Federal Budget: Agency Obligations by Budget Function and Object
Classification for Fiscal Year 2003 (25-JUN-04, GAO-04-834).
Members of the Congress and governmental experts have expressed
repeated interest in examining the overlapping and fragmented
functions and activities of the federal government. As a
first-level look at potential overlap and fragmentation, the
Chairwoman, Subcommittee on Civil Service and Agency
Organization, House Committee on Government Reform, asked GAO to
present information on which federal agencies spend funds in
which federal mission areas. This report examines federal
spending through two commonly used analytical approaches--budget
functions and object classifications.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-04-834
ACCNO: A10660
TITLE: Federal Budget: Agency Obligations by Budget Function and
Object Classification for Fiscal Year 2003
DATE: 06/25/2004
SUBJECT: Audits
Budget functions
Budget obligations
Budget outlays
Data collection
Federal agencies
Agency missions
******************************************************************
** This file contains an ASCII representation of the text of a **
** GAO Product. **
** **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced. Tables are included, but **
** may not resemble those in the printed version. **
** **
** Please see the PDF (Portable Document Format) file, when **
** available, for a complete electronic file of the printed **
** document's contents. **
** **
******************************************************************
GAO-04-834
United States General Accounting Office
GAO
Report to the Chairwoman, Subcommittee on Civil Service and Agency Organization, Committee on Government Reform, House of Representatives
June 2004
FEDERAL BUDGET
Agency Obligations by Budget Function and Object Classification for Fiscal Year 2003
a
GAO-04-834
Highlights of GAO-04-834, a report to the Chairwoman, Subcommittee on
Civil Service and Agency Organization, Committee on Government Reform,
House of Representatives
Members of the Congress and governmental experts have expressed repeated
interest in examining the overlapping and fragmented functions and
activities of the federal government. As a first-level look at potential
overlap and fragmentation, the Chairwoman, Subcommittee on Civil Service
and Agency Organization, House Committee on Government Reform, asked GAO
to present information on which federal agencies spend funds in which
federal mission areas. This report examines federal spending through two
commonly used analytical approaches-budget functions and object
classifications.
June 2004
FEDERAL BUDGET
Agency Obligations by Budget Function and Object Classification for Fiscal Year
2003
This report, and its accompanying e-supplement-available on GAO's Web
site-present quantitative data on fiscal year 2003 obligations from
several perspectives and levels of detail that can be used to examine
spending patterns reported against federal mission areas (budget
functions). The federal budget is divided into 20 functions, that
combined, provide a comprehensive basis for analysis, offer a window into
potential areas of overlap and fragmentation, and serve as a starting
point for discussions about government restructuring.
Most executive branch agencies address more than one mission area; in
fact, most made obligations in 2003 to three or more budget functions.
Focusing on the missions of government, rather than federal organizations,
produces a similarly intricate picture. Excluding Social Security,
Medicare, Net Interest, and two functions with no data (allowances and
undistributed offsetting receipts), 12 of the remaining 15 budget
functions are addressed by five or more executive branch departments and
major agencies. Sometimes there is a "match" between a function and a
department-for example, the Department of Transportation is associated
almost exclusively with the Transportation function (400) and over 80
percent of spending within the Transportation function (400) is by the
Department of Transportation. Sometimes, however, there is an imbalance
between the importance of an agency in a mission area and the importance
of the mission area within the department. For example, while almost all
obligations in the Agriculture function (350) are by the USDA, that
function represents only about 41 percent of the spending by the
department. Over 40 percent of USDA's obligations are for the Income
Security function (600).
In addition, this report provides object classification information as a
resource for helping to shape and consider options once there is evidence
to suggest that restructuring is warranted. Organized by major types of
expenditure, an object class analysis shows how agencies spend funds to
deliver federal programs and is a shorthand way of identifying whether
these services are provided primarily through grants and direct payments
to qualified beneficiaries, contracts, or directly by federal employees.
The e-supplement contains tabular data that provide additional layers of
information by budget subfunctions. This allows a user to "drill down" as
needed to inquire into any particular spending pattern of interest within
a function, subfunction, object class, or agency. These tables are not
available in a hard copy version. If you would like to view the tables,
please click on the following link (GAO-04-884SP) or access on the
Internet at www.gao.gov and enter the report number.
www.gao.gov/cgi-bin/getrpt?GAO-04-834.
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Susan J. Irving at (202)
512-9142 or [email protected].
Contents
Letter 1 Scope and Methodology 6 Background 7
Appendixes
Appendix I: Appendix II: Appendix III:
Appendix IV:
Budget Function Classification System 12
Object Classification System 16
Budget Functions by Agency and Object Class 18 National Defense (050) 18 International Affairs (150) 19 General Science, Space, and Technology (250) 20 Energy (270) 21 Natural Resources and Environment (300) 22 Agriculture (350) 23 Commerce and Housing Credit (370) 24 Transportation (400) 25 Community and Regional Development (450) 26 Education, Training, Employment, and Social Services (500) 27 Health (550) 28 Medicare (570) 29 Income Security (600) 30 Income Support: Retirement and Disability
* A subcomponent of Income Security (600) 31 Other Income Support
* A subcomponent of Income Security (600) 32 Social Security (650) 33 Veterans Benefits and Services (700) 34 Administration of Justice (750) 35 General Government (800) 36 Net Interest (900) 37
Agencies by Budget Subfunction and Object Class 38
Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy Department of Health and Human Services Department of Homeland Security Department of Housing and Urban Development 38 39 40 41 42 43 44 45
Contents
Department of the Interior
Department of Justice
Department of Labor
Department of State
Department of Transportation
Department of the Treasury
Department of Veterans Affairs
Environmental Protection Agency
Executive Office of the President
General Services Administration
National Aeronautics and Space Administration
National Science Foundation
Nuclear Regulatory Commission
Office of Personnel Management
Postal Service
Small Business Administration
Social Security Administration
Independent Agencies
Legislative Branch
Judicial Branch
46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65
Appendix V:
Agencies and Bureaus Obligating $2 Billion or More in Fiscal Year 2003 in Selected Object Classes 66
Appendix VI: Glossary of Key Terms 71
Tables Table 1:
Table 2: Table 3:
Table 4:
Table 5: Table 6:
Description of the Budget Function Classification
System 12
Description of the Object Classification System 16
Personnel-Agencies and Bureaus Obligating $2 Billion or
More in the Personal Compensation and Benefits Object
Class 66
Travel, Rent, Printing and Supplies-Agencies and
Bureaus Obligating
$2 Billion or More in the Travel, Rent, Printing, and
Supplies Object Class 67
Other Contractual Services-Agencies and Bureaus
Obligating $2 Billion or More in the Other Contractual
Services Object Class 67
Acquisition of Assets-Agencies and Bureaus Obligating
$2 Billion or More in the Acquisition of Assets Object
Class 68
Contents
Table 7:
Grants, Insurance Claims and Indemnities, Interest and Dividends-Agencies and Bureaus Obligating $2 Billion or More in the Grants, Insurance Claims and Indemnities, Interest and Dividends Object Class
Figures Figure 1:
Figure 2:
Figure 3:
Figure 4:
Figure 5:
Figure 6:
