ABATEMENTS OF EXPENDITURES - 8366

(Revised and renumbered from 10220)

An abatement is a reduction of an expenditure that has already been made from an appropriation. Only the following types of receipts will be accounted for as abatements:

1. Refunds of overpayments of salaries (including (a) temporary disability receipts described in SAM section 8536 received either directly from the employee, or from the State Compensation Insurance Fund, and not given to the employee because to do so would result in an overpayment and, (b) employing state agency subrogation receipts described in SAM section 8285).
2. Rebates from suppliers or from third parties for defective merchandise, return of merchandise, return of empty containers, promotional purposes (e.g., incentives to purchase goods or services), or other reasons.
3. Jury duty and witness fees
4. Property damage or loss recoveries.
5. Sales tax collected—where an agency/department is supported by a legislative appropriation specific in amount, otherwise, the collection is to be credited to Other Current Liabilities, account 2090500 (Legacy account 3790) (see SAM section 8487);
6. Sales of items which were budgeted as an abatement (all other receipts from sales of items will be credited to revenue).
7. Merit award payments received from another agency or fund;
8. Employee payments for the private use of state resources such as personal long- distance telephone charges.
9. Denied boarding compensation payments from airline companies to individuals who are denied boarding on a flight. Such payments are to be credited to the travel expense allotment.
10. Repayments from employee organizations to reimburse agencies/departments for employee leave of absence time spent on collective bargaining issues (see SAM section 8594.4 and SAM section 8299).
11. Other abatements—Agencies/departments must obtain written approval from the Department of Finance, Fiscal Systems and Consulting Unit for situations not classified above.

Agencies/departments at times are reimbursed by other agencies/departments, persons, etc., for goods or services furnished or for payments made to others on their behalf. Such items are not to be accounted as abatements; these are considered reimbursements.

Credit abatements to the appropriation from which they were originally drawn (or to Refunds to Reverted Appropriations if the original appropriation has reverted   except for:

1. Receipts from sales of items which were budgeted as abatements will be abated to the appropriations from which the replacement items are purchased;
2. Sales tax collections ( SAM section 8487); and
3.  Rebates from vendors for return of empty containers will be abated to the current year expenditure account and augment the current year appropriations, unless the rebates are large amounts, result from transactions which are not of a regular recurring nature, and can be identified as an expenditure from a specific appropriation