TITLE 29

State Government

Budget, Fiscal, Procurement and Contracting Regulations

CHAPTER 65. BUDGET AND FISCAL REGULATIONS FOR STATE AGENCIES


(a) As used in this chapter, the term "agency" shall have the same meaning as defined in § 6301 of this title.

(b) As used in this chapter the term "agency agent" shall mean an authorized official of the agency or the architect or construction manager designated pursuant to the public works contract documents.

(c) As used in this chapter, the term "date of submission" shall mean either 2 days after the document is postmarked by the United States Postal Service or the date the agency agent receives the hand-delivered document, verified by the agency agent's receipt or the date affixed to the document by the agency agent's facsimile machine.

(d) As used in this chapter, term "final completion" shall mean final completion of the work as described in the public works contract documents.

(e) As used in this chapter, the term "reasonable evidence" shall mean "information from a reliable source."

(f) As used in this chapter, the term "Secretary of Finance" shall mean the Secretary of Finance or a duly authorized designee.

29 Del. C. 1953, § 6501; 57 Del. Laws, c. 741, § 1A; 70 Del. Laws, c. 186, § 1; 73 Del. Laws, c. 364, §§ 1, 2.;

(a) On or before November 15, annually, each agency shall report to the Director of the Office of Management and Budget on official blanks furnished for such purpose, an estimate in itemized form showing the amount needed for the ensuing fiscal year.

(b) Any organization, body, committee or person intending to request an appropriation from the General Assembly for any particular object or purpose, or for any expenditure, shall present such request to the Director of the Office of Management and Budget on official estimate blanks furnished for such purpose on or before November 15, annually. In case of any organization, body or committee making such request, the request shall be made by some person duly authorized therefor and shall be sworn to by the person making the same.

37 Del. Laws, c. 81, § 2; Code 1935, § 5400; 29 Del. C. 1953, § 6502; 51 Del. Laws, c. 198; 54 Del. Laws, c. 39, § 4; 67 Del. Laws, c. 47, § 79; 75 Del. Laws, c. 88, § 21(13); 77 Del. Laws, c. 327, § 14; 78 Del. Laws, c. 78, § 14.;

(a) On or before September 1, annually, the official estimate blanks, which must be used in making the reports required by § 6502 of this title, shall be furnished by the Director of the Office of Management and Budget to each of the boards, commissions, agencies receiving or asking financial aid from the State.

(b) The estimate blanks shall be uniform and shall clearly designate the kind of information to be given thereon. They shall provide for an itemized statement of the amount of money considered necessary for the proper maintenance, extension or improvement of the agency during the ensuing fiscal year. It shall also show the actual revenues and expenses for the prior fiscal year of such reporting agency and the amounts by which the estimates for the fiscal year of the succeeding annual period are larger or smaller than the corresponding items of expenditures for the prior year, with full explanation of such changes in the estimates. All the salaries fixed by law shall be included without change in the itemized statement.

(c) The estimate blanks shall contain such other information and provide for such classification of accounts as may be justified by modern accounting practices and deemed necessary by the Director of the Office of Management and Budget to fully and clearly explain the needs and purposes of any estimated expenditure.

(d) The Director of the Office of Management and Budget shall furnish to each budget unit a complete set of forms to be used by the budget unit to present its budget. The Director of the Office of Management and Budget shall furnish instructions on the proper method of completing the forms and shall provide consultation as requested by any budget unit.

37 Del. Laws, c. 81, § 3; Code 1935, § 5401; 29 Del. C. 1953, § 6503; 54 Del. Laws, c. 39, § 4; 61 Del. Laws, c. 131, § 2; 67 Del. Laws, c. 47, § 80; 75 Del. Laws, c. 88, § 21(13).;

Each agency shall keep a detailed account of all receipts and expenditures under such appropriate headings, classifications and arrangements as may be prescribed by the Director of the Office of Management and Budget and used in the budget estimates. All bills, statements, letters, vouchers and documents pertaining to these receipts and disbursements shall be preserved and systematically filed by each agency.

37 Del. Laws, c. 81, § 16; Code 1935, § 5414; 42 Del. Laws, c. 204, § 6; 29 Del. C. 1953, § 6504; 54 Del. Laws, c. 39, § 4; 75 Del. Laws, c. 88, § 21(13).;

(a) The moneys appropriated in the Budget Appropriation Bill shall be paid by the State Treasurer from the General Fund except as otherwise provided by law.

(b) Nothing contained in Titles 14 and 31 shall be construed as authorizing appropriations or expenditures of General Fund moneys during any fiscal year in excess of or other than the amount set forth in the Budget Appropriation Bill or as may be authorized in supplementary appropriation acts enacted by the General Assembly.

(c) No funds appropriated by the Budget Appropriation Bill or otherwise available to an agency of this State shall be expended except for purposes necessary to carry out the functions of such agency; no funds shall be expended for purposes such as gratuities, greeting cards, flowers and tickets to athletic events when unrelated to the agency's function; no funds shall be expended for parking tickets or other traffic violations; and the Secretary, Department of Finance, shall, in executing the Secretary's duty under § 6518 of this title, refuse to approve any such expenditures. Any agency affected by this section shall have the right of appeal to the Budget Commission. No agency or school district shall use credit cards registered in the name of the employee, agency, school district or State which could create an obligation of the State, except:

(1) Contract credit cards authorized by the Secretary of Finance and distributed to state employees may be used for duly authorized travel expenses and purchases made by state agencies and school districts pursuant to policy and procedures as established by the Secretary of Finance;

(2) Telephone credit cards to approved employees, elected officials and public members of boards and commissions under a program established and administered by the Government Support Services, Office of Management and Budget, pursuant to policy and procedures as established by the Secretary of Finance; and

(3) Oil company credit cards having received prior approval by the Secretary of Finance.