Figure 7:
Figure 8: Figure 9: Fiscal Year 2003 Spending Patterns by Agency and Function Fiscal Year 2003 National Defense (050) Obligations by Agency Fiscal Year 2003 National Defense (050) Obligations by Object Class Fiscal Year 2003 International Affairs (150) Obligations by Agency Fiscal Year 2003 International Affairs (150) Obligations by Object Class Fiscal Year 2003 General Science, Space, and Technology (250) Obligations by Agency Fiscal Year 2003 General Science, Space, and Technology (250) Obligations by Object Class Fiscal Year 2003 Energy (270) Obligations by Agency Fiscal Year 2003 Energy (270) Obligations by Object Class
Figure 10: Fiscal Year 2003 Natural Resources and Environment (300) Obligations by Agency
Figure 11: Fiscal Year 2003 Natural Resources and Environment (300) Obligations by Object Class
Figure 12: Fiscal Year 2003 Agriculture (350) Obligations by Agency
Figure 13: Fiscal Year 2003 Agriculture (350) Obligations by Object Class
Figure 14: Fiscal Year 2003 Commerce and Housing Credit (370) Obligations by Agency
Figure 15: Fiscal Year 2003 Commerce and Housing Credit (370) Obligations by Object Class
Figure 16: Fiscal Year 2003 Transportation (400) Obligations by Agency
Figure 17: Fiscal Year 2003 Transportation (400) Obligations by Object Class
Figure 18: Fiscal Year 2003 Community and Regional Development (450) Obligations by Agency
Figure 19: Fiscal Year 2003 Community and Regional Development (450) Obligations by Object Class
3
18
18
19
19
20
20 21
21
22
22
23
23
24
24
25
25
26
26
Contents
Figure 20: Fiscal Year 2003 Education, Training, Employment, and
Social Services (500) Obligations by Agency 27
Figure 21: Fiscal Year 2003 Education, Training, Employment, and
Social Services (500) Obligations by Object Class 27
Figure 22: Fiscal Year 2003 Health (550) Obligations by Agency 28
Figure 23: Fiscal Year 2003 Health (550) Obligations by Object
Class 28
Figure 24: Fiscal Year 2003 Medicare (570) Obligations by
Agency 29
Figure 25: Fiscal Year 2003 Medicare (570) Obligations by Object
Class 29
Figure 26: Fiscal Year 2003 Income Security (600) Obligations by
Agency 30
Figure 27: Fiscal Year 2003 Income Security (600) Obligations by
Object Class 30
Figure 28: Fiscal Year 2003 Income Support: Retirement and
Disability Obligations by Agency 31
Figure 29: Fiscal Year 2003 Income Support: Retirement and
Disability Obligations by Object Class 31
Figure 30: Fiscal Year 2003 Other Income Support Obligations by
Agency 32
Figure 31: Fiscal Year 2003 Other Income Support Obligations by
Object Class 32
Figure 32: Fiscal Year 2003 Social Security (650) Obligations by
Agency 33
Figure 33: Fiscal Year 2003 Social Security (650) Obligations by
Object Class 33
Figure 34: Fiscal Year 2003 Veterans Benefits and Services (700)
Obligations by Agency 34
Figure 35: Fiscal Year 2003 Veterans Benefits and Services (700)
Obligations by Object Class 34
Figure 36: Fiscal Year 2003 Administration of Justice (750)
Obligations by Agency 35
Figure 37: Fiscal Year 2003 Administration of Justice (750)
Obligations by Object Class 35
Figure 38: Fiscal Year 2003 General Government (800) Obligations
by Agency 36
Figure 39: Fiscal Year 2003 General Government (800) Obligations
by Object Class 36
Figure 40: Fiscal Year 2003 Net Interest (900) Obligations by
Agency 37
Contents
Figure 41: Fiscal Year 2003 Net Interest (900) Obligations by Object
Class 37
Figure 42: Fiscal Year 2003 Department of Agriculture Obligations
by Subfunction 38
Figure 43: Fiscal Year 2003 Department of Agriculture Obligations
by Object Class 38
Figure 44: Fiscal Year 2003 Department of Commerce Obligations by
Subfunction 39
Figure 45: Fiscal Year 2003 Department of Commerce Obligations by
Object Class 39
Figure 46: Fiscal Year 2003 Department of Defense Obligations by
Subfunction 40
Figure 47: Fiscal Year 2003 Department of Defense Obligations by
Object Class 40
Figure 48: Fiscal Year 2003 Department of Education Obligations by
Subfunction 41
Figure 49: Fiscal Year 2003 Department of Education Obligations by
Object Class 41
Figure 50: Fiscal Year 2003 Department of Energy Obligations by
Subfunction 42
Figure 51: Fiscal Year 2003 Department of Energy Obligations by
Object Class 42
Figure 52: Fiscal Year 2003 Department of Health and Human
Services Obligations by Subfunction 43
Figure 53: Fiscal Year 2003 Department of Health and Human
Services Obligations by Object Class 43
Figure 54: Fiscal Year 2003 Department of Homeland Security
Obligations by Subfunction 44
Figure 55: Fiscal Year 2003 Department of Homeland Security
Obligations by Object Class 44
Figure 56: Fiscal Year 2003 Department of Housing and Urban
Development Obligations by Subfunction 45
Figure 57: Fiscal Year 2003 Department of Housing and Urban
Development Obligations by Object Class 45
Figure 58: Fiscal Year 2003 Department of the Interior Obligations
by Subfunction 46
Figure 59: Fiscal Year 2003 Department of the Interior Obligations
by Object Class 46
Figure 60: Fiscal Year 2003 Department of Justice Obligations by
Subfunction 47
Figure 61: Fiscal Year 2003 Department of Justice Obligations by
Object Class 47
Contents
Figure 62: Fiscal Year 2003 Department of Labor Obligations by
Subfunction 48
Figure 63: Fiscal Year 2003 Department of Labor Obligations by
Object Class 48
Figure 64: Fiscal Year 2003 Department of State Obligations by
Subfunction 49
Figure 65: Fiscal Year 2003 Department of State Obligations by
Object Class 49
Figure 66: Fiscal Year 2003 Department of Transportation
Obligations by Subfunction 50
Figure 67: Fiscal Year 2003 Department of Transportation
Obligations by Object Class 50
Figure 68: Fiscal Year 2003 Department of the Treasury Obligations
by Subfunction 51
Figure 69: Fiscal Year 2003 Department of the Treasury Obligations
by Object Class 51
Figure 70: Fiscal Year 2003 Department of Veterans Affairs
Obligations by Subfunction 52
Figure 71: Fiscal Year 2003 Department of Veterans Affairs
Obligations by Object Class 52
Figure 72: Fiscal Year 2003 Environmental Protection Agency
Obligations by Subfunction 53
Figure 73: Fiscal Year 2003 Environmental Protection Agency
Obligations by Object Class 53
Figure 74: Fiscal Year 2003 Executive Office of the President
Obligations by Subfunction 54
Figure 75: Fiscal Year 2003 Executive Office of the President
Obligations by Object Class 54
Figure 76: Fiscal Year 2003 General Services Administration
Obligations by Subfunction 55
Figure 77: Fiscal Year 2003 General Services Administration
Obligations by Object Class 55
Figure 78: Fiscal Year 2003 National Aeronautics and Space
Administration Obligations by Subfunction 56
Figure 79: Fiscal Year 2003 National Aeronautics and Space
Administration Obligations by Object Class 56
Figure 80: Fiscal Year 2003 National Science Foundation Obligations
by Subfunction 57
Figure 81: Fiscal Year 2003 National Science Foundation Obligations
by Object Class 57
Figure 82: Fiscal Year 2003 Nuclear Regulatory Commission
Obligations by Subfunction 58
Contents
Figure 83: Fiscal Year 2003 Nuclear Regulatory Commission
Obligations by Object Class 58
Figure 84: Fiscal Year 2003 Office of Personnel Management
Obligations by Subfunction 59
Figure 85: Fiscal Year 2003 Office of Personnel Management
Obligations by Object Class 59
Figure 86: Fiscal Year 2003 Postal Service Obligations by
Subfunction 60
Figure 87: Fiscal Year 2003 Postal Service Obligations by Object
Class 60
Figure 88: Fiscal Year 2003 Small Business Administration
Obligations by Subfunction 61
Figure 89: Fiscal Year 2003 Small Business Administration
Obligations by Object Class 61
Figure 90: Fiscal Year 2003 Social Security Administration
Obligations by Subfunction 62
Figure 91: Fiscal Year 2003 Social Security Administration
Obligations by Object Class 62
Figure 92: Fiscal Year 2003 Independent Agencies Obligations by
Subfunction 63
Figure 93: Fiscal Year 2003 Independent Agencies Obligations by
Object Class 63
Figure 94: Fiscal Year 2003 Legislative Branch Obligations by
Subfunction 64
Figure 95: Fiscal Year 2003 Legislative Branch Obligations by Object
Class 64
Figure 96: Fiscal Year 2003 Judicial Branch Obligations by
Subfunction 65
Figure 97: Fiscal Year 2003 Judicial Branch Obligations by Object
Class 65
This is a work of the U.S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
its entirety without further permission from GAO. However, because this
work may contain copyrighted images or other material, permission from the
copyright holder may be necessary if you wish to reproduce this material
separately.
