19-A-007 Statewide Encumbrance Policy - Amended (April 17, 2019)

This Informational Circular is issued to announce two changes to Policy Manual (PM) Filing 10,300 Statewide Encumbrance Policy. 

Amendments to the encumbrance policy:

1)  Currently an audit finding results when the budget date is subsequent to the service date or the order date.  Effective July 1, 2019, an audit finding will result when the requisition date is subsequent to the service date or the order date.

2)  Beginning July 1, 2019, a grace period will be allowed during the month of July to allow agencies time to enter encumbrances for the new fiscal year.  During the entire month of July, no audit findings will be issued based on a comparison of the requisition date to either the service date or the order date.

The provisions of PM Filing 10,300 should be followed in conjunction with all requisition and purchase order requirements issued through the Office of Procurement and Contracts. 

For guidance on fiscal year closing and determination for all obligations, please see PM Filing 14,002 Fiscal Year Closing Including Fiscal Year Determination.

Please note:  The following payments remain under review pending a determination of any encumbrance requirement:

• Payroll expenditures and remittance of payroll taxes, deductions and garnishments
• Single Pay voucher payments

Attachments:

PM Filing 10,300 Statewide Encumbrance Policy

Best Practices – Statewide Encumbrance Policy 

PM Filing 14,002 Fiscal Year Closing Including Fiscal Year Determination

Printable Version of 19-A-007