Unobligated Balance [Agriculture]: A Comprehensive Legal Overview
Definition & Meaning
An unobligated balance refers to the portion of funds that have been authorized by the Research, Education, and Economics (REE) Agency but have not yet been committed or spent by the cooperator. To determine this balance, you subtract the total obligations from the total funds that have been authorized. Understanding unobligated balances is crucial for effective financial management in agricultural research projects.
Legal Use & context
The term "unobligated balance" is primarily used in the context of agricultural research funding and cooperative agreements. It is relevant in various legal and administrative practices within the agricultural sector. Organizations receiving funds from the REE Agency must track their unobligated balances to ensure compliance with funding regulations and to manage their budgets effectively. Users can utilize legal templates from US Legal Forms to help navigate the requirements associated with these agreements.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A research institution receives $100,000 from the REE Agency for a project. If they have spent $60,000 on project-related expenses, their unobligated balance would be $40,000.
Example 2: A cooperative agreement allows a farmer to access $50,000 in funding. If the farmer has only used $30,000, the unobligated balance would be $20,000.