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Revenue Stabilization Law  

Title 19 | Chapter 5 | Subchapter 1

TITLE 19 - PUBLIC FINANCE

CHAPTER 5 - REVENUE STABILIZATION LAW

SUBCHAPTER 1 - GENERAL PROVISIONS

19-5-101. Title.

This chapter shall be known and cited as the "Revenue Stabilization Law."

History. Acts 1973, No. 750, § 1; A.S.A. 1947, § 13-501.

PLEASE NOTE: Go to http://www.arkleg.state.ar.us/assembly/2011/2011R/Pages/Home.aspx under the heading "Arkansas Law" to view the entire Arkansas Code of 1987 Annotated.

R1-19-5-101 Funds, Revenue Distribution, Transfers, and Loans

FUNDS

Two definitions of fund exist within the State of Arkansas. The first type of fund is one established by Arkansas Law or the Chief Fiscal Officer of the State. The second type of fund is one established by governmental accounting standard for financial reporting.

There are two categories of funds per Arkansas Law: agency cash in bank funds and funds on deposit with the Treasurer of State.

Agency Cash in Bank Funds

These are moneys belonging to the State of Arkansas that are permitted to be kept in financial institutions other than the Treasurer of State. The funds may be either appropriated or non-appropriated. The Chief Fiscal Officer of the State must approve the creation of non-appropriated funds. See Section R1-19-4-805 for information regarding management of cash funds.

Funds on Deposit with the Treasurer of State

Funds on deposit with the Treasurer of State are established primarily and individually in either the Revenue Stabilization Act (19-5-101 et seq.) or the Revenue Classification Acts (19-6-101 et seq.). The remaining funds on deposit with the Treasurer of State are established individually by general or appropriation acts or by the Chief Fiscal Officer of the State as a result of authority granted to him to accomplish the intent of legislative enactment. The types of funds on deposit with the Treasurer of State are as follows:

A. Moneys as outlined in ACA 19-6-201 and ACA 19-6-301 will be on deposit in one of the following funds until distributed to the various operating funds of agencies in accordance with ACA 19-5-201:

1. General Revenue Fund Account – Revenue holding fund account of the State Apportionment Fund is termed AGA0000. The fund consists of revenues derived from taxes, permits, royalties, leases, fees, licenses and the sale of confiscated goods for the common good and operation of the state government, as listed in ACA 19-6-201.

2. Special Revenue Fund Account – Revenue holding fund account of the State Apportionment Fund is termed ASA0000. The fund consists of revenues derived from taxes, permits, fees and licenses for the operation of specific programs or purposes, as listed in the ACA 19-6-301.

3. Revenue Holding Fund Account –Fund account of the State Apportionment Fund is termed ARH0000. This fund consists of taxes, licenses, fees, penalties, interest or other income which at the time of being deposited with the Treasurer of State cannot be determined to be either special or general revenues. The revenues deposited to ARH are specifically nominated or determined by DFA to be deposited and/or adjusted to or from that fund group. An example of this is certain Insurance Department deposits.

B. Fees deducted as outlined in ACA 19-5-202(b) (2)(B)(i) will be distributed to the

following funds:

1. Constitutional Officers Fund and State Central Services Fund – The Constitutional Officers Fund is termed MCF0000, and the State Central Services Fund is termed HSC0000. These funds receive specific revenues and a proportionate share of certain fees calculated on General and Special Revenues. Additionally, the State Central Services Fund receives a service charge from agencies with cash funds.

C. After the deduction of the applicable fees, the remaining general and special revenues will be deposited into one of the following types of operating funds of the various state agencies:

1. General Revenue Operating Funds – Funds consist of revenue as set forth in the ACA 19-5-101 et seq. and the ACA 19-6-101 et seq.

a. State General Government Funds

b. Institutions of Higher Education Funds

c. Education Funds

d. Public School Fund

e. Department of Human Services

f. Public Health Fund

g. Technical College Funds

2. Special Revenue Funds – Funds consist of special revenues from taxes, permits, fees, and licenses for the operation of certain programs or for specific purposes as defined in the ACA 19-6-301.

