How do you handle expiring funds?

• A. Use them first, monitor, and reallocate or reprogram before lapse.
• B. Let them lapse without action.
• C. Deposit into savings accounts.
• D. Transfer to unrelated programs automatically.

Answer: (A)

When funds are nearing expiration, the priority is to obligate or expend them before the lapse and, if needed, reallocate or reprogram them to another approved activity that aligns with the original intent. This keeps money moving toward authorized goals and prevents waste.

Using them first means actively spending or committing them for eligible purposes before the deadline. Monitoring the timeline and unobligated balances lets you see when action is needed, and reallocation or reprogramming within approved authorities ensures the funds still serve a legitimate program objective even if the original project is wrapping up.

Why this approach fits best: it safeguards resources, maintains compliance with appropriation rules, and demonstrates responsible stewardship by maximizing the value of the funds before they expire.

Letting them lapse would waste resources and typically requires returning the funds. Depositing into savings or transferring to unrelated programs generally isn’t allowed for expiring funds, as they must be used for authorized purposes and within permitted reallocation rules.