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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
budget units; encumbrance documents
Purpose
Specifies that an encumbrance document is not required for an administrative adjustment that meets statutory criteria for an exemption from encumbrance document requirements.
Background
An encumbrance document must be processed in the state accounting system before a budget unit issues a purchase order or encumbrance document against appropriations to cover an obligation. An encumbrance document is not required for: 1) reimbursements to employees for travel or other expenses incurred; 2) gross payrolls and related employee expenses of a budget unit; 3) eligibility payments; 4) required payments that are not discretionary; or 5) expenditures not exceeding $5,000, under procedures prescribed in the State Accounting Manual of the Arizona Department of Administration (A.R.S. § 35-151).
An encumbrance is an obligation in the form of any purchase order, contract or other commitment that is chargeable to an appropriation or any other authorized fund source and for which a part of the fund source is reserved (A.R.S. § 35-101).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
2. Makes technical and conforming changes.
3. Becomes effective on the general effective date.
House Action
GE 1/13/21 DP 13-0-0-0
3rd Read 1/28/21 58-0-2
Prepared by Senate Research
February 25, 2021
MH/gs