While the limit of obligation to expend (2024)

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While the limit of obligation to expend (2024)


What is the difference between obligated and expended funds? ›

Financial obligations are the commitment of funds for specific use. – Obligations should be defined in writing. – Expenditures are the payment of funds.

What is the limit of obligation? ›

Obligation Limitation [CBOO]

A provision of a law or legislation that restricts or reduces the availability of budget authority that would have become available under another law. Typically, an obligation limitation is included in an appropriation act.

What prohibits an obligation in excess of the appropriated amount? ›

The ADA, prescribed in sections 1341, 1342, and 1517 of title 31, U.S.C., prohibits obligations and expenditures in excess of or before an appropriation.

Can you obligate expired funds? ›

Expired funds are no longer available for incurring new obligations, because the period of availability has ended (31 U.S.C. §1552).

What is the meaning of expended funds? ›

Expended Funds means funds that have been paid in accordance with an approved or service rendered. Expended funds shall not exceed encumbered funds.

What does it mean when funds are obligated? ›

Obligating funds to an Activity means to commit funds to an Activity in accordance with programmatic requirements for a grant appropriation. Once obligated, funds are then available for drawdown, that is, disbursem*nt of the funds.

What is the difference between obligations and appropriations? ›

An appropriation allows the agency to incur obligations and to make payments from the U.S. Treasury for specified purposes. Appropriations are definite (a specific sum of money) or indefinite (an amount for "such sums as may be necessary").

What is the bona fide need rule? ›

The Bona Fide Need rule (law) requires appropriated funds be used only for goods and services for which a need arises during the period of that appropriation's availability for obligation.

What act prohibits against over obligating or over spending an appropriation? ›

Title 31, United States Code, Section 1341, Limitation on Expending and Obligating Amounts. Section 1341 forbids any officer or employee of the United States from: a. Obligating, expending, or authorizing the use of funds exceeding the amount available in an appropriation or fund.

What are the three types of appropriations? ›

There are three types of appropriations bills: regular appropriations bills, continuing resolutions, and supplemental appropriations bills. Regular appropriations bills are the twelve standard bills that cover the funding for the federal government for one fiscal year to be enacted into law by October 1.

What is the federal definition of obligation? ›

Obligation. Obligation means a legally binding agreement that will result in outlays, immediately or in the future.

Can funds be obligated in advance of an appropriation? ›

A statute or other legal requirement expressly authorizes an agency to obligate funds in advance of appropriations. In very rare situations, an agency has statutory authority to incur obligations in advance of appropriations. The best-known example is the Civil War-era Feed and Forage Act (41 U.S.C.

What is the difference between obligated and disbursed? ›

Obligations are liabilities legally incurred and committed to be paid for by the government either immediately or in the future. Disbursem*nts refer to the actual withdrawal of cash from the Bureau of the Treasury due to the encashment of checks issued by agencies and payment of budgetary obligations.

What does it mean to be financially obligated? ›

Financial obligations represent any outstanding debts or regular payments that a party must make. For example, if you owe or will owe money to anybody, that is one of your financial obligations. Almost any form of payment or financial security represents a financial obligation.

What is the meaning of obligated payment? ›

: a commitment (as by a government) to pay a particular sum of money. also : an amount owed under such an obligation.

What is the difference between obligated and unobligated funds? ›

Obligated balances--These are amounts that have been obligated but not yet outlayed. Unobligated balances are amounts that have not been obligated and that remain available for obligation under law.

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