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Obligations Incurred Prior to an Encumbrance (16A Violation)
Minnesota Statute 16A.15 - Accounting System; Allotment and Encumbrance
Definition: Employees shall not commit the University to any kind of obligation, purchase or contract before funds are encumbered.
Policy: Making an obligation prior to an encumbrance in the Purchasing Control System is a violation of Minnesota Statute M.S. 16A.15 subdivision 3 and Minnesota Colleges and Universities Purchasing Policy 5.14.5 Part 5.
Procedure: The individual in violation must complete a 16A form. It is to be signed by the person responsible for the violation, the department head, appropriate Dean or V.P. and submitted with the invoice/contract/PO paperwork to the Office of Business Services.
16A violation forms are kept on file and are subject to review by internal and legislative audit.
Last Modified: 6/6/22 4:42 PM | Website Feedback