Local Entity Budget Execution: Enforcement Administration

Posted on Dec 7, 2024 in Law & Jurisprudence

Enforcement Administration

Article 37. Income Execution

The financial year is charged to the rights recognized in the same, whatever the period arising.

Article 38. Income Execution Phase

  1. The management of the revenue budget will be held in the following phases:
    • a) Recognition of the right.
    • b) Recovery of law.
  2. The “recognition” of the law is the instrument which is chargeable under the specific rules of each payment, a right in favor of the local entity.
  3. The “charge” of the law is an operation which is realized by joining the Treasury, a right recognized previously or simultaneously.

Article 39. General Principles for Implementation of Expenditure

Regulation of budget implementation in their spending side is adapted to the following principles:

Paragraph 1. ยบ of Article 39 drawn up by the second paragraph of Article 18 of the N. Foral [BIZKAIA] 5 / 2008, 30 June, approving tax measures to stimulate economic activity, adjusting the corporate income tax accounting reform and other tax measures (“BOB” 10 July), with effect from the day following the publication of that rule. Duration: 11 July 2008

  • a) Principle of future administrative control, so that every member of the procedural act is performed after checking the correct execution of previous transactions.
  • b) Principle of supporting documentation of all members of process operations, including warrants to justify.
  • c) Principle of a written record of compliance with the operations by those responsible.

Article 40. Expenditure Implementation Phases

  1. The management of the expenditure budget will be held in the following phases:
    • a) Authorization of expenditure.
    • b) The provision or spending commitment.
    • c) Obligation recognized.
    • d) Management of payment.
    • e) Payment.
  2. The authorization of the expenditure is the act by which it is remembered its realization by a certain or approximate amount under certain appropriations made for this purpose, all or part of it available.
  3. The provision or spending commitment is the act whereby it is agreed, following the formalities established by law, incurring expenditures previously authorized for an amount determined exactly.
  4. The recognition and settlement of the obligation is the act by which the existence of a claim against the entity arising from an authorized expenditure and committed is declared.
  5. Management means the transaction by paying the charge issuing a payment order against the Treasury of the local entity in connection with a previously recognized obligation.

Article 41. Powers

  1. Within the appropriations in the budgets of the administration of the local entity shall file the authorization and expenditure to the President or the House of the Corporation in accordance with the allocation of powers established by the regulations.
  2. It corresponds to the President of the Corporation’s recognition of the obligations arising from commitments legally acquired.
  3. The powers referred to in the preceding paragraphs may be deconcentrated or delegated as provided in Article 23 of Law 7 / 85 of April 2, Regulating the bases of local government, devolution and delegation to be collected for each year in the Standard Budget Execution.
  4. In the Autonomous Bodies, the powers specified in the terms outlined above shall be exercised, corresponding to the bodies of those to which their statutes confer such powers.
  5. In the area of Budget Administration of the State agency, functions relating to the management of payments shall be the President of the Corporation, without prejudice, under the superior authority of the former, the Plenum of the Corporation may create a management unit Payments to exercise the administrative functions.
  6. The Payment in Autonomous Bodies shall exercise the same authority that, by Statute, is attributed.
  7. The issue of payment orders will accommodate the drawdown plan for Treasury to establish the Chairman that in any case, must contain the priority of personal expenses and obligations incurred in prior years.

Article 42. Documentation Supporting the Payment Order

  1. The payment order issued under the administration budget of the local self-government bodies and must be accompanied by supporting documentation of the implementation of the provision by the creditor or his right to receive the amount, all in accordance with contracts, agreements and arrangements on the basis of which he was authorized and committed expenditure.
  2. The preceptors of grants awarded under the administration budget of the local entity and its Autonomous Bodies shall be obliged to prove before its perception, which are current with their tax obligations with the Entity, and then to justify the application of these monies.

Article 43. Warrants to Justify

  1. Payment orders whose records are not to accompany the time of issuance, as provided in Article above, shall be considered as “to justify” and applies to the corresponding budgetary appropriations.
  2. Standard Budget Execution may establish rules governing the issuance of orders to justify budgets with spending, determining the general criteria, the quantitative limits and budgeting concepts to which they apply. The recipients of these orders will be required to justify the application of the amounts received later than three months and in any event before the year end, to be subject to liability regime established by current legislation. In no case may be issued new orders “to justify” the budget for the same purpose, to recipients that they had still holding funds pending justification.
  3. For the attentions of a recurrent or repetitive to justify the funds paid may have the status of fixed cash advances. Recipients of these funds will be required to justify the application of the sums received during the financial year in advance of incorporation.

Article 44. Cancellation of Credit at Closing

  1. Payment appropriations included in the budget of the Administration of the local authority and those of their autonomous administrative organization which, the last day of the financial year are not affected from obligations earned during the same shall lapse as of right, unless they are incorporated into the respective budget next financial year in accordance with Article 32 of this Standard.
  2. Similarly, the commitment appropriations, the last day of the financial year had not been used shall lapse, except as provided in Article 32 of this Standard.

Article 45. Responsibilities

Cost orders and payments, in any case, and the Auditors of local entities, when written warn not prohibited, be personally liable for any expenditure authorized and from any obligation to recognize, no credit or pay liquidated enough.