In the following example – from the Fiscal 2012 Transportation, Housing and Related Organizations Appropriation Act – the Public and Indian Housing Account – tenant-based rent support received additional funding over the previous year`s advance in the fiscal year, plus an advance for the following fiscal year: For more information on how to fund these programs, see NCS Report R42640, Medicaid Funding and Spending; CRS Report R45047, Department of Veterans Affairs Appropriations for Fiscal Year 2018; and CRS report R45083, Labour, health and social services, and education: appropriations for the 2018 financial year. This delayed period of availability of these funds is not considered forward funding, as the funds become available before the last quarter of the fiscal year. A third period of alternative availability, which is used much less frequently, is „seed funding“. Pre-financing is the power to enter into commitments at the end of the financial year which are charged to the allocation of appropriations for the following financial year (once it enters into force).7 Advance financing is different from advance appropriations which become available at some point after the end of the financial year, since advance appropriations are only available during the year. Advance funding is also different from advance payments available in at least one subsequent fiscal year, as advance appropriations expire after the end of the fiscal year.8 Advance funding is an additional authority that becomes available late in the fiscal year; any use of the advance power of attorney is charged to the commitment of funds for the following financial year. This authority has generally been granted to accounts that fund mandatory payments to individuals. Indeed, the total amount of these payments may be particularly sensitive to changes in eligible recipients or difficult to predict more than a year in advance. In such cases, the provision of additional funds that become available at the end of the fiscal year could reduce or eliminate the risk of funding gaps and the need for additional segregated funds. In both cases where advances are currently made available, they are only available in the last weeks of the financial year. Pre-financing is a form of budgetary authority provided for a small number of accounts and allows for additional commitments towards the end of the financial year, which are recognised in the financing of the following financial year35. First of all, in addition to the appropriations for the financial year, advances are made available for an account in this account. Secondly, the advance appropriations will only be made available after the beginning of the financial year, usually in the last two months of that financial year, and will no longer be available after the end of the financial year.

Third, all expenditure relating to the anticipated appropriations of the Authorization Act will be recognised in the appropriations for the following financial year.36 The provisional appropriations will become available in the last quarter of the financial year and will continue at least until the following financial year.27 For example, in an appropriation law for the financial year 2020, the budgetary authority financed by the budget would be available in the financial year 2020, but not before July 1. 2020 or later and would remain available for all or part of fiscal 2021. This budgetary authority is often available for a period of more than 12 months, in which case it can be classified as a multiannual budgetary authority28, but can also be provided in shorter stages. A salient effect of advances relates to funding shortfalls.20 Congressional budgeting currently requires that annual funds be available for a single fiscal year, which means that new funds must be adopted by the beginning of the fiscal year (October 1). If these appropriations are not implemented by that date, one or more decisions in progress may be necessary to prevent a financing gap from occurring until the closure of the annual appropriations or the end of the financial year. For programs funded under the authorization process, there is a risk of a funding gap at the beginning of the fiscal year when no annual funds or A CR comes into effect, or at any time during the fiscal year when a RC expires and has not been replaced by another RC or annual funds. However, if a program`s appropriations for all or part of a fiscal year come into force in the previous fiscal year`s finance law, the program may not have a funding gap, depending on whether those funds were available during the period and were not spent.21 Term funds are available from the end of the fiscal year and are carried forward to at least one subsequent fiscal year. Its main objective is to facilitate commitments during the summer months for certain Programs of the Ministry of Education and the Ministry of Labour, which begin operations in the fall.

Term funds generally become available at an interval that begins on July 1 and may be required for at least two fiscal years. This funding plan is usually combined with annual or early funding, so only the part of the program that requires summer commitments is funded in this way. As with term financing, it is not known for the first time that advances have been provided for in an authorization act. The provisions that have the essential characteristics of pre-financing date back at least to the 1967 financial year, when these additional funds were made available to the unemployment benefits account for federal employees and former soldiers.37 In the past, pre-financing tended to be provided for certain accounts that finance payments on a claim basis. The practice of providing for such rights through pre-financing, as opposed to other funding mechanisms, appears to be a legacy of past funding practices that precede the current conceptualization of budget implementation and execution.38 It has limited application in today`s world, since only two accounts currently receive pre-financing: this provision appears to prohibit term financing and pre-financing, which is not „recurring or customary“ since these appropriations are available after the beginning of the financial year. .