FIACCT 04-01_00 Purchasing – year end closing

Effective: July 1, 1994
Revised: September 23, 2023
Reviewed: September 23, 2023

Purpose/Objective

1. This section of the Policy outlines the policies and procedures of the GovOps Division of Finance for yearend closing of purchasing transactions.

2. At fiscal yearend, several transaction types may still be outstanding in the procurement process that will be automatically closed out unless proactive steps are taken to allow those transactions to carry over to the new fiscal year. Some of these types of transactions are valid transactions with financial implications in more than one fiscal year. For example, encumbered funds for multiyear grants, projects and other contracts do not automatically carry forward to the new fiscal year and can have encumbrances in more than one fiscal year.

---

Policy

1. All transactions that affect appropriated funding in more than one fiscal year must have the GovOps Division of Finance approval through legislative non-lapsing authority in order to have funding carried over in accordance with UCA 63J-1-601.

2. Agencies should ensure that goods and services are accounted for and accrued in the year in which they are received.

3. At the end of each fiscal year the GovOps Division of Finance will carry forward into the new year any open encumbrance transaction as designated by the agency. Agencies select outstanding encumbrances to be carried forward on the RLPSD screen in FINET (see below for applicable transaction types). These “Purchase Order Rolls” will be conducted weekly for the first eight weeks of each new fiscal year.

Encumbrance Transaction Types:
a) Standard Requisition (RQS)
b) Master Agreement Requisition (RQM)
c) General Accounting Encumbrance (GAE)
d) Delivery Order (DO)
e) Centralized Purchase Order (PO)
f) Decentralized Purchase Order (PD)
g) Contract (CT)

4. All other encumbrance transactions in final status that remain unselected in the RLPSD table at the end of each fiscal year and after the last Purchase Order roll has been completed, will be automatically closed out (lapsed) at fiscal yearend.

5. If there are special circumstances that would require leaving a specific transaction open, contact
the GovOps Division of Finance at [email protected] for assistance.

6. A list of significant dates impacting the above transactions that an agency should consider are
published annually by the GovOps Division of Finance in the fiscal yearend closeout
documentation.