Pol Statement No. The State of North Carolina operates on a cash basis and no department or institution is permitted to operate on credit.
Quarterly allotments provide funds for the payment of salaries and other operating expenses as due.
No commitments are to be made which will overdraw the allotment for the quarter or that will overdraw the budget subhead against which the commitment is made. All state contracts for supplies and materials and equipment are made with definite times for payments. All invoices must be settled in accordance with the provisions of the contract under which the purchases were made. Voucher registers for June should cover payments for all invoices for which goods have been received, all payrolls and all other obligations which are in order for liquidation during the fiscal year being closed. It is not permissible to liquidate obligations due in one fiscal year out of the appropriations made for a preceding or a following fiscal year.