Common use of Obligation Deadline Clause in Contracts

Obligation Deadline. Unless superseded by program-specific statute or regulations or by other ACF program- specific policies, it is Office of Grants Management policy that the deadline for obligating Federal funds for mandatory grant programs is last day of the fiscal year following the fiscal year for which the award is issued. Example: Funds for an award issued for Fiscal Year 1 must be obligated no later than the final day (September 30) of Fiscal Year 2.