ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session
	House: GE DP 13-0-0-0

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HB 2009: budget units; encumbrance documents; exception

Sponsor:  Representative Kavanagh, LD 23

House Engrossed

Overview

Clarifies that certain expenditures are exempt from encumbrance document requirements.

History

A budget unit is defined as any board, institution, commission, department or other agency of the state that receives, expends or disburses state monies or incurs obligations against the state.

An encumbrance is defined in statute as an obligation in the form of any contract, purchase order or other commitment that is chargeable to an appropriation or other authorized fund source and for which a part of the fund source is reserved.  When paid or canceled, it ceases to be an encumbrance (A.R.S. § 35-101).

Before a budget unit issues a purchase order or encumbrance document against appropriations to cover an obligation, actual or anticipated, an encumbrance document must be processed in the accounting system of the state.  Encumbrance documents are not required for the following:

1) Reimbursements to employees for travel or other incurred expenses;

2) Gross payrolls and related employee expenses of a budget unit;

3) Eligibility payments;

4) Required payments that are not discretionary; and

5) Expenditures not exceeding $5,000 under procedures prescribed in the state accounting manual (A.R.S. § 35-151).

Provisions

1. Clarifies that certain expenditures under current law are exempt from the requirements of encumbrance documents. (Sec. 1)

2. Makes technical and conforming changes. (Sec. 1)

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                        HB 2009

Initials SJ        Page 0 House Engrossed

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