Final answer:
The encumbrance procedure is used to ensure that appropriations are not overexpended by tracking and managing committed funds.
Step-by-step explanation:
The encumbrance procedure is used to make sure that appropriations are not overexpended. In the budget process, encumbrances are created when a commitment of funds is made for a particular purpose. By tracking encumbrances, the government can ensure that expenditures do not exceed the budgeted amount. For example, if a government agency plans to spend $10,000 on office supplies for the year, they can create an encumbrance for $10,000 once the purchase order is issued. This way, they can keep track of the committed funds and avoid overspending.
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