In this scenario, the described would be considered an unliquidated obligation.  The obligation has been incurred, presumably through a legally binding signed contract, during the budget period but has not been entirely paid out.  These funds will be available for awardees to fulfill the obligation until completely liquidated.  For the recipient to use these funds from a previous budget period the federal financial report (FFR) must show the unliquidated obligations.  A carryover request is not required for unliquidated obligated funds.