Contradicting and Acquisition Assignment Example | Topics and Well Written Essays - 500 words

Contradicting and Acquisition - Assignment Example Appropriation does not necessarily represent cash. Instead, it represents the amount for a given purpose as stated in the appropriation act which the companies are obligated to during a given period as noted in the appropriation act. It is most important for it helps the companies spend federal funds (Warde, 2010). Difference between authorization and appropriation: The constitution usually grants its Congress the power of appropriation for agencies and federal spending. The federal programs are authorized by some Senate rules and activities of appropriation follows. Congress usually breaks the rules because the rules carry no constitutional weight or no statutory weight. The authorization-appropriation process serves as a highway in enacting federal spending. So the Congress is authorized before appropriation takes place whereby budget authority is provided to federal agencies that incur obligations and make payment out of the treasury (Gibbler, 2006). Obligations: Legal actions or responsibilities made by federal agencies at a given period. The actions may include different transactions made by them and they may include the number of orders received, services received, different contracts awarded among others. Obligation results to the amount of payment made including advances, amount of checks issued, reimbursement and net of refunds during the same period or in the future (Smith, 1976). Expenditure: It is a charge on current cash that results when agencies settle an obligation as evidenced by receipts, voucher, and invoice. Federal agencies spend authorized funds in some of the federal programs. Gross outlays are disbursement that is, cash, and fewer funds received. Net outlays involve disbursement minus reimbursement collected.