CHAPTER 2. FINANCIAL REORGANIZATION ACT OF 1947
IC 4-13-2
Chapter 2. Financial Reorganization Act of 1947
IC 4-13-2-1
Short title of act; definitions
Sec. 1. (a) This chapter may be known and cited as the "FinancialReorganization Act of 1947".
(b) This chapter applies to all agencies of the state. As used in thischapter, "agency" refers to every officer, board, commission,department, division, bureau, committee, employee, and otherinstrumentality of the state, including: state hospitals, state penalinstitutions, and other state institution enterprises and activitieswherever located, except, unless specifically included, the following:
(1) Military officers and military and armory boards of the state.
(2) The state fair commission.
(3) The supreme court and the court of appeals.
(4) the legislative department of state government including:
(A) the senate;
(B) the house of representatives;
(C) the legislative council; and
(D) the legislative services agency.
(5) State educational institutions.
(6) Persons and institutions under the control of an entitydescribed in subdivision (1), (2), (3), (4), or (5).
(7) All counties, cities, towns, townships, school towns,townships, and other municipal corporations or politicalsubdivisions of the state.
(c) As used in this chapter, "supplies", "materials", "equipment",and "services" means any and all articles and things, and all servicesother than personal, used by, or furnished to, any agency, includingprinting, binding, publication of books and records, repairs andimprovements, utility services, and any and all other servicesrequired for the maintenance, operation, or upkeep of buildings andoffices.
(d) The enumeration of the things specified in this section are notexclusive.
(Formerly: Acts 1947, c.279, s.1; Acts 1967, c.184, s.1.) As amendedby Acts 1981, P.L.31, SEC.1; P.L.30-1987, SEC.1; P.L.20-1990,SEC.1; P.L.5-1995, SEC.3; P.L.2-2007, SEC.35.
IC 4-13-2-1.5
State judicial and legislative departments; agency status;application of IC 4-13-2-5.2 and IC 4-13-2-19
Sec. 1.5. (a) Notwithstanding section 1 of this chapter, the term"agencies of state", "state agency", or "agency", as used in sections7, 19, 21, and 23 of this chapter, include the judicial and legislativedepartments of state government.
(b) Notwithstanding section 1 of this chapter, section 19 of thischapter applies to the judicial and legislative departments of stategovernment. (c) Notwithstanding section 1 of this chapter, section 5.2 of thischapter applies to a body corporate and politic.
As added by Acts 1981, P.L.32, SEC.7. Amended byP.L.336-1989(ss), SEC.2.
IC 4-13-2-2
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-3
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-4
Director of auditing
Sec. 4. The auditor of state shall be director of auditing by virtueof his office as auditor of state.
(Formerly: Acts 1947, c.279, s.4.) As amended by P.L.5-1984,SEC.48.
IC 4-13-2-5
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 4-13-2-5.1
Repealed
(Repealed by P.L.49-1997, SEC.85.)
IC 4-13-2-5.2
Contracts to provide supplies to body corporate and politic;submission of bids by trusts; contents
Sec. 5.2. (a) This section applies to a body corporate and politic.
(b) Whenever a contract to provide supplies to the body corporateand politic is awarded by competitive sealed bidding, a bid submittedby a trust (as defined in IC 30-4-1-1(a)) must identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
As added by P.L.336-1989(ss), SEC.3.
IC 4-13-2-6
Budget agency; powers and duties
Sec. 6. Subject to the applicable provisions of this chapter and toother laws not inconsistent with this chapter, the budget agency shallhave the following powers and duties respecting all agencies of thestate:
(1) To prescribe, with the approval of the commissioner of thedepartment of administration and the auditor of state, theprocedures to be used in submitting requisitions for supplies,materials, equipment, printing, and contractual services and themanner in which claims therefor shall be submitted. (2) To have such other powers and duties respecting allagencies of the state as may be imposed upon it by law ortransferred to it by the provisions of this chapter.
(Formerly: Acts 1947, c.279, s.6.) As amended by P.L.5-1984,SEC.49.
IC 4-13-2-7
Powers and duties of auditor of state
Sec. 7. (a) Subject to this chapter and other laws not inconsistentwith this chapter, the auditor of state shall, respecting all agencies ofthe state, do the following:
(1) Maintain the centralized accounting records for the state,keep the general books of accounts on a double entry basis, andmaintain accounts as will reflect in detail or in summary, allassets, liabilities, reserves, surpluses, revenues and receipts,appropriations, allotments, expenditures, and encumbrancesexcept as otherwise provided in this chapter. The accountingrecords and procedures must provide complete fiscal controlover all agencies of the state and over all activities carried on bythem and be upon forms, records, and systems approved by thestate board of accounts.
