1.0 GENERAL INFORMATION
 
1.1 Statutory References
 
Sections 4-31, 4-31a, Chapter 50 Part II, 3-39a and 13a-166, 3-20(g).
 
1.2 Definitions (4-69)
 
"Appropriation" means an authorization by the General Assembly to make expenditures and incur liabilities for specific purposes.
 
"Allotment" means a portion of an appropriation or special fund set aside to cover expenditures and encumbrances for a certain period or purpose.
 
"Encumbrances" means obligations in the form of purchase orders or contracts which are to be met from an appropriation and for which a part of the appropriation is reserved.
 
"Unencumbered balance" means that portion of an appropriation or allotment which has not been expended or encumbered.
 
"Unexpended balance" means that portion of an appropriation or allotment which has not been expended.
 
"Unliquidated encumbrances" means encumbrances which have not yet been paid or approved for payment.
 
"Expenditures" means amounts paid for all purposes, including expenses, provisions for retirement of debt and capital outlay.

1.3 Sources of Appropriations

Most appropriations result from one of the following:
 
A specific amount appropriated for a specific purpose by the General Assembly in a public or special act. An example is the annual Appropriation Act for each fiscal year (Exhibit 3-1).
ACCOUNTING MANUAL 3-1MAY 1988
A continuing statutory authorization to allow the appropriation of certain amounts which may become available or required for specific purposes. Examples are restricted grants or donations received by an agency (3-39a, 4-31a, 13a-166), insurance recoveries needed to repair or replace damaged property (4-31), or matching funds required to secure Federal grants (4-95a).
 
Transfers from other appropriations (4-84, 4-87, 4-94).
 
Allocation by the Bond Commission of previously authorized bonding to a specific project (3-20(g)).
ACCOUNTING MANUAL 3-2JANUARY 1987
2.0 APPROPRIATION CODES, TYPES, AND USES
 
2.1 Appropriation (SID) Coding
Specific appropriations are assigned a three-digit appropriation number by Central Accounting. These appropriation numbers are commonly referred to as Special Identifi-cation Codes - SID's.
 
 The appropriation number is unique only within the context of a specific fund and agency and therefore the "appropriation coding" is the entire Fund - Agency - SID combination:
  0000 - 1202 - 002 is
 
 General Fund-State Comptroller-Appropriation Number 002
  while 1201 - 5000 - 002 is
 
 Transportation Fund - Department of Transportation - Appropriation Number 002 
 
For ease of recognition, the following scheme is used in assigning appropriation numbers in the General and other budgeted funds:
 
001-099 - General and specific appropriations further defined in the following paragraphs. 
100-299 - RESERVED FOR FUTURE USE 
300-359 - Grants - Other than Federal 
360-399 - Restricted State Accounts 
400-599 - Federal Grants (other than letter of credit) 
600-699 - Other than Payments to Local Governments 
700-799 - Payments to Local Governments 
800-899 - Federal Grants - (letter of credit) - Block Grants 
900-998 - Federal Grants - (letter of credit) - Other than Block Grants
ACCOUNTING MANUAL 3-3 SEPTEMBER 1996
In Capital Project Funds (3000) a SID is assigned to each project authorized by the Legislature. There is no significance to the numbers assigned.
 
Special Revenue (other than budgeted funds), Internal Service, and Enterprise Funds are generally controlled by a single appropriation account per Fund/Agency. These appropriations are assigned SID 999. Trust and Agency funds have no "appropriations" but SID 999 should be used for coding all expenditure documents charging these funds. Other SIDs may be assigned by Accounting Services when requested by an agency.
 
2.2 Common Appropriations and Their Uses
The specific appropriations which are common to most State agencies and which, therefore, have a common identification code are as follows:
 
a. Personal Services, Coded to Special Identification 001: This appropriation is to be used only for actual direct personal services. These are personal service costs incurred in an employer-employee relationship, thus all expenses chargeable to this appropriation must be on a State payroll. Contractual services not on a State payroll may not be charged to this appropriation. The State payroll may be either the agency's own payroll or, if a transfer between State agencies, on the payroll of the creditor agency.
 
