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
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:
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.
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