Certified Government Financial Manager (CGFM) Practice Exam

Apportionment refers to the process through which the Office of Management and Budget (OMB) allocates budgetary authority to federal agencies. This is done to ensure that agencies only spend the funds that are available to them and to control the rate at which federal funds are disbursed throughout the fiscal year. Apportionment is critical for the effective management of federal resources, as it helps prevent agencies from overspending and maintains fiscal discipline.

In this context, apportionment allows agencies to receive budgetary authority in increments or segments rather than in a single lump sum, which is vital for monitoring and managing cash flow effectively. This method also aligns with the federal government's need for accountability, ensuring that funds are utilized in accordance with congressional intentions and the stipulated fiscal laws. Other terms like allotment, delegation, and authorization relate to different aspects of budget management and government operations but do not specifically describe the dispersal of budgetary authority by OMB.