State Agency - NASACT



TOPIC: Prescribed Charts of Accounts for State and Local EntitiesOFFICE: Office of the Auditor of StateSTATE: OhioDATE: 4/4/13QUESTION / ISSUE: We are interested in determining if other states prescribe (a) financial chart of accounts/charts of accounts for their state/local governments to follow. We would like to know:Does the state prescribe (a) chart/charts of accounts for any state/local government in the state?If so, how does the state prescribe the chart(s) of accounts – set by statute, set by rule by an officeholder (e.g. State Auditor), etc.?For which entity types have charts of accounts been established?Is the use of the chart of accounts mandatory or voluntary for each entity type?Can the state provide a copy of or link to all of their charts of accounts?StateCommentsArizonaYes, we prescribe charts of accounts for counties, county treasurers, school districts, and charter schools. Counties and County Treasurers: State statute requires our office to prescribe uniform accounting manuals for counties, including the Uniform Accounting Manual for Arizona Counties (UAMAC) and the Uniform Accounting Manual for Arizona County Treasurers (UAMACT). The charts of accounts are included in those manuals. School Districts: State statute requires our office to prescribe the Uniform System of Financial Records (USFR) for Arizona School Districts in conjunction with the Arizona Department of Education. The chart of accounts is included in that manual. The USFR chart of accounts is based on the Financial Accounting for Local and State School Systems published by the National Center for Education Statistics (NCES) in the U.S. Department of Education with modifications and additions made as needed to address state statute. Charter Schools: State statute requires our office to prescribe the Uniform System of Financial Records for Arizona Charter Schools (USFRCS), which is done in conjunction with the Arizona Department of Education. The chart of accounts is included in that manual. The USFRCS chart of accounts is based on the Financial Accounting for Local and State School Systems published by NCES with modifications and additions made as needed to address state statute and charter schools’ use of accounting principles promulgated by the Financial Accounting Standards Board rather than the Governmental Accounting Standards Board. See answers to 1 and 2 above.Counties and County Treasurers: Use of the descriptions in the chart of accounts are mandatory for all Arizona counties and county treasurers. However, use of the account numbering is voluntary.School Districts: Use of the descriptions and account numbering in the chart of accounts is mandatory for all Arizona school districts.Charter Schools: Use of the descriptions and account numbering in the chart of accounts is mandatory for all Arizona charter schools unless their charter specifically exempts them from following the USFRCS. Schools that are exempt from the USFRCS are not required to use the charter of accounts in their accounting records, but must use the descriptions and account numbering in their budgets, unaudited annual financial reports, and grant reports filed with the Arizona Department of Education.Counties: , section III of the UAMAC manual.County Treasurers: , section III of the UAMACT manual.School Districts: . The full USFR is available at Schools: , section III of the USFRCS manual.ArkansasYes, for county government.ACA §14-21-101, see below. 14-21-101. Comprehensive financial management system.(a) (1) In order to provide necessary financial information for the county judge, the members and committees of the county quorum court, and other interested officers and departments of the county, the Legislative Auditor is authorized and directed to develop a comprehensive financial management system for appropriate funds of the various counties in the State of Arkansas.(2) This financial management system shall provide for adequate controls over revenues, expenditures, and balances to assure that current information will always be available concerning the financial condition of the county and its various offices and departments.(3) The system shall include a budgeting and accounting system designed to classify the receipt of and the appropriations and disbursements of county funds in accordance with the object and purpose of the expenditures in such detail as will be suitable for an analysis of the operations of all county offices and departments and which will provide a breakdown and itemization of all expenditures compatible with and comparable to the appropriations of the quorum court.