Health & Saf. Code, § 6801

(a) As an alternative to the functions of the treasurer, the district board may elect to disburse funds of the district. Such election shall be made by resolution of the board and the filing of a certified copy thereof with the treasurer. The treasurer shall thereupon and thereafter deliver to the district all funds of the district. Such funds shall be deposited by the board in a bank or banks, or savings and loan association or savings and loan associations, approved for deposit of public funds. The treasurer shall deposit with the district, prior to October 1st of each year, a surety bond in the annual amount fixed by the district board. The deposit and withdrawal of funds of the district shall thereafter be subject to the provisions of Article 2 (commencing at Section 53630), Chapter 4, Part 1, Division 2, Title 5, of the Government Code. The district board shall appoint a district treasurer who shall be responsible for the deposit and withdrawal of funds of the district.

(b) Funds shall be withdrawn by the district treasurer only by written order of the district board, signed by the president and secretary.

(c) Notwithstanding subdivision (b), the board may adopt a procedure that provides for checks or warrants to pay claims and demands without approval by the board of directors before payment if the district treasurer determines that the demands are payable within the district’s approved budget. The procedure shall contain appropriate internal controls with measures to prevent fraud and ensure accountability, and which are necessary for financial reporting in conformance with generally accepted accounting principles. Demands so paid shall be presented to the board of directors at the next regular meeting for review. Demands exceeding the district’s approved budget shall be subject to board approval.