When a change in scope requires more funding to the contract, from which year will the funds be drawn?

• A. Award Year
• B. Current Year of Change
• C. Last Year
• D. Next Year

Answer: (B)

When a contract’s scope changes and more money is needed, the additional funds are obligated in the year the change occurs—the current year of change. This happens because appropriations are tied to the year they are available, and obligations for the added work must be supported by funds that are actually available at the time of the modification. Funds from the award year are limited to the original award, and last year’s funds have expired for new obligations. Next year’s funds aren’t usable for a change that is happening now, since the obligation must be made in the current year.