(b) In the event any county is of the opinion that its system of budgeting and accounting for appropriated county funds is such that it equals or exceeds the basic system prescribed by this section, such county, acting through the quorum court, may request a review of its system by the Legislative Joint Auditing Committee. If the committee concurs with the county, the committee may issue a certificate to the county stating that the county's budgeting and accounting system is of such degree of sophistication that the basic requirements of this section are being met and exempting the county from the requirements of the particulars of the system prescribed by this section.HISTORY: Acts 1981, No. 122, § 1; A.S.A. 1947, § 17-609.??County only – there is a suggested chart of accounts for municipalities that will be coming out in a publication soon from the Arkansas Municipal League. However, it will not be mandated for use.County mandatory, municipality not mandated.See attached file of the county financial management system manual.ColoradoYes, Colorado state government prescribes a chart of accounts under Section 24-30-201, C.R.S. Additionally, Section 22-44-105(4), C.R.S., established a requirement for all school districts and charter schools to follow a prescribed chart of accounts.For the state, the chart of accounts is set per C.RS. 24-30-201, which is published in the Fiscal Procedures Manual. See the link to Fiscal Procedures manual below. For school districts, the chart of accounts is established by a Financial Policies and Procedures Advisory Committee (FPP).The chart is uniform across all of the state of Colorado primary government. The chart of accounts established by the FPP is applicable for all school districts and charter schools in Colorado. There is no prescribed chart of accounts established for other types of local governments such as counties, municipalities and special districts.The state chart of accounts is mandatory for all of the state of Colorado primary government. The prescribed chart of accounts for school districts is mandatory. Additionally, in accordance with Section 29-1-603, C.R.S., the auditor of a school district must ensure that the school district is complying with the provisions of the Financial Policies and Procedures Handbook.The state’s Fiscal Procedures Manual can be found at: The Financial Policies and Procedures Handbook for Colorado School Districts can be found at: DelawareIn Delaware OMB sets up the budgetary accounting process including the appropriation accounts as indicated in the Budget & Accounting Manual located at . First State Financials referenced in the manual is Delaware’s instance of PeopleSoft implemented approximately two years ago. ?This structure applies to all state agencies which in Delaware includes all school districts since they are a part of primary government to the state. In addition, all elected officials operate on one comprehensive budgetary and accounting system. ?There is no state involvement in local government accounting except as stipulated in certain grant agreements. Delaware, unlike other states has no agency or department designed for local government oversight. AOA audits the local government grant and aid activity. FloridaSection 215.89, Florida Statutes requires the CFO to develop, by January 15, 2014, a uniform chart of account which requires specific enterprise-wide information related to revenues and expenditures of state agencies, local governments, educational entities, and entities of higher education. Currently the CFO maintains a chart of State Standard codes for the State agencies which classifies organizational structures, budget entities, internal budget indicators, funds, general ledger codes, object codes, appropriation categories, and state programs. Local governmental entities are required to follow uniform accounting practices and procedures as promulgated by rule (Section 218.33(2), Florida Statutes) of the CFO. Pursuant to Section 1010.01, Florida Statutes, the financial records and accounts of each school district, community college, and other institution or agency under the supervision of the State Board of Education must be prepared as prescribed by law and rules of the State of Board of Education. Additionally, each school district must account for expenditures for all state, local, and federal funds on a school-by-school and district aggregate basis in accordance with rules (Section 1010.20(1), Florida Statutes) developed by the Department of Education.Attached is an excerpt from the state of Florida’s accounting manual detailing the chart of account currently used by state agencies. The current chart of accounts for local governments may be found on this page, as well as Uniform Accounting System (UAS) Manuals for Counties, Municipalities, and Special Districts (UAS are at the bottom of the page).GeorgiaThe state of Georgia prescribes charts of accounts for state agencies, counties and municipalities, local school systems, and other political subdivisions of the state. These charts of accounts are not written into law; rather the Georgia General Assembly has charged certain agencies with the responsibility of creating the charts of accounts. Once created, Georgia law mandates that certain state and local government entities follow these charts of accounts. For instance, state agencies follow the chart of accounts created by the Georgia State Accounting Office; counties and municipalities follow the chart of accounts created by the Department of Community Affairs; and local school systems follow the chart of accounts created by the Department of Education. The following links detail the chart of accounts created for each type of state and local government entity:Link to State Agency Chart of Accounts: .Link to