• State Disbursing
• Cash Management Control System (CMCS)
• Disbursing Accounts
• Federal Funds
• GO Bond and COP Proceeds
• General Fund Monthly Financial Reports
• Tax Compliance
• State General Statutes

Policy: GO Bond and COP Requisitions, Transfers and Disbursements

Policy Area: State Disbursing / GO Bond and COP Proceeds Management
Effective Date: July 14, 2004

Authority:
General Statute § 143B-426.37 provides that the State Controller shall administer the State disbursing system and General Statute § 143B-426.39(5) provides that the State Controller shall prescribe the manner in which disbursements of the State agencies shall be made.

Policy:
General obligation (GO) bond proceeds must be invested by the State Treasurer and certificates of participation proceeds (COPs) must be held by the Trustee until they are required for expenditure. In addition, funds derived from these two sources must be disbursed to contractors within 24 hours of receipt to prevent violation of federal arbitrage laws.

Procedure:

Requisition for Payment Directly from General Obligation Bonds

• Submit separate requisitions for expenditures supported by bond proceeds and for expenditures supported by receipts or refunds of expenditures. Expenditures must be made first from receipts or refunds of expenditures, when receipts and/or refunds are available. The expensing of refund of expenditures must occur in the next weekly bond draw to comply with current IRS Regulations. If receipts or refunds only cover a portion of the expenditure requirement for the week, two requisitions must be submitted. The first requisition is to exhaust the receipts and/or refunds and the second is to request the remaining balance from bond proceeds.
• Identify each requisition supported by receipts and/or refunds by inserting an R in the last position of the requisition number.
• Identify each requisition supported by bond proceeds by inserting an A in the last position of the requisition number.
• Requisitions must be submitted to OSC before 11:00 a.m. each Thursday and will be approved by OSC on Friday. If the requisition is submitted after 11:00 a.m., it will be left in a submitted status until the following Friday, when it will be approved. Also, if the requisition does not include the proper (A) or (R), it will not be approved on Friday, and it will be returned to the agency for correction.
• Agencies will need to use account 438050 to record in NCAS a corresponding entry for the receipt recorded in CMCS during the 13th month accrual process. (Revised)
• Universities will need to use account 432994 to record in NCAS a corresponding entry for the receipt recorded in CMCS during the 13th month accrual process. (Revised)
• To comply with arbitrage laws, payments to vendors/contractors must be made within 24 hours of the approval of the requisition.

Transfer from a General Obligation Bond Code to an Existing Budget Code

• Identify each transfer supported by bond proceeds by inserting an A in the first position of the transfer reference number.
• Identify each transfer supported by receipts and/or refunds by inserting an R in the first position of the transfer reference number. The expensing of refund of expenditures must occur in the next weekly bond draw to comply with current IRS Regulations.
• 'Transfers must be submitted to OSC before 11:00 a.m. each Thursday and will be approved by OSC on Friday. If the transfer is submitted after 11:00 a.m., it will be left in a submitted status until the following Friday, when it will be approved. Also, if the transfer does not include the proper (A) or (R), it will not be approved on Friday, and it will be returned to the agency for correction.
• Transfers from a General Obligation bond code to an existing budget code do not comply with arbitrage laws. Payments to vendors/contractors must be made within 24 hours of the approval of the transfer.

Requisition for Payment Directly from Certificates of Participation (COPs)

• Requisitions must be submitted to OSC before 11:00 a.m. on the date of the established scheduled draw, and will be approved by OSC on Thursday or Friday depending on receipt of funds from the trustee. (See attachment for schedule.) If the requisition is submitted after 11:00 a.m., it will be left in a submitted status and processed the next business day.
• A journal entry will be prepared and entered by OSC to record the receipt of the COPs proceeds to the individual agency/university budget codes. The posting of this can be viewed on CMCS screen AK07.
• OSC will notify the agency/university of the CMCS receipt via e-mail.
• Agencies will need to use account 438051 to record in NCAS a corresponding entry for the receipt recorded in CMCS.
• Universities will need to use account 432993 to record in NCAS a corresponding entry for the receipt recorded in CMCS.
• To comply with arbitrage laws, payments to vendors/contractors must be made within 24 hours of the approval of the requisition.
• The handling of refunds of expenditures for COPs must be processed in accordance with procedures that will be issued by OSBM.

Transfer from the COPs Budget Code to an Existing Budget Code

• Transfers must be submitted to OSC before 11:00 a.m. each Thursday, of the established scheduled draw dates, and will be approved by OSC on Thursday or Friday depending on receipt of funds from the trustee. (See attachment for schedule.) If the transfer is submitted after 11:00 a.m., it will be left in a submitted status until the next established draw date.
• OSC will notify the agency/university of the CMCS receipt by e-mail.
• Transfers from a COPs budget code to an existing budget code do not comply with arbitrage laws. Payments to vendors/contractors must be made within 24 hours of the approval of the transfer.
• The handling of refund of expenditures for COPs must be processed in accordance with procedures that will be issued by OSBM.