16.52(1)(1)
Keep separate accounts. The department shall keep in its office separate accounts of the revenues and funds of the state, and of all moneys and funds received or held by the state, and also of all encumbrances, expenditures, disbursements and investments thereof, showing the particulars of every encumbrance, expenditure, disbursement and investment.
16.52(2)
(2) Revenue accounts. The department shall place revenue estimates on the books of accounts and credit actual receipts against them as of the last day of each quarter. Except as provided in
s. 20.002 (2), any receipts applying to a prior fiscal year received between the day after the date for closing of books specified by the secretary under
sub. (5) (a) and the next succeeding such date specified by the secretary shall be credited by the secretary to the fiscal year following the year to which the receipts apply. Except in the case of program revenue and continuing appropriations, any refund of a disbursement to a general purpose revenue appropriation, applicable to any prior fiscal year, received between these dates may not be credited to any appropriation but shall be considered as a nonappropriated receipt. General purpose revenue (GPR) earned, as defined in
s. 20.001 (4) is not available for expenditure, whether or not applied to the fiscal year in which received.
16.52(3)
(3) Keep appropriation accounts. The department shall keep separate accounts of all appropriations authorizing expenditures from the state treasury, which accounts shall show the amounts appropriated, the amounts allotted, the amounts encumbered, the amounts expended, the allotments unencumbered and the unallotted balance of each appropriation.
16.52(5)
(5) Encumbrances and charges for prior fiscal year. 16.52(5)(a)(a) On a date specified by the secretary within 7 days of July 31 of each fiscal year, all outstanding encumbrances against an appropriation entered for the previous fiscal year shall be transferred by the secretary as encumbrances against the appropriation for the current fiscal year, and an equivalent prior year appropriation balance shall also be forwarded to the current year by the secretary. Payments made on previous year encumbrances forwarded shall be charged to the current fiscal year. All other charges incurred during any previous fiscal year, and not evidenced by encumbrances, which are presented for payment between the day after the date specified by the secretary under this paragraph in any fiscal year and the date specified by the secretary under this paragraph in the next succeeding fiscal year shall be entered as charges in the fiscal year following the year in which the charges are incurred. The requirements of this paragraph may be waived in whole or in part by the secretary with the advice of the state auditor on appropriations other than general purpose revenue appropriations and corresponding segregated revenue appropriations.
16.52(5)(b)
(b) After the date specified by the secretary under
par. (a), agencies shall be allowed not to exceed one month for reconciling prior year balances, correcting errors and certifying necessary adjustments to the department. No prior year corrections shall be permitted after that date, it being incumbent upon all agencies to completely reconcile their records with the department by that date. Each agency shall delegate to some individual the responsibility of reconciling its accounts as herein provided and shall certify the individual's name to the secretary. As soon as a reconciliation has been effected, the agency shall advise the secretary in writing of such fact and shall forward to the secretary a copy of such reconciliation. If any agency fails to reconcile its accounts as provided in this subsection, the person responsible for such reconciliation shall not be entitled to any further compensation for salary until such reconciliation is effected. With the approval of the state auditor any agency which relies extensively on central accounting records may be permitted by the secretary to file a statement of agreement in lieu of a reconciliation on all or part of its accounts.
16.52(5)(c)
(c) In addition to the annual reconcilement of accounts required by
par. (b), the secretary may request any state agency to reconcile its accounts with those of the department at such other times as the secretary deems necessary. The manner and form of the reconcilement shall be determined by the secretary.
16.52(6)
(6) Prior approval of purchase orders, etc. 16.52(6)(a)(a) Except as authorized in
s. 16.74, all purchase orders, contracts, or printing orders for any agency, as defined in
s. 16.70 (1e), shall, before any liability is incurred thereon, be submitted to the secretary for his or her approval as to legality of purpose and sufficiency of appropriated and allotted funds therefor. In all cases the date of the contract or order governs the fiscal year to which the contract or order is chargeable, unless the secretary determines that the purpose of the contract or order is to prevent lapsing of appropriations or to otherwise circumvent budgetary intent. Upon such approval, the secretary shall immediately encumber all contracts or orders, and indicate the fiscal year to which they are chargeable.
