[PDF] COUNTY FINANCIAL MANAGEMENT SYSTEM MANUAL

Download COUNTY FINANCIAL MANAGEMENT SYSTEM MANUAL...

COUNTY FINANCIAL MANAGEMENT SYSTEM MANUAL

JANUARY 1, 2011 (Revised August 1, 2013)

PREFACE

Ark. Code Ann. § 14-21-101(a) states: (a) (1) In order to provide necessary financial information for the county judge, the members and committees of the county quorum court, and other interested officers and departments of the county, the Legislative Auditor is authorized and directed to develop a comprehensive financial management system for appropriate funds of the various counties in the State of Arkansas. (2) This financial management system shall provide for adequate controls over revenues, expenditures, and balances to assure that current information will always be available concerning the financial condition of the county and its various offices and departments. (3) The system shall include a budgeting and accounting system designed to classify the receipt of and the appropriations and disbursem*nts of county funds in accordance with the object and purpose of the expenditures in such detail as will be suitable for an analysis of the operations of all county offices and departments and which will provide a breakdown and itemization of all expenditures compatible with and comparable to the appropriations of the quorum court. This law was enacted in 1981, with the financial management system to be implemented by the counties on or before January 1, 1983. The accompanying manual is a revision to the original financial management system. We trust that the revised manual will provide meaningful and constructive assistance and guidance to those county officials and employees who are entrusted with implementing the system. The revised financial management system should be implemented on or before January 1, 2014. The Division of Legislative Audit expresses its appreciation to the Association of Arkansas Counties and those officials and employees who participated in the revision of this manual. DIVISION OF LEGISLATIVE AUDIT

Roger A. Norman, JD, CPA, CFE, CFF Legislative Auditor Little Rock, Arkansas January 1, 2011

TABLE OF CONTENTS

PAGE INTRODUCTION

ENTITY/FUND CODES – ACCOUNTING

OFFICE/DEPARTMENTAL CODES – ACCOUNTING

COUNTY REVENUE CODES – ACCOUNTING

COUNTY EXPENDITURE CODES – ACCOUNTING

DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS – REVENUES

DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS – EXPENDITURES

FINANCIAL REPORTING

OTHER GENERAL INFORMATION

INTRODUCTION The County Financial Management System Manual primarily consists of eight major sections: 1. 2. 3. 4. 5. 6. 7. 8.

ENTITY/FUND CODES – ACCOUNTING OFFICE/DEPARTMENTAL CODES – ACCOUNTING COUNTY REVENUE CODES – ACCOUNTING COUNTY EXPENDITURE CODES – ACCOUNTING DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS – REVENUES DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS – EXPENDITURES FINANCIAL REPORTING OTHER GENERAL INFORMATION

This manual addresses each of these sections in considerable detail and should provide a guide for implementing and maintaining the system for each individual county. The financial management system outlined in this manual adopts a very broad, comprehensive approach to the budgeting and accounting functions for county revenues and expenditures. Generally speaking, the major portion of the manual as it relates to county revenues is more applicable to the County Treasurer’s office, while, from a county expenditures standpoint, the County Clerk’s office is most affected. However, all county officials will be affected by the system to the extent that they become involved in the budgetary process and in the coding of expenditures associated with the operations of their respective offices. The County Judge and Quorum Court will also be intimately involved in the system, particularly in the approval of expenditures and in the various phases of the budgetary process. This financial management system provides a systematic approach to the financial management activities of the various counties in the State of Arkansas that should contribute materially to more effective and efficient management and administration of county governments in Arkansas. Another benefit is the ultimate standardization of county revenue and expenditure data on a statewide basis through the utilization of uniform revenue and expenditure codes as illustrated in this manual. The financial management system developed in this manual utilizes several coding schemes that numerically reveal certain information relative to entity/fund, office/department, specific accounts for revenues and expenditures, and other necessary components of the system. The use of specific and preassigned numbers in a coding system saves valuable bookkeeping time and space and adds precision and accuracy to record keeping.

Page | 1

ENTITY/FUND CODES – ACCOUNTING To specifically identify the various funds for which the County Treasurer maintains records in the Treasurer’s ledger and to provide the County Clerk with a means to specifically identify the County operating funds against which county warrants (or check/warrants) are issued, the accompanying Entity/Fund Codes Chart is provided. This Entity/Fund Codes Chart will primarily be utilized by the County Treasurer in conjunction with the coding of revenues received and disbursem*nts made. The County Clerk will primarily be interested in the Entity/Fund Codes Chart from the standpoint of coding expenditures that are entered in the County Court Claims Docket/Warrant and Transfer Register. The Entity/Fund code is a four-digit number, with the first digit indicating the group in which the fund belongs: General Funds, Road Funds, Special Revenue Funds, Capital Projects Funds, Debt Service Funds, Agency Funds, Enterprise Funds, or Trust Funds. A brief description of each group follows. 1. General Funds – The primary operating funds used to account for and report all financial resources not accounted for and reported in another fund. 2. Road Funds – Funds used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for maintaining and constructing county roads. 3. Special Revenue Funds – Funds used to account for and report the proceeds of specific revenue sources that are restricted or committed to expenditures for specific purposes other than debt service or capital projects. These funds may be restricted or committed by federal law, state law, county ordinance, or grant charter. These funds must have at least one restricted or committed revenue source that makes up a significant portion of the revenue. (See Fund Balance Designations below for a definition of restricted or committed funds) 4. Capital Projects Funds – Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditures for capital outlays, including the acquisition or construction of capital facilities and other capital assets. 5. Debt Service Funds – Funds used to account for and report financial resources that are restricted, committed, or assigned to expenditures for principal and interest. 6. Agency Funds – Funds used to account for assets held by the entity as an agent for individuals, private organizations, other governmental units, and other funds. 7. Enterprise Funds – Funds used to report activity that is financed with debt secured solely by a pledge of the net revenues from fees and charges of the activity, activity that is legally required to recover its costs through fees or charges, or activity for which the government’s policy is to establish fees or charges designed to recover the cost of providing services. 8. Trust Funds – Funds used to account for assets held by the entity in a trustee capacity for individuals, private organizations, or other governments. County funds may also be held in a legal trust capacity. These funds would be identified as expendable trust or nonexpendable trust (permanent funds). Fund Balance Designations: 1. Nonspendable – Legally or contractually required to be maintained intact, such as corpus (principal) of a permanent fund. 2. Restricted – Can only be spent for specific purpose. Must be restricted by constitution or external resource providers or through enabling legislation. Must be restricted by a higher level of government than the local level. Examples would be funds that are restricted by federal law, state law, or grant charter. Page | 2

3. Committed – Can only be spent for specific purpose. Must be restricted by the local government’s highest level of decision-making authority (Quorum Court ordinance). 4. Assigned – Intended to be used for a specific purpose but do not meet the requirements for the Restricted or Committed Fund Balances. Balance remaining in any fund, other than the General Fund, that is not one of the above classifications would be included in the Assigned Fund Balance classification. Funds transferred from the General Fund to a Special Revenue Fund where no ordinance legally restricts the funds would be classified as Assigned Fund Balance. 5. Unassigned – The remaining fund balance that is not contained in one of the above classifications. It is generally reported in the General Fund and is used in any other fund only to report a deficit balance that resulted from overspending for a specific purpose. For example, if the County Treasurer is coding a transaction representing a cash receipt of general revenue turnback into the County General Fund, the transaction is coded “1000-7001,” with the “1000” being the Entity/Fund Code for the County General Fund and the “7001” being the revenue code for the general revenue turnback. To continue the example, if the County Clerk is coding an expenditure to be paid from the County General Fund for general office supplies in the County Clerk’s office, the transaction is coded “1000-0101-2001,” with the “1000” being the Entity/Fund Code for the County General Fund, the “0101” being the Office/Departmental Code for the County Clerk, and the “2001” being the account code for general office supplies.

Page | 3

CHART General Funds General Fund General Reserve Fund Employee Insurance Fund Investment Fund Reserved For Future Use Unique – General Funds Grants – General Funds

1000 1001 1002 1003 1004-1799 1800-1899 1900-1999

Road Funds Road Fund Road Investment Fund Road Reserve Depreciation Fund Reserved For Future Use Unique – Road Funds Grants – Road Funds

2000 2001 2002 2003-2799 2800-2899 2900-2999

Special Revenue Funds Treasurer’s Automation Fund Ark. Code Ann. § 21-6-302 established fund to receive up to 10% of Treasurer’s gross commissions to operate the Treasurer’s office and to purchase, maintain, and operate an automated record keeping system. Collector’s Automation Fund Ark. Code Ann. § 21-6-305 established fund to receive up to 10% of Collector’s gross commissions to operate the Collector’s office and to purchase, maintain, and operate an automated record keeping system. Circuit Court Automation Fund Ark. Code Ann. § 16-13-704 established fund to receive Circuit Court installment fees of ½ of $5 per month on each person to be used for court-related technology. District Court Automation Fund Ark. Code Ann. § 16-13-704 established fund to receive District Court installment fees of ½ of $5 per month on each person to be used for court-related technology. Assessor’s Amendment No. 79 Fund Ark. Code Ann. § 26-26-310 provides that 1% of the County’s share of surplus funds from the Property Tax Relief Trust Fund be allocated to County Assessors for the purpose of administering Arkansas Constitution, Amendment No. 79. County Clerk’s Cost Fund Ark. Code Ann. § 21-6-413 established fund to receive fees collected by County Clerks to be used for automated record systems and any legitimate county purpose. Recorder’s Cost Fund Ark. Code Ann. § 21-6-306 established fund to receive fees collected by Circuit Clerks to be used for automated record systems and any legitimate county purpose. Sheriff’s Automation Fund Ark. Code Ann. § 27-53-210 established fund to partially reimburse county law enforcement agency for cost of making copies of accident reports and traffic violations. Funds collected shall be retained for support of the law enforcement agency. County Library Fund Ark. Code Ann. § 13-2-404 established fund to account for library property tax millage levied by the Quorum Court. Solid Waste Fund Ark. Code Ann. § 8-6-212 established fund to collect fees and other funds to defray the County’s share of the cost of operating the solid waste management facility.

Page | 4

3000

3001

3002

3003

3004

3005

3006

3007

3008

3009

CHART Special Revenue Funds (Continued) County Clerk Operating Fund Ark. Code Ann. § 16-20-407 established a $2 marriage license fee to be used for County Clerk’s cost. Reappraisal Cost Fund Ark. Code Ann. § 26-26-1907 established fund to pay reappraisals of real property with revenue received from the State. Child Support Cost Fund Ark. Code Ann. § 9-10-109 established fund to receive fees to offset administrative costs in the Clerk’s office. Game and Fish Education Fund Ark. Code Ann. § 6-16-1101 established fund to receive grants to be used for school fish and wildlife conservation education programs. Communication Facility and Equipment Fund Ark. Code Ann. §§ 21-6-307, 12-41-105 established fund to receive 25% of Sheriff’s fees collected and phone commission funds to be used to purchase and repair communications equipment and train operations staff. Drug Control Fund Ark. Code Ann. § 5-64-505 established fund to receive asset forfeitures resulting from drug offense cases due to arresting agency. Breathalyzer Fund Ark. Code Ann. § 16-10-308 established fund to receive revenues generated from court costs to be used to maintain and purchase breathalyzer. Jail Operation and Maintenance Fund Ark. Code Ann. § 16-17-129 allows a county to levy an additional fine, not to exceed $20. Funds shall be used exclusively to defray the cost of incarcerating county prisoners, including construction and maintenance of the County Jail. County Detention Facility Fund Ark. Code Ann. § 12-41-505 established fund to receive a $20 booking and administration fee assessed on persons convicted of a felony or Class A misdemeanor to be used exclusively for the maintenance, operation, and capital expenditures of a county jail or regional detention facility. Boating Safety Fund Ark. Code Ann. § 27-101-111 established fund to receive fees to be used for operating a patrol on the waterways within the County or for emergency rescue services if the County has not established a patrol. Emergency 911 Fund Ark. Code Ann. § 12-10-318 established fund to receive fees collected by commercial mobile radio service and telephone providers for 911 emergency services. Emergency Medical Services Fund County ordinance to establish fund to receive fees to provide for ambulance services for the County. Emergency Vehicle Fund Ark. Code Ann. §§ 27-22-103, 27-14-314 established fund for increasing the fine for failure to license motor vehicles and fine for failure to register a motor vehicle to be used for the purchase and maintenance of rescue, emergency medical, and law enforcement vehicles. Fire Equipment and Training (Act 833) Fund Ark. Code Ann. § 14-284-403 requires the County to distribute fire protection premium tax funds to local fire districts for equipment, training, capital improvements, insurance for buildings, utility costs, or other expenditures necessary for upgrading the service provided by the department.

Page | 5

3010

3011

3012

3013

3014

3015

3016

3017

3018

3019

3020

3021

3022

3023

CHART Special Revenue Funds (Continued) Public Defender Fund Ark. Code Ann. § 17-19-301 authorized a bail bond fee of $20 to be collected and remitted to the Arkansas Public Defender Commission. Of each fee, $3 is remitted back to the County to be used to defray the operating expenses of the Public Defender Office. Victim Witness Fund Ark. Code Ann. § 16-21-151 established fund to receive District Court costs levied to be used by the Prosecuting Attorney for operating victim/witness program. Indigent Criminal Defense Fund Ark. Code Ann. § 14-20-102 established fund to receive funds distributed in accordance with Ark. Code Ann. § 16-10-307 to be used to pay reasonable and necessary costs incurred in the defense and representation of indigent persons. District Court Probation Fund Ark. Code Ann. § 5-4-322 authorized District Court probation fees for probation and public service work supervision. Adult Drug Court Fund Ark. Code Ann. § 16-98-304 established fund to receive costs set by drug court judges to be used for treatment, drug testing, and supervision cost. Public Safety Fund Ark. Code Ann. § 27-34-108 established fund to receive 25% of the District Court fines levied for violations of the Child Passenger Protection Code to be used for promotion of public safety. Youth Accident Prevention Program (YAPP) Court Cost Fund Ark. Code Ann. § 14-20-116 established fund to receive up to $5 of every fine, penalty, and forfeiture for moving traffic offenses in District Court to be used in educating students on the dangers of driving while intoxicated. Circuit Court Juvenile Division/Juvenile Probation Fee Fund Ark. Code Ann. § 16-13-326 established fund to collect juvenile fees and provide services and supplies to juveniles at the discretion of the juvenile division of Circuit Court. Juvenile Court Representation Fund Ark. Code Ann. § 9-27-316 established fund to collect fees and costs to offset expenses of juvenile cases. Solid Waste Reserve Depreciation Fund County ordinance to establish fund as a contingency fund for Solid Waste. Cops in Schools Fund County ordinance to establish fund for the County and area schools to provide law enforcement to participating school districts. Criminal Justice Fund County ordinance to establish fund to receive court costs to be used for operations of the criminal justice system. Recycling Fund County ordinance to establish fund to receive revenues generated by the recycling operations of the County. County Airport Fund County ordinance to establish Airport Board. Voting System Grant Fund Ark. Code Ann. § 19-5-1247 established fund to receive grants from the County Voting System Grant Fund to purchase voting system equipment, programming, and maintenance.