(d) Moneys appropriated in a grant-in-aid bill shall be paid in installments of 25 percent each quarter of the fiscal year, in accordance with administrative procedures established by the Secretary of Finance and the Treasurer of the State; provided, however, in the event the line item amount appropriated in a grant-in-aid bill is $6,000 or less, such amount shall be paid on an annual basis. The General Assembly may make exceptions to the installment requirement by adding epilogue language to the grant-in-aid bill.

37 Del. Laws, c. 81, § 17; Code 1935, § 5415; 29 Del. C. 1953, § 6505; 54 Del. Laws, c. 39, § 4; 62 Del. Laws, c. 68, § 44; 64 Del. Laws, c. 109, § 1; 65 Del. Laws, c. 137, § 1; 67 Del. Laws, c. 62, § 19; 67 Del. Laws, c. 281, § 98; 70 Del. Laws, c. 186, § 1; 71 Del. Laws, c. 132, § 136; 73 Del. Laws, c. 143, §§ 5, 6; 75 Del. Laws, c. 88, §§ 16(5), 22(4); 75 Del. Laws, c. 350, § 162.;

No money shall be drawn by any agency from any fund in the State Treasury in excess of the amount appropriated by the General Assembly to the agency.

37 Del. Laws, c. 81, § 18; Code 1935, § 5416; 29 Del. C. 1953, § 6506.;

The fiscal year of all agencies shall begin on July 1st in each calendar year, and end on June 30th of the succeeding calendar year.

37 Del. Laws, c. 81, § 19; Code 1935, § 5417; 29 Del. C. 1953, § 6507.;

Repealed by 66 Del. Laws, c. 303, § 32, effective July 1, 1988.;

All accounts, records, documents, papers and writings which in anywise pertain or relate to the financial accounts of any agency shall be open to inspection by any certified public accountant selected under Chapters 29 and 63 of this title.

48 Del. Laws, c. 295, § 4; 29 Del. C. 1953, § 6509; 54 Del. Laws, c. 39, § 7.;

Any member of any agency, or any officer or agent or servant or employee of any agency, who interferes with or prevents, or tries to prevent, any certified public accountant or accountants selected under Chapters 29 and 63 of this title from auditing the accounts, records, documents, papers and writings in anywise pertaining or relating to the financial accounts of the agency, or who refuses to turn over all accounts, records, documents, papers and writings for audit shall be fined not more than $1,000 or imprisoned for not more than 6 months or both.

48 Del. Laws, c. 295, § 6; 29 Del. C. 1953, § 6510; 54 Del. Laws, c. 39, § 7.;

Repealed by 67 Del. Laws, c. 47, § 81, eff. July 1, 1989.;

(a) It shall be unlawful for any agency to create any indebtedness or incur any obligation for personal services, work or labor or for property, materials or supplies, except by written, printed or electronic requisition or order according to the form or format prescribed by the accounting manual unless specifically exempted therein and bearing the approval or approvals as prescribed by the accounting manual.

(b) The Secretary of Finance shall prepare the form of such orders or requisitions and shall provide a space or means to affix the approval(s) necessary.

(c) It shall be a breach of duty for any officer to approve any order or requisition in blank and a violation of this subsection shall be a cause for removal from office.

(d) Whenever any agency shall make any order or requisition, such transaction shall be transmitted to the Division of Accounting as prescribed by the accounting manual.

(e) This section shall not apply to the Governor of this State nor to any judiciary department thereof.

32 Del. Laws, c. 30, § 1; Code 1935, § 425; 29 Del. C. 1953, § 6512; 54 Del. Laws, c. 39, § 5; 56 Del. Laws, c. 461, §§ 1, 2; 57 Del. Laws, c. 482, § 1; 57 Del. Laws, c. 741, § 1D; 59 Del. Laws, c. 381, § 40; 70 Del. Laws, c. 509, § 8.;

No account or statement of indebtedness for any personal service, work or labor or for property, materials or supplies performed for, or furnished to, any agency shall be valid unless made out on a form prescribed by the Director of the Office of Management and Budget and conforming to § 6515 of this title.

32 Del. Laws, c. 30, § 2; Code 1935, § 426; 29 Del. C. 1953, § 6513; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1E; 75 Del. Laws, c. 88, § 21(13).;

(a) The Director of the Office of Management and Budget may indicate to every agency the manner and method in which any and every form of indebtedness, including salaries of officers and employees, shall be presented to the Director of the Office of Management and Budget.

(b) Subsection (a) of this section shall not apply to the Governor of this State or to the judicial department thereof, nor shall this section or § 6513 of this title apply to salaries when the amount of salary is fixed by law.

32 Del. Laws, c. 30, §§ 3, 4; Code 1935, § 427; 29 Del. C. 1953, § 6514; 54 Del. Laws, c. 39, § 5; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 88, § 21(13).;

(a) No money shall be drawn from the Treasury of this State to pay the salaries and expenses of employees of this State, or to defray the expenses of any agency, or for or on account of any contract for building or repairs, or for property purchased, or for work and labor performed or for materials or supplies furnished to any agency, except upon legitimate itemized bills, invoices or statements presented to, reviewed and approved by an approving official of the agency being charged.

(b) Such obligations shall be paid only upon processing of the appropriate payment transactions as prescribed by the accounting manual, unless specifically exempted therein, and bearing the approval or approvals as prescribed by the accounting manual.

(c) If the payment transaction involves no violation of this chapter or of any State statute, the Division of Accounting shall cause the transaction to be approved and released for disbursement processing.

(d) For the payment of salaries, pensions or any other obligations for which bills, invoices or statements are not renderable, the Secretary of Finance shall process a payment transaction, which shall be approved by him/her, directing and authorizing the payment of the amounts due and payable.