A
United States General Accounting Office
Washington, D.C. 20548
June 25, 2004
The Honorable Jo Ann Davis
Chairwoman, Subcommittee on Civil Service and Agency Organization
Committee on Government Reform
House of Representatives
Dear Madam Chairwoman:
If the federal government is to examine and rationalize overlap or
fragmentation in its functions and activities, mapping which federal
agencies spend funds in which federal mission areas provides a first-level
look at potential overlap and fragmentation. Although this type of analysis
cannot answer the question of whether there is inappropriate overlap or
fragmentation-nor indicate whether the overlap shown is duplicative, it
can help in the selection of areas for further investigation. Similarly,
knowing how agencies spend funds to implement their programs can also
provide an indication of the types of mechanism or means federal agencies
use to deliver services, which is an important consideration in any
restructuring proposal.
As you requested, this letter examines federal spending through two
commonly used analytical approaches-budget functions and object
classifications. Budget functions provide a comprehensive way to examine
federal spending by purpose-the "national need" the activity seeks to
address-and broad mission areas. As such, budget functions are used in
the Budget Resolution to set initial budget priorities.1 The basic purpose of
the budget functions-to summarize federal spending governmentwide-
has remained constant. The fact that the basic structure of the budget
functions has remained relatively stable allows us to examine the changing
priorities of federal spending over time. Alternatively, the object
classification system provides a comprehensive overview of how agencies
have obligated their funds based on the goods, services, or items
purchased. It also is a shorthand way of understanding how agencies
deliver services, which can help in considering restructuring options if
1 The resolution establishes, for the fiscal year beginning on October 1 of the year of the resolution, planning levels for the two following fiscal years and appropriate levels for the following: total federal revenues; the surplus or deficit in the budget; new budget authority, outlays, direct loan obligations, and primary loan guarantee commitments in total, and for each major functional category; the public debt; and Social Security outlays and revenues (2 U.S.C. S: 632).
further analysis suggests that there is unnecessary overlap and fragmentation in an area. We have included object class information in this report primarily as an additional resource.
Information on federal spending by budget function is summarized in figure 1 using end of fiscal year 2003 gross obligations.2 This figure shows that nearly all budget functions (mission areas) are spread across multiple agencies or departments.3 While only one executive branch agency, Social Security Administration, obligates funds to the Social Security function (650) (see also fig. 32), and almost all of the Agriculture function (350) (fig.
12) consists of USDA obligations, 10 executive branch agencies obligate funds to the Income Security function (600) as well as several independent agencies. We see a similar pattern in that, most federal departments and agencies obligate funds in more than one budget function; they had programs and activities that addressed more than one mission area or area of "national need." There is variation, however, in the range of mission areas within a single department. For example, the Department of Veterans Affairs (VA), Postal Service, and the Nuclear Regulatory Commission (NRC), each obligated funds in only one budget function while the Department of Agriculture (USDA) obligated funds in nine functions. Sixteen executive departments (not including independent agencies) show obligations in three or more functions.
2 Obligations reflect orders placed, contracts awarded, and other similar transactions during a fiscal year. As an expression of an agency's total financial commitments for a given period, gross obligations portray the relative size of an organization, without regard to the type of underlying budgetary resource or when resulting outlays may occur. When aggregated, however, gross obligations may overstate both department and governmentwide totals. For example, an agency's obligations may include services provided to another agency for which they will be reimbursed. When reimbursement is received, these funds can be used to incur new obligations as long as the budget authority has not expired.
3 Eleven executive branch agencies (excluding independent agencies) obligate funds to the General Government function (800) which is not surprising since that function covers the general overhead cost of the federal government including activities such as central fiscal operations, personnel, property, and other services that cannot be reasonably classified in any other major function.
Figure 1: Fiscal Year 2003 Spending Patterns by Agency and Function
Executive Branch
Judicial Branch 2
Legislative Branch 7
Number of agencies charging this 1 1 1 1 2 2 1
function
All 8 8 3 4 9 2 10 5 8 8 9 2 13 1 5 8 13 1
Source: GAO analysis.
aTwo budget functions are not shown above, Allowances, because there are
no 2003 actual obligations, and Undistributed Offsetting Receipts, because
no obligations are charged to agencies.
Note: To view a complete listing of the independent agencies used for this
figure, please click on the following link (GAO-04-884SP) to GAO's
accompanying e-supplement or access on the Internet at www.gao.gov and
enter the report number.
When we compared agency obligations shown by budget function in fiscal
year 1995 to what is shown in table 1 we found that the pattern overall had changed little. However, while the table displays the number of departments charging obligations in each mission area and the number of
mission areas in which each department spends funds, the pie charts
shown in appendixes III and IV provide a richer story. It is in these pie charts that the relative importance of a mission area to an agency-and of
an agency to a mission area-can be seen. It also shows the different
delivery approaches used (grants and cash payments, federal personnel,
contracts). Some of the patterns disclosed by arraying spending by budget
function include:
o Most executive departments and agencies address more than one
mission area; in fact, most made obligations in 2003 to three or more budget functions. The next level of analysis-which can be seen in an accompanying e-supplement-would be to look below the department at agencies within departments and below the function to subfunctions. The picture would then show the many different subfunctions
addressed by a single federal department or agency.
o
Focusing on the missions of government, rather than federal organizations, produces a similarly intricate picture. Excluding Social
Security, Medicare, and Net Interest, 12 of the remaining 15 budget
functions are addressed by five or more executive branch departments and
major agencies. Again,
a second level of analysis can be seen in the accompanying e-supplement.
o
Sometimes there is a "match" between a function and a department. For example, spending within the Department of Transportation is associated almost exclusively with the Transportation function (400)
(fig. 66) and over 80 percent of spending within the Transportation function (400) (fig. 16) is by the Department of Transportation. Sometimes, however, there is an imbalance between the importance of an agency in a mission area and the importance of the mission area within the department. For example, while almost all obligations in the
Agriculture function (350) (fig. 12) are by the USDA, that function represents only about 41 percent of the spending by the department.
o
Approximately the same percentage of USDA's obligations is for the Income Security function (600) (fig. 42).4
o Agency obligations by budget function reflect the federal government's
response to changing priorities and "national needs" for a given fiscal
year. The creation of the Department of Homeland Security in the aftermath of September 11, 2001 provides a prime example of this. The new department was tasked with preventing and deterring terrorist attacks by unifying the vast network of organizations and institutions involved in efforts to secure our nation. In fiscal year 2003, the Department of Homeland Security had obligations in eight budget
functions, ranging from the National Defense function (050) to the Community and Regional Development function (450) to the Health
function (550).5
o
Compared to fiscal year 1995, the number of budget functions charged increased for the Department of Defense, the Department of Labor, the Executive Office of the President, and the Social Security Administration; whereas, the number decreased for the Department of
Housing and Urban Development, the Department of Justice, and the
Department of Transportation. Similarly, the number of agencies charging funds to a particular budget function was about the same in fiscal year 1995 as in fiscal year 2003. The biggest change occurred in
the Health function (550). In fiscal year 1995, excluding independent
agencies, four executive branch agencies charged funds
to this function compared to eight agencies in fiscal year 2003.6
This report is organized as follows:
o
Appendixes I and II provide descriptive and definitional information about the budget functions and object classification system.
4 Over 40
percent of USDA's obligations are associated with the Income Security
function (600) and the Food and Nutrition Assistance subfunction (605).
5 Only the Department of Agriculture and the Department of
the Treasury had obligations in more budget functions.
6 The increases in the number of agencies obligating funds to
the Health function (550) are attributable to the addition of new
health accounts in the Department of Defense, the
Department of Homeland Security, and the Department of the Treasury
as well as the recoding of an account in the Department of the Interior.
o Appendix I provides a table describing the budget function
classification system.
o Appendix II provides a table displaying the major and sub-object
classes for the fiscal year 2003 budget.
o
Appendix III contains pie charts organized by budget function. The pie charts graphically depict fiscal year 2003 obligations by agency and
object class. These show which agencies charged funds to each budget
function and which methods and approaches for delivering services are found in that function.7
o Appendix IV contains pie charts organized by agency. These pie charts
graphically depict fiscal year 2003 agency obligations by budget subfunction and object class. This provides a first-level view
of how an agency spends its funds by mission areas and what
it spends funds on by one or more broad expenditure categories, such as
for personnel, grants or contracts.8
o
Appendix V provides tables displaying fiscal year 2003 object class data
for those agencies and bureaus reporting $2 billion in one or more
of the major object classes (except for major object class All
Other, which we have not included).
o Appendix VI provides a glossary of key terms.