16.52(6)(b)
(b) Pursuant to
s. 16.72 and subject to
ss. 16.53 and
20.903 local purchases may be made or miscellaneous expenses incurred by any state department.
16.52(6)(c)
(c) Any department feeling itself aggrieved by the refusal of the secretary to approve any proposed encumbrance or payment under this section or
s. 16.53 may appeal from the secretary's decision to the governor, who, after a hearing and such investigation as the governor deems necessary, may set aside or modify such decision.
16.52(7)
(7) Petty cash account. With the approval of the secretary, each agency that is authorized to maintain a contingent fund under
s. 20.920 may establish a petty cash account from its contingent fund. The procedure for operation and maintenance of petty cash accounts and the character of expenditures therefrom shall be prescribed by the secretary. In this subsection, "agency" means an office, department, independent agency, institution of higher education, association, society, or other body in state government created or authorized to be created by the constitution or any law, that is entitled to expend moneys appropriated by law, including the legislature and the courts, but not including an authority created in
subch. II of ch. 114 or
subch. III of ch. 149 or in
ch. 52,
231,
233,
234,
237, or
279.
16.52(8)
(8) Refund accounts. The secretary shall promulgate rules permitting agencies, authorized to do so by the governor, to issue checks, share drafts or other drafts to refund amounts not to exceed $5 each. The secretary may establish petty cash funds for such agencies for the purpose of paying refunds.
16.52(9)
(9) Secretary to require accounts of state money, etc. The secretary shall require all persons receiving money or securities or having the disposition or management of any property of the state, of which an account is kept in the secretary's office, to render statements thereof to the secretary; and all such persons shall render such statements at such time and in such form as the secretary shall require.
16.52(10)
(10) Department of public instruction. The provisions of
sub. (2) with respect to refunds and
sub. (5) (a) with respect to reimbursements for the prior fiscal year shall not apply to the appropriation under
s. 20.255 (2) (ac).
16.52(11)
(11) Secretary to allocate departmental central services costs. The secretary may allocate and charge, and may prescribe the procedures for departments to allocate and charge, the central services costs of the department of administration or of individual departments to selected federal grants or contracts. The charges to departments for the central services costs incurred by the department of administration and the indirect costs incurred by the departments in the administration of federally-aided programs under grants or contracts shall be made in accordance with the procedures adopted by the secretary.
16.52(12)
(12) Date for interfund transfers. Whenever it is provided by law for a transfer of moneys to be made from one fund to another fund and no date is specified for the transfer to be made, the department shall determine a date on which the transfer shall be made or provide for partial transfers to be made on different dates, and transfer the moneys in accordance with its determination.
16.52 History
History: 1971 c. 125,
261;
1973 c. 243;
1975 c. 41 s.
52;
1977 c. 29;
1977 c. 196 s.
130 (3), (4);
1977 c. 272,
273,
418;
1979 c. 34 ss.
65 to
67,
2102 (43) (a);
1981 c. 14;
1983 a. 27 ss.
73,
74,
2202 (42);
1983 a. 368;
1985 a. 29;
1987 a. 399;
1989 a. 31,
336,
359;
1991 a. 39,
316;
1995 a. 27 ss.
296,
297,
9145 (1);
1997 a. 27;
2001 a. 16;
2003 a. 33;
2005 a. 25,
74,
335;
2007 a. 20,
97;
2009 a. 28,
276.
16.525
16.525
State aid recipients' accounting. Every association, society, institute or other organization that receives aid in any form through appropriations from the state shall report to the department in August of each year. Such annual report shall contain a detailed statement of all receipts and expenditures of such association, society, institute or organization for the fiscal year concluded on the preceding June 30, and such portions as are of special importance may be published in the biennial report of the department under
s. 15.04 (1) (d).
16.525 History
History: 1977 c. 196 s.
131;
1987 a. 186.
