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Advisory Number: 2
Date Issued: 06/01/2012 Date Last Updated: 01/30/2013
Advisory Name:

Critical Encumbrance Related Information Needed on the Single Transaction Summary or AC 340-S


Subject:

Using the STS/AC 340-S to identify the intended contract encumbrance amount and those contract transactions where an agency intends to encumber funds with a near-term lapse date.

Guidance:

Agencies are reminded that the Bureau of Contracts (BOC) has access to contract related encumbrance information in the Statewide Financial System only after the Purchase Order has been created and submitted by the agency.  This requires that certain information related to the contract encumbrance be provided by the contracting agency on the Single Transaction Summary / AC 340-S submitted with the contract/amendment:

  1. The intended encumbrance amount must be included on the STS/AC 340 so that BOC can assess the agency’s compliance with the OSC encumbrance policy.
  2. The agency must prominently note on the STS/AC 340 that it intends to submit a purchase order utilizing lapsing funds so that the transaction can be appropriately prioritized by BOC.
To facilitate timely processing of contract transactions that utilize funds with near-term lapse, agencies must prominently annotate the
AC 340-S
or STS with “LAPSING”. Lapse dates and associated date ranges for so annotating submitted transactions are identified in the Guide to Financial Operations, Chapter XI, 2.C, Encumbering a Contract.

References: Guide to Financial Operations, Chapter XI, 2.C, Encumbering a Contract