Entitlement must be established prior to disbursing what?

Prepare for the Certified Defense Financial Manager Exam 1. Study with flashcards and multiple choice questions. Each question includes hints and explanations to boost your knowledge. Ace your exam with confidence!

Multiple Choice

Entitlement must be established prior to disbursing what?

Explanation:
In government finance, entitlement is the legal right to receive a payment under law, contract, or program authority. That entitlement must be established before releasing money to ensure payments are authorized and properly supported. So, you disburse funds only after the entitlement is in place, because it provides the legal basis to pay. An invoice is just a request for payment, and a budget defines available resources, but neither by itself authorizes a specific disbursement without entitlement. Entitlements themselves describe the recipient’s right, not the payment itself.

In government finance, entitlement is the legal right to receive a payment under law, contract, or program authority. That entitlement must be established before releasing money to ensure payments are authorized and properly supported. So, you disburse funds only after the entitlement is in place, because it provides the legal basis to pay. An invoice is just a request for payment, and a budget defines available resources, but neither by itself authorizes a specific disbursement without entitlement. Entitlements themselves describe the recipient’s right, not the payment itself.

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