1.0 General Information
1.1 Statutory References
Sections 4-31, 4-31a, Chapter 50 Part II, 3-39a and 13a-166, 3-20(g).
1.2 Definitions (CGS 4-69)
"Appropriation" means an authorization by the General Assembly to make expenditures and incur liabilities for specific purposes.
"Allotment" means a portion of an appropriation or special fund set aside to cover expenditures and encumbrances for a certain period or purpose.
"Encumbrances" means obligations in the form of purchase orders or contracts which are to be met from an appropriation and for which a part of the appropriation is reserved.
"Unencumbered balance" means that portion of an appropriation or allotment which has not been expended or encumbered.
"Unexpended balance" means that portion of an appropriation or allotment which has not been expended.
"Unliquidated encumbrances" means encumbrances which have not yet been paid or approved for payment.
"Expenditures" means amounts paid for all purposes, including expenses, provisions for retirement of debt and capital outlay.
1.3 Sources of Appropriations
Most appropriations result from one of the following:
A. A specific amount appropriated for a specific purpose by the General Assembly in a public or special act. An example is the Appropriation Act for each fiscal year.
B. A continuing statutory authorization to allow the appropriation of certain amounts which may become available or required for specific purposes. Examples are restricted grants or donations received by an agency (CGS 3-39a, 4-31a, 13a-166), insurance recoveries needed to repair or replace damaged property (CGS 4-31), or matching funds required to secure Federal grants (CGS 4-95a).
C. Transfers from other appropriations (CGS 4-84, 4-87, 4-94).
D. Allocation by the Bond Commission of previously authorized bonding to a specific project (CGS 3-20(g)).
2.0 Appropriation Codes, Types and Uses
2.1 Appropriation (SID) Coding
Specific appropriations are assigned a five-digit appropriation number by Central Accounting. These appropriation numbers are commonly referred to as Special Identification Codes - SID's.
The appropriation number is unique only within the context of a specific fund and agency and therefore the "appropriation coding" is the entire Fund - Agency - SID combination:
Example 1: 11000 - OSC15100 - 10020 is General Fund-State Comptroller-Appropriation Number 10020
Example 2: 12001 - DOT57000 - 10020 is Transportation Fund - Department of Transportation - Appropriation Number 10020
For ease of recognition, there is a schema used in assigning appropriation numbers in the General and other budgeted funds: The following are discussed below.
- Common Appropriations
- Specific Appropriations
- Grants & Payments
- Other than Local Governments
- Grants & Payments - Local Governments
- Revenues
- Federal Grants
- Non-Federal & Private Grants
- Restricted State Accounts
- Non-Budgeted Funds
- Grant TransfersIn Capital Project Funds (13000-13999 and 17000-17099) a SID (40000-49999) is assigned to each project authorized by the Legislature. There is no significance to the numbers assigned.
Special Revenue (other than budgeted funds + Grant Funds), Internal Service, and Enterprise Funds are generally controlled by a single appropriation account per Fund/Agency. These appropriations are assigned to a SID in the 40000-40999 range.
Trust and Agency funds have no "appropriations" but SIDs are in the 40000-49999 range and must be used for coding all expenditure documents charging these funds.
An agency must make all SID requests online in CORE-CT financials.
2.2 Common Appropriations and Their Uses
The specific appropriations which are common to most State agencies and which, therefore, have a common identification code are as follows:
2.2.1 Personal Services, Coded to Special Identification, 10010
This appropriation is used only for actual direct personal services. These are personal service costs incurred in an employer-employee relationship, thus all expenses chargeable to this appropriation must be on a state payroll. Contractual services not on a state payroll may not be charged to this appropriation. The state payroll may be either the agency's own payroll or, if a transfer between state agencies, on the payroll of the creditor agency.
