PRIOR YEAR APPROPRIATION ADJUSTMENTS - 8367

(Revised and renumbered from 10240)

Agencies/departments will accrue all items that have been recognized but not received or disbursed as of June 30 that eventually will be credited or charged to appropriations and executive orders of the fiscal year just ended.

Adjustments due to differences between the amount of expenditures, abatements, or reimbursements accrued and actual expenditures, abatements, or reimbursements as of June 30, will be debited or credited to  Prior-Year Appropriation Adjustments account 5802000 (Legacy account 9893) in the current fiscal year.

The adjustment above will not apply to appropriations available for more than one fiscal year unless the period of availability has expired. For such appropriations, adjustments will be accounted as current fiscal year expenditures and reimbursements if they occur during the period of availability of the appropriation.

Accruing expenditures and reimbursements as of each June 30 and accounting for the actual transactions as prior year appropriation adjustments allows the June 30 expenditure and reimbursement figures to be considered final upon closing the fiscal year. This eliminates the need to re-open accounts and prepare new statements because of minor differences between the accrual amounts and actual amounts. Agencies/departments are required to exercise sound judgment and care when accruing expenditures and reimbursements to prevent significant variations.