Comptroller Fiscal Year Memo Letter Head

To:                 Legislative Leadership, Judicial Branch Administrators, Elected Officials, Secretariats, Department Heads, 
                      Chief Fiscal Officers, MMARS Liaisons, and Payroll Directors

From:            Martin J. Benison, Comptroller

Date:              July 14, 2014

Subject:         Official Opening of Fiscal Year 2015

Comptroller Memo FY#2015-05

Executive Summary

The FY2015 General Appropriation Act, Chapter 165 of the Acts of 2014, has been signed.  This memo announces that July 14, 2014 is the official “opening date” of the accounting system.  A deadline of July 25, 2014 is established for the alignment of encumbrances and expenditures with the enacted budget.

The Fiscal Year 2015 Budget has been signed.  All accounts in all funds have been recorded in MMARS and expenditure ceilings have been adjusted to reflect 2/12ths of the amount available for spending in all subsidiaries for all departments subject to the periodic allotment.  This establishes legal authorization for FY2015 obligations and expenditures as of July 14, 2014.  Therefore, the official “opening date” of the accounting system for FY2015 is July 14, 2014.  Late penalty interest can be requested by vendors if bills have not been paid 45 days after the receipt of the invoice or 45 days after July 14, 2014, whichever is later in accordance with 815 CMR 4.00 and the Commonwealth Bill Payment Policy.

Any accounting transactions that were processed under the House I revised structure must be recorded in conformance with the General Appropriation Act.  Departments should complete any payroll and non-payroll adjustments to conform to the FY2015 chart of accounts by July 25, 2014.

Departments may not request or accept performance, or otherwise incur obligation, in excess of Department appropriations and allotments (M.G.L. c. 29, §26 and §27).  Any reductions to expected spending levels for FY2015 budgetary accounts may require adjustments to previously executed contracts.  The link: Guidance for Contract Reductions[i] provides Departments with the procedures for suspending, amending or terminating contract actions that will be necessary to stay within your authorized spending limits.  Departments are responsible for properly recording activity to the appropriate fiscal year, and other fiscal actions in accordance with state finance law.  Additional required guidance may be found in the FY2015 Open Instructions[ii].  Departments are responsible for compliance with this guidance, including cited laws, regulations and policies.

If you have specific accounts for which you have questions or require additional guidance, please contact Donna Roux, Accounts Payable Director, at (617) 973-2314 or Kevin McHugh, Payroll Director, at (617) 973-2335.

Please distribute this memo to all pertinent personnel

cc:           General Counsels

                Internal Distribution