CHAPTER 2. FINANCIAL REORGANIZATION ACT OF 1947
IC 4-13-2
Chapter 2. Financial Reorganization Act of 1947
IC 4-13-2-1
Short title of act; definitions
Sec. 1. (a) This chapter may be known and cited as the "Financial
Reorganization Act of 1947".
(b) This chapter applies to all agencies of the state. As used in this
chapter, "agency" refers to every officer, board, commission,
department, division, bureau, committee, employee, and other
instrumentality of the state, including: state hospitals, state penal
institutions, and other state institution enterprises and activities
wherever located, except, unless specifically included, the following:
(1) Military officers and military and armory boards of the state.
(2) The state fair commission.
(3) The supreme court and the court of appeals.
(4) the legislative department of state government including:
(A) the senate;
(B) the house of representatives;
(C) the legislative council; and
(D) the legislative services agency.
(5) State educational institutions.
(6) Persons and institutions under the control of an entity
described in subdivision (1), (2), (3), (4), or (5).
(7) All counties, cities, towns, townships, school towns,
townships, and other municipal corporations or political
subdivisions of the state.
(c) As used in this chapter, "supplies", "materials", "equipment",
and "services" means any and all articles and things, and all services
other than personal, used by, or furnished to, any agency, including
printing, binding, publication of books and records, repairs and
improvements, utility services, and any and all other services
required for the maintenance, operation, or upkeep of buildings and
offices.
(d) The enumeration of the things specified in this section are not
exclusive.
(Formerly: Acts 1947, c.279, s.1; Acts 1967, c.184, s.1.) As amended
by Acts 1981, P.L.31, SEC.1; P.L.30-1987, SEC.1; P.L.20-1990,
SEC.1; P.L.5-1995, SEC.3; P.L.2-2007, SEC.35.
IC 4-13-2-1.5
State judicial and legislative departments; agency status;
application of IC 4-13-2-5.2 and IC 4-13-2-19
Sec. 1.5. (a) Notwithstanding section 1 of this chapter, the term
"agencies of state", "state agency", or "agency", as used in sections
7, 19, 21, and 23 of this chapter, include the judicial and legislative
departments of state government.
(b) Notwithstanding section 1 of this chapter, section 19 of this
chapter applies to the judicial and legislative departments of state
government.
(c) Notwithstanding section 1 of this chapter, section 5.2 of this
chapter applies to a body corporate and politic.
As added by Acts 1981, P.L.32, SEC.7. Amended by
P.L.336-1989(ss), SEC.2.
IC 4-13-2-2
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-3
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-4
Director of auditing
Sec. 4. The auditor of state shall be director of auditing by virtue
of his office as auditor of state.
(Formerly: Acts 1947, c.279, s.4.) As amended by P.L.5-1984,
SEC.48.
IC 4-13-2-5
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 4-13-2-5.1
Repealed
(Repealed by P.L.49-1997, SEC.85.)
IC 4-13-2-5.2
Contracts to provide supplies to body corporate and politic;
submission of bids by trusts; contents
Sec. 5.2. (a) This section applies to a body corporate and politic.
(b) Whenever a contract to provide supplies to the body corporate
and politic is awarded by competitive sealed bidding, a bid submitted
by a trust (as defined in IC 30-4-1-1(a)) must identify each:
(1) beneficiary of the trust; and
(2) settlor empowered to revoke or modify the trust.
As added by P.L.336-1989(ss), SEC.3.
IC 4-13-2-6
Budget agency; powers and duties
Sec. 6. Subject to the applicable provisions of this chapter and to
other laws not inconsistent with this chapter, the budget agency shall
have the following powers and duties respecting all agencies of the
state:
(1) To prescribe, with the approval of the commissioner of the
department of administration and the auditor of state, the
procedures to be used in submitting requisitions for supplies,
materials, equipment, printing, and contractual services and the
manner in which claims therefor shall be submitted.
(2) To have such other powers and duties respecting all
agencies of the state as may be imposed upon it by law or
transferred to it by the provisions of this chapter.
(Formerly: Acts 1947, c.279, s.6.) As amended by P.L.5-1984,
SEC.49.
IC 4-13-2-7
Powers and duties of auditor of state
Sec. 7. (a) Subject to this chapter and other laws not inconsistent
with this chapter, the auditor of state shall, respecting all agencies of
the state, do the following:
(1) Maintain the centralized accounting records for the state,
keep the general books of accounts on a double entry basis, and
maintain accounts as will reflect in detail or in summary, all
assets, liabilities, reserves, surpluses, revenues and receipts,
appropriations, allotments, expenditures, and encumbrances
except as otherwise provided in this chapter. The accounting
records and procedures must provide complete fiscal control
over all agencies of the state and over all activities carried on by
them and be upon forms, records, and systems approved by the
state board of accounts.
