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

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

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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