D. Moneys collected that are not defined as general or special revenue in ACA 19-6-301 et seq. are deposited into one of the following types of funds for specific agencies:

1. Trust Funds – Funds consist of moneys received or collected and dedicated by law for specific purposes or certain bequests made to the State.

2. Federal Funds – Funds consist of moneys granted to the State or any of its agencies under the Acts of Congress or by any Federal agency.

3. Miscellaneous Revenue Funds – Funds consist of fines, penalties, interest or court costs for collection of any revenue, rental income, or non-revenue as defined in the ACA 19-6-101 et seq.

4. Paying Funds – Funds mix state, federal and other moneys to pay for programs out of one fund with various match rates.

5. Cash in Treasury Funds – Funds, commonly known as "N" funds, were formerly Cash in Bank Funds that are now held by the Treasurer of State and earn interest which is distributed in the Treasurer of State’s system and posted by the Department of Finance and Administration-Office of Accounting (DFA-OA) Funds Group into AASIS at the end of each month.

Pursuant to §19-4-801 and §19-5-206 cash funds deposited in the State Treasury as cash in treasury funds ("N" funds) are not required to pay the

1 ½% service charge.

Fund Structure

Fund structure follows a hierarchy that begins with the legally designated fund and includes all sub-funds. Funds are established by law and are set up by the DFA-OA-Funds Group. All funds have a specific coding structure currently comprised of seven characters and/or numbers. All funds on deposit with the Treasurer of State begin with three alpha characters and end with four numeric or alpha-numeric characters. All Cash in Bank funds begin with three numeric characters and end with four numeric characters. The State’s Financial Management System has the capability of up to ten characters/numbers for fund structure.

Creation of Funds

All requests for the creation of a fund or fund account must be sent to DFA-OA-Funds Group Manager after approval from the agency’s Budget Analyst in the Department of Finance and Administration – Office of Budget (DFA-OB). The "Create Fund" Form is located at

P1-19-5-101 or http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx The DFA-OA-Funds Group will review the fund type requested by the agency. The DFA-OA-CAFR Section Manager/Assistant Manager or their designee also must approve the fund type. The DFA-OA-Funds Group will notify the Treasurer of State and the Auditor of State when appropriated funds are established so that both offices may also establish the fund on their books of record.

PLEASE NOTE: Also refer to R1 19-5-104 (Establishment of other funds or accounts).

Financial Reporting Fund Types

The Governmental Accounting Standards Board (GASB), which replaced the National Council on Governmental Accounting (NCGA), prescribes the fund type structure to be used in financial reporting. Funds must be typed as defined in NCGA Statement 1 and GASB Statement 34. The financial reporting fund type should be listed on the "Create Fund" Form, link P-1-19-5-101. The types of financial reporting funds are as follows:

General - To account for all financial resources, except those required to be accounted for in another fund.

PLEASE NOTE: DFA-OA has the final decision regarding the fund type assigned to each fund. Funds that are material to the Comprehensive Annual Financial Report (CAFR) will be classified using the following fund types:

Special Revenue – To account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purpose. The most common example would be the federal grant funds that begin with a letter "F."

Capital Projects – To account for financial resources to be used for the acquisition or construction of major capital facilities. The most common example would be major construction that is financed by bonded indebtedness such as road or real estate and its improvements. Routine type capital asset purchases should not be accounted for in the capital projects fund.

Debt Service – To account for the accumulation of resources for and the payment of general long term debt principal and interest. An example would be a fund of the Treasurer of the State that makes principal and interest payments for a bond issue of the Arkansas Natural Resources Commission.

Permanent Funds – To account for resources that are legally restricted to the extent that only investment earnings and not principal may be used for purposes that support the reporting government’s program, that is for the benefit of the government or its citizenry.

