Step 5: Encumbrances

Encumbrances are commitments made on behalf of TTUHSC, reserving funds for future purchases. Purchase orders are completed through TechBuy, which reduce the available spending budget balance on the award fund.

Establish any encumbrances needed for award expenses or move existing encumbrances to the new award fund (via the online PO/Encumbrance Change Request). Ensure encumbrances are established following proper institutional purchasing guidelines. Per institutional policy, a purchase order must be in place before the goods or services are provided to TTUHSC. Only authorized personnel may commit the institution to pay for such goods or services. Failure to follow purchasing processes will result in a non-compliant PO.

1. Non-compliant PO's will not be allowed on grant funds due to the audit risk this poses. When a TTUHSC grant is audited, it is not only audited against the grantor's guidelines and federal/state guidelines, but also against TTUHSC institutional policy. There are certain policies and procedures that must be followed because TTUHSC is a State of Texas agency. Failure to follow TTUHSC policies could result in an audit finding and possibly the return of grant funds.

>> Step 6: Cost Share / Subcontract Funds
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