What is required before making an obligation?

Before making an obligation, it is essential to ensure the availability of funds. This requirement stems from the need to confirm that the necessary financial resources are present to cover the costs associated with the obligation. If funds are not available, the obligation cannot be legally executed, potentially leading to financial mismanagement and violation of budgetary constraints.

The concept of availability emphasizes the importance of fiscal responsibility within an organization or governmental body. It ensures that commitments made are financially supported, which is critical for maintaining the integrity of financial operations and adhering to regulations that govern public funds.

In the context of the choices, while approval from the Chief Financial Officer, finalization of procurement contracts, and verification from the Federal Reserve may be important steps in various financial processes, they do not take precedence over confirming the actual availability of funds before a commitment is made. This foundational requirement safeguards against overruns and ensures compliance with fiscal policies.