§320.2. Classification of revenues; escrow funds; reports of escrow funds and agency accounts

A. The division of administration, office of statewide reporting and accounting policy, shall develop a policy manual for the classification of state revenues which shall define the revenues being classified, and the procedures necessary to provide uniformity in the classification of revenues as statutory dedications, fees and self-generated revenue, state general fund, interagency transfers, federal funds, or other appropriate categories. The manual shall be sent to the statewide elected officials for their comments prior to submission to the Joint Legislative Committee on the Budget. The manual shall provide a description of all monies that may be deposited into an escrow fund, including monies required to be deposited into a dedicated account, or monies whose ownership is in dispute or otherwise restricted from use. The manual shall also provide a description of all monies that should not be held in an escrow fund, including any state monies. The manual shall contain policies relative to the creation of an agency account for the deposit of fees and self-generated revenues. Prior to implementation of the manual, the office of statewide reporting and accounting policy shall submit the proposed manual to the Joint Legislative Committee on the Budget for review and approval.

B. No state money shall be held in an escrow fund unless the state agency immediately notifies the Cash Management Review Board in writing of the state funds held in escrow and keeps detailed records accounting for such state funds, the restrictions requiring the funds to be held in the escrow account, and the estimated duration of the restrictions. No state money in an escrow fund shall be withdrawn from the state treasury by a state agency nor transferred from an escrow fund to a state agency's account unless:

(1) There is a specific appropriation in the current fiscal year authorizing the withdrawal or transfer of the monies.

(2) There is no specific appropriation authorizing the withdrawal or transfer of the monies and the commissioner of administration and the Joint Legislative Committee on the Budget approve a budget adjustment if the legislature is not in session.

(3) Any monies determined to have been paid by a nonstate individual or entity to the state in error or in cases in which a refund of the amount paid to the state is due, may be withdrawn from the escrow fund without a specific appropriation and returned to the nonstate individual or entity.

C.(1) No agency shall establish an escrow fund unless the Cash Management Review Board has authorized the establishment of the escrow fund in writing and notice of the establishment of the escrow fund is given in writing to the commissioner of administration and to the Joint Legislative Committee on the Budget.

(2) The state agency which requested the establishment of the escrow fund, and agencies which as of January 1, 2017, have established an escrow fund, shall submit a monthly report to the state treasurer who shall compile the agency reports into one report and submit it to the Cash Management Review Board and the Joint Legislative Committee on the Budget setting forth the date of the establishment of the fund, the beginning balance, any additional deposits to the fund including the date and the amount of the deposit to the fund, the date and the amount of any withdrawal from the fund, the balance in the fund as of the date of the report, and any other information requested by the Cash Management Review Board or the Joint Legislative Committee on the Budget. The report shall also include any journal vouchers or other transfer requests of any classified monies back into the escrow fund.

(3) State agencies which as of January 1, 2017, have an agency account established in the state treasury, shall give a quarterly report to the state treasurer, regarding fees and self-generated revenues which have been deposited, transferred, or withdrawn from the account. The state treasurer shall compile the agency reports into one report and shall submit the quarterly report to the Cash Management Review Board and the Joint Legislative Committee on the Budget. The report shall set forth:

(a) The beginning balance of fees and self-generated revenues in the agency account.

(b) The date and amount of deposits of fees and self-generated revenues to the agency account during the reporting period.

(c) The date and amount of any transfer or withdrawal of fees and self-generated revenues from the agency account during the reporting period.

(d) The balance in the agency account as of the date of the report.

(e) Any other information requested by the Cash Management Review Board or the Joint Legislative Committee on the Budget.

Acts 2017, No. 361, §2, eff. July 1, 2017.