Show me the money!
Q: What does it mean when government refers to the "color of money"?
A: The origin and types of funds dictate what, how, and by when funds can be used, the expiration dates for the purposes of obligation of funds (i.e., obligating the use of specific funds source to a contract), and by when funds it must be expended (i.e., paid out to the contract) or returned to the Treasury. Often the different "buckets of money" funds fall into is referred to as the "color of money" internally in Government.
Not all Government funds are created equally. If dollars are appropriated for use in a specific timeframe or specific reason, most often they can't be used for a different purpose unless the are available for reprogramming. In other words, an underrun on one project does not automatically create additional funds that are then available for an overrun on another project except under a very limited set of parameters.
Learn more about the different funding types and how and when they must be used in my FedSubK Feature: Appropriated Funds & Federal Contracting at https://www.fedsubk.com/post/fedsubk-snapshot-appropriated-funds-federal-contracting
If you really want to dig into how funding works in the Government and it's rules (or you just have a case of insomnia and need a sleep aid), check out the U.S. Government Accountability Office (GAO), Principles of Federal Appropriations Law (aka “The Red Book), 4th and 5th editions at https://www.gao.gov/legal/appropriations-law/red-book. The Red Book is to funds management and utilization what the Federal Acquisition Regulation (FAR) is to procurement.
Comments