Local Govt. / Municipal Chart of Accounts: research/programs/uca.asp Link to Local School Systems Chart of Accounts: (All?references are to the Code of Iowa).?State Agencies and Departments: Link to chart of accounts not readily available. The State of Iowa has prescribed a chart of accounts for the state itself. State statute provides the following:?8A.502 Financial administration duties.The department (Department of Administrative Services) shall provide for the efficient management and administration of the financial resources of state government and shall have and assume the following powers and duties:1. Centralized accounting and payroll system. To assume the responsibilities related to a centralized accounting system for state government and to establish a centralized payroll system for all state agencies. However, the state board of regents and institutions under the control of the state board of regents shall not be required to utilize the centralized payroll system.?8. Accounts. To keep the central budget and proprietary control accounts of the general fund of the state and special funds, as defined in section 8.2, of the state government. Upon elimination of the state deficit under generally accepted accounting principles, including the payment of items budgeted in a subsequent fiscal year which under generally accepted accounting principles should be budgeted in the current fiscal year, the recognition of revenues received and expenditures paid and transfers received and paid within the time period required pursuant to section 8.33 shall be in accordance with generally accepted accounting principles. Budget accounts are those accounts maintained to control the receipt and disposition of all funds, appropriations, and allotments. Proprietary accounts are those accounts relating to assets, liabilities, income, and expense. For each fiscal year, the financial position and results of operations of the state shall be reported in a comprehensive annual financial report prepared in accordance with generally accepted accounting principles, as established by the governmental accounting standards board.?School Districts: Link to certified annual report: districts are required to file the certified annual report which is derived from the underlying prescribed chart of accounts.?The state of Iowa also has prescribed the chart of accounts to be used by?Iowa school?districts. The Iowa Department of Education is charged with preparing forms and procedures as follows:?256.9(19). The department shall compile the financial information related to chapters 423E and 423F from the certified annual reports of each school district received pursuant to section 291.10, subsection 2, and shall submit the information to the general assembly in an annual report each February 1.?291.10 Reports by secretary.1. The school district shall file an annual report with the director of the department of education on forms prepared for that purpose.?Counties: Link to county chart of accounts: County Finance Committee is charged by the state law to do the following:?333A.4 Powers and duties of the committee.The committee shall: 1. Design budget forms required by section 331.434 and annual financial report forms required by section 331.403 for all county funds.2. Establish guidelines for program budgeting and accounting and the preparation of capital improvement plans. It shall, where practicable, use recommendations of the national council on governmental accounting or its successor organization.?In addition to the budget and annual financial report forms, the Committee has established a Uniform Chart of Accounts for Iowa County Governments. This chart of accounts is recommended, but not mandatory.?Cities: Link to City chart of accounts: See attached PDF below. The City Finance Committee is charged by the state law to do the following:384.15 Duties — rules — law enforcement officer training reimbursement.The committee shall: 1. Promulgate rules relating to budget amendments and the procedures for transferring moneys between funds, and other rules necessary or desirable in order to exercise its powers and perform its duties, including rules necessary to implement section 384.6, subsection 1. The committee's rules are subject to chapter 17A as applicable.2. Select its officers and meet at the call of the director of the department of management or at the request of a majority of the committee.3. Establish guidelines for program budgeting and accounting and the preparation of five-year capital improvement plans. A city shall hold a public hearing on its capital improvement plan before adoption of the plan. The committee may require performance budgeting. It shall, where practicable, use recommendations of the national council on governmental accounting.?In addition to the budget and annual financial report forms, the committee has established a Uniform Chart of Accounts for Iowa?cities. This chart of accounts is recommended, but not mandatory.MaineYes, for both state and local governments.State: the chart of accounts is established by the Office of the State ControllerLocal: the model chart of accounts was established by committeeState and Local (municipal and county)State: