What is meant by obligation and liquidation of CCDF?

Generally speaking, obligation is an action that commits the funds, such as a legally-binding agreement (e.g., contract or subgrant) between two parties for purchase of services, supplies or equipment.  Funds for CCDF services provided through a certificate (voucher) will be considered obligated when a certificate is issued to a family in writing.

Liquidation generally means the payment of funds as a result of an obligation. 

Under 45 CFR 98.60 (d), determination of whether funds have been obligated and liquidated will be based on applicable State or local law.  If there is no applicable State or local law, then definitions at 45 CFR 92.3   apply.  Regardless of State/local law, certain entities cannot be considered third party contractors or subgrantees for purposes of establishing an obligation (see 45 CFR 98.60 (d)(5)).