Under the obligation accounting system, the Department of Budget and Management releases the advice of allotment (i.e. authority to obligate funds) which prompts government agencies to enter into contract with suppliers of goods and services. Allotments are generally classified into personal services, maintenance and other operating expenditures, and capital outlay. To effectively and efficiently carry out their mandated functions, agencies are expected to optimize the use of their allotment.>>read complete document
