Hi Angela,

If this came up in the context of whether the full acquisition cost of the property should be allocated to a sponsored project as opposed to depreciation and use allowance, A-21 section J-14 may be helpful also.

Zoya
________________________________
From: Research Administration List [xxxxxx@hrinet.org] on behalf of Katherine Tragos [xxxxxx@UTSA.EDU]
Sent: Wednesday, September 15, 2010 2:16 PM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] Question

This might help -
Encumbering funds, for example,  places a hold on it so that it can’t be used for another purpose.  When  a university requests that something is bought with a PO, the PO usually serves to encumber the funds – it reserves them / flags them on the account so that they are used for no other purpose than to pay for that order when goods are received.  (and if you end up not buying it – you have to disencumber the funds)

From: Research Administration List [mailto:xxxxxx@hrinet.org] On Behalf Of Robert
Sent: Wednesday, September 15, 2010 10:29 AM
To: xxxxxx@hrinet.org
Subject: Re: [RESADM-L] Question

Encumber is a legal term of art. That for you it carries a warning. Technically the definition is

To burden property with a legal or financial obligation that must be removed before ownership is free and clear. Property subject to an encumbrance<http://www.answers.com/topic/encumbrance?curtab=2351_1> may have a lien<http://www.answers.com/topic/lien?curtab=2351_1> or mortgage<http://www.answers.com/topic/mortgage?curtab=2351_1> imposed upon it.

Operationally, for you, without knowing the context, I suspect it indicates an obligation on your institution's part to do nothing that prevents any transaction that would otherwise be possible with the property.

On Sep 15, 2010, at 11:07 AM, Angela Willis <xxxxxx@UALR.EDU<mailto:xxxxxx@UALR.EDU>> wrote:
All!

Exactly what does it mean in the A-110 the term to "encumber property?"

Thank you!

Angela

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Angela Willis, MPA | Special Assistant
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 Dean of the Graduate School
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