Table 3

                       Accounts Using Largest Amounts of
                      Contract Authority, Fiscal Year 1994

                             (Dollars in billions)

                                                                      Actu
                                                                        al
                                                                      amou
                                  Accoun                                nt
                                       t                              used
    Account name                  number  Agency        Bureau          \a
    ----------------------------  ------  ------------  ------------  ----
    Federal-Aid Highways             69-  Department    Federal       $20.
    (Highway Trust Fund)            8083  of            Highway          9
                                          Transportati  Administrati
                                          on            on

    Foreign Military Sales Trust     11-  Funds         Military      13.0
    Fund                            8242  Appropriated  Sales
                                          to the        Programs
                                          President

    Grants-in-Aid for Airports       69-  Department    Federal        3.0
    (Airport and Airway Trust       8106  of            Aviation
    Fund)                                 Transportati  Administrati
                                          on            on

    Defense Business Operations      97-  Department    Revolving      1.8
    Fund                            4930  of Defense-   and
                                          -Military     Management
                                                        Funds

    Discretionary Grants             69-  Department    Federal        1.8
                                    8191  of            Transit
                                          Transportati  Administrati
                                          on            on

    Trust Fund Share of Expenses     69-  Department    Federal        1.2
                                    8350  of            Transit
                                          Transportati  Administrati
                                          on            on

    ======================================================================
    Total                                                             $41.
                                                                         6
    ----------------------------------------------------------------------
    \a Total does not add due to rounding.

    Source:  President's Budget, Fiscal Year 1996.

    Table 4 shows that the six accounts using the largest amounts of
    authority to borrow used $16 billion in fiscal year 1994.  This was
    99.8 percent of total authority to borrow used.

                                    Table 4

                       Accounts Using Largest Amounts of
                     Authority to Borrow, Fiscal Year 1994

                             (Dollars in billions)

                                                                      Actu
                                                                        al
                                                                      amou
                                  Accoun                                nt
                                       t                              used
    Account name                  number  Agency        Bureau          \a
    ----------------------------  ------  ------------  ------------  ----
    Commodity Credit Corporation     12-  Department    Farm Service  $11.
    Fund                            4336  of            Agency           8
                                          Agriculture

    Postal Service Fund              18-  Other         Postal         2.7
                                    4020  Independent   Service
                                          Agencies

    Tennessee Valley Authority       64-  Other         Tennessee      1.1
    Fund                            4110  Independent   Valley
                                          Agencies      Authority

    Bonneville Power                 89-  Department    Power          0.3
    Administration Fund             4045  of Energy     Marketing
                                                        Administrati
                                                        on

    Federal Buildings Fund           47-  General       Real            \b
                                    4542  Services      Property
                                          Administrati  Activities
                                          on

    Ocean Freight Differential       69-  Department    Maritime        \b
                                    1751  of            Administrati
                                          Transportati  on
                                          on

    ======================================================================
    Total                                                             $16.
                                                                         0
    ----------------------------------------------------------------------
    \a Total does not add due to rounding.

    \b Less than $100 million.

    Source:  President's Budget, Fiscal Year 1996.

    The six accounts using the largest amount of permanent appropriations
    used $827.6 billion in fiscal year 1994.  This represented 84 percent
    of total permanent appropriations in that year.\11 Table 5 gives the
    detail.

                                    Table 5

                       Accounts Using Largest Amounts of
                     Permanent Appropriations, Fiscal Year
                                      1994

                             (Dollars in billions)

                                                                      Actu
                                                                        al
                                                                      budg
                                                                        et
                                  Accoun                              auth
                                       t                              orit
    Account name                  number  Agency        Bureau           y
    ----------------------------  ------  ------------  ------------  ----
    Other Interest on the Public     20-  Department    Interest on   $296
    Debt                            0550  of the        the Public      .3
                                          Treasury      Debt

    Federal Old-Age and              20-  Social        Social        282.
    Survivors Insurance Trust       8006  Security      Security         6
    Fund                                  Administrati  Administrati
                                          on            on

