Beginning with the agency reporting requirements for
information supporting the FY 1996 budget request,
exhibits 43a, 43b, and 43c were replaced with a single
exhibit -- exhibit 43. In practical terms this means that
information technology budget obligations are
reported for the actual 1994 values in the new format.
Agencies that obligated more than $50 million in any
of the years Past Year (PY), Current Year (CY), or
Budget Year (BY) for information technology
activities were required to submit a report in the
format of exhibit 43 on obligations for information
technology for the agency as a whole as opposed to
the older exhibit 43 which required submission from
any agency which a) required obligations that
exceeded $25 million over the information systems
life cycle, or b) exceeded $10 million in any one year.
The section within the old exhibit 43 specifying
definitions, section 43.2, was replaced with a reference
to section 111 of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 759)
and applicable GSA regulations (41 CFR chapter 21).
Dollar amounts presented in the new exhibit 43 are
shown in millions of dollars as opposed to the older
exhibit 43 which had figures in thousands of dollars.
The due date for the submission of exhibit 43 was
moved from the dual submissions in FY 1995 to a
single submission following the President's
submission of the budget. The section of the older
exhibit 43 specifying materials required to be
submitted was redacted and the format of the report
was simplified in the new exhibit 43. The new exhibit
43 added a section stressing thoughtful analysis for
investment in information systems, section (b).
Materials required to support the FY 1996 budget
request are the first to use the new format for exhibit
43. This format divides the IT budget into 9
categories, provides a summary figure, and totals for
work years. The Equipment category is divided into
two components; capital purchases and other
equipment purchases/leases. The Software category
is likewise divided into two components; capital
purchases and other software purchases/leases. The
remainder of the categories; Services, Support
Services, Supplies, Personnel, Intragovernmental
Payments, and Intragovernmental Collections, are
not divided into components. One additional category,
Other (DoD use only) has two components, capital
purchases and other purchases.
There has been some confusion over what should be
included in Intragovernmental payments,
Intragovernmental collections, Services, and
Support Services. Agency difficulties in accounting
and reporting for intragovernmental payments and
collections, as well as potential differences in
agencies' identification of intragovernmental IT
costs, result in a substantial gap between reported
intragovernmental payments and reported
intragovernmental collections. The discrepancy
between the intragovernmental payments and
collections has gotten so severe at this time that OMB
has decided to make the assumption that the sum of
the payments and collections in theory should be equal
to zero. For this reason this year's report contains
governmentwide totals without including the
As a result of the increase in required obligation level,
21 fewer agencies submitted exhibit 43 to OMB in the
materials required to support the FY 1996 budget
request than for the FY 1995 budget request.
Historical Changes. Beginning with the materials
required to support the FY 1991 budget request, the
reporting threshold for the old version of Exhibit 43
was raised to $2.0 million (from $1.0 million) for any
one year. As a result, ten small agencies no longer had
to report this data. In the materials required to support
the FY 1990 budget request, the sum of these ten
agencies' requests equaled $14 million. Moreover,
due to the organization changes brought on by the
Financial Institutions Reform, Recovery, and
Enforcement Act of 1989, there was no report for the
Federal Home Loan Bank Board (FHLBB) in its old or
reconstituted form. In the materials required to
support the FY 1990 budget request, FHLBB had
requested spending of $14 million.
In materials required to support the FY 1990 budget
request, the Department of Defense (DoD) reports
changed from previous years. The Conference Report
accompanying the FY 1990 DoD appropriations
capped DoD spending on Automated Data Processing
(ADP) through Operations and Maintenance accounts.
Complying with the report, DoD reexamined its
definitions for spending on "ADP equipment" and
discovered its reported spending was understated by
nearly $650 million. Since then, DoD has consistently
applied the corrected definitions.
The operating budget estimates are based on total expenditures for purchases of goods and services by the Federal sector, as published in the Special Analysis of "Federal Transactions in the National Income and Product Accounts" (NIPA) or as promulgated by OMB's Budget Analysis and Systems Division.(10) It should be noted that this total includes some agencies such as the United States Postal Service and the ten small agencies that are not included in the totals for IT spending. OMB no longer publishes the agencyspecific NIPA data that makes up the totals for the Federal operating budget in the NIPA. As a result, the total Federal operating budget has been used for all fiscal years reported.
10. National Income and Product Account Presentation, pages 267270, Budget of the United States Government, Fiscal Year 1996 -- Analytic Perspectives and OMB Budget Analysis and Systems Division.