NRS 354.516 “Encumbrances” defined.
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/nv/chapter-354-local-financial-administration/354-516·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
NRS 354.516 “Encumbrances” defined. “Encumbrances” means commitments related to unperformed contracts for goods or services, the accounting for which is used to ensure effective budgetary control and accountability and to promote effective cash planning and control. For reporting purposes, encumbrances outstanding at a year’s end represent the estimated amount of the expenditure ultimately to result if the unperformed contracts existing at the year’s end are performed. Encumbrances outstanding at a year’s end do not constitute expenditures or liabilities.