    Federal Hospital Insurance       20-  Department    Health Care   112.
    Trust Fund                      8005  of Health     Financing        4
                                          and Human     Administrati
                                          Services      on

    Federal Supplementary            20-  Department    Health Care   61.2
    Medical Insurance Trust Fund    8004  of Health     Financing
                                          and Human     Administrati
                                          Services      on

    Federal Disability Insurance     20-  Social        Social        38.6
    Trust Fund                      8007  Security      Security
                                          Administrati  Administrati
                                          on            on

    Civil Service Retirement and     24-  Office of     Office of     36.5
    Disability Fund                 8135  Personnel     Personnel
                                          Management    Management

    ======================================================================
    Total                                                             $827
                                                                        .6
    ----------------------------------------------------------------------
    Source:  President's Budget, Fiscal Year 1996.

    The six accounts using the largest amount of offsetting collections
    from nonfederal sources collected $94.5 billion in fiscal year 1994.
    This represented 76 percent of total offsetting collections from
    nonfederal sources collected in that year.  Table 6 gives the detail.

                                    Table 6

                       Accounts Using Largest Amounts of
                    Offsetting Collections, Fiscal Year 1994

                             (Dollars in billions)

                                                                      Actu
                                                                        al
                                                                      amou
                                                                        nt
                                  Accoun                              coll
                                       t                              ecte
    Account name                  number  Agency        Bureau           d
    ----------------------------  ------  ------------  ------------  ----
    Postal Service Fund              18-  Other         Postal        $48.
                                    4020  Independent   Service          4
                                          Agencies

    RTC Revolving Fund               22-  Other         Resolution    14.1
                                    4055  Independent   Trust
                                          Agencies      Corporation

    Bank Insurance Fund              51-  Other         Federal       12.7
                                    4064  Independent   Deposit
                                          Agencies      Insurance
                                                        Corporation

    Commodity Credit Corporation     12-  Department    Farm Service   7.3
    Fund                            4336  of            Agency
                                          Agriculture

    Defense Business Operations      97-  Department    Revolving      6.2
    Fund                            4930  of Defense-   and
                                          -Military     Management
                                                        Funds

    Tennessee Valley Authority       64-  Other         Tennessee      5.8
    Fund                            4110  Independent   Valley
                                          Agencies      Authority

    ======================================================================
    Total                                                             $94.
                                                                         5
    ----------------------------------------------------------------------
    Source:  President's Budget, Fiscal Year 1996.

    As the statistics in the six preceding tables show, the use of
    backdoor authority to finance federal programs and activities
    continues to be widespread.  Although spending in three categories of
    backdoor authority has decreased when adjusted for inflation, the
    overall use of backdoor authority has grown in real terms over the
    past 9 years.  Many new federal departments and agencies have been
    provided with spending authority and permanent appropriations in
    advance of appropriation acts.  The appendixes to this report present
    detailed tables on the numbers of accounts and amounts of backdoor
    authority used.

    Appendix I provides the amounts of spending authority and permanent
    appropriations used in fiscal year 1994 by agency, budget function,
    and type of fund account.  Tables I.1 through I.3 show that specific
    types of backdoor authority are concentrated in certain agencies,
    budget functions, and fund accounts.

    Appendix II shows the spending authority and permanent appropriations
    that are available for use for each account in the inventory.  It
    provides a comprehensive view of the types of backdoor authority
    available to each account.  This appendix is arranged by agency and
    provides each account's 11-digit identification code.

    Appendix III provides detailed information on accounts using or
    having authority to use spending authority or permanent
    appropriations.  The figures in this appendix (III.1 through III.5)
    contain legal references, amounts of backdoor authority used in
    fiscal years 1985 and 1994, and other information for each account in
    the inventory.

    Appendix IV provides a detailed description of our scope and
    methodology.  It describes the process we used to identify accounts,
    the funding practices that are not included in the inventory, and how
    we obtained our data.  A glossary of terms is included at the end of
    this report.

    We are sending copies of this report to all Members of the Congress
    and copies will be made available to others upon request.

