(a)  The approval and acceptance of a grant agreement officially obligates funds for a given period.  Obligations establish a ceiling for awarded funds as distinguished from actual expenditures or payments of such funds.  In order to secure all obligated funds, the grant recipient must expend and earn the awarded funds in accordance with the approved grant agreement.  The ceiling in the grant agreement applies to the total of new and carry‑over funds.

(b)  The Department and its grant recipients may not officially obligate a fiscal year's funds prior to the beginning of that fiscal year. Grant agreements may be executed prior to the beginning date of the budget period only if they do not become effective until the beginning date and contain a statement to that effect.

(c)  No funds available to a grant recipient may be transferred to another grant recipient.  However, within the same fiscal year in which the funds are awarded, a grant recipient's funds can be reduced or terminated and then awarded to another grant recipient by the Department.


History Note:        Authority G.S. 143B‑10; 143B‑276; 143B‑277; 143‑323(d);

Eff. December 1, 1983;

Amended Eff. October 1, 1984;

Pursuant to G.S. 150B-21.3A, rule is necessary without substantive public interest Eff. April 25, 2015.