Arkansas Code
Subchapter 9 - The Arkansas Teachers' Salary Law
§ 6-17-907. Funds generally

(a) The county treasurer of each county in the state is directed to establish for each school district for which he or she is treasurer the following funds:
(1) The teachers' salary fund;
(2) Operating fund;
(3) Building fund;
(4) Debt service fund;
(5) Capital outlay fund; and
(6) Consolidated federal grants fund — Control.

(b) The county treasurer shall credit to the operating fund all other revenues not earmarked for the building fund, debt service fund, capital outlay fund, or consolidated federal grants fund.
(c) The county treasurer shall credit to the building fund those funds received:
(1) Through the sale of bonds or otherwise; and
(2) From insurance collected for damages to school property except when the property damages have been repaired out of the operating fund which will be reimbursed by the insurance proceeds.

(d) The county treasurer shall credit to the debt service fund revenue from any continuing levy for the retirement of bonded indebtedness.
(e) The county treasurer shall credit to the capital outlay fund any revenue specifically dedicated for capital outlay fund purposes.
(f) The county treasurer shall credit all the various federal funds to the consolidated federal grants fund unless otherwise specifically designated by the Division of Elementary and Secondary Education.
(g) The county treasurer charged with custody of the aforementioned consolidated federal grants fund shall be responsible only for the combined federal funds in his or her possession without regard to the various approved projects and limitations within the total federal allocations to the school district.
(h) Accountability and separability of various projects shall be the responsibility of each school district.
(i) The approved budget for the school district shall be used as a guide by the county treasurer in the settling of these funds.
(j) The local board may authorize the county treasurer to transfer funds from the operating fund to the teachers' salary fund.
(k) The county treasurer may request representatives of Arkansas Legislative Audit or the division to assist in establishing and crediting the various percentages of revenue to the respective funds.
(l) When a school district has a school district treasurer, the county treasurer may establish for that school district only the fund or funds needed to properly note revenues received for the school district and disbursements made to the school district.
(m)
(1) If a school district uses a computerized accounting system that properly segregates revenues and disbursements by type and fund in accordance with state law and Arkansas Legislative Audit requirements, the school district may request that the county treasurer, serving as school district treasurer, receive and disburse all funds from one (1) operating account.
(2) The request shall be made in writing by the superintendent of the school district to the county treasurer.