Payments

Policy

FIACCT 05-16_01 Payments – Prior year payment – reporting

Effective: July 1, 1995
Revised: February 1, 2010
Reviewed: February 1, 2010

Purpose

This policy explains the procedures to use to report old year payments paid in the new year that were not reported on accrued expenditure Internal Exchange Transactions (IETs).


Policy

Each agency is required to account for all payments made in a subsequent year that relate to the prior fiscal year. Those payments need to be reported to the Division of Finance so that Finance can log or identify all old year payments paid in the new year against the proper prior year line item. Agencies should include the old year line item number as part of the information they submit to Finance.


Background

All claims and payments for goods and services are to be expensed in the fiscal year in which they are
received, as required by the Budgetary Procedures Act (63J-1-217). If a bill or claim is received after a
fiscal year has closed and was not accrued as an old year expenditure, the code allows that the payment
can be made in subsequent years “if these claims do not exceed unexpended and unencumbered balances or appropriations for the years in which the obligation was incurred.”


Procedures

Responsibility

Action

NOTE: Due to the distributed nature of the FINET payment system, two methods of reporting may be used. Based on their needs, each agency may choose which method to use. For those departments filing their own documents, we recommend the first method.

Method One:
Agency

Pay the obligation.

Make a copy of the GAX or PRC or other payment document, the invoice, and other pertinent back-up information. Mark all documents OLD YEAR and COPY, and send them to Payables, Division of Finance, 2110 State Office Building, Salt Lake City, Utah 84114.

File the original at the agency, or send it to the Finance central files if you keep your files there.

Please write the appropriation line item number on the first page.

Method Two:
Agency

Prepare a Form FI 50.
Attach the appropriate originals of back-up information, all marked OLD YEAR, and send the form to Payables, Division of Finance, 2110 State Office Building, Salt Lake City, Utah 84114.

Please write the appropriation line item number on the first page.

Division of Finance

Enter the data from the GAX or PRC, and file the documents in the Division of Finance after recording them.

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