(2) Examine every receipt, account, bill, claim, refund, and
demand against the state arising from activities carried on by
agencies of the state, approve each legal, correct, and proper
claim, designate the account to be charged therefor, and issue
the auditor's warrant in payment thereof. The auditor of state
may authorize the disbursement through electronic funds
transfer in conformity with IC 4-8.1-2-7. All warrants and
electronic funds transfers shall be payable to the vendor or
claimant and in no instance shall the auditor issue any warrant
or make any electronic funds transfer payable to an officer or
agency in payment of several claims where the officer is to
distribute or pay to the several claimants the amount due, except
in the case of special disbursement officers as provided for in
this chapter. However, the auditor of state shall not be required
to audit claims for any refunds made pursuant to IC 6-6-1.1 and
IC 6-6-2.5.
(3) Examine each and every payroll or salary voucher submitted
for payment by each state officer or state agency and shall issue
the auditor's warrant in payment, payable to the officer or
employee or claimant, except as provided in subdivision (5). In
no instance shall the auditor issue the auditor's warrant payable
to any officer or agency in payment of a payroll or schedule to
be distributed or paid to employees by the officer or agency.
(4) Keep an earnings record for each employee that shows gross
compensation, net compensation, items withheld for federal tax,
public employees' retirement, teachers' retirement, or other
retirement, and any other deductions authorized to be deducted
from earnings, and shall, as required by law, make settlement
with the proper officers, agents, or agencies for the deductions.
(5) Authorize the electronic transfer of funds from the state
treasury to a designated deposit account in payment of a payroll
or salary voucher on behalf of a state employee who has given
the auditor written authorization to make the transfer under
IC 4-15-5.9-2.
(6) Accept all documents and reports showing evidences of the
collection of state revenues by state agencies, evidences of the
deposit of the revenues, and evidences of the receipt thereof by
the treasurer of state and designate the fund or account to be
credited.
(7) Have all other powers and duties respecting all agencies of
the state as may be imposed upon the auditor by law or
transferred to the auditor by this chapter.
(b) The auditor of state may issue a warrant or make an electronic
funds transfer in conformity with IC 4-8.1-2-7 to a person who:
(1) has a contract with the state; and
(2) is entitled to payment under that contract;
without the certification required by IC 5-11-10-1.
(c) The auditor may not issue a warrant or make an electronic
funds transfer under subsection (b) except in accordance with
procedures adopted by the state board of accounts.
(d) The auditor is not personally liable for a warrant issued or an
electronic funds transfer made under subsection (b) if:
(1) the auditor complies with the procedures described in
subsection (c); and
(2) funds are appropriated and available to pay the warrant or
electronic funds transfer.
(e) This subsection applies to a payment of less than five thousand
dollars ($5,000). Notwithstanding any other law, the auditor of state
may elect to:
(1) not preaudit a payment; and
(2) process the payment with the state agency authorizing the
payment.
The state agency is accountable to the state board of accounts under
the board's post payment auditing procedures.
(Formerly: Acts 1947, c.279, s.7; Acts 1951, c.2, s.1.) As amended by
P.L.5-1984, SEC.50; P.L.23-1985, SEC.2; P.L.25-1988, SEC.1;
P.L.277-1993(ss), SEC.39; P.L.32-1995, SEC.5; P.L.6-1996, SEC.3.
IC 4-13-2-8
State board of accounts; powers and duties
Sec. 8. This chapter shall not be construed as divesting the state
board of accounts of its powers and duties to prescribe for all state
agencies systems of accounts, statements, estimates, and the form
receipts, vouchers, bills, purchase orders, encumbrance documents,
and demands with suitable instructions governing the installation and
use thereof; and to exercise supervision and control over the use of
the same by all state officials and agencies of the state, but such
power shall remain and be in the state board of accounts. All power,
duty, and responsibility of making post-audits of all units of
government shall remain and be in and be exercised by the state
board of accounts.
(Formerly: Acts 1947, c.279, s.8.) As amended by P.L.5-1984,
SEC.51.
IC 4-13-2-9
Adoption of Rules
Sec. 9. The commissioner of the department of administration, the
director of the state budget agency, and the auditor of state each may
adopt rules under IC 4-22-2 to carry out their respective powers and
duties under this chapter.
(Formerly: Acts 1947, c.279, s.9.) As amended by P.L.24-1985,
SEC.4.
IC 4-13-2-10
Repealed
(Repealed by Acts 1981, P.L.32, SEC.17.)
