After appropriations are authorized by the Legislature, the State Comptroller will establish appropriation and segregation control records based on the enacted legislation. These control records assure that no more than the amount authorized for agency-administered programs is spent.

The Statewide Financial System (SFS) also controls the accounting and release of payments during the fiscal year, contract encumbrances, and the carryover period for an appropriation. Outstanding liabilities, payable from prior year appropriations, may be paid from appropriations during the carryout or lapsing period.

During the carryout period, expenditures against prior year appropriations may only be made where there exists an outstanding liability incurred by the agency prior to the end of the fiscal year. For more information about appropriation accounting, lapsing periods, and liabilities, see Chapter VI – Budgets of this Guide.

Guide to Financial Operations

REV. 01/28/2015