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Bill

HB 1311

TO DIRECT THE LEGISLATIVE AUDITOR TO DEVELOP A COMPREHENSIVE FINANCIAL MANAGEMENT SYSTEM FOR APPROPRIATED FUNDS OF CITIES OF THE SECOND CLASS AND INCORPORATED TOWNS.

2025 Regular Session Introduced by Robin Lundstrum and 1 co-sponsor

House Bill 1311 establishes a uniform financial management system for Arkansas cities, enhancing transparency and accountability in local government budgeting and reporting.

Notification that HB1311 is now Act 111
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WeVote Research Nonpartisan
Bill Summary · HB 1311

Summary of House Bill 1311 (HB 1311)

Purpose and Intent

House Bill 1311, now known as Act 111, aims to enhance financial management practices for cities of the second class and incorporated towns in Arkansas. The bill directs the Legislative Auditor to develop a comprehensive financial management system, referred to as the "uniform chart of accounts," specifically for managing appropriated funds. This initiative is intended to improve transparency, accountability, and efficiency in financial reporting and budgeting for local governments.

Key Provisions

The bill includes several important provisions:

  1. Development of a Uniform Chart of Accounts:

    • The Legislative Auditor is tasked with creating a standardized financial management system that includes a uniform account coding structure for revenues, expenditures, and balances.
    • This system will provide essential financial information to mayors, councils, and relevant departments within cities and towns.

  2. Detailed Financial Reporting:

    • The uniform chart of accounts will classify the receipt and disbursement of funds according to their purpose and object, ensuring detailed itemization of expenditures.
    • This classification will facilitate analysis of operations across various offices and departments, promoting better financial oversight.

  3. Implementation Timeline:

    • The Legislative Auditor is required to develop and complete the implementation of the uniform chart of accounts within 36 months of the act's effective date.

Impact

  • Affected Entities: The bill primarily impacts cities of the second class and incorporated towns in Arkansas, along with their financial officers and departments.
  • Improved Financial Management: By standardizing financial reporting, the bill aims to enhance the ability of local governments to manage their finances effectively, leading to better decision-making and resource allocation.
  • Increased Transparency: The detailed reporting requirements are expected to foster greater transparency in how public funds are managed and spent, which can enhance public trust in local government operations.

Legislative Actions

  • Introduced: January 29, 2025
  • Passed: The bill was read and passed multiple times in both the House and Senate, with the final notification of its enactment occurring on February 18, 2025.

Conclusion

HB 1311 represents a significant step towards improving financial management practices for local governments in Arkansas. By establishing a uniform chart of accounts, the bill seeks to provide a framework for better financial oversight and accountability, ultimately benefiting the communities served by these local governments.

Compiled from official sources — confirm details with the bill’s official record.

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