State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_115C > GS_115C-441

§ 115C‑441. Budgetary accounting for appropriations.

(a)        Incurring Obligations. – Except as set forth below, noobligation may be incurred by a local school administrative unit unless thebudget resolution includes an appropriation authorizing the obligation and anunencumbered balance remains in the appropriation sufficient to pay in thecurrent fiscal year the sums obligated by the transaction for the currentfiscal year. If an obligation is evidenced by a contract or agreement requiringthe payment of money or by a purchase order for supplies and materials, thecontract, agreement, or purchase order shall include on its face a certificatestating that the instrument has been preaudited to assure compliance with thissection. The certificate, which shall be signed by the finance officer, shalltake substantially the following form:

"This instrument has been preaudited in the manner required by theSchool Budget and Fiscal Control Act.

______________________________________________________

                                                 (Date)

______________________________________________________

                                (Signatureof finance officer)"

An obligation incurred in violation of this section is invalid and maynot be enforced. The finance officer shall establish procedures to assurecompliance with this section.

(b)        Disbursements. – When a bill, invoice, or other claimagainst a local school administrative unit is presented, the finance officershall either approve or disapprove the necessary disbursement. The financeofficer may approve the claim only if he determines the amount to be payable,the budget resolution includes an appropriation authorizing the expenditure andeither (i) an encumbrance has been previously created for the transaction or(ii) an unencumbered balance remains in the appropriation sufficient to pay theamount to be disbursed. A bill, invoice, or other claim may not be paid unlessit has been approved by the finance officer or, under subsection (c) of thissection, by the board of education.

(c)        Board of Education Approval of Bills, Invoices, or Claims. –The board of education may, as permitted by this subsection, approve a bill,invoice, or other claim against the local school administrative unit that hasbeen disapproved by the finance officer. It may not approve a claim for whichno appropriation appears in the budget resolution, or for which theappropriation contains no encumbrance and the unencumbered balance is less thanthe amount to be paid. The board of education shall approve payment by formalresolution stating the board's reasons for allowing the bill, invoice, or otherclaim. The resolution shall be entered in the minutes together with the namesof those voting in the affirmative. The chairman of the board or some othermember designated for this purpose shall sign the certificate on the check ordraft given in payment of the bill, invoice, or other claim. If payment resultsin a violation of law, each member of the board voting to allow payment isjointly and severally liable for the full amount of the check or draft given inpayment.

(c1)      Continuing Contracts for Capital Outlay. – An administrativeunit may enter into a contract for capital outlay expenditures, some portion orall of which is to be performed and/or paid in ensuing fiscal years, withoutthe budget resolution including an appropriation for the entire obligation,provided:

a.         The budget resolution includes an appropriation authorizingthe current fiscal year's portion of the obligation;

b.         An unencumbered balance remains in the appropriationsufficient to pay in the current fiscal year the sums obligated by thetransaction for the current fiscal year; and

c.         Contracts for capital outlay expenditures are approved by aresolution adopted by the board of county commissioners, which resolution whenadopted shall bind the board of county commissioners to appropriate sufficientfunds in ensuing fiscal years to meet the amounts to be paid under the contractin those years.

(d)        Payment. – A local school administrative unit may not pay abill, invoice, salary, or other claim except by a check or draft on an officialdepository, by a bank wire transfer from an official depository, or by awarrant on the State Treasurer. Except as provided in this subsection eachcheck or draft on an official depository shall bear on its face a certificatesigned by the finance officer or signed by the chairman or some other member ofthe board pursuant to subsection (c) of this section. The certificate shalltake substantially the following form:

"This disbursement has been approved as required by the SchoolBudget and Fiscal Control Act.

______________________________________________________

                                (Signatureof finance officer)"

No certificate is required on payroll checks or drafts or on Statewarrants.

(e)        Penalties. – If an officer or employee of a local schooladministrative unit incurs an obligation or pays out or causes to be paid outany funds in violation of this section, he and the sureties on his officialbond are liable for any sums so committed or disbursed. If the finance officergives a false certificate to any contract, agreement, purchase order, check,draft, or other document, he and the sureties on his official bond are liablefor any sums illegally committed or disbursed thereby. (1975, c. 437, s. 1; 1981, c. 423, s. 1; 1985, c. 783,ss. 1, 2; 1997‑456, s. 27.)