Reserves for encumbrances represent funds allocated for outstanding purchase orders as of June 30. The orders have been placed but NOT RECEIVED, and funds are available for the purchase.
If the order is RECEIVED but not yet paid, an accounts payable should be accrued. This is handled through the Office of Business Affairs and can be submitted by utilizing the Year-end Wizard. The difference in the accounts payable and the reserve for encumbrance is the receipt of the goods. If received, the entry is accounts payable. If an order has been made, has not been received, and funds are available, the entry is reserve for encumbrance.
In order to reserve funds for encumbrances and guarantee that funds will be carried forward, the departmental specialist or representative should request a Reserve for Encumbrance by completing the Year-end Wizard or a Budget Revision Form - Year-end reserve for encumbrance to the Office of Finance and Administration. The request requires proof of purchase to be provided (via campus mail, 224 Administration Building; facsimile, x7967; e-mail, email@example.com; or electronically using the wizard). Proof of purchase should include the department name, account number, vendor name, date of the order, amount(s) with respective commitment item(s), and a description of the goods/services purchased. All requests, via the wizard or a Budget Revision Form, should be completely approved and submitted to the Office of Finance and Administration on or before July 20.
The Office of Finance and Administration will process budget revisions at the beginning of the new year for all reserves for encumbrances. Remember that reserves for encumbrances will be entered only if funds were available at June 30.
All requests for reserves for encumbrances are due to the Office of Finance and Administration by July 20.
Budgeting and IRIS Reporting
General Financial Reporting >
(including BCS Reports)
Salary Budget >
(including Position Detail Report, Unbudgeted Positions, and Unfilled Budgeted Positions)
Budget Revision Form
Departmental budgets may be revised by submitting a Budget Revision Form to this office.
Reserve for Encumbrance
Reserves for encumbrances represent funds allocated for outstanding purchase orders as of June 30.