Stricken language would be deleted from and underlined language would be added to present law.
Act 111 of the Regular Session
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1311 3
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By: Representative Lundstrum 5
By: Senator J. Petty 6
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For An Act To Be Entitled 8
AN ACT TO DIRECT THE LEGISLATIVE AUDITOR TO DEVELOP A 9
COMPREHENSIVE FINANCIAL MANAGEMENT SYSTEM FOR 10
APPROPRIATED FUNDS OF CITIES OF THE SECOND CLASS AND 11
INCORPORATED TOWNS AND TO PROVIDE FOR THE 12
IMPLEMENTATION OF THE SYSTEM IN THE VARIOUS CITIES 13
AND TOWNS; AND FOR OTHER PURPOSES. 14
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Subtitle 17
TO DIRECT THE LEGISLATIVE AUDITOR TO 18
DEVELOP A COMPREHENSIVE FINANCIAL 19
MANAGEMENT SYSTEM FOR APPROPRIATED FUNDS 20
OF CITIES OF THE SECOND CLASS AND 21
INCORPORATED TOWNS. 22
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24
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SECTION 1. Arkansas Code Title 14, Chapter 59, Subchapter 1, is 26
amended to add an additional section to read as follows: 27
14-59-120. Uniform chart of accounts. 28
(a)(1) The Legislative Auditor shall develop a comprehensive financial 29
management system, to be known as the "uniform chart of accounts", for 30
appropriated funds of cities of the second class and incorporated towns. 31
(2) The purpose of the uniform chart of accounts is to provide 32
necessary financial information for the mayors, councils, and other 33
interested officers and departments of cities of the second class and 34
incorporated towns. 35
(b) In developing the uniform of chart of accounts under this section, 36 HB1311
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the Legislative Auditor shall: 1
(1) Provide for a uniform account coding structure over 2
revenues, expenditures, and balances to assure that current information will 3
always be available concerning the financial condition of cities of the 4
second class and incorporated towns and their various offices and 5
departments; and 6
(2) Include without limitation budgeting and fund classification 7
aspects designed to classify the receipt of funds and the appropriations and 8
disbursements of funds in accordance with the object and purpose of the 9
expenditures in sufficient detail to: 10
(A) Be suitable for an analysis of the operations of all 11
offices and departments of cities of the second class and incorporated towns; 12
and 13
(B) Provide a breakdown and itemization of all 14
expenditures compatible with and comparable to the appropriations of councils 15
of cities of the second class and incorporated towns. 16
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SECTION 2. TEMPORARY LANGUAGE. DO NOT CODIFY. No later than thirty -18
six (36) months following the effective date of this act, the Legislative 19
Auditor shall develop and complete a process for phasing in the use of the 20
uniform chart of accounts under ยง 14 -59-120. 21
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APPROVED: 2/18/25 24
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