When an agency receives apportionments, what do they do next?

Prepare for the CGFM Exam 1 with flashcards and multiple-choice questions. Each question comes with hints and explanations to help you understand. Ace your exam by studying the key concepts of the governmental environment!

When an agency receives apportionments, the next logical step is to allocate budgetary authority to specific components within the agency. Apportionments serve as a mechanism through which budgeted funds are made available for use, often from a larger pool of appropriated funds.

By allocating budgetary authority to various components, the agency ensures that funds are directed towards specific programs or functions that require financial resources for operation. This process allows for effective financial management, enabling the agency to plan its expenditures according to its priorities and operational needs.

The other options involve actions that are not the immediate next step after receiving apportionments. For instance, increasing overall budget requests typically occurs earlier in the budgeting process, when agencies anticipate their funding requirements before any apportionments are made. Resubmitting the budget for approval usually relates to situations where the initial budget is rejected or requires revisions, which is unrelated to the immediate action following receipt of apportionments. Lastly, restricting the spending of funds may occur as a result of financial controls or budget constraints but is not the typical response to the receipt of apportionments, where allocation is the focus instead.

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