(2) Examine every receipt, account, bill, claim, refund, anddemand against the state arising from activities carried on byagencies of the state, approve each legal, correct, and properclaim, designate the account to be charged therefor, and issuethe auditor's warrant in payment thereof. The auditor of statemay authorize the disbursement through electronic fundstransfer in conformity with IC 4-8.1-2-7. All warrants andelectronic funds transfers shall be payable to the vendor orclaimant and in no instance shall the auditor issue any warrantor make any electronic funds transfer payable to an officer oragency in payment of several claims where the officer is todistribute or pay to the several claimants the amount due, exceptin the case of special disbursement officers as provided for inthis chapter. However, the auditor of state shall not be requiredto audit claims for any refunds made pursuant to IC 6-6-1.1 andIC 6-6-2.5.
(3) Examine each and every payroll or salary voucher submittedfor payment by each state officer or state agency and shall issuethe auditor's warrant in payment, payable to the officer oremployee or claimant, except as provided in subdivision (5). Inno instance shall the auditor issue the auditor's warrant payableto any officer or agency in payment of a payroll or schedule tobe distributed or paid to employees by the officer or agency.
(4) Keep an earnings record for each employee that shows grosscompensation, net compensation, items withheld for federal tax,public employees' retirement, teachers' retirement, or otherretirement, and any other deductions authorized to be deductedfrom earnings, and shall, as required by law, make settlementwith the proper officers, agents, or agencies for the deductions. (5) Authorize the electronic transfer of funds from the statetreasury to a designated deposit account in payment of a payrollor salary voucher on behalf of a state employee who has giventhe auditor written authorization to make the transfer underIC 4-15-5.9-2.
(6) Accept all documents and reports showing evidences of thecollection of state revenues by state agencies, evidences of thedeposit of the revenues, and evidences of the receipt thereof bythe treasurer of state and designate the fund or account to becredited.
(7) Have all other powers and duties respecting all agencies ofthe state as may be imposed upon the auditor by law ortransferred to the auditor by this chapter.
(b) The auditor of state may issue a warrant or make an electronicfunds transfer in conformity with IC 4-8.1-2-7 to a person who:
(1) has a contract with the state; and
(2) is entitled to payment under that contract;
without the certification required by IC 5-11-10-1.
(c) The auditor may not issue a warrant or make an electronicfunds transfer under subsection (b) except in accordance withprocedures adopted by the state board of accounts.
(d) The auditor is not personally liable for a warrant issued or anelectronic funds transfer made under subsection (b) if:
(1) the auditor complies with the procedures described insubsection (c); and
(2) funds are appropriated and available to pay the warrant orelectronic funds transfer.
(e) This subsection applies to a payment of less than five thousanddollars ($5,000). Notwithstanding any other law, the auditor of statemay elect to:
(1) not preaudit a payment; and
(2) process the payment with the state agency authorizing thepayment.
The state agency is accountable to the state board of accounts underthe board's post payment auditing procedures.
(Formerly: Acts 1947, c.279, s.7; Acts 1951, c.2, s.1.) As amended byP.L.5-1984, SEC.50; P.L.23-1985, SEC.2; P.L.25-1988, SEC.1;P.L.277-1993(ss), SEC.39; P.L.32-1995, SEC.5; P.L.6-1996, SEC.3.
IC 4-13-2-8
State board of accounts; powers and duties
Sec. 8. This chapter shall not be construed as divesting the stateboard of accounts of its powers and duties to prescribe for all stateagencies systems of accounts, statements, estimates, and the formreceipts, vouchers, bills, purchase orders, encumbrance documents,and demands with suitable instructions governing the installation anduse thereof; and to exercise supervision and control over the use ofthe same by all state officials and agencies of the state, but suchpower shall remain and be in the state board of accounts. All power,duty, and responsibility of making post-audits of all units of
government shall remain and be in and be exercised by the stateboard of accounts.
(Formerly: Acts 1947, c.279, s.8.) As amended by P.L.5-1984,SEC.51.
IC 4-13-2-9
Adoption of Rules
Sec. 9. The commissioner of the department of administration, thedirector of the state budget agency, and the auditor of state each mayadopt rules under IC 4-22-2 to carry out their respective powers andduties under this chapter.
(Formerly: Acts 1947, c.279, s.9.) As amended by P.L.24-1985,SEC.4.
IC 4-13-2-10
Repealed
(Repealed by Acts 1981, P.L.32, SEC.17.)