Scope and Methodology
GAO was asked to provide a high-level analysis of spending patterns against broad federal mission areas (or purpose) as well as information on
the types of expenditures agencies incur in delivering federal programs. To
provide this information, we relied on information from the Office of Management and Budget (OMB) on end of fiscal year gross obligations
used to develop the President's fiscal year
2005 budget. All of these data are reported as part of the annual executive budget formulation process.
Although budget data are not audited, we reviewed the data reliability of the automated information and found it
to be sufficiently reliable for reporting purposes. We also reviewed OMB guidance contained in OMB
7 These pie charts are also available in the e-supplement.
8 These pie charts are also available in the e-supplement.
Circular A-11, Preparation, Submission, and Execution of the
Budget. This circular is revised annually and provides agencies with general information on the budget process, guidance on preparing and submitting budget estimates, instructions on budget execution, and information on budget accounts, budget functions, and object classifications. In addition, we relied on GAO's
previously issued work that examined the origins,
trends, and implications of the budget function and object classification systems. We group object classifications into the following six categories: (1)
Personal Compensation and Benefits; (referred to in tables, pie charts,
and the e-supp as "personnel") (2) Travel, Rent, Printing, and
Supplies; (3) Other Contractual Services; (4) Acquisition of Assets; (5)
Grants and Fixed Charges; and (6) All Other. We conducted our
review from April 2004 through June 2004 in accordance with generally accepted government auditing standards.
Background The following provides additional information on understanding the
variation in budget functions and subfunctions as well as object classes.
Budget Functions The budget function classification system provides a comprehensive and consistent means
to capture federal activity and
group budgetary resources according to mission area or "national need."
9 These "national needs" are
grouped into 17 broad areas for analyzing and understanding the budget.
Three additional categories-Net Interest, Allowances, and Undistributed
Offsetting Receipts-do not address specific "national needs" but are included so that the total of all functions sum to the budget totals. A function may be divided into two or more subfunctions, depending upon
the complexity of the "national need" addressed by that function. Each functional and subfunctional category is represented by a three-digit code.
To the extent feasible, budget functions are assigned without regard to
agency or organizational distinctions. Although many activities serve more
than one purpose, each federal activity is placed in a functional classification that best defines the activity's most important purpose. This is necessary so that the sum of the functional categories equals the budget
9 The functional classification system
is used primarily by the Budget Committees for the
congressional budget process. Although tax expenditures are also
classified by budget function, for
purposes of this report only spending information (that is, obligations that commit the federal government to make
payments now or in the future) is included.
totals. The functional classifications are also the categories that the Congress uses in the concurrent resolutions on the budget, pursuant to the Congressional Budget and Impoundment Control Act of 1974.10 Different
programs within a single function may fall under the jurisdiction of
different committees.
While the tables and graphics provide a view of how responsibility for
federal mission areas is spread over multiple agencies, this data cannot answer the question of whether there
is duplication. Rather,
it can provide hints about where further exploration of the issues of fragmentation, overlap and duplication might be warranted. In interpreting the data it
is important to note that:
o
The function classifications may be broad enough in some cases to aggregate very different activities. For example, table 1 shows 10 executive branch organizations (excluding independent agencies) involved in the Income Security function (600); 3 are for retirement and
disability programs (including federal employee retirement), 6 are in
the area of income security for the low-income population and 1 has
activities in both areas.
o
Since a specific function or subfunction may not fully encompass a set of logically related activities, it may be necessary to look at more than one function or subfunction to get a full picture of a set of related activities. For example, the Commerce and Housing Credit function (370) does not include the Housing Assistance subfunction (604), which is in the Income Security function
(600). Similarly, the Income Security
function (600) does not include either Social Security (650) or various payments to veterans (700)-all of which might be considered a form of
income security.
o
Subfunctions are based on a variety of organizing themes. Some are based on divisible segments of broad mission areas (such as, Water
Transportation), some on a set of related activities (such as, Health Care
Services), and some on common functions (such as, Central Fiscal
Operations).
10 Pub. L. No. 93-344, 88 Stat. 297 (1974), as amended. See 2
U.S.C. S: 632.
Object Classification The budget object classification system is one of several ways to array financial data in budgetary presentations. This classification approach emphasizes the goods, services, or items purchased and how they are delivered.
The major object classes are
o Personal Compensation and Benefits ("Personnel"),
o Contractual Services and Supplies,
o Acquisition of Assets,
o Grants and Fixed Charges, and
o Other.
For purposes of our report, we break out Contractual Services and Supplies into two categories: (1) Travel,
Rent, Printing, and Supplies, and (2) Other Contractual
Services. This separation distinguishes those contractual services that directly support federal agencies from other
contractual services, which may serve as a proxy for products or services
provided by contractors or consultants. The Other
object class is used by agencies for a number of reasons, including unvouchered and undistributed expenses.
Obligations are recorded when the federal government places an order for an item or a service, awards a contract, or enters into similar transactions
that will require payments in the same or a future period.11 Object class data are easily misunderstood-in part because their apparent precision
can be misleading-since more than one object class may be used for the same service depending on how it is delivered. For example, the salary of a federal employee who constructs a building would be found under
Personal Compensation and Benefits12 whereas the labor costs involved in
the purchase of a building constructed by others would be found under Acquisition
of Assets. As this example shows, it can be difficult to rely
11 See 31 U.S.C. S: 1501.
12 This would not include the cost of materials, which would
be shown under Acquisition of Assets.
solely on object class data for information about the costs of federal
buildings. This is because object classes present obligations by items of
expense (that is, the types of goods or services purchased) without regard to the purpose of the programs for which they are used.
The e-supplement provides additional detail on obligations at lower levels
of information-by bureau and subfunction. For each of the 18 functions
shown (excluding Allowances and Undistributed Offsetting Receipts)- such as, National Defense function (050)-we provide four types of
information: (1) a pie chart showing which agencies obligated money in each function along with their relative share of obligations in the function, similar to the pie charts in appendix III of the report; (2) a table showing which agencies obligated money in each function, with additional detail
on obligations by bureau and subfunction; (3) a pie chart showing obligations by object class, which shows the relative importance of each type of expense (such as, personnel, grants) to the function, similar to the pie charts in appendix III of the report; and (4) a table showing the object class
data by bureau and subfunction.
By agency we show four types of information: (1) a pie chart showing the subfunctions in which agencies obligated money, similar to the pie charts
in appendix IV of the report; (2) a table presenting this subfunction information by bureau within the agency; (3) a pie chart showing the different object class items used by the agency, similar to the pie charts in
appendix IV of the report; and (4) a table providing the object class data by the bureau level within the agency.
These tables and figures are not available in a hard copy version. If you would like to view the e-supplement, please click on the following link (GAO-04-884SP) or access on the Internet at www.gao.gov and enter the
report number.
As agreed with your office, unless you publicly announce the contents of
this report earlier, we plan no further distribution until 30 days from its
date. At that time, we will send copies of this report to the Ranking Minority Member of the Subcommittee on Civil Service and Agency Organization, House Committee on Government Reform, and to others
upon request. This report and an e-supplement will also be available at no charge on the GAO Web site at http://www.gao.gov.
This report and the corresponding e-supplement were prepared under the
direction of Susan J. Irving, Director, Federal Budget Analysis, Strategic
Issues, who can be reached at (202) 512-9142 ([email protected]) and of
Nancy Kingsbury, Managing Director, Applied Research and Methods.
Questions may also be directed to Denise Fantone, Assistant Director,
Strategic Issues, at (202) 512-4997 ([email protected]). Alison Bonebrake
and John Mingus made key contributions to the report. John Mingus and
Alice Feldesman made key contributions to the e-supplement available on
GAO's Web site at http://www.gao.gov.
