1.    Definition:

Encumbrances are accounting entries in the UNC-GA FRS (Financial Records System) that reserve or earmark funds for specific purposes in the departmental budget. This process ensures that fund availability is taken into consideration prior to any UNC-GA purchase, travel or other activity takes place.

2.       General:

a.     Funds may be encumbered using one of the following documents:

·         Purchase Orders

·         Personal Service Contracts

·         Real Property Leases

·         FRS encumbrance forms

b.     Encumbrances into the UNC-GA FRS are required for all purchase orders.

c.     An encumbrance may be liquidated in full or as a partial liquidation by the means of:

·         Accounts payable invoice payments referencing a purchase order

·         A cancellation of a purchase order. (See change order policy in Pur. Pol.    2.0)