Page | 6

3024

3025

3026

3027

3028

3029

3030

3031

3032

3033

3034

3035

3036

3037 3038

CHART Special Revenue Funds (Continued) Circuit Clerk Commissioner’s Fee Fund 3039 Ark. Code Ann. § 21-6-412 established fund to receive fee awarded, when appointed as Commissioner, for a sale of real or personal property under judicial decree. The funds are to be used to offset administrative costs associated with the performance of the Commissioner’s duties and for general operations expenses of the office of Circuit Clerk. County Pre-Adjudication Probation Program Fund 3040 Ark. Code Ann. § 5-4-910 established fund to receive preadjudication probation program user fees. The fees are to be used for the benefit and administration of the pre-adjudication probation program. Reserved For Future Use 3041 – 3399 Unique – Special Revenue Funds 3400 – 3499 Grants – Special Revenue Funds 3500 – 3999 Capital Projects Funds Jail Construction Fund Reserved For Future Use Unique – Capital Projects Funds Grants – Capital Projects Funds

4000 4001 – 4799 4800 – 4899 4900 – 4999

Debt Service Funds Sales Tax Bond Fund Reserved For Future Use Unique – Debt Service Funds Grants – Debt Service Funds

5000 5001 – 5799 5800 – 5899 5900 – 5999

Agency Funds Treasurer’s Commission Fund Collector’s Commission Fund Collector’s Unapportioned Fund Property Tax Relief Fund (Amendment No. 79 Sales Tax) Delinquent Personal Tax Fund Delinquent Real Estate Tax Fund Timber Tax Fund State Land Redemption Fund State Land Sales Fund Law Library Fund Administration of Justice Fund Interest Fund Game and Fish Commission Fund Common School Fund Unapportioned School Fund Fair Association Fund Reserved For Future Use Unique – Agency Funds Fire Districts Funds Cities Funds Schools Funds Improvement Districts Funds

6000 6001 6002 6003 6004 6005 6006 6007 6008 6009 6010 6011 6012 6013 6014 6015 6016 – 6399 6400 – 6499 6500 – 6599 6600 – 6699 6700 – 6799 6800 – 6999

Enterprise Funds Landfill Fund

7000

Trust Funds Library Books Trust

8000

Page | 7

OFFICE/DEPARTMENTAL CODES - ACCOUNTING For purposes of budgeting and accounting for the various activities in which counties are involved, the accompanying Office/Departmental Codes Numbers Chart is provided. For both budgeting and accounting purposes, each county office or department participating in the county budget is assigned an Office/Departmental Code. This Office/Departmental Code is utilized in conjunction with expenditure codes, which are discussed in another section of this manual. To properly budget and account for county expenditures on a departmental basis, it is essential that each county office or department be assigned a code in accordance with the accompanying Office/Departmental Codes Numbers Chart. The section of the manual related to county expenditure codes presents illustrations and examples that show the relationship between the Office/Departmental Code and the Expenditure Code to provide a consistent account code that specifically identifies detailed expenditures on an office/departmental basis. Also provided in the accompanying Office/Departmental Code Numbers Chart are codes to account for those expenditures related to appropriation made by the County for the various county, regional, state, and federal agencies and organizations that the County desires to support and that are usually not budgeted and accounted for in the same level of detail as other county expenditures: (0116) Grants-in-Aid – General, (0304) Grants-in-Aid – Health, (0421) Grants-inAid – Law Enforcement, (0503) Grants-in-Aid – Public Safety, (0602) Grants-in-Aid – Recreation and Culture, and (0803) Grants-in-Aid – Social Services. Office/Departmental Codes are grouped by their major function of activity. The Office/Departmental Code is utilized in conjunction with the Expenditure Code to classify expenditures for financial presentations. The Office/Departmental Code is a four-digit number, with the first two digits identifying the major group in which the Office/Department expenditures should be reported. The major expenditure groups are as follows: • • • • • • • • •

Page | 8

General Government Highways and Streets Health Law Enforcement Public Safety Recreation and Culture Sanitation Social Services Airport

General Government 0100 0101 0102 0103 0104 0105 0106 0107 0108 0109 0110 0111 0112 0113 0114 0115 0116

County Judge County Clerk Circuit Clerk Treasurer Tax Collector Assessor Board of Equalization Quorum Court Courthouse Maintenance Election County Planning Board County Buildings County Special Projects Financial Management Child Support Computer/IS Department Grants-In-Aid – General

Highway and Streets 0200

County Road

Health 0300 0301 0302 0303 0304

County Health Ambulance Service County Hospital County Nursing Home Grants-In-Aid – Health

Law Enforcement 0400 0401 0402 0403 0404 0405 0406 0407 0408 0409 0410 0411 0412 0413 0414 0415 0416 0417 0418 0419 0420 0421

Page | 9

Sheriff Circuit Court Circuit Court Circuit Court Circuit Court Circuit Court Chancery Court Chancery Clerk Probate Court District Court District Court District Court District Court Small Claims Court Juvenile Court Juvenile Intake Prosecuting Attorney Public Defender County Jail Coroner Constables Grants-In-Aid – Law Enforcement

Public Safety 0500 0501 0502 0503

Office of Emergency Management Nine One One Fire Departments Grants-In-Aid – Public Safety

Recreation and Culture 0600 0601 0602

County Library County Parks and Recreation Grants-In-Aid – Recreation and Culture

Sanitation 0700 0701 0702

Sanitation/Solid Waste Landfill Recycling

Social Services 0800 0801 0802 0803

Veterans Service Extension Office Paupers and Welfare Grants-In-Aid – Social Services

Airport 0900

Airport

Transfers Out 8888

Transfers Out

Page | 10

COUNTY REVENUE CODES - ACCOUNTING The County Revenue Codes presented in this section of the manual are structured to be as selfexplanatory as possible. These codes are designed to classify revenues according to the specific kind of revenue within major categories or groupings of revenue. They are grouped into series or broad types of revenue and are numbered so that 100 different revenue items could be accommodated within each series, which should allow ample capacity to expand the detailed classifications of revenue within each series as future needs dictate. The County Revenue Code is a four-digit number, with the first two digits indicating the revenue series to which the code belongs. County Revenue Codes are also designed to account for revenues by the type of transaction utilized by the County Treasurer to reflect and record such revenue. For example, certain revenues are received by the County Treasurer, with a receipt being issued for such revenues; however, the County Treasurer may also be involved in transactions that require a transfer of funds from one account(s) or fund(s) to another account(s) or fund(s) without a receipt being issued for these transactions. The County Treasurer may also issue a receipt for tax monies that are recorded as revenue to a particular account or fund, with such tax monies subsequently being recorded as revenues to several accounts or funds based upon an apportionment of the tax monies originally receipted by the County Treasurer. When the apportionment of tax monies to the various taxing units is made by the County Treasurer, receipts are not issued by the County Treasurer to reflect these transactions since a receipt was issued by the County Treasurer when the tax monies were originally received, before they were apportioned to the various taxing units. An example illustrating the accounting for taxes received by the County Treasurer from the County Tax Collector and subsequently apportioned to the various taxing units is as follows: 1) The County Treasurer receives $100,000 from the County Tax Collector representing monthly tax collections; the County Treasurer issues a receipt to the County Tax Collector for $100,000, with the receipt coded as explained below and the number, date, and amount of the receipt being posted in the “Collector’s Unapportioned Fund” in the Treasurer’s ledger. Using the accompanying chart of accounts as a guide, the receipt is coded “9001” indicating “Unapportioned Taxes Received – Current Taxes.” The code “9001” is used in conjunction with an entity code that would also be utilized to indicate the particular fund to which the County Treasurer is posting this particular receipt. For example, if the “Collector’s Unapportioned Fund” in the Treasurer’s ledger has been assigned an entity code of “6002,” this transaction would be coded “6002-9001,” with the “6002” representing the “Collector’s Unapportioned Fund” and the “9001” representing the revenue account “Unapportioned Taxes Received - Current Taxes.” The “60029001” would be entered on the receipt issued by the County Treasurer, and this code would also be posted with the other information concerning the number, date, and amount of the receipt to the “Collector’s Unapportioned Fund” in the Treasurer’s ledger. 2) Based upon a certificate prepared by the County Clerk, the County Treasurer is furnished a distribution or apportionment that reflects 90% of the taxes received by the Treasurer in 1) above to be apportioned to the various taxing units. This distribution reflects amounts to be credited to several funds in the Treasurer’s ledger in the total amount of $90,000. Each of the various taxing units that will share in the total distribution or apportionment of the $90,000 in property taxes to be apportioned are assigned a certain code to be utilized in posting the individual apportionments of the total apportionment to the individual funds maintained for each of the taxing units in the Treasurer’s ledger. The revenue account code “7201” – “Local Property Taxes – Current” is used as a part of the code, with an entity/fund code also being utilized to specifically identify the particular taxing units in the Treasurer’s ledger sharing in the apportionment. For example, if the entity code for the County General Fund is “1000,” that part of the transaction representing the apportionment to the County General Fund would be coded “10007201,” with the “1000” representing the County General Fund and the “7201” representing “Local Property Taxes – Current.” Since a receipt will not be issued to reflect this transaction, this code (“1000-7201”) should be entered by the Treasurer on the document prepared by the County Clerk and furnished to the Treasurer and should subsequently be posted in the Treasurer’s ledger as a Tax Transfer.

Page | 11

COUNTY REVENUE CODES - ACCOUNTING Each individual apportionment of the total apportionment among the various taxing units must be coded on the distribution sheet by the County Treasurer for posting to the individual funds maintained in the Treasurer’s ledger, as discussed and illustrated in the foregoing example. It is also necessary to code the transaction reflecting the disbursem*nt of tax monies from the “Collector’s Unapportioned Fund.” In the earlier example, an entity/fund code of “6002” was assigned to the “Collector’s Unapportioned Fund.” Keeping this in mind and using the accompanying chart of accounts as a guide, the transaction reflecting the disbursem*nt of tax monies from the “Collector’s Unapportioned Fund” would be coded “6002-9101,” with the “6002” representing the “Collector’s Unapportioned Fund” and the “9101” representing “Current Taxes Apportioned.” With the preceding examples in mind, a brief summary and illustration of the various entries that would be required to code the transactions follows: A. Coding for transactions to reflect County Treasurer receiving $100,000 from County Tax Collector for Unapportioned Property Taxes Collector’s Unapportioned Fund – (Entity/Fund Code) 6002

Unapportioned Taxes Received – Current Taxes (Revenue Account) 9001

B. Coding for transaction to reflect the County General Fund portion of tax apportionment County General Fund (Entity/Fund Code) 1000

Local Property Taxes – Current (Revenue Account) 7201

C. Coding for Transaction to reflect the disbursem*nt of taxes from Collector’s Unapportioned Account Collector’s Unapportioned Fund (Entity/Fund Code) 6002

Current Taxes Apportioned (Disbursem*nt Account) 9101

INTERFUND TRANSFERS A revenue series for transfers-in and transfers-out is to be used to account for a lump sum transfer from one fund to another. By their nature, lump sum transfers are generally accounted for only at the fund level and do not affect any specific revenue account. Therefore, a TransferTo revenue code must be established for any fund that will be providing a lump sum transfer to another fund. Likewise, a Transfer-From revenue code must be established for any fund that will be receiving a lump sum transfer from another fund. The items below further elaborate on when the Transfers-In and Transfers-Out revenue codes should be used: 1. A lump sum transfer is a budgeted (appropriated) expense of the fund giving the money. 2. Transfers-in and transfers-out must balance. Neither can be used without a corresponding entry to the other. The Transfers-In and Transfers-Out revenue codes would not be used for the distribution or allocation of revenues such as interest, excess commissions, taxes, or Administration of Justice funds. Page | 12

COUNTY REVENUE CODES - ACCOUNTING Example of Transfers-In and Transfers-Out: Assume that the County General Fund is giving the County Road Fund $500,000.00 as a onetime transfer. Further assume that this transfer has been appropriated by the Quorum Court to cover operating expenses in the County Road Fund. The transaction would be appropriately recorded as follows: The County Clerk would budget and record the transfer to the following account in the County General Fund: 1000-8888-9999 The County Treasurer would record the transfer as follows: In the County General Fund (fund giving the money) 1000-8902 Transfer to County Road In the County Road Fund (fund receiving the money) 2000-8801 Transfer from County General Note: The fund giving the money would record the transfer using the revenue code Transfer-To and the fund receiving the money would record the transfer using the revenue code TransferFrom.