Agency – To account for situations where the government’s role is purely custodial, such as the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations or other governments. An example would be child-support payments collected for custodial parents by DFA, or prisoner funds held by the Department of Correction.

Pension Trust – To report resources that are required to be held in trust for the members and beneficiaries of defined benefit pension plans, defined contributions plans and other post employment benefit plans. An example would be the Arkansas Public Employees Retirement System.

Investment Trust – To account for an investment pool or specific investments that belong to entities outside the government but are held by the government.

Private Purpose Trust – To report any trust arrangement not properly reported in a pension trust fund or an investment trust fund under which principal and income benefit individuals, private organizations or other governments.

Enterprise – To account for any activity for which a fee is charged to external users for goods or services. Also, to account for any activity whose principal revenue sources meet any of the following criteria: 1) Debt backed solely by fees and charges, 2) Legal requirement to recover costs and 3) Policy decision to recover costs. DFA-OA has adopted the policy that only agencies which as a whole meet the criteria will be called enterprise. An example would be a university, the Department of Workforce Services or the Workers Compensation Commission.

Internal Service – To report any activity that provides goods or services to other funds, departments or agencies of the primary government and its component units or to other governments on a cost-reimbursement basis. An example would be the Department of Information Systems.

A list can be generated in AASIS by using Transaction S_KI4_38000039 which will display the Index of Funds. The layout of the report can be changed to display the fund type.

See P2-19-5-101b.

REVENUE DISTRIBUTION

Distribution of General and Special Revenues

Moneys collected that are deposited with the Treasurer of State and are defined as general and special revenue in ACA 19-6-201 and 19-6-301 are credited to the State Apportionment Fund and are deemed to be Gross Revenue. The following distributions are made on the last working day of the month in accordance with ACA 19-5-401 through 19-5-406. The Treasurer of State determines the distributions, and the DFA-OA posts the transactions in AASIS.

1. General Revenues

a. Claims, taxes erroneously paid and returned checks are deducted from the Gross General Revenues to arrive at the "Net General Revenue."

b. Various deductions are made from "Net General Revenue" as specified in the Revenue Stabilization Act to arrive at "General Revenues Available for Distribution."

(1) Certifications that adjust the General Revenues

(2) Pursuant to ACA 19-5-202, the Treasurer of State shall deduct one percent (1%) which is transferred to the Constitutional Officers Fund. An appropriate percentage of not less than two percent (2%) and not to exceed three percent (3%), as determined from time to time by the Chief Fiscal Officer of the State as being the amount required to support the estimated commitments and expenditures of the State Central Services Fund for the current fiscal year, will be transferred to the State Central Services Fund.

c. The "General Revenues Available for Distribution" are allocated to the funds on deposit with the Treasurer of State in accordance with the allocations authorized by 19-5-101 through 19-5-107 after deducting any advances given during the month. Advances may be made on the agency’s estimated monthly allotment of General Revenue when funds are available. The amount advanced shall never exceed 80% of the estimated monthly allotment.

d. Pursuant to ACA 19-5-1004, the balances remaining in certain general revenue funds at the end of a fiscal year will be reclaimed on or before August 15 of the fiscal year next following the fiscal year during which balances accrued.

2. Special Revenues (generally funded back to the specific state agencies; however, certain fees are withheld to fund the State Central Services Fund and the Constitutional Officers Fund as outlined below):

a. Claims, taxes erroneously paid and returned checks are deducted from the Gross Special Revenues to arrive at the "Net Special Revenue."

b. Pursuant to ACA§ 19-5-203, the Treasurer of State shall then deduct the same percentage as determined to be deducted from the net general revenues in ACA§19-5-202 and to be transferred under the same procedures as set forth in ACA§19-5-202 from each net special revenue collected by any of those agencies enumerated in ACA§19-5-205(b) and one-half (1/2) of the percentage deductions as set out in ACA§19-5-202 and transferred in the same proportion to the State Central Services Fund and the Constitutional Officers Fund from each net special revenue collected by any other department, board, agency or commission.

c. The funds to which the special revenues were originally deposited receive the balance of the revenues collected after said deduction.