Sincerely yours,
Susan J. Irving
Director, Federal Budget Analysis
Strategic Issues
Nancy Kingsbury
Managing Director
Applied Research and Methods
Appendix I
Budget Function Classification System
Table 1: Description of the Budget Function Classification System
Function Description Subfunction
National Defense (050) Common defense and security of the United States,
Department of Defense-Military (051) including raising, equipping, and
maintaining of armed forces; development and utilization of Atomic energy
defense activities (053) weapons systems; direct compensation and benefits
paid to active military and civilian Defense-related activities (054)
personnel; defense research, development, testing, and evaluation; and
procurement, construction, stockpiling, and other activities undertaken to
directly foster national security.
International Affairs (150) Maintaining peaceful relations, commerce, and
International development and travel between the United States and the
rest of the humanitarian assistance (151) world and promoting
international security and economic development abroad. International
security assistance (152)
Conduct of foreign affairs (153)
Foreign information and exchange activities (154)
International financial programs (155)
General Science, Space, and Resources allocated to science and research
General science and basic research (251)
Technology (250) activities of the federal government that are not an
integral part of the programs conducted under any Space flight, research,
and supporting activities other function. (252)
Energy (270) Promoting an adequate supply and appropriate use Energy
supply (271) of energy to serve the needs of the economy. Energy
conservation (272)
Emergency energy preparedness (274)
Energy information, policy, and regulation (276)
Natural Resources and Developing, managing, and maintaining the nation's
Water resources (301)
Environment (300) natural resources and environment. Conservation and land
management (302)
Recreational resources (303)
Pollution control and abatement (304)
Other natural resources (306)
Agriculture (350) Promoting the economic stability of agriculture and Farm
income stabilization (351) the nation's capability to maintain and
increase agricultural production. Agricultural research and services (352)
Appendix I Budget Function Classification System
(Continued From Previous Page)
Function Description Subfunction
Commerce and Promotion and regulation of commerce Mortgage credit (371)
Housing and the
Credit (370) housing credit and deposit insurance
industries,
which pertain to collection and Postal Service (372)
dissemination of
social and economic data (unless
they are an
integral part of another function, Deposit insurance (373)
such as health);
general purpose subsidies to
business, including
credit subsidies to the housing Other advancement of
industry; and the commerce (376)
postal service fund and general fund
subsidies of
that fund.
Transportation (400) Providing for the transportation of the general
public Ground transportation (401) and/or its property, whether local or
national and regardless of the particular mode of transportation. Air
transportation (402) Included are construction of facilities; purchase of
equipment; research, testing, and evaluation; Water transportation (403)
provision of communications related to transportation; operating subsidies
for Other transportation (407) transportation facilities and industries;
and regulatory activities directed specifically toward the transportation
industry rather than toward business.
Community and Development of physical Community development
Regional facilities or financial (451)
Development (450) infrastructures designed to
promote viable
community economies. Area and regional
development (452)
Disaster relief and
insurance (453)
Education, Training, Promoting the extension of knowledge and skills,
Employment, and Social enhancing employment and employment Services (500)
opportunities, protecting workplace standards, and
providing services to the needy.
Elementary, secondary, and vocational education (501)
Higher education (502)
Research and general education aids (503)
Training and employment (504)
Other labor services (505)
Social services (506)
Health (550) Programs other than Medicare Health care services (551)
whose basic
purpose is to promote physical
and mental health,
including the prevention of Health research and training
illness and accidents. (552)
Consumer and occupational
health and safety
(554)
Medicare (570) Federal hospital insurance and federal Medicare (571)
supplementary medical insurance, along with
general fund subsidies of these funds and
associated offsetting receipts.
Appendix I Budget Function Classification System
(Continued From Previous Page)
Function Description Subfunction
Income Security (600) Support payments (including associated
administrative expenses) to persons for whom no current service is
rendered. Included are retirement, disability, unemployment, welfare, and
similar programs, except for social security and income security for
veterans, which are in other functions.
General retirement and disability insurance (excluding Social Security)
(601)
Federal employee retirement and disability (602)
Unemployment compensation (603)
Housing assistance (604)
Food and nutrition assistance (605)
Other income security (609) Veterans Benefits and Programs providing
benefits and services, the Income security for veterans (701)
Social Security Federal old age and survivors and Social Security
(650) disability (651)
insurance trust funds, along with general
fund
subsidies of these funds and associated
offsetting
collections.
Services (700) eligibility for which is related to prior military service,
but the financing of which is not an integral part of Veterans education,
training, and rehabilitation the costs of national defense. (702)
Hospital and medical care for veterans (703)
Veterans housing (704)
Other veterans benefits and services (705)
Administration of Justice Programs to provide judicial services, police
Federal law enforcement activities (751)
(750) protection, law enforcement (including civil rights), rehabilitation
and incarceration of criminals, and the Federal litigative and judicial
activities (752) general maintenance of domestic order. Federal
correctional activities (753)
Criminal justice assistance (754)
General Government (800) General overhead cost of the federal government,
including legislative and executive activities; provision of central
fiscal, personnel, and property activities; and provision of services that
cannot reasonably be classified in any other major function.
Legislative functions (801)
Executive direction and management (802)
Central fiscal operations (803)
General property and records management (804)
Central personnel management (805)
General purpose fiscal assistance (806)
Other general government (808)
Deductions for offsetting receipts (809)
Appendix I Budget Function Classification System
(Continued From Previous Page)
Function Description Subfunction
Net Interest (900) Transactions which directly give rise to interest
Interest on Treasury debt securities (gross) (901) payments or income
(lending) and the general shortfall or excess of outgo over income arising
out Interest received by on-budget trust funds (902) of fiscal, monetary,
and other policy considerations and leading to the creation of
interest-bearing debt Interest received by off-budget trust funds (903)
instruments (normally the public debt).
Other interest (908)
Other investment income (909)
Allowances (920) Assigned by OMB Allowances (921-929)
Undistributed Offsetting Offsetting receipts that are not included as
Receipts (950) deductions from outlays in the applicable function or
subfunction, above, and are thus "undistributed."
Employer share, employee retirement (on-budget) (951)
Employer share, employee retirement (off-budget) (952)
Rents and royalties on the Outer Continental Shelf (953)
Sale of major assets (954)
Other undistributed offsetting receipts (959)
Multifunction Account (999) Used for accounts that involve two or more
major functions.
Sources: OMB Circular No. A-11 (2003) and GAO/AIMD-97-95.
Appendix II
Object Classification System
Table 2: Description of the Object Classification System
Major Object
Classes Description Smaller Object Classes
Personal Compensation directly related to duties performed for the
Personnel Compensation (11.0)
Compensation and government by federal civilian employees, military
personnel,
Benefits (10) and non-federal personnel. Benefits for currently employed
Personnel Benefits (12.0)
federal civilian, military, and certain non-federal personnel.
Benefits for former officers and employees or their supervisors Benefits
for Former Personnel (13.0)
that are based (at least in part) on the length of service to the
federal government.
Contractual Services and Supplies (20)
Purchases of contractual services and supplies, such as travel and
transportation costs of government employees and other persons.
Transportation of things (including animals). Payments for the use of
land, structures, or equipment owned by others and charges for
communication and utility services. Printing and reproduction obtained
from the private sector or from other federal entities. Other contractual
services for advisory and assistance, other services, purchases of goods
and services from government accounts, operation and maintenance of
facilities, research and development contracts, medical care payments to
contractors, operation and maintenance of equipment, subsistence and
support of persons. In addition, includes purchase of supplies and
materials.
Travel and Transportation of Persons (21.0)
Transportation of Things (22.0)
Rent, Communications, and Utilities (23.0)
Printing and Reproduction (24.0)
Other Contractual Services (25.0)
Supplies and Materials (26.0)
Acquisition of Assets Purchases of personal property of a durable nature
and the Equipment (31.0)
(30) initial installation of equipment when performed under contract.
Purchase and improvement of land and interest in lands, Land and
Structures (32.0) buildings and other structures, nonstructural
improvements of land, and fixed equipment when acquired under contract.
Also Investments and Loans (33.0) includes purchases of: (1) stocks,
bonds, debentures, and other securities that are neither U.S. government
securities nor securities of wholly-owned federal government enterprises,
(2) temporary or permanent investments, and (3) interest accrued at the
time of purchase and premiums paid on all investments.
