Agenda - 11-23-2015 - Item E.1 - Abstract - Session Law Effects

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64 PREAUDIT CERTIFICATIONS SECTION 6.(a) G.S. 159-28 reads as rewritten: "§ 159-28. Budgetary accounting for appropriations. (a) Incurring Obligations. — No obligation may be incurred in a program, function, or activity accounted for in a fund included in the budget ordinance unless the budget ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. No obligation may be incurred for a capital project or a grant project authorized by a project ordinance unless that project ordinance includes an appropriation authorizing the obligation and an unencumbered balance remains in the appropriation sufficient to pay the sums obligated by the transaction. Nothing in this section shall require a contract to be reduced to writing. al Preaudit Requirement. — If an obligation is evidenee b-Yreduced to a written contract or written agreement requiring the payment of money, or is evidenced by a written purchase order for supplies and materials, the written contract, agreement, or purchase order shall include on its face a certificate stating that the instrument has been preaudited to assure compliance with 4iis—subsection tta1ess t4eebligatie ettment 1:elatedto obligation has been appt:eved by t4e Leeal Govemment Commission, in v�ieh ease fie eet:tifieate shall be .°quit:e . (a) of this section. The certificate, which shall be signed by the finance ^officer, or any deputy finance officer approved for this purpose by the governing board, shall take substantially the following form: "This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act. (Signature of finance officer)." 153 130 et: 160 4 11 as these seetions tvad en June 30t,1973, et:y by 159 28(b) as that section tezad "vi"i--June vT75, ec:e stt fiCient--'cH}tii a2 Failure to Preaudit. — An obligation incurred in violation of subsection (a) or (al) of this section is invalid and may not be enforced. The finance officer shall establish procedures to assure compliance with this 84seetion.section, in accordance with any rules adopted by the Local Government Commission. (b) Disbursements. — When a bill, invoice, or other claim against a local government or public authority is presented, the finance officer shall either approve or disapprove the necessary disbursement. If the claim involves a program, function, or activity accounted for in a fund included in the budget ordinance or a capital project or a grant project authorized by a project ordinance, the finance officer may approve the claim only if both of the following apply: (1) The finance officer determines the amount to be payable-andpayable. (2) The budget ordinance or a project ordinance includes an appropriation authorizing the expenditure and either (i) an encumbrance has been previously created for the transaction or (ii) an unencumbered balance remains in the appropriation sufficient to pay the amount to be disbursed. The finance officer may approve a bill, invoice, or other claim requiring disbursement from an intragovernmental service fund or trust or agency fund not included in the budget ordinance, only if the amount claimed is determined to be payable. A bill, invoice, or other claim may not be paid unless it has been approved by the finance officer or, under subsection (c) of this section, by the governing board. The finance officer shall establish procedures to assure compliance with this subsection, in accordance with any rules adopted by the Local Government Commission. (c) Governing Board Approval of Bills, Invoices, or Claims. — The governing board may, as permitted by this subsection, approve a bill, invoice, or other claim against the local government or public authority that has been disapproved by the finance officer. U—The governing board may not approve a claim for which no appropriation appears in the budget ordinance or in a project ordinance, or for which the appropriation contains no encumbrance and the unencumbered balance is less than the amount to be paid. The governing board shall approve payment by formal resolution stating the board's reasons for allowing the bill, invoice, or other claim. The resolution shall be entered in the minutes together with the names of those voting in the affirmative. The chairman of the aboard, or some other member designated House Bill 44-Ratified Session Law 2015-246 Page 9