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Encumbrances

Encumbrances

General Information

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At the end of the fiscal year, some special procedures exist for carrying forward an encumbrance from the current year into the next fiscal year. The encumbrances are known as Committed Carryover, and represent either goods and services planned or ordered, but not delivered or completed until the next fiscal year, or approved multi-year projects that extend over several years prior to completion. Certain costs such as salaries and benefits of regular appointees, normal ongoing maintenance contracts, blanket orders, or travel items that are specifically associated with the on-going program may not be encumbered at year end to produce committed carryover. The encumbrance section of this document addresses the special year end encumbrance vehicles:

In addition to the special year end encumbrances, this section also discusses payroll encumbrances that are released (disencumbered) at the end of the fiscal year. 

Each of the encumbrance sections will address a definition of the encumbrance, procedures to initiate the encumbrance and monitoring requirements. Additionally, the following definitions apply throughout the encumbrance section:

Encumbrance: An amount recorded in the encumbrance data base that when appropriately summarized on a system generated report reduces funds available. An encumbrance does not necessarily reside in the purchasing data base, although the majority of encumbrance transactions do originate from the purchasing system.

Period of Performance: The time period specified in the applicable cooperative agreement, grant, or contract for the work to be performed thereunder.

Scope of Work: The intended and stated objective of the work to be performed under the applicable cooperative agreement, grant, or contract.

 



Last updated by dmoulton on August 16, 2017 - 3:51pm.
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