When the monthly statement of expenditures of an institution have been audited by the supervising department having control of such institution and found correct, the supervising department shall prepare an abstract, in duplicate, showing the name, residence, and the amount due each claimant, and the institution and the fund thereof on account of which the payment shall be made. The supervising department shall deliver one copy thereof to the office of management and budget and the other copy must be retained in the office of the department.

The office of management and budget, upon receipt of the certified abstract, after approval by the office of the budget, shall issue a warrant or warrants for the amount or amounts thereof and shall deliver the same to the supervising department for delivery to the proper officer of the institution, to be paid out in conformity with such rules as the supervising department may prescribe.