mandatory; Local: voluntaryLocal: : state of Michigan does prescribe a chart of accounts for local units of government.State statute requires our state treasurer to "prescribe?uniform charts of accounts for all local units of similar size, function, or service designed to fulfill the requirements of good accounting practices relating to general government."This chart of accounts is established for local units of government.The use of the chart of accounts is required, however,?variances?from the chart are allowable as?long as the required fiscal report prepared is consistent?with the chart of accounts.The prescribed chart of accounts is attached.MinnesotaYes. See below.6.47 ACCOUNTING AND BUDGETING SYSTEMS; INVESTIGATION, FORMS.The state auditor shall inquire into the accounting and budgeting systems of all political subdivisions and shall prescribe suitable systems of accounts and budgeting, and forms, books, and instructions concerning the same. At the request of any political subdivision the state auditor may install such systems.In addition, Minn. Stat. § 6.48 states, “the state auditor shall prescribe and install systems of accounts and financial reports that shall be uniform, so far as practicable, for the same class of [county]offices.”477A.017 UNIFORM FINANCIAL ACCOUNTING AND REPORTING SYSTEM.Subdivision 1.Purpose. Sections 477A.011 to 477A.03 are designed to provide property tax relief to local units of government. In order for the legislature to determine the amounts of relief necessary each year, the legislature must have uniform and current financial information from the governmental units which receive aid distributions. This section is intended to provide that information. Subd. 2.State auditor's duties. The state auditor shall prescribe uniform financial accounting and reporting standards in conformity with national standards to be applicable to cities and towns of more than 2,500 population and uniform reporting standards to be applicable to cities of less than 2,500 population. Subd. 3.Conformity. Other law to the contrary notwithstanding, in order to receive distributions under sections 477A.011 to 477A.03, counties and cities must conform to the standards set in subdivision 2 in making all financial reports required to be made to the state auditor after June 30, 1984. See #1 (statute)Small cities and townships, counties"This Uniform Chart of Accounts is designed for cities and towns in Minnesota. The primary objective of a Uniform Chart of Accounts is to facilitate the preparation of uniform annual financial statements, that is, statements that may be reliably compared to those of other cities and towns. Because of this aim, it is especially important that transactions are entered in a consistent manner. The Uniform Chart of Accounts is not a source of authority for cities/towns to enter into agreements or to make transactions. Rather, it describes the accounting for transactions authorized by law.The design of this Uniform Chart of Accounts is closely tailored to the 2001 GAAFR (Governmental Accounting, Auditing, and Financial Reporting) of the Government Finance Officers Association.Although a Uniform Chart of Accounts implies a uniform account numbering system for all cities/towns, it is the structure, rather than the numbers that is important. Cities/towns with a large investment in a different chart of accounts need not adopt the account numbers presented herein, provided those systems can be modified to present uniformly classified information.We further recommend that the Uniform Chart of Accounts be adopted when a city or town changes from a manual to a computer based accounting system or modifies an existing computer based system. In addition, cities and towns the Small City and Town Accounting System (CTAS) must follow the chart of accounts." standard charts of accounts have been established for the various local governments existing in Missouri. However, the state does prescribe a chart of accounts for the statewide accounting system used by state government entities. This system, known as Statewide Accounting for Missouri (SAM) II, is overseen by the Office of Administration, Division of Accounting (OA DOA).The chart of accounts was not established by statute or regulation. Rather, the chart was agreed to, and developed by, state agencies for the first statewide accounting system and later carried over to the current system. The chart of accounts is required through SAM II policies and procedures; and usage of, and compliance with, the chart of accounts is enforced through system controls.See the comments for Question 1.Certain components of the chart of accounts are mandatory for each entity using SAM II.?Other components are optional and used by the entities to meet their organizational needs.The chart of accounts is available to user state agencies through the OA Web site. Questions regarding SAM II and the chart of accounts should be directed to the OA DOA at (573) 751-2971 (telephone), (573) 526-9810 (fax), or acctmail@oa. (e-mail).MontanaThe state of Montana has a statewide accounting and HR system, used by the executive, judicial and legislative branch agencies, including the university system. The