Trial Court Budget: Encumbrances Judicial Council Meeting June 27, - PowerPoint PPT Presentation

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Trial Court Budget: Encumbrances Judicial Council Meeting June 27, 2014 Background 1% fund balance cap AOC legal analysis regarding encumbrances Consultation with the Department of Finance TCBAC to develop a policy on

Trial Court Budget: Encumbrances Judicial Council Meeting June 27, 2014
Background 1% fund balance cap • AOC legal analysis regarding encumbrances • Consultation with the Department of Finance • TCBAC to develop a policy on encumbrances for • Judicial Council consideration
Recommendations • Valid contract executed by June 30. Cannot state delivery next year. • Current fiscal year plus two subsequent fiscal years to liquidate • At the end of contract, unused funds above the cap in the year it was encumbered will revert to the originating state fund • Current year encumbrance cannot be increased after year is closed.
Recommendations • Fund balance should not be used for ongoing expenses. Rare exceptions for structural changes. • Cannot encumber contracts without defined deliverables or specific costs. • Encumbrances cannot be for more than three years
End of Presentation

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