What is "Commitment Control" in GFEBS?

What is "Commitment Control" in GFEBS?

• A. A review of past spending to inform future budgets
• B. A process for ensuring obligations do not exceed available funding
• C. A mechanism to approve all purchase orders
• D. A strategy for negotiating better prices

Answer: (B)

The concept of "Commitment Control" in GFEBS refers to a systematic approach designed to manage and track obligations against available funding to prevent overspending. This process ensures that all commitments made do not surpass the budgeted amounts, allowing for more accurate financial planning and adherence to fiscal regulations. By implementing commitment control, GFEBS helps maintain a clear picture of an organization’s financial status, enabling decision-makers to see how much of their budget remains available for future obligations. It fosters responsible financial management and supports the overall mission by ensuring that expenditures align with allocated resources. This proactive measure is essential in preventing budget shortfalls and ensuring compliance with legal financial management standards.

The concept of "Commitment Control" in GFEBS refers to a systematic approach designed to manage and track obligations against available funding to prevent overspending. This process ensures that all commitments made do not surpass the budgeted amounts, allowing for more accurate financial planning and adherence to fiscal regulations.

By implementing commitment control, GFEBS helps maintain a clear picture of an organization’s financial status, enabling decision-makers to see how much of their budget remains available for future obligations. It fosters responsible financial management and supports the overall mission by ensuring that expenditures align with allocated resources. This proactive measure is essential in preventing budget shortfalls and ensuring compliance with legal financial management standards.