The PEER Committee’s Deficit Spending in Mississippi State Government (FY 1990) took exception to the Department of Finance and Administration’s permitting agencies to pay for a prior year’s obligations with the current year’s appropriated funds. In order to follow up on state agencies’ compliance with legal spending limits established by the Legislature, the PEER Committee authorized this second review of year-end expenditures.
From a random sample of 277 general fund transactions made by various state agencies between July 1 and August 1, 1991, PEER identified twenty-six transactions (9.4% of the sample) in which state agencies incurred obligations during fiscal year 1991 but requested that the Department of Finance and Administration issue warrants to pay the obligations from fiscal year 1992 appropriations. The total dollar value of such transactions identified in the sample was $15,039 (3.2% of the dollar value of all transactions tested). Two agencies’ obligations represented deficit expenditures, as they exceeded those agencies’ remaining legal spending authority at fiscal year 1991 year end.
After reviewing the results of the random sample of general fund expenditures, PEER concludes that state agencies, as a whole, did not incur substantial obligations at the end of fiscal year 1991 to be paid from fiscal year 1992 appropriations.
For a paper copy of this report, contact PEER by telephone at 601-359-1226 or by e-mail at reports@peer.ms.gov.