If 'not to exceed' is stated on an appropriation, money can be transferred in from general appropriations but no money can be transferred out. Which statement best describes this rule?

• A. True
• B. False
• C. Not specified
• D. It depends

Answer: (A)

A not-to-exceed appropriation establishes a maximum amount available for obligations. Funds can be added into that appropriation from general appropriations to reach the ceiling, but unless there is separate statutory transfer authority, money cannot be moved out of that appropriation to other accounts. So the rule described—money can be transferred in from general appropriations but no money can be transferred out—accurately reflects how a not-to-exceed appropriation works.