Fringe benefits in the nature of vacation pay, holiday pay, overtime and shift differential which are normally included in gross compensation are also charged to this appropriation. All other fringe benefits such as health costs, employer's portion of Social Security, life insurance, etc. which are normally not included in gross compensation may not be charged to this appropriation.
The expenditure accounts for Personal Services expenditures will always be in 50xxx series. For a full listing of expenditure accounts to be used for personal services see: http://www.osc.ct.gov/StateAcct/chartfields/persserv.htm
2.2.2 Other Expenses, 10020
This appropriation is used for the operating expenses of the agency as well as all miscellaneous purposes not included in some other appropriation. The items charged to this appropriation are those under the headings of contractual services, commodities (supplies) and sundry charges.
The appropriation is not to be used for personal services, equipment, grant awards or capital outlays.
The accounts for Other Expenses expenditures will always be in the 51xxx, 52xxx, 53xxx, 54xxx, or 55xxx series. For a full listing of expenditure accounts see: http://www.osc.ct.gov/StateAcct/chartfields/purchserv.htm
All revenue refunds to a budgeted fund should be coded to SID 18010 - Revenue to the State.
2.2.3 Equipment, 10050
This appropriation is used for the purchase of items which meet the definition of equipment. Included are payments under installment purchase agreements and capital leases.
An expenditure account in the 55xxx will be used for these expenditures. For a full listing see:http://www.core-ct.state.ct.us/financials/asset/doc/lst_cptl_assts.doc
2.2.4 Minor Capital Projects, 10070-For DOT use with Fund 12001
This appropriation is used by the Department of Transportation for the purchase and construction of all lands and structures. Major repairs, which in "commercial accounting" would be "capitalized" are also chargeable to this appropriation. CGS Section 4-69 Item (13) presents an official definition and reads, "'Capital Outlay' means expenditures which result in the acquisition of additions to fixed assets".
2.2.5 Highway & Bridge Renewal Equipment, 10080-For DOT use with Fund 12001
This appropriation is used by the Department of Transportation for the purchase of equipment when the General Assembly appropriates funds for these specific capital equipment purchases.
2.2.6 Transit Equipment, 10090-For DOT use with Fund 12001
This appropriation is used by the Department of Transportation for the purchase of transit equipment when the General Assembly appropriates funds for these purchases.
2.3 Numbering Schema
2.3.1 SIDs - 12000s Specific Appropriations
These appropriations are used for particular programs or projects that the General Assembly identifies. Each appropriation is assigned a distinct number.
2.3.2 SIDs - 16000s Grants & Payments - Other Than Local Governments
These appropriations are used for specific line item appropriations. With limited exceptions these are intended as state aid grants to individuals, organizations and other state units, but not to local governments. Unless there is a specific authority to the contrary, this appropriation is to be used only for state aid grants.
The expenditure accounts will normally be in the 55000s series. IRS reportable payments for Medical Services should be coded to 51245 and 51250.
2.3.3 SIDs - 17000s Grants & Payments - Local Governments
These appropriations are used for state aid grants. The unit of local government is any unit listed in the Miscellaneous Section under Local Government Codes. The legislature may appropriate funds for other uses, and those are the only exceptions allowed in this series.
The expenditure accounts, unless there is specific authority to the contrary, will be 55070 and 55080.
The Department of Education, in accordance with statute, may make expenditures for administrative expenses. The amount is restricted and that amount will be transferred from the 17XXX coding to a 12XXX type coding.
The Department of Transportation under the authority of CGS Section 13-175e may, in addition to actual expenditures to local governments, make expenditures on behalf of such local governments.
2.3.4 SIDs - 18000s Revenues
SID18010 is the only SID in the 18000 series. It is used for revenue to the state. It is a budgeted fund and not an appropriation.
2.3.5 SIDs - 20050s Federal Grants
These appropriations are used for Federal Receivable and Federal Advanced Funded Grants. These SIDS are also used when federal money is transferred to another state agency. The unexpended balance continues at fiscal year end.
