35-151. Encumbrance documents; issuance and
disposition
A. An encumbrance document shall be processed in the state's accounting system
before a budget unit issues a purchase order or encumbrance document against
appropriations to cover an obligation, actual or anticipated, except that encumbrance
documents are not required for gross payrolls and related employee expenses of a budget
unit, or, under procedures prescribed in the state accounting manual of the department of
administration, for expenditures not exceeding one thousand dollars. Copies of these
documents shall be submitted immediately to or entered into the state accounting system
of the department of administration. The budget unit shall certify that the proposed
expenditure is authorized by appropriation and allotment and that the amount involved
does not exceed the unencumbered and unexpended balance of the appropriation as recorded
in the state's accounting system. If any proposed certified expenditure is found to
exceed the unencumbered and unexpended balance or to be contrary to the provisions of
this chapter or any other law, the head of the budget unit or his designee shall disallow
the proposed expenditure. If the encumbrance is found to be in order it shall be
immediately submitted or electronically transmitted to the department of administration
central accounting system, which shall not accept an encumbrance in excess of the
appropriation. The amount of the encumbrance shall be set aside to be used exclusively
for payment of the claim when presented. If an adequate appropriation balance is not
available, the accounting system shall reject the transaction.
B. The department of administration may require encumbrances for all funds of the
state, except for the investment of public monies or permanent endowment funds, which are
not appropriated but are held in custody by the state treasurer.
C. No encumbrance document may be approved by or for any budget unit which will
involve an expenditure of any amount in excess of the unencumbered and unexpended balance
of the appropriation or fund source to which the resulting expenditure will be
chargeable.
D. Notwithstanding subsection A of this section, an expenditure under section
35-191 shall be encumbered regardless of the dollar amount of the expenditure.
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