IC 4-13-2-11
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-11.1
Department of correction contracts using inmate labor and
employee supervision
Sec. 11.1. (a) Notwithstanding the other provisions of this chapter
or IC 5-16-1 concerning the awarding of contracts, if a project is for
the rehabilitation, extension, maintenance, construction or repair of
any structure, improvement or facility under the control of the
department of correction, the department may purchase materials for
that project in the manner provided by law and use, without awarding
a contract, its inmates to perform the labor and use its own
employees for supervisory purposes if:
(1) they use equipment owned or leased by that department; and
(2) the cost of the project using employee or inmate labor is
estimated by the department of administration to be less than
one hundred thousand dollars ($100,000).
(b) All projects covered by this section must comply with the
remaining provisions of this chapter, and all plans and specifications
must be approved by a licensed architect or engineer as required by
law.
As added by Acts 1978, P.L.15, SEC.1. Amended by P.L.25-1985,
SEC.1.
IC 4-13-2-12
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 4-13-2-12.5
Repealed
(Repealed by P.L.49-1997, SEC.86.)
IC 4-13-2-12.6
Repealed
(Repealed by P.L.7-1998, SEC.12.)
IC 4-13-2-12.7
Repealed
(Repealed by P.L.7-1998, SEC.12.)
IC 4-13-2-13
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-14
Repealed
(Repealed by P.L.31-1987, SEC.21.)
IC 4-13-2-14.1
Contracts; approval of state officials; rules for electronic approval;
file of information
Sec. 14.1. (a) A contract to which a state agency is a party must
be approved by the following persons:
(1) The commissioner of the Indiana department of
administration.
(2) The director of the budget agency. The director of the
budget agency is not required to approve a contract:
(A) for supplies under IC 5-22, unless the budget agency is
required to approve the contract under rules or written
policies adopted under IC 5-22; or
(B) for public works under IC 4-13.6, if the estimated cost of
the contract is less than one hundred thousand dollars
($100,000).
(3) The attorney general, as required by section 14.3 of this
chapter.
(b) Each of the persons listed in subsection (a) may delegate to
another person the responsibility to approve contracts under this
section. The delegation must be in writing and must be filed with the
Indiana department of administration.
(c) The Indiana department of administration may adopt rules
under IC 4-22-2 to provide for electronic approval of contracts.
Electronic approval may include obtaining the equivalent of a
signature from all contracting parties using an electronic method that
does not comply with IC 5-24 (the electronic digital signature act),
so long as the method allows the party to read the terms of the
contract and to manifest the party's agreement to the contract by
clicking on an "ok", an "agree", or a similarly labeled button or
allows the party to not agree to the contract by clicking on a
"cancel", "don't agree", "close window", or similarly labeled button.
Rules adopted under this subsection must provide for the following:
(1) Security to prevent unauthorized access to the approval
process.
(2) The ability to convert electronic approvals into a medium
allowing persons inspecting or copying contract records to
know when approval has been given.
The rules adopted under this subsection may include any other
provisions the department considers necessary.
(d) The Indiana department of administration shall maintain a file
of information concerning contracts and leases to which a state
agency is a party.
As added by P.L.31-1987, SEC.1. Amended by P.L.26-1989, SEC.4;
P.L.33-1995, SEC.1; P.L.49-1997, SEC.12; P.L.262-2001, SEC.1;
P.L.113-2010, SEC.8.
IC 4-13-2-14.2
Contracts of state agencies to be in writing; provisions required by
statute
Sec. 14.2. (a) Except as provided in subsection (b), a contract to
which a state agency is a party must be in writing.
(b) A contract is not required to be in writing if the contract is
created under:
(1) IC 5-22-8;
(2) IC 5-22-10-4; or
(3) IC 4-13.6-5-5.
However, the attorney general, in rules adopted under section 14.3
of this chapter, may require the state agency that is the party to the
contract to maintain on file invoices, bills, or other writings that
show the contract was performed and the amount of payment that is
due.
(c) Subject to subsection (d), if a statute or rule requires a
provision to be part of a contract to which a state agency is a party,
the provision shall be construed to be part of the contract even
though:
(1) the contract is not in writing; or
(2) the contract is in writing but the provision is omitted.
(d) Provisions required by rule under subsection (c) apply only to
contracts awarded under IC 5-22-8.
As added by P.L.31-1987, SEC.2. Amended by P.L.33-1995, SEC.2;
P.L.49-1997, SEC.13.
IC 4-13-2-14.3
Contracts of state agencies; review by attorney general for form
and legality; advice to agency; forms
Sec. 14.3. (a) Except as provided in subsection (e), the attorney
general must review for form and legality contracts to which a state
agency is a party, unless the contract is not required to be in writing
under section 14.2 of this chapter.
