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What is the three part purpose test?

What is the three part purpose test?

The “Necessary Expense Doctrine” (a.k.a. The 3-part Purpose Test). The purpose statute does not require every expenditure to be specified in an appropriation act. That is not possible or feasible. “The spending agency has reasonable discretion in determining how to carry out the objects of the appropriation.”

What is necessary expense rule?

The “Necessary Expense Doctrine” – Where a particular expenditure is not specifically provided for in the appropriation act, it is permissible if it is necessary and incident to the proper execution of the general purpose of the appropriation. – The expenditure must not be prohibited by law.

What is the purpose statute?

A. The “Purpose Statute” provides that agencies shall apply appropriations only to the objects for which the appropriations were made, except as otherwise provided by law.

What is the difference between authorization and appropriation bills?

First, authorization bills establish, continue, or modify agencies or programs. Second, appropriations measures may provide spending for the agencies and programs previously authorized. Authorization acts establish, continue, or modify agencies or programs.

When is an expenditure a necessary expense under the Appropriation Act?

“Necessary Expense Doctrine.” Where a particular expenditure is not specifically provided for in the appropriation act, it is permissible if it is necessary and incident to the proper execution of the general purpose of the appropriation.

How is an expenditure considered a necessary expense?

GAO applies a three-part test to determine whether expenditure is a “necessary expense”. 1. expenditure must bear a logical relationship to the appropriation sought to be charged 2. expenditure must not be prohibited by law. 3.expenditure must not be something that falls within the scope of some other appropriation.

What are the three parts of the necessary expense doctrine?

Necessary Expense Doctrine Three-part test: Must be for a particular statutory purpose or necessary and incident to execution of the general purpose of the appropriation Expenditure must not be prohibited by law Expenditure must not fall within the scope of some other appropriation Purpose

Which is not part of the three-part purpose test?

The GAO has created a three- part test to determine whether an expenditure is a “necessary expense” of an appropriation. Which of the following IS NOT part of the three-part purpose test? The expenditure must be necessary and incident to the purposes of the appropriation. The expenditure must not be prohibited by law.