What does it mean to obligate federal funds?

Obligation refers to the process of legally requiring an organization to use federal funds for a specific purpose. obligations are typically created by Congress through appropriation laws. These laws state the amount of money to be spent on a specific program, project, or activity. Obligations are created for a variety of purposes, such as dredging rivers, building roads or airports, and providing food and housing to military service members.

What does it mean to obligate federal funds to

obligation means that the money has been legally committed to a project, and is usually limited to a specific purpose. Obligated funds are established through a legally binding agreement that outlines how to spend the money or a set amount of money. Obligated funds are usually given to a state, county, or municipality to complete a project.

What does it mean to obligate federal funds for a project?

Obligation of federal funds generally means that all or part of the money for a project will be supplied by the federal government. This can be done through a direct appropriation or through a grant. When a project is funded with a direct appropriation, this means that the money is taken from an existing account in the U.S. Treasury. If a project is funded with a grant, the money comes from a separate account in the U.S. Treasury called the Acquisition and Maintenance of Equipment, Facilities

What does it mean to obligate federal funds in a contract?

Obligation refers to a legal contract between a contractor and the federal government. The contractor commits to perform work using funds provided to them by the federal government. Typically, the federal government does not actually transfer the funds to the contractor until the work is complete. This gives the federal government some level of control over the funds that the contractor is using.

What does it mean to obligate federal funds by a board?

A board can obligate federal funds by a board if the board has the authority to do so, a board must have a legal obligation to use the funds for a given purpose, and the funds must be appropriated by Congress or an authorized federal agency. Obligations are far-reaching. They can reach virtually every aspect of an organization’s operations including its programs, activities, and physical facilities.