(b) If the attorney general finds that a contract does not meet the
requirements of law, the attorney general shall:
(1) disapprove the contract;
(2) explain in writing to the contracting agency how the
contract is legally defective; and
(3) assist the agency to remedy defects that are found, if
possible.
(c) If the attorney general finds that the form of a contract is
inappropriate but that the contract is legal, the attorney general may
disapprove the contract and shall advise the agency how the form is
defective and how the form may be improved.
(d) The attorney general shall advise the contracting agency as to
the form and legality of the contract within forty-five (45) days after
its submission for review. If the attorney general does not advise the
agency within forty-five (45) days after submission, the contract is
considered to be approved.
(e) The attorney general may approve contract forms or, by rules
adopted under IC 4-22-2, contract types to be used by a state agency
and specify the conditions under which the approved forms or types
may be used. An agency using a contract form or contract type
approved by the attorney general is not required to submit individual
contracts using the forms or types for review by the attorney general
under this section. Changes in an approved form or type must:
(1) be approved by the attorney general; and
(2) be made in accordance with IC 5-15-5.1-5.
(f) The attorney general may delegate to a deputy a power or
responsibility given to the attorney general under this section.
As added by P.L.31-1987, SEC.3.
IC 4-13-2-14.4
Contracts in lieu of appointing employees
Sec. 14.4. Before a state agency may enter into a contract for
services to be provided in lieu of appointing employees to available
positions, the agency must justify the cost effectiveness of the
contract to the commissioner of the department of administration.
As added by P.L.31-1987, SEC.4.
IC 4-13-2-14.5
Revenue department; access to names of bidders, contractors, and
subcontractors; persons on tax warrant list
Sec. 14.5. (a) The department of administration may allow the
department of state revenue access to the name of each person who
is either:
(1) bidding on a contract to be awarded under this chapter; or
(2) a contractor or a subcontractor under this chapter.
(b) If the department of administration is notified by the
department of state revenue that a bidder is on the most recent tax
warrant list, the department of administration may not award a
contract to that bidder until:
(1) the bidder provides to the department of administration a
statement from the department of state revenue that the bidder's
delinquent tax liability has been satisfied; or
(2) the department of administration receives a notice from the
commissioner of the department of state revenue under
IC 6-8.1-8-2(k).
(c) The department of state revenue may notify:
(1) the department of administration; and
(2) the auditor of state;
that a contractor or subcontractor under this chapter is on the most
recent tax warrant list, including the amount owed in delinquent
taxes. The auditor of state shall deduct from the contractor's or
subcontractor's payment the amount owed in delinquent taxes. The
auditor of state shall remit this amount to the department of state
revenue and pay the remaining balance to the contractor or
subcontractor.
As added by P.L.26-1985, SEC.1. Amended by P.L.332-1989(ss),
SEC.2.
IC 4-13-2-14.6
Salary agreements or adjustments; compensation plans; approval
Sec. 14.6. A salary agreement, salary adjustment, or compensation
plan for the personnel of any state agency is not valid unless
approved by the state budget agency, except where the amount of
compensation or salary is expressly fixed or provided for by law.
Schedules of salary ranges showing the current salaries of the
employees of all state agencies shall be filed in the office of the
director of the state budget agency.
As added by P.L.31-1987, SEC.5.
IC 4-13-2-14.7
State agency employees working with children; sex crime
convictions; dismissal
Sec. 14.7. A person employed, appointed, or under contract with
a state agency, who works with or around children, shall be
dismissed (after the appropriate pre-deprivation procedure has
occurred) if that person is, or has ever been, convicted of any of the
following:
(1) Rape (IC 35-42-4-1), if the victim is less than eighteen (18)
years of age.
(2) Criminal deviate conduct (IC 35-42-4-2), if the victim is less
than eighteen (18) years of age.
(3) Child molesting (IC 35-42-4-3).
(4) Child exploitation (IC 35-42-4-4(b)).
(5) Vicarious sexual gratification (IC 35-42-4-5).
(6) Child solicitation (IC 35-42-4-6).
(7) Child seduction (IC 35-42-4-7).
(8) Sexual misconduct with a minor as a Class A or B felony
(IC 35-42-4-9).
(9) Incest (IC 35-46-1-3), if the victim is less than eighteen (18)
years of age.
As added by P.L.11-1994, SEC.1. Amended by P.L.12-1994, SEC.1;
P.L.228-2001, SEC.1.
IC 4-13-2-14.8
State contractor or vendor; electronic funds transfer of payments;
waiver
Sec. 14.8. (a) Notwithstanding any other law, rule, or custom, but
subject to subsections (c) and (d), a person who has a contract with
the state or submits invoices to the state for payment shall authorize
in writing the direct deposit by electronic funds transfer of all
payments by the state to the person. The person's written
authorization must designate a financial institution and an account
number to which all payments are to be credited.
