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66 <br /> Electronic payments, as specified in rules adopted by the Local Government <br /> Commission. <br /> As used in this section, the following terms shall have the following meanings: <br /> Electronic funds transfer. – A transfer of funds initiated by using an <br /> electronic terminal, a telephone, a computer, or magnetic tape to instruct or <br /> authorize a financial institution or its agent to credit or debit an account. <br /> Electronic payment. - Payment by charge card, credit card, debit card, gas <br /> card,procurement card, or electronic funds transfer." <br /> SECTION 6.(b) G.S. 115C-441 reads as rewritten: <br /> "§ 115C-441. Budgetary accounting for appropriations. <br /> (a) Incurring Obligations. -Except as set forth below, no obligation may be incurred by <br /> a local school administrative unit unless the budget resolution includes an appropriation <br /> authorizing the obligation and an unencumbered balance remains in the appropriation sufficient <br /> to pay in the current fiscal year the sums obligated by the transaction for the current fiscal year. <br /> Nothing in this section 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 m,ney et:bymoney, or is evidenced by <br /> a purchase order for supplies and materials, the written contract, agreement, or purchase order <br /> shall include on its face a certificate stating that the instrument has been preaudited to assure <br /> compliance with subsection (a) of this section. The certificate, which shall be signed by the <br /> finance officer, shall take substantially the following form: <br /> "This instrument has been preaudited in the manner required by the School Budget and <br /> Fiscal Control Act. <br /> (Date) <br /> (Signature of finance officer)" <br /> a2 Failure to Preaudit. - An obligation incurred in violation of subsection (a) or (al) of <br /> this section is invalid and may not be enforced. The finance officer shall establish procedures to <br /> assure compliance with this seetion.section, in accordance with any rules adopted by the Local <br /> Government Commission. <br /> (b) Disbursements. - When a bill, invoice, or other claim against a local school <br /> administrative unit is presented, the finance officer shall either approve or disapprove the <br /> necessary disbursement. The finance officer may approve the claim only if he a°*° fflifl°s toe <br /> cif all of the following Uply: <br /> The amount claimed is determined to be payable-,payable. <br /> (22,) 4ie—The budget resolution includes an appropriation authorizing the <br /> expendittt e-amadd either-expenditure. <br /> Either (i) an encumbrance has been previously created for the transaction or <br /> (ii) an unencumbered balance remains in the appropriation sufficient to pay <br /> the amount to be disbursed. <br /> A bill, invoice, or other claim may not be paid unless it has been approved by the finance <br /> officer or, under subsection (c) of this section, by the board of education. The finance officer <br /> shall establish procedures to assure compliance with this subsection, in accordance with any <br /> rules adopted by the Local Government Commission. <br /> (c) Board of Education Approval of Bills, Invoices, or Claims. - The board of <br /> education may, as permitted by this subsection, approve a bill, invoice, or other claim against <br /> the local school administrative unit that has been disapproved by the finance officer. WThe <br /> board of education may not approve a claim for which no appropriation appears in the budget <br /> resolution, or for which the appropriation contains no encumbrance and the unencumbered <br /> balance is less than the amount to be paid. The board of education shall approve payment by <br /> formal resolution stating the board's reasons for allowing the bill, invoice, or other claim. The <br /> resolution shall be entered in the minutes together with the names of those voting in the <br /> affirmative. The chairman of the aboard, or some other member designated for this <br /> pttt=pese-pLMose.shall sign the certificate on the check or draft given in payment of the bill, <br /> invoice, or other claim. If payment results in a violation of law, each member of the board <br /> voting to allow payment is jointly and severally liable for the full amount of the check or draft <br /> given in payment. <br /> House Bill 44-Ratified Session Law 2015-246 Page 11 <br />