SP43-2009: Questions Relevant to State Obligation and Tracking of Improperly-Paid Funds and Additional Administrative Reviews

Last Modified: 12/05/2013
Wednesday, September 23, 2009

This memo is a reiteration of previous policy, not a change; however, because states have requested guidance on when to use their retained funds, as well as how to report these funds, we are emphasizing the following: States must obligate the retained funds in the same fiscal year in which they are retained, i.e., by September 30th of the fiscal year in which they retained the funds. Any unobligated funds will be recovered as part of the close out process.