Unmatched Disbursements (UMD's) occur when?

• A. liquidation =/= obligation
• B. obligation > liquidation
• C. liquidation > obligation
• D. travel disbursements only

Answer: (A)

Unmatched disbursements arise when the amount or timing of a liquidation does not line up with the recorded obligation. In government accounting, an obligation is a funded commitment, while liquidation is the actual disbursement of funds. When funds are disbursed but there isn’t a matching obligation for that exact amount (or the timing doesn’t align), the records show a mismatch called an unmatched disbursement.

That’s why the correct idea is that liquidation is not equal to obligation. For example, if you obligated $5,000 for a vendor but only $3,000 is liquidated against that obligation, a discrepancy remains until the records are reconciled.

The other scenarios aren’t the standard definition of a UMD: having more obligation than liquidation is just a partial liquidation against the obligation, and having liquidation exceed the obligation points to an error or overpayment, not the typical mismatch. And unmatched disbursements can occur with any type of disbursement, not just travel.