Scenario: The appropriation to the state library system (fiscal year starts July 1) for fiscal 2018 was $15 million. On December 31, 2017, its budget reports showed expenditures of $7.5 million and encumbrances outstanding of $500,000. Quarterly allotments were as follows: Q1: $3.75 million; Q2: $4.5 million; Q3: $3.75 million; and Q4: $3 million. What was the status of system operations at that point?

A.System operations were over the plan by $250,000.

B.System operations were under plan by $250,000.

C.System operations were under plan by $750,000.

D.System operations were consistent with the plan; half the year had elapsed and half the money was spent.