(e) Nothing in this chapter shall apply to the payment of principal or interest on any obligation of this State.

32 Del. Laws, c. 30, § 5; Code 1935, § 428; 29 Del. C. 1953, § 6515; 54 Del. Laws, c. 39, § 5; 56 Del. Laws, c. 461; 57 Del. Laws, c. 482, § 2; 57 Del. Laws, c. 741, §§ 1D, 1F; 58 Del. Laws, c. 422, § 2; 68 Del. Laws, c. 290, § 27; 70 Del. Laws, c. 509, § 9.;

(a) The approval of any bill, invoice or statement by the Secretary of Finance, or the presentation of any payment transaction approved by him/her, shall be considered full authority for the payment of the same by the State Treasurer.

(b) All checks shall be drawn in consecutive numerical order. The Secretary of Finance shall keep records of expenditures of all state agencies so that the amount and nature of all such expenditures may be readily ascertained.

(c) The Secretary of Finance shall periodically verify that the State Treasurer has drawn no checks other than those that have been accounted for in the manner provided in this section.

(d) In the event that the State shall, within 30 days of the later of the presentment of a valid invoice or bill on which a state agency (as defined in this chapter) is liable to make payment or the receipt of the goods or services reflected in such invoice or bill, fail to make payment on such invoice or bill, the vendor presenting such invoice or bill may require the payment of interest by such state agency; provided, however, that:

(1) Presentment is deemed made when an invoice or bill is received by that agency, provided that the invoice or bill is received in a form consistent with the State Accounting Manual and regulations issued by the Director of the Office of Management and Budget and the Secretary of Finance.

(2) The vendor may not require interest with respect to any portion of such invoice or bill if such portion is controverted on reasonable grounds by the state agency, provided that the agency notifies the vendor in writing, within the 30-day period specified in this subsection, of the reason or reasons for controverting the invoice or bill.

(3) A vendor may require that interest under this subsection commence from the end of the 30-day period and continue until payment. All interest charges under this chapter shall be paid by the agency receiving the goods or services from the vendor. Such interest shall be calculated by the vendor in dollar amounts and expressly billed as such to the agency receiving goods or services from the vendor.

(4) A vendor may require that interest under this subsection accrue on the unpaid balance at a rate not to exceed an annualized rate of 12 percent.

(5) Agencies liable for interest payments under this subsection shall be authorized to make such payments from amounts appropriated for "contractual services" in the event an unencumbered balance shall exist in such line. In the case of agencies of public or higher education, such payment shall be made from local funds or state general funds not restricted to another purpose. The Office of Management and Budget shall establish procedures according to which interest payments under this subsection are recorded separately from other expenditures for contractual services.

(6) The requirement that interest payments be made by the agency receiving goods or services be imposed upon a different agency when, in the sound discretion of the Director of the Office of Management and Budget and the Controller General, the receiving agency demonstrates that some other agency or agencies bear greater responsibility for causing the delay which occasioned the payment of interest, in which case the responsible agency or agencies shall reimburse the receiving agency for interest charges.

(e) The Secretary of Finance shall transmit to the Controller General on January 15 and July 15 of each year a report which provides the following information:

(1) The name of any state agency which has, within the past 6 months, paid interest to a vendor in accordance with subsection (d) of this section;

(2) The number of such interest payments made by each agency; and

(3) The total amount of interest paid by each agency.

(f) For public works contracts as defined by § 6902 of this title, the following shall apply:

(1) The agency agent, by mutual agreement, may make progress payments on contracts of less than 90 days and shall make monthly progress payments on all other contracts as provided for in this paragraph.

The agency agent shall approve or disapprove an estimate of the work submitted for payment within 7 days from the date of submission of the written application for payment. If the agency agent approves the estimate of work, such estimate shall be certified for payment. If the agency agent disapproves the estimate of work, the agency or the agency agent shall issue a specific written finding within 21 days from the submission of the applicant for payment setting forth those items in detail in the estimate of the work that are not approved for payment under the contract. The agency may withhold 150% of the amount of expenses the agency reasonably expects to incur, as approved by the Director of the Office of Management and Budget, in correcting the deficiency set forth in the written finding. The progress payments shall be paid on or before 21 days after the estimate of work is certified and approved. If the approval of a federal agency is required, the payment shall be deemed timely if the payment is made within 10 days of a required federal agency's approval.

(2) An agency agent, contractor or subcontractor may decline to approve and certify a billing or estimate or a portion of a billing or estimate for any of the following reasons:

a. Unsatisfactory job progress;

b. Defective construction work of materials not remedied;

c. Disputed work or materials;

d. Failure to comply with material provisions of the contract;

e. Third party claims filed or reasonable evidence that a claim will be filed;

f. Failure of the contractor or subcontractor to make timely payments for labor, equipment or materials;

g. Damage to the agency, contractor or subcontractor;

h. Reasonable evidence that the construction cannot be completed for the unpaid balance of the construction contract; or

i. Retainage of funds.

(3) The retainage, as allowed by § 6962(d)(5) of this title, shall be retained by the agency as a guarantee for complete performance of the contract, to be paid to the contractor within 60 days after completion or filing notice of completion of the contract or within 30 days of a required federal agency's final approval or certification. Retention of payments by an agency longer than 60 days after final completion and acceptance requires a specific written finding by the agency of the reasons justifying the delay in payment. Such written finding shall be furnished by the agency within 10 days after completion or filing notice to the contractor or within 10 days of the required federal agency's final approval or certification. No agency may retain any moneys after 60 days in an amount exceeding 150% of the necessary amount to pay the expenses the agency reasonably expects to incur in order to pay or discharge the expenses determined by the agency in the finding justifying the retention of moneys.

