Pursuant to the authority vested in the Director of the
Department of Finance and Administration, acting as Chief Fiscal Officer of the
State, by Ark. Code Ann. §§
the Director of the Department of Finance and Administration, with the approval
of the Governor, does hereby promulgate the following Regulation for the
enforcement and administration of ACT 46 of 2003
(1st Ex. Sess.), Eighty-Fourth Session Projects
Account within the General Improvement Fund (84th
Session Projects Account), to take effect on September 15, 2003.
purpose of this Regulation is to:
and clarify the administration of the disbursements of the
84th Session Projects Account;
b. Provide for increased public confidence in
the disbursement of funds used for 84th Session
c. Ensure the
fair and equitable treatment of all fund recipients; and d. Provide safeguards
for the maintenance and administration of the disbursement process.
- For purposes of this Regulation, unless
otherwise required by the context, the following definitions apply:
A. APPROPRIATION shall mean a legislative act
authorizing the expenditure of a designated amount of public funds for a
B. BIENNIUM shall
mean a two-year period beginning the first of July immediately following the
conclusion of the regularly scheduled Arkansas Legislative session.
C. COMPLIANCE AUDIT shall mean an audit
conducted to determine whether the use of funds was in compliance with the
appropriated purposes of the General Assembly.
D. EXECUTIVE DISCRETIONARY DIVISION PROJECTS
shall consist of the projects approved for funding in the
84th Session Projects Account for which the Governor
shall authorize release of monies to fund such projects, subject to
availability of funds in the State Treasury.
E. FUND RECIPIENT shall mean any entity,
organization, institution, city or municipality, department and agency approved
by the General Assembly to receive appropriated funds through the
84th Session Projects Account.
F. GENERAL IMPROVEMENT FUND shall consist of
monies set aside by the General Assembly to be used for financing improvement
G. LEGISLATIVE DIVISION
PROJECTS shall consist of the projects approved for funding in the
84th Session Projects Account other than the
projects listed as Executive Discretionary Division Projects.
H. MAINTENANCE shall mean to support,
preserve, sustain and keep in a given existing condition of efficiency or state
I. MATCHING FUNDS shall
mean the monies equal to or exceeding appropriated funds through sources
outside of the appropriations creating the original funds, such as through
federal matching funds and private donations.
J. METHOD OF FINANCE shall mean a written
summary statement setting forth a general description of a proposed project;
its estimated overall costs; its estimated commencement and completion dates
and the method proposed to finance its cost.
A. The Treasurer of State shall first make
allocations on the basis of forty two and two tenths percent (42.2%) of the
total available funds to the Executive Discretionary Division Projects and the
remainder of the total available funds to the Legislative Division Projects
until all Legislative Division Projects have been fully funded.
B. The Legislative Division Projects shall be
used to provide funds to each project enumerated in the Legislative Division
Projects in proportion that each project's allocation bears to the total of the
allocations of all projects enumerated in the Legislative Division Projects.
Although funding levels have been established, there are no guarantees
that funds will become available and be released in amounts sufficient to reach
the 100% level of funding. Therefore, fund recipients should judiciously plan
C. Funds made
available to the Executive Discretionary Division Projects may be used for any
project or portion thereof enumerated within the Executive Discretionary
Division Projects, but not to exceed the amount set out for the
D. The Chief Fiscal
Officer of the State shall notify the Legislative Council of the Governor's
released funds for projects at the time that the Department of Finance and
Administration is notified.
A. Each Fund
Recipient shall provide their address of record, point of contact information
and telephone number to the Disbursing Officer of the Department of Finance and
Administration (DFA Disbursing Officer) by September 15, 2003. The address of
record shall be the business address of the Fund Recipient.
B. By August 1, 2003, the DFA Disbursing
Officer shall issue a letter of instruction to all designated Fund Recipients.
The letter shall contain information regarding the disbursement process,
required supporting documentation, blank forms to be completed by each fund
recipient and returned to the DFA Disbursing Officer by October 1,
The DFA Disbursing Officer shall mail monies/warrants to Fund Recipients to the
addresses of record within 20 working days after the Office of Accounting of
the Department of Finance and Administration receives distribution from the
Treasurer of the State. Distribution of funds will be delayed if the Fund
Recipient fails to provide the required Certification for Use of Funds form
(DFA-SP-1) or provides an incomplete Certification for Use of Funds form
(DFA-SP-1) as required in 7(A) of these rules.
B. In the event that an incomplete
Certification for Use of Funds form (DFA-SP-1) is received, the DFA Disbursing
Officer shall notify the Fund Recipient by letter to their address of record
within 10 working days. The initial distribution to the Fund Recipient may be
delayed up to 60 days after the receipt of a complete Certification for Use of
Funds form (DFA-SP-1).
A. Monies may not be
disbursed under this Regulation in excess of the State Treasury funds actually
available and provided by law.
