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Before any contract shall be effective, the Director of Finance shall approve it as to the availability of appropriated funds. He shall designate on every such contract, the appropriation under which it is made and shall give it a number in the order of its date. He shall, in the order in which each contract is numbered, charge the appropriation out of which expenditures thereunder will be made.
Sources: Act of June 25, 1919, P.L. 581, Article XII, Section 4.
Purposes: The Director of Finance is required to approve all contracts as to the availability of funds so that obligations will not be incurred in excess of available appropriations. While the expenditure of moneys under a contract may be deferred, prudent accounting requires funds in the appropriation to be set aside for the obligation incurred. See also Section 8-104.