Dollar ($1.00) Encumbrances

1. What $1.00 encumbrances are:
   An encumbrance for $1.00 will appear on FIN screen 6 when charges to a requisition are different in amount than the total of the original order or when the items paid differ from the items ordered. There may or may not be pending charges, but the encumbrance remains on FIN at the nominal amount of $1.00.
    
2. What GCA does with $1.00 encumbrances upon closing a budget:
   Grant and Contract Accounting does not carry forward funds to the renewal budget number for dollar requisitions because generally there are no more coming charges after the encumbrance has been reduced to $1.00. However, GCA does transfer the requisition to the continuation account because this indicates to the department that there are unresolved issues that need to be addressed (i.e., needs liquidation or there are coming charges).

   The $1.00 requisitions, along with any others that are carried forward, are listed in an attachment to the Financial Status Report and the PI letter called the Outstanding Obligations listing. This attachment will detail the requisitions that have been moved forward and will include any $1.00 requisitions.

   For those budgets without a continuation account, $1.00 requisitions remaining at closing will be listed in the closing letter sent to the PI.
    

3. Departmental responsibility regarding $1.00 encumbrances:
   It is the department's responsibility to determine whether there actually are pending charges on the requisition and to take appropriate action. If there are pending charges on the requisition, it should remain open for those postings. If there are no charges coming through, the department should request liquidation of the encumbrance.

   Encumbrances are liquidated by submitting an email request to saf@u.washington.edu Liquidation requests for travel encumbrances will be forwarded to the Travel Office.

   It is important to submit these forms and get completed requisitions liquidated in a timely manner in order for GCA to properly close expired budgets.