(4) If a progress payment to a contractor is delayed by more than 21 days after the date of the agency agent's approval or the final payment to a contractor is delayed by more than 60 days after the date of the final submission, the contractor may require the payment of interest by such agency, except for periods of time during which payment is withheld pursuant to paragraph (f)(2) of this section, beginning on the twenty-second day for progress payments and on the sixty-first day for final payment; provided, however, that:

a. Presentment is deemed made when an invoice or bill is received by that agency or agency agent, provided that the invoice or bill is received in a form consistent with the State Accounting Manual and regulations issued by the Director of the Office of Management and Budget and the Secretary of Finance. Such forms shall be included in the project's bid documents.

b. The contractor may not require interest with respect to any portion of such invoice or bill if such portion is controverted on reasonable grounds by the state agency or agency agent, provided that the agency notifies the contractor in writing, within the 21-day period for progress payments or 60 days for final payments, of the reason or reasons for controverting the invoice or bill.

c. A vendor may require that interest under this subsection commence from the end of the 21-day period for progress payments or the 60-day period for final payment and continue until payment. All interest charges under this chapter shall be paid by the agency receiving the goods or services from the contractor. Such interest shall be calculated by the contractor in dollar amounts and expressly billed as such to the agency receiving goods or services from the contractor.

d. A contractor may require that interest under this subsection accrue on the unpaid balance at a rate not to exceed 2 percent above the prime interest rate as established by the Federal Reserve.

e. Agencies liable for interest payments under this subsection shall be authorized to make such payments from amounts appropriated for "contractual services" in the event an unencumbered balance shall exist in such line. In the case of agencies of public or higher education, such payment shall be made from local funds or state general funds not restricted to another purpose. The Office of Management and Budget shall establish procedures according to which interest payments under this subsection are recorded separately from other expenditures for contractual services.

f. Interest payments to be made by the agency receiving goods or services may be imposed upon a different agency when, in the sound discretion of the Director of the Office of Management and Budget and the Controller General, the receiving agency demonstrates that some other agency or agencies bear greater responsibility for causing the delay which occasioned the payment of interest, in which case the responsible agency or agencies shall reimburse the receiving agency for interest charges.

(5) The agency, contractor or subcontractor may change the time periods outlined in this subsection only if:

a. Prior written approval is given by the Director of the Office of Management and Budget;

b. The public works contract specifically provides in a clear and conspicuous manner for a later payment defined by a specific number of days after certification and approval; and

c. All plan documents, including bid plans and construction plans, shall permanently display, in clear and conspicuous type, the following legend or substantially similar language:

NOTICE OF EXTENDED PAYMENT PROVISION

This contract allows the agency, contractor and subcontractor to make payment within ____ days after certification and approval of billings and estimates. Such changes shall also be indicated in a clear and conspicuous manner by contractors and subcontractors on all contracts with subcontractors and material suppliers.

(6) An agency may change the time period to certify and approve a billing or estimate only if:

a. Prior approval is given by the Director of the Office of Management and Budget;

b. The public works contract specifically provides in a clear and conspicuous manner for an extended time period within which a billing or estimate shall be certified or approved, defined by a specific number of days after the agency has received the billing or estimate; and

c. All plan documents, including bid plans and construction plans, shall include, in clear and conspicuous type, the following legend or substantially similar language:

NOTICE OF EXTENDED CERTIFICATION AND APPROVAL PERIOD PROVISION

This contract allows the agency to certify and approve billings and estimate within ____ days after the billings and estimates are received from the contractor.

Such changes shall also be indicated in a clear and conspicuous manner by contractors and subcontractors on all contracts with subcontractors and material suppliers.

(7) The contractor shall pay the contractor's subcontractors or material suppliers and each subcontractor shall pay the subordinate subcontractors or material supplier within 21 days of receipt of each progress payment, unless otherwise agreed to in writing by the parties, the respective amounts allowed the subordinate or subcontractor or material supplier on account of the work performed by subordinate contractors and material suppliers, to the extent of each subordinate subcontractor's or material suppliers interest therein, except that no contract for public works may materially alter the rights of any contractor, subcontractor, subordinate subcontractor or material supplier to receive prompt and timely payment as provided under this subsection or Chapter 35 of Title 6. If a progress or final payment to a subordinate subcontractor or material supplier is delayed by more than 21days after receipt of a progress or final payment by the contractor or subcontractor, the subordinate subcontractor or material supplier may require payment of interest by the contractor or subcontractor except for periods of time during which payment is withheld pursuant to paragraph (2) of this section, beginning on the twenty-second day, provided, however, that:

a. Presentment is deemed made when an invoice or bill is received by that contractor or subcontractor, provided that the invoice or bill is received in a form consistent with the contractor's or subcontractor requirements.

b. The subcontractor or material supplier may not require interest with respect to any portion of such invoice or bill if such portion is controverted on reasonable evidence by the contractor or subcontractor, provided that the contractor or subcontractor notifies the vendor in writing within the 21-day period specified in this subsection of the reason or reasons for controverting the invoice or bill.

c. A subordinate subcontractor or material supplier may require that interest under this subsection commence from the end of the 21-day period and continue until payment. All interest charges under this chapter shall be paid by the contractor or subcontractor and shall not be charged to any state agency. Such interest shall be calculated by the subordinate subcontractor or material supplier in dollar amounts and expressly billed as such to the contractor or subcontractor.

d. A subordinate subcontractor or material supplier may require that interest under this subsection accrue on the unpaid balance at a rate not to exceed 2 percent above the prime interest rate as established by the Federal Reserve.

(8) In any action or arbitration brought to collect payments or interest under this subsection, the arbitrator or court shall award damages equal to the amount that is determined by the arbitrator or court to have been wrongfully withheld. An amount shall not be deemed to have been wrongfully withheld to the extent it bears a reasonable relation to the value of any disputed amount or claim held in good faith by the agency contractor or subcontractor against whom the contractor, subcontractor of material supplier is seeking to recover payment.

