Policies & Procedures



Section: PUR
Part: POL
Statement No.: 5.0
Date: 05/25/2012
University of North Carolina - General Administration
Administrative Policies and Procedures Manual
Title: Encumbrances



1.    Definition:

Encumbrances are accounting entries in the UNC-GA FRS (Financial Records System) that reserve or earmark funds for specific purposes in the departmental budget. This process ensures that fund availability is taken into consideration prior to any UNC-GA purchase, travel or other activity takes place.


2.       General:


a.     Funds may be encumbered using one of the following documents:


·         Purchase Orders

·         Personal Service Contracts

·         Real Property Leases

·         FRS encumbrance forms


b.     Encumbrances into the UNC-GA FRS are required for all purchase orders.


c.     An encumbrance may be liquidated in full or as a partial liquidation by the means of:


·         Accounts payable invoice payments referencing a purchase order

·         A cancellation of a purchase order. (See change order policy in Pur. Pol.    2.0)