Disbursed

Disbursed is the past participle of the verb disburse, meaning to pay out money from a fund or account to recipients. In financial and governmental contexts, disbursements are payments made from a central pool to individuals, organizations, or other entities.

Disbursement occurs in many settings, including government welfare programs, student loans, corporate budgets, grants, insurance payouts, and supplier payments. The timing and amount of disbursements are often governed by eligibility rules, funding availability, and contractual terms. Disbursements may be made in full or in installments and can be subject to holdbacks or verification checks.

Common methods of disbursement include electronic funds transfers, automated clearing house transfers, checks, and wire payments. The choice of method typically depends on speed, security, recipient preference, and the nature of the payment.

In accounting, a disbursement is recorded as a cash outflow and is associated with adjustments to liabilities or recognition of expenses, depending on the purpose of the payment. Thorough documentation and audit trails are essential to ensure compliance with laws and program requirements and to prevent fraud or overpayments. When errors occur, recoveries or recoupments may be pursued to reclaim improperly disbursed funds.

The term originates from dis- (apart) and burse (purse), reflecting money being taken out of a fund. See also disbursement as a related concept in budgeting and financial reporting.