Encumbrances

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  • February 8, 2013 at 12:43 am #176019
    flop310
    Member

    I am confused on which funds can encumbrances be reported. I believe its only for governmental funds. Not for Proprietary but what about for Fiduciary?

    Thanks!

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  • February 8, 2013 at 12:54 am #396458
    SeattleAccountant
    Member

    Only governmental-type government funds use encumbrances. Encumbrances are unique to General, Special Revenue, Debt Service, Capital Project and Permanent funds (GRaSPP).

    GRaSPP funds book a budget, book activity and record encumbrances (BAE) AND at the year end, close budget, close actual activity and reverse encumbrances (BAE).

    “BAE-BAE” 😉

    Fiduciary funds do not record encumbrances, they are on a full accrual basis (think of commercial accounting).

    hope that helps!

    Becker Class of Jan - Aug 2013: FARB DONE!!!!
    CPA license pending 🙂

    February 8, 2013 at 1:09 am #396459
    flop310
    Member

    I understand it now….Thank you so much!

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