May 3, 1996
FISCAL YEAR-END INSTRUCTIONS 96-3
|To:||All State Agencies|
|Attention:||Chief Fiscal Officer or Business Manager|
Agencies should review the State Accounting Manual (SAM) section on Appropriations for a discussion of the lapsing and continuing of the expenditure authority represented by an appropriation.
Of special importance is the requirement that agencies notify the Office of Policy and Management prior to June 1st of those budgeted appropriations which they believe qualify and are needed for continuance.
In general the following apply:
Lapsing Appropriations Renewed with a 1997 Appropriation:
No balances will be brought forward to the new year appropriation account. All unliquidated encumbrances will be recommitted automatically by the accounting system against the new year appropriation. Expenditures liquidating these commitments after July 1 will be charged against the new year appropriation.
All unexpended balances (unliquidated, unencumbered, unallotted) will be brought forward on July 1 to the new year appropriation account. All unliquidated encumbrances will be recommitted automatically by the accounting system against the new year. Expenditures processed after July 1 will be recorded as new year expenditures.
All continuing appropriations such as Federal and Other Grants or Insurance Recoveries should be reviewed and closed out prior to June 30 whenever possible.
Lapsing Appropriations Not Renewed with a 1997 Appropriation (one month carry-forwards)
These appropriations may be extended until July 31 for the purpose of liquidating obligations properly incurred in the "old year." The "unliquidated" balance of the appropriation will be brought forward on July 1 to a new year appropriation account. This balance will be available for liquidation until July 31st, at which time any remaining unliquidated balance will be lapsed.
The Comptroller will notify agencies with "one-month carry-forwards" of the appropriations concerned and the cut-off dates and procedures for submitting claims to the Accounts Payable Division.
First Quarter Allotments to Subsidiary Agencies
Parent agencies which distribute their first quarter allotments to subsidiary agencies are reminded that no expenditures or commitments can be processed by the subsidiaries until the distribution allotments are received by Accounting Services. Please submit these allotments to OPM leaving sufficient time to ensure their being received by the Comptroller by July 1st.
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