Grants and Fixed Charges (40) Cash payments to states, other political
subdivisions, corporations, associations, and individuals for grants,
subsidies, gratuities and other aid. Contributions to foreign countries,
international societies, commissions, proceedings or projects. Taxes
imposed by state and local taxing authorities where the federal government
has consented to taxation and payments in lieu of taxes. Benefit payments
from the social insurance and federal retirement trust funds and payments
for losses and claims including those under the Equal Access to Justice
Act. Payments to creditors, distribution of earnings, and interest
payments under lease-purchase contracts for construction of buildings.
Payments of amounts previously collected by the government.
Grants, Subsidies, and Contributions (41.0)
Insurance Claims and Indemnities (42.0)
Interest and Dividends (43.0)
Refunds (44.0)
Appendix II
Object Classification System
(Continued From Previous Page)
Major Object
Classes Description Smaller Object Classes
Other (90) Charges that may be incurred lawfully for confidential purposes
Unvouchered (91.0) and are not subject to detailed vouchering or
reporting. Charges that cannot be distributed. Annual limitation on
Undistributed (92.0) administrative or other expenses for revolving and
trust funds. Financial interchanges between federal government accounts
Limitation on Expenses (93.0) that are not in exchange for goods and
services. Includes the sum for an object class entry below the reporting
threshold of Financial Transfers (94.0) $500 thousand and the sum of all
the below thresholds rounds to $1 million or more. Below Reporting
Threshold (99.5)
Source: OMB Circular No. A-11 (2003).
Appendix III
Budget Functions by Agency and Object Class
The following pie charts (figures
2-41) show the percent of fiscal year 2003 obligations charged.
National Defense (050)
Figure 2: Fiscal Year 2003 National Defense (050) Obligations by Agency
0.4 All other
Defense
Source: GAO analysis.
Figure 3: Fiscal Year 2003 National Defense (050) Obligations by Object
Class
0.3 All other
Acquisition of assets
Other contractual services
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
International Affairs (150)
Figure 4: Fiscal Year 2003 International Affairs (150) Obligations by Agency
0.9
agencies
Figure 5: Fiscal Year 2003 International Affairs (150) Obligations by
Object Class
2.2 All other
Travel, rent, printing and supplies Personnel
Grants, insurance
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
General Science, Space, and Technology (250)
Figure 6: Fiscal Year 2003 General Science, Space, and Technology (250)
Obligations by Agency
Figure 7: Fiscal Year 2003 General Science, Space, and Technology (250)
Obligations by Object Class
Travel, rent, printing and supplies
services
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Energy (270)
Figure 8: Fiscal Year 2003 Energy (270) Obligations by Agency
Source: GAO analysis.
Figure 9: Fiscal Year 2003 Energy (270) Obligations by Object Class
Acquisition of assets
services
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Natural Resources and Environment (300)
0.5
Source: GAO analysis.
Figure 11: Fiscal Year 2003 Natural Resources and Environment (300)
Obligations by Object Class
0.5 All other
Acquisition of assets
Travel, rent, printing and supplies
Other contractual services
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Agriculture (350)
0.3 Agriculture
Source: GAO analysis.
Figure 13: Fiscal Year 2003 Agriculture (350) Obligations by Object Class
Personnel
Travel, rent, printing and supplies
Grants, insurance
claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Commerce and Housing Credit (370)
All other Independent agencies
Source: GAO analysis.
Figure 15: Fiscal Year 2003 Commerce and Housing Credit (370) Obligations
by Object Class
Acquisition of assets
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Transportation (400)
1.6
Source: GAO analysis.
Figure 17: Fiscal Year 2003 Transportation (400) Obligations by Object
Class
Travel, rent, printing and supplies
Personnel services
interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Community and Regional Development (450)
2.6
Source: GAO analysis.
Figure 19: Fiscal Year 2003 Community and Regional Development (450)
Obligations by Object Class
2.0 All other
Other contractual
services Grants, insurance
claims and indemnities,
interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Education, Training, Employment, and Social Services (500)
1.4 Health and Human Services
Education
Source: GAO analysis.
Figure 21: Fiscal Year 2003 Education, Training, Employment, and Social
Services (500) Obligations by Object Class
1.4 All other
Other contractual services
Grants, insurance claims
and indemnities,
interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Health (550)
2.5
Health and
Figure 23: Fiscal Year 2003 Health (550) Obligations by Object Class
1.0 All other
Other
contractual services
Grants, insurance claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Medicare (570)
Health and Human Services
Source: GAO analysis.
Figure 25: Fiscal Year 2003 Medicare (570) Obligations by Object Class
1.4
Grants, insurance claims
and indemnities,
interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Income Security (600)
Office of Personnel Management
0.2
Health and Human Services
Defense Social Security Administration
Source: GAO analysis.
and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Income Support: Retirement and Disability
* A subcomponent of Income Security (600)
0.6
Management
Source: GAO analysis.
Figure 29: Fiscal Year 2003 Income Support: Retirement and Disability
Obligations by Object Class
Grants, insurance claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Other Income Support
* A subcomponent of Income Security (600)
0.1 Health and Human Services Social Security Administration
Source: GAO analysis.
Figure 31: Fiscal Year 2003 Other Income Support Obligations by Object
Class
All other
and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Social Security (650)
Social Security Administration
Source: GAO analysis.
Figure 33: Fiscal Year 2003 Social Security (650) Obligations by Object
Class
3.2 All other
Appendix III Budget Functions by Agency and Object Class
Veterans Benefits and Services (700)
0.9 Veterans Affairs
Source: GAO analysis.
Figure 35: Fiscal Year 2003 Veterans Benefits and Services (700)
Obligations by Object Class
Acquisition of assets Other contractual services
Travel, rent,
printing and supplies
Grants, insurance claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Administration of Justice (750)
2.3
Source: GAO analysis.
Figure 37: Fiscal Year 2003 Administration of Justice (750) Obligations by
Object Class
0.1 All other
Appendix III Budget Functions by Agency and Object Class
General Government (800)
2.2
Source: GAO analysis.
Figure 39: Fiscal Year 2003 General Government (800) Obligations by Object
Class
2.2 Acquisition of assets
Travel, rent, printing and supplies
Personnel Grants, insurance claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix III Budget Functions by Agency and Object Class
Net Interest (900)
Treasury
Source: GAO analysis.
Figure 41: Fiscal Year 2003 Net Interest (900) Obligations by Object Class
Grants, insurance claims
and indemnities,
interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object Class
The following pie charts (figures
42-97) show the percent of fiscal year 2003 obligations charged.
Department of Agriculture
Source: GAO analysis.
Figure 43: Fiscal Year 2003 Department of Agriculture Obligations by
Object Class
claims and Acquisition of and dividends assets
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Commerce
Other advancement of commerce (376)
Source: GAO analysis.
0.7
Figure 45: Fiscal Year 2003 Department of Commerce Obligations by Object Class
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Defense
All other
Source: GAO analysis.
Figure 47: Fiscal Year 2003 Department of Defense Obligations by Object
Class
Grants, insurance claims and indemnities, interest and dividends
services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Education
1.4
Elementary,
and education (501)
Source: GAO analysis.
Figure 49: Fiscal Year 2003 Department of Education Obligations by Object
Class
All other
and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Energy
2.5
Atomic energy (053)
Source: GAO analysis.
Figure 51: Fiscal Year 2003 Department of Energy Obligations by Object
Class
1.7
Acquisition of assets
Other contractual services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Health and Human Services
2.2 All other
Figure 53: Fiscal Year 2003 Department of Health and Human Services
Obligations by Object Class
2.0 All other
Other contractual
Grants, insurance claims
and indemnities,
interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Homeland Security
All other
Source: GAO analysis.
Figure 55: Fiscal Year 2003 Department of Homeland Security Obligations by
Object Class
0.2 All other
Acquisition of assets
Travel, rent, printing and supplies
Other contractual services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Housing and Urban Development
0.3
Housing
Figure 57: Fiscal Year 2003 Department of Housing and Urban Development
Obligations by Object Class
0.5 All other
Acquisition of assets Other contractual services
Grants, insurance claims
and indemnities,
interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of the Interior
0.4 Area and regional development (452)
Source: GAO analysis.
Figure 59: Fiscal Year 2003 Department of the Interior Obligations by
Object Class
0.9 All other
Acquisition of assets
Travel, rent, printing and supplies
Other contractual services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Justice
Defense-related activities (054)
Federal law enforcement
Source: GAO analysis.
