Financial Management: DOD's Use of Expired and Lapsed Appropriations

Abstract

Most appropriations for government activities, including DOD activities, are available for obligation for a finite period, normally one, two or three years. At the end of this period, the appropriations expire and are no longer available for incurring new obligations. The entire purchasing and payment cycle--establishing requirements, developing programs, contracting for goods and services, producing end items, modifying program elements, invoicing and paying of bills, and settling claims and adjustments--for government activities can take considerably longer than the period of time that the appropriations are available for obligation. Also, it is not always possible for agencies to precisely identify all costs they will incur on contracts, and adjustments are commonplace. Therefore, mechanisms have been established to pay bills as they become due or to fund increases to valid obligations recorded or incurred. These mechanisms are referred to as expired appropriations, "M" accounts, surplus, and merged surplus accounts.

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Document Details

Document Type
Technical Report
Publication Date
Sep 20, 1990
Accession Number
AD1174818

Entities

People

  • Nancy R. Kingsbury

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Agreements
  • Air Force
  • Air Force Aircraft
  • Aircrafts
  • Business Administration
  • Case Studies
  • Contractors
  • Contracts
  • Costs
  • Department Of Defense
  • End Items
  • Financial Management
  • Governments
  • Identities
  • Law
  • National Security
  • Payment
  • Procurement

Readers

  • Government Contracting/Procurement.
  • Public Financial Management and Budgeting