October 13, 2022 23:44 Updated Follow Yes, an open Purchase Order (PO) is a valid reason for encumbering fund. Related articles Are encumbrances required? Can payroll be encumbered? Do we need appropriation for Title IVD Incentive funds, Prosecutor and Clerk? Who may purchase from ICI Products? State/ Federal reimbursement grants: Do we need an appropriation? (Ex. Homeland Security)