How does GFEBS perform funds availability checks?

The process of funds availability checks in GFEBS is integral to ensuring that financial resources are managed responsibly and in accordance with regulations. The system performs these checks upon the commitment of funds, which means that it verifies whether sufficient funds are available at the moment when a financial commitment, such as a purchase order or contract obligation, is being made. This step is crucial as it helps to prevent overspending and ensures that the organization does not commit to financial obligations without the necessary funds being accessible, thereby maintaining fiscal integrity.

Executing funds availability checks at this stage allows GFEBS to effectively track financial resources and make informed decisions about future expenditures. It ensures that commitments are only made when there is a verified balance that can cover those commitments, thereby supporting sound fiscal management practices.

Checking for funds availability after the payment is executed or during invoice processing would not adequately safeguard against financial discrepancies as it could lead to unauthorized spending. Similarly, performing checks prior to the commitment of funds would not align with the proper sequence of ensuring funds availability at the point of financial obligation.