| 3 | 2 | | *MBM029* 01/29/2025 1:43:30 PM MBM029 |
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| 4 | 3 | | State of Arkansas 1 |
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| 5 | 4 | | 95th General Assembly A Bill 2 |
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| 6 | 5 | | Regular Session, 2025 HOUSE BILL 1311 3 |
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| 7 | 6 | | 4 |
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| 8 | 7 | | By: Representative Lundstrum 5 |
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| 9 | 8 | | By: Senator J. Petty 6 |
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| 10 | 9 | | 7 |
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| 11 | 10 | | For An Act To Be Entitled 8 |
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| 12 | 11 | | AN ACT TO DIRECT THE LEGISLATIVE AUDITOR TO DEVELOP A 9 |
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| 13 | 12 | | COMPREHENSIVE FINANCIAL MANAGEMENT SYSTEM FOR 10 |
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| 14 | 13 | | APPROPRIATED FUNDS OF CITIES OF THE SECOND CLASS AND 11 |
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| 15 | 14 | | INCORPORATED TOWNS AND TO PROVIDE FOR THE 12 |
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| 16 | 15 | | IMPLEMENTATION OF THE SYSTEM IN THE VARIOUS CITIES 13 |
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| 17 | 16 | | AND TOWNS; AND FOR OTHER PURPOSES. 14 |
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| 18 | 17 | | 15 |
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| 19 | 18 | | 16 |
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| 20 | 19 | | Subtitle 17 |
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| 21 | 20 | | TO DIRECT THE LEGISLATIVE AUDITOR TO 18 |
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| 22 | 21 | | DEVELOP A COMPREHENSIVE FINANCIAL 19 |
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| 23 | 22 | | MANAGEMENT SYSTEM FOR APPROPRIATED FUNDS 20 |
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| 24 | 23 | | OF CITIES OF THE SECOND CLASS AND 21 |
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| 25 | 24 | | INCORPORATED TOWNS. 22 |
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| 26 | 25 | | 23 |
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| 27 | 26 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 |
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| 28 | 27 | | 25 |
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| 29 | 28 | | SECTION 1. Arkansas Code Title 14, Chapter 59, Subchapter 1, is 26 |
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| 30 | 29 | | amended to add an additional section to read as follows: 27 |
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| 31 | 30 | | 14-59-120. Uniform chart of accounts. 28 |
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| 32 | 31 | | (a)(1) The Legislative Auditor shall develop a comprehensive financial 29 |
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| 33 | 32 | | management system, to be known as the "uniform chart of accounts", for 30 |
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| 34 | 33 | | appropriated funds of cities of the second class and incorporated towns. 31 |
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| 35 | 34 | | (2) The purpose of the uniform chart of accounts is to provide 32 |
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| 36 | 35 | | necessary financial information for the mayors, councils, and other 33 |
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| 37 | 36 | | interested officers and departments of cities of the second class and 34 |
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| 38 | 37 | | incorporated towns. 35 |
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| 39 | 38 | | (b) In developing the uniform of chart of accounts under this section, 36 HB1311 |
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| 40 | 39 | | |
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| 41 | 40 | | 2 01/29/2025 1:43:30 PM MBM029 |
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| 42 | 41 | | the Legislative Auditor shall: 1 |
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| 43 | 42 | | (1) Provide for a uniform account coding structure over 2 |
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| 44 | 43 | | revenues, expenditures, and balances to assure that current information will 3 |
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| 45 | 44 | | always be available concerning the financial condition of cities of the 4 |
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| 46 | 45 | | second class and incorporated towns and their various offices and 5 |
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| 47 | 46 | | departments; and 6 |
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| 48 | 47 | | (2) Include without limitation budgeting and fund classification 7 |
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| 49 | 48 | | aspects designed to classify the receipt of funds and the appropriations and 8 |
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| 50 | 49 | | disbursements of funds in accordance with the object and purpose of the 9 |
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| 51 | 50 | | expenditures in sufficient detail to: 10 |
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| 52 | 51 | | (A) Be suitable for an analysis of the operations of all 11 |
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| 53 | 52 | | offices and departments of cities of the second class and incorporated towns; 12 |
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| 54 | 53 | | and 13 |
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| 55 | 54 | | (B) Provide a breakdown and itemization of all 14 |
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| 56 | 55 | | expenditures compatible with and comparable to the appropriations of councils 15 |
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| 57 | 56 | | of cities of the second class and incorporated towns. 16 |
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| 58 | 57 | | 17 |
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| 59 | 58 | | SECTION 2. TEMPORARY LANGUAGE. DO NOT CODIFY. No later than thirty -18 |
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| 60 | 59 | | six (36) months following the effective date of this act, the Legislative 19 |
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| 61 | 60 | | Auditor shall develop and complete a process for phasing in the use of the 20 |
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| 62 | 61 | | uniform chart of accounts under ยง 14 -59-120. 21 |
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| 63 | 62 | | 22 |
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| 64 | 63 | | 23 |
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