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OMB to Agencies: Give IG Discretion in Some Sequester Cuts

BudgetGlassesThe Office of Management and Budget has advised federal agencies to consult with their inspectors general on how sequestration budget cuts could impact their funding.

Agency heads hold final responsibility for implementing the sequester cuts, then IGs have that same responsibility for determining how to utilize their authorized budgets, according to an April 4 memo obtained by GovExec.

That memo, signed by OMB Controller Danny Werfel, also has directed agencies to give IGs full discretion in deciding how to implement the cuts if IG funding exists as its own program, project or activity, known as a PPA.

If IG funds are intermingled with other agency funds in a certain PPA, OMB says agency leaders should consider using the average percentage reduction for that PPA’s other funds as a baseline for cutting IG funds.

“In such cases, the agency head should then defer as appropriate to the IG in determining how the IG manages the reductions,” the memo says.

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