The  resource  "due  from  other  funds"  results  from  the
performance  of  work  or  the  transfer  of  supplies  and  materials
to  departments,  bureaus,  or  organization  units,  the  activities  of
which  are  supported  by  means  of  funds  other  than  the  gen-
eral fund.  This  resource  of  the  general  fund  is  offset  by
obligations  of  other  funds  equal  in  amount  entitled  "due  to
other  funds."

Appropriations  made  out  of  the  general  fund  constitute  ob-
ligations to  be  met  out  of  the  resources  of  that  fund.  The
extent  of  these  obligations  is  expressed  by  the  total  amount  of
the  unexpended  balances  of  appropriations  analyzed  into  the
two  main  elements  of  which  it  is  composed,  namely,  (i)  the
"unencumbered  balance  of  appropriations,"  and  (2)  the  "un-
liquidated encumbrances."  The  unencumbered  balance  con-
sists of  the  amount  of  appropriations  that  has  not  been  reduced
by  contracts  entered  into  or  purchase  orders  issued.  The  un-
liquidated balance  of  encumbrances  consists  of  the  total  amount
of  encumbrances  outstanding,  that  is,  contracts  and  purchase
orders  that  have  not  been  liquidated  by  vouchers  approved  for
payment.
These  balances  when  applied  to  the  general  fund  control  the
aggregate  of  the  same  balances  of  all  appropriations  made  out
of  the  general  fund.  For  the  purpose  of  the  administration
of  the  general  fund  these  balances  are  important,  not  only
as  a  means  of  knowing  the  amounts  of  obligations  to  be  met,
but  also  as  a  means  of  accounting  control.
