Orange County NC Website
Browse       Search
6 <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 reduced to a written contract or written <br /> agreement requiring the payment of money, or is evidenced by a written purchase order for <br /> supplies and materials, the written contract, agreement, or purchase order shall include on its <br /> face a certificate stating that the instrument has been preaudited to assure compliance with <br /> subsection (a) of this section. The certificate, which shall be signed by the finance officer, or <br /> any deputy finance officer approved for this purpose by the governing board, shall take <br /> 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)." <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 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 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. <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. The governing <br /> board may not approve a claim for which no appropriation appears in the budget ordinance or <br /> in a project ordinance, or for which the appropriation contains no encumbrance and the <br /> unencumbered balance is less than the amount to be paid. The governing board shall approve <br /> payment by formal resolution stating the board's reasons for allowing the bill, invoice, or other <br /> G.S. 159-28 Page 1 <br />