 This section establishes the fact that , although recipients may receive various federal awards during their lifespan , the individual federal grants are awarded for a specified time period , usually one year . Federal regulations prohibit the use of funds from a grant award outside its specified time frame unless authorized by a federal agency , and auditors should verify that the recipient expends its grant during that time only . For example , a surplus from a federal award that starts on January 1 , 2006 and ends on December 31 , 2006 cannot be used after December 31 , because its lifespan has terminated . This surplus must be returned to the federal agency unless otherwise authorized . 
