Amended by State Law 7-1.
Section 10.203. Treasurer.
The Director is the
Treasurer and has full responsibility and authority for the Treasury, for the
collection, administration, and safekeeping of all public funds deposited in the
Treasury as general realizations of the Government and for disbursements from
the Treasury pursuant to law.
Section 10.204. Funds of the
Within the Treasury there
(1) the Revenue Fund;
(2) the United States Grant Fund; and
(3) the Foreign Assistance Fund.
Section 10.205. The Revenue Fund.
(1) The Revenue Fund contains all monies received by the Government pursuant to a law imposing a tax, duty or tariff, and all other revenues and reimbursements from a fine, fee, license, interest, rent, or Government service, and other Government collection or collections by a government for the Government's benefit. A person who receives monies pursuant to this section transmits the monies within seven days of receipt to the Division of Finance and Budget for deposit in the Revenue Fund except that:
(a) The Department of Agriculture, Land and Fisheries may retain monies received in the sale of supplies and equipment for gardening, livestock and poultry production, and in the marketing of all agricultural produce;
(b) The Sports Council may retain funds collected pursuant to Section 7.902(3), funds obtained through contributions and donations, and any interest thereon for funding operations, acquisition of equipment and the purchase of prizes;
(c) The Division of Finance and Budget retains in a Recycling Fund all monies collected pursuant to Title 9, Chapter 22, and promulgates regulations for the disbursement of Recycling Fund monies for the refund of beverage container deposits, and the maintenance of a recycling program;
(d) The Department of Commerce and Industry may retain monies received from the sale of books, postcards, handicrafts, and other tourist material for the purpose of acquiring additional inventory of such classes of items; and
(e) The Division of Finance and Budget retains in a Publication Fund the proceeds received from the sale of copies of the Kosrae State Code and the Selected Laws of the State of Kosrae, which proceeds are available for use by the Code Revision and Publication Commission to defray the costs of preparation and publication of the Selected Laws of the State of Kosrae;
(f) The Division of Finance and Budget retains in a Health Care Fund all monies collected from or on behalf of patients or clients or the Kosrae Department of the Health Services, including, but not limited to, reimbursements from any program of medical insurance and payments received by the State in connection with off-island referrals. Monies in the Health Care Fund are continually appropriated for expenditures by the Department of Health Services solely for the purchase of medical supplies, inclusive of pharmaceutical supplies, for use by the Department of Health Services, its clinics, dispensaries, programs and patients.
(g) The Division of Finance and Budget retains in a State Scholarship Grant and Loan Fund, all monies received from student loan repayments including any accrued interest. Monies in the Scholarship Fund are available solely to the State Scholarship Board to be used for scholarship purposes only.
(h) The Department of Education retains in a Yearbook Revolving Fund all monies contributed, received and collected from yearbook sales by depositing that revenue into the fund using it strictly for the Kosrae High School yearbook project.
Each department, office, and agency retaining monies pursuant to subsections (a) through (h) provides a written monthly report to the Governor and the Speaker on the status of the monies, including amounts received and expended; upon determining that a department, office, or agency has money in excess of the amount necessary for the purpose for which it is allowed to retain the funds, the Governor directs that said excess be turned over to the State Treasury.
(i) The Court may retain monies received as payment for published decisions, opinions, rules, or other documents issued by the Court.
(2) By regulation the Director of the Department of Agriculture, Land and Fisheries provides for the sale of materials pursuant to subsection (1)(a) so that:
(a) sale is at cost plus a reasonable charge for administrative costs; and
(b) there is a reasonable balance between the interests of assisting the public and fostering private retail sales.
(3) Funds and materials deriving from State Law 1-25 are available in implementing the use stated in subsection (l)(a).