Figure 61: Fiscal Year 2003 Department of Justice Obligations by Object
Class
Acquisition of assets
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Labor
Unemployment
Source: GAO analysis.
Figure 63: Fiscal Year 2003 Department of Labor Obligations by Object
Class
All other
and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of State
0.6
Conduct of
Source: GAO analysis.
Figure 65: Fiscal Year 2003 Department of State Obligations by Object
Class
0.5 All otherAcquisition of assets
Travel, rent, printing and supplies
Other contractual services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Transportation
All other
Ground
Source: GAO analysis.
Figure 67: Fiscal Year 2003 Department of Transportation Obligations by
Object Class
services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of the Treasury
2.2 All other
Figure 69: Fiscal Year 2003 Department of the Treasury Obligations by
Object Class
1.7 All other
Grants, insurance claims
and indemnities,
interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Department of Veterans Affairs
2.4
Income security
Source: GAO analysis.
Figure 71: Fiscal Year 2003 Department of Veterans Affairs Obligations by
Object Class
Acquisition of assets
Other contractual services
Travel, rent, printing and supplies
Grants, insurance claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Environmental Protection Agency
Pollution control and abatement (304)
Source: GAO analysis.
Figure 73: Fiscal Year 2003 Environmental Protection Agency Obligations by
Object Class
0.9 All other Travel, rent, printing and supplies
Personnel
Grants, insurance claims and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Executive Office of the President
0.1 and humanitarian assistance (151)
Source: GAO analysis.
Figure 75: Fiscal Year 2003 Executive Office of the President Obligations
by Object Class
1.2 All other
Travel, rent, printing and supplies
Other contractual services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
General Services Administration
0.1
General property and records
Source: GAO analysis.
Figure 77: Fiscal Year 2003 General Services Administration Obligations by
Object Class
0.2All other
Acquisition of assets
Grants, insurance claims and
indemnities, interest and dividends
Personnel
Other contractual Travel, rent, printing services and supplies
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
National Aeronautics and Space Administration
and supporting activities (252)
Source: GAO analysis.
Figure 79: Fiscal Year 2003 National Aeronautics and Space Administration
Obligations by Object Class
Acquisition of assets
Travel, rent, printing and supplies
Grants, insurance claims and indemnities, interest and dividends
Personnel Other contractual services
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
National Science Foundation
1.2 General science and basic research (251)
Source: GAO analysis.
Figure 81: Fiscal Year 2003 National Science Foundation Obligations by
Object Class
0.9 All other Other contractual services
Grants, insurance
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Nuclear Regulatory Commission
Energy information, policy, and regulation (276)
Source: GAO analysis.
Figure 83: Fiscal Year 2003 Nuclear Regulatory Commission Obligations by
Object Class
1.8 All other
Appendix IV
Agencies by Budget Subfunction and Object
Class
Office of Personnel Management
Federal employee retirement and disability (602)
Source: GAO analysis.
Figure 85: Fiscal Year 2003 Office of Personnel Management Obligations by
Object Class
0.1
and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Postal Service
Postal Service (372)
Source: GAO analysis.
Figure 87: Fiscal Year 2003 Postal Service Obligations by Object Class
1.5
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Small Business Administration
Source: GAO analysis.
Figure 89: Fiscal Year 2003 Small Business Administration Obligations by
Object Class
2.2
Grants, insurance
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Social Security Administration
Source: GAO analysis.
Figure 91: Fiscal Year 2003 Social Security Administration Obligations by
Object Class
All other
and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Independent Agencies
Deposit insurance (373) General retirement
(excluding
Other advancement of commerce (376)
Source: GAO analysis.
Figure 93: Fiscal Year 2003 Independent Agencies Obligations by Object
Class
and indemnities, interest and dividends
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Legislative Branch
1.4
Legislative
Figure 95: Fiscal Year 2003 Legislative Branch Obligations by Object Class
Source: GAO analysis.
Appendix IV
Agencies by Budget Subfunction and Object
Class
Judicial Branch
Federal litigative and judicial activities (752)
0.7
Source: GAO analysis.
Figure 97: Fiscal Year 2003 Judicial Branch Obligations by Object Class
1.9
Source: GAO analysis.
Appendix V
Agencies and Bureaus Obligating $2 Billion or More in Fiscal Year 2003 in Selected Object Classes
Table 3: Personnel-Agencies and Bureaus Obligating $2 Billion or More in
the Personal Compensation and Benefits Object Class
Dollars in millions Department of the Treasury Internal Revenue Service 6,941
Agency Bureau Obligations
Department of Agriculture Forest Service 2,507
Department of Defense Military Personnel 103,293
Military Retirement 17,928
Operation and Maintenance 34,459
Research, Development, Test,
and
Evaluation 2,543
Retiree Health Care 18,952
Revolving and Management Funds 14,643
Border and Transportation 7,733
Department of Homeland Security
Security United States Coast Guard 3,380
Department of Justice Federal Bureau of Investigation 2,623
Federal Prison System 2,847
Legal Activities and U.S. 2,385
Marshals
Department of State Administration of Foreign 2,882
Affairs
Department of Federal Aviation Administration
Transportation 5,912
Department of Veterans Medical Programs
Affairs 13,649
Courts of Appeals, District
Judicial Branch Courts, and other
Judicial Services 2,827
Office of Personnel Office of Personnel Management
Management 28,744
Postal Service Postal Service 50,428
Social Security Social Security Administration
Administration 4,521
Source: GAO analysis of OMB data.
Appendix V
Agencies and Bureaus Obligating $2 Billion
or More in Fiscal Year 2003 in Selected
Object Classes
Table 4: Travel, Rent, Printing and Supplies-Agencies and Bureaus
Obligating $2 Billion or More in the Travel, Rent, Printing, and Supplies
Object Class
Dollars in millions
Agency Bureau Obligations
Department of Defense Military Personnel 6,179
Operation and Maintenance 59,332
Revolving and Management Funds 57,226
Procurement 3,462
Department of Veterans Medical Programs
Affairs 6,498
Postal Service Postal Service 9,355
General Services Real Property Activities 3,809
Administration Supply and Technology Activities 2,873
Department of Agriculture Farm Service Agency 5,555
Source: GAO analysis of OMB data.
Table 5: Other Contractual Services-Agencies and Bureaus Obligating $2
Billion or More in the Other Contractual Services Object Class
Dollars in millions
Agency Bureau Obligations
Department of Defense Operation and Maintenance 90,700
Research, Development, Test, and
Evaluation 60,516
Revolving and Management Funds 30,547
Procurement 9,437
Corps of Engineers-Civil Works 7,279
Department of Homeland Border and Transportation Security 6,089
Security United States Coast Guard 2,113
Emergency Preparedness and Response 4,494
Department of Justice Legal Activities and U.S. Marshals 2,249
Department of State Administration of Foreign Affairs 3,883
Department of Transportation Federal Aviation Administration 2,894
Federal Highway Administration 30,989
Department of Veterans Medical Programs
Affairs 4,504
Office of Personnel Office of Personnel Management
Management 27,968
Appendix V
Agencies and Bureaus Obligating $2 Billion
or More in Fiscal Year 2003 in Selected
Object Classes
(Continued From Previous Page)
Dollars in millions National Aeronautics and Space Administration
Agency Bureau Obligations
Postal Service Postal Service 2,871
Social Security Social Security Administration
Administration 9,440
General Services Real Property Activities 3,210
Administration Supply and Technology 10,123
Activities
Department of Energy Energy Programs 4,779
Environmental and Other
Defense
Activities 6,190
National Nuclear Security 8,761
Administration
Power Marketing Administration 2,605
Centers for Medicare and
Department of Health and Medicaid
Human Services Services 2,975
National Institutes of Health 6,308
Department of the Interior Minerals Management Service 2,019
Environmental Protection Environmental Protection
Agency
Agency 2,179
Executive Office of the Executive Office of the
President
President 2,041
Independent Agencies Military Sales Program 11,751
Tennessee Valley Authority 3,912
National Aeronautics and Space
Administration 10,919
Source: GAO analysis of OMB data.
Table 6: Acquisition of Assets-Agencies and Bureaus Obligating $2 Billion
or More in the Acquisition of Assets Object Class
Dollars in millions
Agency Bureau Obligations
Department of Agriculture Farm Service Agency 10,741
Department of Defense Operation and Maintenance 11,523
Revolving and Management Funds 3,430
Procurement 62,978
Military Construction 7,961
Postal Service Postal Service 2,124
Source: GAO analysis of OMB data.