Examples of Revenue Allocations and Distributions: While the County Treasurer may use the transfer function in many software applications to record these transactions, the revenue codes Transfers-In and Transfers-Out would not be used for these types of transactions. Interest – For simplicity, let’s assume that the County received $10,000.00 interest from a CD and that the interest is due to the County General, County Road, and County Library Funds. When interest is received, the following receipt would be issued: 6011- 7501 (Interest Fund – Interest Income): $10,000.00 When the interest is distributed to the various funds, the following transaction would be recorded: Debit 6011-7501 (Interest Fund – Interest Income) for the full amount: Credit 1000-7501 (County General – Interest Income) for its prorated share: Credit 2000-7501 (County Road – Interest Income) for its prorated share: Credit 3008-7501 (County Library – Interest Income) for its prorated share:

$10,000.00 $6,000.00 $3,000.00 $1,000.00

To utilize the transfer function to record these entries in your software, you would transfer from fund 6011 to funds 1000, 2000, and 3008. County’s Portion of AOJ Funds: (example of fines received from Circuit Court) When settlement is received the following receipt would be issued: 6010-7401 (Administration of Justice Fund – Circuit Court Fines and Forfeitures) When the County’s portion is distributed to the County General Fund: Debit 6010-7401 (Administration of Justice Fund – Circuit Court Fines and Forfeitures) Credit 1000-7401 (County General Fund – Circuit Court Fines and Forfeitures)

Page | 13

COUNTY REVENUE CODES - ACCOUNTING Distribution of Collector’s Excess Commissions: Debit 6001-8501 (Collector’s Commission Fund – Collector’s Commissions) Credit 1000-8702 (County General Fund – Excess Commission – Collector) Credit 2000-8702 (County Road Fund – Excess Commission – Collector) Credit all other funds receiving excess commissions While there are numerous other examples of revenue that would be allocated or distributed to the various funds, those transactions would be recorded in a similar manner as described above. Also, as with most of the processes in county government, there are various ways to correctly handle and record these transactions. For example, if the distribution for the AOJ funds is known at the time of receipt, it would be acceptable to receipt each fund’s portion directly into the Fund and bypass distributing them through the Agency Fund 6010 – Administration of Justice.

Page | 14

COUNTY REVENUE CODES - ACCOUNTING 7000 SERIES – STATE AID 7001 – General Revenue Turnback 7002 – Highway Revenue Turnback 7003 – Property Reappraisal 7004 – Property Relief Trust Funds 7005 – Real Estate Transfer Tax Surplus 7006 – Severance Taxes 7007 – State Disaster Relief 7008 – Library State Aid 7009 – Ark Game & Fish Act 799 of 2003 7010 – State Grants 7011 – Act 833 Fire Protection 7012 – Boating Safety – State 7013 – Other State Aid 7014 – Highway Revenue Turnback – County Matching Advance Revenue 7015 – Highway Revenue Turnback – County Matching Advance Disbursem*nt 7016 – Amendment No. 79 Assessor’s Turnback 7100 SERIES – FEDERAL AID 7101 – Federal Flood Control 7102 – Federal Forest Reserves 7103 – Community Development Block Grant 7104 – FEMA Disaster Relief 7105 – Homeland Security Grant 7106 – Military Land Mineral Lease 7107 – Nonmilitary Land Mineral Lease 7108 – Library Federal Aid 7109 – Other Federal Grants 7110 – Bureau of Land Management Payment in Lieu of Tax 7200 SERIES – PROPERTY TAXES 7201 – Local Property Taxes – Current 7202 – Local Property Taxes – Delinquent Real Estate 7203 – Local Property Taxes – Delinquent Personal 7204 – Local Property Taxes – Delinquent Improvement District 7205 – Local Property Taxes – Penalty Delinquent Real Estate 7206 – Local Property Taxes – Penalty Delinquent Personal 7207 – Local Property Taxes – Cost On Delinquent Real Estate 7208 – Local Property Taxes – Cost On Delinquent Personal 7209 – Local Property Taxes – Cost On Delinquent Improvement District 7210 – State Land Sales/Redemptions 7211 – In Lieu Of Property Tax – Local 7212 – Uniform Rate of Tax 7300 SERIES – SALES TAXES 7301 – Local Taxes – Sales Tax 7400 SERIES – FINES, FORFEITURES, AND COSTS 7401 – Circuit Court Fines and Forfeitures 7402 – District Court Fines and Forfeitures 7403 – Juvenile Court Costs and Fines 7404 – County Administration of Justice 7405 – Public Defender 7406 – Prosecuting Attorney’s Court Costs 7407 – Other Fines and Forfeitures

Page | 15

COUNTY REVENUE CODES - ACCOUNTING 7500 SERIES – INVESTMENT INCOME 7501 – Interest Income 7600 SERIES – OFFICERS’ FEES 7601 – County and Probate Clerk’s Fees 7602 – Circuit and Chancery Clerk’s Fees 7603 – Sheriff’s Fees 7604 – Child Support Fees and Costs 7605 – Juvenile Probation Fees 7606 – Misc. Charges and Fees 7650 – Circuit Clerk Commissioner’s Fee 7700 SERIES – 911 FEES 7701 – 911 Fees 7702 – CMRS Board Fees 7800 SERIES – JAIL FEES 7801 – Jail Fees 7802 – Prisoner Care Reimbursem*nts – Housing State Prisoners 7803 – Prisoner Care Reimbursem*nts – Housing Other Counties Prisoners 7900 SERIES – SANITATION FEES 7901 – Landfill Fees 7902 – Solid Waste Fees 7903 – Recycling Sales and Fees 8000 SERIES – AMBULANCE FEES 8001 – Ambulance Service Fees 8100 SERIES – FRANCHISE FEES 8101 – Franchise Fees 8200 SERIES – HOSPITAL LEASE 8201 – Hospital Lease 8300 SERIES – INSURANCE PREMIUMS COLLECTED 8301 – Insurance Premiums 8400 SERIES – TREASURER’S COMMISSION 8401 – Treasurer’s Commission 8500 SERIES – COLLECTOR’S COMMISSION 8501 – Collector’s Commission 8600 SERIES – TAXES APPORTIONED – ASSESSOR’S SALARY AND EXPENSE 8601 – Assessor’s Salary and Expense

Page | 16

COUNTY REVENUE CODES - ACCOUNTING 8700 SERIES – OTHER 8701 – Donations 8702 – Excess Commission – Collector 8703 – Excess Commission – Treasurer 8704 – Excess Proceeds from Sales of Tax Delinquent Land 8705 – Juvenile Transportation Fees 8706 – Miscellaneous 8707 – Reimbursem*nt – Office of Emergency Management 8708 – Reimbursem*nt – Phone Calls 8709 – Reimbursem*nt – Veterans’ Service Office 8710 – Rent/Lease 8711 – Sale of Equipment 8712 – Sale of Materials 8713 – Social Security Administration – Prisoner Fees 8714 – Vending Machine Sales and Commission 8715 – Workers Compensation Trust Dividend 8716 – Reimbursem*nt – Corps of Engineers 8717 – Reimbursem*nt – Social Services 8718 – Insurance Proceeds (Casualty Claim) 8719 – Reimbursem*nt – Elections 8720 – Reimbursem*nt – Jury Expense 8721 – Unclaimed Property (Returned from State) 8800 SERIES – TRANSFERS IN 8801 – Transfer from County General 8802 – Transfer from County Road 8900 SERIES – TRANSFERS OUT 8901 – Transfers to County General 8902 – Transfers to County Road 9000 SERIES – UNAPPORTIONED TAXES RECEIVED 9001 – Unapportioned Taxes Received – Current Taxes 9002 – Unapportioned Taxes Received – Delinquent Personal Taxes 9003 – Unapportioned Taxes Received – Delinquent Real Estate Taxes 9004 – Unapportioned Taxes Received – Delinquent Real Estate Penalties 9005 – State Land Redemption Proceeds Received 9006 – State Land Sales Proceeds Received 9007 – Delinquent Improvement Taxes Received 9008 – Local Sales Taxes Received 9009 – Interest Income Received 9010 – Severance Taxes Received 9100 SERIES – UNAPPORTIONED TAXES DISTRIBUTED 9101 – Current Taxes Apportioned 9102 – Delinquent Personal Taxes Apportioned 9103 – Delinquent Real Estate Taxes Apportioned 9104 – Delinquent Real Estate Penalties Distributed 9105 – State Land Redemption Proceeds Distributed 9106 – State Land Sales Proceeds Distributed 9107 – Delinquent Improvement Taxes Distributed 9108 – Local Sales Taxes Distributed 9109 – Interest Income Distributed 9110 – Severance Taxes Distributed

Page | 17

COUNTY REVENUE CODES - ACCOUNTING 9200 SERIES – OTHER FINANCING SOURCES 9201 – Bond Proceeds 9202 – Loan Proceeds 9203 – Audit Adjustment Due Accounts 9204 – Audit Adjustment From Accounts 9900 SERIES – CHECKS/WARRANTS 9900 – Payroll Checks Paid 9901 – Warrants Paid 9902 – Other Checks Paid 9903 – Court Orders Paid 9904 – Commissions Charged

Page | 18

COUNTY EXPENDITURE CODES – ACCOUNTING The County Expenditure Codes presented in this section of the manual are intended to be as selfexplanatory as possible. These codes are designed to classify expenditures according to the types of items purchased or services obtained and are grouped into six major categories. The first digit in the code indicates the major category to which the expenditure belongs. The six major categories are as follows: • • • • • •

Personal Services Supplies Other Services and Charges Capital Outlay Debt Service Interfund Transfers

Within each of these six major categories of expenditures are detailed expenditure accounts to provide an accounting for all of the various expenditures made by the various offices and/or departments in the County. As was discussed in the preceding section of the manual relating to “Office/Departmental Codes – Accounting,” the Office/Departmental Code is used in conjunction with the Expenditure Code to provide a systematic means of numerically coding county expenditures on an office/departmental basis. For example, in the case of an expenditure transaction for an office or department that has been assigned an Office/Departmental Code of “0105” and the particular expenditure being considered has an Expenditure Code of “2001,” then an account code of “0105-2001” would be used to designate this particular transaction. Another expenditure for the same purpose but for an office or department assigned an Office/Departmental Code of “0600” would require an account code of “0600-2001” to designate this particular transaction. A brief explanation of each of the major expenditure categories is as follows: PERSONAL SERVICES The personal services category covers all salaries and fringe benefits, with payments for salaries being initially recorded at the net amount of such payments and the related payroll withholdings being charged to salaries to arrive at the gross amounts of the payroll. However, separate codes are provided for the various matching costs to allow for separate budgeting and accounting for these items. SUPPLIES The supplies category provides a detailed breakdown of various articles and commodities that are either consumed or materially altered when they are used. The supplies category is subdivided into (1) supplies and (2) repair and maintenance supplies. The small equipment expenditure code “2002” should be used to account for purchases of minor office equipment having a cost less than the County’s capitalization policy. The small tools expenditure code “2029” should be used to account for purchases of minor tools having a cost less than the County’s capitalization policy. OTHER SERVICES AND CHARGES The other services and charges category covers expenditures for services other than personal services that are necessary for the administration of county functions. CAPITAL OUTLAY The capital outlay category covers expenditures that normally result in additions to fixed assets. However, the County Matching Advance – Road Construction and Maintenance Expenditure Code “4007” and the Arkansas Highway Department and Other Construction Projects Expenditure Code “4008” represent expenditures that do not result in additions to General Fixed Assets but are included under this category primarily for accounting purposes. Page | 19

COUNTY EXPENDITURE CODES – ACCOUNTING DEBT SERVICE The debt service category covers expenditures that are related to the repayment of long-term debt. INTERFUND TRANSFERS The interfund transfers category will be used to account for interfund transfers that are not accounted for at a specific expenditure code level. These are generally lump sum transfers that are accounted for only at the fund level. Office/Departmental number “8888” and Expenditure Code “9999” are provided to account for these types of interfund transfers. These transfers should be budgeted and charged against an appropriation when they are made.

Page | 20

COUNTY EXPENDITURE CODES CHART PERSONAL SERVICES – Amounts paid to both permanent and temporary government employees, including personnel substituting for those in permanent positions. This category includes gross salary for personal services rendered while on the government payroll and amounts paid by the government on behalf of employees; these amounts are not included in the gross salary but are in addition to that amount. Such payments are fringe benefits payments and, although not paid directly to employees, are a part of the cost of personal services. 1001 1002 1003 1004 1005 1006 1007 1008 1009 1010 1011 1012 1013 1014 1015 1016

Salaries, Full-Time Salaries, Part-Time Extra Help Contract Labor Overtime and Other Premium Compensation Social Security Matching Retirement Matching Noncontributory Retirement Health Insurance Matching Workmen’s Compensation Unemployment Compensation Other Fringe Benefits Car Allowance Cobraserv Uniform Allowance Life Insurance

SUPPLIES – Amounts paid for items that are consumed or deteriorated through use or that lose their identity through fabrication or incorporation into different or more complex units or substances. SUPPLIES 2001 2002

2003 2004 2005 2006 2007 2008

General Supplies Small Equipment – Purchases of minor equipment having a cost less than the County’s capitalization policy. Rented equipment should not be recorded here but, instead, recorded under Rentals and Leases. Janitorial Supplies Medicine and Drugs Food Clothing and Uniforms Fuels, Oil, and Lubricants Tires and Tubes

REPAIR AND MAINTENANCE SUPPLIES 2020 Building Materials and Supplies 2021 Paints and Metals 2022 Plumbing and Electrical 2023 Parts and Repairs 2024 Maintenance and Service Contracts 2025 Asphalt 2026 Culvert and Pipe 2027 Gravel, Dirt, and Sand 2028 Lumber and Pilings 2029 Small Tools – Purchases of minor tools having a cost less than the County’s capitalization policy. Rented tools should not be recorded here but, rather, under Rentals and Leases. 2030 Concrete 2031 Bridges and Steel

Page | 21

COUNTY EXPENDITURE CODES CHART OTHER SERVICES AND CHARGES PROFESSIONAL SERVICES – Services that, by their nature, can be performed only by persons or firms with specialized skills and knowledge. Although a product may or may not result from the transaction, the primary reason for the purchase is the service provided. 3001 3002 3003 3004 3005 3006 3007 3008 3009

Accounting and Auditing Management Consulting Computer Services Engineering and Architectural Special Legal Medical, Dental, and Hospital Drug Testing Property Reappraisal Other Professional Services

