BS5810 - Encumbering

1. Institutional Regulations
   
   To provide management information relative to projected expense Budget Balances, any significant expense will be encumbered against budgeted expense accounts at the time a contractual obligation has been approved for issuance of a Purchase Order or salary contract.
    
2. Procedure
   1. BASIS OF ENCUMBRANCES: Encumbrances will be made in the following instances:
      1. All permanent staff salaries, for amounts of fiscal year pay.
      2. Adjunct faculty and non-regular employees for amounts shown on Payroll authorizations.
      3. Approved Purchase Requisitions or Purchase Orders
   2. TIME SCHEDULE: Payroll encumbrances will be effected as of July l of each year, and adjusted thereafter as employee pay changes. Approved Purchase Requisitions will be encumbered upon data entry by the initiating staff member.
   3. COMPUTER LIQUIDATION: The computer accounting system will automatically liquidate a partial payment from an encumbrance for amount of the actual payment. Final or complete payments will cause 100% of the encumbrance to be liquidated.
   4. MANUAL LIQUIDATION
      1. To correct any computer encumbrance liquidation errors or for other reasons as noted in Item C above, or controller office personnel may manually liquidate an encumbrance.
   5. INQUIRIES
      1. Any inquiries regarding status of encumbrances should be directed to the Controller’s Office.