Final answer:
The situation that represents an obstacle to delegation is a budget shortfall for the current fiscal year.
Step-by-step explanation:
The situation that represents an obstacle to delegation is C. There is a budget shortfall for the current fiscal year. Delegation involves assigning tasks and responsibilities to others, but a budget shortfall can limit the resources available to delegate and restrict the ability to allocate work effectively. In this situation, there may be insufficient funds to hire additional staff or provide necessary resources for delegation.