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  • Question

    The question is two fold can we fund next years support services contracts with years funds and where do I find the verbage?


    Answer

    You are wise to read up and understand the implications of the Anti-Deficiency Act, but the more relevant legislation at issue for your situation is the Bona Fide Rule. The Bona Fide Needs Rule restricts this year's funds from being used to fund next year's requirements. You can learn more about this important rule and its accompanying legislation at this link

    You'll see that there are two exceptions to the Bona Fide Need Rule for services. The exception pertaining to severable services may be the text that you recall reading. However, neither exception permits the obligation of current year's funds for a requirement that doesn't apply until a subsequent fiscal year. I don't know of any other statutory exception that would permit you to use your expiring funds. If there was such an exception widely available, there wouldn't be a scramble to obligate expiring funds at the end of each fiscal year, as is often the case in the federal Government. 


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