What does the Anti-Deficiency Act prohibit?

What does the Anti-Deficiency Act prohibit?

• A. A law that prohibits federal agencies from delegating authority to spend funds.
• B. A law that prohibits federal agencies from incurring obligations or making expenditures in excess of the appropriated amount.
• C. A regulation governing procurement procedures.
• D. A policy requiring quarterly budget reviews.

Answer: (B)

The Anti-Deficiency Act is about making sure federal agencies don’t spend money they don’t have authority to spend. It prohibits agencies from incurring obligations or making expenditures in excess of the amounts that have been appropriated by Congress. In other words, you can only commit and spend funds that are available in the specific appropriation for a given program, and you can’t enter into contracts or incur debts for more than what’s been authorized. It also covers the idea that obligations should not be incurred before funds are available and that spending should align with what Congress has provided. Choices that describe other budgeting or procurement notions—like delegating spending authority, general procurement procedures, or quarterly budget reviews—don’t capture the specific restriction the act imposes: that obligations and expenditures cannot exceed the appropriated amounts.

The Anti-Deficiency Act is about making sure federal agencies don’t spend money they don’t have authority to spend. It prohibits agencies from incurring obligations or making expenditures in excess of the amounts that have been appropriated by Congress. In other words, you can only commit and spend funds that are available in the specific appropriation for a given program, and you can’t enter into contracts or incur debts for more than what’s been authorized. It also covers the idea that obligations should not be incurred before funds are available and that spending should align with what Congress has provided.

Choices that describe other budgeting or procurement notions—like delegating spending authority, general procurement procedures, or quarterly budget reviews—don’t capture the specific restriction the act imposes: that obligations and expenditures cannot exceed the appropriated amounts.