7-3-1314. Payment and investigation of claims -- use of warrants. (1) A claim against the municipality may not be paid except by means of a warrant on the treasury issued by the director of finance. The director of finance may not issue a warrant for the payment of a claim unless the claim is evidenced by a voucher approved by the head of the department or office for which the indebtedness was incurred. The officer and the officer's surety are liable to the municipality for all loss or damage sustained by reason of the officer's negligent or corrupt approval of a claim.

(2) (a) The director of finance shall examine all payrolls, bills, and other claims and demands against the municipality and may not issue a warrant for payment unless the director finds that:

(i) the claim is in proper form, correctly computed, and approved;

(ii) the claim is legally due and payable; and

(iii) an appropriation has been made for the claim that has not been exhausted.

(b) The director of finance may investigate any claimant and for that purpose may summon any officer, agent, or employee of the municipality or any claimant or other person and examine the person upon oath or affirmation concerning the claim. If the director finds a claim to be fraudulent, erroneous, or otherwise invalid or that the appropriation out of which the claim is payable has been exhausted, the director may not issue a warrant for the claim. If the director of finance issues a warrant on the treasury authorizing payment of any claim in contravention of the provisions of this subsection (2), the director and the director's sureties are individually liable to the municipality for the amount of the warrant if paid.