Okla. Stat. tit. 62, § 62-34.64

A. Except as otherwise provided in the Oklahoma State Finance

Act and except for Automated Clearing House (ACH) debits for

transactional fees, procedures for paying claims or payrolls shall

include the following:

1. All miscellaneous claims and payroll claims for the payment

of money from the State Treasury shall be filed with the Director of

the Office of Management and Enterprise Services for audit and

settlement prior to being filed for payment with the State

Treasurer;

2. The Director of the Office of Management and Enterprise

Services may establish alternative procedures for the settlement of

claims whenever such procedures are more advantageous so long as

they are consistent with the requirements of state law;

3. Such alternative procedures shall be at the discretion of

the Director of the Office of Management and Enterprise Services and

may include, but are not limited to:

a. a procedure to permit consolidated payment to vendors

for claims involving more than one agency of the state

when audit and settlement of such claims, as

hereinafter provided, can in all respects be

accomplished,

b. procedures based upon valid statistical sampling

models for preaudit of claims, against contracts,

purchase orders and other commitments before entering

such claims against the accounts, and

c. policies, procedures and performance criteria for the

participation of agencies or departments, not

authorized by this section, to engage in an

alternative system for the settlement of claims; and

4. The Director of the Office of Management and Enterprise

Services may use a numeric or alphanumeric designation to cross-

reference claims or payrolls to check warrant numbers, transfer

entry or optional settlement mode used in the payment thereof.

Oklahoma Statutes - Title 62. Public Finance Page 104

B. Except for ACH debits for transactional fees, after claims

or payrolls or both have been properly audited and recorded against

the respective contracts, purchase orders, other commitments and

accounts, the Division of Central Accounting and Reporting shall

certify such claims or payrolls to the State Treasurer for payment.

C. Except for ACH debits for transactional fees, it shall be

the responsibility of the Division of Central Accounting and

Reporting to determine that:

1. All material legal requirements concerning the expenditure

of monies involved in each claim or payroll have been complied with;

2. Funds have been properly and legally allotted for the

payment of the claim or payroll; and

3. A sufficient balance exists for the payment of same.

D. The Director of the Office of Management and Enterprise

Services or bonded employees in the Division of Central Accounting

and Reporting authorized by the Director shall certify to the State

Treasurer that the claim or payroll has been approved for payment.

E. 1. The Director of the Office of Management and Enterprise

Services shall be authorized to establish necessary agency

disbursing funds to efficiently accommodate the cash flow

requirements of applicable federal regulations, bond indebtedness

and other directives deemed appropriate by the Director.

2. Agencies operating such disbursing funds are authorized to

establish a preaudit and settlement system for claims or payments or

both relating to the purposes of the stated directives.

3. The State Treasurer shall establish procedures for the state

in accordance with Federal Banking and National Automated Clearing

House Association standards and agencies shall be required to

utilize automated clearing house procedures established by the State

Treasurer.

4. No individual or entity shall be required to have a bank

account unless required by federal law or federal regulation.

5. Agencies shall be further required to present these

transactions to the Office of Management and Enterprise Services in

a summarized format and shall include any accounting information
to

utilize automated clearing house procedures established by the State

Treasurer.

4. No individual or entity shall be required to have a bank

account unless required by federal law or federal regulation.

5. Agencies shall be further required to present these

transactions to the Office of Management and Enterprise Services in

a summarized format and shall include any accounting information

necessary as determined by the Director of the Office of Management

and Enterprise Services including, but not limited to, information

related to federal law.

6. Administrative expenditures shall not be eligible for these

procedures.

7. The efficiency of the payment system shall be considered

when the interest earnings of the state are not diminished.

F. The Director of the Office of Management and Enterprise

Services shall be authorized to process payments for federal tax

withholding without claim forms. The Director shall establish a

separate fund for the purpose of accumulating federal income tax

withholding from payrolls and remitting same to the United States

Oklahoma Statutes - Title 62. Public Finance Page 105

Treasury. Institutions under the administrative authority of the

Oklahoma State Regents for Higher Education which are responsible

for processing payments for federal tax withholding shall be

authorized to process such payments to the United States Treasury

without claim forms.

G. 1. The Director of the Office of Management and Enterprise

Services shall be authorized to process, without claim forms,

interest payments to the U.S. Treasury as required by federal law.

2. Agencies are responsible for the accrual of such interest

liability of the state and shall provide payment to the Office of

Management and Enterprise Services in the amount and method

prescribed by the Director of the Office of Management and

Enterprise Services.

3. Any liability of the U.S. Treasury as determined by federal

law shall be deposited in the State Treasury and transferred by the

Director of the Office of Management and Enterprise Services to the

General Revenue Fund of the state subsequent to final determination

and necessary audit resolution.

H. Payments disbursed from the State Treasury shall be conveyed

solely through an electronic payment mechanism. The State Treasurer

may provide an exemption from the provisions of this subsection,

with cause, provided the number of exempted payments and a

corresponding list of causes shall be published in a regularly

updated report which is featured prominently on the State

Treasurer's website.

I. Notwithstanding any other provision of the Oklahoma State

Finance Act and subject to any applicable restrictions in the

Oklahoma Constitution, the Director of the Office of Management and

Enterprise Services may establish procedures by which agencies may

contract for, incur and account for transaction-based fees, such as

fees for accepting credit cards, that may be processed by ACH debit

without claim forms, provided the agency has sufficient statutory

authority for purchase. Prior to authorizing ACH debit transactions

without claim forms, state agencies shall provide notice to the

State Treasurer.