Pursuant to §4 (1) of the State Finance Law, no money shall be paid from any fund under the management of the state, or any agency or officer thereof except in pursuance of an appropriation by law. Section 4 (5) also provides that financial resources may be transferred from one fund to another with specific statutory authorization for such transfer.

These transfer authorizations may be contained in appropriation acts or within bills that are enacted with the budget to implement various provisions of the appropriation acts. These bills are commonly referred to as "Omnibus Article VII language bills" and provide the authorizations necessary to transfer federal grant funds to reimburse other state funds for costs associated with the administration of federal grant funds. These costs include, but are not limited to:

• Personal services;
• Department operations; and
• Employee fringe benefits.

Guide to Financial Operations

REV. 03/19/2012