    If you or your staffs have any questions, please contact me at (202)
    512-9573.  Major contributors to this report are listed in appendix
    V.

    Paul L.  Posner
    Director, Budget Issues

    --------------------
    \11 Excluding Other Interest on the Public Debt, the remaining 5
    accounts are part of the 11 programs comprising 90 percent of total
    mandatory spending in fiscal year 1993.  For further discussion, see
    Budget Policy:  Issues in Capping Mandatory Spending
    (GAO/AIMD-94-155, July 18, 1994).

    SPENDING AUTHORITY AND PERMANENT
    APPROPRIATIONS BY AGENCY, BUDGET
    FUNCTION, AND FUND TYPE
    =========================================================== Appendix I

                                        Table I.1

                             Spending Authority and Permanent
                          Appropriations Used by Agency, Fiscal
                                        Year 1994

                                  (Dollars in thousands)

                                                                          Offsetting
                                                  Monetary                collection
                                                  credits/     Permanent          s,
                            Contract   Authority  barterin  appropriatio  nonfederal
    Agency                 authority   to borrow       g\a            ns     sources
    ------------------  ------------  ----------  --------  ------------  ----------
    Legislative Branch           $ 0    $ 15,673               $ 328,172    $ 96,070
    The Judiciary                  0           0                 219,102      29,247
    Executive Office               0           0                       0       1,029
     of the President
    Funds Appropriated    12,969,580           0                   5,259      49,429
     to the President
    Department of                  0  11,814,311         X     6,880,940   8,184,188
     Agriculture
    Department of                  0           0                  -1,510      58,690
     Commerce
    Department of                  0           0         X    39,077,182      12,899
     Defense--Civil
    Department of          1,814,470           0         X       163,985   9,293,164
     Defense--
     Military
    Department of                  0           0                  62,940      62,967
     Education
    Department of                  0     340,383         X        24,067   3,781,337
     Energy
    Department of                  0           0             175,390,994     260,577
     Health and Human
     Services
    Department of                  0      25,000                  11,115     163,639
     Housing and
     Urban Development
    Department of the         30,000           0         X     1,958,794     302,571
     Interior
    Department of                  0           0               1,191,439     232,830
     Justice
    Department of                  0           0              30,520,264   1,391,131
     Labor
    Department of                  0           0         X       594,263      54,170
     State
    Department of         27,030,787      50,317                  76,976      58,829
     Transportation
    Department of the              0        -376             314,715,704   2,668,694
     Treasury
    Department of                  0           0               2,223,622   1,340,681
     Veterans Affairs
    Environmental                  0           0                       0      41,681
     Protection Agency
    General Services               0      52,619                  15,467     286,836
     Administration
    National                       0           0                   1,574           0
     Aeronautics and
     Space
     Administration
    Office of                      0           0              49,018,072   5,136,957
     Personnel
     Management
    Small Business                 0           0                       0      14,101
     Administration
    Social Security                0           0             326,798,659   3,222,598
     Administration
    Other Independent              0   3,783,281         X    33,349,702  87,066,617
     Agencies
    ================================================================================
                         $41,844,837  $16,081,20       Not  $982,626,782  $124,339,1
     Total                                     8  applicab                        49
                                                        le
    --------------------------------------------------------------------------------
    \a An "X" in this column indicates that this agency has at least one
    account with monetary credits or bartering authority.

                                        Table I.2

                             Spending Authority and Permanent
                         Appropriations Used by Budget Function,
                                     Fiscal Year 1994

                                  (Dollars in thousands)

