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State Accounting and Budgetary Procedures 

Title 19 | Chapter 4 | Subchapter 1

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 violation 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; Acts 2005, No. 1994, 102.

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.

R1-19-4-104 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.

R2-19-4-104 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 et.seq.

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.