1. A. Expenditures, with the exception of payroll and payroll-related items, shall be recognized in the fiscal year in which the liability for the expenditure was incurred. Payroll and payroll-related expenditures shall remain on the appropriated basis.
2. B. Obligations outstanding at the end of a fiscal year must be separated so there is a clear distinction between encumbrances and accounts payable.
3. C. Encumbrances are defined as obligations for which the state is committed, but for which goods and/or services have not yet been received or rendered and accepted. An encumbrance becomes a liability when the goods are received and accepted or the services are rendered in accordance with terms of the service agreement or contract.

Authority Note

AUTHORITY NOTE: Promulgated in accordance with R.S. 39:91, R.S. 39:92.

Historical Note

HISTORICAL NOTE: Promulgated by the Office of the Governor, Division of Administration, LR 10:450 (June 1984).