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Ail "continuing contracts" automatically encumbe~ the appropriations for the new budget year on July 1 of that budgot ye,%r, ko the e×tent that the contract can legally bt ful£illed ia [;he I~ew year by the other contracting party. Ti]ere are two options for handling purchase orders and other contracts outstanc{ing at the end of the fiscal year. Those options 1. Continue to encumber the appropriation and pay thc 2. Cancel open p~rchase orders as of June 30 as the following day - July 1. The first of the two options listed above will be followed for all CabarFus County purchase orders and contracts outstanding at June 30th. llowever, several stipulations have been placed on encumbrance:: outstanding ir] order to assist the auditors ir] closing out tile previous year. The followli]g procedure will 13o u~:c.d for 1. The purchase order or contract will be held as an outstaading encumbrance until Augu~:t 15th. 2. On August 15th, all purchase orders that are outstanding from the previous year will be voided. 3. For prior year merchandise received after August 15th, a now purchase order will bo required aloi]g with a budget reviL:ion form specifying how the department plans to pay for the merchanclis~, that has not boom budgeted in the approved before the invoice will be paid. These procedures are designed to encourage departments to either bo certain that orders placed before Oune 30th will be received prior to August 15th or to budget these year-end items ~] the appropriate budget to insure that funds are available wh(~n the order is received. The latter can be accomplished by using the wording listed under the "continuing contracts" section above on the face of ti~e purchase order. This clause will allow an order ~o be placed prior to June 30th but chargec[ to the new budget year, To impleme;%t thin system the Finance Department will consider all purchase orders marked i~] this manner as "contlnulng contracts" and wi.L1 encumb(,r theJ~ appropri;itely. 14