 Fringe benefits in the nature of vacation pay, holiday pay, overtime and shift differential which are normally included in gross compensation are also charged to this appropriation. All other fringe benefits such as health costs, employer's portion of Social Security, life insurance, etc. which are normally not included in gross compensation may not be charged to this appropriation. 
 
The character and major object of expenditure will always be 01.
ACCOUNTING MANUAL 3-4 SEPTEMBER 1996
b. Other Expenses, 002: This appropriation is to be used for the operating expenses of the agency as well as all miscellaneous purposes not included in some other appropriation. The items charged to this appropriation are those under the headings of contractual services, commodities (supplies) and sundry charges. The appropriation is not to be used for personal services, equipment, grant awards or capital outlays. The characters and major objects of expenditures will always be 02, 03 or 05.
 
 c. Budgeted funds, other than the General Fund, may also use 002 for revenue refunds.
Equipment, 005: This is used for the purchase of items which meet the definition of equipment. See the Coding section, Table #3.4. Expense Object/Character and Major Object - 09 of this manual for details. Included are payments under installment purchase agreements and capital leases. The major object will always be 09.
 
d. Current Expenses, 006: This appropriation when given to an operating agency is a combination of personal services and other expenses. When this appropriation is given as a nonfunctional appropriation, it is to be used for any category of expenditure consistent with the purpose of the appropriation. Any character and major object of expenditure may be used, consistent with the particular expenditure. Usually only the following codes will be applicable - 01, 02, 03 or 05.
ACCOUNTING MANUAL 3-5JANUARY 1987
e. Capital Outlay, 007: This appropriation is to be used for the purchase and construction of all lands and structures. Major repairs, which in "commercial accounting" would be "capitalized" are also chargeable to this appropriation. 
 
Item (13) of Section 4-69 presents an official definition and reads, "`Capital Outlay' means expenditures which result in the acquisition of additions to fixed assets". 
 
The character and major object of expenditures will be either 08 or 10.
 
f. Special or Restricted Equipment - 008, 009, 010 
 
These are used when the General Assembly appropriates funds for specific types of equipment, e.g. "educational equipment".
 
g. Specific Programs or Projects, 011-059: 
 
The General Assembly also appropriates funds for particular programs or projects. Special identification codes for these appropriations are serially coded from 011. Since a program for one agency has no relationship to that of another agency, the naming of 011 or 012, etc. in one agency has no necessary relationship to the same coding 011, 012, etc. in other state agencies.
 
h. FAC Acts Without Appropriations, 060-085:
 
 The General Assembly also passes individual public and special acts which appropriate sums for particular programs or purposes. Many, if not most, of these acts specify that the appropriation is to come from the sum appropriated to the Finance Advisory Committee in the appropriation act of the year concerned. These particular appropriations are coded 060 through 085. If the individual public or special act appropriates a sum for a particular program without specifying that the sum(s) so appropriated come from the sum appropriated to the Finance Advisory Committee, then the special identification will not be in the 060 series but will be the next number in the 011 series for the agency concerned.
ACCOUNTING MANUAL 3-6 OCTOBER 1990
i. Fiscal Year Appropriations, 086-098: 
 
Those appropriations which must be separated by fiscal year are assigned SIDs 086 through 098.
 
j. Insurance Recoveries, 099: 
 
These appropriations may be used only to rebuild, repair, or replace the damaged property for which the insurance recovery was received.
 
k. Reserved for special or future use, 100-299:
 
l. Other than Federal Grants - Continuing, 300-349:
 
 For appropriations of restricted gifts, non-Federal grants, donations, and other restricted revenues which come from any source other than the Federal Government (either directly or indirectly). The unexpended balance continues at fiscal year end.
 
m.Other than Federal Grants - Lapsing, 350-359: 
 
The same as (1) above except that the unexpended balance lapses at the end of the year.
 
n. Restricted State Accounts, 360-399: 
 
For appropriations funded from restricted revenues other than grants.
 
o. Federal Grants, 400-599: 
 
