Certified Government Financial Manager (CGFM) Practice Exam 2025 – Your All-in-One Guide to Exam Success!

Question: 1 / 875

What term is used for the budgetary authority provided to specific components within an agency?

Apportionment

Allotment

The term used for the budgetary authority provided to specific components within an agency is indeed "allotment." Allotments are intended to distribute the authority to spend funds amongst various segments of an agency, ensuring that different departments or projects have access to the financial resources they need to operate within their assigned budget. This process allows for better control and monitoring of expenditures, as it divides the total budget into smaller, manageable portions tailored to the specific needs of each component.

Allotments are a crucial part of financial management within government entities, as they facilitate the allocation of resources in a manner that aligns with strategic objectives and fiscal responsibilities. Proper allotment ensures that agencies remain compliant with budgetary guidelines while fulfilling their operational mandates effectively.

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