All unliquidated obligations and expired budget authority are canceled and deposited into Miscellaneous Receipts at the end of which period after the appropriation year expires?

All unliquidated obligations and expired budget authority are canceled and deposited into Miscellaneous Receipts at the end of which period after the appropriation year expires?

• A. At the end of the fourth year after expiration
• B. At the end of the fifth year after expiration
• C. At the end of the sixth year after expiration
• D. Immediately upon expiration

Answer: (B)

The rule being tested is that there is a five-year window to liquidate budgetary resources after an appropriation year ends. If, after that period, there are unliquidated obligations or expired budget authority still on the books, they are canceled and deposited into Miscellaneous Receipts. This five-year cutoff gives agencies time to settle outstanding obligations, but once the period ends, any remaining balances revert to the Treasury as miscellaneous receipts. So, once the appropriation year has expired, all unliquidated obligations and expired budget authority are canceled and deposited into Miscellaneous Receipts at the end of the fifth year after expiration. For example, if the appropriation year ended in 2020, by the end of 2025 those remaining items would be canceled and moved to MR.

The rule being tested is that there is a five-year window to liquidate budgetary resources after an appropriation year ends. If, after that period, there are unliquidated obligations or expired budget authority still on the books, they are canceled and deposited into Miscellaneous Receipts. This five-year cutoff gives agencies time to settle outstanding obligations, but once the period ends, any remaining balances revert to the Treasury as miscellaneous receipts.

So, once the appropriation year has expired, all unliquidated obligations and expired budget authority are canceled and deposited into Miscellaneous Receipts at the end of the fifth year after expiration. For example, if the appropriation year ended in 2020, by the end of 2025 those remaining items would be canceled and moved to MR.