Which of the following is true concerning obligations under the Anti-Deficiency Act?

Prepare for the Back to Basic Certification Contracting Test. Study with comprehensive flashcards and multiple-choice questions, each with detailed explanations and insights. Enhance your knowledge and pass with confidence!

Obligations under the Anti-Deficiency Act must comply with law authorization, which is fundamental to ensuring that federal agencies do not spend more money than what has been appropriated by Congress. This Act prevents government officials from incurring obligations or making expenditures in excess of the amounts available in appropriations or funds. It reinforces the principle of fiscal responsibility and ensures accountability in government spending.

This requirement is essential because it serves to protect the integrity of congressional appropriations, ensuring that funds are only used for their intended purpose and within the limits set by congressional approval. It aligns with the broader framework of budgetary control and compliance within federal financial management systems.

The other options do not accurately reflect the constraints imposed by the Anti-Deficiency Act. Contractors cannot create obligations freely, as they must operate within the framework established by the government, and government officers are limited in their ability to incur obligations to prevent overspending.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy