Arkansas Administrative Code › Agency 006 - Department of Finance and Administration › Division 09 - Office of Accounting › Rule 006.09.06-001 - Revisions to the Financial Management Guide

Current through Register Vol. 49, No. 6, June, 2024
INTRODUCTION
The purpose of the Financial Management Guide,
				hereafter referred to as "Guide," is to provide adequate internal control and
				accountability over financial and administrative affairs of Arkansas State
				Government. The Guide also provides assistance to agencies in gathering and
				maintaining information needed for management decision-making and all financial
				reporting. The policies and procedures in this Guide are the minimum
				requirements that State agencies must meet. An agency may adopt additional
				policies and procedures in greater detail or use additional or alternative
				supporting documentation, as long as the agency meets the required minimum
				standards.
The Director of the Department of Finance and
				Administration, hereinafter referred to as "Director," is required by the
				General Provisions of the Public Finance Law (ACA §
									19-1-207
				) to exercise supervision over the general accounting system of the State and
				of State agencies. The Director also serves as the Chief Fiscal Officer of the
				State.
The Director of the Department of Finance and
				Administration is authorized to promulgate rules and regulations necessary to
				discharge the duties of the Department of Finance and Administration by
				Arkansas Code Annotated (ACA) §
									19-1-208.
				In addition, the DFA Director is required under ACA §
									19-1-209(a)
				to publish such regulations issued by him for compliance with the State's
				Accounting and Budgetary Procedures Law. This requirement is met by publishing
				the "Financial Management Guide." The Guide resides on the Department of
				Finance and Administration's (DFA) web site at
http://www.state.ar.us/dfa/accounting/index.html
and is also available in printed form upon request. Requests for printed copies
				of the Guide may be made in the form of an e-mail to the DFA-Office of
				Accounting (DFA-OA) at acctuser@dfa. state, ar. us or by writing to the Office
				of Accounting at P.O. Box 3278, Little Rock, AR 72203.
The Department of Finance and Administration-Office of
				Accounting (DFA-OA) is charged with ensuring that the accounting functions of
				the State's Financial Management System are conducted in a manner consistent
				with Arkansas Law. The primary statutory responsibilities, functions, and
				authority of the Office of Accounting are contained in the State General
				Accounting and Budgetary Procedures Law (ACA Title 19, Chapter 4), the State
				Revenue Stabilization Law (ACA Title 19, Chapter 5.), and the State Revenue
				Classification Law (ACA Title 19, Chapter 6).
The mission of DFA-OA is to carry out its statutory
				responsibilities in a service-oriented manner while maintaining a high degree
				of fiscal integrity and to improve management of financial resources statewide
				by providing to all activities of State government a fully adequate accounting
				and reporting system.
All agencies of the State of Arkansas must comply with
				this Guide unless otherwise exempted from certain provisions by specific
				legislation contained in the Arkansas Code or the Constitution of the State of
				Arkansas.
The Department of Finance and Administration adheres to
				the spirit and letter of the Freedom of Information Act of 1967 as stated in
				ACA§
									25-19-101 et
				seq. Please contact the Office of Accounting if you have questions about the
				Financial Management Guide.
You can e-mail the office at acctuser@dfa.state.ar.us
				or call (501) 682-1675 or write:
Department of Finance and Administration Office of
				Accounting
P.O. Box3278 Little Rock, AR 72203
About the Guide
This Guide is published and maintained on the
				Department of Finance and Administration, Office of Accounting (DFA-OA) web
				site at
http://www.state.ar.us/dfa/accounting/index.html
.
				The format of the Guide, to the extent possible, is: law, followed by policy
				(regulation) and then by procedure.
The Arkansas Accounting and Budgetary Procedures Law,
				Title 19, Chapter Four and various other Arkansas laws that have a direct
				impact on State financial management practices appear in the form of Arkansas
				Code. The Arkansas Code appears in normal, non-bolded and non-italicized type.
				The numbering system used is keyed to the numbering of the Arkansas Code of
				1987 Annotated The title, chapter, subchapter and section of the code
				references are contained within the number. Thus, in the designation "
				19-4-905,"
				the "19" indicates the provision is in Title 19, the "4" indicates chapter 4
				and the "9" in 905 means sub-chapter 9, with the "05" indicating the fifth
				section of the sub-chapter. Following the printed code, or excerpts of the code
				(excerpts include quotation marks at the beginning and end of the excerpts),
				will be policies (regulations) and/or procedures. The entire Title 19 Chapter
				four is included in this document whether or not a regulation exists to address
				each particular sub-title of the Code.
At the beginning of the code, the code number
				appears-example:
				19-4-905.
At the beginning of a policy (regulation) (R), the
				number of the policy (regulation), numbered in sequence, identifies the code it
				accompanies-example: Rl-
				19-4-905.
				The text of policies (regulations) and procedures appear in bold print and
				italics.