2.3.6 SIDs - 30000s Private Grants
For appropriations of restricted gifts, non-federal grants, donations, and other restricted revenues which come from any source other than the federal government (either directly or indirectly). The unexpended balance continues at fiscal year end.
2.3.7 SIDS 34900s Non-Federal Grants
These appropriations are federal funds that are passed through directly to a private source and then indirectly to a state Agency. The unexpended balance continues at fiscal year end.
2.3.8 SIDs - 35100s Restricted State Accounts
These appropriations are funded from restricted gifts, non-federal grants, donations and other than the federal government (either directly or indirectly). These appropriations typically have a statutory reference associated with them. The unexpended balance continues at fiscal year end.
2.3.9 SIDs - 40000s Non-Budgeted Funds
These appropriations are used for various projects or programs. These monies are approved by the bond commission. The State Bond Commission exists under the provisions of CGS Section 3-20. The statute designates the ten members of the State Bond Commission as follows:" �the Governor, the Treasurer, the Comptroller, the Attorney General, the Secretary of the Office of Policy and Management and the Commissioner of Administrative Services, each of whom may designate a deputy to represent him as a member at meetings of the State Bond Commission with full powers to act and vote in his behalf, and the co-chairpersons and the ranking minority members of the joint standing committee of the General Assembly having cognizance of matters relating to state finance, revenue and bonding, each of whom may designate another member of said joint standing committee, who is not a member of the State Bond Commission, to represent him as a member at meetings of the State Bond Commission with full powers to act and vote in his behalf."
2.3.10 SIDs - 90000s Grant Transfers
3.0 Allotments
3.1 Appropriations and Allotments
While appropriations are authorizations to incur obligations for a particular purpose, these authorizations may not be exercised and expenditures cannot be incurred until the authorized funds are allotted. All appropriated funds with the exception of Debt Service and Fiduciary Funds (Trust and Agency) require allotments, and allotments of appropriated funds require approval by the Governor.
Generally, annual appropriations for budgeted funds are divided into quarterly allotments based on the amounts estimated to be necessary to carry out the purposes of such appropriation during each quarter of such fiscal year. Prior to the start of each fiscal year, the Office of Policy and Management provides agencies with guidance and a software tool for allocating appropriations by quarter across the fiscal year. This allotment plan (also called a spending plan, allocation plan, or B-1 spending plan) forms the basis for quarterly allotments of funding to agencies.
All allotments must be requested on an Allotment or Appropriation Adjustment Request form (B-107) which is an Office of Policy and Management form. Allotments become effective on the date approved by the Governor except as follows:
A. Those allotments which are quarterly allotments, with the exception of the first quarter of the fiscal year, become effective October 1, January 1, and April 1 or the date the Governor signs such quarterly allotment, whichever is later.
B. The first quarter allotment is effective July 1 or the date the Governor signs such quarterly allotment, whichever is later. The first quarter allotment may, if warranted, become effective as early as June 16, pursuant to CGS Section 4-99.
Questions concerning the requisition and processing of allotments (up through approval by the Governor) should be addressed to the Office of Policy and Management. Questions regarding the processing of allotments subsequent to gubernatorial approval should be addressed to the Office of the State Comptroller.
3.2 Allotments for Non-budgeted Funds
Allotments for non-budgeted funds (all funds that do not receive an annual appropriation from the General Assembly or which are not financed by bond authorizations) are made from the resources or anticipated resources of the fund involved.
To avoid excessive allotments in these funds, General Letter 185, issued jointly by the Comptroller and the Office of Policy and Management, provides for the following:
A. The first quarter allotment request should be reduced by the estimated unexpended appropriation balance which will be continued from the prior fiscal year,
and
B. Fourth quarter allotments should not result in the total unexpended balance (unliquidated and unencumbered) exceeding the actual resources of the fund.
