Appropriation
Candlefocus EditorBudgeted funds are funds that have been appropriated by the Congress as part of their overall budget process. It’s important to note that although Congress authorizes the amount allocated to certain programs and departments, these funds are still controlled and allocated by the executive branch of the government. Non-budgeted funds, on the other hand, come much less frequently and can include funds for disaster relief, special projects, research, etc.
The majority of appropriations come from the federal government but state and local governments also appropriate funds for their respective purposes. Funds are appropriated from taxes, user fees and other sources. The appropriation process allows for agencies to request all the money they might need for a given year but, in the end, Congress will decide what gets the green light.
Once the appropriations are allocated, those funds are strictly monitored by the government. That includes making sure the funds are spent properly, in accordance with the laws and regulations that are in place. The purpose of the appropriated funds must be tracked very closely and all the details behind the expenditure must be reported back to the government.
Appropriations are an important aspect of the financial management of any government or company and it’s vital to have a clear understanding of the Congressional process when planning for and budgeting for given years. Businesses should also keep track of appropriations taking place at the state and local level in order to stay in compliance with rules and regulations. By monitoring the appropriated funds and ensuring that the money is spent the way it’s intended to be, governments, companies and citizens can trust that their money is spent in the best possible way.