(b) After obtaining the authorization required by subsection (a),
the auditor of state shall deposit a payment to the person in the
financial institution and account designated by the person each time
a payment is made to the person.
(c) A person who does not wish to have payments to the person
deposited by electronic funds transfer may request the auditor of
state to grant a waiver of the requirement of subsection (a). The
person must:
(1) state the reason for requesting the waiver; and
(2) sign and verify the waiver form.
(d) The auditor of state may grant a person's request for a waiver
for any of the following reasons:
(1) The person does not currently have a savings or checking
account and is unable to establish such an account within the
geographic area of the person's primary business location
without payment of a service fee. The person must submit with
the waiver request a written statement by the person's financial
institution of the person's inability to establish an account
without the payment of a fee.
(2) The person's primary business location is too remote to have
access to a financial institution where a direct deposit can be
made.
(3) The person's financial institution is unable to accept an
electronic deposit or withdrawal. The person must submit with
the waiver request a written statement by the person's financial
institution that the financial institution is unable to accept an
electronic deposit or withdrawal.
(4) The auditor of state determines that the facts of the
particular case warrant a waiver of the requirement of
subsection (a).
The auditor of state shall establish a waiver form consistent with this
subsection.
(e) A contract entered into by the state must contain a provision
under which the person contracting with the state specifically
authorizes the auditor of state to make all payments to the person by
direct deposit by electronic funds transfer, subject to the waiver
provisions of subsection (d).
(f) Notwithstanding any other law, rule, or custom, a payment to
a person by the state under this section discharges only the state's
obligation to that person to the extent of the amount of the payment
tendered, and does not constitute a settlement, reduction, release, or
compromise of the state's obligation to the person.
As added by P.L.144-2005, SEC.1.
IC 4-13-2-15
Repealed
(Repealed by P.L.31-1987, SEC.21.)
IC 4-13-2-16
State contracts and purchases; adverse or pecuniary interest of
officers
Sec. 16. The commissioner of the department of administration,
a member of his department, or a member of a standardization
committee may not be financially interested or have any personal
beneficial interest in any contract or purchase order for any supplies,
materials, equipment, or services used by or furnished to any agency
of the state.
(Formerly: Acts 1947, c.279, s.16.) As amended by Acts 1978, P.L.2,
SEC.406; P.L.14-1984, SEC.6; P.L.14-1986, SEC.3; P.L.18-1991,
SEC.6.
IC 4-13-2-17
Repealed
(Repealed by P.L.24-1985, SEC.25(b).)
IC 4-13-2-18
Appropriations; administration of allotment system; unauthorized
payment by officers
Sec. 18. (a) For the purpose of the administration of the allotment
system provided by this section, each fiscal year shall be divided into
four (4) quarterly allotment periods, beginning respectively on the
first day of July, October, January, and April. However, in any case
where the quarterly allotment period is impracticable, the state
budget director may prescribe a different period suited to the
circumstances but not extending beyond the end of any fiscal year.
(b) Except as otherwise expressly provided in this section, the
provisions of this chapter relating to the allotment system and to the
encumbering of funds shall apply to appropriations and funds of all
kinds, including standing or annual appropriations and dedicated
funds, from which expenditures are to be made from time to time by
or under the authority of any state agency. However, the provisions
relating to the allotment system shall not apply to moneys made
available for the purpose of conducting a post-audit of financial
transactions of any state agency. Likewise, appropriations for
construction or for the acquisition of real estate for public purposes
may be exempted from the allotment system by the state budget
director, but in such cases he shall prescribe such regulations as will
insure the proper application and encumbering of funds.
(c) No appropriation to any state agency shall become available
for expenditure until:
(1) such state agency shall have submitted to the state budget
agency a request for allotment, such request for allotment to
consist of an estimate of the amount required for each activity
and each purpose for which money is to be expended during the
applicable allotment period; and
(2) such estimate contained in the request for allotment shall
have been approved, increased, or decreased by the state budget
director and funds allotted therefor as hereinafter provided.
The form of a request for allotment, including a request by hand,
mail, facsimile transmission, or other electronic transmission, shall
be prescribed by the state budget agency with the approval of the
auditor of state and shall be submitted to them at least twenty-five
(25) days prior to the beginning of the allotment period.
(d) Each request for allotment shall be reviewed by the state
budget agency and respective amounts therein shall be allotted for
expenditure if:
(1) the estimate therein is within the terms of the appropriation
as to amount and purpose, having due regard for the probable
future needs of the state agency for the remainder of the fiscal
year or other term for which the appropriation was made; and
(2) the agency contemplates expenditure of the allotment during
the period.
