We are currently in the lapse period for FY24 state funds. See below for more information regarding what the lapse period is and how to ensure proper accounting during this important timeframe:
- The lapse period (which occurs annually during the first two months of each new fiscal year) is a timeframe established by the State of Illinois Comptroller which allows state agencies to finalize any outstanding accounting issues on the prior fiscal year’s state fund before the appropriation year is officially closed on August 31.
- The only expenses that are allowed to post to the prior fiscal year’s state fund during the lapse period are those where the expense was paying for goods or services which were received or contracted for on or before June 30.
- During the lapse period, the primary state fund for the prior fiscal year (100024) & current fiscal year (100025) are both open. Since both funds are open at the same time, it increases the risk of posting expenses meant for one fund to the other, and vice versa. Thus, it is important to regularly reconcile your state fund activity during July and August to ensure your expenses are posting to the correct state fund.
- To help prevent the miscoding of expenses, remember the following:
- The 100024 state fund can only be used for goods or services which were received or contracted for on or before June 30.
- The 100025 state fund can only be used to pay for goods or services which were received or contracted for on or after July 1.
- Once August business closes, the 100024 state fund will be terminated, and no further corrections or adjustments involving that fund will be allowed.
Contact
For further details, search on “State Funds” in the Search box of the Business & Finance Who to Ask list and reach out to the applicable subject matter expert on this topic.