TO DIRECT THE LEGISLATIVE AUDITOR TO DEVELOP A COMPREHENSIVE FINANCIAL MANAGEMENT SYSTEM FOR APPROPRIATED FUNDS OF CITIES OF THE SECOND CLASS AND INCORPORATED TOWNS.

HB 1311 requires Arkansas's Legislative Auditor to create a standardized "uniform chart of accounts" for cities of the second class and incorporated towns. This system will standardize how these local governments track and report their public funds, including revenue, spending, and balances. Key features include uniform account coding, detailed budgeting tools, and clear breakdowns of expenditures by department and purpose. The bill mandates that cities implement this system within 36 months of the law taking effect. The change directly affects city administrators and finance departments in these municipalities, aiming to improve financial transparency and reporting consistency.