Recipients of funds under this Regulation shall have the authority to accept
and use grants and donations, including Federal funds, and its unobligated cash
income or funds, to compensate for any deficiency in appropriated state funds
for any approved project.
Applicable provisions of the State Purchasing Law, the General Accounting and
Budgetary Procedures Law, the Revenue Stabilization Law and any other
applicable fiscal control laws of this State and regulations promulgated by the
Department of Finance and Administration, as authorized by law, shall be
strictly complied with in disbursement of any funds provided by the
84th Session Projects Account unless specifically
provided otherwise by law.
Use of Funds Notification
A. The initial
application and certification by designated Fund Recipients establishing the
intended purpose and specific use of the funds shall be delivered to the DFA
Disbursing Officer, via the Certification for Use of Funds form (DFA-SP-1) by
October 1, 2003.
B. The Fund
Recipient shall provide updated notification to the DFA Disbursing Officer at
any time that the specific use of the funds as disclosed on the initial
Certification for Use of Funds form (DFA-SP-1) is changed. The new notification
shall also be made on the Certification for Use of Funds form
C. An Expenditure
Report form (DFA-SP-2) shall be completed by the Fund Recipient as of December
31, 2004 and sent to the DFA Disbursing Officer within 10 working days
thereafter. An Expenditure Report form (DFA-SP-2) shall then be prepared at the
end of every calendar year until the project is completed or the final use of
the appropriated funds.
Notification by Fund Recipient as to the actual purpose and use of the funds
shall be delivered to the DFA Disbursing Officer, via the Expenditure Report
form (DFA-SP-2), within 30 days after completion of the project or final use of
E. The failure of an
applicant to comply with the certification process as set forth in this section
may cause delays in receiving funding.
Matching Funds -
Any matching funds as may be provided in law shall be certified to the Chief
Fiscal Officer of the State prior to any disbursement of
84th Session Projects Account funds and the
commencement of the project.
Criteria and Preconditions
- Expenditure of the funds
authorized by appropriation of 84th
Account shall be made only upon:
documentation to the Chief Fiscal Officer of the State that all criteria or
preconditions established in the appropriation act have been met, and
(b) a Method of Finance has been filed with
the Office of Accounting in the Department of Finance and Administration, if
Adequate Records Maintenance
- For audit purposes,
Fund Recipients shall store and maintain on-site, for three years after final
disbursement of funds, records of the following:
(a) all receipts and invoices;
(b) all applicable statutes and
(c) all documents and
forms required by this Regulation;
(d) all correspondence pertaining to funds;
(e) all procurement
- any recipient of appropriated funds
from the 84th
Session Projects Account:
(a) may be required to file a compliance
(b) is also subject to
an audit by the Division of Legislative Audit in order to determine that the
use of the funds was in compliance with the intent and appropriated purposes of
the General Assembly.
Non-compliance with this
- If it is found through a review of Fund Recipient
reports, a compliance audit, or through any other means that a recipient of
funds under Act 46 of 2003 (1st
Ex. Sess.) or this
Regulation has expended funds for any purpose other than that approved by law,
the Chief Fiscal Officer of the State may take any or all of the following
(a) withhold current funds to said
recipient pending correction of the unapproved use of funds;
(b) require reimbursement of misused funds as
outlined in Section 13 below; or
(c) take any other action authorized by law
to correct the misuse of funds or to demand reimbursement of misused
Reimbursement of Funds
A. If, after funds are expended to complete
an approved project which has been specifically appropriated and funds remain
in excess of the project cost, that recipient shall provide reimbursement of
any unexpended funds within 30 days after said determination.
B. If, as a result of an audit as outlined in
Section 11 above, it is found that a recipient of funds under Act 46 of 2003
(1st Ex. Sess.) or this Regulation has expended
funds for any purpose other than that approved, that recipient shall provide
reimbursement of expended funds within 30 days after said
C. Reimbursement of
expended or unexpended funds shall be made through a check payable to: DFA
Disbursing Officer and mailed to P.O. Box 2485, Little Rock, Arkansas
72203-2485. The DFA Disbursing Officer shall deposit the reimbursement as a
refund of the expenditure into the fund from which it was originally disbursed.
If a reimbursement check is returned due to insufficient funds or is dishonored
for any other reason, it shall be considered that said payment was not
D. If a recipient of funds
hereunder does not provide reimbursement of misused funds as directed under
this section, the Chief Fiscal Officer of the State may make a recommendation
to the Legislative Council between sessions and to the Joint Budget Committee
during sessions that no further funds under Act 46 of 2003
(1st Ex. Sess.) or any other subsequent
appropriation act be appropriated for use by the Fund Recipient.
Supplemental to Current Law
- No provision of this Regulation
shall be considered to repeal any requirement of existing law or regulations
promulgated pursuant to existing law.
Richard A. Weiss, Director Arkansas Department of Finance and
Administration and Chief Fiscal Officer of the