MEMORANDUM SAD 99-14
 

To:	Vice Chancellors
From:	Edward Renfrow State Controller Don Waugh Assistant State Controller
Subject:	Transfer of State Funds

The Office of the State Controller (OSC) has reviewed the disbursing account transactions and budget code transfers of the universities and has noted violations of the Cash Management Act (NC General Statute 147-86.10) and the Delegation of Disbursing Authority (NC General Statute 143-3.2). OSC has noted universities transferring State funds to the institutional trust Short-Term Investment Fund account (ITF/STIF) for disbursement of funds for goods and services billable to State funds. NC General Statutes address the issue as follows:

NC General Satute147-86.11 (f)

1. all "moneys deposited with the State Treasurer remain on deposit with the State Treasurer until final disbursement to the ultimate payee"
2. "the order in which appropriations and other available resources are expended shall be subject to the provisions of G.S. 143-27 regardless of whether the State agency disbursing or expending the moneys is subject to the Executive Budget Act."

1. The OSC has elected to delegate disbursing responsibility to state agencies, universities, community colleges and local educational units.
2. The Delegation of Disbursing Authority indicates the university shall use disbursing account(s) assigned by the State Treasurer to make all disbursements of State funds.
3. The disbursing authority states "an agency/university shall requisition for deposit into the disbursing account an amount equal to each corresponding check run, and will not release warrants which have been written prior to notification from the OSC that requisition for funds has been approved."

1. A check may be written from both the State funds and ITF/STIF,
2. Funds may be transferred from the ITF/STIF account to the State budget code and then requisitioned into the State disbursing account.

We appreciate your assistance in this manner. For further assistance contact Amber Young at 919-981-5481. The Cash Management Act and the Delegation of Disbursing Authority can be referenced on the OSC website: http://www.osc.state.nc.us/OSC/sigdocs/sig_docs/cash_mgmt/index.html.