Restricted Federal Grants except for Block Grants (800's) and Letter of Credit grants (900's). These codes are used even where the grant is received indirectly through another State agency.
ACCOUNTING MANUAL 3-7MAY 1988
Other than Payments to Local Governments, 600-699: 
 
Under this category are various specific line item appropriations. With limited exceptions these are intended as state aid grants to individuals, organizations and other state units, but not to local governments. Unless there is a specific authority to the contrary, this appropriation is to be used only for state aid grants. The character of expenditure will normally be 07. IRS reportable payments for Medical Services should be coded to 02-380.
 
q. Payments to Local Governments, 700-799: 
 
Under this category are various specific line item appropriations. With limited excep-tions these are intended as State aid grants to units of local government. Unless there is specific authority to the contrary, this appropriation may be used only for State aid grants. A unit of local government is any unit listed in the coding section Table 3.5, Town Coding.
 
 The character of expenditures, unless there is specific authority to the contrary, will be 07. 
 
The Department of Education, in accordance with statute, utilizes a portion of some 700 appropriations for administrative expenses. This utilization is restricted in amount and that portion which may be so used will be transferred from the 700 coding to an 011 type coding. 
 
The Department of Transportation under the authority of Section 13-175e may, in addition to actual expenditures to local governments, make expenditures on behalf of such local governments.
ACCOUNTING MANUAL 3-8MAY 1992
r. Federal Grants - Block Grants - Letter of Credit, 800-899
and
Federal Grants - Letter of Credit, 900-998: 
 
These are restricted Federal grants which are funded by means of a letter of credit.
ACCOUNTING MANUAL 3-9JANUARY 1987
3.0 ALLOTMENTS
 
3.1 Appropriations and Allotments
 
While appropriations are authorizations to incur obligations for a particular purpose, these authorizations may not be exercised until, and only to the extent, that the Governor has approved the use of the appropriations. These approvals to expend appropriations are in the form of allotments.
 
 All Funds with the exception of Debt Service and Fiduciary Funds (Trust and Agency) require allotments.
 All Allotments must be requested on an Allotment or Appropriation Adjustment Request form (B-107) which is an Office of Policy and Management form. See page 3-19, for completion and description for the B-107. 
Allotments become effective on the date approved by the Governor except as follows:
  1. Those allotments which are Quarterly Allotments, with the exception of the first quarter of the fiscal year, become effective October 1, January 1, and April 1.
  2. The first quarter allotment may become effective June 16.
Questions concerning the requisition and processing of allotments should be addressed to the Office of Policy and Management. See Exhibits 3-2 and 3-3 for examples of properly completed B-107 forms.

3.2 Allotments for Nonbudgeted Funds

Allotments for nonbudgeted funds (all funds that do not receive an annual appropriation from the General Assembly or which are not financed by bond authorizations) are made from the resources or anticipated resources of the fund involved. To avoid excessive allotments in these funds, General Letter 185, issued jointly by the Comptroller and the Office of Policy and Management, provides for the following:
ACCOUNTING MANUAL 3-10JANUARY 1987
  1. The first quarter allotment request should be reduced by the estimated unexpended appropriation balance which will be continued from the prior fiscal year, and
  2. Fourth quarter allotments should not result in the total unexpended balance (unliquidated and unencumbered) exceeding the actual resources of the fund. See General Letter 185, March 31, 1981, for a detailed discussion of requirements and procedures.
ACCOUNTING MANUAL 3-11JANUARY 1987
4.0 LAPSING AND CONTINUING APPROPRIATIONS
 
4.1 General Guidelines
 
Lapsing means the cancellation of all or part of the authorization to make expenditures and/or incur liabilities which is represented by an appropriation. Lapsing may occur at any time during the year although it is most common at the end of a fiscal year. Continuing (carried forward) means bringing all or part of the unexpended balance of an appropriation forward on the appropriation ledger of the Comptroller so that expenditures and liabilities may continue to be incurred in the subsequent fiscal year.
 
