§ 4-13-2-18 — Appropriations; administration of allotment system; unauthorized payment by officers; budget director authorization of employee positions

Indiana § 4-13-2-18

• Jurisdiction: Indiana
• Art. 13: ADMINISTRATIVE MANAGEMENT OF STATE
• Ch. 2: Financial Reorganization Act of 1947

Text

Note: This version of section amended by P.L.182-2025, SEC.4. See
also following version of this section amended by P.L.213-2025,
SEC.51.
Sec. 18. (a) For the purpose of the administration of
the allotment system provided by this section, each fiscal year shall be
divided into four (4) quarterly allotment periods, beginning
respectively on the first day of July, October, January, and April. In any
case where the quarterly allotment period is impracticable, the budget
director may prescribe a different period suited to the circumstances
but not extending beyond the end of any fiscal year.
(b) Except as otherwise expressly provided in this section, the
provisions of this chapter relating to the allotment system and to the
encumbering of funds shall apply to appropriations and funds of all
kinds, including standing or annual appropriations and dedicated funds,
from which expenditures are to be made from time to time by or under
the authority of any state agency. The provisions relating to the
allotment system shall not apply to money made available for the
purpose of conducting a post-audit of financial transactions of any state
agency. Likewise, appropriations for construction or for the acquisition
of real estate for public purposes may be exempted from the allotment
system by the budget director. The budget director shall prescribe
regulations as will ensure the proper application and encumbering of
those funds.
(c) No appropriation to any state agency shall become available for
expenditure until:
(1) the state agency shall have submitted to the budget agency a
request for allotment, the request for allotment to consist of an
estimate of the amount required for each activity and each
purpose for which money is to be expended during the applicable
allotment period; and
(2) the estimate contained in the request for allotment shall have
been approved, increased, or decreased by the budget director and
funds allotted as provided.
The form of a request for allotment, including a request by hand, mail,
facsimile transmission, or other electronic transmission, shall be
prescribed by the budget agency with the approval of the state
comptroller and shall be submitted to them at least twenty-five (25)
days prior to the beginning of the allotment period.
(d) Each request for allotment shall be reviewed by the budget
agency and respective amounts shall be allotted for expenditure if:
(1) the estimate is within the terms of the appropriation as to
amount and purpose, having due regard for the probable future
needs of the state agency for the remainder of the fiscal year or
other term for which the appropriation was made; and
(2) the agency contemplates expenditure of the allotment during
the period.
Otherwise the budget agency shall modify the estimate to conform with
the terms of the appropriation and the prospective needs of the state
agency, and shall reduce the amount to be allotted accordingly. The
budget agency shall act promptly upon all requests for allotment and
shall notify every state agency of its allotments at least five (5) days
before the beginning of each allotment period. The total amount
allotted to any agency for the fiscal year or other term for which the
appropriation was made shall not exceed the amount appropriated for
the year or term.
(e) The budget director shall also have authority at any time to
modify or amend any allotment previously made by the budget director.
(f) In case the budget director shall discover at any time that:
(1) the probable receipts from taxes or other sources for any fund
will be less than were anticipated; and
(2) as a consequence the amount available for the remainder of
the term of the appropriation or for any allotment period will be
less than the amount estimated or allotted;
the budget director shall, with the approval of the governor, and after
notice to the state agency or agencies concerned, reduce the amount or
amounts allotted or to be allotted to prevent a deficit.
(g) The budget agency shall promptly transmit records of all
allotments and modifications to the state comptroller.
(h) The state comptroller shall maintain as a part of the central
accounting system for the state, as provided, records showing at all
times, by funds, accounts, and other pertinent classifications, the
amounts appropriated, the estimated revenues, the actual revenues or
receipts; the amounts allotted and available for expenditure, the total
expenditures, the unliquidated obligations, actual balances on hand,
and the unencumbered balances of the allotments for each state agency.
(i) No payment shall be made from any fund, allotment, or
appropriation unless the state comptroller shall first certify that there
is a sufficient unencumbered balance in the fund, allotment, or
appropriation, after taking into consideration all previous expenditures
to meet the same. In the case of an obligation to be paid from federal
funds, a notice of a federal grant award shall be considered an
appropriation against which obligations may be incurred, funds may be
allotted, and encumbrances may be made.
(j) Every expenditure or obligation authorized or incurred in
violation of the provisions of this chapter shall be void. Every payment
made in violation of the provisions of this chapter shall be illegal, and
every official authorizing or making a void payment, or taking part in
a void payment, and every person receiving a void payment, or any part
of a void payment, shall be jointly and severally liable to the state for
the full amount paid or received. If any appointive officer or employee
of the state shall knowingly incur any obligation or shall authorize or
make any expenditure in violation of the provisions of this chapter, or
take any part, it shall be ground for removal of the appointive officer
or employee of the state by the officer appointing the appointive officer
or employee of the state. If the appointing officer is a person other than
the governor and fails to remove the officer or employee, the governor
may exercise the power of removal after giving notice of the charges
and opportunity for hearing to the accused officer or employee and to
the officer appointing the accused officer or employee.
(k) The budget director shall be responsible for the authorization of
employee positions. Such authorizations shall be based on the
following:
(1) A requirement that permanent full-time positions which have
been vacant for ninety (90) days or more be reviewed and
reauthorized prior to being filled. If requested by the budget
director, the state personnel director shall review such vacant
positions to determine the proper classification for the position.
(2) Other relevant criteria as determined by the budget director.
(l) The budget director shall provide a report to the governor not
later than January 1, April 1, July 1, and October 1 of each year that
lists the permanent full-time positions that were subject to the budget
director's review under subsection (k)(1) during the preceding three (3)
months.
Formerly: Acts 1947, c.279, s.20; Acts 1953, c.135, s.1. As
amended by Acts 1981, P.L.32, SEC.13; P.L.28-1983, SEC.10;
P.L.6-1996, SEC.4; P.L.215-2016, SEC.81; P.L.9-2024, SEC.89;
P.L.182-2025, SEC.4.