To properly account for the receipt of goods or services ordered in a prior fiscal year,it is necessary to know which appropriations were affected when the encumbrance documents were issued.

Question

Quizplus · Accepted Answer

The appropriations of the year in which encumbrance documents were issued were charged for the estimated liability at the time the encumbrances were issued. In most jurisdictions the encumbered portion of the appropriation does not lapse at fiscal year-end and may properly be expended in the subsequent years when goods and services are received.

To Properly Account for the Receipt of Goods or Services