32 Del. Laws, c. 30, § 6; Code 1935, § 429; 29 Del. C. 1953, § 6516; 54 Del. Laws, c. 39, § 5; 55 Del. Laws, c. 352; 57 Del. Laws, c. 741, § 1D; 58 Del. Laws, c. 422, § 1; 64 Del. Laws, c. 19, § 1; 70 Del. Laws, c. 509, § 10; 73 Del. Laws, c. 364, § 3; 75 Del. Laws, c. 88, §§ 16(5), 21(13).;

The Secretary of Finance may make such requirements as will tend to safeguard or systematize the expenditure of the State's money; but the Secretary of Finance shall make no requirement that will unnecessarily interfere with the prompt payment of the amounts due, and under no circumstances shall the Secretary of Finance cause the payment of salaries of state officers to be delayed beyond the date upon which the same are due, nor shall the Secretary of Finance have the authority to countersign the checks of the Treasury Department.

32 Del. Laws, c. 30, § 7; Code 1935, § 430; 29 Del. C. 1953, § 6517; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1D; 70 Del. Laws, c. 186, § 1.;

(a) The Secretary of Finance shall examine all bills, statements, accounts and demands against the State and the Secretary of Finance may require affidavits that articles have been furnished, services rendered and expenses incurred, as claimed. The Secretary of Finance shall refuse to approve any bill or statement of indebtedness which has not been presented to the Secretary of Finance in conformity with this chapter, or which would more than exhaust the appropriation from which it must be paid, or which is not in accordance with the contract under which the indebtedness was created or where the agency shall have refused to furnish the Secretary of Finance with any information or data that the Secretary of Finance may require for the execution of the Secretary's duties, or where the order or requisition, or bill or statement of indebtedness involves any transaction or item not in accordance with law. The Secretary of Finance shall have no right to refuse approval except on the grounds specified.

(b) Nothing in this section shall apply to the Governor of this State or to the judicial department thereof, or to the principal or interest of any obligation of the State.

32 Del. Laws, c. 30, § 8; Code 1935, § 431; 29 Del. C. 1953, § 6518; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1D; 70 Del. Laws, c. 186, § 1.;

(a) No order or requisition shall be made, nor any engagement entered into, nor shall any expense be incurred by any agency which will result in an expenditure of money in excess of the appropriation made to such agency. No obligation incurred by any officer or employee in violation of this section shall impose any liability upon the State.

(b) Notwithstanding subsection (a) of this section, school districts and colleges may requisition, on or after March 1, school supplies or capital outlay items for the following school year with the provision that the obligations thus incurred shall not be due and payable until after July 1 of the next fiscal year. In the case of capital outlay items, the purchasing agency must demonstrate that the item is needed at the outset of the school year and that it cannot be obtained in time unless it is ordered before the close of the fiscal year prior to the year in which it is actually needed. This exception to the first paragraph of this section shall be permitted under the rules and regulations of the Director of the Office of Management and Budget.

(c) Notwithstanding any other provision of law, the State may advance, from time to time, from the General Fund to the Department of Transportation for its corporate purposes an amount reasonably expected to be reimbursed to the State by or on behalf of the Department of Transportation within 2 weeks of any such advance or by written agreement between the Secretary of Finance and the Secretary of Transportation. However, under any circumstances, the Department of Transportation shall fully reimburse all funds advanced prior to the end of the fiscal year. The Secretary of Finance is hereby authorized on behalf of the State to enter into contracts or other arrangements with the Department of Transportation to provide for such advances and reimbursement. Any such contracts or arrangements shall take into account the availability of amounts in the General Fund to meet the obligations of the State for the purposes to be met from appropriations by the General Assembly.

(d) Notwithstanding any other provisions of law, the State, in order to comply with the federal Cash Management Improvement Act of 1990 (Public Law 101-453, dated October 24, 1990) [31 U.S.C. §§ 3335, 6501 and 6503], may advance funds from the Treasury to state agencies participating in federal assistance programs, where participation in such programs has been authorized in accordance with Chapter 76 of this title. Any advances and reimbursements made pursuant to this subsection shall be in compliance with rules and regulations of the Director of the Office of Management and Budget.

(e) Notwithstanding any provisions of law to the contrary, if during the course of a fiscal year, any reorganized local school district is unable to meet its obligation to fund the local share of semimonthly payroll due to either delayed receipt of property tax collectibles or previous expenditure of all available revenues, the Secretary of Finance and Director of the Office of Management and Budget, with the consultation of the Controller General, are authorized to release the unfunded payroll by covering the local liability with general funds. Such a use of general funds shall be contingent upon the reorganized local school district submitting to the Secretary of Finance a letter of agreement, signed by the district superintendent and president of the local board of education, which stipulates that the district will repay the state General Fund in full, including an amount for interest defined as the average rate of return on state investments during the period of the loan. Such repayment shall be made by means of a tax anticipation note or other means available to the district and shall be accomplished prior to releasing the next regular payroll. The provisions of this section shall not apply to obligations other than payroll. The provisions of this section may be utilized only once by each reorganized local school district during the course of any 1 fiscal year and may not be utilized for the June 30th payroll.

