AGA Government Financial Manager GAFRB Question # 5 Topic 1 Discussion
GAFRB Exam Topic 1 Question 5 Discussion:
Question #: 5
Topic #: 1
The legal congressional permission for an executive branch department or agency to enter into an obligation that will result in an immediate or future outlay is referred to as
Budget authority is the legal authorization provided by Congress that allows federal agencies to enter into obligations that will result in outlays, either immediately or in the future. It is a prerequisite for agencies to spend federal funds.
Commitment authority is not an official federal term; transfer authority allows movement of funds between accounts and is more restrictive; expenditure authority is an informal term and not defined in U.S. Code.
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