IC 4-13-2-11
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-11.1
Department of correction contracts using inmate labor andemployee supervision
Sec. 11.1. (a) Notwithstanding the other provisions of this chapteror IC 5-16-1 concerning the awarding of contracts, if a project is forthe rehabilitation, extension, maintenance, construction or repair ofany structure, improvement or facility under the control of thedepartment of correction, the department may purchase materials forthat project in the manner provided by law and use, without awardinga contract, its inmates to perform the labor and use its ownemployees for supervisory purposes if:
(1) they use equipment owned or leased by that department; and
(2) the cost of the project using employee or inmate labor isestimated by the department of administration to be less thanone hundred thousand dollars ($100,000).
(b) All projects covered by this section must comply with theremaining provisions of this chapter, and all plans and specificationsmust be approved by a licensed architect or engineer as required bylaw.
As added by Acts 1978, P.L.15, SEC.1. Amended by P.L.25-1985,SEC.1.
IC 4-13-2-12
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 4-13-2-12.5
Repealed (Repealed by P.L.49-1997, SEC.86.)
IC 4-13-2-12.6
Repealed
(Repealed by P.L.7-1998, SEC.12.)
IC 4-13-2-12.7
Repealed
(Repealed by P.L.7-1998, SEC.12.)
IC 4-13-2-13
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-14
Repealed
(Repealed by P.L.31-1987, SEC.21.)
IC 4-13-2-14.1
Contracts; approval of state officials; rules for electronic approval;file of information
Sec. 14.1. (a) A contract to which a state agency is a party mustbe approved by the following persons:
(1) The commissioner of the Indiana department ofadministration.
(2) The director of the budget agency. The director of thebudget agency is not required to approve a contract:
(A) for supplies under IC 5-22, unless the budget agency isrequired to approve the contract under rules or writtenpolicies adopted under IC 5-22; or
(B) for public works under IC 4-13.6, if the estimated cost ofthe contract is less than one hundred thousand dollars($100,000).
(3) The attorney general, as required by section 14.3 of thischapter.
(b) Each of the persons listed in subsection (a) may delegate toanother person the responsibility to approve contracts under thissection. The delegation must be in writing and must be filed with theIndiana department of administration.
(c) The Indiana department of administration may adopt rulesunder IC 4-22-2 to provide for electronic approval of contracts.Electronic approval may include obtaining the equivalent of asignature from all contracting parties using an electronic method thatdoes not comply with IC 5-24 (the electronic digital signature act),so long as the method allows the party to read the terms of thecontract and to manifest the party's agreement to the contract byclicking on an "ok", an "agree", or a similarly labeled button orallows the party to not agree to the contract by clicking on a"cancel", "don't agree", "close window", or similarly labeled button.Rules adopted under this subsection must provide for the following: (1) Security to prevent unauthorized access to the approvalprocess.
(2) The ability to convert electronic approvals into a mediumallowing persons inspecting or copying contract records toknow when approval has been given.
The rules adopted under this subsection may include any otherprovisions the department considers necessary.
(d) The Indiana department of administration shall maintain a fileof information concerning contracts and leases to which a stateagency is a party.
As added by P.L.31-1987, SEC.1. Amended by P.L.26-1989, SEC.4;P.L.33-1995, SEC.1; P.L.49-1997, SEC.12; P.L.262-2001, SEC.1;P.L.113-2010, SEC.8.
IC 4-13-2-14.2
Contracts of state agencies to be in writing; provisions required bystatute
Sec. 14.2. (a) Except as provided in subsection (b), a contract towhich a state agency is a party must be in writing.
(b) A contract is not required to be in writing if the contract iscreated under:
(1) IC 5-22-8;
(2) IC 5-22-10-4; or
(3) IC 4-13.6-5-5.
However, the attorney general, in rules adopted under section 14.3of this chapter, may require the state agency that is the party to thecontract to maintain on file invoices, bills, or other writings thatshow the contract was performed and the amount of payment that isdue.
(c) Subject to subsection (d), if a statute or rule requires aprovision to be part of a contract to which a state agency is a party,the provision shall be construed to be part of the contract eventhough:
(1) the contract is not in writing; or
(2) the contract is in writing but the provision is omitted.
(d) Provisions required by rule under subsection (c) apply only tocontracts awarded under IC 5-22-8.
As added by P.L.31-1987, SEC.2. Amended by P.L.33-1995, SEC.2;P.L.49-1997, SEC.13.
IC 4-13-2-14.3
Contracts of state agencies; review by attorney general for formand legality; advice to agency; forms
Sec. 14.3. (a) Except as provided in subsection (e), the attorneygeneral must review for form and legality contracts to which a stateagency is a party, unless the contract is not required to be in writingunder section 14.2 of this chapter.
(b) If the attorney general finds that a contract does not meet therequirements of law, the attorney general shall:
(1) disapprove the contract; (2) explain in writing to the contracting agency how thecontract is legally defective; and
(3) assist the agency to remedy defects that are found, ifpossible.
(c) If the attorney general finds that the form of a contract isinappropriate but that the contract is legal, the attorney general maydisapprove the contract and shall advise the agency how the form isdefective and how the form may be improved.
(d) The attorney general shall advise the contracting agency as tothe form and legality of the contract within forty-five (45) days afterits submission for review. If the attorney general does not advise theagency within forty-five (45) days after submission, the contract isconsidered to be approved.
(e) The attorney general may approve contract forms or, by rulesadopted under IC 4-22-2, contract types to be used by a state agencyand specify the conditions under which the approved forms or typesmay be used. An agency using a contract form or contract typeapproved by the attorney general is not required to submit individualcontracts using the forms or types for review by the attorney generalunder this section. Changes in an approved form or type must:
(1) be approved by the attorney general; and
(2) be made in accordance with IC 5-15-5.1-5.
(f) The attorney general may delegate to a deputy a power orresponsibility given to the attorney general under this section.
As added by P.L.31-1987, SEC.3.
IC 4-13-2-14.4
Contracts in lieu of appointing employees
Sec. 14.4. Before a state agency may enter into a contract forservices to be provided in lieu of appointing employees to availablepositions, the agency must justify the cost effectiveness of thecontract to the commissioner of the department of administration.
As added by P.L.31-1987, SEC.4.
IC 4-13-2-14.5
Revenue department; access to names of bidders, contractors, andsubcontractors; persons on tax warrant list
Sec. 14.5. (a) The department of administration may allow thedepartment of state revenue access to the name of each person whois either:
(1) bidding on a contract to be awarded under this chapter; or
(2) a contractor or a subcontractor under this chapter.
(b) If the department of administration is notified by thedepartment of state revenue that a bidder is on the most recent taxwarrant list, the department of administration may not award acontract to that bidder until:
(1) the bidder provides to the department of administration astatement from the department of state revenue that the bidder'sdelinquent tax liability has been satisfied; or
(2) the department of administration receives a notice from the
commissioner of the department of state revenue underIC 6-8.1-8-2(k).
(c) The department of state revenue may notify:
(1) the department of administration; and
(2) the auditor of state;
that a contractor or subcontractor under this chapter is on the mostrecent tax warrant list, including the amount owed in delinquenttaxes. The auditor of state shall deduct from the contractor's orsubcontractor's payment the amount owed in delinquent taxes. Theauditor of state shall remit this amount to the department of staterevenue and pay the remaining balance to the contractor orsubcontractor.
As added by P.L.26-1985, SEC.1. Amended by P.L.332-1989(ss),SEC.2.
IC 4-13-2-14.6
Salary agreements or adjustments; compensation plans; approval
Sec. 14.6. A salary agreement, salary adjustment, or compensationplan for the personnel of any state agency is not valid unlessapproved by the state budget agency, except where the amount ofcompensation or salary is expressly fixed or provided for by law.Schedules of salary ranges showing the current salaries of theemployees of all state agencies shall be filed in the office of thedirector of the state budget agency.
As added by P.L.31-1987, SEC.5.
IC 4-13-2-14.7
State agency employees working with children; sex crimeconvictions; dismissal
Sec. 14.7. A person employed, appointed, or under contract witha state agency, who works with or around children, shall bedismissed (after the appropriate pre-deprivation procedure hasoccurred) if that person is, or has ever been, convicted of any of thefollowing:
(1) Rape (IC 35-42-4-1), if the victim is less than eighteen (18)years of age.
(2) Criminal deviate conduct (IC 35-42-4-2), if the victim is lessthan eighteen (18) years of age.
(3) Child molesting (IC 35-42-4-3).
(4) Child exploitation (IC 35-42-4-4(b)).
(5) Vicarious sexual gratification (IC 35-42-4-5).
(6) Child solicitation (IC 35-42-4-6).
(7) Child seduction (IC 35-42-4-7).
(8) Sexual misconduct with a minor as a Class A or B felony(IC 35-42-4-9).
(9) Incest (IC 35-46-1-3), if the victim is less than eighteen (18)years of age.
As added by P.L.11-1994, SEC.1. Amended by P.L.12-1994, SEC.1;P.L.228-2001, SEC.1.
IC 4-13-2-14.8
State contractor or vendor; electronic funds transfer of payments;waiver
Sec. 14.8. (a) Notwithstanding any other law, rule, or custom, butsubject to subsections (c) and (d), a person who has a contract withthe state or submits invoices to the state for payment shall authorizein writing the direct deposit by electronic funds transfer of allpayments by the state to the person. The person's writtenauthorization must designate a financial institution and an accountnumber to which all payments are to be credited.
