Fundamental Principles.
Section 2
SEC. 2. Fundamental Principles.—Local government financial affairs, transactions, and operations shall be governed by the fundamental principles set forth hereunder. No money shall be paid out of the treasury except in pursuance of a lawful appropriation or other specific statutory authority. Public funds and monies shall be spent solely for public purposes. Revenue is obtainable only from sources expressly authorized by law and collection thereof shall at all times be acknowledged properly. All monies officially received by a public officer in any capacity or upon any occasion shall be accounted for as government funds, except as may otherwise be specifically provided by law or competent authority. Trust funds shall not be paid out of the treasury except in fulfillment of the purpose for which the trust was created or fund received. Every officer of the government whose duties permit or require the possession or custody of government funds shall be properly bonded and such officer shall be accountable and responsible for said funds and for the safekeeping thereof in conformity with the provisions of law. Local governments shall formulate sound financial plans and the local budgets shall, by and large, be based on functions, activities, and projects, in terms of expected results. Fiscal responsibility shall, to the greatest extent, be shared by all those exercising authority over the financial affairs, transactions and operations of the local governments.