Encumbrances are not always recorded; some appropriations are drawn down in predicable patterns and encumbrances serve no control purpose.

Question

Quizplus · Accepted Answer

The purpose of recording encumbrances is to provide control over an appropriation characterized by expenditures that are unpredictable as to timing and/or amount, or in cases in which a single appropriation supports geographically dispersed activities. In contrast, some appropriations are drawn down by expenditures in predictable patterns, such as monthly payments on a rental contract.

Encumbrances Are Not Always Recorded; Some Appropriations Are Drawn Down