16.527
16.527
Appropriation obligations. 16.527(1)
(1)
Legislative findings and determinations. 16.527(1)(a)(a) Recognizing that the state, by prepaying part or all of the state's unfunded prior service liability under
s. 40.05 (2) (b) and the state's unfunded liability under
s. 40.05 (4) (b),
(bc), and
(bw) and
subch. IX of ch. 40, may reduce its costs and better ensure the timely and full payment of retirement benefits to participants and their beneficiaries under the Wisconsin Retirement System, the legislature finds and determines that it is in the public interest for the state to issue appropriation obligations to obtain proceeds to pay the state's anticipated unfunded prior service liability under
s. 40.05 (2) (b) and to pay part or all of the state's unfunded prior service liability under
s. 40.05 (2) (b) and the state's unfunded liability under
s. 40.05 (4) (b),
(bc), and
(bw) and
subch. IX of ch. 40.
16.527(1)(b)
(b) The legislature finds and determines that the purchase of any of the tobacco settlement revenues that had been sold by the secretary under
s. 16.63 from the net proceeds of appropriation obligations issued under this section is appropriate and in the public interest and will serve a public purpose.
16.527(2)(ad)
(ad) "Aggregate expected debt service and net exchange payments" means the sum of the following:
16.527(2)(ad)1.
1. The aggregate net payments expected to be made and received under a specified interest exchange agreement under
sub. (4) (e).
16.527(2)(ad)2.
2. The aggregate debt service expected to be made on obligations related to that agreement.
16.527(2)(ad)3.
3. The aggregate net payments expected to be made and received under all other interest exchange agreements under
sub. (4) (e) relating to those obligations that are in force at the time of executing the agreement.
16.527(2)(am)
(am) "Appropriation obligation" means an undertaking by the state to repay a certain amount of borrowed money that is payable from all of the following:
16.527(2)(am)1.
1. Moneys annually appropriated by law for debt service due with respect to such undertaking in that year.
16.527(2)(am)3.
3. Payments received for that purpose under agreements and ancillary arrangements described in
sub. (4) (e).
16.527(2)(b)
(b) "Evidence of appropriation obligation" means a written promise to pay an appropriation obligation.
16.527(2)(c)
(c) "Refunding obligation" means an appropriation obligation contracted to fund or refund all or any part of one or more outstanding appropriation obligations.
16.527(3)
(3) Authorization of appropriation obligations. 16.527(3)(a)(a) The department shall have all powers necessary and convenient to carry out its duties, and exercise its authority, under this section.
16.527(3)(b)1.1. Subject to the limitation under
subd. 2., the department may contract appropriation obligations of the state under this section for the purpose of paying part or all of the state's unfunded prior service liability under
s. 40.05 (2) (b) and the state's unfunded liability under
s. 40.05 (4) (b),
(bc), and
(bw) and
subch. IX of ch. 40.
16.527(3)(b)2.
2. The sum of appropriation obligations issued under this section for the purpose under
subd. 1., excluding any obligations that have been defeased under a cash optimization program administered by the building commission and any obligations issued pursuant to
subd. 3. may not exceed $1,500,000,000.
16.527(3)(b)3.
3. The department may contract appropriation obligations as the department determines is desirable to fund or refund outstanding appropriation obligations issued under this section, to pay issuance or administrative expenses, to make deposits to reserve funds, to pay accrued or funded interest, to pay the costs of credit enhancement, or to make payments under other agreements entered into under
sub. (4) (e).
16.527(3)(c)1.1. Before July 1, 2009, subject to the limitation under
subd. 2., the department may contract appropriation obligations of the state under this section for the purpose of purchasing any of the tobacco settlement revenues that had been sold by the secretary under
s. 16.63.
16.527(3)(c)2.
2. The sum of appropriation obligations issued under this section for the purpose under
subd. 1. may not exceed $1,700,000,000, excluding amounts representing original issue discount, unless a higher amount is required by Badger Tobacco Asset Securitization Corporation to defease any outstanding indebtedness secured by such tobacco settlement revenues and to release repurchased tobacco settlement revenues to the state free and clear of any security interest therein. The secretary's certification as to the amount so required shall be conclusive for all purposes of this section.
