Which three limitations must be checked prior to making new obligations?

• A. Purpose (Color of Money), Time (current and available for new obligations), Amount (sufficient funds)
• B. Purpose, Time, and Budgetary cycle
• C. Program priority, Schedule, and Funding Source
• D. Preferences of the Contracting Officer

Answer: (A)

Three checks must be performed before new obligations: confirm the purpose of the funds (color of money) to ensure the appropriation is for the intended work; verify the time availability to ensure funds are currently available for new obligations and have not expired; and verify the amount to ensure there are sufficient funds to cover the obligation. If any of these checks isn’t met, the obligation isn’t valid and would require action such as deobligation or adjusting the appropriation. Other items are planning or policy considerations and do not serve as the fund validity tests: the budgetary cycle and program priority relate to planning, while a funding source or contracting officer preferences do not by themselves validate funds for a new obligation.