Glossary of Terms

Appropriations: An act of the United States Congress allowing U.S. Federal Agencies to incur obligations for specified purposes.
Authorization: Substantive legislation that establishes legal operation of a federal program, either indefinitely or for a specific period of time, and sanctions particular program funding levels.
Fiscal Year (FY): An accounting period of 365 days (366 in leap years), but not necessarily starting on January 1. The fiscal year of the United States Government begins on October 1 and ends on September 30 and is designated by the calendar year in which it ends. Prior to FY1977, the U.S. fiscal year ran from July 1 through June 30. The three-month transition period in 1976 (July 1 through September 30) is treated as a distinct reporting period.
Grant: Cash transfers for which the recipient incurs no legal debt.
Loan: Transfers for which the recipient incurs a legal debt and repayment is required over time, with or without interest, in convertible currencies or in kind.
Obligation: A binding agreement that will result in outlays, immediately or in the future. Budget resources must be available before obligations can be legally incurred.