Otherwise the state budget agency shall modify the estimate so as to
conform with the terms of the appropriation and the prospective
needs of the state agency, and shall reduce the amount to be allotted
accordingly. The state budget agency shall act promptly upon all
requests for allotment and shall notify every state agency of its
allotments at least five (5) days before the beginning of each
allotment period. The total amount allotted to any agency for the
fiscal year or other term for which the appropriation was made shall
not exceed the amount appropriated for such year or term.
(e) The state budget director shall also have authority at any time
to modify or amend any allotment previously made by him.
(f) In case the state budget director shall discover at any time that:
(1) the probable receipts from taxes or other sources for any
fund will be less than were anticipated; and
(2) as a consequence the amount available for the remainder of
the term of the appropriation or for any allotment period will be
less than the amount estimated or allotted therefor;
he shall, with the approval of the governor, and after notice to the
state agency or agencies concerned, reduce the amount or amounts
allotted or to be allotted so as to prevent a deficit.
(g) The state budget agency shall promptly transmit records of all
allotments and modifications thereof to the auditor of state.
(h) The auditor of state shall maintain as a part of the central
accounting system for the state, as hereinbefore provided, records
showing at all times, by funds, accounts, and other pertinent
classifications, the amounts appropriated, the estimated revenues, the
actual revenues or receipts; the amounts allotted and available for
expenditure, the total expenditures, the unliquidated obligations,
actual balances on hand, and the unencumbered balances of the
allotments for each state agency.
(i) No payment shall be made from any fund, allotment, or
appropriation unless the auditor of state shall first certify that there
is a sufficient unencumbered balance in such fund, allotment, or
appropriation, after taking into consideration all previous
expenditures to meet the same. In the case of an obligation to be paid
from federal funds, a notice of federal grant award shall be
considered an appropriation against which obligations may be
incurred, funds may be allotted, and encumbrances may be made.
(j) Every expenditure or obligation authorized or incurred in
violation of the provisions of this chapter shall be void. Every
payment made in violation of the provisions of this chapter shall be
illegal, and every official authorizing or making such payment, or
taking part therein, and every person receiving such payment, or any
part thereof, shall be jointly and severally liable to the state for the
full amount so paid or received. If any appointive officer or
employee of the state shall knowingly incur any obligation or shall
authorize or make any expenditure in violation of the provisions of
this chapter, or take any part therein, it shall be ground for his
removal by the officer appointing him, and if the appointing officer
be other than the governor and shall fail to remove such officer or
employee, the governor may exercise such power of removal after
giving notice of the charges and opportunity for hearing thereon to
the accused officer or employee and to the officer appointing him.
(Formerly: Acts 1947, c.279, s.20; Acts 1953, c.135, s.1.) As
amended by Acts 1981, P.L.32, SEC.13; P.L.28-1983, SEC.10;
P.L.6-1996, SEC.4.
IC 4-13-2-19
Appropriations; lapse; exceptions; recognition of encumbered
federal funds
Sec. 19. (a) Except as specifically provided for in appropriation
acts, every appropriation or part thereof remaining unexpended and
unencumbered at the close of any fiscal year shall lapse and be
returned to the general revenue fund. However, an appropriation for
purchase of real estate or for construction or other permanent
improvement shall not lapse until the purposes for which the
appropriation was made shall have been accomplished or abandoned,
unless such appropriation has remained during an entire fiscal
biennium without any expenditure therefrom or encumbrance
thereon.
(b) Except as otherwise expressly provided by law, the provisions
of this section shall apply to every appropriation of a stated sum for
a specified purpose or purposes heretofore or hereafter made from
the general revenue fund, but shall not, unless expressly so provided
by law, apply to any fund or balance of a fund derived wholly or
partly from special taxes, fees, earnings, fines, federal grants, or
other sources which are by law appropriated for special purposes by
standing, continuing, rotary, or revolving appropriations.
(c) In the case of federal funds encumbered by a state agency that
is the recipient of the federal grant, for purposes of meeting
reimbursements that are to come due after the expiration of the
federal grant, the state agency's encumbrance on its ledgers shall be
recognized as valid by the auditor of state for one (1) year or until the
money is expended, whichever is sooner.
(Formerly: Acts 1947, c.279, s.21.) As amended by P.L.28-1983,
SEC.11.
IC 4-13-2-20
Advance payments; special disbursements
Sec. 20. (a) Except as otherwise provided in this section,
IC 12-17-19-19, or IC 12-8-10-7, payment for any services, supplies,
materials, or equipment shall not be paid from any fund or state
money in advance of receipt of such services, supplies, materials, or
equipment by the state.
