006.09.1 R2-19-6-101. Revenue Receipts and Deposits
AR ADC 006.09.1 R2-19-6-101Arkansas Administrative Code
Ark. Admin. Code 006.09.1 R2-19-6-101
006.09.1 R2-19-6-101. Revenue Receipts and Deposits
All cash, checks and legal tender received by a State agency, board, commission or institution must be immediately deposited with the Treasurer of State or one of the agency's bank or investment accounts. Additionally, all cash, checks and legal tender receipts must be immediately recorded in AASIS (through direct access, interface software, or by the Service Bureau).
Trust and agency funds must also be posted to a cash or investment account in AASIS using a fiduciary fund type. In creating journal entries, the offsetting debit or credit for agency funds will be the “Agency Fund Liability” account (general ledger #2114004000). Additions and deductions to trust-type funds must be recorded in the appropriate general ledger accounts.
Procedures for Posting Receipts in the AASIS
Cash Journals are used by AASIS for revenue receipts. The AASIS operation records revenue receipts in a Cash Journal. Each Cash Journal is assigned a specific general ledger account which is updated by cash journal receipts and deposits. Thus, the purpose of the Cash Journal is to keep track of revenue received in various forms and to post the revenue to the appropriate general ledger account.
A revenue code must be designated in AASIS for all cash receipt transactions. It is important to select the correct revenue code based on the type of revenue. Note that General Revenue codes begin with 401, and Special Revenue codes begin with 402 or 403. All General Revenue is deposited to fund AGA0000 using cost center 383359 and business area number 0610. Special Revenue funds are receipted to the agency's fund and subsequently transferred to fund ASA0000 daily by the Treasurer of State. At the end of each month, Special Revenues are distributed back to the agency's fund less the corresponding Treasury fee (3% for 402 and 1.5% for 403 revenue codes).
General ledger accounts that begin with 404 and 405 identify Other Revenue. Other Revenue must be deposited directly to the agency's fund. General ledger accounts that begin with 601 through 699 will be used for other financing sources (such as Refunds to Expenditure, Intra-Agency Transfers, and Inter-Agency Transfers).
Recording a revenue receipt requires selecting a business transaction in the Cash Journal corresponding to the appropriate revenue code. A cost center is required on the entry of a revenue receipt and will derive the fund assigned in AASIS. Check to be sure the desired fund is derived from the cost center. If the moneys are to be deposited to a different fund, the cost center must be modified. As appropriate, the revenue receipt will debit “Cash in Treasury-Incoming,” “Cash in Bank-Incoming” or a “Non-AASIS House Bank” account and credit the selected revenue account.
Recording the receipt of a customer's payment requires information to be obtained from the customer's account in AASIS. The customer number, assignment number, fund and cost center must be entered. The cost center, fund and general ledger revenue account fields shall be the same as those recorded in AASIS for the original invoice which has now been paid. Since the initial accounts receivable transaction debited the customer account and credited the appropriate revenue account, the receipt of a customer payment will credit the customer's account and debit the “Cash in Treasury - Incoming” or agency bank account.
Authorized Individuals
Agencies determine role needs and request roles from the AASIS Security Department. Roles available for Cash Receipting are the Agency Cash Receipt Specialist and the Agency Cash Deposit Specialist. Security roles determine the transactions that a user can perform. Features within permissible transactions can be further configured for security purposes. Transactions for Cash Journals have two security roles -- one for recording and saving entries and one for posting and preparing deposits.
To maintain internal control, receipts are to be entered and saved by the role of Cash Receipt Specialist and then posted by the role of Cash Deposit Specialist. Smaller agencies with limited personnel, which are unable to provide for an adequate segregation of duties, may be granted an exception to this requirement by obtaining an approval of their applicable mitigating controls from the Department of Finance and Administration-Office of Accounting (DFA-OA).
Procedure for Treasury Deposits
The AASIS transaction ZBCJ is used to print a deposit ticket for Treasury deposits. Printing of deposit tickets in ZBCJ will trigger the posting of Special Revenue to Fund ASA0000. PLEASE NOTE: Caution must be taken when reprinting a deposit ticket not to make a duplicate posting of Special Revenue. Deposit tickets must have an AASIS document number in order for the Treasurer of State to accept the deposit.
