What must be done with unused funds at expiration of appropriation for Economy Act Orders?

What must be done with unused funds at expiration of appropriation for Economy Act Orders?

• A. Reversion
• B. Reallocation
• C. Write-off
• D. Deobligation

Answer: (D)

When an appropriation for Economy Act Orders reaches its expiration, any obligation that was placed but is no longer needed must be canceled. This cancellation is called deobligation. Deobligating the unused portion removes the legal liability tied to that obligation and restores the funds so they can be used for other needs or returned to the Treasury as appropriate. It keeps your accounting accurate by not carrying forward obligations against an expired appropriation. Reversion refers to funds that lapse back to Treasury if they were never obligated, which is different from canceling an obligation that already existed. Write-off and reallocation do not apply to the process of cleaning up unused obligations at expiration.

When an appropriation for Economy Act Orders reaches its expiration, any obligation that was placed but is no longer needed must be canceled. This cancellation is called deobligation. Deobligating the unused portion removes the legal liability tied to that obligation and restores the funds so they can be used for other needs or returned to the Treasury as appropriate. It keeps your accounting accurate by not carrying forward obligations against an expired appropriation. Reversion refers to funds that lapse back to Treasury if they were never obligated, which is different from canceling an obligation that already existed. Write-off and reallocation do not apply to the process of cleaning up unused obligations at expiration.