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