EXPENDITURES - 8360-SEP-2020

(Revised: 09/2020)

Expenditures are normally classified in the same detail as budget appropriations and must be recorded in accordance with the state’s accounting policies. 

The amount of expenditures previously encumbered will increase the expenditures and decrease the unliquidated encumbrances.

The amount of expenditures not previously encumbered applicable to each appropriation will be recorded as expenditures. This will increase expenditures and decrease the unencumbered balance of the appropriation.

Personnel Services

Salaries and wages, and contributions for OASDI, health, dental, and vision care benefits paid under the uniform payroll system may be recorded in the appropriation from the Payroll Expenditure Register or from the documents that support the register, such as the Notices of State Payroll Revolving Fund Transfers and the Payroll Warrant Registers.

Operating Expenses and Equipment                                                                                      

All items scheduled for payment will be posted to the appropriation from the amounts shown on the invoices included in claims presented to the State Controller's Office (SCO).  Expenditures resulting from SCO’s transfer will be recorded from individual journal entries.

Abatements

A reduction to an expenditure that has already been made.  Only specific types of receipts are accounted for as abatements, these include refund of overpayment of salaries, rebates from vendors or third parties for defective or returned merchandise, jury duty and witness fees, and property damage or loss recoveries. Abatements are normally posted to the appropriation from the: (1) General Cash Receipts Register, (2) Invoice Register, or (3) Clearance Register.  The amount applicable to each appropriation is recorded as a credit amount in the expenditures. This entry will decrease the expenditure total and increase the unencumbered balance. The unliquidated encumbrance will be affected only if an encumbrance must be re-established.

Year-End Accruals

Expenditures and reimbursement accrued as of June 30 and liquidations of encumbrances resulting from such accruals will be posted to the applicable appropriations. See SAM sections 10602and 10608for accrual procedures.

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