In general, the following rules apply:
 
Type SID Lapse/Continue
Annual Budgeted Appropriations 001-098 Lapse
Annual Budgeted Appropriations 600-799 Lapse
Certain Non-Federal Restricted Appropriations 350-359 Lapse
Insurance Recoveries 009 Continue
Non-Federal Grants 300-349 Continue
Restricted State Appropriations 360-399 Continue
Federal Grants 400-599 Continue
Federal Grants 800-998 Continue
Nonbudgeted Funds All Continue
Capital Projects Funds All Continue
 
4.2 Exceptions
 
Exceptions to the above rules are made only if specifically authorized by the General Assembly. Common exceptions are:
 
a. No New Appropriation, 4-89(a) 
 
Appropriations which otherwise would lapse at the close of any fiscal year and for which no new appropriation is made in the following year may be continued for ONE MONTH to permit liquidation of obligations of the prior fiscal year.
ACCOUNTING MANUAL 3-12 JANUARY 1987
Since no obligations may be incurred against an appropriation without a commitment being transmitted to the Comptroller (4-98) ONLY THE UNLIQUIDATED ENCUMBRANCES balance is brought forward - the unencumbered and unallotted balances lapse.
 
 The continued portion of the appropriation will be for ONE MONTH ONLY and will lapse July 31.
 
Since the unliquidated is continued to the new fiscal year, payments during July should reference the new year.
 
b. Appropriations for Special Programs, Projects, or Studies, 4-89 
 
Appropriations for special programs, projects, or studies may be continued by order of the Secretary of the Office of Policy and Management if he is satisfied that the work of the program, project, or study is not completed and will continue during the following fiscal year.
 
c. Appropriations for No Specific Period, 4-89(d) 
 
Appropriations which are made by the General Assembly for no specific period (fiscal year) lapse on June 30 of the fourth year (or sooner if certified by the agency head that it is no longer needed).
 
d. Specific Exceptions for Agencies or Appropriations 
 
Some agencies and/or appropriations have various exceptions specifically authorized by statute.
 
e. Grants and Insurance Recoveries 
 
Continuing appropriations for Federal and Other than Federal Grants may have achieved their goal and remain with a balance. If the terms of the grant permit, these appropriations should be lapsed. If the terms do not permit, the remaining balances should be returned. See the Grants section for further details.
ACCOUNTING MANUAL 3-13 JANUARY 1987
Insurance recovery appropriations are similar and a request to lapse any unexpended balance should be submitted to Central Accounting if no longer needed.
 

4.3 Office of Policy and Management Approval

With the exception of insurance recoveries, budgeted appropriations are continued by the Comptroller only upon agreement with the Office of Policy and Management that such continuance is both authorized by law and needed for the purpose for which they were made. Agencies should therefore notify OPM prior to June 1st of those appropriations which they believe qualify and are needed for continuance. If in agreement, OPM will notify the Comptroller.

4.4 Accounting for Continuing and Lapsing Appropriations and Subsequent Expenditures

When an appropriation lapses, all unexpended balances lapse, i.e. the Unliquidated Encumbrances, Unencumbered Balance, and Unallotted Balance. The following outlines the treatment of appropriation balances, unliquidated commitments as of June 30 and subsequent expenditures against those commitments in the new fiscal year.
 
1. Continuing Appropriations 
- All balances are brought forward. 
- All unliquidated commitments as of June 30 are re-established by the central accounting system in the new year. 
- Expenditures (payments) will be processed through the normal liquidation procedure.
2. Lapsing Appropriations With A New Year Appropriation 
- No balances are brought forward. 
- The unliquidated commitments as of June 30 are re-established by the central accounting system in the new year, decreasing the new year unencumbered.  
- Expenditures (payments) will be processed through the normal liquidation procedure.
ACCOUNTING MANUAL 3-14 OCTOBER 1990
3. Lapsing Appropriations With No New Year Appropriation - The unliquidated balance only is brought forward. This balance is continued to the new fiscal year for one month to permit the liquidation of obligations. - Unliquidated commitments as of June 30 are re-established by the system in the new year for one month only and will lapse July 31. - Expenditures (payments) will be processed through the normal liquidation procedure during July and should reference the new fiscal year.
ACCOUNTING MANUAL 3-15JANUARY 1987

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