What principle is followed to ensure proper usage of appropriated funds?

The Necessary Expense Rule is a principle that serves to ensure that appropriated funds are used appropriately and effectively within the scope for which they were allocated. This rule dictates that expenditures must be necessary to meet the objectives of the appropriation, thereby aligning spending with the intended use of funds.

By adhering to this rule, organizations can avoid wasteful or excessive spending and ensure that resources are directed toward legitimate and essential needs. This principle reinforces the accountability of financial management, as it requires that every expenditure be justified based on necessity for the specific program or purpose.

The other principles, while they may play roles in broader financial management strategies, do not specifically encapsulate the focus on appropriated funds like the Necessary Expense Rule does. This rule is critical in government and public finance, ensuring that every dollar spent aligns with legislative intent, ultimately supporting responsible and transparent fiscal operations.