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Chapters:

3.2 Period of Availability of Funds

Expenditure of Funds

An expenditure is a charge made by a recipient or subrecipient to a project or program for which a Federal award was received. Expenditures may be reported on a cash or accrual basis as long as the methodology is disclosed and consistently used. See 2 C.F.R. § 200.34 (definition of “Expenditure”).

All obligations properly incurred by the end of the Federal award must be liquidated no later than 90 days after the end date of the award. If the award has been properly obligated, the full liquidation period is available for remaining expenditures. Any funds not liquidated at the end of the 90-day period will revert to the awarding agency.

The liquidation period exists to allow projects time to receive ordered goods and make final payments. No new obligations may be made during the liquidation period.

Disbursements made by recipients or subrecipients after the end of the award period but within the liquidation period MUST have documentation to demonstrate that the obligation was incurred BEFORE the end of the award period. For example, an invoice paid 25 days after the end of the award period must have an invoice date, purchase order date, or other documentation showing the date services were rendered prior to the end of the award period. Any funds not obligated by the recipient by the end of the award period will lapse and revert to the awarding agency.

information iconOJP Specific Tip

OJP recipients and subrecipients must complete performance during the award or obligation period. Performance as a result of a contract under a block/formula award may be completed during the liquidation period not to exceed 90 days after the end date of the award .

Example of Obligation, Expenditure, and Liquidation Periods
Period Example

Award/Obligation Period
Recipient’s Books
Federal Books

10/01/17 - 9/30/19
10/01/17 – 9/30/19
12/01/17 (Award Date)

Liquidation Period
(90 days after award end date)

10/01/19 – 12/29/19

line chart of expenditure, award, and liquidation periods

information iconFinancial Management Tip

The Grant Payment Request System automatically freezes funds 90 days after the end of the award!

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