Showing posts with label Contract. Show all posts
Showing posts with label Contract. Show all posts

November 3, 2019

Key Federal Financial Management Terms

Below are some key Federal Financial Management Terms:
  • Authorization: Act of Congress that permits Federal programs or activities to exist and recommends funding levels.
  • Appropriation: Act of Congress to provide Federal agencies with budget authority to obligate government to future outlay of cash for a specific purposes and period of time. 
  • Commitment: An administrative reservation of funds by the financial controller or resource manager triggered by a procurement or purchase request.
  • Obligation: A legal reservation fo funds that binds government to future expenditure and outlay of cash from the Treasury triggered by the signing of a contract, travel order, credit card transaction, etc. 
  • Expenditure: Issuance of a payment disbursement by electronic funds transfer, check, etc. 
  • Outlay: Payment of cash from Treasury to vendor to liquidate a financial obligation.
These should be helpful in understanding the Federal financial management processes. 

(Credit Photo: Andy Blumenthal)

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