Montana Agricultural Loan Authority, Department of Agriculture : Report On Examination of Financial Statements, Fiscal Year Ended.. 1984
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C. Encumbrances Encumbrances are recorded for purchase orders, contracts, and other commitments in order to reserve that portion of applica- ble appropriations for all funds. At fiscal year-end, in accordance with state policy, major qualifying encumbrances are reclassified as payables and charged as expenditures. D. Inventories Inventories consist of expendable supplies held for consump- tion. The cost is recorded as an expenditure at the time indivi- dual inventory items are purchased. The am...ount of supplies inventory on hand at June 30, 1984 was immaterial, E. Insurance The authority is insured through the Insurance Division of the Dep^'-tmenl - " Administration. 2. EMPLOYEES' RETIREMENT SYSTEM The authority's employees are covered by the Public Employ- ees' Retirement System (PERS). This plan is administered by the State of Montana. Under PERS, the state contributes 6.417 per- cent of an employee's gross wages to PERS. All eligible employees contribute 6.0 percent of gross wages. The authority's contribu- tion to PERS for the fiscal year ended June 30, 1984 was $1,806.
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