Page 6 - Fiscal Year End 2020 Procedures and Cutoff Dates for Client Agencies FINAL

U.S. Department of Agriculture

GENERAL INFORMATION

A. Obligations

When an event occurs that results in a legal liability to disburse funds from the Treasury, an
obligation arises. Obligations are to be recorded and supported by documentary evidence in
accordance with 31 U.S.C. §1501(a).
1. The following is a list of transactions that must be obligated
a. Contracts
i. The acceptance must be made in the same manner as the offer
ii. For indefinite quantity contracts, the obligation is made when a purchase
order is placed against the contract
b. Loans
c. Orders required by statute to be placed with a Government agency
d. Orders without advertising
e. Grants and subsidies payable from appropriations made for such payment in
amounts fixed by law, or under an agreement authorized by law, or under plans
consistent with and authorized by law
f. Pending litigation
g. Employment or services of persons or expenses of travel under law
h. Public utilities
i. Other legal liabilities
2. The amount to obligate should be the exact amount if it is known. If not, an accurate
estimate should be used and adjusted accordingly
It is preferential for all obligations to be submitted to ESB via form GSA form 300, “Order for
Supplies and Services.” Any supporting documentation in support of the obligation should be
attached if available when submitting the GSA 300. All obligations for FY2020 should be
submitted to ESB by September 14 to be included in FY 2020 activity.

B. Open Obligation Report (Aging Report)

The Open Obligation Report provides a listing of all Open Obligations as of a certain period of
time. Obligations that have not been fully liquidated, disbursed, expensed, paid, or outlaid will
appear on the report as an open obligation. This report is issued at the beginning of each
month and is dated as of the end of the previous month. It is important to reconcile this report
to your internal records to ensure all obligation/de-obligation/accrual/payment activity has been
recorded in Pegasys as requested.

Office of the Chief Financial Officer | FMLOB Provider | Pegasys Financial Services

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