32 Del. Laws, c. 30, § 9; Code 1935, § 432; 29 Del. C. 1953, § 6519; 57 Del. Laws, c. 341; 65 Del. Laws, c. 88, § 1; 66 Del. Laws, c. 85, § 284; 66 Del. Laws, c. 303, § 26; 66 Del. Laws, c. 360, § 55; 68 Del. Laws, c. 290, §§ 28, 234; 69 Del. Laws, c. 64, § 292; 75 Del. Laws, c. 88, § 21(13).;

No order or requisition shall be made, nor any engagement entered into, nor shall any expense be incurred by any agency which will result in an expenditure of money to any person or firm that directly or indirectly refuses, withholds from or denies to any person on the basis of sex full and equal accommodations, facilities, advantages or privileges. No obligation incurred by any officer or employee in violation of this section shall impose any liability upon the State.

64 Del. Laws, c. 135, § 1.;

(a) No greater sum than is necessary to meet expenses then incurred shall be drawn from the Treasury of this State for or on account of any agency. An agency which is authorized to expend any moneys on behalf of this State may, however, have money advanced to it from the State Treasury, in such sums and subject to such rules and regulations as the Secretary of Finance may determine; provided however, that the amount advanced from the General Fund to any agency at any one time shall not exceed $5,000.

(b) To secure such an advance, the head of the agency desiring the same must certify in duplicate to the Secretary of Finance what amount is needed, that it is needed for immediate use and, as specifically as may be, the purposes for which the expenditure is required. The Secretary of Finance and the State Treasurer shall deal with such certificates in the same manner as with bills or statements of indebtedness as provided in this chapter.

(c) In case of any such advance, the person or official making the certificate shall within 30 days after receipt of an advance file with the Secretary of Finance and the State Treasurer a detailed statement of the amounts expended with vouchers therefor and all advances so made shall be accounted for.

32 Del. Laws, c. 30, § 10; 37 Del. Laws, c. 51, § 1; Code 1935, § 433; 29 Del. C. 1953, § 6520; 54 Del. Laws, c. 39, § 5; 55 Del. Laws, c. 63; 57 Del. Laws, c. 741, § 1D; 67 Del. Laws, c. 322, § 1.;

The Secretary of Finance during the last month of the fiscal year may set aside, from unexpended appropriations, a sum sufficient to pay all bills for which requisitions have been issued in accordance with this chapter during the fiscal year, but which remain unpaid. No such sum shall be set aside for the purpose of paying state employees' salaries or wages which do not become due and payable until the next fiscal year. Funds so set aside shall not lapse or revert at the end of such fiscal year and shall continue to be available in the fiscal year following until reverted by the Secretary of Finance. In no instance shall such funds continue beyond June 30th of the fiscal year following.

32 Del. Laws, c. 30, § 10; Code 1935, § 433; 29 Del. C. 1953, § 6521; 53 Del. Laws, c. 105; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1D; 60 Del. Laws, c. 113, § 56; 60 Del. Laws, c. 289, § 9.;

If a check of the State Treasurer is spoiled and becomes useless, a note of such fact shall be made on the stub thereof and the check shall be cancelled and handed to the Secretary of Finance, who shall file the same with the bills and vouchers and shall enter the same in a book, as provided in § 6516 of this title with respect to bills and statements of indebtedness.

32 Del. Laws, c. 30, § 11; Code 1935, § 434; 29 Del. C. 1953, § 6522; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1D.;

The Secretary of Finance shall keep a distinct account, under appropriate heads, of all receipts and expenditures of state moneys. The Secretary of Finance shall keep a like account of all state property and of all debts and obligations due to and from the State. For such purposes the Secretary shall have free access to the books and papers, documents and records of the several state agencies receiving or expending any state money.

32 Del. Laws, c. 30, § 12; Code 1935, § 435; 29 Del. C. 1953, § 6523; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1D; 70 Del. Laws, c. 186, § 1.;

Every agency shall furnish the Secretary of Finance annually with a distinct statement of all qualifying property of the State under the control or jurisdiction of the agency, and the cost price of such property. Such statement shall be prepared in accordance with instructions set forth in the Budget and Accounting Policy Manual, and shall be certified by the head of the agency making the same.

32 Del. Laws, c. 30, § 13; Code 1935, § 436; 29 Del. C. 1953, § 6524; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1D; 67 Del. Laws, c. 281, § 54.;

Repealed by 70 Del. Laws, c. 509, §§ 11, 12, eff. July 12, 1996.;

Upon the discovery of any delinquency in any agency, the Secretary of Finance shall forthwith report the same to the General Assembly, the Director of the Office of Management and Budget and the Attorney General who shall thereupon take appropriate action.

Code 1852, § 534; Code 1915, § 508; 32 Del. Laws, c. 30, § 18; Code 1935, §§ 414, 442; 29 Del. C. 1953, § 6527; 54 Del. Laws, c. 39, § 5; 57 Del. Laws, c. 741, § 1G; 75 Del. Laws, c. 88, § 21(13).;

(a) No transfer of funds from 1 item of account to another on the books of any agency shall be made without the approval of the Director of the Office of Management and Budget.

(b) No transfer of appropriated general funds from 1 item of account to another on the books of any agency shall be made without the approval of the Director of the Office of Management and Budget and the Controller General.

(c) Appropriated general funds shall remain within the department or agency to which appropriated and shall not be transferred for use by another department or agency, except as provided by law or within the provisions of subsection (d) of this section.

(d) Appropriated general funds may be transferred within a department or agency of the State, subject to the authority and limitations set forth in Part VI of this title, and the approval by the Controller General, except that approval by the Controller General is not required on transfers from the Budget Commission; provided, however, that no funds may be transferred into appropriations for "personnel costs", "salaries" or "salaries and wages" from appropriations for nonsalary items. Funds appropriated by the Budget Appropriation Bill for "contingency funds" shall not be used for the payment of a line-item salary, except as otherwise specifically provided by law and for the sole purpose of maintaining the salary schedule set forth for school employees in Chapter 13 of Title 14.

