April 29, 1996

COMPTROLLER'S MEMORANDUM NO. 21 (1995-96)

SUBJECT: EXPENDITURE OF STATE FUNDS

(NOTE: THIS SUPERSEDES COMPTROLLER'S MEMORANDUM NOS. 04 (1986-87) AND 15 (1994-95).

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It continues to be the policy of the Office of Comptroller that an expenditure of State funds must be authorized by law and the expenditure must meet the intent and spirit of the law authorizing the payment. We continue to return vouchers to agencies because the legal authority for the expenditure of State funds was not cited or was not obvious from the face of the voucher. Voucher returns cause additional work by agencies and the State Comptroller's Bureau of Auditing, resulting in delays in payments to vendors.

In cases where the item for payment is generally used solely for the personal convenience of employees (for example: portable heaters, fans, refrigerators, stoves, microwaves, coffee pots and supplies, picture frames, wall hangings, various decorations, etc.) and which generally are not necessary in order for a State agency to carry out its statutory duties, the agency must provide justification for the purchase of these items or perquisite approval by an appropriate official. Also, State funds cannot be expended to satisfy the personal preference of employees (for example: an agency may not purchase more expensive office furniture or equipment than is necessary to perform its official duties because the employee prefers a more expensive item).

Each voucher must contain documentation which shows the legal authority for the requested payment, if the authority is not obvious from the face of the voucher. In order to reduce the number of voucher returns, agencies should ensure that each voucher meets this requirement prior to submission to the Bureau of Auditing.

If additional information is needed, please contact your Agency fiscal personnel or your local State Comptroller's Bureau of Auditing office.