(b) With the prior approval of the budget agency, payment may be
made in advance for any of the following:
(1) War surplus property.
(2) Property purchased or leased from the United States
government or its agencies.
(3) Dues and subscriptions.
(4) License fees.
(5) Insurance premiums.
(6) Utility connection charges.
(7) Federal grant programs where advance funding is not
prohibited and, except as provided in subsection (i), the
contracting party posts sufficient security to cover the amount
advanced.
(8) Grants of state funds authorized by statute.
(9) Employee expense vouchers.
(10) Beneficiary payments to the administrator of a program of
self-insurance.
(11) Services, supplies, materials, or equipment to be received
from an agency or from a body corporate and politic.
(12) Expenses for the operation of offices that represent the
state under contracts with the Indiana economic development
corporation and that are located outside Indiana.
(13) Services, supplies, materials, or equipment to be used for
more than one (1) year under a discounted contractual
arrangement funded through a designated leasing entity.
(14) Maintenance of equipment and maintenance of software if
there are appropriate contractual safeguards for refunds as
determined by the budget agency.
(15) Exhibits, artifacts, specimens, or other unique items of
cultural or historical value or interest purchased by the state
museum.
(c) Any agency and any state educational institution may make
advance payments to its employees for duly accountable expenses
exceeding ten dollars ($10) incurred through travel approved by:
(1) the employee's respective agency director, in the case of an
agency; and
(2) a duly authorized person, in the case of any state educational
institution.
(d) The auditor of state may, with the approval of the budget
agency and of the commissioner of the Indiana department of
administration:
(1) appoint a special disbursing officer for any agency or group
of agencies whenever it is necessary or expedient that a special
record be kept of a particular class of disbursements or when
disbursements are made from a special fund; and
(2) approve advances to the special disbursing officer or
officers from any available appropriation for the purpose.
(e) The auditor of state shall issue the auditor's warrant to the
special disbursing officer to be disbursed by the disbursing officer as
provided in this section. Special disbursing officers shall in no event
make disbursements or payments for supplies or current operating
expenses of any agency or for contractual services or equipment not
purchased or contracted for in accordance with this chapter and
IC 5-22. No special disbursing officer shall be appointed and no
money shall be advanced until procedures covering the operations of
special disbursing officers have been adopted by the Indiana
department of administration and approved by the budget agency.
These procedures must include the following provisions:
(1) Provisions establishing the authorized levels of special
disbursing officer accounts and establishing the maximum
amount which may be expended on a single purchase from
special disbursing officer funds without prior approval.
(2) Provisions requiring that each time a special disbursing
officer makes an accounting to the auditor of state of the
expenditure of the advanced funds, the auditor of state shall
request that the Indiana department of administration review the
accounting for compliance with IC 5-22.
(3) A provision that, unless otherwise approved by the
commissioner of the Indiana department of administration, the
special disbursing officer must be the same individual as the
procurements agent under IC 4-13-1.3-5.
(4) A provision that each disbursing officer be trained by the
Indiana department of administration in the proper handling of
money advanced to the officer under this section.
(f) The commissioner of the Indiana department of administration
shall cite in a letter to the special disbursing officer the exact purpose
or purposes for which the money advanced may be expended.
(g) A special disbursing officer may issue a check to a person
without requiring a certification under IC 5-11-10-1 if the officer:
(1) is authorized to make the disbursement; and
(2) complies with procedures adopted by the state board of
accounts to govern the issuance of checks under this subsection.
(h) A special disbursing officer is not personally liable for a check
issued under subsection (g) if:
(1) the officer complies with the procedures described in
subsection (g); and
(2) funds are appropriated and available to pay the warrant.
(i) For contracts entered into between the department of
workforce development or the Indiana commission for career and
technical education and:
(1) a school corporation (as defined in IC 20-18-2-16); or
(2) a state educational institution;
the contracting parties are not required to post security to cover the
amount advanced.
(Formerly: Acts 1947, c.279, s.22; Acts 1971, P.L.28, SEC.1.) As
amended by P.L.28-1983, SEC.12; P.L.14-1984, SEC.7;
P.L.24-1985, SEC.5; P.L.5-1988, SEC.23; P.L.25-1988, SEC.2;
P.L.18-1991, SEC.7; P.L.17-1991, SEC.8; P.L.2-1992, SEC.31;
P.L.20-1992, SEC.1; P.L.21-1992, SEC.1; P.L.19-1992, SEC.1;
P.L.1-1993, SEC.17; P.L.13-1994, SEC.1; P.L.34-1995, SEC.1;
P.L.21-1995, SEC.4; P.L.6-1996, SEC.5; P.L.49-1997, SEC.14;
P.L.155-2002, SEC.1; P.L.4-2005, SEC.16; P.L.1-2005, SEC.62;
P.L.160-2006, SEC.1; P.L.2-2007, SEC.36; P.L.234-2007, SEC.72.
