This bulletin outlines procedures to follow when charging prior year obligations to current year funds, as authorized in the following.

State Finance Law Section 404(4) by Chapter 389 of the Laws of 1997:

• Every appropriation made from a fund or account to a department or agency shall be available for the payment of prior years' liabilities in such fund or account for fringe benefits, indirect costs, and telecommunications expenses and expenses for other centralized services fund programs without limit. Every appropriation shall also be available for the payment of prior years' liabilities other than those indicated above but only to the extent of one-half of one percent of the total amount appropriated to a department or agency in such fund or account. The provision expires on March 31,2000 but is expected to be extended.
• Additionally, some agencies' State Operations budgets authorize similar charges to current year appropriations for specific programs.
• Agencies are responsible for ensuring compliance with these legislative provisions. The following forms preparation instructions and report explanation will help agencies monitor their compliance.

• Agencies are to identify and report prior year obligations charged against current year funds on the CAS by entering the letter "P" in any of the three positions of the Statewide Accumulator field on vouchers and journal transfers. Documents without the required data will be rejected for agency correction.
  
• MIR Dates remain the date goods or services were received or the date an approvable invoice was received, whichever is later. Agencies are responsible for any prompt payment interest generated for a prior year obligation.

In order to assist agencies in monitoring these prior year charges, OSC provides agencies with a monthly expenditure report (Prior Fiscal Year Obligations Charged to Current Year - BUD200), which lists all prior year charges with the letter 'P' entered in any of the three positions of the Statewide Accumulator field. The report is cumulative fiscal year-to-date and groups charges by charge agency, fund, segregation attributes, cost center and process date. Totals are given for segregations, appropriations, funds, agencies and departments.