TRANSFERS

Fund Transfers

The ACA 19-5-101 et seq. (ACA 19-5-106(a)) provides for transfers to be made under certain circumstances. Transfers may be made for one of the following reasons:

1. To correct accounting errors;

2. To make loans to authorized funds, fund accounts, and for repayment of such loans as they become due and payable as authorized by law as outlined in the Temporary Loan Section;

3. To reimburse the Miscellaneous Revolving Fund or successor fund(s) or fund account(s) for the payment of any claims, refunds or any other disbursements authorized by law;

4. For the Chief Fiscal Officer to certify to the State Auditor and State Treasurer the transfer of funds from any fund(s) on deposit in the State Treasury containing operating moneys of any of the following delinquent political entities to the fund that is owed said funds:

a. Any political entity, including any state agency, board, commission, department, institution, state supported community college or college or university of state government that fails, neglects or refuses to make proper and timely settlements of moneys due or fails to submit on a timely basis required reports to the state agency responsible for administering Federal Social Security and state retirement programs for public employees, public school teachers, highway employees or State Police employees.

b. Any political sub-division of the State, including a regional, county, or municipal government that fails, neglects or refuses to make proper and timely settlements of moneys due or fails to submit on a timely basis required reports to the state agency responsible for administering Federal Social Security and state retirement programs for public employees, public school teachers, highway employees or State Police employees.

c. Any school district that fails, neglects or refuses to make proper and timely settlements of moneys due or fails to submit on a timely basis required reports to the state agency responsible for administering Federal Social Security and state retirement programs for public employees or public school teachers.

5. To transfer funds between state agencies and within state agencies in order to eliminate the double accounting of receipts and expenditures which occurs under the method of issuing vouchers;

6. For any other purposes as may be specifically authorized by law.

DFA-OA also permits transfers between each agency’s legal Treasury fund group for the purpose of moving cash to the fund where obligations will be expended.

Fund Transfer Procedures

If it is determined that a proposed transfer qualifies under one or more of the reasons listed above, the following procedure should be followed:

A. If the transfer is from one account in the agency’s legal Treasury fund group to another account in that agency’s same legal fund group, the agency is allowed to post the transfer on a ZT document type. An example of this type of transfer is a transfer from BAA0000 to BAA0100. The nonuser agencies should send an "Intra-agency Transfer" Form located at P2-19-5-101 or http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx .

B. If the transfer is from one legal fund to another legal fund such as from BAA0100 to DBA0000, then the agency, if an AASIS user agency, must park the document and request that DFA-OA-Funds Group Manager post that document. The nonuser agencies should send an "Intra-agency Transfer" Form (transfer within one State agency) or an "Inter-agency Transfer" Form (transfer between two State agencies) located at P3-19-5-101 or http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx to DFA-OA.

1. When an agency parks a document, the transfer form must be e-mailed as support. Do not send duplicates unless it is requested. For instance, do not e-mail a request and then fax or mail the same request.

2. DFA-OA will post the transfer after approving it and will notify the agency upon completion of the transfer with the document number.

3. DFA-OA will notify the agency if the transfer is rejected.

4. Emergencies: A transfer may be requested by telephone but must be followed by a written confirmation that includes the request form and that the information is a follow up on a phone request made by whom and on what date and time.

5. DFA-OA-Funds Group and the agency shall both maintain supporting documentation.

PLEASE NOTE: There are certain fund groups in which the first three letters are the same but more than one agency has a fund account in that group. The agency should not park or post those transfers. Examples of this type of fund groups are the HSC, HUA, MCF and MTA funds. The funding comes from the DFA fund, and DFA must make the transfer after logging it into its tracking spreadsheets. 

Please review P1-19-5-101 & P2-19-5-101 or http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx which outlines the proper procedures for recording certain items as transfers versus an expenditure.