The appendices are identified with numeric designations
				that are reflective of the Guide language that referenced the applicable
				document (appendix).
All appendices are numbered with a "P" at the beginning
				and refer to a form, process or link to other information. The number following
				the "P" identifies the Arkansas Code and/or regulation to which the appendix
				applies-example: Pl-
				19-4-905.
Appendices contain such items as:
Index of forms and appendices
Forms
Examples
Instructions
Key to abbreviations and acronyms
Glossary of terms
Frequently asked questions (FAQs)
The purpose of the appendices is to provide pertinent
				material that is subject to frequent change, particularly items that are
				related to the State's Financial Management System. To the extent possible,
				processes, particularly those demonstrating transactions in the Arkansas
				Administrative Statewide Information System, hereafter referred to as "AASIS,"
				will be referred to in the text, but located outside the body of this document
				as appendices with links to them. This will permit the ability to change and
				update procedures and processes to conform to changes in the system without
				making policy changes.
In addition to changes in material located outside of
				this document (appendices), references to computer system screen titles,
				transaction codes and General Ledger accounts may be changed (updated) from
				time to time in the Guide as deemed necessary. These changes are considered to
				be technical in nature and, therefore, will not necessitate invoking the rule
				making process.
Categories of Agencies
The use of this Guide will vary with the particular
				accounting software utilized by an agency to record transactions in its books
				of original entry. There are three types of agencies for the purpose of use and
				access within the State's Financial Management System. They
				are:
USER AGENCY-An agency that has direct online access to
				AASIS. All types of transactions are entered on a real time basis by the
				agency.
SERVICE BUREAU AGENCY - Generally, a small agency that
				utilizes the Service Bureau within the DFA-Offtce of Accounting to enter
				transactions into AASIS and provide reports. These agencies do not have direct
				access to AASIS.
REPORTING AGENCY-An agency that utilizes a 'stand
				alone" accounting system as its original books of record for its accounting
				transactions. The agency transfers, deposits, checks and processes journal
				entries to AASIS through an electronic interface process for budgetary control
				purposes. Some reporting agencies have limited online access such as deposit
				and journal entry functions.
Title 19 PUBLIC FINANCE
CHAPTER
			 4 STATE ACCOUNTING AND BUDGETARY PROCEDURES
SUBCHAPTER 1 GENERAL PROVISIONS
19-4-101. Title.
This chapter shall be referred to and may be cited as the
				"General Accounting and Budgetary
Procedures Law" of Arkansas.
History. Acts 1973, No. 876, § 1; A.S.A. 1947, § 13-327.
19-4-102. Purpose.
(a) General Policy.
(1) It is the policy of the State of Arkansas
			 to:
(A) Maintain on a sound financial basis
			 the state and all of its agencies, boards, commissions, departments, and
			 institutions, all referred to in this chapter as "agencies" unless otherwise
			 necessary;
(B) Provide adequate
			 accounting for all fiscal transactions; and
(C) Provide for uniformity in budget
			 preparation, presentation, and execution.
(2) For these purposes, the general
			 provisions of this chapter are intended to:
(A) Establish uniformity in operating and
			 capital budget preparation, presentation, and execution by establishing certain
			 duties, responsibilities, and functions of the executive and legislative
			 branches of the state government;
(B) Prohibit deficit spending by establishing
			 standards for the execution of budgets approved by the General
			 Assembly;
(C) Provide methods of
			 internal accounting control by establishing and supervising the accounting
			 systems of state agencies;
(D)
			 Establish an adequate classification and coding system for all revenue receipts
			 and disbursements;
(E) Establish
			 methods of voucher examination and approval for expenditures of funds deposited
			 in the State Treasury and, if necessary, other depositories;
(F) Establish uniform procedures for the
			 preparation of disbursing documents;
(G) Establish procedures for forecasting
			 economic conditions, establish an adequate technique of revenue estimating, and
			 provide for tax research and a method for standardization of
			 statistics;
(H) Develop methods for
			 improvement and economy in organization and administration of
			 agencies;
(I) Authorize the
			 promulgation of reasonable rules and regulations not inconsistent with
			 applicable laws to achieve the purposes and intent of this chapter;
			 and
(J) Further define the powers
			 and duties of the Director of the Department of Finance and Administration,
			 sometimes referred to as the Chief Fiscal Officer of the State, the Auditor of
			 State, and the Treasurer of State in connection with general accounting,
			 budgetary, and fiscal procedures.
(b) Comprehensive Budgeting and Financial
			 Management System. It is also the purpose of this chapter to establish a
			 comprehensive system of state budgeting and financial management which will
			 further the capacity of the General Assembly to plan and finance the services
			 which it determines the state should provide for its citizens and which will
			 further the capacity of the Governor to make budgetary recommendations to the
			 General Assembly and to execute the laws of this State. The system shall
			 include procedures for:
(1) The orderly
			 establishment, continuing review, and periodic revision of programs, financial
			 goals, and policies of the State;
(2) The development, coordination, and review
			 of long-range programs and their financing that will implement goals and
			 policies authorized by the General Assembly and the Governor;
(3) The preparation, analysis, presentation,
			 enactment, and execution of budgets that authorize specific programs, policies,
			 and goals and that focus attention on State services and their costs;
(4) The evaluation of alternatives to
			 existing programs, policies, and goals that would provide more economic,
			 efficient, or effective State services; and
(5) An evaluation and reporting system which
			 will provide measurements of the effectiveness of program performance.
