Administrative Rules of Montana
Department 10 - EDUCATION
Chapter 10.10 - SPECIAL ACCOUNTING PRACTICES
Subchapter 10.10.1 - Obligation of Debts Incurred for the Purchase of Property
Rule 10.10.101 - VALID OBLIGATION CRITERIA FOR ENCUMBRANCES
Universal Citation: MT Admin Rules 10.10.101
Current through Register Vol. 18, September 20, 2024
(1) The district may encumber current year appropriations for valid obligations existing as of June 30th. Encumbrances outstanding at year end shall be added to current year expenditures to arrive at the budgetary basis expenditures for the year. Expenditures shall be reported on the trustee's financial summary using the budgetary basis.
(2) Criteria for determining whether a valid obligation exists are as follows:
(a) The cost of personal property, including
materials, supplies and equipment, ordered but not received may be encumbered
if a valid purchase order for the items was issued prior to June
30th.
(b) The cost of commitments
related to construction in progress may be encumbered if a legally binding
contract was signed and effective or a valid purchase order was issued prior to
June 30th. If performance under the contract is complete, or virtually
complete, the cost of the entire contract should be accrued.
20-9-102, 20-9-201, MCA; IMP, 20-9-102, 20-9-201, 20-9-209, MCA;
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