uniform chart of accounts is set by state policy, and is coded into the accounting system. State law requires:17-1-102. Uniform accounting system and expenditure control. (1) The department (of Administration) shall establish a system of financial control so that the functioning of the various agencies of the state may be improved, duplications of work by different state agencies and employees may be eliminated, public service may be improved, and the cost of government may be reduced. (2) The department shall prescribe and install a uniform accounting and reporting system for all state agencies and institutions, reporting the receipt, use, and disposition of all public money and property in accordance with generally accepted accounting principles. (3) The uniform accounting and reporting system must contain three levels of expenditure. The first level must include general categories, such as personal services, operating expenses, equipment, capital outlay, local assistance, grants, benefits and claims, transfers, and debt service. The second level of expenditure must include specific categories of expenditures within each first-level category. The third level of expenditure must include specific items of expenditure within each category of the second level. (4) All state agencies, including units of the university system but excluding community colleges, shall input all necessary transactions to the accounting system prescribed in subsection (2) before the accounts are closed at the end of the fiscal year in order to present the receipt, use, and disposition of all money and property for which the agency is accountable in accordance with generally accepted accounting principles, except that for budgetary control purposes, encumbrances that are required by generally accepted accounting principles to be reported as a reservation of fund balance must be recorded as expenditures and liabilities on the accounting records in accordance with the following requirements: (a) Goods and services, grants, and local assistance that are paid for with the general fund, in whole or in part, may be encumbered. The general fund encumbrances must be reviewed by the department, and a specific extension plan must be presented by the encumbering agency to the department prior to the fiscal yearend. If a valid extension plan is not received and approved, the department shall delete the encumbrance at fiscal yearend. The department shall present a fiscal yearend report to the office of budget and program planning and to the legislative finance committee on each general fund encumbrance remaining at fiscal yearend. (b) Nongeneral fund encumbrances also require a valid extension plan approved by the department at the end of each fiscal year. After 3 years, approved extensions must be included by the department in its fiscal yearend report to the office of budget and program planning and to the legislative finance committee.At the local government level, Montana has a codified Montana Single Audit Act including:2-7-504. Accounting methods. (1) Unless otherwise required by law, the department shall prescribe by rule the general methods and details of accounting for the receipt and disbursement of all money belonging to local government entities and shall establish in those offices general methods and details of accounting. All local government entity officers shall conform with the accounting standards prescribed by the department. (2) The rules adopted by the department must be in accordance with generally accepted accounting principles established by the governmental accounting standards board or its generally recognized successor. North CarolinaFor state agencies in North Carolina:The state does provide a statewide chart of accounts for all state agencies (and entities using NCAS). For interface entities, their chart of accounts has to be as detailed as the statewide chart of accounts. Other entities should have sufficient detail to prepare the year-end CAFR package financial statement templates. Set by statute – G.S. 143B-426.39 Duties of State Controller and 143B-426.40. All NCAS agencies (governmental funds, enterprise funds, and fiduciary funds). Most component units are either interface agencies (see # 1 above) or use the year-end CAFR package financial statement template. There are two fiduciary funds that use the year-end CAFR package template. Mandatory for all entities using NCAS.Yes. local governments in North CarolinaThere is a chart of accounts available for local governments if they choose to follow it; units are free to adopt all, parts or none of itIt is published on the SLGFD website and available for download but we have not made it mandatory. We do ask that units follow a similar grouping of revenues and expenditures to facilitate comparisons across governmentsPrimarily cities and counties but any local government could adapt the COA for its use with the exception of schools. The Department of Public Instruction dictates their COAsSee answers above do prescribe a chart of accounts for county and county-related entities in the state. The attached statute is used to require the use of the chart. Also attached is a copy of the latest revision of the chart