Encumbrances defined.
Nev. Rev. Stat. § 354.516
in effectEncumbrances means commitments related to unperformed contracts for goods or services, the accounting for which is used to ensure effective budgetary control and accountability and to promote effective cash planning and control. For reporting purposes, encumbrances outstanding at a years end represent the estimated amount of the expenditure ultimately to result if the unperformed contracts existing at the years end are performed. Encumbrances outstanding at a years end do not constitute expenditures or liabilities.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-354.htmlFetched: 10/4/2026