Subsection (1)(a) was amended by State Law 5-36 and
further amended by State Law 7-1; subsection (1)(b) was amended by State
Law 5-37 and further amended by State Law 5-116; subsection (1)(c) was added by
State Law 4-146 and amended by State Laws 5-59 and 5-198 and further amended by
State Law 7-1; subsection (1)(d) was added by State Law 5-15; subsection (1) was
amended in its entirety by State Law 5-108, which added subsection (1)(e) and
the concluding language of the subsection, Subsection (1)(a) thru (1)(e) were
amended by State Laws 5-201 and 6-9; Subsection (1) (f) added by State Law 6-9;
Subsection (1)(g) added by State Law 6-87; Subsection (1)(h) [Court fine] added
by State Law 6-108; Subsection 1(h) [Scholarship Fund] was added by State Law
7-21; Subsection (1)(c) amended by State Laws 6-121 and 6-146. Former
Subsection (1)(c) [airport trust fund] was repealed by State Law 7-91.
Subsection 2 was amended by State Law 7-1. Subsection (1)(h)
(Yearbook Revolving Fund) was added by State Law 7-134.
Section 10.206. The United States Grant Fund.
The United States Grant
Fund contains all monies appropriated or designated by the United States
Government for the Government except United States federal agency program monies
which are maintained and accounted for in a manner to be provided by regulation.
Monies in the United States Grant Fund are accounted for separately and in
accordance with reporting requirements of the United States
Section 10.207. The Foreign
The Foreign Assistance
Fund contains all monies not belonging to the Revenue Fund and received by the
Government for its use from governments, governmental agencies or other external
sources other than the United States Government.
(a) Foreign Assistance Fund monies, other than U.S. Federal Education Grant and Congress of the Federated States of Micronesia appropriations for educational purposes, shall be deposited into a certificate of deposit held in the name of the State as an Educational Trust Fund to be held and used for educational purposes as set forth herein
(1) The principal amount received shall be retained in the certificate of deposit until such time as it is authorized to be used.
(2) The interest shall be made available to the Director of Education, as the allottee of said interest, to use as merit/achievement awards for students at school activities such as the annual Education Week. The Director of Education shall report to the Governor on all expenditures and to the Legislature upon request.
(b) Foreign Assistance Fund monies received for the Kosrae State Court shall be deposited into a checking account held in the name of the Kosrae State Court Foreign Assistance Fund to be held, used and distributed for the purposes designated in the grant award documents as set forth herein.
(1) The Chief Justice shall be authorized as allottee and shall provide the sole authorization necessary for payment of funds from the checking account.
(2) The funds in the checking account shall be available for use by the allottee, to use for the purposes specified in the grant award documents. The Chief Justice shall report to the Governor and to the Legislature on all expenditures upon request.
Subsection (a) added by State Law 6-164.
Subsection (b) added by State Law 6-181.
Section 10.207.1. Legislative Operations Fund.
monies" are monies that are appropriated or authorized for legislative
operations. A Legislative Operations Fund, administered by the Department
of Administration and Finance, is created to hold legislative operations monies.
At the direction of the allottee of legislative operations monies, or
other person designated pursuant to legislative rule, the Department of
Administration and Finance transfers legislative operations monies from the
Funds of the Treasury to the Legislative Operations Fund.
Added by State Law 5-41. Amended by State Law
Section 10.207.2. Disbursement.
Monies in the Legislative
Operations Fund are available for withdrawal at the allottee's or designated
person's discretion, upon request made to the Department of Administration and
Finance. The request identifies in writing the appropriation or
authorization under which the disbursement is sought. The Department of
Administration and Finance does not withhold monies requested for disbursement
pursuant to this section.
Added by State Law 5-41. Amended by State Law
Section 10.207.3. Accounting.
The allottee or person
designated by legislative rule renders a quarterly statement of accounting for
all public money withdrawn or expended from the Legislative Operations
Added by State Law 5-41.
Section 10.208. Allotment.
(1) The Director of the Department of Administration and Finance has the power and duty to:
(a) make allotments
(b) make allotments of appropriated sums not later than ten days before the beginning of the fiscal year for which the appropriation is available or not more than thirty days after the effective date of an appropriation, whichever is later;
(c) make allotments at monthly, quarterly or other intervals, if sound financial management practices permit and require; and
(d) immediately notify an allottee in writing of an allotment and of the periodic nature of the allotment.
