Firm encumbrances reserve both spending authority and unencumbered cash at the time the encumbrance is recorded. Contingent - Contingent encumbrances are used for obligations that will be paid in the future from anticipated funds expected to be available when the obligation becomes due. Contingent encumbrances reserve spending authority but do not affect available unencumbered cash. Contingent encumbrances are not authorized for use in the State General Fund. A four-digit code used to classify expenditures by the type of goods or services purchased.
Firm Encumbrance See Encumbrance for information.
The annual accounting period for the state that runs from July 1 of one calendar year to June 30 of the next. Funds are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. General ledger accounts represent specific asset, liability, equity, budgetary, nominal, or memo accounts. Examples include expenditures, revenues, cash, firm encumbrances, appropriations, and other similar accounts. A four-character code that may be used to establish a financial reporting structure separate from the financial control structure imposed through budget units.