Obligated Funds

Obligated Funds are funds that are set aside in the renewal/continuation account to pay for certain encumbrances.

Some sponsors (notably the National Institutes of Health, The National Oceanographic and Atmospheric Administration, the Department of Energy and the Department of Education) allow funding and certain encumbrances to be transferred from one budget period to the next to pay for those encumbrances. These encumbrances can be for goods and services that have been ordered, but not necessarily received, by the end date of the budget period.

If the sponsor allows this practice and funding is available, GCA transfers both the obligated funds and matching encumbrances to the next budget period during the budget closing and fiscal report preparation process.

GCA transfers only the encumbrances, but not the funding, to the next budget period if:

the sponsor does not allow obligated funds to be carried forward, or
funding is not available, or
the encumbrance is for one of the following:
- standing orders
- maintenance contracts
- service contracts
- anything encumbered after end date
- checking accounts
- liquidations in process
- dollar encumbrances
- field advances

Closing Process NOE Letter