AGA Exam GAFRB Topic 1 Question 5 Discussion

Actual exam question for AGA's GAFRB exam

Question #: 5
Topic #: 1

What must a federal agency receive from the U.S. Department of the Treasury before it can begin spending an appropriation?

Aan apportionment

Ban allotment

Ca warrant

Dan encumbrance
A Treasury warrant is the formal notification from the U.S. Department of the Treasury that funds have been made available to a federal agency. Agencies cannot legally obligate or expend appropriated funds until a warrant has been issued.
Apportionments and allotments come afterward in the budget execution process.
Relevant Reference:
Treasury Financial Manual (TFM), Volume I, Part 2
OMB Circular A-11 -- Budget Execution
GAO Red Book -- Appropriations Law
Answer : C. a warrant

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Suggested Answer: C

by Domitila at Jul 04, 2025, 09:49 PM

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Dorothy

8 days ago

Ah, the almighty warrant - the golden ticket to financial freedom for government agencies. I bet the Treasury folks have a good laugh watching them scramble for it.

upvoted 0 times