LAC 4:V.3109. Expenditures

A. Expenditures, with the exception of payroll and payroll-related items, shall be recognized in the fiscal year in which the liability for the expenditure was incurred. Payroll and payroll-related expenditures shall remain on the appropriated basis. B. Obligations outstanding at the end of a fiscal year must be separated so there is a clear distinction between encumbrances and accounts payable. C. Encumbrances are defined as obligations for which the state is committed, but for which goods and/or services have not yet been received or rendered and accepted. An encumbrance becomes a liability when the goods are received and accepted or the services are rendered in accordance with terms of the service agreement or contract.