4.0 Lapsing and Continuing Appropriations
4.1 General Guidelines
Lapsing means the cancellation of all or part of the authorization to make expenditures and/or incur liabilities which is represented by an appropriation. Lapsing may occur at any time during the year although it is most common at the end of a fiscal year.
Continuing (carried forward) means bringing all or part of the unexpended balance of an appropriation forward on the appropriation ledger of the Comptroller so that expenditures and liabilities may continue to be incurred in the subsequent fiscal year.
In general, the following rules apply:
- Annual budgeted appropriations lapse
- Certain non-federal restricted appropriations lapse
- Insurance recoveries continue
- Non-federal grants continue
- Restricted state appropriations continue
- Federal grants continue
- Non-budgeted funds continue
- Capital project funds continue
4.2 Exceptions
Exceptions to the above rules are made only if specifically authorized by the General Assembly.
4.2.1 No New Appropriation, CGS 4-89(a)
Appropriations which otherwise would lapse at the close of any fiscal year and for which no new appropriation is made in the following year may be continued for one month to permit liquidation of obligations of the prior fiscal year.
Since no obligations may be incurred against an appropriation without a commitment being transmitted to the Comptroller (CGS 4-98) only the unliquidated encumbrances balance is brought forward - the unencumbered and unallotted balances lapse.
The continued portion of the appropriation will be for one month only and will lapse July 31.
Since the unliquidated is continued to the new fiscal year, payments during July should reference the new year.
4.2.2 Appropriations for Special Programs, Projects, or Studies, CGS 4-89(c)
Appropriations for special programs, projects, or studies may be continued by order of the Secretary of the Office of Policy and Management if he is satisfied that the work of the program, project, or study is not completed and will continue during the following fiscal year.
4.2.3 Appropriations for No Specific Period, CGS 4-89(d)
Appropriations which are made by the General Assembly for no specific period (fiscal year) lapse on June 30 of the fourth year (or sooner if certified by the agency head that it is no longer needed).
4.2.4 Specific Exceptions for Agencies or Appropriations
Some agencies and/or appropriations have various exceptions specifically authorized by statute.
4.2.5 Grants and Insurance Recoveries
Continuing appropriations for Federal and Other than Federal Grants may have achieved their goal and remain with a balance. If the terms of the grant permit, these appropriations should be lapsed. If the terms do not permit, the remaining balances should be returned. See the Grants section for further details.
Insurance recovery appropriations are similar and a request to lapse any unexpended balance should be submitted to Budget & Financial Analysis if no longer needed.
4.3 Office of Policy and Management Approval
With the exception of insurance recoveries, budgeted appropriations are continued by the Comptroller only upon agreement with the Office of Policy and Management (OPM) that such continuance is both authorized by law and needed for the purpose for which they were made.
Agencies should therefore notify OPM prior to June 1 of those appropriations which they believe qualify and are needed for continuance. If in agreement, OPM will notify the Comptroller.
4.4 Accounting for Continuing and Lapsing Appropriations and Subsequent Expenditures
When an appropriation lapses, all unexpended balances lapse (i.e., the unliquidated encumbrances, unencumbered balance, and unallotted balance). The following outlines the treatment of appropriation balances, unliquidated commitments as of June 30 and subsequent expenditures against those commitments in the new fiscal year.
4.4.1 Continuing Appropriations
- All balances are brought forward.
- All unliquidated commitments as of June 30 are rolled forward in Core-CT.
- Expenditures (payments) for those unliquidated commitments will be processed through the normal liquidation procedure.
4.4.2 Lapsing Appropriations With a New Year Appropriation
- No balances are brought forward.
- The unliquidated commitments as of June 30 are rolled forward in Core-CT and the new year unencumbered balance is decreased.
- Expenditures (payments) will be processed through the normal liquidation procedure.
4.4.3 Lapsing Appropriations With No New Year Appropriation
- The Office of Policy and Management will notify the Comptroller if funds can be carried forward to liquidate encumbrances.
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