006.09.1 R1-19-4-518. General Ledger Chart of Accounts
AR ADC 006.09.1 R1-19-4-518Arkansas Administrative Code
Ark. Admin. Code 006.09.1 R1-19-4-518
006.09.1 R1-19-4-518. General Ledger Chart of Accounts
The Financial Management System General Ledger Chart of Accounts contains the asset, liability, fund equity, revenue, expense, operating transfer, other financing sources/uses and prior period adjustment accounts necessary for operating purposes and financial statement presentation for the State of Arkansas. These accounts record the dollar value of the business transactions completed by State agencies.
The general ledger accounts are generic in nature and are established and titled for use by all State agencies. The general ledger accounts will not be set up to record specific transactions of an individual agency unless extraordinary circumstances justify the request.
The following is a general discussion concerning general ledger accounts, their characteristics and purposes. Procedures related to uses for specific transactions are located in other sections of this Guide. Types of General Ledger Accounts:
Asset Accounts
Assets are a probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events. These economic resources can be tangible or intangible.
Assets are recorded in the general ledger account number range 1000000000 to 1999999999.
Asset accounts may have budget relevant commitment items.
Run AASIS report S_KI4_38000036 to obtain the commitment item for all accounts.
Liability Accounts
Liabilities are probable future sacrifices of economic benefits, arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. The term does not include encumbrances.
Liabilities are recorded in the general ledger account number range 2000000000 to 2999999999.
The commitment items for all liability accounts are non-budget relevant, also referred to as statistical One exception to the statistical posting is on the sales/use tax liability, which is non-statistical.
Fund Equity Accounts
Equity accounts are the difference between a fund's assets and liabilities. In governmental funds, it is referred to as fund balance.
Fund equity is recorded in the general ledger account number range 3000000000 through 3999999999.
The commitment items for all fund equity accounts are non-budget relevant, also referred to as statistical.
Revenue Accounts
Revenues are inflows or other enhancements of assets during a period from delivering or producing goods, rendering services or carrying out other activities that constitute an agency's operations. Revenues are recognized in the accounting period in which they become measurable and available for modified accrual and when they become measurable and earned for full accrual Moneys receipted should be recorded as revenue upon the first receipt. Generally movements of moneys between State agencies or an agency's fund groups should not be recorded as revenue. They should be recorded as transfers. The Governmental Accounting Standards Board (GASB) requires that, if goods or services are provided between agencies and the value is approximately what it would be to receive the same goods or services from an outside source, the transaction be recorded as an expense to the paying agency and revenue to the receiving agency.
Revenues are recorded in the general ledger account number range 4000000000 through 4999999999.
The commitment items for all revenue accounts are non-budget relevant, also referred to as statistical.
Expense Accounts
Expenses are outflows, consumption of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services or carrying out other activities that constitute an agency's operations. Expenses are generally recognized in the period when incurred regardless of the timing of the related disbursements with the following exception. Certain expenses are recognized when due for modified accrual such as debt service payments, claims and judgments, accrued leave and net pension obligations. Moneys that are moved between State agencies or fund groups are generally not an expense but a transfer. However, the Governmental Accounting Standards Board (GASB) requires that, if goods or services are provided between agencies and the value is approximately what it would be to receive the same goods or services from an outside source, the transaction be recorded as an expense to the paying agency and a revenue to the receiving agency.
Expenses are recorded in the general ledger account number range 5000000000 through 5999999999.
Expense accounts may have either budget relevant or non-budget relevant commitment items. Run AASIS report S_KI4_38000036 to obtain the commitment item for general ledger accounts.
Period ending accrual entries are made to non-budget relevant general ledger accounts that are ties to statistical commitment items. However, all warrants, checks and inter-agency transfers for expenses must be coded to budget relevant general ledger accounts with a non-statistical commitment item.
Operating Transfer Accounts
Operating transfers are used to record transfers of funds. They are legally authorized transfers from a fund receiving revenue to the fund through which the resources are to be expended. They include inter-fund transfers (transfers between two or more State agencies) and intra-fund transfers (transfers within a State agency).
Operating transfers are recorded in the general ledger account number range 6000000000 through 6999999999 along with Other Financing Sources/Uses and Prior Period Adjustments.
At the present time, all Operating Transfers have non-budget relevant commitment items.
Other Financing Sources/Uses Accounts
Other Financing Sources/Uses Accounts are used to record inflow/outflow of resources that are not revenue/expense.
Other Financing Sources/Uses are recorded in the general ledger account number range 6000000000 through 6999999999 along with operating transfers and prior period adjustments.
All Other Financing Sources/Uses accounts for use by agencies other than certain accounts set up for use by DFA Employee Benefits Division only are non-budget relevant.
Prior Period Adjustments
Prior Period Adjustments are the net effect of changes resulting from the correction of errors which occurred in prior fiscal years. No Prior Period Adjustment shall be recorded by an agency without prior authorization from Department of Finance and Administration - Office of Accounting (DFA-OA).
Prior period adjustments are recorded in the general ledger account number range 6000000000 through 6999999999 along with operating transfers and other financing sources/uses.
All Prior Period Adjustment accounts are non-budget relevant.
AASIS Reports S_ALR_87012333, S_ALR_87012326 and S_ALR_87012328 all can be used to produce lists of the Chart of Accounts. In order to receive an accurate report, Chart of Accounts and Company Code must both reflect ARK.
Contact DFA-OA for additional information concerning the Chart of Accounts.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.09.1 R1-19-4-518, AR ADC 006.09.1 R1-19-4-518
| End of Document |