of accounts. There is currently not such a requirement for municipalities, utility districts, and other similar entities. UtahThe State of Utah has a prescribed chart of accounts for state agencies. You can find it here: a handful of state entities may have their own COAs, usually their info is fed into the state's financial system (FINET) and thus the state's COA's. As for local governments, we have a suggested chart of accounts. This is found in our office's Uniform Accounting?Manual, starting here in section I.C07.01: state's chart of accounts was established and is maintained by the Division of Finance based on the needs of agencies and?legislation. Agencies can add/delete various elements of the COA as necessary?within?their agency. The local government suggested chart of accounts was developed by our office. It is only a guideline. Local governments may choose to use it, or portions of it, or create their own.Our Uniform Accounting Manual has suggested chart of accounts for counties,?municipalities, and local districts.State agencies – mandatoryLocal governments – voluntarySee above.VirginiaVirginia prescribes a standard chart of accounts for state agencies. It is not required for local governments. You may find the chart of account standard here, along with many other standards.?As noted in the scope section of the standard, “The Chart of Accounts Data Standard implements, as a Commonwealth ITRM Standard, the Chart of Accounts data classification and coding structures published in the CAPP Manual, Topic No. 60101, Chart of Accounts, and implemented through CARS. The standard shall be applicable to all state officers, departments, boards, commissions, Agencies, and penal, educational and charitable institutions (“entities”), pursuant to § 2.2-803 of the Code of Virginia.”The chart of accounts is prescribed through a COA Standard issued by the Commonwealth’s Secretary of Technology and Chief Information Officer. By statute these officers are responsible for setting data standards in many areas, including chart of accounts. The state comptroller is the business owner of this standard and assigns all the appropriate values (i.e. fund codes, program codes) to be used to fulfill the standard.See statement 1 above. Basically all agencies and higher education institutions that use the commonwealth’s accounting system must comply with the standard. Agencies and institutions that use other accounting systems can create their own chart of accounts but they must interface information to the commonwealth’s accounting system in the COA format required by the standard.Mandatory for all state agencies that use the commonwealth’s accounting system. Voluntary for state agencies that use their own accounting system, however they must be capable of interfacing their system with the commonwealth’s system and provide the data in the standard COA format.See link above. This will take you to the standard narrative which contain additional links to more information.WashingtonThe State Auditor's Office prescribes the chart of accounts for almost all local government except school districts. The Office of Superintendent of Public Instruction prescribes the chart of accounts for school districts. For state agencies, the Office of Financial Management prescribes the accounting and reporting.The State Auditor's Office is required by state law (RCW 43.09.210) to prescribe a uniform chart of accounts for local governments. We refer to this as the Budgeting, Accounting, and Reporting System (BARS). In addition, the State Auditor's Office is required by state law (RCW 43.09.230) to collect annual reports of revenues and expenditures and to publish this information. You may find this on our website at sao. under client support, the Local Government Finance Reporting System.Charts of accounts have been established for all cash basis entities and most GAAP entities. The following GAAP types are only required to report financial statement (no detail chart of accounts): hospitals, housing authorities, risk pools, water/sewer/irrigation districts. We are currently working on creating charts of accounts for these entity types. I should mention in the state of Washington, local governments may report on a GAAP or cash basis unless they have other regulatory or GAAP requirements that require GAAP statements (housing authorities, risk pools).The chart of accounts is only required for reporting purposes to the State Auditor's Office. Local governments may choose to use their own chart of accounts for internal purposes and convert to the prescribed chart of accounts for their annual report.The link for the local government chart of accounts is: sao.en/clientsupport/financialreporting/LGS/BARSManualsWest VirginiaWest Virginia Code 6-9-2 requires the Chief Inspector (State Auditor’s office) to formulate, prescribe and install a system of accounting and reporting which is uniform for all county governments. There is a chart of accounts for both municipalities and county governments. These can be located at under Local Government/County Government and Local Government/Municipal Government. The use is mandatory. ................
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