Budgeting Cycle

The budgeting cycle for a Section 4 AT Act grantee should identify a specific target date for obligation and liquidation of the entire fiscal year grant award long before the final deadline for each. This is especially true when grant funds are used for external contracts for which there is no guarantee of funding being liquidated by the final deadline date. The obligation deadline for all grants is September 30 of the carryover year — 24 months from the award date. The liquidation deadline is December 31 of the carryover year — 27 months from the award date. A recommended budget cycle sets April 1 in the carryover year as the target date for liquidation of all funds in the prior fiscal year award. This target date provides ample time to address contractors not submitting invoices on time or other unexpected situations resulting in liquidations not occurring as expected.

Applied to a single fiscal year award, an appropriate budgeting cycle is as follows:

• Award start date of October 1

• Obligate and liquidate that award in the next 18 months

• Target liquidation date of April 1

• April through September is available to de-obligate and re-obligate if necessary

• October through December is available to liquidate if necessary

Using this kind of budgeting cycle will help ensure that all grant funds are liquidated in a timely manner.

Last updated January 2023