As per the changes identified in Laws 2017, 53rd Legislature, 1st Regular Session, Chapter 109 (SB1138), Section 1:

• The dollar threshold for the requirement to encumber appropriated funds was raised to $5000.00.
• Eligibility payments and required payments that are not discretionary were exempted from requiring an encumbrance.
• Reimbursements to employees for travel or other expenses incurred were exempted from requiring an encumbrance.

The necessary AFIS configurations have been made to accommodate the above changes for encumbrances.  This includes changes to the dollar threshold, changes to payment document codes, as well as changes to the edits for transfer type documents (ITI, ITA, IET, etc.).  Transfer documents on AFIS will no longer have an edit to require an encumbrance (i.e. it will be optional).  However, as required by the State of Arizona Accounting Manual, Topic 45, Section 15, if an agency is using a transfer document to pay for goods or services from another State agency, those funds must be encumbered.  

If your agency makes eligibility or non-discretionary type payments, and has not already been contacted by the GAO, please contact your AFIS liaison for further guidance.