Appendix V
Agencies and Bureaus Obligating $2 Billion
or More in Fiscal Year 2003 in Selected
Object Classes
Table 7: Grants, Insurance Claims and Indemnities, Interest and Dividends-
Agencies and Bureaus Obligating $2 Billion or More in the Grants,
Insurance Claims and Indemnities, Interest and Dividends Object Class
Dollars in millions
Agency Bureau Obligations
Department of Agriculture Farm Service Agency 19,647
Food and Nutrition Service 40,652
Foreign Agricultural Service 2,008
Risk Management Agency 2,110
Department of Defense Military Retirement 35,396
Border and Transportation 2,616
Department of Homeland Security
Security Emergency Preparedness and 7,507
Response
Departmental Management 3,415
Department of Justice Office of Justice Programs 4,273
Department of Transportation Federal Aviation Administration 3,472 Federal
Transit Administration 7,904 Social Security Administration Social Security
Administration 518,485
Department of Veterans Benefits Programs
Affairs 34,709
Department of the Treasury Internal Revenue Service 41,728
Federal Financing Bank 4,093
Financial Management Service 12,346
Interest on the Public Debt 318,148
Office of Personnel Office of Personnel Management
Management 50,393
Department of Health and Centers for Medicare and Medicaid
Human Services Services 537,724
National Institutes of Health 19,825
Administration for Children and 45,274
Families
Centers for Disease Control and
Prevention 2,591
Health Resources and Services
Administration 6,231
Substance Abuse and Mental Health
Services Administration 2,833
Environmental Protection Environmental Protection Agency
Agency 4,997
Appendix V
Agencies and Bureaus Obligating $2 Billion
or More in Fiscal Year 2003 in Selected
Object Classes
(Continued From Previous Page)
Dollars in millions
Agency Bureau Obligations
Independent Agencies Agency for International 4,236
Development
Federal Communications 6,535
Commission
International Security 10,744
Assistance
Railroad Retirement Board 9,394
Department of Education Federal Student Aid 30,317
Office of Elementary and
Secondary
Education 21,681
Office of Postsecondary 2,319
Education
Office of Special Education and
Rehabilitative Services 12,536
Community Planning and
Department of Housing and Development 8,888
Urban Development Housing Programs 5,448
Public and Indian Housing 23,674
Programs
Department of Labor Employment Standards 4,216
Administration
Employment and Training 65,014
Administration
Pension Benefit Guaranty
Corporation 2,273
National Science Foundation National Science Foundation 5,052
Source: GAO analysis of OMB data.
Appendix VI
Glossary of Key Terms
Account A separate financial reporting unit for budget, management, and/or accounting purposes. All budgetary transactions are recorded in accounts, but not all accounts are budgetary in nature (that is, some accounts do not directly affect the budget but are used purely for accounting purposes).
Budget (and off-budget) accounts are used to record all transactions within
the budget (or off-budget), whereas other accounts (such as deposit fund,
credit financing, and foreign currency accounts) are used for accounting purposes connected with funds that are nonbudgetary in nature. The Budget Enforcement Act defines "account" as an item for which appropriations are made in any appropriation act; for items not provided
for in appropriation acts, "account" means an item for which there is a designated budget account identification code number in the President's budget.
Agency Mission Responsibility assigned to a specific agency for meeting national needs.
An agency mission expresses the purpose of the programs of that agency and its
component organizations. National needs are generally described in the
context of the budget functional classification system as major functions, while agency missions are generally described in the context of subfunctions.
Fiscal Year Any yearly accounting period, regardless of its relationship to a calendar
year. The fiscal year for the federal government begins on October 1 of each year and ends on September 30 of the following year; it is designated by the calendar
year in which it ends. For example, fiscal
year 1990 began October 1,1989, and ended September 30,1990. (Prior to fiscal year 1977, the federal fiscal year began on July 1 and ended on June 30.)
Functional Classification (Budget Functions)
A system of classifying budget resources so that budget authority, outlays, receipts, and tax expenditures can be related to the national needs being addressed. Each concurrent resolution on the budget allocates these
budgetary resources-except receipts and tax expenditures-among the various functions in the budget.
Each budget account is generally placed in the single budget function (for
example, National Defense or Health) that best reflects its major purpose, an important national need. A function may be divided into two or more
Appendix VI Glossary of Key Terms
subfunctions, depending upon the complexity of the national need
addressed.
National Needs Broad areas providing a coherent and comprehensive basis for analyzing
and understanding the budget in terms of the end purposes being served without regard to the means that may be chosen to meet those purposes. The budget resources devoted to meeting national needs are classified according to budget functions. In this way, budget authority and outlays of on-budget and off-budget federal entities, loan guarantees, and tax
expenditures can be grouped in terms of the national needs being addressed.
Object Classification A uniform classification identifying the obligations of the federal
government by the types of goods or services purchased (such as personnel
compensation, supplies and materials, and equipment) without regard to the agency involved or the purpose of the programs for which they are used. If the obligations are in a single object classification category, the
classification is identified in the Program and Financing Schedule in the
Budget of the United States Government. For the activities distributed among two or more object classification categories, the budget has a
separate object classification schedule to show
the distribution of the obligations by object classification.
Obligations Incurred Amounts of orders placed, contracts awarded, and similar transactions
during a given period that will require payments during the same or
a future
period. Such amounts will include outlays for which obligations have not been previously recorded and will reflect adjustments for differences
between obligations previously recorded and actual outlays to liquidate those obligations.
Gross Obligations An expression of an agency's total financial commitments for a given period. Gross obligations portray the relative size of an organization, without regard to the type of underlying budgetary resource or when
resulting outlays may occur. When aggregated, gross obligations may overstate both
department and governmentwide totals because an agency's obligations may include services provided to another agency for which they
will be reimbursed. When reimbursement is received, these funds can be
Appendix VI Glossary of Key Terms
used to incur new obligations as long as the budget authority has not
expired.
GAO's Mission The General Accounting Office, the audit, evaluation and investigative arm of
Congress, exists to support Congress in meeting its constitutional responsibilities and to
help improve the performance and accountability of the federal government
for the American people. GAO examines the use of public funds; evaluates federal
programs and policies; and provides
analyses, recommendations, and other assistance to help
Congress make informed oversight, policy, and funding decisions. GAO's commitment to good government is reflected in its core values of
accountability, integrity, and reliability.
Obtaining Copies of GAO Reports and Testimony
The fastest and easiest way to obtain copies of GAO documents at no cost is
through the Internet. GAO's Web site
(www.gao.gov) contains abstracts and fulltext files of current reports and
testimony and an expanding archive of older products. The Web
site features a search engine to help you locate documents using key
words and phrases. You can print these documents in their
entirety, including charts and other graphics.
Each day, GAO issues a list of newly released reports, testimony, and
correspondence.
GAO posts this list, known as "Today's Reports," on its Web site
daily. The list contains links to the full-text document files. To have
GAO e-mail this list to you every afternoon, go to
www.gao.gov and select "Subscribe to e-mail alerts" under
the "Order GAO Products" heading.
Order by Mail or Phone The first copy of each printed report is
free. Additional copies are $2 each. A check or money order should be
made out to the Superintendent of Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more copies mailed to a single
address are discounted 25 percent. Orders should be sent to:
U.S. General Accounting Office 441 G Street NW, Room LM
Washington, D.C. 20548
To order by
Phone: Voice: (202) 512-6000 TDD: (202) 512-2537 Fax: (202) 512-6061
To Report Fraud, Contact:
Web site:
www.gao.gov/fraudnet/fraudnet.htmWaste, and Abuse in E-mail: [email protected]
Federal Programs
Automated answering system: (800) 424-5454 or (202) 512-7470
Public Affairs Jeff Nelligan, Managing Director,
[email protected] (202) 512-4800 U.S. General Accounting Office, 441 G
Street NW, Room 7149 Washington, D.C. 20548
Presorted Standard
Postage & Fees Paid
GAO
Permit No. GI00
United States
General Accounting Office
Washington, D.C. 20548-0001
Official Business
Penalty for Private Use $300
Address Service Requested
*** End of document. ***