(2) Unless otherwise provided by law, the allottees of State funds are:
(a) The Governor, for the operations of the Executive;
(b) The Speaker, for operations of the Legislature; and
(c) The Chief Justice, for operations of the Judiciary.
(3) The Governor is the allottee of funds appropriated for a Government operation not stated in subsection 2 when an allottee is not provided by law.
Subsection (1) was amended by State Law
Section 10.209. Documentation.
(1) Public funds are not recorded as a Government obligation unless it is supported by documentary evidence of:
(a) a binding agreement for a purpose authorized by law, executed before the expiration of the period of availability of the funds for obligation;
(b) a valid loan agreement, showing the amount of the loan to be made and the terms and schedule of payment;
(c) a purchase order required by law, regulation, administrative directive or established administrative practice;
(d) an order issued pursuant to law authorizing purchases without advertising when necessitated by public exigency or for perishable subsistence supplies or within specific monetary limitations;
(e) a grant or subsidy payable:
(1) from an appropriation made for payment of, or contribution toward, sums required to be paid in specific amounts fixed by law, or in accordance with a formula prescribed by law; and
(2) pursuant to an agreement authorized by law, or plans approved in accordance with and authorized by law.
(f) a valid Government liability resulting from litigation or settlement;
(g) employment or services or expenses of travel made in accordance with law, or services performed by public utilities;
(1) The Department may not, by regulation or otherwise, routinely require the submission of a trip report or other narrative description of the acts undertaken by a traveler on State business in order to receive payment of travel expenses; or
(h) a valid Government liability payable by funds appropriated or otherwise lawfully available for that purpose.
Subsection (1)(g)(1) added by State Law 7-150.
Funds limited for obligation to a definite period of time are not available for expenditure after the expiration of the period except for the liquidation of an amount obligated in accordance with Section [10.212]. Funds are not
available for expenditure beyond the period provided by law.
Section 10.211. Disbursement.
Unless otherwise provided
by law, the following procedures control the administration and management of
(1) Funds remain in the custody and control of the Director until they are disbursed by him in accordance with law.
(2) Funds are obligated as of the date the allottee executes the document required by Section 10.209.
(3) The Director disburses funds to liquidate valid obligation within thirty days of its becoming payable, as indicated by valid documentary evidence of the obligation and a valid claim for payment, if required by the document evidencing the obligation.
(4) Only the Director signs a check in disbursement of funds unless he designates in writing no more than two persons, any one of whom may sign a check on his behalf. The Director transmits a copy of a designation to the Legislature.
Section 10.212. Unexpended funds.
(1) Unless otherwise provided by law, an appropriation which requires expenditure within a stated period becomes void to the extent that the appropriated sum is not obligated by the end of the period. A sum is available for expenditure for the purpose of the appropriation only if a valid obligation for payment of the sum occurs before the expiration of the period and the Director receives a copy of a valid document evidencing the obligation, certified by the allottee.
(2) The Director may cancel an obligation not liquidated within one year following the date it became payable, as evidenced by a valid document, if the sole reason for the obligation's not being liquidated was the failure of the party to whom the obligation was due to submit a valid claim for payment as required by the terms of the document evidencing the obligation.
Section 10.213. Reporting.
The Department of
Administration and Finance gives to the Legislature its monthly or other
periodic computer statement of the status of an appropriated sum, and upon
request gives the Legislature other data regarding Government finances or an
Amended by State Law 7-1.
When an unexpended
balance remains to the credit of an appropriation after the purposes of the
appropriation have been accomplished, after the period within which those
purposes may be accomplished has ended, or after the reasons for the
appropriation no longer exist, the Director, upon the receipt of a written
statement from the allottee or person charged with the duty of expending the
appropriation that all obligations have been fully paid and satisfied, may close
out the appropriation account and transfer the unexpended balance to the
appropriate fund of the Treasury.