HB2261 Summary

• Amends Arizona Revised Statutes Section 35-151 regarding encumbrance documents required before budget units issue purchase orders against state appropriations.

• Clarifies that encumbrance documents are not required for reimbursements to employees for travel or expenses, gross payrolls and employee expenses, eligibility payments, required non-discretionary payments, and expenditures not exceeding $5,000 under state accounting manual procedures.

• Requires that all encumbrance documents be submitted to the state accounting system before processing and must be certified as authorized by appropriation and within available unencumbered balance.

• Authorizes the department of administration to require encumbrances for all state funds except investment of public monies or permanent endowment funds held by the state treasurer.

• Establishes that expenditures under section 35-191 must be encumbered regardless of dollar amount, except for those already exempt under the bill's exceptions.