Annual appropriations are intended for ___% obligation?

Annual appropriations are intended for ___% obligation?

• A. 75%
• B. 50%
• C. 100%
• D. 90%

Answer: (C)

Annual appropriations are provided for a single fiscal year and are intended to be obligated up to the full amount of the appropriation within that year. Obligation is the act of legally committing funds to contracts or other commitments, and because these funds are available only for that year, the expectation is to commit the entire appropriation by year-end (unobligated balances lapse). So the correct concept is that these funds are meant for 100% obligation. The other percentages would imply not using the full amount, which isn’t the standard for annual funding.

Annual appropriations are provided for a single fiscal year and are intended to be obligated up to the full amount of the appropriation within that year. Obligation is the act of legally committing funds to contracts or other commitments, and because these funds are available only for that year, the expectation is to commit the entire appropriation by year-end (unobligated balances lapse). So the correct concept is that these funds are meant for 100% obligation. The other percentages would imply not using the full amount, which isn’t the standard for annual funding.