IC 4-13-2-21
State agencies; deposit of receipts with state treasurer; reports
Sec. 21. All receipts from any source coming into the possession
of any state agency shall be deposited with the state treasurer each
day or as soon as practicable after the same is received, unless
otherwise provided by law, and at the end of each calendar month
each agency shall file a report of all receipts deposited since the last
previous report, which report shall show the disposition thereof. Said
report shall be submitted to the director of auditing by the depositing
agency. All moneys so received by the treasurer during any month
shall be credited by him and by the director of auditing to the proper
funds not later than the fifth day of the following month.
(Formerly: Acts 1947, c.279, s.23.)
IC 4-13-2-22
Repealed
(Repealed by Acts 1979, P.L.40, SEC.25.)
IC 4-13-2-23
State board of finance; transfer and reassignment of
appropriations; conflict in powers and duties
Sec. 23. (a) The state board of finance may transfer, assign, or
reassign any appropriation, appropriations, or part thereof for one (1)
specific use or purpose to another use or purpose of any officer or
agency so long as the use and purpose to which it is transferred,
assigned, or reassigned is a use or purpose which the officer or
agency is required or authorized to perform. For the purposes of this
section, all appropriations made before or after March 13, 1947, to
any officer or agency shall be deemed and taken as appropriations to
that officer or agency for the use of such officer or agency for any
purpose or duty said officer or agency is required to or may perform
by law. No transfer under this subsection shall be made except upon
the request of or with the consent of such officer or agency.
(b) All of the rights, powers, and duties by law in effect on March
13, 1947, imposed upon and vested in the state board of finance
which are in conflict with the provisions of this chapter or imposed
on some other officer or agency are hereby eliminated from the
powers and duties of the state board of finance.
(Formerly: Acts 1947, c.279, s.27.) As amended by P.L.5-1984,
SEC.52.
IC 4-13-2-24
State auditor; vesting of powers and duties; employment of
professional and clerical assistance
Sec. 24. All rights, powers, and duties of preauditing and
accounting for the financial transactions and activities of all state
agencies vested in and conferred upon before March 13, 1947, the
auditor of state remain vested in and conferred upon the auditor of
state. The auditor of state is hereby authorized to employ such
professional and clerical assistants as may be necessary to perform
the duties imposed upon him by this chapter.
(Formerly: Acts 1947, c.279, s.28.) As amended by P.L.5-1984,
SEC.53.
IC 4-13-2-25
Repealed
(Repealed by P.L.4-1988, SEC.4.)
IC 4-13-2-26
Repealed
(Repealed by Acts 1975, P.L.26, SEC.5.)
IC 4-13-2-27
Repealed
(Repealed by P.L.4-1988, SEC.4.)
IC 4-13-2-28
Central warehouse; establishment; purchasers; notice to
institutions and departments of materials and supplies available;
procedure for requisitions
Sec. 28. (a) The commissioner of the department of administration
shall establish a central warehouse.
(b) Whenever in the opinion of the commissioner he shall
determine that it is advantageous to purchase commodities, materials,
or supplies, which are used by several state agencies for their
industries or for general operating purposes, he may do so and
warehouse same in the state warehouse. The cost of such
commodities and the expense incident thereto shall be paid for in the
first instance from the warehousing and stationary revolving fund.
(c) The commissioner shall keep all institutions and departments
informed of the commodities, materials, and supplies which are
available in the warehouse.
(d) The same procedure for requisitioning articles from the
warehouse shall be followed as in requisitioning for purchases except
that said requisition shall be noted to be drawn from public
warehouse. The commissioner shall invoice to each institution and
file his claim for reimbursement for any articles furnished and shall
add to the actual cost a sufficient amount to pay for all warehouse
and handling charges but shall not charge any amount in excess of
the actual cost and expense so as to show a profit in operating this
warehouse.
(Formerly: Acts 1947, c.279, s.36.) As amended by P.L.5-1984,
SEC.56; P.L.18-1991, SEC.8.
IC 4-13-2-29
Constitutionality of act
Sec. 29. In the event any section, clause, or part of Acts 1947,
c.279, shall be held to be unconstitutional, then each section, clause,
part, and all of that act shall be and hereby is declared to be null,
void, and without effect in and as law.
(Formerly: Acts 1947, c.279, s.38 1/2.) As amended by P.L.5-1984,
SEC.57.