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A State fish and wildlife agency may incur costs under a grant from the effective date of the grant period to the end of the grant period except for preaward costs that meet the conditions in § 80.94.Federal obligation of funds is a legal liability to disburse funds immediately or at a later date as a result of a series of actions. These actions must occur to obligate funds for the formula-based financial assistance programs authorized by the Acts:

(a) We send an annual certificate of apportionment to your agency, which tells you how much funding is available according to formulas in the Acts.

(b) You send your Regional Director an application for Federal assistance to use the funds available to you under the Acts and commit to provide the required match to carry out projects that are substantial in character and design. 

(c) Your Regional Director notifies you that he or she approves the application for Federal assistance and states the terms and conditions of the award.