What is the purpose of a successor appropriation account?

The purpose of a successor appropriation account is to liquidate existing obligations of a lapsed appropriation. This type of account is established when an appropriation has expired or lapsed but still has outstanding obligations that need to be settled. By using a successor appropriation account, the government can honor those previously incurred obligations, ensuring that they are paid even though the original appropriated funds are no longer available.

This mechanism helps maintain fiscal responsibility and legal compliance while ensuring that services or goods received are paid for, even after the original funds have been exhausted. It allows agencies to continue their commitments without the need for new appropriations to cover those existing obligations. The focus is on settlement of prior debts rather than initiating new financial transactions or projects.