What is required before money can be issued from the Treasury?

Study for the Certified Defense Financial Manager (CDFM) Exam 1. Engage with flashcards and multiple choice questions, with hints and explanations for each query. Prepare confidently for your exam!

Multiple Choice

What is required before money can be issued from the Treasury?

Explanation:
Money can be issued from the Treasury only when there is an appropriation by law. That appropriation provides the legal authority to incur obligations and disburse funds, serving as the budget authority for spending. Without an appropriation, the Treasury cannot legally pay out money, even if other actions are taken. A presidential proclamation does not create spending authority, and terms like legislative survey or judicial order do not authorize expenditures. In short, the funding authority rests with an appropriation law.

Money can be issued from the Treasury only when there is an appropriation by law. That appropriation provides the legal authority to incur obligations and disburse funds, serving as the budget authority for spending. Without an appropriation, the Treasury cannot legally pay out money, even if other actions are taken. A presidential proclamation does not create spending authority, and terms like legislative survey or judicial order do not authorize expenditures. In short, the funding authority rests with an appropriation law.

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