LOANS

Interfund Loans

Generally Accepted Accounting Principles (GAAP) defines interfund loans as a flow of assets such as cash or goods for which repayment is expected within a reasonable amount of time. Loans are properly recorded as increases and decreases in assets and liabilities with no effect on revenue, expense or other financing sources/uses.

Temporary Loans

The ACA 19-5-101 et seq. provides for temporary loans to be made to certain funds from the Budget Stabilization Trust Fund. Generally, those funds that are eligible to receive such loans under certain circumstances are:

(1) Those funds that receive General Revenue as outlined in ACA 19-5-401. Provided that loans may be made to the Institutions of Higher Education for operational purposes only after meeting the requirements of ACA 19-5-501.

(2) The Department of Correction Farm Fund for farm production purposes.

(3) The Department of Correction Industry Fund

(4) The Tax Refund Funds

(5) The various federal accounts of state agencies upon certification of the pending availability of federal funding by the director of the state agency making the request. However, the requests shall be limited to those occasions whereby the continued operations of the state agency programs would be seriously impaired and unnecessary hardships would be created due to either administrative oversight, delays by the federal government in forwarding the moneys or by problems created by the federal fiscal year conversion.

(6) Funds specifically cited in legislative acts.

PLEASE NOTE: State agencies supported solely from special revenues are not eligible to apply for or receive loans from the Budget Stabilization Trust Fund.

Temporary Loan Procedures

If it is determined that the loan requests qualify under one or more of the reasons listed above, the procedure should be as follows:

1. Send a written request via e-mail, fax or letter to the DFA–OA-Funds Group Manager.

2. The loan request should be completed on either the "Loan Request" Form located at P4-19-5-101 or http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx or the "General Revenue Advance Request" Form located at P5-19-5-101 or  

http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx and included with the written communication.

3. If funds are available, DFA-OA will post the loan and notify the agency of the completion with the document number if approved or that the loan was not approved.

4. Emergencies: A loan may be requested by telephone but must be followed by a written communication that includes the request form. The written confirmation should also include the information that this is a follow up on a phone request made by whom and on what date and time.

5. Loan documents are never parked by agencies.

6. DFA-OA and the agency shall both maintain supporting documentation.

R2-19-5-101 Cash Funds Service Charge

ACA §19-5-206 requires certain state agencies whose cash funds, whether appropriated or not and whose annual revenues as reflected in the previous year’s audit exceeds $25,000, shall remit on the first day of each calendar quarter a 1 ½% service charge to the Treasurer of State. Such funds shall be deposited into the State Central Services Fund (HSC0000) held by the Treasurer of State. Requirements of this service charge, the method of computation and agencies included (excluded) are as follows:

State agencies subject to this statutorily required service charge shall include all boards, commissions, departments, agencies, institutions, offices, or officers and any other office or unit of the State of Arkansas created or established pursuant to law or pursuant to any action of the Governor functioning under appropriation of the General Assembly or functioning as a representative of the State of Arkansas without appropriation of the General Assembly.

Excluded from this service charge are the Office of the Commissioner of State Lands, the Department of Parks and Tourism, the Department of Education and any of its divisions, community colleges and branches thereof, universities and branches thereof, technical colleges, technical institutes, post secondary vocational-technical schools, comprehensive lifelong learning centers, funds received from the federal government, funds held in trust, funds of the various State retirement systems and funds received by the Department of Arkansas Heritage from voluntary donations and non-federal grants. The service charge to be remitted on the first day of each calendar quarter shall equal 1 ½ % of the total expenditures of the previous calendar quarter from all cash funds as defined in ACA §19-4-801. These quarterly expenditures are exclusive of any expenditure which paid the previous quarter’s service charge.

In case funds are held outside the State Treasury, remittance shall be in the form of a check payable to the Treasurer of State and coded as an operating expense (commitment item 502:00:02) (general ledger account 5080005000). The Treasurer of State shall deposit each check as a non-revenue receipt in the State Central Services Fund to provide financial support for certain required administrative functions of State government.

