An over or under obligation can result in an ADA.

• A. True
• B. False
• C. Not Determinable
• D. Sometimes

Answer: (A)

The key idea is Antideficiency Act (ADA) compliance. The Act prohibits incurring obligations or making expenditures that exceed what appropriations authorize, and it also governs the timing of obligations relative to fund availability and expiration. An over-obligation exactly violates the ADA because you’re committing more funds than are available. An under-obligation, while not a direct spend-over issue, can still raise ADA concerns if it reflects improper fund control or timing that ultimately undermines proper use of appropriations. In practice, improper obligations—whether too large or not timely aligned with the appropriation—can lead to ADA findings, so the statement is true.