REMINDER: Tomorrow is the last day for FY 2017 local fund govt purchases
Utility and personnel costs are exempted from the cutoff date for government purchases for the current fiscal year (FY 2017), according to a letter from ASG Budget and Planning Office director Catherine Saelua to cabinet members.
The letter also states that all outstanding commitments and encumbrances must be cleared and reconciled before the end of FY 2017, to prevent them from being rolled over to the new fiscal year (FY 2018) — which begins Oct. 1, 2017.
At last Thursday’s cabinet meeting, Saelua said her office has set Aug. 18th (tomorrow) as the cutoff date for purchases for all government agencies for FY 2017. She also said a letter regarding the cutoff date of purchase and closing ASG records for FY 2017 has already been sent out.
Saelua’s Aug. 7th letter on “FY 2017 year end closing for local fund accounts,” tells directors that it's once again that time of the year when each ASG agency needs to “revisit, reconcile, and clean out their respective accounts for the current year”.
Hence, to ensure a smooth transition towards the new fiscal year and the timely year-end closing for the ASG FY2017 financial books, the Budget Office would like to assist directors in making all the appropriate changes in charges and encumbrances to their accounts, she said.
She also provided guidelines in “planning for a successful” close of FY 2017 — which officially ends before midnight on Sept. 30th
“More importantly, this exercise will also assist in our commitment for ASG’s effort towards attaining a timely clean audit as well as a balanced budget at year end,” she said and explained that it's “mandatory” that all ASG departments’ purchases and orders be processed no later than Aug. 18th.
In addition to meeting the cutoff date, Saelua said all ASG departments and agencies are required to take several actions.
For example, “All outstanding commitments and encumbrances must be cleared and reconciled before year end to prevent any transactions from rolling into FY 2018, thus decreasing the budgeted allocation authorized for specified programs and funding.”
Additionally, all purchases must be routed through the Budget Office, Office of Procurement, and the Treasury Department before the designated cutoff date. However, any purchase requisitions prepared and processed after Aug. 18th will be returned to be encumbered in the FY 2018 budget.
Excluded from the cutoff deadline, according to the Budget Office director, are utilities and payroll expenditures.
Saelua also informed directors that invoices and receiving reports must be received and on file with the Accounts Payable division of Treasury before Aug. 18th to ensure payments are posted to FY 2017.
At last Thursday’s cabinet meeting, Gov. Lolo Matalasi Moliga said the government is making every effort to ensure that it does not overrun the FY 2017 budget.