COMMUNICATIONS 3020 Telephone and Fax – Landline 3021 Postage 3022 Cell Phones and Pagers 3023 Internet Connection TRANSPORTATION 3030 Travel 3031 Common Carrier ADVERTISING AND PUBLICATIONS 3040 Advertising and Publications – Expenditures for announcements in professional publications, newspapers, or radio/television broadcasts. These expenditures include advertising for such purposes as personnel recruitment, legal ads, new and used equipment, and sale of property. INSURANCE (OTHER THAN PERSONAL SERVICES) – Expenditures for all types of insurance coverage, including property, liability, and fidelity. Insurance for group health should not be recorded here but, rather, recorded under Personal Services. 3050 3051 3052 3053 3054 UTILITIES 3060 3061 3062 3063

Official and Deputy Bond Boilers and Machinery Insurance Fire and Extended Coverage Fleet Liability Other Sundry Insurance

Utilities – Electricity Utilities – Gas Utilities – Water Utilities – Waste Disposal

RENTALS AND LEASES (NOT LEASE PURCHASE) – Cost for renting or leasing land, buildings, equipment, and vehicles for both temporary and long-term use. Lease Purchases should not be recorded here but, rather, recorded under Debt Service. 3070 3071 3072 3073

Rent – Land and Buildings Rent – Machinery and Equipment Lease – Land and Buildings Lease – Machinery and Equipment

PUBLIC RECORDS 3080 Public Records

Page | 22

COUNTY EXPENDITURE CODES CHART OTHER SERVICES AND CHARGES (Continued) MISCELLANEOUS 3090 Dues and Memberships 3091 Court-Appointed Attorneys 3092 Jurors and Witnesses 3093 Miscellaneous Law Enforcement 3094 Meals and Lodging 3095 Paupers and Welfare 3096 County Matching Funds 3097 Tax Refunds 3098 Judgments and Damages 3099 Vending Machines – Food/Drinks 3100 Other Miscellaneous 3101 Training and Education 3102 Computer Software, Support, and Maintenance Agreement 3103 Grants-In-Aid CAPITAL OUTLAY 4001 4002

4003

4004

4005 4006 4007 4008

Land – Expenditures for the purchase of land, including any costs such as legal fees and filing fees. Buildings – Permanent structures purchased or otherwise acquired and improvements thereon. Includes costs incurred in the acquisition of buildings (e.g., broker’s fees). Improvements Other Than Buildings – Permanent improvements, other than buildings, that add value to land (e.g., fences, landscaping, parking lots, and retaining walls). Machinery and Equipment (Other Than Vehicles) – Tangible property of a more or less permanent nature, other than land or buildings and improvements thereon (e.g., machinery, tools, and furnishings). This account includes costs incurred in the acquisition of machinery and equipment (e.g., transportation cost). Vehicles – Expenditures for equipment used to transport persons or objects. Examples include automobiles, trucks, and buses. Construction In Progress – The cost of construction undertaken but not yet completed. County Matching Advance – Road Construction and Maintenance Ark. Highway Dept. and Other Construction Projects

DEBT SERVICE 5001 5002 5003 5004 5005 5006

Bond Principal Bond Interest Note Principal Note Interest Lease Purchase Principal Lease Purchase Interest

TRANSFERS OUT 9999

Page | 23

Transfers Out – Used to account for interfund transfers that are not accounted for at a specific expenditure code level. These are generally lump sum transfers that are accounted for only at the fund level. These transfers should be budgeted and charged against an appropriation when they are made.

DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS REVENUES One of the key points to understand in the development of a line item budget for revenues is that a corresponding budget for expenditures is only as good as the revenue projections on which it is based. Accordingly, realistic revenue projections are very basic and important considerations in the development of line item revenue budgets. In the area of line item revenue budgets, this manual stresses the necessity for the budget classifications of revenues to be compatible with revenue classifications for accounting purposes. Therefore, this principle of compatibility between the budget and accounting records is very evident in the design of the forms and records used in the specific area of line item revenue budgets. For example, the Projected Revenues Summary, which is discussed and illustrated in this section of the manual, parallels closely the accounting data reflected on the Detail of Account Balances, which is maintained by the County Treasurer. This relationship between the documents, presenting a summary of the various types of projected revenues and the accounting records that reflect such revenues as they actually materialize, is necessary for an analysis of revenues and a comparison to budgetary projections for such revenues. In the initial stages of developing a line item budget for revenues, it is necessary to realistically develop revenue projections for the County’s operating funds by carefully reviewing the traditional sources of revenue for these funds. Based upon this review of historical data and consideration of past trends in magnitude and direction that can be reasonably expected to influence future generated revenues, revenues may be projected for budget purposes. Certain types of revenues may be easier to project than other types. For example, certain state and federal aid lends itself to being relatively accurately projected because specific amounts are appropriated or set aside in entitlements, etc., while other types of revenue (e.g., fines and forfeitures, etc.) may not be projected with the same degree of relative precision. A very important component of the control function associated with line item revenue budgets is a mechanism to monitor actual revenues received as compared to revenue projections. In most instances, material revenue shortfalls require budgetary adjustments to spending authorizations as embodied in the appropriations enacted by the governing body. Accordingly, another section of this manual contains a discussion and illustration of a Projected Revenues Detail that provides a methodology for presenting, on a monthly basis, a comparison of actual revenues received to revenues projected in the revenues budget, which becomes the basis for spending authorizations in the expenditures budget. The accompanying Projected Revenues Summary is designed to provide a systematic approach to developing projected revenues using the County Revenue Codes discussed in another section of this manual. Using the County Revenue Codes as a guide, the various sources of revenue are detailed with columns provided for the following: • • •

Current-Year Projected Revenues Current-Year Actual/Projected Revenues Projected Revenues Next Year

The current-year projected revenues are obtained from the current-year budget. The currentyear actual/projected revenues may be a combination of actual revenues at the time of budget preparation added to projections for the balance of the year since the budget process will probably be initiated several weeks or months before the end of the current year, when actual revenues data would not be available. A relevant factor that could be incorporated into the projections of any period of time between the initiation of the budget process and the end of the current year would be the close scrutiny of actual revenues for the corresponding time period of the prior year. In summary, the development and control of line item revenue budgets is a very important tool for effectively planning and managing financial resources in the administration of county government. Therefore, a properly prepared and executed revenue budget can greatly enhance the County’s ability to deliver programs, activities, and services in a more efficient and businesslike manner.

Page | 24

COUNTY NAME: PROJECTED REVENUES SUMMARY - FUND FOR THE CALENDAR YEAR

Account Number

Revenue Classification

Current-Year Projected Revenues

Current-Year Actual/Projected Revenues

Unexpended fund balance - January 1 *

7000 7100 7200 7300 7400 7500 7600 7700 7800 7900 8000 8100 8200 8300 8400 8500 8600 8700 8800 9200

State Aid Federal Aid Property Taxes Sales Taxes Fines, Forfeitures, and Costs Investment Income Officers' Fees 911 Fees Jail Fees Sanitation Fees Ambulance Fees Franchise Fees Hospital Lease Insurance Premiums Collected Treasurer's Commission Collector's Commission Assessor's Salary and Expense Other Transfers In Other Financing Sources

*This amount will only appear in the “projected revenues next year” column.

Page | 25

Projected Revenues Next Year

DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS – EXPENDITURES One of the most basic and important considerations of the financial management system as it is developed in this manual is for the budget classifications of appropriated expenditures to be compatible with expenditure classifications for accounting purposes. Accordingly, this principle of compatibility between the budget and accounting records is evident in the design of the various forms and records used in the operation of the system as discussed in this manual. For example, the Application for Appropriation, which is discussed and illustrated in this section of the manual, conforms identically to the accounting records established within the Appropriations Journal. This relationship between the document supporting a detailed departmental appropriation request and the accounting records, which provide a detailed accounting of the expenditures from the particular departmental appropriation, is essential to the analysis of expenditures and their comparison to budgetary authorizations for budgetary control purposes. While the enacted budget is an effective tool for monitoring expenditures, it only constitutes authority for making legal expenditures and in no way implies that the cash funds are available to make these expenditures. Since availability of cash funds to make legal expenditures often depends on external factors over which the County has little or no control, sound cash management practices must be implemented when determining the timing and extent of the expenditures. As state law prohibits the appropriation of more than 90% of projected revenues, the development and control of budgeted expenditures is no more valid than the projected revenues upon which budgeted expenditures are based. Another section of this manual covers the area of projected revenues. The primary budget forms for the development of budgeted expenditures are as follows: Application for Appropriation, Personal Services – Schedule of Salaries and Wages, Capital Outlay – Schedule of Capital Expenditures, County Grants-in-Aid, Interfund Transfers, and County Matching Advance. These budget forms are designed to be as self-explanatory as possible and should be used by all offices, departments, etc., participating in the budget process, with the responsible official, department head, etc., submitting the application for appropriation to the Quorum Court (or Finance Committee). If some of the budget forms are not needed by all parties participating in the budget process, only those forms applicable to each office, department, etc., submitting a budget request should be returned to the Quorum Court (or Finance Committee). The Application for Appropriation heading titled “Actual/Projected Expenditures, Current Year” recognizes the fact that the budget process may commence several months before the end of the current year; thus, actual expenditures for the current year will not be available. To arrive at the figures to be included under this heading, one approach would be to include the actual figures expended as of budget preparation time and to project the estimated expenditures for the remainder of the current year, based upon historical data and current needs. Other approaches can be devised to arrive at actual/projected expenditures for the current year, depending on the wishes and needs of the various Quorum Courts. The County Judge, as the Chief Executive Officer of the County, would normally be the official responsible for handling appropriation requests for those who are not county officials (e.g., contracts for services with Senior Citizens, Arkansas Children’s Hospital, etc.), with these types of appropriation requests being summarized on the budget form County Grants-in-Aid. Consequently, the other budget forms would be unnecessary due to the unique nature of the appropriation requests. The budget form Interfund Transfers would be used to budget lump sum transfers. Lump sum transfers, by nature, are not accounted for at the expenditure code level but, rather, are associated with an expenditure solely at the fund level. An example of a lump sum transfer would be a transfer from the General Fund to the Road Fund that is intended to cover operational expenditures of the Road Department but is not intended for a specific expenditure.

Page | 26

DEVELOPMENT AND CONTROL OF LINE ITEM BUDGETS – EXPENDITURES The budget form County Matching Advance would be used in those instances when the County enters into an agreement with the Arkansas Highway Department for road construction and maintenance and finances the work through the “County Road Construction and Maintenance Revolving Fund” created by the Legislature, with the County repaying this revolving fund in equal monthly payments under a repayment schedule prepared by the Department of Finance and Administration (DFA) and the repayment being withheld from the County’s monthly highway turnback. Once the County Matching Advance is included in the appropriation process, the court order and repayment schedule prepared by DFA would constitute authority to enter the monthly amount withheld from the County’s monthly highway turnback in the County Court Claims Docket/Warrant and Transfer Register, as explained in the section on Other General Information. While the budget for line item expenditures needs to be developed in sufficient detail, as outlined in the Application for Appropriation, to ensure an orderly and systematic consideration of expenditure proposals, adequate flexibility should be built into the adopted budget to promote sound management practices and procedures in the execution of the adopted budget. Adequate flexibility can be enhanced in an adopted budget by using appropriate language from the legal document (Appropriation Ordinance) adopting the budget. For example, if a budget is adopted using language stating that a line item expenditure cannot exceed its respective line item appropriation, then the processing of claims against the County could be delayed due to the lack of sufficient appropriations in an office or department’s line item appropriations, even though the office or department’s overall appropriation is sufficient to absorb the claim without causing a deficit expenditure position. Another reason to avoid use of this type of language would be the possibility of miscoding certain claims to ensure that line item expenditures do not exceed line item appropriations. Using this type of language could require almost daily monitoring of line item expenditures versus appropriations and make it necessary for the Quorum Court to make numerous budget adjustments to the original enacted budget, depending on the original line item appropriations and the types of expenditures involved. However, a flexible budget could be implemented using language stating that an office or department’s overall appropriation is the control point for ensuring that expenditures do not exceed appropriations, with the appropriate official or department head monitoring the expenditures within each of the six major expenditure categories – personal services, supplies, other services and charges, capital outlay, debt service, and interfund transfers (if applicable) – so that the Quorum Court can make appropriate budget adjustments, if necessary. However, state law provides that all compensation, including salary, hourly compensation, expense allowances, and other remunerations allowed to any county or township officer or employee thereof, shall be made only on specific appropriation by the Quorum Court of the County and, thus, would be governed by line item appropriations. While state law mandates that salaries and the above-mentioned items be governed by line item appropriations, the financial management system recommended by this manual advocates the monitoring of expenditures other than salaries (and above-mentioned items) at the major expenditure category within each office or department. This would not preclude the prerogative of the Quorum Court to monitor expenditures or to incorporate certain control mechanisms at a different level, such as line item transfers of appropriated amounts within an office or department that exceed a specified percentage (or amount) and require prior Quorum Court approval.