Pursuant to §19-4-801 and §19-5-206 cash funds deposited in the State Treasury as cash in treasury funds ("N" funds) are not required to pay the 1 ½% service charge. 

19-5-104. Establishment of other funds or accounts.

The Chief Fiscal Officer of the State may only establish such other funds or fund accounts on the books and on the books of the Treasurer of State and Auditor of State for making payments that are composed of funds derived from more than one (1) fund or fund account as established by this chapter. The Chief Fiscal Officer of the State may also establish paying accounts on the books of the Treasurer of State and Auditor of State for making payments that are composed of funds derived from more than one (1) source. However, the Chief Fiscal Officer of the State may establish on the books accounts within funds or fund accounts carried on the books of the Treasurer of State and Auditor of State that he or she deems are necessary for the accounting system of his or her office. Nothing in this section shall prevent the establishment of new funds composed solely of federal grants, aids, reimbursements, or any other moneys received from the United States Government that are to be used for specific purposes.

History. Acts 1973, No. 750, § 9; 1979, No. 1013, § 8; 1979, No. 1077, § 2; A.S.A. 1947, § 13-535.

R1 19-5-104 Funds Group

The Department of Finance and Administration-Office of Accounting-Funds Group (DFA-OA-FG) assists agencies in establishing, managing and maintaining "Treasury Funds." A "Treasury Fund" is moneys on deposit in the State Treasurer’s Cash Accounts that is available to be expended in the manner detailed in the related appropriation authorized by the General Assembly. Payments made from the "Treasury Fund" are always by state warrant issued by the Auditor of State at the direction of the agency that owns the "Treasury Fund." The primary processes involved in funds management are detailed below:

To Establish a New Treasury Fund

Treasury Funds are established in two manners: 1) Authorization by new legislation from the Arkansas General Assembly creates a new legal fund. Currently, these funds are designated by a seven digit alpha numeric code. The first three digits are alpha and remaining four digits are always four zeros to designate the legal or "high level" fund. The State’s Financial Management System has the capability of up to ten characters/numbers for fund structure. The DFA-OA-Fund Group Manager may initiate the establishment of all new legal funds. 2) The agency Fiscal Officer may request that a new fund be created as a "sub fund" of a legal fund which is owned by the agency. Generally, this request is a result of specific business processes of the agency itself and not a legal requirement.

In both instances the completion of the form must be the first step in the process ("Create Treasury Fund Request" Form) to set up a new fund for receipting and expensing. The original form is submitted to the agency’s DFA-Office of Budget Analyst (OB) for review. The Budget Analyst will review the form for accuracy, initial the form and submit it to the CAFR Liaison assigned to that agency for fund type determination. After the fund type is determined, the DFA Accounting Manager and the Assistant Administrator/CAFR will  approve and initial the form. The form is then returned to the Assistant Administrator/Appropriation Manager for review and approval. The Assistant Administrator/Appropriation Manager routes the form to the DFA-OA-Funds Group staff to be logged and entered into AASIS upon verification that all information is complete and correct. The Funds Group Manager assigns an alpha numeric code to the fund (if a new legal fund) as necessary to comply with the general naming convention used for all funds held by state agencies. A copy of the final form with all signatures is returned to the Budget Analysts who in turn will notify the agency.

After DFA-OA-Funds Group enters the new fund information into AASIS, the information contained on the request form is entered into a template and e-mailed to the Treasurer of State for entry into their system. The beginning date for usage is the date following entry into the AASIS system. The end date is always the fiscal year end date. The information contained on the funds request form is entered into the "Funds Control Log."

A copy of the e-mail is sent to the Auditor of State, Attorney General’s Office, DFA Comprehensive Annual Financial Report Section Manager (CAFR) and DFA-OA Funds/Appropriations Manager. A copy is filed in the DFA-OA-Funds Group files. The original printed e-mail letter is signed and faxed to the Auditor of State.

