What does the Anti-Deficiency Act prohibit?

What does the Anti-Deficiency Act prohibit?

• A. No money appropriated to Navy by Congress may be spent for purpose other than that designated by Congress
• B. It requires that all projects be completed within a fiscal year
• C. It allows discretionary spending during emergencies
• D. It applies only to personnel, not funds.

Answer: (A)

Funds must be spent exactly as Congress authorizes. The Anti-Deficiency Act prevents spending or committing funds for any purpose that isn’t specifically designated by an appropriation, and it stops obligations from exceeding what Congress has allocated. In other words, money appropriated to the Navy can’t be used for something Congress didn’t authorize. That’s why the statement about money appropriated by Congress not being spent for purposes outside those designated by Congress is the best fit. The other ideas aren’t correct: the Act doesn’t require all projects to be completed within a fiscal year, it doesn’t grant discretionary spending during emergencies, and it applies to funds (not just personnel).

Funds must be spent exactly as Congress authorizes. The Anti-Deficiency Act prevents spending or committing funds for any purpose that isn’t specifically designated by an appropriation, and it stops obligations from exceeding what Congress has allocated. In other words, money appropriated to the Navy can’t be used for something Congress didn’t authorize. That’s why the statement about money appropriated by Congress not being spent for purposes outside those designated by Congress is the best fit.

The other ideas aren’t correct: the Act doesn’t require all projects to be completed within a fiscal year, it doesn’t grant discretionary spending during emergencies, and it applies to funds (not just personnel).