(e) The provisions of subsection (d) of this section are waived with respect to the Department of Technology and Information. Requests from the Secretary of the Department of Technology and Information for transfer of unexpended funds appropriated to personnel costs to "contractual services — equipment rental" may be made upon approval of the Director of the Office of Management and Budget and the Controller General.

(f) In the event the appropriation set forth by the Budget Appropriation Bill to any department or agency is excessive or inadequate, the Director of the Office of Management and Budget, with concurrence of the Controller General, is authorized to transfer funds among the various departments for:

(1) Specific nonroutine requirements, which shall be documented and controlled through separate accounts within the Office of Management and Budget contingencies.

(2) Personnel costs to meet overall state personnel cost requirements. Such transfers shall be fully documented.

(3) Matching funds and public education funds where extended educational components may be administered within other departments or agencies.

(g) Agencies having appropriated special funds in § 1 of the Budget Appropriation Bill and only 1 holding account may directly deposit funds into their appropriation lines, not to exceed the total appropriation for each line contained in § 1 of the Budget Appropriation Bill. Any additional receipts must be deposited in the holding account.

(h) Transfers among the various appropriated special fund appropriation lines, excluding those in subsection (f) of this section and from a holding account into an expenditure account, require the approval of the Director of the Office of Management and Budget and Controller General.

(i) Agencies completing organization restructuring approved in § 1 of the Budget Appropriation Bill or any other legislation authorizing such organizational changes are hereby authorized to transfer funds between organizational units. These transfers shall not require the approval of the Director of the Office of Management and Budget or Controller General.

(j) All General Fund and appropriated special fund transfers requested by public education require the approval of the Director of the Office of Management and Budget and Controller General.

32 Del. Laws, c. 30, § 16; Code 1935, § 439; 29 Del. C. 1953, § 6528; 54 Del. Laws, c. 39, § 5; 62 Del. Laws, c. 68, § 43; 66 Del. Laws, c. 303, § 27; 67 Del. Laws, c. 47, § 82; 67 Del. Laws, c. 281, § 55; 70 Del. Laws, c. 274, § 2; 70 Del. Laws, c. 509, §§ 13-16; 74 Del. Laws, c. 68, § 72; 74 Del. Laws, c. 128, § 9; 75 Del. Laws, c. 88, § 21(13).;

The Director of the Office of Management and Budget is hereby empowered and directed to exercise, subject to the approval of the Governor, such control over the monthly and/or quarterly rates of agency expenditures of funds appropriated to such agency as the Director of the Office of Management and Budget may deem necessary to assure the effective and continuous operation of the various agencies during the fiscal year. The authority of the Director of the Office of Management and Budget under this section shall apply to local and special school districts insofar as they administer funds supplied by the State, but not with regard to funds raised locally.

29 Del. C. 1953, § 6529; 54 Del. Laws, c. 39, § 8; 57 Del. Laws, c. 234, § 2; 57 Del. Laws, c. 741, § 1H; 70 Del. Laws, c. 186, § 1; 75 Del. Laws, c. 88, § 21(13).;

The Secretary of Finance and the Director of the Office of Management and Budget shall promulgate such budgetary, accounting, funding and reporting rules and regulations as shall be necessary to implement § 6340 of this title.

29 Del. C. 1953, § 6530; 58 Del. Laws, c. 579, § 2; 75 Del. Laws, c. 88, § 21(13).;

(a) All state agencies and departments which provide goods and services to any other state agency, state department or to any other governmental agency, person, corporation, partnership or business organization on a reimbursement basis shall be reimbursed in amounts which shall not be less than the full cost of such goods and services. If, however, the Governor, or the Governor's designate, after receiving a written request from an agency or department, shall indicate to such agency or department that such reimbursement for the full cost of goods or services provided is not in the best interest of the State, then reimbursement for the full cost of any goods or services provided shall not be required until June 30 of the next odd year. This section shall not apply to specialized transportation authorities created pursuant to Chapter 17 [repealed] of Title 2.

(b) "Full cost" is defined as purchase or out-of-pocket costs including other employment costs plus overhead costs, computed in accordance with accepted governmental accounting principles, as prescribed by the Secretary of Finance.

29 Del. C. 1953, § 6531; 58 Del. Laws, c. 579, § 2; 61 Del. Laws, c. 457, § 2; 62 Del. Laws, c. 92, § 1; 70 Del. Laws, c. 186, § 1.;

Repealed by 61 Del. Laws, c. 116, § 86(b), eff. July 1, 1977.;

(a) The following terms, as used in this section, shall be defined as follows:

(1) "Appropriation" shall include automatic appropriations and continuing appropriations. An automatic appropriation shall be deemed made when any of the funds so appropriated are expended. A continuing appropriation shall be deemed made on the effective date of the first expenditure of funds so appropriated, notwithstanding the fact that the appropriation may be made continuing by virtue of a later act preventing the reversion of the appropriation.

(2) "Automatic appropriation" shall mean an appropriation which specifies no fixed dollar maximum amount, that amount being determined upon the occurrence of a stated future condition.

(3) "Budget Act" shall mean the Budget Appropriation Bill duly enacted according to §§ 6335 through 6338 of this title, approved by the Governor, and any amendatory legislation.

(4) "Budget Reserve Account" as used in subsection (b) of this section shall mean the Budget Reserve Account as of the close of the fiscal year next preceding the year in which the appropriation, supplemental appropriation or Budget Act described in that subsection is enacted.

(5) "Continuing appropriation" shall mean the unencumbered balance of any General Fund appropriation which, once established, is automatically renewed in any succeeding fiscal year without further legislative action.

(6) "General Fund" shall be as defined in § 6102 of this title.

(7) "Revenue anticipation bonds or notes" shall mean notes or bonds issued by the State in anticipation of the receipt by the State of taxes and revenues payable to the State and to the payment of which the State has pledged its full faith and credit, to the extent that the proceeds of such bonds or notes are deposited in the General Fund.