16.527(4)(a)(a) Money may be borrowed and evidences of appropriation obligation issued therefor pursuant to one or more written authorizing certifications under
sub. (5), unless otherwise provided in the certification, at any time, in any specific amounts, at any rates of interest, for any term, payable at any intervals, at any place, in any manner, and having any other terms or conditions that the department considers necessary or useful. Appropriation obligations may bear interest at variable or fixed rates, bear no interest, or bear interest payable only at maturity or upon redemption prior to maturity.
16.527(4)(b)
(b) The department may authorize evidences of appropriation obligation having any provisions for prepayment considered necessary or useful, including the payment of any premium.
16.527(4)(c)
(c) Interest shall cease to accrue on an appropriation obligation on the date that the obligation becomes due for payment if payment is made or duly provided for, but the obligation and accrued interest shall continue to be a binding obligation according to its terms until 6 years overdue for payment, or such longer period as may be required by federal law. At that time, unless demand for its payment has been made, it shall be extinguished and considered no longer outstanding.
16.527(4)(d)
(d) All money borrowed by the state pursuant to evidences of appropriation obligation issued under this section shall be lawful money of the United States, and all appropriation obligations shall be payable in such money.
16.527(4)(e)
(e) Subject to
pars. (h) and
(i), at the time of, or in anticipation of, contracting for the appropriation obligations and at any time thereafter so long as the appropriation obligations are outstanding, the department may enter into agreements and ancillary arrangements relating to the appropriation obligations, including trust indentures, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payments made or received pursuant to any such agreement or ancillary arrangement shall be made from or deposited as provided in the agreement or ancillary arrangement. The determination of the department included in an interest exchange agreement that such agreement relates to an appropriation obligation shall be conclusive.
16.527(4)(f)
(f) All evidences of appropriation obligation owned or held by any state fund are outstanding in all respects and the state agency controlling the fund shall have the same rights with respect to an evidence of appropriation obligation as a private party, but if any sinking fund acquires evidences of appropriation obligation that gave rise to such fund, the obligations are considered paid for all purposes and no longer outstanding and shall be canceled as provided in
sub. (8) (e). All evidences of appropriation obligation owned by any state fund shall be registered to the fullest extent registrable.
16.527(4)(g)
(g) The state shall not be generally liable on evidences of appropriation obligation and evidences of appropriation obligation shall not be a debt of the state for any purpose whatsoever. Evidences of appropriation obligation, including the principal thereof and interest thereon, shall be payable only from amounts that the legislature may, from year to year, appropriate for the payment thereof.
16.527(4)(h)1.1. Subject to
subd. 2., the terms and conditions of an interest exchange agreement under
par. (e) shall not be structured so that, as of the trade date of the agreement, both of the following are reasonably expected to occur:
16.527(4)(h)1.a.
a. The aggregate expected debt service and net exchange payments relating to the agreement during the fiscal year in which the trade date occurs will be less than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable during that fiscal year if the agreement is not executed.
16.527(4)(h)1.b.
b. The aggregate expected debt service and net exchange payments relating to the agreement in subsequent fiscal years will be greater than the aggregate expected debt service and net exchange payments relating to the agreement that would be payable in those fiscal years if the agreement is not executed.
16.527(4)(h)2.a.
a. The department receives a determination by the independent financial consulting firm that the terms and conditions of the agreement reflect payments by the state that represent on-market rates as of the trade date for the particular type of agreement.
16.527(4)(h)2.b.
b. The department provides written notice to the joint committee on finance of its intention to enter into an agreement that is reasonably expected to satisfy
subd. 1., and the joint committee on finance either approves or disapproves, in writing, the department's entering into the agreement within 14 days of receiving the written notice from the commission.
16.527(4)(h)3.
3. This paragraph shall not limit the liability of the state under an agreement if actual contracted net exchange payments in any fiscal year exceed original expectations.
16.527(4)(i)
(i) With respect to any interest exchange agreement or agreements specified in
par. (e), all of the following shall apply:
16.527(4)(i)1.