                                                                          Offsetting
                                                  Monetary                collection
                                                  credits/     Permanent          s,
                            Contract   Authority  barterin  appropriatio  nonfederal
    Budget function        authority   to borrow       g\a            ns     sources
    ------------------  ------------  ----------  --------  ------------  ----------
    National Defense      $1,814,470         $ 0         X   $12,075,506  $9,577,625
    International         12,969,580           0         X       158,512   1,465,083
     Affairs
    General Science,               0           0                     171           0
     Space and
     Technology
    Energy                         0     340,383         X        21,552   3,479,344
    Natural Resources         30,000           0         X     1,340,247     435,296
     and Environment
    Agriculture                    0  11,814,311         X       717,257   8,178,910
    Commerce and                   0   2,732,379              18,543,209  81,571,849
     Housing Credit
    Transportation        27,030,787      50,317                  15,535     616,418
    Community and                  0      -2,162                  95,257     164,063
     Regional
     Development
    Education,                     0           0                 192,777      75,289
     Training,
     Employment, and
     Social Services
    Health                         0           0               1,156,773   4,401,357
    Medicare                       0           0             175,293,181           0
    Income Security                0      25,000              94,714,093   5,757,108
    Social Security                0           0             326,798,659       3,150
    Veterans Benefits              0           0               2,432,681   1,340,681
     and Services
    Administration of              0           0               1,814,222     336,799
     Justice
    General Government             0      67,916              14,035,866   1,103,920
    Net Interest                   0           0             301,779,036           0
    Multifunction                  0   1,053,064         X    31,442,248   5,832,257
    ================================================================================
                         $41,844,837  $16,081,20       Not  $982,626,782  $124,339,1
     Total                                     8  applicab                        49
                                                        le
    --------------------------------------------------------------------------------
    \a An "X" in this column indicates that this budget function has at
    least one account with monetary credits or bartering authority.

                                        Table I.3

                             Spending Authority and Permanent
                         Appropriations Used by Fund Type, Fiscal
                                        Year 1994

                                  (Dollars in thousands)

                                                                          Offsetting
                                                  Monetary                collection
                                                  credits/     Permanent          s,
                            Contract   Authority  barterin  appropriatio  nonfederal
    Fund type              authority   to borrow       g\a            ns     sources
    ------------------  ------------  ----------  --------  ------------  ----------
    General                   $3,300     $50,317         X  $356,021,893  $7,794,433
    Special                   30,000           0         X     4,292,109      60,518
    Public enterprise              0  15,962,975         X    18,492,388  102,802,98
                                                                                   3
    Intragovernmental      1,811,170      67,916                       0   7,074,699
     revolving
    Nonrevolving trust    40,000,367           0             603,820,392     509,350
    Revolving trust                0           0                       0   6,097,166
    ================================================================================
                         $41,844,837  $16,081,20       Not  $982,626,782  $124,339,1
     Total                                     8  applicab                        49
                                                        le
    --------------------------------------------------------------------------------
    \a An "X" in this column indicates that this fund type has at least
    one account with monetary credits or bartering authority.

    SPENDING AUTHORITY AND PERMANENT
    APPROPRIATIONS AVAILABLE, BY
    AGENCY
    ========================================================== Appendix II

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    DETAILED INFORMATION ON ACCOUNTS
    WITH SPENDING AUTHORITY AND
    PERMANENT APPROPRIATIONS
    ========================================================= Appendix III

    This appendix provides specific information on budget accounts using
    or having authority to use spending authority or permanent
    appropriations.  It contains legal references, fiscal year 1985 and
    1994 actual amounts used, and other information for each account.  No
    dollar amounts are reported for monetary credits/bartering because
    data for this authority is not recorded in the President's Budget.
    This appendix and table 2 in the letter show different total amounts
    used for fiscal year 1985.  Table 2 shows the amounts used for the
    accounts that had backdoor authority in the 1987 President's Budget.
    This appendix shows the amounts used for accounts that still had
    backdoor authority and were listed in the 1996 President's Budget.
    We used data contained in the 1996 President's Budget because, at the
    time of our analysis, the 1997 budget had not been released.

    The five figures in this appendix are organized by type of backdoor
    authority in the following order:  contract authority; authority to
    borrow; monetary credits or bartering; permanent appropriations; and
    offsetting collections from nonfederal sources credited to
    appropriation or fund accounts.  The figures present each type of
    backdoor authority by agency and bureau, generally in the order in
    which they appear in the Budget of the United States Government,
    Fiscal Year 1996--Appendix.

    EXPLANATION OF ITEMS INCLUDED IN
    FIGURES

          TYPE OF AUTHORITY
    ----------------------------------------------------- Appendix III:0.1

    Identifies the type of spending authority or permanent appropriation
    which the account may use.

