Which term describes funds that cannot be used for any purpose and are returned to the U.S. Treasury?

• A. Expired
• B. Available
• C. Deobligated
• D. Closed

Answer: (D)

Funds that can no longer be used and are returned to the U.S. Treasury are described as closed. When an appropriation or fund is closed, there is no remaining authority to incur new obligations or spend, and any unobligated balance is taken out of the agency’s accounts and returned to Treasury. This final status ensures that dollars tied to that funding aren’t accidentally used for anything else and that the government’s books reflect the return of those funds.

Think of it as the last step in closing out a funding source: it’s no longer active, and whatever money isn’t spent is sent back. Expiring funds, by contrast, simply reach the end of their period of availability for new obligations (though liquidations may still occur for a time), while available funds, and deobligated amounts, describe ongoing or adjustable spending authority.