(b) After obtaining the authorization required by subsection (a),the auditor of state shall deposit a payment to the person in thefinancial institution and account designated by the person each timea payment is made to the person.
(c) A person who does not wish to have payments to the persondeposited by electronic funds transfer may request the auditor ofstate to grant a waiver of the requirement of subsection (a). Theperson must:
(1) state the reason for requesting the waiver; and
(2) sign and verify the waiver form.
(d) The auditor of state may grant a person's request for a waiverfor any of the following reasons:
(1) The person does not currently have a savings or checkingaccount and is unable to establish such an account within thegeographic area of the person's primary business locationwithout payment of a service fee. The person must submit withthe waiver request a written statement by the person's financialinstitution of the person's inability to establish an accountwithout the payment of a fee.
(2) The person's primary business location is too remote to haveaccess to a financial institution where a direct deposit can bemade.
(3) The person's financial institution is unable to accept anelectronic deposit or withdrawal. The person must submit withthe waiver request a written statement by the person's financialinstitution that the financial institution is unable to accept anelectronic deposit or withdrawal.
(4) The auditor of state determines that the facts of theparticular case warrant a waiver of the requirement ofsubsection (a).
The auditor of state shall establish a waiver form consistent with thissubsection.
(e) A contract entered into by the state must contain a provisionunder which the person contracting with the state specificallyauthorizes the auditor of state to make all payments to the person bydirect deposit by electronic funds transfer, subject to the waiverprovisions of subsection (d).
(f) Notwithstanding any other law, rule, or custom, a payment toa person by the state under this section discharges only the state'sobligation to that person to the extent of the amount of the payment
tendered, and does not constitute a settlement, reduction, release, orcompromise of the state's obligation to the person.
As added by P.L.144-2005, SEC.1.
IC 4-13-2-15
Repealed
(Repealed by P.L.31-1987, SEC.21.)
IC 4-13-2-16
State contracts and purchases; adverse or pecuniary interest ofofficers
Sec. 16. The commissioner of the department of administration,a member of his department, or a member of a standardizationcommittee may not be financially interested or have any personalbeneficial interest in any contract or purchase order for any supplies,materials, equipment, or services used by or furnished to any agencyof the state.
(Formerly: Acts 1947, c.279, s.16.) As amended by Acts 1978, P.L.2,SEC.406; P.L.14-1984, SEC.6; P.L.14-1986, SEC.3; P.L.18-1991,SEC.6.
IC 4-13-2-17
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-18
Appropriations; administration of allotment system; unauthorizedpayment by officers
Sec. 18. (a) For the purpose of the administration of the allotmentsystem provided by this section, each fiscal year shall be divided intofour (4) quarterly allotment periods, beginning respectively on thefirst day of July, October, January, and April. However, in any casewhere the quarterly allotment period is impracticable, the statebudget director may prescribe a different period suited to thecircumstances but not extending beyond the end of any fiscal year.
(b) Except as otherwise expressly provided in this section, theprovisions of this chapter relating to the allotment system and to theencumbering of funds shall apply to appropriations and funds of allkinds, including standing or annual appropriations and dedicatedfunds, from which expenditures are to be made from time to time byor under the authority of any state agency. However, the provisionsrelating to the allotment system shall not apply to moneys madeavailable for the purpose of conducting a post-audit of financialtransactions of any state agency. Likewise, appropriations forconstruction or for the acquisition of real estate for public purposesmay be exempted from the allotment system by the state budgetdirector, but in such cases he shall prescribe such regulations as willinsure the proper application and encumbering of funds.
(c) No appropriation to any state agency shall become availablefor expenditure until: (1) such state agency shall have submitted to the state budgetagency a request for allotment, such request for allotment toconsist of an estimate of the amount required for each activityand each purpose for which money is to be expended during theapplicable allotment period; and
(2) such estimate contained in the request for allotment shallhave been approved, increased, or decreased by the state budgetdirector and funds allotted therefor as hereinafter provided.
The form of a request for allotment, including a request by hand,mail, facsimile transmission, or other electronic transmission, shallbe prescribed by the state budget agency with the approval of theauditor of state and shall be submitted to them at least twenty-five(25) days prior to the beginning of the allotment period.
(d) Each request for allotment shall be reviewed by the statebudget agency and respective amounts therein shall be allotted forexpenditure if:
(1) the estimate therein is within the terms of the appropriationas to amount and purpose, having due regard for the probablefuture needs of the state agency for the remainder of the fiscalyear or other term for which the appropriation was made; and
(2) the agency contemplates expenditure of the allotment duringthe period.
