Expenditures: An actual payment of funds when cheques are issued or money is paid for the work performed, thereby liquidating the unpaid obligation associated with that work. (b) The funds allocated to the proposed project in accordance with subparagraph (a) of this section shall remain available for commitment, unless the Administrator of the FHWA is informed that the application has been rejected by the Administrator of UMTA, or unless the competent local officials in whose jurisdiction the project is to be located and the National Road Traffic Authority jointly request the withdrawal of the Project Application. Obligation (assignment): Legal liability that arises from the government and represents the amount of an awarded contract, an awarded contract, a service provided or any other transaction that legally charges a certain amount from an allocation of funds or an expenditure fund. For example, an organization makes a commitment when it places an order, signs a contract, awards a subsidy, purchases a service, or takes other actions that require the government to make payments to the public or from one government account to another. Payment can be made immediately or in the future. Budgetary resources must be available before legal commitments can be made. Commitment (allocation): A fixed administrative reserve of funds based on fixed supply requests, unaccepted client orders, policies and equivalent instruments that allow the recipient to enter into commitments without further recourse to the official responsible for certifying the availability of funds. a) If, on October 1 of each fiscal year, a state fails to enact or fails to enact a law that complies with Section 1270.4, the FHWA will reserve an amount equal to 2.5 percent of the funds allocated to the state for that fiscal year in accordance with 23 U.S.C. 104(b)(1) and (b)(2) respectively. a) The Administrator of the FHWA reviews the State`s request, determines whether sufficient funds are available for urban systems and informs the National Road Traffic Authority and the Administrator of UMTA of the reservation of funds. (b) Funds are set aside on the basis of proportional amounts from each of the 23 U.S.C. 104(b)(1) and (b)(2) distributions. The State Department of Transportation has 30 days from the date the funds are set aside under this section to notify the FHWA through the administrator of the relevant department if it wishes to change the allocation of the amounts set aside between 23 U.S.C.

104 (b) (1) and (b) (2). The following pages on government regulations refer to this page. Bona Fide Need: The bona fide needs statute, 31 U.S.C. 1502 states that a fixed-term allowance “is available only for the payment of expenses duly incurred during the period of availability or for the conclusion of contracts duly concluded within that period …”. This law stipulates that a budget allocation can only be required to meet a legitimate or “bona fide” need that arises in or in certain cases before the fiscal year for which the endowment was made available, but which continues to exist.