When the Treasurer of State has completed entry into their system, a return e-mail is made to the Funds Group Manager, and the DFA-OA-Funds Group "funds" log is updated to reflect the date of the "establishment" or "fund created" date.

Discontinued Funds

Funds that are discontinued as a result of legislation or due to the lack of use by the agency will be assigned a special authorization group designation of DOA1 or DOA2. Funds with a DOA1 authorization group are those funds discontinued in the previous fiscal year while funds with a DOA2 authorization group have been discontinued for 2 years and will not be authorized for another fiscal year. Only DFA personnel will be allowed to post entries such as outlawed warrants or prior year adjustments to funds in these authorization groups. Agency personnel should work closely with their DFA-OA-CAFR Section liaison to ensure that all fixed assets are moved to new/existing funds to avoid the need for additional entries involving depreciation.

Establishing New General Ledger Codes

Additions to the existing general ledger chart of accounts are a result of either new legislation from the General Assembly (request will be by DFA-OA) or a request from an agency, DFA-OA, DFA-Budget Office or the AASIS Service Center staff. The form to request a new general ledger code is completed and signed by the originating party and transmitted by printed or electronic copy to the DFA-OA-Reconciliation Manager. The appropriate name, legal authority and AASIS coding structure for the new general ledger code is added onto the request form by the DFA-OA-Reconciliation Manager if the request is for an expenditure or balance sheet code. If the request is for a revenue code, the appropriate name, legal authority and AASIS coding structure is added to the request form by the Funds Group Manager. After establishing the code in AASIS, the DFA-OA-Reconciliation Manager notifies the Funds Group Manager by delivery of an initialed copy of the request form. The Funds Group Manager enters the information onto an e-mail letter template that is sent to the Treasurer of State. The Treasurer of State e-mails a verification notice to the Funds Group Manager that the general ledger account code has been added to the Treasurer of State’s system.

Deposits to Treasury Detail

The reporting agencies, user agencies or Department of Finance and Administration-Office of Accounting-Service Bureau (in the case of agencies that have their accounting process performed by DFA) enter their receipts of income into cash journals for posting, which in turn creates the deposit slip for the agency to submit to the Treasurer of State with the corresponding checks, cash or warrants for non-Electronic Fund transfer deposits. Entries to record receipts of income or federal fund transfers that are received through the Electronic Fund transfer (EFT) process also create cash journals and the corresponding deposit slips; however, additional identifying information about the draw, such as the transfer document number from the Federal Reserve System, must be on the face of the deposit slip. The deposit slips are to be made on the day of the federal fund transfer request and presented to the Treasurer of State. These deposit slips are then matched to the incoming federal fund transfers and recorded into the Treasurer of State’s records.

The agency submits the original deposit slip and three copies to the Treasurer of State. The Treasurer’s staff records the Treasury receipt number on the third copy of the deposit slip which is given to the agency for filing in their records. The remaining copies are maintained in the Treasurer of State’s records.

The Treasurer of State’s posting of deposits and transfers ends at 2:00 p.m. each weekday, except for the last workday of the month which ends at 12 noon. Deposits delivered to the Treasurer’s Office after those times will be posted the following business day. Processing of the receipts and disbursements into the proper funds follows. When all processing and daily reconciliation is complete, the Treasurer of State files the original deposit receipt, provides one copy to the Auditor of State and the final copy to the DFA- OA-FG. The DFA- OA-FG files the receipt copies in "daily batches."

The DFA-OA-FUNDS GROUP files are used to provide an agency a copy of misplaced receipts. If the DFA-OA-Funds Group Manager issues a revenue receipt correction, the Treasury receipt number will be obtained from these files and entered on the receipt correction sent to the Treasurer of State.