1. The department shall contract with an independent financial consulting firm to determine if the terms and conditions of the agreement reflect a fair market value, as of the proposed date of the execution of the agreement.
16.527(4)(i)2.
2. The interest exchange agreement must identify by maturity, bond issue, or bond purpose the obligation to which the agreement is related. The determination of the department included in an interest exchange agreement that such agreement relates to an obligation shall be conclusive.
16.527(4)(i)3.
3. The resolution authorizing the department to enter into any interest exchange agreement shall require that the terms and conditions of the agreement reflect a fair market value as of the date of execution of the agreement, as reflected by the determination of the independent financial consulting firm under
subd. 1., and shall establish guidelines for any such agreement, including the following:
16.527(4)(i)3.a.
a. The conditions under which the department may enter into the agreements.
16.527(4)(i)3.c.
c. The aspects of risk exposure associated with the agreements.
16.527(4)(i)3.e.
e. The standards for the procurement of, and the setting aside of reserves, if any, in connection with, the agreements.
16.527(4)(i)3.f.
f. The provisions, if any, for collateralization or other requirements for securing any counterparty's obligations under the agreements.
16.527(4)(i)3.g.
g. A system for financial monitoring and periodic assessment of the agreements.
16.527(4)(j)
(j) Semiannually, during any year in which the state is a party to an agreement entered into pursuant to
par. (e), the department shall submit a report to the cochairpersons of the joint committee on finance listing all such agreements. The report shall include all of the following:
16.527(4)(j)1.
1. A description of each agreement, including a summary of its terms and conditions, rates, maturity, and the estimated market value of each agreement.
16.527(4)(j)2.
2. An accounting of amounts that were required to be paid and received on each agreement.
16.527(4)(j)3.
3. Any credit enhancement, liquidity facility, or reserves, including an accounting of the costs and expenses incurred by the state.
16.527(4)(j)4.
4. A description of the counterparty to each agreement.
16.527(4)(j)5.
5. A description of the counterparty risk, the termination risk, and other risks associated with each agreement.
16.527(5)(a)(a) No evidence of appropriation obligation may be issued by the state unless the issuance is pursuant to a written authorizing certification. The certification shall set forth the aggregate principal amount of appropriation obligations authorized thereby, the manner of sale of the evidences of appropriation obligation, and the form and terms thereof. The certification shall be signed by the secretary, or his or her designee, and shall be transmitted to the governor.
16.527(5)(b)
(b) Appropriation obligations may be sold at either public or private sale and may be sold at any price or percentage of par value. The department may provide in any authorizing certification for refunding obligations under
sub. (7) that they be exchanged privately in payment and discharge of any of the outstanding obligations being refinanced. All appropriation obligations sold at public sale shall be noticed as provided in the authorizing certification. Any bid received at public sale may be rejected.
16.527(6)(a)(a) Evidences of appropriation obligation may be in the form of bonds, notes, or other evidences of obligation, and may be issued in book-entry form or in certificated form. Notwithstanding
s. 403.104 (1), every evidence of appropriation obligation is a negotiable instrument.
16.527(6)(b)
(b) Every evidence of appropriation obligation shall be executed in the name of and for the state by the governor and shall be sealed with the great seal of the state or a facsimile thereof. The facsimile signature of the governor may be imprinted in lieu of the manual signature of such officer, as the department directs, if approved by such officer. An evidence of appropriation obligation bearing the manual or facsimile signature of a person in office at the time such signature was signed or imprinted shall be fully valid notwithstanding that before or after the delivery thereof such person ceased to hold such office.
16.527(6)(c)
(c) Every evidence of appropriation obligation shall be dated not later than the date issued, shall contain a reference by date to the appropriate authorizing certification, shall state the limitation established in
sub. (4) (g), and shall be in accordance with the authorizing certification.
16.527(6)(d)
(d) An evidence of appropriation obligation shall be in such form and contain such statements or terms as determined by the department, and may not conflict with law or with the appropriate authorizing certification.
