§ 5-11-10-1.6 — Payment of claims; requirements for issuance of warrant or check by fiscal officer

Indiana § 5-11-10-1.6

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 11: ACCOUNTING FOR PUBLIC FUNDS
• Ch. 10: Certification of Claims; Forms

Text

6. (a) As used in this section, "governmental
entity" refers to any of the following:
(1) A municipality (as defined in IC 36-1-2-11).
(2) A school corporation (as defined in IC 36-1-2-17), including
a school extracurricular account.
(3) A county.
(4) A regional water or sewer district organized under IC 13-26
or under IC 13-3-2 (before its repeal).
(5) A municipally owned utility that is subject to IC 8-1.5-3 or IC 8-1.5-4.
(6) A board of an airport authority under IC 8-22-3.
(7) A board of aviation commissioners under IC 8-22-2.
(8) A conservancy district.
(9) A public transportation corporation under IC 36-9-4.
(10) A commuter transportation district under IC 8-5-15.
(11) The state.
(12) A solid waste management district established under IC 13-21 or IC 13-9.5 (before its repeal).
(13) A levee authority established under IC 14-27-6.
(14) A county building authority under IC 36-9-13.
(15) A soil and water conservation district established under IC 14-32.
(16) The northwestern Indiana regional planning commission
established by IC 36-7-7.6-3.
(b) As used in this section, "claim" means a bill or an invoice
submitted to a governmental entity for goods or services.
(c) The fiscal officer of a governmental entity may not draw a
warrant or check for payment of a claim unless all of the following
apply:
(1) There is a fully itemized invoice or bill for the claim.
(2) The invoice or bill is approved by the officer or person
receiving the goods and services.
(3) The invoice or bill is filed with the governmental entity's fiscal
officer.
(4) The fiscal officer audits and certifies before payment that the
invoice or bill is true and correct.
(5) Payment of the claim is allowed by the governmental entity's
legislative body or the board or official having jurisdiction over
allowance of payment of the claim.
(d) Notwithstanding subsection (c), the following are permitted:
(1) A school corporation, with prior approval of the board having
jurisdiction over allowance of payment of the claim, may make
payment in advance of receipt of services as allowed by
guidelines developed under IC 20-20-13-10.
(2) A municipality may make advance payment of meal expenses
to a municipal employee who will be traveling on official
municipal business if the municipal fiscal body has adopted an
ordinance allowing the advance payment. An ordinance adopted
under this subdivision must provide for all of the following:
(A) The maximum amount that may be paid in advance.
(B) The required invoices and other documentation that must be
submitted by the municipal employee.
(C) Reimbursement from the wages of the municipal employee
if the municipal employee does not submit the required
invoices and documentation.
(3) A political subdivision (as defined in IC 36-1-2-13) may make
advance payments to contractors to enable the contractors to
purchase materials needed for a public works project of the
political subdivision. The solicitation for the public works
contract providing for advance payment for contractors under this
subdivision must include the following information:
(A) That the political subdivision will make advance payments
to contractors to enable contractors to purchase materials.
(B) Any limitations on the amount of advance payments that
will be made.
(C) Requirements for documentation relating to making
advance payments to contractors for materials.
(D) Any other information about advance payment for materials
the political subdivision considers useful to contractors that
make offers.
(4) A political subdivision (as defined in IC 36-1-2-13) may make
advance payments for goods or services before the goods are
delivered or services are completed if the fiscal body of the
political subdivision authorizes making advance payments. If the
fiscal body of the political subdivision authorizes making advance
payments, the local fiscal officer or the local fiscal officer's
designee must do all of the following when advance payments are
made:
(A) Track prepayments by defining the prepayment on a
purchase order.
(B) Create a prepayment invoice that is associated with the
purchase order.
(C) Require insurance or a surety bond in the amount of the
prepayment if the amount of the prepayment is more than one
hundred fifty thousand dollars ($150,000).
(e) Advance payments made under subsection (d)(3) or (d)(4) may
not exceed the lesser of the following:
(1) Fifty percent (50%) of the entire cost of the contract.
(2) Two million dollars ($2,000,000).
(f) The fiscal officer of a governmental entity shall issue checks or
warrants for claims by the governmental entity that meet all of the
requirements of this section. The fiscal officer does not incur personal
liability for disbursements:
(1) processed in accordance with this section; and
(2) for which funds are appropriated and available.
(g) The certification provided for in subsection (c)(4) must be on a
form prescribed by the state board of accounts.

Legislative History

As added by P.L.71-1995, SEC.2. Amended by P.L.69-1995, SEC.3; P.L.14-1996, SEC.6; P.L.40-1996, SEC.2; P.L.39-1996, SEC.7; P.L.45-1997, SEC.2; P.L.49-1997, SEC.27; P.L.253-1997(ss), SEC.3; P.L.35-1999, SEC.1; P.L.68-2001, SEC.2; P.L.99-2003, SEC.2 and P.L.191-2003, SEC.2; P.L.1-2005, SEC.78; P.L.169-2006, SEC.4; P.L.182-2009(ss), SEC.77; P.L.121-2016, SEC.10; P.L.181-2023, SEC.1.