          AGENCY
    ----------------------------------------------------- Appendix III:0.2

    Refers to federal departments and establishments, including
    establishments in the legislative and judicial branches, based on
    categories in the Budget of the United States Government, Fiscal Year
    1996--Appendix.  Most of the smaller executive branch agencies are
    grouped under "Other Independent Agencies" and "Funds Appropriated to
    the President."

          BUREAU
    ----------------------------------------------------- Appendix III:0.3

    Designates principal subordinate organizational units or smaller
    executive branch agencies based on categories in the Budget of the
    United States Government, Fiscal Year 1996--Appendix.

          ACCOUNT NAME
    ----------------------------------------------------- Appendix III:0.4

    Identifies the name of an account that is shown with a program and
    financing schedule in the Budget of the United States Government,
    Fiscal Year 1996--Appendix.

          ACCOUNT NUMBER
    ----------------------------------------------------- Appendix III:0.5

    Identifies the identification code of an account that is shown with a
    program and financing schedule in the Budget of the United States
    Government, Fiscal Year 1996--Appendix.

          LEGAL REFERENCE
    ----------------------------------------------------- Appendix III:0.6

    Gives the legal citation(s) providing the spending authority or
    permanent appropriation.  Where we could not verify the legal
    citation submitted by the agency, we have placed an asterisk next to
    the quoted citation.  For a complete discussion of our review of the
    legal citations, see appendix IV, Scope and Methodology.

          YEAR OF ENACTMENT
    ----------------------------------------------------- Appendix III:0.7

    Refers to the calendar year in which the spending authority or
    permanent appropriation was provided.  In cases where there are
    multiple citations, it represents the earliest identifiable
    provision.

          GRH STATUS
    ----------------------------------------------------- Appendix III:0.8

    Provides the account's status under the Balanced Budget and Emergency
    Deficit Control Act of 1985 (also known as Gramm-Rudman-Hollings), as
    amended by the Budget Enforcement Act of 1990 and 1993--that is,
    whether the account is subject to or exempt from sequestration.

             SEQUESTRABLE (SEQ.)
    --------------------------------------------------- Appendix III:0.8.1

    Refers to those accounts whose budgetary resources are subject to
    cancellation under budget enforcement sequestration procedures.

             SEQUESTRABLE, BUT SUBJECT
             TO 906 (SEQ/906)
    --------------------------------------------------- Appendix III:0.8.2

    Refers to those accounts whose budgetary resources are subject to
    cancellation under budget enforcement sequestration procedures, but
    the amount of the sequestration is limited by the provisions of 2
    U.S.C.  section 906.

             EXEMPT
    --------------------------------------------------- Appendix III:0.8.3

    Refers to those accounts which are exempt from reduction under budget
    enforcement sequestration procedures.  This category includes
    accounts with activities that are specifically exempt from reduction,
    activities resulting from private donations, bequests, or voluntary
    contributions to the government, and activities which involve
    intragovernmental funds.

             PARTIAL EXEMPTIONS
             (PARTIAL)
    --------------------------------------------------- Appendix III:0.8.4

    Refers to those accounts for which certain budgetary resources
    specified by law within the account are not subject to cancellation
    under budget enforcement sequestration procedures.  For example, the
    Tennessee Valley Authority Fund is exempt from reduction, except for
    nonpower programs and activities.  The prior legal obligations of 39
    budget accounts are exempt from reduction.

             OPTIONAL EXEMPTION (OPT.)
    --------------------------------------------------- Appendix III:0.8.5

    Refers to the President's authority under the Budget Enforcement Act
    to exempt any military personnel account from sequestration or
    provide for a lower uniform percentage reduction than would otherwise
    apply under budget enforcement sequester procedures.

          SOURCE OF COLLECTIONS
    ----------------------------------------------------- Appendix III:0.9

    Refers to the services, activities, and/or goods for which the major
    portion of offsetting collections from nonfederal sources credited to
    the account are received.

