End of Year Purchases

The Controller’s Office sends a memo to Department Heads in the end of March explaining the end of year procedures. More important than when the Purchase Order was issued is when the item is received. If it is received and invoiced in June, it MUST be paid in that fiscal year. If the Purchase Order is issued in June, but the item is not received until July, it MUST be paid in the new fiscal year. (On July 1, the Purchase Orders that have not been received will roll over into the next fiscal year’s budget.)

If you place an order with money left in your budget near the end of the fiscal year, you MUST receive the item before the end of June to have it paid from that year’s budget.

Every year the Controller sends out a memo stating that orders for the current year must be ordered by May 20th to ensure it is paid from the current year’s budget. If a large item (over $1,000.00) was ordered with a Purchase Order dated prior to May 20th and it will not be received before June 30th, the Department Head must request that amount be rolled over into the next year’s budget. It will be paid from the next budget year when received, but the funding is from the prior year’s budget which was carried forward. The auditing trail requires that it be paid in the fiscal year received.