(8) "Supplemental appropriation" shall mean an appropriation provided by a Supplementary Appropriation Bill pursuant to § 6339 of this title.

(b) No appropriation, supplemental appropriation or budget act shall cause the aggregate General Fund appropriations enacted for any given fiscal year to exceed 98 percent of the estimated General Fund revenue for such fiscal year from all sources, including estimated unencumbered funds remaining at the end of the previous fiscal year. An act approved pursuant to Article VIII, § 3 of the Delaware Constitution of 1897, shall not be considered an appropriation for the purpose of this section. Estimated unencumbered funds are calculated by taking the estimated General Fund cash balance at the end of the fiscal year less estimated revenue anticipation bonds or notes, estimated encumbrances, estimated continuing appropriations and the amount of the Budget Reserve Fund as established in subsection (d) of this section at the end of said fiscal year. The amount of said revenue estimate and estimated unencumbered funds remaining shall be determined by the most recent joint resolution approved from time to time by a majority of the members elected to each House of the General Assembly and signed by the Governor.

(c) Notwithstanding subsection (b) of this section, any portion of the amount between 98 and 100 percent of the estimated General Fund revenue for any fiscal year as estimated in accordance with subsection (b) of this section may be appropriated in any given fiscal year in the event of emergencies involving the health, safety or welfare of the citizens of the State, such appropriations to be approved by three fifths of the members elected to each House of the General Assembly.

(d) There is hereby established a Budget Reserve Account within the General Fund. Within 45 days after the end of any fiscal year, the excess of any unencumbered funds remaining from the said fiscal year shall be paid by the Secretary of Finance into the Budget Reserve Account; provided, however, that no such payment will be made which would increase the total of the Budget Reserve Account to more than 5 percent of only the estimated General Fund revenues as set by subsection (b) of this section. The excess of any unencumbered funds shall be determined by subtracting from the actual unencumbered funds at the end of any fiscal year an amount which together with the latest estimated General Fund revenues is necessary to fund the ensuing fiscal year's General Fund budget including the required estimated supplemental and automatic appropriation for said ensuing fiscal year less estimated reversions. The General Assembly by three-fifths vote of the members elected to each House may appropriate from the Budget Reserve Account such additional sums as may be necessary to fund any unanticipated deficit in any given fiscal year or to provide funds required as a result of any revenue reduction enacted by the General Assembly.

(e) There is hereby established a Revenue Refund Account within the Office of the State Treasurer. Prior to depositing receipts and moneys of this State to the credit of the State Treasurer in the General Fund, the State Treasurer and the Secretary of Finance shall determine the appropriate refund amounts by major categories and pay same into the Revenue Refund Account.

(1) Total refunds of overpayments of taxes and fees required by Delaware state law to be paid during any fiscal year, as certified by the State Treasurer and the Secretary of Finance as necessary for such payments, shall not exceed the estimate adopted by the Delaware Economic and Financial Advisory Council (or its successor entity) as of each reporting date.

(2) The State Treasurer shall prepare and issue reports periodically, upon request, as follows:

a. Estimates of refund disbursements for the current fiscal year and next succeeding fiscal year by major categories for use by the Delaware Economic and Financial Advisory Council (or its successor entity) and/or members thereof; and

b. Status of Revenue Refund Account by major categories at the close of business for each month for use by the Secretary of Finance, the Director of the Office of Management and Budget, and the Controller General.

(f) No appropriation or supplemental appropriation enacted for any given fiscal year for grants-in-aid in the aggregate shall: (1) Exceed 1.2 percent of the estimated net state General Fund revenue estimated in March for such fiscal year from all sources; and (2) cause the aggregate state General Fund appropriations enacted for any given fiscal year to exceed 98 percent of the estimated net state General Fund revenue for such fiscal year from all sources, including estimated unencumbered funds remaining at the end of the previous fiscal year. The term "estimated net state General Fund revenue" means the estimated gross state General Fund revenue less estimated revenue refunds.

(g) Any appropriation for municipal street aid shall not be subject to the limitation in subsection (f) of this section.

61 Del. Laws, c. 411, § 1; 62 Del. Laws, c. 235, §§ 1, 2; 63 Del. Laws, c. 196, § 3; 65 Del. Laws, c. 87, § 79; 66 Del. Laws, c. 87, § 4; 66 Del. Laws, c. 345, § 17; 75 Del. Laws, c. 88, § 21(13).;

(a) The Governor shall submit to all members of the General Assembly and the Controller General an estimate of anticipated General Fund revenues by major categories for the current and next immediate fiscal year. Such report shall be made not later than the 25th day of September, December, March, April and May, and the 20th day of June.

(b)(1) Anticipated General Fund revenue estimate figures shall be reported as net, i.e., anticipated refunds for overpayments of taxes and fees required by Delaware state law shall be subtracted by major categories for the current and next immediate fiscal year from gross estimates of anticipated General Fund revenues; and

(2) The Secretary of Finance shall report such revenue refund disbursements on all financial statements issued by the Department of Finance. Further, estimates of fiscal year revenues and disbursements prepared by the Delaware Economic and Financial Advisory Council (or its successor entity) shall follow this procedure.

(3) The Delaware Economic and Financial Advisory Council shall review the report described in § 8305(6)b. of this title and shall, based on such review and any other information as the Council deems appropriate, approve by majority vote no later than April 25 of the year following the issuance by the Division of Revenue of such report an estimate of the revenue loss to the State caused by tax preferences as that term is defined in § 8305(6) of this title.

62 Del. Laws, c. 68, § 47; 64 Del. Laws, c. 324, § 1; 65 Del. Laws, c. 87, § 95; 68 Del. Laws, c. 241, § 2.;