Page | 27

BUDGET LINE ITEM PERSONAL SERVICES 1001 SALARIES, FULL-TIME 1002 SALARIES, PART-TIME 1003 EXTRA HELP 1004 CONTRACT LABOR 1005 OVERTIME AND OTHER PREMIUM COMPENSATION 1006 SOCIAL SECURITY MATCHING 1007 RETIREMENT MATCHING 1008 NONCONTRIBUTORY RETIREMENT 1009 HEALTH INSURANCE MATCHING 1010 WORKMEN'S COMPENSATION 1011 UNEMPLOYMENT COMPENSATION 1012 OTHER FRINGE BENEFITS 1013 CAR ALLOWANCE 1014 COBRASERV 1015 UNIFORM ALLOWANCE 1016 LIFE INSURANCE SUPPLIES SUPPLIES 2001 GENERAL SUPPLIES 2002 SMALL EQUIPMENT 2003 JANITORIAL SUPPLIES 2004 MEDICINE AND DRUGS

Page | 28

CURRENT-YEAR APPROPRIATION

ACTUAL/PROJECTED EXPENDITURES CURRENT YEAR

AMOUNT REQUESTED NEXT YEAR

BUDGET LINE ITEM SUPPLIES SUPPLIES 2001 GENERAL SUPPLIES 2002 SMALL EQUIPMENT 2003 JANITORIAL SUPPLIES 2004 MEDICINE AND DRUGS 2005 FOOD 2006 CLOTHING AND UNIFORMS 2007 FUEL, OIL, AND LUBRICANTS 2008 TIRES AND TUBES REPAIR AND MAINTENANCE SUPPLIES 2020 BUILDING MATERIALS AND SUPPLIES 2021 PAINTS AND METALS 2022 PLUMBING AND ELECTRICAL 2023 PARTS AND REPAIRS 2024 MAINTENANCE AND SERVICE CONTRACTS 2025 ASPHALT 2026 CULVERT AND PIPE 2027 GRAVEL, DIRT, AND SAND 2028 LUMBER AND PILINGS 2029 SMALL TOOLS 2030 CONCRETE 2031 BRIDGES AND STEEL

PROFESSIONAL SERVICES 3001 ACCOUNTING AND AUDITING 3002 MANAGEMENT CONSULTING 3003 COPUTER SERVICES 3004 ENGINEERING AND ARCHITECTURAL 3005 SPECIAL LEGAL

Page | 29

CURRENT-YEAR APPROPRIATION

ACTUAL/PROJECTED EXPENDITURES CURRENT YEAR

AMOUNT REQUESTED NEXT YEAR

APPLICATION FOR APPROPRIATION CALENDAR YEAR:______________________

DATE:___________________________

FUND:___________________________________

OFFICE/DEPARTMENT:_____________________________________

BUDGET LINE ITEM OTHER SERVICES AND CHARGES PROFESSIONAL SERVICES 3001 ACCOUNTING AND AUDITING 3002 MANAGEMENT CONSULTING 3003 COMPUTER SERVICES 3004 ENGINEERING AND ARCHITECTURAL 3005 SPECIAL LEGAL 3006 MEDICAL, DENTAL, AND HOSPITAL 3007 DRUG TESTING 3008 PROPERTY REAPPRAISAL 3009 OTHER PROFESSIONAL SERVICES COMMUNICATIONS 3020 TELEPHONE AND FAX - LANDLINE 3021 POSTAGE 3022 CELL PHONES AND PAGERS 3023 INTERNET CONNECTION TRANSPORTATION 3030 TRAVEL 3031 COMMON CARRIER ADVERTISING AND PUBLICATIONS 3040 ADVERTISING AND PUBLICATIONS

Page | 30

CURRENT-YEAR APPROPRIATION

ACTUAL/PROJECTED EXPENDITURES CURRENT YEAR

AMOUNT REQUESTED NEXT YEAR

APPLICATION FOR APPROPRIATION CALENDAR YEAR:______________________

DATE:___________________________

FUND:___________________________________

OFFICE/DEPARTMENT:_____________________________________

BUDGET LINE ITEM OTHER SERVICES AND CHARGES (CONTINUED) INSURANCE (OTHER THAN PERSONAL SERVICES) 3050 OFFICIAL AND DEPUTY BOND 3051 BOILERS AND MACHINERY INSURANCE 3052 FIRE AND EXTENDED COVERAGE 3053 FLEET LIABILITY 3054 OTHER SUNDRY INSURANCE UTILITIES 3060 UTILITIES - ELECTRICITY 3061 UTILITIES - GAS 3062 UTILITIES - WATER 3063 UTILITIES - WASTE DISPOSAL RENTALS AND LEASES (NOT LEASE PURCHASE) 3070 RENT - LAND AND BUILDINGS 3071 RENT - MACHINERY AND EQUIPMENT 3072 LEASE - LAND AND BUILDINGS 3073 LEASE - MACHINERY AND EQUIPMENT PUBLIC RECORDS 3080 PUBLIC RECORDS

Page | 31

CURRENT-YEAR APPROPRIATION

ACTUAL/PROJECTED EXPENDITURES CURRENT YEAR

AMOUNT REQUESTED NEXT YEAR

APPLICATION FOR APPROPRIATION CALENDAR YEAR:______________________

DATE:___________________________

FUND:___________________________________

OFFICE/DEPARTMENT:_____________________________________

BUDGET LINE ITEM OTHER SERVICES AND CHARGES (CONTINUED) MISCELLANEOUS 3090 DUES AND MEMBERSHIPS 3091 COURT-APPOINTED ATTORNEYS 3092 JURORS AND WITNESSES 3093 MISCELLANEOUS LAW ENFORCEMENT 3094 MEALS AND LODGING 3095 PAUPERS AND WELFARE 3096 COUNTY MATCHING FUNDS 3097 TAX REFUNDS 3098 JUDGMENTS AND DAMAGES 3099 VENDING MACHINES - FOOD/DRINKS 3100 OTHER MISCELLANEOUS 3101 TRAINING AND EDUCATION 3102 COMPUTER SOFTWARE, SUPPORT, AND MAINTENANCE AGREEMENT CAPITAL OUTLAY 4001 LAND 4002 BUILDINGS 4003 IMPROVEMENTS OTHER THAN BUILDINGS 4004 MACHINERY AND EQUIPMENT (OTHER THAN VEHICLES)

Page | 32

CURRENT-YEAR APPROPRIATION

ACTUAL/PROJECTED EXPENDITURES CURRENT YEAR

AMOUNT REQUESTED NEXT YEAR

APPLICATION FOR APPROPRIATION CALENDAR YEAR:______________________

DATE:___________________________

FUND:___________________________________

OFFICE/DEPARTMENT:_____________________________________

BUDGET LINE ITEM

CURRENT-YEAR APPROPRIATION

CAPITAL OUTLAY (CONTINUED) 4005 VEHICLES 4006 CONSTRUCTION IN PROGRESS 4007 COUNTY MATCHING ADVANCE - ROAD CONSTRUCTION AND MAINTENANCE 4008 ARK HIGHWAY DEPT AND OTHER CONSTRUCTION PROJECTS DEBT SERVICE 5001 BOND PRINCIPAL 5002 BOND INTEREST 5003 NOTE PRINCIPAL 5004 NOTE INTEREST 5005 LEASE PURCHASE PRINCIPAL 5006 LEASE PURCHASE INTEREST TRANSFERS OUT 9999 TRANSFERS OUT

TOTAL

Total Anticipated Revenue Variance (Total Anticipated Revenue Less Total Amount Requested Next Year)

Page | 33

ACTUAL/PROJECTED EXPENDITURES CURRENT YEAR

AMOUNT REQUESTED NEXT YEAR

PERSONAL SERVICES - SCHEDULE OF SALARIES AND WAGES

Number

Classification

(Job Title)

Current Annual Salary

Proposed Salary Next Year

TOTAL

Notes: 1. Classification relates to the position and not to the individual; therefore, individual names should not be utilized. 2. Number relates to the numerical sequence assigned each position requested; any job title with multiple positions may be combined. For example, three employees with the same job title and salary compensation level would be entered as follows: Number – 4 through 6; Classification – 3 Deputies @ $24,000 per deputy; and Proposed Salary Next Year – $72,000. Additionally, the Current Annual Salary item should also reflect comparable dollar amounts. 3. The official (where applicable) is to be shown as the first entry in the “Classification” section of the schedule. 4. Gross salary is to be shown rather than net salary. 5. The total should correspond with the appropriation amount requested, both for dollar amounts and type of employment (i.e., full-time, part-time, etc.).

Page | 34

CAPITAL OUTLAY - SCHEDULE OF CAPITAL EXPENDITURES Current-Year Amount Requested Description of Capital Expenditure Appropriation Next Year

TOTAL

Notes: 1. Descriptions should be as complete as possible (excluding brand names), with the expenditures being itemized as to quantity and cost. Multiple purchases of the same or similar items may be grouped together. 2. Current-Year Appropriation should have a total at the bottom of the page without any accompanying description.

Page | 35

COUNTY GRANTS-IN-AID Current-Year Appropriation Purpose and Function of Applicant

Amount Requested Next Year

TOTAL

Notes: 1. Appropriation request should be signed by the head of the appropriate agency, organization, etc. 2. Appropriation request should contain, at a minimum, the types of expenditures for which the requested funds will be used.

Page | 36

Transfer To

INTERFUND TRANSFERS Current-Year Appropriation Purpose and Use

Amount Requested Next Year

TOTAL

Notes: 1. The purpose and use of the transfer out should be described in as much detail as possible. 2. All approved (budgeted) transfers out are to be included in the receiving fund’s projected revenues (if applicable).

Page | 37

COUNTY MATCHING ADVANCE Current-Year Description Appropriation

TOTAL

Note: Refer to page 27 for a discussion of the budget form.

Page | 38

Amount Requested Next Year

FINANCIAL REPORTING This section of the manual is very broad and consists of both a discussion of and examples and illustrations for the following records and reports incorporated in the County Financial Management System: (1) County Court Claims Docket/Warrant and Transfer Register, (2) Appropriations Journal, (3) Appropriations Journal Summary, (4) Summary of Expenditures, (5) Projected Revenue Detail, (6) Projected Revenue Summary, (7) Treasurer’s Detail of Account Balances, and (8) Treasurer’s Summary of Account Balances. Of the above-noted items, number (2), Appropriations Journal, provides an excellent source of information for officials and department heads to monitor expenditures and unexpended appropriations. The above-noted items (7), Treasurer’s Detail of Account Balances, and (5), Projected Revenue Detail, provide an excellent source of information concerning county revenues. The above-noted items (3), Appropriations Journal Summary; (8), Treasurer’s Summary of Account Balances; and (6), Projected Revenue Summary, provide an excellent source of information concerning county revenues and expenditures in a summarized format for presentation to the Quorum Court. The financial information contained in (2), Appropriations Journal, and (7), Treasurer’s Detail of Account Balances, can also be very helpful in providing certain financial data to various federal and state agencies, such as the Census Bureau. The other records discussed and illustrated in this section of the manual – (1), County Court Claims Docket/Warrant and Transfer Register, and (4), Summary of Expenditures, – primarily serve as accounting records and normally would not be presented to the Quorum Court.

COUNTY COURT CLAIMS DOCKET/WARRANT AND TRANSFER REGISTER All claims and transfers are entered on this record by number: For claims, the claim number is entered, and for transfers, the number of the court order authorizing the transfer is entered. For interfund transfers, some of the columns on this record will be blank. For example, unless a warrant is issued in conjunction with a transfer, the information concerning warrant number and date issued would not apply. Also, interfund transfers are accounted for only at the fund level; therefore, office/department and account would be blank. The account code column is a very important part of this record and serves as the key to maintaining an accounting of appropriations and expenditures as provided for in the accompanying Appropriations Journal. The Appropriations Journal is the summary report of expenditures as reflected on the County Court Claims Docket/Warrant and Transfer Register. The Appropriations Journal is summarized on an office or departmental basis for both detailed accounting and comparisons to budgetary authorizations for such expenditures.

Page | 39

COUNTY COURT CLAIMS DOCKET/WARRANT AND TRANSFER REGISTER

Fund 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Page | 40

Office/ Dept. 0100 0100 0100 0100 0100 0100 0100 0100 0100 0100

Acct 2001 2001 2002 3003 1001 1001 1006 1001 1001

Claim Number 4 39 82 112 206 221 221 222 223

Warrant Number

Court Order #

4 39 82 112 206 221 221 222 223 2010-10

Claimant / Payee Ace Printing Company Central Office Supply Apex Office Equipment Superior Computer Supply John Judge First National Bank and Trust First National Bank and Trust Internal Revenue Service Dept. of Finance and Admin County Road Fund

Date Filed 1/10/2010 1/12/2010 1/17/2010 1/19/2010 1/29/2010 1/29/2010 1/29/2010 1/29/2010 1/29/2010

Date Presented 1/10/2010 1/12/2010 1/17/2010 1/19/2010 1/29/2010 1/29/2010 1/29/2010 1/29/2010 1/29/2010

Date Date Issued Voided Amount 1/10/2010 150.00 1/12/2010 226.75 1/17/2010 75.15 1/19/2010 525.00 879.25 1/29/2010 1/29/2010 6.75 6.75 1/29/2010 1/29/2010 90.00 1/29/2010 24.00 50,000.00

APPROPRIATIONS JOURNAL The Appropriations Journal is designed to provide a detailed record of the budget, expenditures, and budgetary appropriation available for expenditure of the various county offices and departments. The Appropriations Journal report is produced for each county office and department with separate appropriation control accounts being maintained for the major expenditure categories of (1) Personal Services, (2) Supplies, (3) Other Services and Charges, (4) Capital Outlay, (5) Debt Service, and (6) Interfund Transfers.

Page | 41

OFFICE: 0100 COUNTY JUDGE FYE 12/31/2010

Fund

Office

Account

Account Description

PERSONAL SERVICES 1000 0100 1001 SALARIES, FULL-TIME 1000 0100 1002 SALARIES, PART-TIME 1000 0100 1003 EXTRA HELP 1000 0100 1004 CONTRACT LABOR 1000 0100 1005 OVERTIME/OTHER PREMIUM COMPENSATION 1000 0100 1006 SOCIAL SECURITY MATCHING 1000 0100 1007 RETIREMENT MATCHING 1000 0100 1010 WORKMEN'S COMPENSATION 1000 0100 1011 UNEMPLOYMENT COMPENSATION TOTAL PERSONAL SERVICES SUPPLIES 1000 1000 1000

0100 2001 GENERAL SUPPLIES 0100 2002 SMALL EQUIPMENT 0100 2003 JANITORAL SUPPLIES TOTAL SUPPLIES

Original Budget

74,000.00 10,000.00 5,000.00 1,500.00 150.00 6,000.00 7,500.00 500.00 500.00 105,150.00

YTD Transfer/ Appropriation

Budget Amount

(500.00) 73,500.00 10,000.00 500.00 5,500.00 1,500.00 150.00 6,000.00 7,500.00 500.00 500.00 105,150.00

Current Month YTD Expenditures Expenditures

YTD Balance

6,125.00 850.00 350.00 230.00 495.00 600.00 43.00 43.00 8,736.00

73,495.00 10,000.00 5,300.00 1,400.00 150.00 5,950.00 7,500.00 350.00 475.00 104,620.00

5.00 200.00 100.00 50.00 150.00 25.00 530.00

500.00 1,500.00 100.00 2,100.00

42.00 125.00 10.00 177.00

420.00 1,125.00 50.00 1,595.00

80.00 375.00 50.00 505.00

OTHER SERVICES AND CHARGES 1000 0100 3005 SPECIAL LEGAL 1000 0100 3009 OTHER PROFESSIONAL SERVICES 1000 0100 3020 TELEPHONE AND FAX - LANDLINE 1000 0100 3021 POSTAGE 1000 0100 3022 CELL PHONES AND PAGERS 1000 0100 3030 TRAVEL TOTAL OTHER SERVICES AND CHARGES

5,000.00 1,500.00 2,500.00 1,000.00 1,200.00 2,500.00 13,700.00

(500.00) 500.00

4,500.00 2,000.00 2,500.00 1,000.00 1,200.00 2,500.00 13,700.00

375.00 166.67 208.33 83.33 100.00 208.33 1,141.67

4,000.00 1,800.00 2,475.00 890.00 1,195.00 2,210.00 12,570.00

500.00 200.00 25.00 110.00 5.00 290.00 1,130.00

CAPITAL OUTLAY 1000 0100 4005 VEHICLES TOTAL CAPITAL OUTLAY

20,000.00 20,000.00

1,666.67 1,666.67

19,500.00 19,500.00

500.00 500.00

140,950.00

11,721.33

138,285.00

2,665.00

Page | 42 TOTAL

0100 COUNTY JUDGE

APPROPRIATIONS JOURNAL SUMMARY The Appropriations Journal Summary is designed to summarize expenditures for each of the various county offices and departments within the fund. This record also presents information concerning appropriations against which the expenditures are charged to determine unexpended balances within each fund for each of the various county offices and departments.

