A no-year appropriation is deemed closed when no disbursement occurs for how many full fiscal years?

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Multiple Choice

A no-year appropriation is deemed closed when no disbursement occurs for how many full fiscal years?

Explanation:
Two full fiscal years with no disbursement triggers administrative closure of a no-year appropriation. No-year funds remain available indefinitely for obligation and liquidation, but this rule prevents them from sitting unused forever. If any disbursement occurs, the clock restarts, so two consecutive fiscal years without outlays must pass before the appropriation is considered closed. When closed, any remaining unliquidated obligations are deobligated and the unobligated balance can be reallocated or returned as appropriate.

Two full fiscal years with no disbursement triggers administrative closure of a no-year appropriation. No-year funds remain available indefinitely for obligation and liquidation, but this rule prevents them from sitting unused forever. If any disbursement occurs, the clock restarts, so two consecutive fiscal years without outlays must pass before the appropriation is considered closed. When closed, any remaining unliquidated obligations are deobligated and the unobligated balance can be reallocated or returned as appropriate.

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