Abstract: Public Law 101-510 eliminated the merged "M" account and required that all unexpended appropriation balances cancel after a 5-year expired status.As a result, programs must use current appropriations to make payments chargeable against cancelled appropriations.While these changes in fiscal rules imposed needed financial discipline on acquisition programs, improvements in the contracting arena could reduce adverse program impacts.In addition, the current law and its implementation by OSD do not recognize somevalid acquisition funding requirements, the full impact on ov~rall program execution, and prudent financial management actions to avoid Antideficiency Act violations.Improving this situation will require coordinated efforts between the Air Force financial management and contracting communities, as well as