M E M O R A N D U M NO. SAD 02-92
 

TO:	Chief Fiscal Officers Vice Chancellors
FROM:	Robert L. Powell State Controller
SUBJECT:	Cash Requisition Approval and Related Procedures

First let me thank you for your timely response to our request for submission of weekly General Fund projections of receipts and expenditures for the last two weeks of the current fiscal year.  As you are aware, the State continues to experience significant revenue shortfall.  In order to assure that General Fund disbursements do not exceed the available cash balance, the Office of the State Controller (OSC) will immediately implement additional requisition approval procedures.

Approval of General Expenditures and State Aid expenditure categories (requisition priority codes 50 and 30) submitted on requisitions, will be delayed for 24 hours to allow a thorough review to further determine whether the requested amount is a mandatory expenditure.  For example, a requisition submitted by 11:00 a.m. on Monday will not be approved/disapproved until the 11:00 a.m. update on Tuesday.    Please do not release any checks until you know that the supporting requisition has been approved and updated.  In completing the “General Fund Requisition Analysis Worksheet for Mandatory Expenditures”, please include all pertinent information in support of the requested amount.  For example, CP&L bill for May service.  The more information that can be provided up front will result in less time needed from your staff during the OSC 24-hour review process.

You should continue to complete the “Requisitions Supported by Transfers from Non-General Sources” worksheet.  If a requisition is 100% supported by non-appropriation sources, it will be given priority for approval.  Please be aware that system limitations prevent us from approving a portion of a requisition.  It is all or nothing.  Thus, it would be in your best interest to prepare multiple requisitions, especially in this case where it has supporting receipts.

No requisitions will be approved for amounts greater than those provided on the agency’s weekly projection worksheets.  This procedure is effective for all expenditure priority codes.  In addition, the 24-hour review process mentioned above will be applied to electronic payments.  Electronic payments require a transfer to OSC budget code 23015.  This does not involve electronic wires or regular budget code to budget code transfers.

For any questions, please contact Melody Tart (981-5486) or Shirley Trollinger (981-5426) at OSC.