Which term describes funding that cannot be obligated due to expiration of the appropriation period?

Which term describes funding that cannot be obligated due to expiration of the appropriation period?

• A. Office of Management and Budget (OMB)
• B. Expired funds
• C. Developmental Test (DT)
• D. OSD Comptroller

Answer: (B)

Time-limited availability of federal funds is the key idea. Appropriations can be obligated only during their period of availability. Once that period expires, funds cannot be used to incur new obligations. This status is described as expired funds. The other options refer to organizations or terms not related to the status of funds: the Office of Management and Budget oversees the budget process, a Developmental Test is a DoD testing phase, and the OSD Comptroller is the DoD financial manager. Recognizing expired funds helps ensure that obligations are placed only within the authorized time frame.

Time-limited availability of federal funds is the key idea. Appropriations can be obligated only during their period of availability. Once that period expires, funds cannot be used to incur new obligations. This status is described as expired funds. The other options refer to organizations or terms not related to the status of funds: the Office of Management and Budget oversees the budget process, a Developmental Test is a DoD testing phase, and the OSD Comptroller is the DoD financial manager. Recognizing expired funds helps ensure that obligations are placed only within the authorized time frame.