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Incentivize Orginzational Savings

For funds not desiginated as no year funds, there is no incentive or hold back these funds. Usually they are spend with abandon in the last 60 days to stock up on items or replace items not worn out. If an agency expends less than 97.5% of authorized funds and mets targeted goals, 1/4 of the savings are designated as no year funds and credited back to the agency. If operationals goals are not met, the reduction below authorized funding is subrated from the nexts fiscal year appropiations. In budget submissions to OMB the agency can make a business case while this amount should not be offset.


No year funds credited back to an agency, must be earmarked for expenditure with 4 years. This provides a source for capital projects or programs that are experemental or cutting edge that might not be funded through the one year process and provide a reason to pare back funds through savings discovered during the year,



Idea No. 17030