Section 4.04 - Late Penalty Encumbrance(1) Departments shall establish a miscellaneous encumbrance under Object Code 698 of the Commonwealth's Expenditure Classification Code in accordance with the MMARS Policy and Procedures Manual, as amended, to cover the amounts which the department estimates it will expend in late penalty interest.(2) For Fiscal Year 1988, (July 1, 1987 - June 30, 1988), departments may pay the late penalty interest from object Code 698 without an encumbrance.