§ 14-237-101. Title

This chapter shall be known and cited as the “Arkansas Municipal Water and Sewer Department Accounting Law”.

§ 14-237-102. Applicability

This chapter shall apply to all municipal water and sewer departments operating in this state under authority granted by state law for the establishment of municipal water and sewer departments.

§ 14-237-103. Exemption of accounting systems exceeding minimum

(a) In the event any department feels its system of bookkeeping equals or exceeds the basic system prescribed by this chapter, the department may request a review by the Legislative Joint Auditing Committee. (b) Upon the committee’s concurrence with the department’s position, the committee may issue a certificate to the department stating that the department’s […]

§ 14-237-104. Bank accounts

All municipal water and sewer departments of this state shall maintain all funds in depositories approved for that purpose by law. The accounts shall be maintained in the name of the municipal water and sewer department.

§ 14-237-105. Prenumbered receipts or mechanical receipting devices

(a) (1) All funds received are to be formally receipted at the time of collection or the earliest opportunity by the use of prenumbered receipts or mechanical receipting devices. (2) However, the use of prenumbered receipts shall not be required for receipting revenues derived from the sale of water to individual consumers where the income […]

§ 14-237-106. Prenumbered checks — Electronic funds transfers

(a) All disbursements of water and sewer department funds, except those described in this section and as noted in § 14-237-107, are to be made by prenumbered checks drawn upon the bank account of that department. (b) An electronic funds transfer may be used for payment of debts provided that: (1) The person responsible for […]

§ 14-237-107. Petty cash funds

(a) Municipal water and sewer departments are permitted to establish petty cash funds, so long as the funds are maintained as set forth in this section. The establishment of a petty cash fund must be approved by the department’s governing body. (b) (1) In establishing a petty cash fund, a check is to be drawn […]

§ 14-237-108. Fixed asset records

(a) (1) Each water and sewer department’s governing body shall adopt a policy defining fixed assets. (2) At a minimum, the policy shall set forth the dollar amount and useful life necessary to qualify as a fixed asset. (b) (1) Each department shall establish by major category and maintain, as a minimum, a listing of […]

§ 14-237-109. Cash receipts journal

(a) Water and sewer departments shall establish a cash receipts journal or an electronic receipts listing, which shall indicate the: (1) Receipt number; (2) Date of the receipt; (3) Payor; (4) Amount of the receipt; and (5) Classification or general ledger account. (b) Classifications of the receipts shall include the major sources of revenue. (c) […]

§ 14-237-110. Cash disbursements journal

(a) Water and sewer departments shall establish a cash disbursements journal or electronic check register which shall indicate the date, payee, check number or transaction number, amount of each check written or transaction, and classification or general ledger account. (b) The classifications of expenditures shall include the major type of expenditures by department, such as: […]

§ 14-237-111. Reconciliation of bank accounts

(a) (1) All water and sewer departments shall reconcile on a monthly basis their cash receipts and disbursements journals to the amount on deposit in banks. (2) This reconciliation shall be approved by an official or employee, other than the person preparing the reconciliation, as designated by the governing body of the department. (3) The […]

§ 14-237-112. Maintenance and destruction of accounting records

(a) Accounting records can basically be divided into three (3) groups: (1) (A) Support Documents. Support documents consist primarily of the following items: (i) Canceled checks; (ii) Invoices; (iii) Bank statements; (iv) Receipts; (v) Deposit slips; (vi) Bank reconciliations; (vii) Check book register or listing; (viii) Receipts listing; (ix) Monthly financial reports; (x) Payroll records; […]

§ 14-237-113. Annual publication of financial statements

(a) (1) The governing body of each municipal water or sewer department shall cause to be published annually a financial statement of the department, including receipts and expenditures for the period and a statement of the indebtedness and financial condition of the department. The financial statement shall be published one (1) time in a newspaper […]