M E M O R A N D U M
|To:||Legislative Leadership, Judicial Branch Administrators, Elected Officials, Secretariats, Department Heads, Chief Fiscal Officers, MMARS Liaisons, and Payroll Directors|
|From:||Howard Merkowitz, Acting Comptroller|
|Date:||July 11, 2011|
|Re:||Official Opening of FY2012||Comptroller Memo|
The FY 2012 General Appropriation Act, Chapter 68 of the Acts of 2011, has been signed. This memo announces that July 11, 2011 is the official "opening date" of the accounting system. A deadline of July 29, 2011 is established for the alignment of encumbrances and expenditures with the enacted budget.
The Fiscal Year 2012 Budget has been signed. All accounts in all funds have been registered in MMARS and expenditure ceilings have been adjusted to reflect 2/12 ths of the amount available for spending in all subsidiaries for all departments subject to the periodic allotment. This establishes legal authorization for FY 2012 obligations and expenditures as of July 11, 2011. Therefore, the official "opening date" of the accounting system for FY 2012 is July 11, 2011. 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 11, 2011, whichever is later in accordance with 815 CMR 4.00.
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 FY 2012 chart of accounts by July 29, 2011.
Any reductions to expected spending levels for FY 2012 budgetary accounts may require adjustments to previously executed contracts. This link Guidance for Contract Reductions provides Departments with the procedures for suspending, amending or terminating contract actions that will be necessary to stay within your authorized spending limits. 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).
If you have specific accounts for which you have questions or require additional guidance, please contact Michael W. Eyob, Accounts Payable Director, at (617) 973-2310 or Kevin McHugh, Payroll Director, at (617) 973-2335.
Please distribute this memo to all pertinent personnel.