Otherwise the state budget agency shall modify the estimate so as toconform with the terms of the appropriation and the prospectiveneeds of the state agency, and shall reduce the amount to be allottedaccordingly. The state budget agency shall act promptly upon allrequests for allotment and shall notify every state agency of itsallotments at least five (5) days before the beginning of eachallotment period. The total amount allotted to any agency for thefiscal year or other term for which the appropriation was made shallnot exceed the amount appropriated for such year or term.
(e) The state budget director shall also have authority at any timeto modify or amend any allotment previously made by him.
(f) In case the state budget director shall discover at any time that:
(1) the probable receipts from taxes or other sources for anyfund will be less than were anticipated; and
(2) as a consequence the amount available for the remainder ofthe term of the appropriation or for any allotment period will beless than the amount estimated or allotted therefor;
he shall, with the approval of the governor, and after notice to thestate agency or agencies concerned, reduce the amount or amountsallotted or to be allotted so as to prevent a deficit.
(g) The state budget agency shall promptly transmit records of allallotments and modifications thereof to the auditor of state.
(h) The auditor of state shall maintain as a part of the centralaccounting system for the state, as hereinbefore provided, recordsshowing at all times, by funds, accounts, and other pertinentclassifications, the amounts appropriated, the estimated revenues, theactual revenues or receipts; the amounts allotted and available forexpenditure, the total expenditures, the unliquidated obligations,
actual balances on hand, and the unencumbered balances of theallotments for each state agency.
(i) No payment shall be made from any fund, allotment, orappropriation unless the auditor of state shall first certify that thereis a sufficient unencumbered balance in such fund, allotment, orappropriation, after taking into consideration all previousexpenditures to meet the same. In the case of an obligation to be paidfrom federal funds, a notice of federal grant award shall beconsidered an appropriation against which obligations may beincurred, funds may be allotted, and encumbrances may be made.
(j) Every expenditure or obligation authorized or incurred inviolation of the provisions of this chapter shall be void. Everypayment made in violation of the provisions of this chapter shall beillegal, and every official authorizing or making such payment, ortaking part therein, and every person receiving such payment, or anypart thereof, shall be jointly and severally liable to the state for thefull amount so paid or received. If any appointive officer oremployee of the state shall knowingly incur any obligation or shallauthorize or make any expenditure in violation of the provisions ofthis chapter, or take any part therein, it shall be ground for hisremoval by the officer appointing him, and if the appointing officerbe other than the governor and shall fail to remove such officer oremployee, the governor may exercise such power of removal aftergiving notice of the charges and opportunity for hearing thereon tothe accused officer or employee and to the officer appointing him.
(Formerly: Acts 1947, c.279, s.20; Acts 1953, c.135, s.1.) Asamended by Acts 1981, P.L.32, SEC.13; P.L.28-1983, SEC.10;P.L.6-1996, SEC.4.
IC 4-13-2-19
Appropriations; lapse; exceptions; recognition of encumberedfederal funds
Sec. 19. (a) Except as specifically provided for in appropriationacts, every appropriation or part thereof remaining unexpended andunencumbered at the close of any fiscal year shall lapse and bereturned to the general revenue fund. However, an appropriation forpurchase of real estate or for construction or other permanentimprovement shall not lapse until the purposes for which theappropriation was made shall have been accomplished or abandoned,unless such appropriation has remained during an entire fiscalbiennium without any expenditure therefrom or encumbrancethereon.
(b) Except as otherwise expressly provided by law, the provisionsof this section shall apply to every appropriation of a stated sum fora specified purpose or purposes heretofore or hereafter made fromthe general revenue fund, but shall not, unless expressly so providedby law, apply to any fund or balance of a fund derived wholly orpartly from special taxes, fees, earnings, fines, federal grants, orother sources which are by law appropriated for special purposes bystanding, continuing, rotary, or revolving appropriations. (c) In the case of federal funds encumbered by a state agency thatis the recipient of the federal grant, for purposes of meetingreimbursements that are to come due after the expiration of thefederal grant, the state agency's encumbrance on its ledgers shall berecognized as valid by the auditor of state for one (1) year or until themoney is expended, whichever is sooner.
(Formerly: Acts 1947, c.279, s.21.) As amended by P.L.28-1983,SEC.11.
IC 4-13-2-20
Advance payments; special disbursements
Sec. 20. (a) Except as otherwise provided in this section,IC 12-17-19-19, or IC 12-8-10-7, payment for any services, supplies,materials, or equipment shall not be paid from any fund or statemoney in advance of receipt of such services, supplies, materials, orequipment by the state.
