We put the IT in city®

CitySmart Blog

Wednesday, March 8, 2017
Dave Mims, CEO

Dave MimsSB 138, introduced in the Arkansas State Legislature on January 17, 2017, was passed in the Arkansas Senate on March 6 and now proceeds to the House. Why is SB 138 so important? And why are we, a municipal-focused technology company, pointing it out?

The bill states that an Arkansas municipal charter can get revoked (yes, revoked!) if the Legislative Joint Auditing Committee finds two incidents of non-compliance with accounting procedures in a three-year period. Revoking a charter is serious, rare, and extreme. That’s pretty much the end of your municipality.

The Arkansas Legislative Audit (ALA) includes both general controls and application controls around information systems. For municipalities, accounting systems are often the most important information system they oversee.

According to the ALA:

  • General Controls are mechanisms established to provide reasonable assurance that the information technology in use by an entity operates as intended to produce properly authorized, reliable data and that the entity is in compliance with applicable laws and regulations.”
  • Application Controls relate to the transactions and data for each computer-based automation system; they are, therefore, specific to each application. Application controls are designed to ensure the completeness and accuracy of accounting records and the validity of entries made.”

While this bill has yet to pass the Arkansas House and get signed into law, its appearance and passage by the Arkansas Senate is a sign that municipalities are being held more—not less—accountable for information security, compliance, and best practices related to information technology.

Even if you’re not an Arkansas municipality, you should still get ahead of the curve. Federal and state laws that urge stronger technology-related compliance and best practices seem inevitable.

In the meantime, you can track the Arkansas bill and read up on the different components of what the ALA examines in its audit.

Concerned about the state of your information security or compliance with the law? Reach out to us today.