Page | 43

COUNTY NAME APPROPRIATIONS JOURNAL - SUMMARY YEAR TO DATE FOR MONTH ENDING ___________

Fund

Office

Office/Department Name

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 TOTAL

0100 0101 0102 0103 0104 0105 0106 0107 0108 0109 0110 0111 0112 0113 0114 0115 0116 General Fund

2000 TOTAL

0200 Road Fund

County Road

3000 TOTAL

0103 Treasurer's Automation

Treasurer

3001 TOTAL

0104 Collector's Automation

Tax Collector

Page | 44

Original Budget 140,950.00 250,400.00 120,950.00 100,500.00 125,000.00 450,750.00 25,500.00 35,000.00 127,450.00 75,200.00 25,350.00 45,500.00 20,000.00 15,150.00 32,850.00 68,000.00 5,000.00 1,663,550.00 1,950,000.00 1,950,000.00 34,435.00 34,435.00 94,500.00 94,500.00

YTD Transfer/

Appropration (500.00) 500.00 -

Budget Amount

YTD Expenditures Expenditures

Current Month

YTD Balance

140,450.00 250,400.00 121,450.00 100,500.00 125,000.00 450,750.00 25,500.00 35,000.00 127,450.00 75,200.00 25,350.00 45,500.00 20,000.00 15,150.00 32,850.00 68,000.00 5,000.00 1,663,550.00

6,125.00 850.00 350.00 230.00 495.00 600.00 43.00 43.00 8,736.00 750.00 1,525.00 42.00 1,262.50 10.00 1,314.50 350.00 22,726.00

73,495.00 10,000.00 5,300.00 1,400.00 150.00 5,950.00 7,500.00 350.00 475.00 104,620.00 9,550.00 18,750.00 420.00 1,125.00 50.00 1,595.00 2,150.00 242,880.00

1,975,000.00 1,975,000.00

355,750.00 355,750.00

1,175,000.00 1,175,000.00

800,000.00 800,000.00

34,435.00 34,435.00

950.00 950.00

2,550.00 2,550.00

31,885.00 31,885.00

94,500.00 94,500.00

1,550.00 1,550.00

35,750.00 35,750.00

58,750.00 58,750.00

25,000.00 25,000.00

66,955.00 240,400.00 116,150.00 99,100.00 124,850.00 444,800.00 18,000.00 34,650.00 126,975.00 (29,420.00) 15,800.00 26,750.00 19,580.00 14,025.00 32,800.00 66,405.00 2,850.00 1,420,670.00

SUMMARY OF EXPENDITURES The Summary of Expenditures is designed to summarize expenditures by major function for each of the funds within the various fund groupings.

Page | 45

COUNTY NAME SUMMARY OF EXPENDITURES BY FUND GROUP FUND GROUP: GENERAL FYE 12/31/2010

Fund

General Government

1000 1001 1002

1,508,950.06 55,000.00 15,750.00

Total

1,579,700.06

Page | 46

Highway & Streets

Health

Law Enforcement

Public Safety

Recreation and Culture Sanitation

Social Services

8,295.81

73,725.25

2,874,509.10

65,591.65

32,159.20

23,482.75

45,508.70

4,321.50

7,583.45

25,637.18

3,984.83

2,278.43

3,618.34

5,521.47

12,617.31

81,308.70

2,900,146.28

69,576.48

34,437.63

27,101.09

51,030.17

Airport

Transfers Out

Total

100,000.00

4,733,222.52 56,001.00 69,697.20

100,000.00

4,858,920.72

PROJECTED REVENUE DETAIL REPORT The accompanying Projected Revenue Detail Report provides a means of presenting, on a monthly basis, a comparison of actual revenues received to revenues projected at the account level for the County’s operating funds for which the Quorum Court has budgetary responsibility. The responsibility for preparing the Projected Revenue Detail Report rests with the County Treasurer and is greatly facilitated by the coding of revenues in the Treasurer’s office, as discussed in another section of this manual.

Page | 47

COUNTY NAME PROJECTED REVENUE DETAIL YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group

General General General General General General General General General General General General General General General

General General General General General General General General Page | 48 General General

Fund

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Account

Account Description

Current Prior Year

7000 SERIES - STATE AID 7001 General Revenue Turnback 7002 Highway Revenue Turnback 7003 Property Reappraisal 7004 Property Relief Trust Funds 7005 Real Estate Transfer Tax Surplus 7006 Severance Taxes 7007 State Disaster Relief 7008 Library State Aid 7009 Ark Game & Fish, Act 799 of 2003 7010 State Grants 7011 Act 833 Fire Protection 7012 Boating Safety - State 7013 Other State Aid 7014 Highway Revenue Turnback County Matching Advance Revenue 7015 Highway Revenue Turnback County Matching Advance Disbursem*nt

7100 SERIES - FEDERAL AID 7101 Federal Flood Control 7102 Federal Forest Reserves 7103 Community Development Block Grant 7104 F E M A Disaster Relief 7105 Homeland Security Grant 7106 Military Land Mineral Lease 7107 Nonmilitary Land Mineral Lease 7108 Library Federal Aid 7109 Other Federal Grants 7110 Bureau of Land Management Payment in Lieu of Tax

Month %

Projected

Year To Date % Projected

Current Prior Year

COUNTY NAME PROJECTED REVENUE DETAIL YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group

General General General General General General General General General General General

General

General General General General General General General

General

Page | 49

Fund

Account

Account Description

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

7200 SERIES - PROPERTY TAXES 7201 Local Property Taxes - Current 7202 Local Property Taxes - Del. Real Estate 7203 Local Property Taxes - Del. Personal 7204 Local Property Taxes - Del. Improv. Dist. 7205 Local Property Taxes - Penalty Del. Real Estate. 7206 Local Property Taxes - Penalty Del. Personal 7207 Local Property Taxes - Cost On Del. Real Estate 7208 Local Property Taxes - Cost On Del. Personal 7209 Local Property Taxes - Cost on Del. Improv. Dist. 7210 State Land Sales 7211 In Lieu Of Property Tax

1000

7300 SERIES - SALES TAXES 7301 Local Taxes - Sales Tax

1000 1000 1000 1000 1000 1000 1000

7400 SERIES - FINES, FORFEITURES, AND COSTS 7401 Circuit Court Fines and Forfeitures 7402 District Court Fines and Forfeitures 7403 Juvenile Court Costs and Fines 7404 County Administration of Justice 7405 Public Defender 7406 Prosecuting Attorney's Court Costs 7407 Other Fines and Forfeitures

1000

7500 SERIES - INVESTMENT INCOME 7501 Interest Income

Current

Prior Year

Month %

Projected

Current

Year To Date Prior Year % Projected

COUNTY NAME PROJECTED REVENUE DETAIL YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group

Fund

Account

Account Description

General General General General General General

1000 1000 1000 1000 1000 1000

7600 SERIES - OFFICERS' FEES 7601 County and Probate Clerk's Fees 7602 Circuit and Chancery Clerk's Fees 7603 Sheriff's Fees 7604 Child Support Fees and Costs 7605 Juvenile Probation Fees 7606 Misc. Charges and Fees

General

1000

7700 SERIES - 911 FEES 7701 911 Fees

General General

1000 1000

7800 SERIES - JAIL FEES 7801 Jail Fees 7802 Prisoner Care Reimbursem*nts

General General General

1000 1000 1000

7900 SERIES - SANITATION FEES 7901 Landfill Fees 7902 Solid Waste Fees 7903 Recycling Sales & Fees

General

1000

8000 SERIES - AMBULANCE FEES 8001 Ambulance Service Fees

Page | 50

Current Prior Year

Month %

Projected

Year To Date Current Prior Year % Projected

PROJECTED REVENUE SUMMARY REPORT The accompanying Projected Revenue Summary Report provides a means of presenting, on a monthly basis, a comparison of actual revenues received to revenues projected, summarized at the fund level for the county operating funds for which the Quorum Court has budgetary responsibility. The responsibility for preparing the Projected Revenue Summary Report rests with the County Treasurer.

Page | 51

COUNTY NAME PROJECTED REVENUE SUMMARY YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group General General General General General

Fund 1000 1001 1002 1003 1900

Fund Name General Fund General Reserve Fund Employee Insurance Fund Investment Fund Grants - General Fund Total General Funds

Road Road Road Road

2000 2001 2002 2900

Road Fund Road Investment Fund Road Reserve Depreciation Fund Grants - Road Fund Total Road Funds

Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev Spec Rev

3000 3001 3002 3003 3004 3005 3006 3007 3008 3009 3010 3011 3012 3013 3014 3015

Treasurer's Automation Fund Collector's Automation Fund Circuit Court Automation Fund District Court Automation Fund Assessor's Amendment No. 79 Fund County Clerk's Cost Fund Recorder's Cost Fund Sheriff's Automation Fund County Library Fund Solid Waste Fund County Clerk Operating Fund Reappraisal Cost Fund Child Support Cost Fund Game and Fish Education Fund Communication Facility and Equipment Fund Drug Control Fund

Page | 52

Month % Current Prior Year

Projected

Year To Date Current Prior Year % Projected

COUNTY NAME PROJECTED REVENUE SUMMARY YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group

Fund

Spec Rev (Continued) Spec Rev 3016 3017 Spec Rev Spec Rev 3018 Spec Rev 3019 3020 Spec Rev 3021 Spec Rev 3022 Spec Rev 3023 Spec Rev Spec Rev 3024 Spec Rev 3025 Spec Rev 3026 Spec Rev 3027 Spec Rev 3028 Spec Rev 3029 Spec Rev 3030 Spec Rev 3031 Spec Rev 3032 Spec Rev 3033 Spec Rev 3034 Spec Rev 3035 Spec Rev 3036 Spec Rev 3037 Spec Rev 3500

Page | 53

Fund Name

Breathalyzer Fund Jail Operation and Maintenance Fund County Detention Facility Fund Boating Safety Fund Emergency 911 Fund Emergency Medical Services Fund Emergency Vehicle Fund Fire Equipment and Training (Act 833) Fund Public Defender Fund Victim Witness Fund Indigent Criminal Defense Fund District Court Probation Fund Adult Drug Court Fund Child Passenger Protection Fund Youth Accident Prevention Program (YAPP) Court Cost Fund Juvenile Probation Fee Fund Juvenile Court Representation Fund Solid Waste Reserve Depreciation Fund Cops In Schools Fund Criminal Justice Fund Recycling Fund County Airport Fund Grants - Special Revenue Funds Total Special Revenue Funds

Current Prior Year

Month %

Projected

Year To Date Projected Current Prior Year %

COUNTY NAME PROJECTED REVENUE SUMMARY YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group

Fund

Fund Name

Capital Capital

4000 Jail Construction Fund 4900 Grants - Capital Projects Funds Total Capital Projects Funds

Debt Debt

5000 Sales Tax Bond Fund 5900 Grants - Debt Service Funds Total Debt Service Funds Total All Funds

Page | 54

Current Prior Year

Month %

Projected

Year To Date Current Prior Year % Projected

TREASURER’S DETAIL OF ACCOUNT BALANCES The accompanying Treasurer’s Detail of Account Balances is prepared by the County Treasurer and provides a recap of the various types of receipts and disbursem*nts and the cash balances, on a monthly basis, for each of the fund/account(s) maintained in the Treasurer’s ledger. The preparation of the Treasurer’s Detail of Account Balances is expedited by the coding of revenues and disbursem*nts in the Treasurer’s office, as discussed in another section of this manual. A Treasurer’s Detail of Account Balances should also be prepared by the Treasurer at the end of the year, reflecting the cash balance at January 1, yearly totals for the various types of receipts and disbursem*nts, and the cash balance at December 31 for each fund/account in the Treasurer’s ledger.

