What is a consequence of not having available funds when trying to create an obligation?

When an agency attempts to create an obligation without available funds, the consequence is that the obligation is considered invalid. This stems from the requirement that all obligations must be supported by appropriated funds to ensure fiscal responsibility and compliance with legal regulations. If the obligation is created without confirmed funding, it can lead to financial repercussions such as audits, penalties, or the need to cover unplanned expenses that were not accounted for in the budget. This situation emphasizes the importance of proper budget management and resource allocation to prevent financial mismanagement within the agency.