Which transactions require prior approval from the Office of Management and Budget (OMB)?

Changes in appropriation or obligations that are significant require prior approval from the Office of Management and Budget (OMB) because such changes can have considerable implications for federal budget management and oversight. Significant adjustments may affect how federal funds are allocated and could lead to larger shifts in program funding or priorities.

The purpose of requiring OMB approval for these transactions is to ensure that all adjustments align with the overall financial and policy objectives of the federal government. OMB's role is to coordinate the administration's financial management and budgetary processes, ensuring that substantial changes are evaluated and approved before implementation.

In contrast, minor adjustments in funding may not warrant the same level of scrutiny because they typically involve smaller amounts that do not significantly impact the overall budget or program goals. Similarly, all transactions regardless of size do not need prior OMB approval as the management of minor transactions is generally delegated to individual agencies. Unplanned expenditures, while they may require scrutiny, do not automatically trigger the need for OMB approval unless they lead to significant budgetary implications or changes.