When does the execution phase of financial management occur?

The execution phase of financial management occurs when appropriated funds are spent because this phase involves the actual utilization of financial resources allocated for a program or project. During execution, the financial management team is responsible for monitoring expenditures, ensuring that funds are used according to the approved budget, and that all financial transactions comply with relevant laws and regulations. This phase is critical as it translates budgetary plans into real-world action, allowing for the effective implementation of the project's financial strategies.

Choosing this option highlights the practical aspect of financial management where the focus shifts from planning and approvals to actual spending, which determines whether the financial objectives of the program are being met.