FAQs

Financial Reporting

What are the accounting-related State Reporting Requirements for Agencies?

Agencies that administer State funds, such as the Highway Fund, Risk Management Fund, Board of Accountancy Fund, etc. should research the enabling statutes that established the fund to determine the type and frequency of reporting requirements. Also, the statutes may require that the reports be audited prior to submission. Annually, the ADOA-GAO prepares two reports: 1) The cash basis Annual Financial Report (AFR) (A.R.S. § 35-131, F.); and 2) the Comprehensive Annual Financial Report (CAFR) on the Generally Accepted Accounting Principles (GAAP) basis of accounting. The CAFR is audited by the Office of the Auditor General. Agencies not required to have audited reports must complete the GAO Closing Package annually after fiscal year end to assist the ADOA-GAO in completing the CAFR. The Closing Package forms and instructions can be found in the "Publications" section of the GAO’s web site. The ADOA-GAO is available to assist agencies in researching the statutes and in preparing procedures to fulfill these requirements.

Financial Reporting

What are the accounting-related Federal Reporting Requirements for Agencies?

Agencies that receive Federal Financial Assistance are generally required to report to the Federal Grantor Agency on the activity of the grant. These reports usually include a quarterly financial report on receipts, disbursements and obligations (SF269). In addition, the Department of Administration, in conjunction with the Statewide Single Audit, is required to prepare an Annual Statewide Schedule of Expenditures of Federal Awards (SEFA). This Schedule includes the Catalog of Federal Domestic Assistance (CFDA) Number and total disbursements. This Schedule is subject to audit and is included in the Single Audit Reporting Package that is prepared by ADOA-GAO and audited by the Auditor General.

Funds

What are Imprest Accounts or Petty Cash Funds?What are Imprest Accounts or Petty Cash Funds?

The most common definition of the term “Revolving Fund” is that it is an Imprest Account Fund or Petty Cash Fund. An imprest account is used for handling minor disbursements whereby a fixed amount of money is set aside for this purpose. Disbursements are made as needed with a receipt or petty cash voucher being completed in each case. At certain intervals, or when the imprest account is completely expended, the imprest account is replenished. The total of petty cash on hand plus the amount of signed receipts or petty cash vouchers at any one time must equal the total amount authorized for the imprest account. See A.R.S. § 35-193 and the State of Arizona Accounting Manual for details regarding the establishment and accounting procedures for imprest accounts.

Funds

How can my agency obtain an imprest account or adjust it?

To request an imprest account or to make changes to an existing one, the agency must submit a “Request for Revolving Fund” form, GAO-33 to the GAO. A copy of this form may be found in the State of Arizona Accounting Manual which is also out on our website.

Funds

What is an Appropriated Fund?

With the exception of most Federal funds, funds of the State of Arizona are generally subject to legislative appropriation. Included in the appropriated funds are: General, Highway, Licensing Boards’ funds (such as Board of Accountancy, Barbers Examiners, etc.), Game and Fish Fund, etc. Monies in an appropriated fund cannot be spent without legislative authority. If there are any questions as to whether or not a fund is appropriated, either contact the ADOA-GAO or the OSPB. You may also refer to the Appropriations Report published by the Joint Legislative Budget Committee Staff for guidance.

Funds

What is a Non-Appropriated Fund?

A non-appropriated fund is controlled by statute or other law rather than by the Legislature through the general or special appropriation process. A non-appropriated fund is controlled by the amount of cash that is in the fund and has continuous spending authority in that it does not require further legislative action. However, any disbursements from this fund must be for a valid public purpose and are subject to audit. Therefore, non-appropriated funds must be accounted for in the State Accounting System (AFIS). Non-appropriated funds include, but are not limited to, Federal Grants and Land Endowment Funds.

Funds

What is a Non-Reverting Fund?

A non-reverting fund is one in which its monies do not revert back to its original source.

Funds

What are the key Imprest Account Policies I should be aware of?

* Agency imprest accounts shall not exceed the amount authorized by ADOA-GAO. * An imprest account may only be established with the approval of the Department of Administration, General Accounting Office. * No disbursement may exceed $500. * Travel advances, expenses and reimbursements must not be paid from the imprest accounts. * The imprest account must be reconciled monthly by the agency. Additionally, annually, a copy of the June 30 bank and revolving fund reconciliations must be submitted to the ADOA-GAO Revolving Fund Coordinator for review; * The imprest account should never be used for making loans or any other unauthorized purpose. All imprest accounts are subject to audit by the Department of Administration who has the authority to request the return of the funds at any time. It is very important to review all other policies and procedures in section II., C., of the State of Arizona Accounting Manual to obtain a complete understanding of responsibilities related to imprest accounts.

Funds

What is a Reverting Fund?

A “Reverting Fund” is one that is usually appropriated and returns the unspent monies to its original source, often at the end of each fiscal year. A reverting fund may also return monies exceeding a particular cap in a fund as determined by the fund’s governing statute. This transfer is called a “revertment”. In most cases, the revertment is made to the General Fund but it can be to another fund providing that fund is the original source of the monies. In order to determine if a fund is reverting fund, either contact the ADOA-GAO or refer to the governing Arizona Revised Statutes.

Funds

How can I establish a new fund for my agency?

New funds are usually established through the legislative process by addition or amendment to the Arizona Revised Statutes. The Department of Administration is also given the authority to establish funds that are needed to carry out the requirements of the statutes. Periodically, an agency may also find it necessary to request that a new fund be created for accounting necessity or convenience. In order to create a new accounting fund, the agency must submit an application for the new fund to the ADOA-GAO giving the reason for the new fund along with the appropriate statutory reference. See the State of Arizona Accounting Manual for instructions on requesting establishment of funds.

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