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Explain Appropriation

Appropriation: The authorization for a particular agency to make expenditures or make obligations from a particular fund for a particular purpose. It is generally limited in amount and period of time during which the expenses is to be recognized. For illustration, appropriations made by the Budget Act are obtainable for encumbrance for 1-year, unless or else specified. Appropriations made by other legislation are obtainable for encumbrance for 3-years, unless or else specified, and appropriations stating “without regard to fiscal year” shall be obtainable from year to year until totally expended. Legislation or the California Constitution can offer continuous appropriations, and voters can also build appropriations by approving ballot measures. The appropriation shall be obtainable for encumbrance throughout the period specified therein, or when not specified, for a period of 3-years after the date on which it first became obtainable for encumbrance. Apart from for federal funds, liquidation of encumbrances should be within 2-years of the expiration date of the period of accessibility for encumbrance, at which time the undisbursed (that is, unliquidated) balance of the appropriation is reverted back into the fund. The Federal funds encompass 4-years to liquidate.

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