If physically complete, receipt of property and final payment have been made, but excess funds remain, is there a statutory requirement to performance a modification to deobligate the excess funds on a purchase order? Or can the excess funds be deobligated without a contract action?
There is no statutory requirement to delete funds, unless you consider the FAR Part 1 requirement to be good stewards of the taxpayer's funds a legal mandate.
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Funds will be automatically deleted after 5 years from the expiration date for obligation of the type of funds used- in other words, O&M funds expire 6 years after being appropriated (1 year for obligation purposes, plus 5 years); R&D 7 years (2 years for obligation purposes, plus 5 years; and so on).
The real reason for doing the de-obligations is that your agency may be able to re-use the money if the obligation period hasn't expired yet - especially if you're working with R&D, Procurement or construction funding.