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  • Question

    Once agency contacted me to ask, "Could we still deobligate some of the funds now that the appropriation has cancelled"? Does the FAR allow a Contracting Office to issue a modification solely for the purpose of deobligating the remaining ULO after funds have cancelled and or back date to 30 Sep and funds can be de-obligated in the accounting system once modification is issued and received by fund holder? IAW Audit Readiness, all transactions not cleared by 30 Sep, must be reported as a Contingent Liability (CL) and justification given. How long should a CL be reported? What regulations govern maintainence of reported liabilities?


    Answer

    The money is automatically deobligated 5 years after the funds expired for obligation purposes. Any FY08 appropriated funds or earlier are already gone. You can issue a unilateral modification to clean up the contract file and make a nice neat paper trail but the $ are no longer there.
     

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