          AMOUNT USED
    ---------------------------------------------------- Appendix III:0.10

    Represents the dollar amount used for contract authority and
    authority to borrow.

          VALUE
    ---------------------------------------------------- Appendix III:0.11

    Represents the dollar amount of monetary credits or bartering used.

          BUDGET AUTHORITY
    ---------------------------------------------------- Appendix III:0.12

    Represents the amount of obligations which may be incurred under a
    permanent appropriation.

          COLLECTED
    ---------------------------------------------------- Appendix III:0.13

    Represents the dollar amount of offsetting collections from
    nonfederal sources credited to the appropriation or fund account.

       Figure III.1:  Contract
       Authority by Agency, Bureau,
       and Account

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       Figure III.2:  Authority to
       Borrow by Agency, Bureau, and
       Account

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       Figure III.3:  Monetary
       Credits/Bartering by Agency,
       Bureau, and Account

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       Figure III.4:  Permanent
       Appropriations by Agency,
       Bureau, and Account

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       Figure III.5:  Offsetting
       Collections by Agency, Bureau,
       and Account

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    SCOPE AND METHODOLOGY
    ========================================================== Appendix IV

    Accounts with backdoor authority have authority provided in laws
    other than appropriation acts to obligate the United States to make
    payments.  The inventory includes accounts with contract authority,
    authority to borrow, and authority to use monetary credits or
    bartering if budget authority has not been provided in advance in
    appropriation acts.  It also includes appropriation or fund accounts
    credited with offsetting collections from nonfederal sources and
    accounts with permanent appropriations.

    There are other financing practices which might be considered similar
    to backdoor authority because they are generally not directly
    controllable in the current year's appropriations process.  Such
    items include annually appropriated entitlements and accounts with
    advance appropriations.  These are not in the inventory because, at
    some time, such funding is considered in the appropriations process.
    Offsetting collections from federal sources and trust funds credited
    to appropriation or fund accounts are not included in the inventory
    because their source is either annually appropriated or is itself in
    the inventory.  As agreed with Senate Budget Committee staff, the
    nonbudgetary credit financing accounts are excluded from the
    inventory.  The credit liquidating accounts are also excluded because
    their permanent appropriations exist solely because of credit reform.
    Similarly, credit program accounts with permanent appropriations for
    credit re-estimates also are not included.  Tax expenditures and tax
    credits are not in the inventory because they are considered on the
    revenue side of the federal budget rather than the spending side.

    We requested data on specific accounts from 81 federal agencies or
    establishments.  To update accounts reported in 1987, we sent
    agencies photocopies of pages from our 1987 inventory report.  We
    sent questionnaires on new accounts we identified to some of the same
    agencies and additional questionnaires to other agencies or
    establishments.  For certain legislative branch accounts, we
    researched and compiled the needed data.  We identified new accounts
    using OMB data in GAO's Budget Database\1 and by requesting agencies
    to identify accounts with authority to use monetary credits or
    bartering or any other account they thought met the definition of
    backdoor authority we provided to them.  We used the program and
    financing schedule\2 line code descriptions in OMB Circular A-11 to
    select codes relating to spending authority and permanent
    appropriations.  Using line codes 60.00 to 69.90, we searched GAO's
    Budget Database for fiscal years 1987 through 1995 and selected
    accounts that used one or more types of backdoor authority in any of
    those years.  We then prepared questionnaires on the selected
    accounts identifying the agency, bureau, and account number.

    Financial data for fiscal years 1985 and 1994 were obtained from the
    GAO Budget Database.  Fiscal year 1985 dollar amounts are reported
    only for accounts that existed at that time.  No dollar amounts are
    reported for monetary credits/bartering because data for this
    authority is not recorded in the President's Budget.  We used data
    contained in the 1996 President's Budget because, at the time of our
    analysis, the 1997 budget had not been released.

    We had numerous discussions with many agency officials in attempting
    to obtain accurate and complete data.  If an agency did not provide
    the data as requested, we have indicated this by stating "not
    provided."

