1 Colo. Code Regs. § 101-1-7-3

Current through Register Vol. 48, No. 1, January 10, 2025

Rule 1 CCR 101-1-7-3 - OVEREXPENDITURES AND REQUIRED REPORTING

1.AUTHORITY

§24-37-303, C.R.S. (Governor's Budget Authority)

§ 24-75-109, C.R.S. (Overexpenditures)

§24-75-111(4), C.R.S. (Restriction)

§24-30-202(3), C.R.S. (Personal Liability)

§24-30-202(14), C.R.S. (Misdemeanor and Penalty)

2.DEFINITIONS

2.1. Overexpenditure of Funds - An overexpenditure of funds exists when:

2.1.1. Total expenditures charged to a specific line item, based on the accrual basis of accounting, or based on the cash basis of accounting if statute requires expenditures to be recorded on a cash basis, exceed the established spending authority, as defined in § 24-75-109 (1.5), C.R.S and reflected on the State Financial System or on an approved State Agency or Institution of Higher Education Financial System.

2.1.2. Non-general funded appropriations within the General Fund have insufficient revenue to support expenditures.

2.1.3. Appropriations within a cash fund have insufficient revenue and fund balance to support expenditures.

3.RULE

3.1. Expenditures shall not exceed established spending authority unless specifically allowed by law. Expenditures shall not exceed the amount of either the accrued and collected revenue or the available fund balance at the end of the State fiscal year.

3.2. Required Notification of Overexpenditures of Funds

When the Chief Executive Officer becomes aware of an Overexpenditure of Funds within the State Agency or Institution of Higher Education, the Chief Executive Officer shall submit notice within 10 working days to the Governor, through the Office of State Planning and Budgeting, and to the State Controller.

3.3. Statutory Penalty

Unless the Overexpenditure of Funds is approved by the State Controller in accordance with §4.1.1 of this Fiscal Rule, any State Official or employee of the State convicted of knowingly causing an Overexpenditure of Funds shall be subject to statutory fines and/or imprisonment in county jail. In addition, the individual may be personally liable for the overexpenditure amount.

4.EXCEPTIONS TO RULE

4.1. Overexpenditure of Funds Approved by the Governor (§ 24-75-109, C.R.S.)

4.1.1. The State Controller, with the approval of the Governor, may allow an Overexpenditure of Funds. Prior to recommending to the Governor that the Overexpenditure of Funds be approved, the State Controller shall verify that the statutory requirements allowing the Overexpenditure of Funds have been met. Overexpenditure of Funds shall only be approved between May 1 of any fiscal year and the close of that fiscal year. This authority is only valid so long as §24-75-109, C.R.S. remains in effect and is not repealed.

4.1.2. For any Overexpenditure of Funds the State Controller shall restrict an amount equal to the overexpenditure in the next fiscal year's appropriation for the State Agency or Institution of Higher Education involved. The amount shall be restricted from a corresponding item or items of appropriation. Any amounts so restricted shall not be expended unless and until such restriction is released.

4.2. Overexpenditure of Funds Approved by the Joint Budget Committee

4.2.1. Overexpenditures of Funds occurring when the General Assembly is not in session arising out of unforeseen circumstances may be authorized by the Joint Budget Committee.

1 CCR 101-1-7-3

41 CR 19, October 10, 2018, effective 11/1/2018

45 CR 11, June 10, 2022, effective 7/1/2022

46 CR 11, June 10, 2023, effective 7/1/2023

47 CR 08, April 25, 2024, effective 7/1/2024