Explain Year of Budget

Year of Budget (YOB): In this the fiscal year revenues and expenses are recognized. For revenues, this is usually the fiscal year whenever revenues are earned. For expenses, this is usually the fiscal year whenever obligations, comprising encumbrances, have been made during the accessibility period of the appropriation. Whenever the availability period of encumbrance of an appropriation is 1-year (example, most of the Budget Act items), YOB is similar as year of appropriation (YOA) and year of completion (YOC). Though, whenever the accessibility period is more than 1-year, YOB might be any fiscal year throughout the availability period, comprising YOA or YOC, as suitable. For illustration, an appropriation made in 2010-11 and is accessible for 3-years, the YOA is 2010 and the YOC is 2012. When an obligation is made in 2011-12, the YOB for this obligation is 2011. In the CALSTARS, YOB is termed to as funding fiscal year (FFY). The rules of recognition are not similar for all funds depending on the suitable basis of accounting for the fund kinds or other factors.

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