HB1311
To Direct The Legislative Auditor To Develop A Comprehensive Financial Management System For Appropriated Funds Of Cities Of The Second Class And Incorporated Towns.
AI-Generated Summary
This bill proposes the creation of a "uniform chart of accounts" for cities of the second class and incorporated towns in Arkansas. The Legislative Auditor is directed to develop this comprehensive financial management system. The system's purpose is to provide essential financial information to mayors, councils, and other relevant officials and departments. It will establish a uniform account coding structure for revenues, expenditures, and balances. This structure aims to ensure current information is always available regarding the financial condition of these municipalities. The system will also include provisions for budgeting and fund classification. It will detail the receipt, appropriation, and disbursement of funds based on the object and purpose of expenditures. This detailed breakdown will facilitate the analysis of operations within all municipal offices and departments. The system is intended to provide itemized expenditure data comparable to council appropriations. The Legislative Auditor will have 36 months to develop and implement a phasing-in process for this new system.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be the cities of the second class and incorporated towns within Arkansas. Specifically, their mayors, city councils, and other administrative officers and departments would benefit from a more standardized and detailed system for managing their finances. The Legislative Auditor's office would be responsible for developing and overseeing the system. Citizens of these municipalities could also indirectly benefit from improved financial transparency and accountability.
Who Might Suffer?
The entities most directly and negatively impacted by this bill would be the cities of the second class and incorporated towns themselves, due to the potential costs and administrative burden associated with implementing a new financial management system. Local government officials and staff within these municipalities would need to adapt to new procedures and reporting requirements. The Legislative Auditor's office would also experience an increased workload in developing and overseeing this new system.