[House Document 110-7]
[From the U.S. Government Printing Office]




110th Congress, 1st Session - - - - - - - - - - - - House Document 110-7

 
     A REQUEST FOR SUPPLEMENTAL APPROPRIATIONS FOR FISCAL YEAR 2007

                               __________

                                MESSAGE

                                  from

                   THE PRESIDENT OF THE UNITED STATES

                              transmitting

 A REQUEST FOR THE DEPARTMENT OF HOMELAND SECURITY NEEDED TO LIQUIDATE 
      PRIOR-YEAR OBLIGATIONS FOR CONTRACTS AND GRANTS MADE BY THE 
                 TRANSPORTATION SECURITY ADMINISTRATION




  January 11, 2007.--Message and accompanying papers referred to the 
         Committee on Appropriations and ordered to be printed
                                           The White House,
                                      Washington, January 10, 2007.
Hon. Nancy P. Pelosi,
Speaker of the House of Representatives,
Washington, DC.
    Dear Madam Speaker: I ask the Congress to consider the 
enclosed request for the Department of Homeland Security. The 
request is needed to liquidate prior-year obligations for 
contracts and grants made by the Transportation Security 
Administration. The request is fully offset by transferring 
unobligated balances and would not increase spending or the 
deficit.
    The details of this request are set forth in the enclosed 
letter from the Director of the Office of Management and 
Budget. I concur with his comments and observations.
            Sincerely,
                                                    George W. Bush.
                [Estimate No. 1, 110th Cong., 1st Sess.]

                 Executive Office of the President,
                           Office of Management and Budget,
                                  Washington, DC, January 10, 2007.
The President,
The White House.
    Submitted for your consideration is a request by the 
Department of Homeland Security (DHS) to seek legislative 
authority to liquidate $195 million in prior-year obligations 
for contracts and grants made by the Transportation Security 
Administration (TSA). This would resolve an Antideficiency Act 
(ADA) violation reported to you and the Congress on December 3, 
2006. This proposal would not affect FY 2007 budget authority 
or the deficit.
    The DHS request seeks authority to transfer $195 million in 
unobligated balances from TSA's Aviation Security account ($175 
million) and Transportation Security Support account ($20 
million) to its Expenses account. These transfers will be used 
to liquidate obligations incurred against funds appropriated in 
fiscal years 2002 and 2003. The request is fully offset through 
transfers of existing unobligated balances. The request would 
ensure that adequate resources are available in the appropriate 
account to meet anticipated expenditures from existing 
obligations for contracts and grants.
    The ADA violation was uncovered this summer as a result of 
manual reconciliation efforts by TSA. During the migration of 
TSA financial systems from the Department of Transportation to 
DHS in March 2003, erroneous journal voucher entries resulted 
in an underreporting of obligations. To date, DHS has 
identified no evidence that the violation was intentional. DHS 
Secretary Chertoff has requested the DHS Inspector General 
conduct a formal investigation of the violation, which is 
ongoing, to identify the responsible individuals, if 
appropriate.
    Uncovering this accounting error is part of TSA's 
implementation of a comprehensive financial management review 
and corrective action plan begun over the past year. TSA has 
instituted a series of internal control processes to ensure 
data integrity and the accuracy of reported financial 
information. Instituting these internal control processes will 
reduce the possibility of a deficiency violation recurring in 
the future. OMB will continue to monitor implementation of 
TSA's corrective action plans against agreed upon milestones 
and will use the President's Management Agenda scorecard system 
to monitor progress.
    I have reviewed this proposal and am satisfied that it is 
necessary at this time. Therefore, I join the Secretary of DHS 
in recommending that you transmit the proposal to the Congress.
            Sincerely,
                                               Rob Portman,
                                                          Director.
    Enclosure.
                    DEPARTMENT OF HOMELAND SECURITY


                 TRANSPORTATION SECURITY ADMINISTRATION

    From unobligated balances currently available to the 
Transportation Security Administration, not to exceed 
$195,000,000 may be transferred to ``Expenses'', Transportation 
Security Administration, to liquidate obligations incurred 
against funds appropriated in fiscal years 2002 and 2003, 
notwithstanding Section 503 of Public Law 109-295.
    This request would authorize the transfer of $195 million 
of existing unobligated balances to liquidate obligations 
incurred in fiscal years 2002 and 2003. This request would 
ensure that adequate resources are available for existing 
obligations for contracts and grants for the Transportation 
Security Administration (TSA). The request is necessary to 
complete the implementation of a comprehensive corrective 
action plan developed by TSA to strengthen internal financial 
management procedures, including revising reporting and 
adjustment procedures, reconciliation of purchase orders to the 
general ledger monthly, and ensuring responsibility and 
accountability for each account.