Federal appropriations law covers far more than major programs and contracts. Day-to-day agency operations involve a wide range of expenditures, from office supplies and training to postage and photography, and each one is subject to rules that determine whether it is a legitimate use of appropriated funds. Many of these categories are not straightforwardly authorized or prohibited. Whether a given expenditure is permissible often depends on the specific appropriation, the purpose of the spending, and the relevant statutory or contractual context.
- Common expense categories that may be authorized under specific circumstances
- Why the Red Book is the essential reference for evaluating borderline expenditures
- How travel expenses work and why prior authorization matters
- The rules around post-procurement reimbursement requests
This lesson is a preview from our Master Certificate in Federal Financial Management Level I Certificate Program. Enroll in this course for detailed lessons, live instructor support, and project-based training.
There are numerous expense categories that may be authorized depending on the appropriation and the circumstances involved. These include advertising and public outreach, attorney fees, award ceremonies, magazine and book subscriptions relevant to the agency's mission, business cards, cultural awareness programs, contests, and certain types of gifts. Each of these carries its own criteria, and in most cases, there are GAO decisions that provide guidance on when the expenditure is permissible and when it is not.
Healthcare-related items, such as first aid kits, may be authorized as part of a safety requirement for a particular work environment. Office furnishings are subject to specific statutory criteria, particularly when a senior official transitions into a new workspace. There are defined limits and procedures that must be followed, and the GAO has issued decisions on cases where those limits were exceeded. Photography, postage, rewards programs, judicial ceremonies, and training all have their own applicable frameworks as well.
Training Expenses
Training is generally an authorized use of appropriated funds, but it typically flows through a contractual transaction rather than directly out of an organization's administrative budget. Training costs are usually handled as a procurement, which means they are subject to purchasing and contracting rules. Agencies should not assume that training expenses can be drawn from general operating funds without going through the appropriate acquisition process.
Travel Expenses and the Importance of Prior Authorization
Travel is consistently recognized as an authorized expense, but the authorization does not extend automatically to every cost incurred during a trip. All travel expenses must be pre-approved by the appropriate travel authorizer, certifying official, or travel approver before they are incurred. The fact that travel itself is authorized does not mean that every purchase made during that travel will be reimbursed.
Post-procurement requests, where an employee makes a purchase during travel and then seeks reimbursement after the fact without prior approval, are generally not permissible. If an unexpected expense arises during travel that was not anticipated in the original authorization, the employee should contact the appropriate authority to obtain approval before completing the transaction. Making the purchase first and requesting reimbursement later is an improper approach and creates the risk of a disallowed claim.
Using the Red Book as Your Reference
For any expenditure that falls into a gray area, the GAO's Red Book is the starting point for analysis. It contains extensive guidance on the categories described above and many others, along with case studies drawn from real situations across federal agencies. In most cases, there is a GAO decision that addresses or closely parallels the situation at hand, and that decision will either provide a basis for proceeding or make clear why the expenditure is not authorized.
Agencies should treat the Red Book not as a last resort but as a routine reference. Consulting it before making a questionable expenditure is far preferable to discovering after the fact that the spending was improper.
This article is provided as an educational resource summarizing key principles of federal appropriations law. It is not legal advice. Consult the GAO's Red Book for authoritative guidance on specific situations.
