I need to track Unemployment Insurance for my employees and need to enter a limit and a tax rate. How do I set this up in Enhanced?

Go to the System Utilities module – Data Entry tab – Add/Edit State Name & Sales Tax Specs. Select the state (i.e. NY). Enter the Unemployment Limit (ex. 8500) and the Unemployment Rate (ex. 2.5). Click Save then Exit. Now, go to the Payroll module – Reports – FUTA/SUTA. Check the State Earnings Report box and click OK

Arkansas Fund Accounting for Arkansas Government

Demystifying Fund Accounting for State Governments

Fund accounting might not be the most glamorous or conversational topic, but it is the financial backbone of how state and local governments operate. For a state like Arkansas, which manages billions of dollars in public resources annually, this accounting method is absolutely essential for maintaining fiscal responsibility, strict legal compliance, and public trust.

Let’s break down exactly what fund accounting is, why it exists, and how it directly benefits the Natural State.

What is Fund Accounting?

To understand fund accounting, it helps to compare it to private-sector accounting. Private businesses generally use a single, overarching general ledger to track all of their money. Their primary goal is profitability, so revenue flows in, expenses flow out, and whatever is left at the bottom line is profit. It is like one giant swimming pool of money.

Governments and non-profits do not exist to make a profit; they exist to provide services, and they are legally bound to spend money exactly how the law dictates.

Therefore, instead of one giant pool, fund accounting is like a collection of separate, sealed buckets.

Each bucket represents a specific “fund” with its own dedicated revenue stream, its own set of expenses, and its own self-balancing set of books (assets, liabilities, and fund balances). When a state receives money, it legally cannot just throw it all into one big pile. The funds must be segregated based on their mandated purpose. For example, a gas tax intended for road repair goes into a Highway Fund bucket, and it is legally restricted from being used to pay for a state park’s operational costs.

Why is Fund Accounting Important?

Strict Legal Compliance: State and federal laws dictate exactly how certain tax revenues, fees, or grants must be spent. Fund accounting physically and systematically ensures governments don’t accidentally (or intentionally) spend restricted money on general, unrelated expenses.
Accountability and Transparency: It allows citizens, auditors, and lawmakers to track exactly where every taxpayer dollar comes from and where it goes. It makes the complex machinery of government finances measurable.
Preventing Deficit Spending: By walling off resources into specific funds, a government can ensure that a financial shortfall in one department doesn’t secretly drain the reserves of another critical service.

How Fund Accounting Powers the State of Arkansas

For Arkansas, Arkansas fund accounting isn’t just an accounting best practice—it is woven into the very fabric of state law, specifically overseen by the Department of Finance and Administration (DFA) and the Office of Accounting. Here is why it is particularly critical for Arkansas:

The Arkansas Revenue Stabilization Law: Arkansas is somewhat unique in its incredibly strict approach to balanced budgets. The state’s Revenue Stabilization Act distributes general revenues into specific, prioritized state funds (such as the Public School Fund, the Department of Human Services Fund, or the State General Government Fund). Fund accounting is the exact mechanical framework the State Treasurer uses to ensure these billions of dollars are correctly allocated each month and that the state never spends money it does not have.
Tracking Federal Grants and Aid: Arkansas relies heavily on federal funding for massive programs, ranging from Medicaid to infrastructure to education (such as the Childcare Block Grant or Title I funds for schools). The federal government requires strict tracking of every single cent. Fund accounting provides the “Special Revenue Funds” necessary to isolate these federal dollars, proving during Legislative Audits that Arkansas used the money exactly as Washington intended.
Managing Complex Infrastructure via AASIS: Arkansas uses a massive enterprise software system called the Arkansas Administrative Statewide Information System (AASIS) to manage its books. AASIS relies entirely on fund accounting principles to track the budgets of over 200 state agencies, boards, and commissions. Whether it is tracking the Motor Vehicle Acquisition Revolving Fund or the County Aid Fund, the state relies on fund accounting to process thousands of daily transactions cleanly and accurately.
Empowering Local Municipalities: Fund accounting applies far beyond the state capitol in Little Rock. All 75 counties and 500 incorporated cities in Arkansas rely on it. When the state Treasurer distributes “turnback funds” (state-collected taxes returned to local municipalities), local governments use fund accounting to separate their general operating budgets from specific, restricted accounts like municipal street or road funds, ensuring they pass their annual reviews by the Arkansas Legislative Audit.

The Bottom Line for Arkansans

Ultimately, fund accounting acts as a powerful financial safeguard. It guarantees that when Arkansans pay their taxes, the money earmarked for educating children, protecting public health, or paving state highways is protected by a rigid, transparent structure. It turns complex legislative promises into an auditable financial reality.