A. Except as provided in section 35-191, an officer or other agency of the state, after the close of any fiscal year, shall not incur or order or approve incurring any obligation or expenditure under any appropriation made by the legislature for that fiscal year. An expenditure shall not be made from or be charged to any appropriation made by the legislature for any fiscal year that has expired at the time the obligation for such an expenditure was incurred.
Terms Used In Arizona Laws 35-190
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Claim: means a demand against the state for payment for either:
(a) Goods delivered or, in the case of highway construction, goods or facilities to be delivered by the federal government. See Arizona Laws 35-101
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Encumbrance: means an obligation in the form of any purchase order, contract or other commitment that is chargeable to an appropriation or any other authorized fund source and for which a part of the fund source is reserved. See Arizona Laws 35-101
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
B. The department of administration may draw warrants, checks or electronic funds transfer vouchers against the available balances of appropriations made for a fiscal year for a period of one month after the close of that fiscal year:
1. To pay obligations incurred during the fiscal year for which such appropriations were made.
2. To fulfill contracts properly made during the year as determined by the director of the department of administration.
C. One month after the beginning of each fiscal year, all balances of appropriations for the prior fiscal year lapse and further payments shall not be made on any claim due to expenditures for the prior fiscal year.
D. Appropriations for construction or other permanent improvements do not lapse until the purpose for which the appropriation was made has been accomplished or abandoned, unless the appropriation is available during the entire fiscal year without an expenditure from or encumbrance on the appropriation.
E. This section does not require reversion to the state general fund of any balance derived wholly or partly from federal grants, earnings or other sources, and remaining in any special revenue, endowment, interest, redemption or suspense agency fund at the close of the fiscal year unless expressly provided by law, or require reversion to the state general fund of any balance of fiscal year appropriations made for state institutions under the control of the Arizona board of regents.