When an encumbrance outstanding at year-end lapses, it is necessary to reappropriate the item in the following year to honor the encumbrance.

Question

Quizplus · Accepted Answer

When an encumbrance outstanding at year-end lapses, the funds are typically released back into the general fund or the specific fund from which they were originally encumbered, and do not require reappropriation in the following year unless the purchase or project is still intended to be pursued.

When an Encumbrance Outstanding at Year-End Lapses, It Is Necessary