State agencies will report fiscal year obligations by line item for each fiscal year
still open. A fiscal year is considered open until all obligations have been liquidated.
However, regardless of whether unliquidated obligations remain, 31 U.S.C. 1552 provides
that on September 30 of the fifth fiscal year after the period of availability for
obligation ends, the account closes and any remaining obligation or unexpended amounts
are cancelled and become unavailable for expenditure. Therefore, it is important that
States resolve all unliquidated obligations by that time. States will be unable to
recover funding for any unliquidated obligation once the account is closed.
States must submit a separate quarterly report by line item for each open fiscal year's
obligations as long as obligations remain unliquidated. The status of unliquidated
obligations--including an explanation of why unliquidated obligations remain--should
be given in a narrative statement accompanying the report.