35-131

35-131. Accounting system; reports; notice of
deficiency; forms

A. In accordance with generally accepted governmental accounting
principles, the department of administration shall develop and prescribe for the use of
all budget units a uniform accounting system so designed as to ensure compliance with all
legal and constitutional requirements including those respecting the receipt and
expenditure of and the accountability for public monies.

B. The department of administration shall maintain complete, accurate and current
financial records relating to state monies and to other public monies in the state
treasury available to, encumbered by or expended by each budget unit, including trust
monies or other monies not subject to appropriation, setting out all revenues, charges
against all funds, fund and appropriation balances, interfund transfers, outstanding
warrants and encumbrances, in a manner consistent with the uniform state accounting
system, for the preparation of statewide financial statements in accordance with
generally accepted governmental accounting principles.

C. Each month the department of administration shall prepare and submit to the
governor a report summarizing by budget unit and appropriation or other fund source the
above information in such form as will most clearly and accurately set out the current
fiscal condition of the state and shall furnish to each budget unit a report of its
transactions by appropriation or other fund source in a form that will clearly and
accurately show the fiscal activity and condition of such appropriation or fund source.

D. The responsible official for each budget unit shall monitor reports prepared
pursuant to subsection C of this section to identify any projected total deficiency for
the budget unit fiscal year. On a determination of a projected deficiency, the official
shall take any action necessary to assure continuing compliance with section 1-254 by
notifying the governor, the speaker of the house of representatives, the president of the
senate and the chairman of the joint legislative budget committee of the deficiency and
the reasons for the deficiency. The initial notification of the deficiency shall be
followed within ten business days by a report from the responsible budget unit official
that includes the following:

1. A complete explanation of the causes of the deficiency.

2. A plan that assures that the deficiency will be resolved within the fiscal year
without supplemental appropriation and that includes the policy and programmatic
implications of the deficiency and the plan.

3. A commitment to provide a progress report if the projected degree of deficiency
changes substantially. The report shall include additional measures necessary to assure
resolution of the deficiency within the fiscal year.

E. On or before December 1 of each year, the director of the department of
administration shall submit to the governor a complete report of the financial
transactions of the preceding fiscal year and of the financial condition of the state at
the end of that year with such comments and supplementary data as the director of the
department of administration deems necessary to make the report complete and readily
understandable. The report shall include all appropriated and nonappropriated monies in
no less detail than the state general fund.

F. On or before February 1 of each year, the director of the department of
administration and the state treasurer shall submit to the joint legislative budget
committee a report explaining any differences between the department of administration's
estimate of the previous fiscal year's state general fund ending balance submitted
pursuant to subsection E of this section and the state treasurer's estimate of the
invested balance including the general fund share of that balance as of June 30 of the
previous fiscal year submitted pursuant to section 41-172.

G. In preparing the comprehensive annual financial report published in accordance
with the generally accepted accounting principles, the department of administration shall
include supplementary schedules that reconcile any differences between the state general
fund as reported in the comprehensive annual financial report and the state general fund
as reported in the annual financial report required by subsection E of this
section. This reconciliation shall address revenues, expenditures and fund balances.

H. The director of the department of administration shall prescribe uniform
classifications for assets, liabilities, receipts and expenditures and forms for the
periodic reporting of financial accounts, transactions and other matters by budget units
compatible with the reports required of the director of the department of administration
under this section. Such records and accounts shall be maintained and reconciled by
budget units. If required for reporting, the department of administration may establish
or delete funds and budget units may maintain additional records for reporting to the
federal government or other funding source.

I. Each organization that is included in the state's reporting entity as defined by
generally accepted accounting principles shall submit all necessary financial statements
or information to the department of administration on a basis of accounting that is
consistent with generally accepted accounting principles and that is in accordance with
the policies and procedures of the department of administration.