Reversal of Cash Journal Entries

Cash Journal Entries can be reversed as long as the deposit has not been processed by the Treasury. If errors are discovered after the Treasury has processed the deposit, then the agency must initiate a Revenue Receipt Correction with DFA-OA-Funds Group to make corrections.  

Agency personnel can reduce or even eliminate the need for Cash Journal Entry reversals or Revenue Receipt Corrections by having procedures in place to verify the amounts and the coding being entered into the cash journal prior to saving and posting the entries. Cash/Checks not totaling to the deposit slip is one of the most common mistakes made and the easiest to avoid. Supervisory staff should verify fund and general ledger code information before posting the entries.

If errors occur and are caught before the deposit is processed by the Treasury, the following steps must be completed to reverse the lines keyed in error:

 If the receipt is a customer payment on an accounts receivable (A/R), then the A/R entry must be reversed first;

 Agency personnel will need to contact the DFA-OA-Funds Group Manager by email to request reversal of the lines keyed in error;

 Include a screenshot of the "ayment"tab with the lines highlighted that need to be reversed. This can be done by using the "rint Screen"key on the keyboard next to F12. Paste the screenshot into a word document or directly into the email body. If there are several lines to be corrected, make sure a screenshot is provided for each page to ensure all lines are displayed;

 Include a screenshot of the "eceipts"tab with the lines highlighted that need to be reversed. Use the steps above to paste this information into a word document or the email body;

 Include either in the email or the word document the reason for the reversal, the cash journal number, the date of entry and the description of the fund code(s), amounts and other pertinent information about the lines to be reversed;

 Be sure to include the following contact information: Business Area name and number, your name, phone number and email address if different from the person sending the information;

 Send the email request to the DFA-OA-Funds Group Manager or call the DFA – Office of Accounting at (501) 682-1675 for email address information.

Revenue Receipt Corrections

Revenue receipt corrections are initiated by agency personnel to correct an incorrect characterization of the revenue or transfer of moneys receipted by the agency and already processed by the Treasurer of State. This is accomplished by completing the "evenue Receipt Correction"Form requesting the correction be recorded it in both AASIS and the Treasurer of State’s records. The electronic template is provided on the DFA web site http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx The revenue receipt corrections requested by an agency are sent by e-mail to DFA-OA-Funds Group and accompanied by the electronic template with all pertinent information. The detailed instructions appear on the Excel template.

The Funds Group Manager reviews the information provided, and any missing information is requested from the agency person initiating the request. When completed, the deposit record is researched thoroughly to ensure the correcting entry will be accurate. DFA-OA- FG staff will park and post the correction into AASIS after verification of the information provided by agency personnel on the Revenue Receipt Correction Form.

Revenue receipt corrections that involve either general or special revenue or those in which cash is taken from one fund and deposited into another fund require correction in the Treasurer of State’s records. This is accomplished by the DFA-OA-Funds Group Manager forwarding a copy of the revenue receipt correction to the Treasurer of State’s office to be posted.

The Treasurer of State and the Auditor of State choose to process certain documents manually rather than accept interfaces with updated records to process within their systems. The actual documents are printed out and the Funds Group Manager enters those document numbers in a document log. These documents, the list and the log are faxed to the Auditor of State and Treasurer of State for manual entry.

After the Auditor of State and Treasurer of State have entered them into their systems, they fax the log with the entry date on it to the Funds Group Manager. The document log is updated in the DFA- OA-FG computer files maintained by the Funds Group staff. The printed lists, logs and fax coversheets are filed in the Funds Group.

PLEASE NOTE: Revenue Receipt Correction forms for transactions are located at: http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx  

PLEASE NOTE: The Treasurer of State investment policy may be viewed as appendix

P1- 19-5-104.

PLEASE NOTE: Other forms applicable to the management of funds in the State Treasury are located on the DFA-OA web site at: http://www.dfa.arkansas.gov/offices/accounting/Pages/Forms.aspx.

Returned Checks

Refer to R3-19-4-2004 "eturned Checks"for discussion of returned checks.