North Dakota Administrative Code Title 4 - Management and Budget, Office of
Overview: Title 4 NDAC — Office of Management and Budget
Title 4 NDAC contains the administrative rules adopted by the Office of Management and Budget (OMB) of North Dakota. The OMB is a central agency responsible for overseeing the state's budget preparation, fiscal management, procurement, personnel administration, and financial policies.
The rules in Title 4 ensure that state agencies follow consistent policies and procedures for budgeting, spending, and managing state resources. This promotes transparency, efficiency, and accountability in state government operations.
Statutory Authority
The Office of Management and Budget operates under authority granted by the North Dakota Century Code (NDCC) Chapter 54-44.1 and related statutes governing state financial management and budgeting.
Key statutory powers include:
Preparing and submitting the Governor’s budget to the legislature
Setting financial and administrative policies for state agencies
Managing state procurement and contract processes
Overseeing personnel systems and compensation plans
Administering grants and federal funds
The OMB is responsible for promulgating rules to carry out these duties, which are codified in Title 4 NDAC.
Key Functions and Rules Under Title 4 NDAC
1. Budget Preparation and Control
Procedures for agencies to prepare budget requests and submit them to OMB.
Rules governing budget adjustments, transfers between line items, and supplemental appropriations.
Financial reporting requirements for agencies to track expenditures against appropriations.
OMB's authority to review and approve or deny budget changes to ensure compliance with legislative intent.
2. Procurement and Contracting
Rules governing competitive bidding and procurement of goods and services by state agencies.
Thresholds for purchases requiring formal bids or quotations.
Procedures for contracts, amendments, renewals, and approvals.
Policies promoting fairness, cost-effectiveness, and transparency in contracting.
3. Personnel Management
Policies regarding hiring, classification, compensation, and employee benefits for state workers.
Rules for leave administration, employee conduct, grievance procedures, and disciplinary actions.
Procedures for workforce planning and staffing approvals.
Oversight of payroll and related financial controls.
4. Financial Reporting and Audits
Requirements for agencies to submit periodic financial reports to OMB.
Standards for internal controls, asset management, and compliance with state and federal laws.
OMB's role in coordinating state audits and responding to audit findings.
5. Grant Management
Rules for administering state and federal grants to agencies, local governments, and nonprofits.
Procedures for grant applications, award, monitoring, and reporting.
Requirements for matching funds and compliance with grant conditions.
6. Administrative Policies and Procedures
Rules addressing travel reimbursement, asset disposal, risk management, and other administrative functions.
Guidelines for emergency procurement or budget adjustments during unforeseen circumstances.
Implementation of legislative mandates affecting financial or personnel management.
Relevant Case Law Regarding Title 4 and OMB Authority
While few cases directly interpret specific administrative rules in Title 4 NDAC, courts have addressed the scope and limits of the OMB’s authority in managing state finances and personnel:
1. Budgetary Control and Legislative Authority
Legal Issue: Whether OMB exceeded its authority by reallocating funds contrary to legislative appropriations.
Legal Principle: Courts generally uphold the legislature's exclusive authority over appropriations but recognize OMB’s administrative discretion within those limits.
Outcome: OMB must act consistent with legislative intent; unauthorized budget reallocations may be invalidated.
2. Procurement and Contracting Disputes
Legal Issue: Challenges to OMB’s procurement decisions or bid awards.
Legal Principle: Courts defer to OMB’s expertise and discretion if procurement rules and procedures are followed fairly and consistently.
Outcome: Procurement decisions are upheld unless arbitrary, capricious, or violative of statutory rules.
3. Personnel and Employment Actions
Legal Issue: Disputes over hiring, firing, or disciplinary actions under OMB’s personnel rules.
Legal Principle: Employees may challenge adverse employment actions on due process grounds, but OMB’s personnel rules carry the force of law.
Outcome: Courts require OMB to follow its own procedures and ensure fair hearings when required.
4. Financial Reporting and Audits
Legal Issue: Agencies contesting OMB’s audit findings or corrective directives.
Legal Principle: OMB’s role in ensuring financial accountability is judicially recognized; agencies must comply with audit recommendations unless procedurally defective.
Outcome: Courts generally support OMB’s authority to enforce sound financial management.
Practical Implications of Title 4 NDAC
State Agencies must strictly comply with OMB rules on budgeting, procurement, and personnel, or face audit findings, budget freezes, or disciplinary action.
Employees in state government are governed by OMB’s personnel policies and benefit from clear procedures and protections.
Vendors and Contractors must follow OMB’s procurement rules to participate in state contracts fairly and transparently.
The Legislature relies on OMB for accurate budget information and fiscal control, enhancing oversight.
Summary
Title 4 of the North Dakota Administrative Code establishes the administrative framework for the Office of Management and Budget to manage the state’s financial, procurement, and personnel systems. These rules ensure that public resources are used efficiently, transparently, and lawfully.
Courts respect OMB’s authority within statutory limits, emphasizing due process in personnel actions and adherence to legislative appropriations. Compliance with Title 4 NDAC is essential for the smooth functioning of North Dakota’s state government.
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