What type of appropriation account is established to liquidate the existing obligations of a lapsed appropriation?

A successor appropriation account is specifically established to manage and liquidate the existing obligations of a lapsed appropriation. When an appropriation lapses, any remaining funds that have not been obligated are no longer available for new expenditures. However, obligations that have been incurred before the lapse can still be paid. The successor account allows for these obligations to be fulfilled without needing to re-appropriate new funds.

This mechanism ensures that the government can honor its financial commitments even after the initial funding period has ended. In practice, this helps maintain accountability and cash flow management within various departments, ensuring that outstanding obligations are met. Understanding this structure is critical for effective financial planning and compliance within federal funding processes.