    We asked each agency to provide us with the legal citation of the
    agency's spending authority or permanent appropriations for each
    account identified.  We reviewed each citation to ensure its
    accuracy.  When necessary, we sought clarification from agency
    officials.  In certain instances, the citation could not be verified
    and, in appendix III, we marked the citation with an asterisk.  In
    some cases, the agency's citation did not provide the spending
    authority or permanent appropriations that the agency claimed.  In
    other cases, the citation provided supported a different type of
    authority (for example, permanent appropriations instead of contract
    authority).  For those citations which could not be verified, we will
    continue to work with the appropriate agency and its office of
    general counsel to resolve the discrepancy.  Generally, the date of
    enactment is reported as provided by the agency unless a different
    date was readily apparent in our legal review.  Also, some accounts
    have multiple legal citations that provide backdoor authority and
    some existing citations have been amended or expanded over time.  We
    reported only the earliest identifiable year of enactment for the
    legislation we believe authorized the backdoor authority.  To obtain
    an account's GRH status including any special rules or limitations,
    we used OMB data contained in the GAO Budget Database.

    We then compared and analyzed the new inventory data and the old
    inventory in terms of the number of accounts and dollar amounts.

    --------------------
    \1 The GAO Budget Database is a compilation of automated data we
    obtained from OMB budget tapes used in preparing the annual budgets.

    \2 Each account's program and financing schedule in the Budget of the
    United States Government--Appendix shows the type and amount of
    budgetary resources available to finance obligations.

    MAJOR CONTRIBUTORS TO THIS REPORT
    =========================================================== Appendix V

    ACCOUNTING AND INFORMATION
    MANAGEMENT DIVISION, WASHINGTON,
    D.C.

    Christine E.  Bonham, Assistant Director
    Trina V.  Lewis, Evaluator-in-Charge
    Deborah A.  Colantonio, Senior Evaluator
    Robert M.  Sexton, Senior Evaluator
    Warren C.  Underwood, Senior Evaluator
    Joseph G.  Heisler, Evaluator
    Carol M.  Henn, Evaluator
    Elizabeth A.  McClarin, Evaluator
    John W.  Mingus, Evaluator
    James F.  Loschiavo, Social Science Analyst

    OFFICE OF THE GENERAL COUNSEL

    Carlos E.  Diz, Attorney

    GLOSSARY
    =========================================================== Appendix 0

          ADVANCE APPROPRIATION
    ------------------------------------------------------- Appendix 0:0.1

    Budget authority provided in an appropriation act that is first
    available in a fiscal year beyond the fiscal year for which the
    appropriation act is enacted.

          ACCOUNT
    ------------------------------------------------------- Appendix 0:0.2

    A budgeting unit that records budgetary resources for obligation and
    outlay and is shown in the Budget of the United States Government,
    Fiscal Year 1996--Appendix.

          APPROPRIATION ACT
    ------------------------------------------------------- Appendix 0:0.3

    A statute, under the jurisdiction of the House and Senate Committees
    on Appropriations, that authorizes federal agencies to incur
    obligations and to make payments out of the Treasury for specified
    purposes.

          AUTHORITY TO BORROW
    ------------------------------------------------------- Appendix 0:0.4

    The statutory authority that permits a federal agency to incur
    obligations and make payments out of borrowed monies.  This does not
    include the Treasury's authority to borrow from the public or other
    sources under chapter 31 of title 31 U.S.  Code.

          BUDGET AUTHORITY
    ------------------------------------------------------- Appendix 0:0.5

    Authority provided by law to enter into obligations that will result
    in immediate or future outlays involving federal government funds.
    Budget authority, however, does not include authority to insure or
    guarantee the repayment of indebtedness incurred by another person or
    government.  The basic forms of budget authority are appropriations,
    authority to borrow, contract authority, and authority to expend
    offsetting collections.

          CONSTANT DOLLAR
    ------------------------------------------------------- Appendix 0:0.6

    A dollar value adjusted for changes in prices.

          CONTRACT AUTHORITY
    ------------------------------------------------------- Appendix 0:0.7

    The statutory authority that permits obligations to be incurred in
    advance of appropriations or in anticipation of receipts to be
    credited to a revolving fund or other account.

