the transfer of appropriation items may be made only for the current fiscal year. Prior approval or disapproval of all contracts involving disbursements of appropriations.-Another device for centralized supervisory control is that by which a State central executive officer or agency is vested with specific power of prior approval or disapproval of all contracts involving disbursements of appropriations. Although differing among the States, the statutes providing for this device of control in general require the institutions to submit to the officer or agency all proposed contracts, orders or similar documents, the purpose of which is to incur financial obligations against their appropriations. The officer or agency is authorized to examine and either approve or disapprove them before they become legally effective and before appropriations may be disbursed under them. There are 10 States in which specific power has been conferred on a State executive officer or agency.10 These States, together with the particular officer or agency endowed with the power in each of them, are shown in table 6. Table 6.—States in which State central executive officer or agency is vested with power of prior approval or disapproval of all contracts involving disbursements of appropriations State Maine.... New Jersey. Ohio. Tennessee Power of prior approval or disapproval of contracts vested in Head of State Department of Finance or of Administration. New York.... Rhode Island 1. Minnesota..-. Utah... West Virginia___ State comptroller. Executive Council composed of Governor, secretary of State Board of Control composed of 3 members ap- 1 State comptroller in Rhode Island also holds title of State budget director. The power of prior approval or disapproval of contracts is applicable to all the institutions in the 10 States listed in table 6 with the exception of the State university in Maine and the State university in Minnesota. Of special significance are the legal provisions of several 10 In a considerable number of States, the institutions must submit all contracts for purchasing and print. ing to a State central executive agency for prior approval or disapproval. of the States which confer broader power on the State central officer or agency over contracts, orders, or documents involving disbursements. In Minnesota the State Commission of Administration and Finance is empowered to make all contracts creating or incurring financial obligations against the institutions. All requests of the institutions in New Jersey for permission to spend or to disburse appropriations are subject to the approval or disapproval of the State commissioner of finance. In Ohio the director of finance as head of the State Department of Finance is authorized to approve or disapprove all or part of any proposed disbursements in advance. Contracts subject to the prior approval or disapproval of the State comptroller in New York and Rhode Island consist of those amounting to $1,000 or more. The State Board of Control in West Virginia is vested with complete control over all the financial affairs of the institutions, including the making of contracts involving disbursements of appropriations. The three members of the board are officers of the State central government, devoting full time to their duties and receiving regular annual salaries. At the same time there is a second board responsible for governing the educational affairs of the institutions." Approval or disapproval of pay rolls, invoices, bills, or claims before payment.-A further device for the control of disbursements of appropriations is the investment of power in a State central executive officer or agency to approve or disapprove pay rolls, invoices, bills, or claims before payment. In all the States the regular State auditing official is authorized to audit all vouchers covering individual items of disbursements of appropriations of the institutions before issuing his warrants for their payment by the State treasurer. Another device of control inaugurated largely as a result of State fiscal reorganizations, however, provides in general that an additional State officer or agency shall first pass upon or preaudit the items of disbursements, such as pay rolls, invoices, bills, or claims. Power conferred on the officer or agency in the preauditing procedure includes the right to approve or disapprove them. In other words, the officer or agency possesses more or less discretionary power to disallow the payment of individual items of disbursements. When this officer or agency has disallowed. any item of pay rolls, invoices, bills, or claims, the regular State auditing official is forbidden by law to issue a warrant upon the State treasury for its payment. This device of fiscal control has been adopted by 24 of the States. Table 7 lists these States and indicates for each of them the particular "The State Board of Education is the second board responsible for governing the educational affairs of all State higher educational institutions in West Virginia except the State university. The educational affairs of the State university are governed by its own board of regents. State central executive officer or agency designated to exercise the power. Table 7.