(b) With the prior approval of the budget agency, payment may bemade in advance for any of the following:
(1) War surplus property.
(2) Property purchased or leased from the United Statesgovernment or its agencies.
(3) Dues and subscriptions.
(4) License fees.
(5) Insurance premiums.
(6) Utility connection charges.
(7) Federal grant programs where advance funding is notprohibited and, except as provided in subsection (i), thecontracting party posts sufficient security to cover the amountadvanced.
(8) Grants of state funds authorized by statute.
(9) Employee expense vouchers.
(10) Beneficiary payments to the administrator of a program ofself-insurance.
(11) Services, supplies, materials, or equipment to be receivedfrom an agency or from a body corporate and politic.
(12) Expenses for the operation of offices that represent thestate under contracts with the Indiana economic developmentcorporation and that are located outside Indiana.
(13) Services, supplies, materials, or equipment to be used formore than one (1) year under a discounted contractualarrangement funded through a designated leasing entity.
(14) Maintenance of equipment and maintenance of software ifthere are appropriate contractual safeguards for refunds asdetermined by the budget agency.
(15) Exhibits, artifacts, specimens, or other unique items ofcultural or historical value or interest purchased by the statemuseum.
(c) Any agency and any state educational institution may makeadvance payments to its employees for duly accountable expensesexceeding ten dollars ($10) incurred through travel approved by: (1) the employee's respective agency director, in the case of anagency; and
(2) a duly authorized person, in the case of any state educationalinstitution.
(d) The auditor of state may, with the approval of the budgetagency and of the commissioner of the Indiana department ofadministration:
(1) appoint a special disbursing officer for any agency or groupof agencies whenever it is necessary or expedient that a specialrecord be kept of a particular class of disbursements or whendisbursements are made from a special fund; and
(2) approve advances to the special disbursing officer orofficers from any available appropriation for the purpose.
(e) The auditor of state shall issue the auditor's warrant to thespecial disbursing officer to be disbursed by the disbursing officer asprovided in this section. Special disbursing officers shall in no eventmake disbursements or payments for supplies or current operatingexpenses of any agency or for contractual services or equipment notpurchased or contracted for in accordance with this chapter andIC 5-22. No special disbursing officer shall be appointed and nomoney shall be advanced until procedures covering the operations ofspecial disbursing officers have been adopted by the Indianadepartment of administration and approved by the budget agency.These procedures must include the following provisions:
(1) Provisions establishing the authorized levels of specialdisbursing officer accounts and establishing the maximumamount which may be expended on a single purchase fromspecial disbursing officer funds without prior approval.
(2) Provisions requiring that each time a special disbursingofficer makes an accounting to the auditor of state of theexpenditure of the advanced funds, the auditor of state shallrequest that the Indiana department of administration review theaccounting for compliance with IC 5-22.
(3) A provision that, unless otherwise approved by thecommissioner of the Indiana department of administration, thespecial disbursing officer must be the same individual as theprocurements agent under IC 4-13-1.3-5.
(4) A provision that each disbursing officer be trained by theIndiana department of administration in the proper handling ofmoney advanced to the officer under this section.
(f) The commissioner of the Indiana department of administrationshall cite in a letter to the special disbursing officer the exact purposeor purposes for which the money advanced may be expended.
(g) A special disbursing officer may issue a check to a personwithout requiring a certification under IC 5-11-10-1 if the officer:
(1) is authorized to make the disbursement; and
(2) complies with procedures adopted by the state board ofaccounts to govern the issuance of checks under this subsection.
(h) A special disbursing officer is not personally liable for a checkissued under subsection (g) if: (1) the officer complies with the procedures described insubsection (g); and
(2) funds are appropriated and available to pay the warrant.
(i) For contracts entered into between the department ofworkforce development or the Indiana commission for career andtechnical education and:
(1) a school corporation (as defined in IC 20-18-2-16); or
(2) a state educational institution;
the contracting parties are not required to post security to cover theamount advanced.
(Formerly: Acts 1947, c.279, s.22; Acts 1971, P.L.28, SEC.1.) Asamended by P.L.28-1983, SEC.12; P.L.14-1984, SEC.7;P.L.24-1985, SEC.5; P.L.5-1988, SEC.23; P.L.25-1988, SEC.2;P.L.18-1991, SEC.7; P.L.17-1991, SEC.8; P.L.2-1992, SEC.31;P.L.20-1992, SEC.1; P.L.21-1992, SEC.1; P.L.19-1992, SEC.1;P.L.1-1993, SEC.17; P.L.13-1994, SEC.1; P.L.34-1995, SEC.1;P.L.21-1995, SEC.4; P.L.6-1996, SEC.5; P.L.49-1997, SEC.14;P.L.155-2002, SEC.1; P.L.4-2005, SEC.16; P.L.1-2005, SEC.62;P.L.160-2006, SEC.1; P.L.2-2007, SEC.36; P.L.234-2007, SEC.72.
