§ 143C-1-1. Purpose and definitions. - North Carolina Statutes

Chapter 143C.

State Budget Act.

Article 1.

General Provisions.

§ 143C‑1‑1. Purpose and definitions.

(a)        Title of Chapter. –This Chapter is the "State Budget Act" and may be cited by that name.

(b)        The provisions ofthis Chapter shall apply to every State agency, unless specifically exemptedherein, and to every non‑State entity that receives or expends any Statefunds. No State agency or non‑State entity shall expend any State fundsexcept in accordance with an act of appropriation and the requirements of thisChapter. The provisions of Chapter 120 of the General Statutes shall continueto apply to the General Assembly and to control its expenditures and in theevent of a conflict with this Chapter, the provisions of Chapter 120 of theGeneral Statutes shall control. Nothing in this Chapter abrogates or diminishesthe inherent power of the legislative, executive, or judicial branch.

(c)        Purpose. – ThisChapter establishes procedures for the following:

(1)        Preparing therecommended State budget.

(2)        Enacting the Statebudget.

(3)        Administering theState budget.

(d)        Definitions. – Thefollowing definitions apply in this Chapter:

(1)        Appropriation. – Anenactment by the General Assembly authorizing the withdrawal of money from theState treasury. An enactment by the General Assembly that authorizes,specifies, or otherwise provides that funds may be used for a particularpurpose is not an appropriation.

(2)        Biennium. – The twofiscal years beginning on July 1 of each odd‑numbered year and ending onJune 30 of the next odd‑numbered year.

(3)        Budget. – A plan toprovide and spend money for specified programs, functions, activities, orobjects during a fiscal year.

(4)        Budget year. – Thefiscal year for which a budget is proposed and enacted.

(5)        Capital improvement.– A term that includes real property acquisition, new construction orrehabilitation of existing facilities, and repairs and renovations.

(6)        Capital ImprovementsAppropriations Act. – An act of the General Assembly containing appropriationsfor one or more capital improvement projects.

(7)        Certified budget. – Thebudget as enacted by the General Assembly including adjustments made for (i)distributions to State agencies from statewide reserves appropriated by theGeneral Assembly, (ii) distributions of reserves appropriated to a specificagency by the General Assembly, and (iii) organizational or budget changesdirected by the General Assembly but left to the Director to carry out.

(8)        Controller. – TheOffice of the State Controller.

(9)        Current OperationsAppropriations Act. – An act of the General Assembly estimating revenueavailability for and appropriating money for the current operations of Stategovernment during one or more budget years.

(10)      Departmental receipt.– Fees, licenses, federal funds, grants, fines, penalties, tuition, and othersimilar collections or credits generated by State agencies in the course ofperforming their governmental functions that are applied to the cost of aprogram administered by the State agency or transferred to the Civil Penaltyand Forfeiture Fund pursuant to G.S. 115C‑457.1, and that are not definedas tax proceeds or nontax revenues. Departmental receipts may include moneystransferred into a fiscal year from a prior fiscal year.

(11)      Director. – TheDirector of the Budget, who is the Governor.

(12)      Encumbrance. – Afinancial obligation created by a purchase order, contract, salary commitment,unearned or prepaid collections for services provided by the State, or otherlegally binding agreement.

(13)      Fiscal period. – Afiscal biennium beginning in odd‑numbered years or the first or secondfiscal year within a fiscal biennium.

(14)      Fiscal year. – Theannual period beginning July 1 and ending on the following June 30.

(15)      Fund. – A fiscal andaccounting entity with a self‑balancing set of accounts recording cashand other resources, together with all related liabilities and residualequities or balances, and changes therein, for the purpose of carrying onstated programs, activities, and objectives of State government.

(16)      General FundOperating Budget. – The sum of all appropriations from the General Fund for afiscal year, except appropriations for (i) capital improvements, includingrepairs and renovations, and (ii) one‑time expenditures due to naturaldisasters or other emergencies shall not be included.

(17)      Informationtechnology. – As defined in G.S. 147‑33.81(2).

(18)      Non‑Stateentity. – Any of the following that is not a State agency: an individual, afirm, a partnership, an association, a county, a corporation, or any otherorganization or group acting as a unit. The term includes a unit of localgovernment and public authority.

(19)      Nontax revenue. – Revenuethat is not a tax proceed and that is required by statute to be credited to theGeneral Fund.

(20)      Object or line item.– An expenditure or receipt in a recommended or enacted budget that isdesignated in the Budget Code Structure of the North Carolina Accounting SystemUniform Chart of Accounts prescribed by the Office of the State Controller.

(21)      Performanceinformation. – The organizational structure, agency activity statements,performance indicators, and analyses of program efficiency and effectiveness.

(22)      Public authority. – Amunicipal corporation that is not a unit of local government or a localgovernmental authority, board, commission, council, or agency that (i) is not amunicipal corporation and (ii) operates on an area, regional, or multiunitbasis, and the budgeting and accounting systems of which are not fully a partof the budgeting and accounting systems of a unit of local government.

(23)      Purpose or program. –A group of objects or line items for support of a specific activity outlined ina recommended or enacted budget that is designated by a nine‑digit fundcode in accordance with the Budget Code Structure of the North CarolinaAccounting System Uniform Chart of Accounts prescribed by the Office of theState Controller.

(24)      State agency. – Aunit of the executive, legislative, or judicial branch of State government,such as a department, an institution, a division, a commission, a board, acouncil, or The University of North Carolina. The term does not include a unitof local government or a public authority.

(25)      State funds. – Anymoneys including federal funds deposited in the State treasury except moneysdeposited in a trust fund or agency fund as described in G.S. 143C‑1‑3.

(26)      State resources. – Allfinancial and nonfinancial assets of the State.

(27)      State revenue. – Anincrease, other than interfund transfers and debt issue proceeds, in thefinancial assets of any State governmental or proprietary fund.

(28)      Statutoryappropriation. – An appropriation that authorizes the withdrawal of funds fromthe State treasury during fiscal years extending beyond the current fiscalbiennium, without further act of the General Assembly.

(29)      Unit of localgovernment. – A municipal corporation that has the power to levy taxes,including a consolidated city‑county, as defined by G.S. 160B‑2(1),and all boards, agencies, commissions, authorities, and institutions thereofthat are not municipal corporations.

(30)      Unreserved fundbalance. – The available General Fund cash balance effective June 30 afterexcluding documented encumbrances, unearned revenue, federal grants, statutoryrequirements, and other legal obligations to General Fund cash as determined bythe State Controller. Beginning unreserved fund balance equals endingunreserved fund balance from the prior fiscal year. (2006‑66, s. 6.19(h);2006‑203, s. 3; 2006‑221, s. 3A; 2006‑259, s. 40(h); 2007‑393,s. 2.)