Page | 55

COUNTY NAME TREASURER'S DETAIL OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING_______________________ PLUS Fund Group

General General General General General General General General General General General General General General General

General General General General General General General General General General

Page | 56

Fund

Account

Account Description Fund Balance - January 1

Beginning Balance

7000 SERIES - STATE AID 7001 General Revenue Turnback 7002 Highway Revenue Turnback 7003 Property Reappraisal 7004 Property Relief Trust Funds 7005 Real Estate Transfer Tax Surplus 7006 Severance Taxes 7007 State Disaster Relief 7008 Library State Aid 7009 Ark Game & Fish, Act 799 of 2003 7010 State Grants 7011 Act 833 Fire Protection 7012 Boating Safety - State 7013 Other State Aid 7014 Highway Revenue Turnback County Matching Advance Revenue 1000 7015 Highway Revenue Turnback County Matching Advance Disbursem*nt

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

Receipts

Voided Checks

Tax Commissions Transfers Transfers Earned

MINUS Tax Commissions Charged Warrants Transfers Transfers

Other Checks

Ending Balance

COUNTY NAME TREASURER'S DETAIL OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________ PLUS Fund Group

Fund Account

Account Description

General General General General General General General General General General General

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

7200 SERIES - PROPERTY TAXES 7201 Local Property Taxes - Current 7202 Local Property Taxes - Delinquent Real Estate 7203 Local Property Taxes - Delinquent Personal 7204 Local Property Taxes - Del. Improvement District 7205 Local Property Taxes - Penalty Del. Real Estate 7206 Local Property Taxes - Penalty Del. Personal 7207 Local Property Taxes - Cost On Del. Real Estate 7208 Local Property Taxes - Cost On Del. Personal 7209 Local Property Taxes - Cost on Del. Impr. Dist. 7210 State Land Sales 7211 In Lieu Of Property Tax

General

1000

7300 SERIES - SALES TAXES 7301 Local Taxes - Sales Tax

General General General General General General General

1000 1000 1000 1000 1000 1000 1000

7400 SERIES - FINES, FORFEITURES AND COSTS 7401 Circuit Court Fines and Forfeitures 7402 District Court Fines and Forfeitures 7403 Juvenile Court Costs and Fines 7404 County Administration of Justice 7405 Public Defender 7406 Prosecuting Attorney's Court Costs 7407 Other Fines and Forfeitures

General

1000

7500 SERIES - INVESTMENT INCOME 7501 Interest Income

General General General General General General

1000 1000 1000 1000 1000 1000

Page | 57

Beginning Balance

Receipts

Voided Checks

Transfers

Tax Commissions Transfers Earned

Warrants

Transfers

MINUS Tax Commissions Transfers Charged

Other Checks

Ending Balance

COUNTY NAME TREAS URER'S DETAIL OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________

Fund Group

Fund

Account

Account Description

Beginning Balance

Receipts

General

1000

7700 SERIES - 911 FEES 7701 911 Fees

General General

1000 1000

7800 SERIES - JAIL FEES 7801 Jail Fees 7802 Prisoner Care Reimbursem*nts

General General General

1000 1000 1000

7900 SERIES - SANITATION FEES 7901 Landfill Fees 7902 Solid Waste Fees 7903 Recycling Sales & Fees

General

1000

8000 SERIES - AM BULANCE FEES 8001 Ambulance Service Fees

General

1000

8100 SERIES - FRANCHISE FEES 8101 Franchise Fees

General

1000

8200 SERIES - HOSPITAL LEASE 8201 Hospital Lease

General

1000

8300 SERIES - INSURANCE PREM IUM S COLLECTED 8301 Insurance Premiums

General

1000

8400 SERIES - TREASURER'S COM M ISSION 8401 Treasurer's Commission

General

1000

8500 SERIES - COLLECTOR'S COM M ISSION 8501 Collector's Commission

General

1000

8600 SERIES - TAXES APPORTIONED - ASSESSOR'S SALARY AND EXPENSE 8601 Assessor Salary's And Expense

Page | 58

PLUS Voided Tax Commissions Earned Checks Transfers Transfers

MINUS Tax Commissions Other Warrants Transfers Transfers Charged Checks

Ending Balance

COUNTY NAME TREASURER'S DETAIL OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________ PLUS Fund Group

Fund

Account

Account Description

General General General General General General General General General General General General General General General General General General

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

8700 SERIES - OTHER 8701 Donations 8702 Excess Commission - Collector 8703 Excess Commission - Treasurer 8704 Excess Proceeds from Sales of Tax Del. Land 8705 Juvenile Transportation Fees 8706 Miscellaneous 8707 Reimbursem*nt - Office Emergency Services 8708 Reimbursem*nt - Phone Calls 8709 Reimbursem*nt - Veterans' Service Office 8710 Rent/Lease 8711 Sale of Equipment 8712 Sale of Materials 8713 Social Security Administration - Prisoner Fees 8714 Vending Machine Sales/Commission 8715 Workers Compensation Trust Dividend 8716 Reimbursem*nt - Corps of Engineers 8717 Reimbursem*nt - Social Services 8718 Insurance Proceeds

General General

1000 1000

8800 SERIES - TRANSFERS IN 8801 Transfer from County General 8802 Transfer from County Road

General General

1000 1000

8900 SERIES - TRANSFERS OUT 8901 Transfer to County General 8902 Transfer to County Road

Page | 59

Beginning Balance

Receipts

Voided Checks

Transfers

Tax Transfers

Commissions Earned

Warrants

Transfers

MINUS Tax Commissions Transfers Charged

Other Checks

Ending Balance

COUNTY NAME TREAS URER'S DETAIL OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________ PLUS Fund Group

Fund

General General General General General General General General General General

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

9000 SERIES - UNAPPORTIONED TAXES RECEIVED 9001 Unap p ortioned Taxes Received - Current Taxes 9002 Unap p ortioned Taxes Received - Del. Personal Taxes 9003 Unap p ortioned Taxes Received - Del. Real Estate Taxes 9004 Unap p ortioned Taxes Received - Del. Real Estate Penalities 9005 State Land Redemp tion Proceeds Received 9006 State Land Sales Proceeds Received 9007 Delinquent Imp rovement Taxes Received 9008 Local Sales Taxes Received 9009 Interest Income Received 9010 Severance Taxes Received

General General General General General General General General General General

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000

9100 SERIES - UNAPPORTIONED TAXES DISTRIBUTED 9101 Current Taxes Ap p ortioned 9102 Delinquent Personal Taxes Ap p ortioned 9103 Delinquent Real Estate Taxes Ap p ortioned 9104 Delinquent Real Estate Penalties Distributed 9105 State Land Redemp tion Proceeds Distributed 9106 State Land Sales Proceeds Distributed 9107 Delinquent Imp rovement Taxes Distributed 9108 Local Sales Taxes Distributed 9109 Interest Income Distributed 9110 Severance Taxes Distributed

General General General General

1000 1000 1000 1000

9200 SERIES - OTHER FINANCING SOURCES 9201 Bond Proceeds 9202 Loan Proceeds 9203 Audit Adjustment Due Accounts 9204 Audit Adjustment From Accounts

General General General General General

1000 1000 1000 1000 1000

9900 SERIES - CHECKS/WARRANTS 9900 Pay roll Checks Paid 9901 Warrants Paid 9902 Other Checks Paid 9903 Court Orders Paid 9904 Commissions Charged

Page | 60

Account

Account Description

Beginning Balance

Receipts

Voided Checks

Transfers

Tax Transfers

Commissions Earned

MINUS Tax Commissions Warrants Transfers Transfers Charged

Other Checks

Ending Balance

TREASURER’S SUMMARY OF ACCOUNT BALANCES The accompanying Treasurer’s Summary of Account Balances is prepared by the County Treasurer and provides a concise recap of the various types of receipts and disbursem*nts and the cash balances, on a monthly basis, for each of the fund/account(s) maintained in the Treasurer’s ledger. A Treasurer’s Summary of Account Balances should also be prepared by the Treasurer at the end of the year to reflect the cash balance at January 1, yearly totals for the various types of receipts and disbursem*nts, and the cash balance at December 31 for each fund/account in the Treasurer’s ledger.

Page | 61

COUNTY NAME TREASURER'S SUMMARY OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________ PLUS Fund Group General General General General General

Fund 1000 1001 1002 1003 1900

Road Road Road Road

2000 2001 2002 2900

Road Fund Road Investment Fund Road Reserve Depreciation Fund Grants - Road Fund Total Road Funds

3000 3001 3002 3003 3004 3005 3006 3007 3008 3009 3010 3011 3012 3013 3014 3015 3016 3017 3018 3019 3020 3021

Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec

Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev

Page | 62

Fund Name General Fund General Reserve Fund Employee Insurance Fund Investment Fund Grants - General Fund Total General Funds

Beginning Balance

Receipts

Voided Checks

Transfers

Tax Transfers

Commissions Earned

Warrants

Transfers

MINUS Tax Commissions Transfers Charged

Other Checks

Ending Balance

COUNTY NAME TREASURER'S SUMMARY OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________ PLUS Fund Group Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec Spec

Fund

Rev (Continued) Rev 3022 Rev 3023 Rev 3024 Rev 3025 Rev 3026 Rev 3027 Rev 3028 Rev 3029 Rev 3030 Rev 3031 Rev 3032 Rev 3033 Rev 3034 Rev 3035 Rev 3036 Rev 3037 Rev 3500

Fund Name

Emergency Vehicle Fund Fire Equipment and Training (Act 833) Fund Public Defender Fund Victim Witness Fund Indigent Criminal Defense Fund District Court Probation Fund Adult Drug Court Fund Child Passenger Protection Fund Youth Accident Prevention Program (YAPP) Court Cost Fund Juvenile Probation Fee Fund Juvenile Court Representation Fund Solid Waste Reserve Depreciation Fund Cops In Schools Fund Criminal Justice Fund Recycling Fund County Airport Fund Grants - Special Revenue Funds Total Special Revenue Funds

Capital Capital

4000 4900

Jail Construction Fund Grants - Capital Projects Funds Total Capital Projects Funds

Debt Debt

5000 5900

Sales Tax Bond Fund Grants - Debt Service Funds Total Debt Service Funds

Page | 63

Beginning Balance

Receipts

Voided Checks

Transfers

Tax Transfers

Commissions Earned

Warrants

Transfers

MINUS Tax Commissions Transfers Charged

Other Checks

Ending Balance

COUNTY NAME TREASURER'S SUMMARY OF ACCOUNT BALANCES YEAR TO DATE FOR MONTH ENDING _______________________ PLUS Fund Group Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency Agency

Fund 6000 6001 6002 6003 6004 6005 6006 6007 6008 6009 6010 6011 6012 6013 6014 6015 6500 6600 6700 6800

Fund Name

Treasurer's Commission Fund Collector's Commission Fund Collector's Unapportioned Fund Property Tax Relief Fund (Amendment No. 79 Sales Tax) Delinquent Personal Tax Fund Delinquent Real Estate Tax Fund Timber Tax Fund State Land Redemption Fund State Land Sales Fund Law Library Fund Administration of Justice Fund Interest Fund Game and Fish Commission Fund Common School Fund Unapportioned School Fund Fair Association Fund Fire Districts Funds Cities Funds Schools Funds Improvement Districts Funds Total Agency Funds Total All Funds

Page | 64

Beginning Balance

Receipts

Voided Checks

Transfers

Tax Transfers

Commissions Earned

Warrants

Transfers

MINUS Tax Commissions Transfers Charged

Other Checks

Ending Balance

OTHER GENERAL INFORMATION This section of the manual discusses broad areas not specifically addressed in the various sections of the manual but of general interest in the overall implementation of the financial management system. These broad areas of interest are as follows: (1) Clearing Accounts – County Revenue Codes, (2) Coding of Expenditures, (3) Multiple Distribution of Account Codes – Expenditures, (4) Reconciliation of Expenditures – Clerk’s and Treasurer’s Records, (5) Allocation of Expenses Among Offices/Departments, (6) Accounting For Salaries and Wages, (7) Court Orders, (8) County Matching Advance – Highway Turnback, (9) Appropriation Ordinance, (10) Appropriation of County Funds, and (11) Accounts Payable. In addressing these broad areas of interest, it is recognized that different approaches may be utilized to arrive at the same objectives. For example, the illustrated Appropriation Ordinance is a sample ordinance for appropriations but is by no means intended to be the only format in which appropriations can be enacted by the Quorum Court. Rather, it is to be used as a guide only, with whatever type of appropriation ordinance being enacted to be in conformance with applicable state laws.

CLEARING ACCOUNTS – COUNTY REVENUE CODES The accompanying County Revenue Codes Chart presents a “9000” series – Unapportioned Taxes Received, which is used to provide an accounting for taxes and other types of revenue that are usually receipted into one account/fund in the Treasurer’s ledger and subsequently apportioned, distributed, etc., to another account(s)/fund(s) in the Treasurer’s ledger. When revenues of this type are received by the County Treasurer, the code in the “9000” series that specifically identifies the revenue should be entered on the receipt and posted to the specific account/fund in the Treasurer’s ledger, with the account code also being entered in the specific account/fund in the ledger. Based upon an apportionment, distribution, etc., the County Treasurer will use one of the disbursem*nt account codes in the “9100” series – Unapportioned Taxes Distributed to code the disbursem*nt of the specific revenue to the specific fund(s)/account(s) receiving such revenue. Upon the disbursem*nt of the revenue to the specific fund(s)/account(s), it will also be necessary for the “7200” series – Property Taxes to be utilized to code specific revenue to the specific fund(s)/account(s) receiving such revenue.

CODING OF EXPENDITURES State law provides that an itemized listing or numbered invoice from a vendor may be designated as supporting documentation for a claim filed against the County and further provides that the appropriate county elected official, or his/her designated representative, may approve such itemized listing or numbered invoice for payment prior to the claim being filed and docketed with the County Clerk. In light of these provisions and with the idea of promoting sound financial management of county expenditures, this manual advocates having each county elected official, or his/her designated representative, indicate the account code on the appropriate itemized listing or numbered invoice in support of expenditures made on behalf of the office or department when he/she approves such document(s) for payment. This procedure requires that each county elected official, or his/her designated representative, become familiar with the respective office or departmental code and the county expenditure codes to be utilized in coding expenditures of his/her office. When the County Clerk’s office receives the itemized listings or numbered invoices from the various offices and departments, the account codings should be reviewed to ensure a degree of uniformity and continuity among the several offices’ and departments’ expenditures. Any differences of opinion in the coding of expenditures should be discussed with the appropriate personnel in the specific county office or department affected and should not be arbitrarily changed in the County Clerk’s office.

To facilitate the entering of claims in the County Court Claims Docket/Warrant and Transfer Register, the County Clerk’s office should indicate the account coding on the outside of the

Page | 65

claim form itself to make it readily identifiable for subsequent posting to the County Court Claims Docket/Warrant and Transfer Register.