IC 4-13-2-21
State agencies; deposit of receipts with state treasurer; reports
Sec. 21. All receipts from any source coming into the possessionof any state agency shall be deposited with the state treasurer eachday or as soon as practicable after the same is received, unlessotherwise provided by law, and at the end of each calendar montheach agency shall file a report of all receipts deposited since the lastprevious report, which report shall show the disposition thereof. Saidreport shall be submitted to the director of auditing by the depositingagency. All moneys so received by the treasurer during any monthshall be credited by him and by the director of auditing to the properfunds not later than the fifth day of the following month.
(Formerly: Acts 1947, c.279, s.23.)
IC 4-13-2-22
Repealed
(Repealed by Acts 1979, P.L.40, SEC.25.)
IC 4-13-2-23
State board of finance; transfer and reassignment ofappropriations; conflict in powers and duties
Sec. 23. (a) The state board of finance may transfer, assign, orreassign any appropriation, appropriations, or part thereof for one (1)specific use or purpose to another use or purpose of any officer oragency so long as the use and purpose to which it is transferred,assigned, or reassigned is a use or purpose which the officer oragency is required or authorized to perform. For the purposes of thissection, all appropriations made before or after March 13, 1947, toany officer or agency shall be deemed and taken as appropriations tothat officer or agency for the use of such officer or agency for any
purpose or duty said officer or agency is required to or may performby law. No transfer under this subsection shall be made except uponthe request of or with the consent of such officer or agency.
(b) All of the rights, powers, and duties by law in effect on March13, 1947, imposed upon and vested in the state board of financewhich are in conflict with the provisions of this chapter or imposedon some other officer or agency are hereby eliminated from thepowers and duties of the state board of finance.
(Formerly: Acts 1947, c.279, s.27.) As amended by P.L.5-1984,SEC.52.
IC 4-13-2-24
State auditor; vesting of powers and duties; employment ofprofessional and clerical assistance
Sec. 24. All rights, powers, and duties of preauditing andaccounting for the financial transactions and activities of all stateagencies vested in and conferred upon before March 13, 1947, theauditor of state remain vested in and conferred upon the auditor ofstate. The auditor of state is hereby authorized to employ suchprofessional and clerical assistants as may be necessary to performthe duties imposed upon him by this chapter.
(Formerly: Acts 1947, c.279, s.28.) As amended by P.L.5-1984,SEC.53.
IC 4-13-2-25
Repealed
(Repealed by P.L.4-1988, SEC.4.)
IC 4-13-2-26
Repealed
(Repealed by Acts 1975, P.L.26, SEC.5.)
IC 4-13-2-27
Repealed
(Repealed by P.L.4-1988, SEC.4.)
IC 4-13-2-28
Central warehouse; establishment; purchasers; notice toinstitutions and departments of materials and supplies available;procedure for requisitions
Sec. 28. (a) The commissioner of the department of administrationshall establish a central warehouse.
(b) Whenever in the opinion of the commissioner he shalldetermine that it is advantageous to purchase commodities, materials,or supplies, which are used by several state agencies for theirindustries or for general operating purposes, he may do so andwarehouse same in the state warehouse. The cost of suchcommodities and the expense incident thereto shall be paid for in thefirst instance from the warehousing and stationary revolving fund.
(c) The commissioner shall keep all institutions and departments
informed of the commodities, materials, and supplies which areavailable in the warehouse.
(d) The same procedure for requisitioning articles from thewarehouse shall be followed as in requisitioning for purchases exceptthat said requisition shall be noted to be drawn from publicwarehouse. The commissioner shall invoice to each institution andfile his claim for reimbursement for any articles furnished and shalladd to the actual cost a sufficient amount to pay for all warehouseand handling charges but shall not charge any amount in excess ofthe actual cost and expense so as to show a profit in operating thiswarehouse.
(Formerly: Acts 1947, c.279, s.36.) As amended by P.L.5-1984,SEC.56; P.L.18-1991, SEC.8.
IC 4-13-2-29
Constitutionality of act
Sec. 29. In the event any section, clause, or part of Acts 1947,c.279, shall be held to be unconstitutional, then each section, clause,part, and all of that act shall be and hereby is declared to be null,void, and without effect in and as law.
(Formerly: Acts 1947, c.279, s.38 1/2.) As amended by P.L.5-1984,SEC.57.