In 1990, the US Congress enacted legislation (§1405(a) of Public Law 101-510 amended 31 USC §§1551-1557) which requires all Federal agencies to close fixed year appropriation accounts and cancel any remaining balances by September 30th of the 5th year after the period of availability began. Federal grants, except those specifically exempted from the M-Year legislation, must be closed and remaining balances canceled by the lapse date. All State agencies should review expiring grant documents to ensure payments and disbursements are correctly posted to M-Year affected appropriation records. Early reconciliation and initiation of corrective actions will help prevent the needless loss of federal grant authority.

Guide to Financial Operations

REV. 06/07/2013