The Release and Obligation of Army Procurement Funds
Abstract
In recent years the Army has experienced both overobligation and underobligation of procurement funds. As explained more fully below, a Congressional change in the appropriation structure made the budget execution process much more complex, starting in FY 1972. After an overobligation occurred in FY 1974, many new procedures were developed by the Army to prevent further overobligations. Since then, the opposite situation, namely underobligation, has become a problem. The Army, like other Federal agencies, requests its procurement appropriations for a specific fiscal year, based on a planned requirement. When the funds are appropriated but not eventually obligated, the Army's budget estimating credibility is reduced. Delay in obligations can also unbalance carefully planned programs in which the planning for subsequent activity proceeds from initial spending assumptions that later prove invalid. Finally, if procurement funds are not obligated within three years, the funds expire.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1978
- Accession Number
- ADA060097
Entities
People
- Richard C. Brannon
- Wayne V. Zabel