BUDGETARY CONTROL - 8311

Agencies/departments will maintain budgetary control at the level at which resources are appropriated and keep expenditures within spending limitations.  After the appropriations are established, agencies/departments will control the unexpended or unencumbered balance of an appropriation by tracking and reporting expenditures and unliquidated encumbrances.  As stated in SAM section 7110, a key requirement of an agency’s/department’s system of accounting is to provide the capability to reconcile appropriation balances.

The table below illustrates the budgetary control elements that should be tracked by agencies/departments and the type of transactions that increase or decrease the appropriation, expenditure, encumbrance and the remaining appropriation balance. The table provides a high level view of how transactions will impact the Final Budget Report.