History. Acts 1973, No. 876, § 2; A.S.A. 1947, § 13-328.
19-4-103.
			 Penalty.
With respect to all matters for which penalties have not
				otherwise been provided for in this act, any person who shall knowingly violate
				any of the provisions of this act shall be guilty of a misdemeanor and upon
				conviction shall be fined in any amount not to exceed one thousand dollars
				($1,000).
History. Acts 1973, No. 876, § 29; A.S.A. 1947, §
				13-355.
19-4-104. Rules and
			 regulations.
The Chief Fiscal Officer of the State is empowered to make,
				amend, and enforce such reasonable rules and regulations, not inconsistent with
				law, as he shall deem necessary and proper to effectively carry out the
				provisions of this chapter and the public policy as set forth in § 19-4-102.
				Rules and regulations promulgated shall be published in an administrative
				procedures manual and distributed to the various State agencies.
History. Acts 1973, No. 876, § 28; A.S.A. 1947, §
				13-354.
Rl-19-4-104 Adoption of Rules and
				Regulations
Policies of the DFA-Office of Accounting are
				adopted under the provisions of the Arkansas Administrative Procedures Act.
				Refer to Arkansas Law ACA §
													25-15-201 et
				seq.
R 2-19-4 -104 Open Government
				Policy
The Department of Finance and
				Administration-Office of Accounting conducts its business in accordance with
				the Freedom of Information Act as outlined below:
General
The Freedom of Information Act was adopted in
				1967 to ensure that citizens are informed about the actions of the State. The
				law applies to any bureau, commission, or agency of the State, or any political
				subdivision of the State, including municipalities, counties, townships, school
				districts, boards of education, and all other boards, bureaus, commissions, or
				organizations in the State of Arkansas, except grand juries, supported wholly
				or in part by public funds or expending public funds. ACA §
													25-19-101
				etseq.
Open
				Meetings
Except as otherwise specifically provided by law,
				all meetings, formal or informal, special or regular, of the governing body of
				a State public entity (as delineated above) shall be open to the public. Public
				notice of meetings must be given in advance. Alternative procedures are
				established for special and emergency meetings.
Executive sessions, closed to the public, are
				allowed only in certain limited circumstances such as when certain confidential
				personnel matters are being discussed If an executive session is permissible,
				the person presiding over the meeting must announce the specific purpose of the
				executive session in public before going into session. Strict adherence to open
				meeting requirements is essential to an informed citizenry, maintaining
				credibility and trust in government. ACA §
													25-19-106
19-4-105.
			 Continuing studies and investigations.
(a) The
			 Chief Fiscal Officer of the State is directed to make continuing studies and
			 investigations of the operation of State agencies and to make recommendations
			 to the General Assembly, the Legislative Council, and the Governor about
			 improvements which should be made in order to:
(1) Safeguard against excessive expenditures
			 of appropriations and funds;
(2)
			 Promote economy, efficiency, and control in the operation of State
			 agencies;
(3) Properly execute
			 budgets; and
(4) Accomplish the
			 purposes of this chapter as intended by the General Assembly.
(b)
(1) All internal audit documentation,
			 including notes, memoranda, preliminary drafts of audit reports, and other data
			 gathered in the preparation of internal audit reports by the Office of Internal
			 Audit, created within the Department of Finance and Administration by
			 Governor's Executive Order 98-08, are privileged and confidential and are
			 exempt from the Freedom of Information Act of 1967, §
												25-19-101 et
			 seq., except as provided in subdivision (b)(2) of this section.
(2)
(A) The
			 exemption shall not apply to completed internal audits of the Office of
			 Internal Audit after a final report of the internal audit has been presented to
			 the Chief Fiscal Officer of the State and to the Governor or the Governor's
			 designee.
(B) The final report and
			 copies of any supporting documentation shall then be open to public inspection
			 and copying, except for documents that are exempt from disclosure under other
			 law. History. Acts 1973, No. 876, § 2; A.S.A. 1947, § 13-328; Acts 2001, No.
			 1083, § 1.
19-4-106. Legislative staff consultation.
The Department of Finance and Administration shall consult with
				the Legislative Auditor and the director of the budget function of the Bureau
				of Legislative Research throughout each stage of planning and implementation
				for any new statewide accounting system. This required consultation and
				involvement is to ensure that those capabilities to provide the required
				services to members and committees of the General Assembly are incorporated
				into the system. History. Acts 1999, No. 973, § 2.