Which of the following describes the usual flow of budgetary authority through the budgetary accounts of a federal agency?
A) Apportionment, allotment, appropriation, commitment, obligation, expended appropriation.
B) Allotment, commitment, obligation, expended appropriation, apportionment.
C) Appropriation, apportionment, allotment, commitment, obligation, expended appropriation.
D) Commitment, obligation, appropriation, apportionment, allotment, expended appropriation.

Question

Quizplus · Accepted Answer

The usual flow of budgetary authority through the budgetary accounts of a federal agency is as follows:
1. Appropriation: Congress authorizes funds for the agency through the appropriations process.
2. Apportionment: The Office of Management and Budget (OMB) divides the appropriated funds into smaller, specific amounts for each program, activity or project.
3. Allotment: These smaller amounts are then assigned to specific offices, programs or projects within the agency.
4. Commitment: When the agency tells a vendor or service provider it intends to pay for goods or services, it makes a "commitment." This reserves a portion of the allotment for that transaction.
5. Obligation: When goods or services are received, an "obligation" is incurred. This means the agency is legally obligated to pay for the goods or services. The funds for these transactions are set aside from the allotment.
6. Expended appropriation: Lastly, when the agency pays for the goods or services it receives, the funds are marked as an "expended appropriation."

Which of the Following Describes the Usual Flow of Budgetary