If you manage state funds, be aware that we are currently in the lapse period for FY26 state funds. Below is a quick overview of what this means and how to ensure accurate accounting during this important period:
- The lapse period, established by the State of Illinois Comptroller, occurs annually during July and August (the first two months of the new fiscal year).
- This period allows state agencies to finalize outstanding transactions and resolve accounting issues related to the prior fiscal year’s state funds before they are officially terminated on August 31.
- During the lapse period, both the FY26 state fund (100026) and the FY27 state fund (100027) remain open.
- Since both funds are open simultaneously, there is an increased risk of expenses being charged to the wrong fund.
- To help ensure expenses are recorded correctly, it is important to regularly review and reconcile activity in your state funds during the lapse period. During these reviews, remember the following:
- The 100026 state fund can only be used for goods or services which were received or contracted for on or before June 30.
- The 100027 state fund can only be used for goods or services which were received or contracted for on or after July 1.
- Once August business closes, the 100026 state fund will be terminated, and no further adjustments will be allowed.
Contact
If you have questions, contact UAFR’s applicable subject matter experts by searching “State Funds” in the Who to Ask list.
