How to deal with fund that need to be spent this year spread over 3 years?

I work for a charity as a part-time bookkeeper. There is a lump sum of fund that need to be spent within this year (as required by government). What we need is a 3-year software contract. This means
that in reality, we are paying the software company year by year, but the government doesn't like to see the fund carry forward. How should I deal with this problem? The fund is "committed" as contract is signed but I need it to be shown as "spent".
The charity has several deparments. These dept, pay the Admin department a monthly admin fee. Although this is just an internal transfer, it provide the Admin dept funds to pay for admin things because this is the only dept that can't raise funds for itself. Can I book the other department as paying the admin department the full contracted amount, then on the dept account, the fund is spent, but it's for the admin dept to pay the software company their fee year by year.
Does this sounds correct? Or should I deal with this in another way?
Thanks for any advice.
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