-States in which State central executive officer or agency is vested with power of approval or disapproval of pay rolls, invoices, bills, or claims before payment State Massachusetts.. Power of approval or disapproval of payment vested in— Governor and council. In Massachusetts the council is composed of the Lieutenant Governor and 8 members elected biennially by the people, while in New Hampshire it is composed of 5 members elected biennially by the people. Montana Nevada.. Utah... Colorado.. Kansas Minnesota... North Dakota____. Oklahoma West Virginia....... State comptroller. State Board of Examiners composed of Governor, secretary of state, and attorney general. Executive council composed of Governor, secretary of State Administrative Board composed of Governor, State Commission of Administration and Control com- 1 The State secretary of finance in Nebraska also holds the title of State tax commissioner. ? In some of these States the head of the State Department of Finance is called commissioner of finance, while in others he is called director or secretary. Limitations have been placed on the State officer or agency with respect to this power in several of the States shown in table 7. The director of finance in Illinois and the secretary of finance in Nebraska are authorized to approve or disapprove only those vouchers, bills, or claims before payment that are subject by law to the approval of the Governor. In Ohio the director of the State Department of Finance is empowered to approve such pay rolls, invoices, bills, or claims as the Governor may deem necessary. An additional StateCalifornia-vests power in the State Board of Control to prescribe the rules and regulations under which the State comptroller preaudits pay rolls, invoices, and other items of disbursements. This board is composed of the State director of finance, chief of the division of service and supply, and comptroller. Institutions authorizing payment of their own pay rolls, invoices, bills, or claims. In 11 of the 24 States there are institutions of certain types to which this power conferred on the State central officer or agency is not applicable. The governing boards of such institutions authorize the payment of their pay rolls, invoices, bills, or claims drawing directly upon their appropriations through the State auditing office without first submitting them for preauditing, approval, or disapproval to such officer or agency. Among these institutions are the State universities in Colorado, Idaho, Illinois, Maine, Michigan, Minnesota, New Hampshire, Tennessee, and Vermont together with the State agricultural and mechanic arts colleges in Michigan, Massachusetts, 12 and Oklahoma. Other institutions within the same States are subject to the power of the State central officer or agency. Maintenance of continuous check of disbursements of appropriations through periodical statements or reports.-An additional device of State centralized fiscal control is the power vested in the Governor or agency for the maintenance of a continuous check of disbursements of appropriations through periodical financial statements or reports. Under this device the institutions are required to submit to such officer or agency either monthly, quarterly, or at any specified time, statements or reports showing the detailed and itemized disbursements made during the period. The statements or reports frequently are prepared on blanks prescribed and furnished to the institutions. Through an examination and review of the statements or reports, the Governor or agency is enabled to maintain a constant check on the amounts and items being disbursed out of the appropriations. These statements or reports must not be confused with the annual or biennial financial reports which are made regularly by the institutions to the Governor or State legislature and published in pamphlet form. Eleven States have adopted this device of fiscal control. In table 8 are presented these States. The table also shows for each of them the particular State officer or agency vested with power to exercise the control. 13 The title of this institution is the Massachusetts State College. Table 8.-States in which the Governor or some State central executive agency is vested with power to maintain a continuous check of disbursement of appropriations through periodical financial statements or reports State Kentucky.. Wyoming-- South Dakota_. New Mexico_. Rhode Island West Virginia____ Power to maintain continued check of disbursements Governor and commissioner of State Department of Governor and State Board of Supplies composed of Head of State Department of Finance. State comptroller. State assistant director of the budget. State Board of Control composed of Governor, secretary of state, and treasurer. State Board of Public Works composed of Governor, secretary of state, auditor, treasurer, attorney general, superintendent of free schools, and commissioner of agriculture. Different legal provisions are found among the 11 States shown in table 8 for the enforcement of the continuous check of disbursements of appropriations. This is especially the case with respect to the periods for which the financial statements or reports of the institutions are submitted. In 5 of the States-Iowa, Kentucky, Mississippi, New York, and Wyoming-they must be submitted monthly to the State central officer not later than the 10th or 15th day of the following month. The State comptroller in New Mexico may require the statements or reports to be submitted either monthly, quarterly, or annually and may also require that they be certified under oath. In West Virginia, differentiation is made between types of disbursements. Statements or reports of disbursements for personal services of the institutions must be made monthly, for current expenses quarterly, and for capital outlays annually to the State Board of Public Works. In Oregon the statements or reports must be submitted quarterly or from time to time as is deemed necessary by the State Board of Control. Legal provisions in the 3 other StatesRhode Island, South Dakota, and Vermont-do not specify the exact period for which they must be submitted but vest discretionary power in the State central officer to designate the time. The commissioner of the State Department of Finance in Vermont must first obtain the approval of the Governor before requiring the statements or reports of disbursements. |