          CURRENT BUDGET AUTHORITY
    ------------------------------------------------------- Appendix 0:0.8

    Budget authority enacted by the Congress in or immediately preceding
    the fiscal year in which it becomes available.

          CURRENT DOLLAR
    ------------------------------------------------------- Appendix 0:0.9

    The dollar amount at the time the authority was provided or used.

          FUND TYPE
    ------------------------------------------------------ Appendix 0:0.10

    The extent of restriction or earmarking within accounts.  The six
    fund types discussed in this report follow.

             GENERAL FUNDS
    ---------------------------------------------------- Appendix 0:0.10.1

    Accounts containing resources to be expended for the general support
    of the federal government.  They include spending from both annual
    and permanent appropriations.

             INTRAGOVERNMENTAL FUNDS
    ---------------------------------------------------- Appendix 0:0.10.2

    Expenditure accounts authorized by law to facilitate financing
    transactions primarily within and between federal agencies on a
    revolving fund basis.

             PUBLIC ENTERPRISE FUNDS
    ---------------------------------------------------- Appendix 0:0.10.3

    Accounts authorized by law to be credited with offsetting
    collections, primarily from the public, that are generated by and
    earmarked to finance a continuing cycle of business-type operations.

             SPECIAL FUNDS
    ---------------------------------------------------- Appendix 0:0.10.4

    Accounts whose resources are earmarked by law for specific purposes.

             TRUST FUNDS
    ---------------------------------------------------- Appendix 0:0.10.5

    Accounts designated by law as "trust funds" and earmarked for
    specific purposes and programs according to the terms of the trust
    agreement or statute.

             TRUST REVOLVING FUNDS
    ---------------------------------------------------- Appendix 0:0.10.6

    Trust fund expenditure accounts that are appropriation accounts
    authorized to be credited with collections and used to carry out a
    cycle of business-type operations in accordance with statute.

          MONETARY CREDITS OR
          BARTERING
    ------------------------------------------------------ Appendix 0:0.11

    The authority to make purchases by giving the seller credits or
    something other than money instead of issuing a check.  The holder of
    the credits may apply them later to reduce an amount owed the
    government in other, sometimes unrelated, transactions.  An agency's
    acceptance of credits or something other than money as payment
    results in the agency forgoing the collection of offsetting receipts
    or collections in an amount equal to the credit.

          OFFSETTING COLLECTIONS FROM
          NONFEDERAL SOURCES
    ------------------------------------------------------ Appendix 0:0.12

    Collections from sources outside the federal government that are
    credited to appropriation or fund accounts.  They include such things
    as user fees, loan repayments, and proceeds from sales.

          PERMANENT APPROPRIATION
    ------------------------------------------------------ Appendix 0:0.13

    An appropriation that becomes available as a result of previously
    enacted legislation and does not require current action by the
    Congress.

          PROPRIETARY OFFSETTING
          RECEIPTS
    ------------------------------------------------------ Appendix 0:0.14

    Collections from the public credited to general fund, special fund,
    or trust fund receipt accounts, as a result of the government's
    business-type or market-oriented activities.  Among these are loan
    repayments, interest, sale of property and products, charges for
    nonregulatory services, and rents and royalties.  Such collections
    are not counted as budget receipts and are offset against total
    budget authority and outlays by agency and function.

          SPENDING AUTHORITY
    ------------------------------------------------------ Appendix 0:0.15

    As defined by the Congressional Budget Act of 1974, as amended, a
    collective designation for authority provided in laws other than
    appropriation acts to obligate the government to make payments.  It
    includes contract authority, authority to borrow, and entitlement
    authority for which the budget authority is not provided in advance
    by appropriation acts.  It also includes authority to forgo the
    collection of proprietary offsetting receipts (the use of monetary
    credits) and to make any other payments for which the budget
    authority is not provided in advance by appropriation acts.  The
    latter includes, but is not limited to, authority to make payments
    from offsetting collections credited to appropriation or fund
    accounts.

    *** End of document. ***