§ 14-59-101. Title
This chapter shall be known and cited as the “Arkansas Municipal Accounting Law”.
§ 14-59-102. Applicability
This chapter shall apply to all funds under the budgetary control of the council or board of directors of the various municipalities of this state, except water and sewer departments.
§ 14-59-103. Exemption for other systems
(a) In the event any municipality feels its system of bookkeeping is such that it equals or exceeds the basic system prescribed by this chapter, the municipality may request a review by the Legislative Joint Auditing Committee. (b) Upon the committee’s concurrence with these facts, it may issue a certificate to the municipality stating that […]
§ 14-59-104. Bank accounts
(a) All municipalities of this state receiving state aid in the form of either turnback of general revenues or highways revenues shall maintain all funds in depositories approved for such purposes by law. (b) The municipalities shall maintain separate bank accounts for general funds and street funds. (c) The accounts shall be maintained in the […]
§ 14-59-105. Prenumbered checks — Electronic funds transfers
(a) All disbursements of municipal funds, except those described in this section and as noted in § 14-59-106, petty cash funds, are to be made by prenumbered checks drawn upon the bank account of that municipality. (b) The checks shall be of the form normally provided by commercial banking institutions and shall contain as a […]
§ 14-59-106. Petty cash funds
(a) Municipalities are permitted to establish petty cash funds, so long as the funds are maintained as set forth in this section. (b) (1) The establishment of such a fund must be approved by the city council. (2) (A) In establishing such a fund, a check is to be drawn upon the general fund of […]
§ 14-59-107. Fixed asset records
(a) The governing body shall adopt a policy defining fixed assets. At a minimum, the policy shall set forth the dollar amount and useful life necessary to qualify as a fixed asset. (b) (1) All municipalities shall establish by major category and maintain, as a minimum, a listing of all fixed assets owned by the […]
§ 14-59-108. Reconciliation of bank accounts
(a) (1) On a monthly basis, all municipalities shall reconcile their cash receipts and disbursements journals to the amount on deposit in banks. (2) The reconciliation under subdivision (a)(1) of this section shall be approved by a municipal official or employee, other than the person preparing the reconciliation, as designated by the chief executive officer […]
§ 14-59-109. Prenumbered receipts
(a) 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. (b) (1) In the use of prenumbered receipts, the following minimum standards shall be met: (A) If manual receipts are used, receipts are to be prenumbered by […]
§ 14-59-110. Cash receipts journals
(a) (1) Municipalities shall establish a cash receipts journal or an electronic receipts listing that shall indicate: (A) The receipt number; (B) The date of the receipt; (C) The payor; (D) The amount of the receipt; and (E) Classification or general ledger account. (2) The classification of the receipts shall include the major sources of […]
§ 14-59-111. Cash disbursements journals
(a) (1) Municipalities shall establish a cash disbursements journal or electronic check register that shall indicate the date, payee, check number or transaction number, amount of each check written or transaction, and classification or general ledger account. (2) The classifications of expenditures shall include the major type of expenditures by department, such as: (A) Personal […]
§ 14-59-114. Maintenance and destruction of accounting records
(a) Accounting records can basically be divided into the following three (3) groups: (1) (A) Support Documents. Support documents consist primarily of the following items: (i) Cancelled 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) […]
§ 14-59-115. Duties of municipal treasurer
(a) Each municipal treasurer of this state or the designated representative that has been approved by the governing body shall submit a monthly financial report to the council or board of directors. (b) (1) Municipal treasurers shall maintain the accounting records prescribed in this chapter. (2) (A) (i) If the municipal treasurer does not comply […]
§ 14-59-116. Annual publication of financial statement
(a) (1) The governing body of each municipality shall publish annually a financial statement of the municipality, including receipts and expenditures for the period and a statement of the indebtedness and financial condition of the municipality. The financial statement shall be published one (1) time in a newspaper published in the municipality. (2) This financial […]
§ 14-59-117. Withholding of turnback for noncompliance
(a) (1) If Arkansas Legislative Audit determines that a municipal treasurer is not substantially complying with this chapter, Arkansas Legislative Audit shall report the findings to the Legislative Joint Auditing Committee. (2) (A) If a public official or a private accountant determines that a municipal treasurer is not substantially complying with this chapter, the official […]
§ 14-59-118. Penalty
(a) Any municipal treasurer who refuses or neglects to maintain the books and records provided in this chapter shall be deemed guilty of malfeasance. (b) Upon conviction in circuit court, the treasurer shall be fined in any sum not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000) and shall be […]
§ 14-59-119. Debit card and credit card payments
(a) A municipality may accept a legal payment and any associated costs through a debit card or credit card in accordance with applicable state and federal law. (b) (1) A municipality may enter into a contract with a credit card or debit card company and pay any fee normally charged by the credit card or […]