Deobligation Guidebook
A Mandatory Reference for ADS Chapter 621
Partial Revision Date: 02/16/2024
Responsible Office: M/CFO/FPS
File Name: 621maa_021624
Overview
USAID's adherence to Federal laws, policies, procedures, and the related USAID guidelines has been the subject of numerous audits conducted by the United States Government Accountability Office (GAO) and the USAID Office of Inspector General (OIG). It is important to ensure that the amount of funding obligated is not over-budgeted, improves the use of scarce financial resources before available appropriations expire, and achieves the desired strategic objective. The instructions in this mandatory reference will strengthen the Agency's ongoing and semi-annual review per the Section 1311 review process (see Public Law 83-663, 31 USC 1501 of the Federal Managers Financial Integrity Act). This review process is essential to determine whether all the unexpended obligations and sub-obligations are valid, meet forward funding guidelines, and are needed to fulfil the intended scope. As part of this review, expired awards awaiting closeout must be reviewed and any excessive residual funds should be identified for deobligation. In addition, for closeout Missions, the guidance and instructions will speed the liquidation and closure of all remaining activities.
