Sec 35-190. Incurring obligations after close of fiscal year; lapsing appropriations; exceptions

A. Except as provided in section 35-191 no officer or other agency of the state shall, after the close of any fiscal year, incur or order or approve the incurring of any obligation or expenditure under any appropriation made by the legislature for such fiscal year, and no expenditure shall be made from or be charged to any appropriation made by the legislature for any fiscal year which has expired at the time the obligation for such expenditure was incurred.

B. The department of administration may draw warrants against the available balances of appropriations made for a fiscal year for a period of one month after the close of such fiscal year:

1. For payment of obligations incurred during the fiscal year for which such appropriations were made.

2. In fulfillment of contracts properly made during such year as determined by the director of the department of administration.

C. After expiration of such period of one month from the beginning of each fiscal year, all balances of appropriations for the prior fiscal year shall lapse and no further payments shall be made on any claim on account of expenditures of such prior fiscal year.

D. Appropriations for construction or other permanent improvements shall not lapse until the purpose for which the appropriation was made has been accomplished or abandoned, unless such appropriation is available during the entire fiscal year without an expenditure therefrom or encumbrance thereon.

E. Nothing in this section shall be construed to require reversion to the general fund of any balance derived wholly or partly from federal grants, earnings or other sources, and remaining in any special revenue, endowment, interest, redemption or suspense agency fund at the close of the fiscal year unless expressly so provided by law, or to require reversion to the general fund of any balance of fiscal year appropriations made for state institutions under the control of the Arizona board of regents.