What do managers need to ensure during the budgeting stage regarding budgetary authority?

During the budgeting stage, it is crucial for managers to not spend beyond the appropriated authority. This principle ensures that all expenditures are made within the limits set by the governing body or regulatory framework. Appropriated authority refers to the legal permission granted to an entity to use funds for specific purposes as outlined in the budget approved by the legislative body or oversight committee.

By adhering to the limitations of appropriated authority, managers fulfill their responsibility to maintain fiscal discipline and compliance with laws and regulations. It also helps prevent overspending, which could lead to deficits or mismanagement of public funds. This practice is essential for maintaining the trust of stakeholders and ensuring that resources are allocated effectively and efficiently within the defined budget constraints.

Understanding and respecting the appropriated authority reinforces accountability and promotes sound financial management within government entities.