Cash Carryforward at Year End

There are two types of cash carryforwards processed at the end of the fiscal year - carryforwards of appropriated funds and carryforwards of unappropriated funds. Carryforwards of appropriated funds require authorization from the Office of State Budget and Management (OSBM) and usually represent outstanding encumbrances for unfulfilled obligations at year end. Carryforwards of unappropriated funds do not require OSBM authorization and represent cash balances from payments made to state agencies which are held for disbursement in the next fiscal year.
 

In both instances, manual or system check(s) are drawn payable to the issuing agency in the current fiscal year and are deposited to the credit of the same agency on the first day of the next fiscal year. Although these checks must go through Accounts Payable, they should not be flagged as an accrual during the 13th month accrual process.