Guide
What happens when the funds on a Building Partner Capacity case expire?
A Building Partner Capacity case is paid for with U.S. appropriations, and each appropriation runs through three phases: current, expired and cancelled. Once the funds expire they can no longer take on new obligations without an explicit approval, only adjustments and payments against obligations already made; once they cancel they are gone for any purpose, and a later bill must be met from current funds available for the same purpose. requires a case funded with cancelling funds to be closed by July 31st of the cancelling year.
What happens when the funds on a Building Partner Capacity case expire?
References
SAMM
- SAMM C15.1.4 — Appropriation Lifecycle.
- SAMM C15.1.6.7 — The Implementing Agency.
- SAMM C15.6.1.1.1 — Funds Selection for Prior Year Adjustments.
- SAMM C15.6.1.1.4.4
- SAMM C15.7.1 — General.
- SAMM C15.7.2 — Closure Facilitation.
- SAMM C16.2.6.3.2.1
Facts referenced
- Date in the cancelling year by which DSCA requires BPC cases and training grants funded with expiring/cancelling funds to be closed by the IA — July 31st (as of 11 September 2026) — SAMM C15.7.1
DSCA policy memoranda
- DSCA 11-06 — DSCA Policy Memo 11-06 — Execution and Closure Guidance for Pseudo Letters of Offer and Acceptance (Pseudo Cases) Financed with U.S. Appropriated Funds that have a Limited Period of Availability
Related
DSCA — Defense Security Cooperation Agency
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Cooperation Agency (DSCA) →
Period of Availability
The period of time established by Congress in which budget authority is available to incur new obligations.
SAMM Glossary, as of 12 September 2026
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Implementing Agency (IA)
The military department or defense agency responsible for the execution of military assistance programs. With respect to FMS, the military department or defense agency assigned responsibility by the Defense Security Cooperation Agency to prepare an LOA and to implement an FMS case. The implementing agency is responsible for the overall management of the actions that will result in delivery of the materials or services set forth in the LOA that was accepted by a foreign country or international organization.
SAMM Glossary, as of 12 September 2026
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Fiscal Year (FY)
The USG’s accounting period. It begins on October 1 and ends on September 30 and is designated by the calendar year in which it ends.
SAMM Glossary, as of 12 September 2026
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SCO — Security Cooperation Organization
SAMM Acronyms, as of 12 September 2026
Security Assistance (SA)
A group of programs authorized by federal statutes by which the United States provides defense articles, military training, and other defense-related services by grant, lease, loan, credit, or cash sales in furtherance of national policies and objectives, and those that are funded and authorized through the Department of State to be administered by Department of Defense/Defense Security Cooperation Agency, which are considered part of security cooperation.
SAMM Glossary, as of 12 September 2026
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DSAMS — Defense Security Assistance Management System
SAMM Acronyms, as of 12 September 2026
Glossary entry →Defense Security Assistance Management Systems (DSAMS) →
Letter of Offer and Acceptance (LOA)
The legal instrument used by the USG to transfer itemized defense articles, defense services, and design and construction services to foreign partners.
When used under the authorities provided in the Arms Export Control Act for Foreign Military Sales, the LOA is a binding agreement signed by the USG and the foreign partner to transfer such articles and services.
When used under Building Partnership Capacity (BPC) authorities, the BPC LOA is not signed by the Benefitting Partner.
SAMM Glossary, as of 12 September 2026
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Security Cooperation
Activities undertaken by the DoD to encourage and enable international partners to work with the United States to achieve strategic objectives. It includes all DoD interactions with foreign defense and security establishments, including all DoD-administered security assistance programs, that: build defense and security relationships that promote specific U.S. security interests, including all international armaments cooperation activities and security assistance activities; develop allied and friendly military capabilities for self-defense and multinational operations; and provide U.S. forces with peacetime and contingency access to host nations.
SAMM Glossary, as of 12 September 2026
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Problem Disbursements (PD)
A transaction reported to the Treasury Department's Bureau of Fiscal Services, but upon receipt at the official accounting station cannot be successfully matched to the original obligation or accounts receivable amount for liquidation purposes. Problem Disbursements include unmatched disbursements (UMDs), negative unliquidated obligations (NULOs), and in-transit disbursements made by disbursing officers. For purposes of this guide, Problem Disbursements are classified into two categories - UMDs (to include in-transits) and NULOs.
SAMM Glossary, as of 12 September 2026
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FMS — Foreign Military Sale
SAMM Acronyms, as of 12 September 2026
Trust Fund
A type of account, designated by law as a “trust fund,” regardless of any other meaning of the term “trust fund.” A trust fund account is usually either a receipt, an expenditure, or a revolving fund account (trust revolving fund account).
SAMM Glossary, as of 12 September 2026
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