MULTIPLE DISTRIBUTION OF ACCOUNT CODES – EXPENDITURES When the County receives a billing or invoice representing a charge or charges to more than one office or department, such an expenditure would be coded to reflect that each office or department is being charged its pro rata share of such expenditure. Accordingly, on the County Court Claims Docket/Warrant and Transfer Register, each separate account code representing each office’s or department’s pro rata share of expenditure would be reflected with only a single warrant or check/warrant being issued in payment of the obligation. This normally requires that each component part of the expenditure, as evidenced by each separate and distinct account code, be individually entered in the County Court Claims Docket/Warrant and Transfer Register for posting to the individual Appropriations Journal maintained for each office or department.

RECONCILIATION OF EXPENDITURES – CLERK’S AND TREASURER’S RECORDS As the County Clerk maintains the County Court Claims Docket/Warrant and Transfer Register and supporting records, it is imperative that the warrants or check/warrants evidencing these expenditures as recorded in the Claims Docket/Warrant and Transfer Register be reconciled with the warrants or check/warrants redeemed by the Treasurer, who acts as the financial custodian of county funds. This reconciliation is necessary to substantiate the recorded expenditures – by warrant or check/warrant – of county funds between the Clerk’s records and the Treasurer’s records and to determine the Treasurer’s cash balance for each operating fund based on the warrants or check/warrants issued and redeemed.

ALLOCATION OF EXPENSES AMONG OFFICES/DEPARTMENTS One of the key concepts inherent in the County Financial Management System, as outlined in the manual, is the development and control of line item budgets on an office/department basis. The lack of accounting for and controlling of costs at the office/departmental level can be very misleading when trying to determine the actual costs of certain activities in county government and could also cause the County to absorb certain costs and expenses that can be properly allocated to other taxing units as an operating cost. Accordingly, an office/departmental approach in both the budgeting and accounting components of the system is very evident in this manual. This approach will require the allocation or prorating of certain expenses among various offices and departments. An example would be the allocation or prorating of expenses associated with utilities consumed by the various county offices and departments. Under normal circ*mstances, it is necessary to allocate the costs or expenses relating to electricity, gas, water, etc., that are usually billed to the County as a single entity and not to the individual county offices and departments. To the extent feasible and practical, these expenses should be allocated or charged to the offices and departments utilizing them on some sort of reasonable and equitable basis. For example, one basis for allocating these utility costs might be the floor space utilized by the various offices and departments, with any floor space not utilized by a county office or department being absorbed by the Courthouse Maintenance Department. Once a method of allocation is determined and a percentage distribution is computed, it becomes a relatively minor procedure to apply this percentage distribution to the applicable billings and thereby allocate these expenses when they are entered in the County Court Claims Docket/Warrant and Transfer Register. Unless there is a material change in the amount of floor space utilized by a county office or department, the percentage distribution should remain constant from month to month, and the allocation of the affected expenses should become a routine procedure. A simple example and illustration concerning the allocation or prorating of utilities expense is as follows:

Page | 66

County Office/Department County Judge County Clerk Circuit Clerk Treasurer Sheriff Tax Collector Tax Assessor Circuit Court Chancery Court District Court County Jail Courthouse Maintenance TOTALS

Floor Space Used - Sq. Ft. 540 1,620 1,080 360 900 1,080 1,080 2,000 2,000 1,500 3,500 6,000 * 21,660

Percentage Distribution 2.5 % 7.5 5.0 1.67 4.16 5.0 5.0 9.23 9.23 6.92 16.16 27.62 100 %

* Represents square footage of Courthouse not utilized by the various offices and departments, which is allocated to Courthouse Maintenance.

Using the foregoing tabulation of floor space expressed in square footage with a percentage distribution as indicated, utilities billed as a single entity would be broken down and allocated to the various offices and departments when they are entered in the County Court Claims Docket/Warrant and Transfer Register. Once a method allocating or prorating expenses has been determined, the same method should be used in developing budgets for the various offices and departments in budgeting utilities on an office/departmental basis. This same approach, or a similar one, could be utilized in allocating or prorating expenses other than utilities on an office/departmental basis. Examples of these might be janitorial supplies, property insurance premiums on the Courthouse, etc. In addition to providing a better and more proper accounting of operating costs at the office/departmental level, the allocation of expenses, particularly in the offices of Assessor, Tax Collector, and County Treasurer, can provide some monetary relief in the operations of the County to the extent that all of the taxing units share in the cost of operating these particular offices.

Page | 67

ACCOUNTING FOR SALARIES AND WAGES Salaries represent a unique type of expenditure to be recorded in the County Court Claims Docket/Warrant and Transfer Register because salary is composed of two primary components: (1) the net amount of the salary, which is paid to the official/employee, and (2) the various withholding amounts (e.g., federal income tax, state income tax, social security, etc.) that comprise part of the gross salary but are remitted to some party (IRS, DFA, etc.) other than the official/employee. Since the County Court Claims Docket/Warrant and Transfer Register has been designed to consolidate the Claims Docket and Warrant Register into one record, with the amount of the claim/warrant representing the net amount of each expenditure subsequently being posted to an Appropriations Journal, a salary claim, which has two primary components, represents a unique type of expenditure in the recording and payment thereof. With the foregoing in mind, the various codes required to enter the transaction for an approved salary claim for $1,000 in the County General Fund – County Court Claims Docket/Warrant and Transfer Register are illustrated in the accompanying County Court Claims Docket/Warrant and Transfer Register, with the related withholdings (and matching social security) being entered at the same time. In the example shown, the “0100” represents the County Judge’s office code, and the “1001” represents the expenditure code for Salaries, Full-Time; the two codes utilized together result in account code “0100-1001.” When the amount of each claim/warrant comprising the $1,000 gross salary (for the account code “0100-1001”) is posted to the Appropriations Journal for the County Judge’s office – Personal Services, Salaries, Full-Time, (account code “0100-1001”) – $879.25 Net Salary, $90 Federal Withholding, $24 State Withholding, and $6.75 Social Security Withholding – then the cumulative postings to this account code would total $1,000, which is the gross salary claim. A detailed individual employee earnings records that would contain columns for gross salary, withheld amounts, net salary, and warrant or check/warrant number evidencing payment of the net salary would be maintained for each official/employee by office/department. The gross salaries on these individual employee earnings records, when added together, should agree with the gross salaries as shown under that office/department expenditure category “Personal Services” with respect to dollar amount and types of salaries (e.g., full-time, part-time, etc.). Since the warrant or check/warrant for paying the social security taxes includes the matching social security taxes, the matching portion would be coded as “0100-1006,” which is the code for matching social security taxes in the County Judge’s office. Although each official/employee receiving a salary could have a separate claim due to a warrant or check/warrant being issued for the net salary, the possibility exists that the same types of withholdings – federal income tax, state income tax, social security, etc. – and their related matching amounts (if applicable) could be entered on separate claims, by types of withholdings (and related matching), with appropriate account codes distributing the various amounts among the several offices/departments. One example of this type of coding would be where a single claim for federal income tax of $978 is presented and approved, whereby the federal income tax has been withheld from several different employees in various offices/departments. A warrant or check/warrant would be issued payable to the IRS, with the face of the claim showing the following account codes and amounts: “0100-1001” – $126, “0200-1001” – $134, “0300-1001” – $164, “0400-1001” – $86, and “05001001” – $468. Additionally, the same account codes would be entered in the docket.

COURT ORDERS All Court Orders are filed in the County Clerk’s office and numbered consecutively, beginning with the year of issuance and the number 1, such as “2010-1,” “2010-2,” etc. A copy of all Court Orders pertaining to financial matters, such as transfers, advance transfer requests, etc., are made and filed with a copy of the original appropriation ordinance(s) and all amendments thereto.

Page | 68

COUNTY MATCHING ADVANCE – HIGHWAY TURNBACK State law provides that monies in the County Road Construction and Maintenance Revolving Fund shall be available to the Chief Fiscal Officer of the State only for the purposes of making advance transfers to the several County Highway Funds, State Aid Road Funds, etc., with a County Court Order evidencing said Advance Transfer Request to be filed with and approved by the Chief Fiscal Officer of the State. The primary purpose of the advance transfer is to provide funds for contractual documentation or grant-in-aid award documentation for county road construction and maintenance. Once the transfer request is approved, DFA prepares a repayment schedule showing how much is withheld from the county special (Highway) turnback each month until the advance transfer request amount is satisfied. For purposes of recording the revenues and expenditures associated with County Matching Advance, it is necessary to advance the DFA repayment schedule forward one month because of the time lag between the date the monthly turnback is computed and the month the County actually receives the monthly turnback. For example, the monthly turnback for December 2010 state aid is actually processed as the County’s January 2011 voucher and, therefore, is received by the County in January 2011. The accounting transaction to record County Matching Advance revenue and expenditure would be as follows: A. County Clerk recording monthly expenditure of $6,153.17 in County Road Claims Docket/Warrant and Transfer Register and supporting records would enter the following account number in the docket: 0200-4007. B. County Treasurer recording monthly revenue of $6,153.17 would enter the following entity code and revenue and expenditure codes in the Treasurer’s ledger: 1. Revenue 2. Disbursem*nt

2000-7014 2000-7015

$6,153.17 $6,153.17

Since the Advance Transfer Request is to be evidenced by a County Court Order, duly filed and recorded with the County Clerk, then the authority for the accounting transactions for County Matching Advance is based on this Court Order and, thus, is similar to those types of transactions involving transfers out, where the authority for the accounting transaction also lies with a Court Order. Additionally, the monthly recording of the County Matching Advance would be a reconciling item in the monthly reconciliation between the County Court Claims Docket/Warrant and Transfer Register with the Treasurer’s records with regard to warrants or check/warrants issued and redeemed since no warrant or check/warrant is issued for the (expenditure of) County Matching Advance. As the accounting transaction for County Matching Advance is a book entry only, it has no effect on the cash balance of the County Road Fund in the Treasurer’s records because the revenue item of $6,153.17 is offset by the disbursem*nt item of $6,153.17.

Page | 69

APPROPRIATION ORDINANCE NO. BE IT ENACTED BY THE QUORUM COURT OF THE COUNTY OF __________ STATE OF ARKANSAS, AN ORDINANCE TO BE ENTITLED: “AN ORDINANCE TO ESTABLISH THE ANNUAL OPERATING BUDGET FOR CALENDAR YEAR 20 .”

SECTION 1. ANNUAL BUDGET ADOPTED BY REFERENCE. The annual budget for calendar year 20 identified as “20 Annual Budget, County, Arkansas” dated , 20 is hereby adopted by reference. A copy of said budget shall be filed in the Office of the County Clerk and shall be available for inspection and copying by any person during normal office hours. SECTION 2. NONRESTRICTED EXPENDITURE CATEGORIES. Expenditure of funds appropriated by this Ordinance shall not be restricted to the line item expenditure codes comprising the major categories of expenditures - Personal Services, Supplies, Other Services and Charges, Capital Outlay, and Debt Service - but shall be restricted to office/departmental expenditures within the above enumerated major categories of expenditures except for funds appropriated for personnel salaries and wages and related employee benefits. Personnel expenditures shall not exceed the dollar amounts, number of employees, and salary or wage rates specified in the annual budget or an amendment thereto. SECTION 3. EXPENDITURES RESTRICTED TO SPECIFIED FUND. No expenditure of appropriated funds shall be made from any fund other than the fund specified in this Ordinance, or an amendment thereto. SECTION 4. TRANSFERS. Any transfers of monies between the various funds of the County or between the major categories of expenditures - Personal Services, Supplies, Other Services and Charges, Capital Outlay, and Debt Service - shall be made only with prior approval of the County Quorum Court. Provided, however, all transfers budgeted for in the annual budget shall be exempt from the provisions of this section. SECTION 5. MAXIMUM APPROPRIATED AMOUNTS. A. GENERAL FUND. Total projected General Fund revenues are $ Office/Department

Amount

County Judge’s Office

County Clerk’s Office (All offices/departments for which appropriations are made would be listed here.) TOTAL

B. ROAD FUND. Total projected Road Fund revenues are $ 1.

Personal Services

Supplies

Other Services and Charges

Capital Outlay

Debt Service TOTAL

Page | 70

APPROPRIATION ORDINANCE NO. “AN ORDINANCE TO ESTABLISH THE ANNUAL OPERATING BUDGET FOR CALENDAR YEAR 20 .” (CONTINUED)

SECTION 6. SEVERABILITY. If any provision of this Ordinance or the application thereof to any person or circ*mstance is held invalid, such invalidity shall not affect other provisions or applications of the Ordinance which can be given effect without the invalid provisions or application, and to this end, the provisions of this Ordinance are declared to be severable. SECTION 7. This Ordinance being necessary for the protection and preservation of public health and safety, an emergency is hereby declared to exist and this Ordinance shall be in force and shall take effect upon passage and publication. Dated: ATTEST:

Dated: APPROVED: County Clerk

County Judge

Notes: 1. A copy of the original Appropriation Ordinance(s) and all amendments thereto should be made and filed separate from other Ordinances in the County Clerk’s office.

Page | 71

All County funds requiring appropriations are to be contained in an Appropriation Ordinance.

Either a separate Ordinance authorizing salaries and wages should be enacted or the necessary information pertaining to officials, number of employees and compensation should be incorporated in the Appropriation Ordinance.

APPROPRIATION OF COUNTY FUNDS State law currently provides for the Quorum Court to appropriate public funds for county expenses in a manner prescribed by ordinance. However, state law also provides that “the County Judge as the Chief Executive Officer . . . may apply for, enter into necessary contracts, receive and administer for and in behalf of the county, subject to such appropriation controls that the Quorum Court may elect to adopt by Ordinance, funds from the Federal Government, from other public agencies or private sources.” Since the propriety of expenditures of county funds ultimately lies with the county government entity itself, this manual advocates that any expenditure of public funds be based upon authority of appropriations duly enacted by the Quorum Court.

ACCOUNTS PAYABLE Those obligations incurred by a county on or before year-end that are not issued a claim until the next year (accounts payable) should be posted to the prior-year Appropriations Journal to ensure that the proper year’s appropriation is charged with such obligations.

Page | 72

[PDF] COUNTY FINANCIAL MANAGEMENT SYSTEM MANUAL - Free Download PDF (2024)

References