Arizona Laws 42-17108. Encumbering municipal monies to pay obligations after close of fiscal year
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A. A city or town may encumber monies at the end of a fiscal year for any liabilities incurred during that fiscal year and still outstanding at the end of the fiscal year.
Terms Used In Arizona Laws 42-17108
- 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.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
B. Payments may be made from encumbered monies for a period of sixty days immediately after the end of the fiscal year. After the expiration of the sixty day period:
1. Any remaining encumbered balance lapses.
2. No further payments may be made from the budget of the preceding fiscal year.