Refer to the AASIS web site http://www.aasis.state.ar.us/ for transaction training tutorials for and detailed instructions regarding the preparation and printing of a deposit ticket.
PLEASE NOTE: Once a deposit has been processed by the Treasurer of State, that deposit transaction may only be reversed with approval of the Department of Finance and Administration-Office of Accounting (DFA-OA).
Deposit tickets relative to funds on deposit with the Treasurer of State must only contain Treasury fund related transactions. Refer to AASIS web site http://www.aasis.state.ar.us/ and their transaction training tutorials for detailed instructions regarding the proper procedures to omit cash fund related deposits from Treasury fund deposit tickets.
Procedure for Cash Fund Deposits
Procedures for cash fund deposits are identical to those for Treasury deposits except for the fact that the funds are not transferred to the Treasurer of State. Additionally, the agency has the option to print a deposit ticket using AASIS as supplemental supporting documentation to its pre-printed bank deposit tickets.
Refund to Expenditures
Arkansas Code 19-6-701 (b) (1) - (8) states that refunds to expenditures “shall consist of:
Please note that Arkansas Code 19-6-701 (b) (8) “reimbursements to State agencies for cost-sharing purposes” is in reference to cost-sharing between agencies and not with public entities. Also, refunds to expenditures generally do not apply to cost-sharing within an agency. This would need to be treated as an expense error correction.
There are two types of refunds to expenditure: current year and prior year. Current year refunds to expenditures are used to reduce expense and restore the appropriation on the books of an agency where covered by Arkansas Code 19-6-701 (b) (1) - (8) or special language contained in individual agency current year Acts. Prior year refunds to expenditures do not reduce expenses nor restore appropriation except in specific circumstances.
Current Year
If monies are received by an agency in current fiscal year for payment(s) made in the same fiscal year and the monies are covered as a refund to expenditure under any of the criteria set out in Arkansas Code 19-6-701 (b) (1) - (8) or by special language in individual Agency current Acts, then the agency must record the deposit into the agency's fund as a current year refund to expenditure using general ledger code 6080001000.
Record Deposit as Current Year Refund to Expenditure
Debit 1100001002
Credit 6080001000
The agency must then complete and submit a “Request for Refund to Expenditure Form” along with a photocopy of the check/warrant processed as a receipt of funds to support the “refund to expenditure” to the Department of Finance and Administration - Office of Accounting - Reconciliation Manager (DFA-OA-Reconciliation Manager).
The request will be reviewed and, if approved, will be processed reducing the agency expense and restoring appropriation.
Debit 6080001000
Credit 5XXXXXXXXX
A photocopy of the original request will be returned to the agency with the document number for documentation. The original will be maintained by DFA-OA.
Prior Year
If monies are received by an agency in current fiscal year for payment(s) made in the prior fiscal year and the monies are covered as a refund to expenditure under any of the criteria set out in Arkansas Code 19-6-701 (b) (1) - (8) or by special language in individual agency current Acts, then the agency must record the deposit into the agency's fund as a prior year refund to expenditure using general ledger code 6990003000.
Record Deposit as Prior Year Refund to Expenditure
Debit 1100001002
Credit 6990003000
If the refund to expenditure is for a prior year transaction, a “Prior Year Non-Reclaimable Certification Form”, P1-19-6-101, must be completed and submitted to DFA-OA. The appropriation shall not be restored unless it involves a carry-forward appropriation item.
If a warrant from a prior year is cancelled or refund to expenditure from a prior year is deposited into a reclaimable fund, it is reclaimed based upon the appropriate procedures.
The Certification of Non Reclaimable PY Warrant Cancellations and Refunds to Expenditures Form and instructions can be found at http://www.state.ar.us/dfa/accounting/acc_forms.htmlor P1-19-5-1004.
Specific Circumstances for Prior Year Refunds to be handled as Current Year Refunds to Expenditures
If an agency has an appropriation with carry forward depending on the carry forward criteria for that appropriation, a refund of monies for a prior year expense may result in a current year refund to expenditure. To determine if a refund of monies in current year for prior year expenses on an appropriation with carry forward is eligible, please contact Department of Finance and Administration - Office of Accounting - Appropriations Manager.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.09.1 R2-19-6-101, AR ADC 006.09.1 R2-19-6-101
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