text:
Arizona Department
of Administration
A Guide to State
Administrative Requirements
for Small and Medium-Sized Agencies
February, 2002
(602) 542-1500
February, 2002
Dear Small and Mid-sized Agency Director:
In May 2000, I asked the Governor's Office for Excellence in Government (OEG) to examine small- and
mid-sized agencies' efforts to meet state administrative requirements. The objective of this project was to
produce recommendations for improving the assistance available to small and mid-sized agencies in fulfill-ing
those administrative requirements. Particular attention was to be paid to the role of the Arizona De-partment
of Administration (ADOA) in assisting the small and mid-sized agencies with their requirements.
The administrative requirements include:
· Capitol Mall Personnel Office (CaMP) personnel procedures,
· General Accounting Office (GAO) accounting procedures,
· Governor's Regulatory Review Council (GRRC) rule writing procedures,
· ADOA Information Services Division (ISD) information technology procedures,
· State Procurement Office (AzSPO) purchasing and contracting procedures,
· the biennial budget request submitted to the Office of Strategic Planning and Budgeting (OSPB),
· the annual strategic plan submitted to OSPB,
· the annual agency information technology plan submitted to the Government Information Technology
Agency (GITA),
· Secretary of State procedures for public meetings, and
· Library, Archives and Public Records (LAPR) records management.
The OEG report, titled Small & Mid-Sized Agencies and State of Arizona Administrative Requirements, identified
a gap between the actual and expected levels of knowledge required to meet administrative requirements.
The creation of this booklet, A Guide to State Administrative Requirements for Small and Mid-Sized Agencies,
was among the recommendations outlined in the OEG report to reduce that gap. We consider this Guide
to be a starting point to learn about ADOA services in order to assist you in your efforts to comply with the
administrative requirements. This Guide also includes information on the administrative requirements of
other external state government entities who require information. I would like to thank all of the offices in-volved
for their participation in the development of this Guide.
It is our hope that this guidebook will bridge the gap by providing the knowledge necessary for small- and
mid-sized agencies to fulfill the administrative requirements and procedures. However, I would like to em-phasize
that there is no substitute for formal training. Employees of small- and medium-sized agencies,
boards and commissions should take advantage of training opportunities as well as informal instruction
and meetings on requirements of State procurement, personnel, planning records management and rules.
It is the goal of all services within ADOA that this Guide will be the first step in providing you with great
customer service to assist you and your agency in complying with proper administrative procedures.
J. Elliott Hibbs
Table of Contents
· Capitol Mall Personnel Office (CAMP) .............................................. 3
· General Accounting Office (GAO)...................................................... 6
· Governor's Regulatory Review Council (GRRC)...........................21
· Information Services Division (ISD)..................................................25
· Risk Management ..................................................................................27
· State Procurement Office (AzSPO) ..................................................32
· Government Information Technology Agency (GITA)...................35
· Governor's Office of Strategic Planning and Budgeting (OSPB) .38
· Arizona Secretary of State (SOS)......................................................41
· State Library, Archives and Public Records (LAPR)........................45
The Arizona Department of Administration (ADOA) was established by the Arizona State Legislature
in July 1973 to provide support services to the operation of state government. Consolidating common
support services into one agency allows other state agencies and their employees to focus their re-sources
and efforts on meeting the various needs of the citizens of Arizona. The Arizona State Legis-lature
funds the majority of ADOA programs with a budget over $480 million.
ADOA is composed of the Director's Office and seven divisions: Financial Services, General Serv-ices,
Human Resources, Information Services, Management Services, Strategic Administrative Serv-ices
and Capitol Police.
Each division consists of programs which provide various services. Some of the 106 services ADOA
provides by division are:
Financial Services Division
Administers the statewide payroll system, processes vendor warrants, operates and maintains the
State's financial system (AFIS), establishes and administers accounting policies and procedures, pre-pares
statewide financial reports for the State of Arizona, delegates procurement authority to State
agencies, establishes and administers contracts for commodities and professional services, establishes
procurement rules, procedures and practices, provides technical assistance and guidance relating to
procurement statutes, rules and procedures, conducts procurement training, investigates and settles all
claims relating to state property and liability issues, investigates and settles all workers' compensa-tion
claims filed by State employees, and assists State agencies in reducing the frequency and cost of
General Services Division
Maintains ADOA-managed office buildings (plumbing, electrical, heating/cooling, and general main-tenance),
provides custodial services, maintains landscaping, inspects facilities, manages the modifica-tion
of office space, oversees private sector office leases for agencies, manages space utilization of
ADOA office buildings, manages construction and renovation projects (elevators, roof replacements,
etc.), and provides design and construction of new prisons and new state office buildings.
Human Resources Division
Establishes and administers the State's personnel rules and policies, provides a wellness program, ad-ministers
the State's health, life and dental insurance program, and provides personnel services in the
areas of employment, classification, compensation and employee relations.
Information Services Division
Provides mainframe and mid-range processing, manages help desk, provides statewide telecommu-nication
services, provides policy guidance and project support for the State's 9-1-1 program, and pro-vides
application development and support for statewide systems such as the financial system and the
State's personnel and payroll system.
Management Services Division
Provides procurement, accounting and budgeting for internal support to ADOA divisions, administers
travel reduction programs, administers the rulemaking process, provides assistance to agencies, boards
and commissions in complying with current disability laws, manages a fleet of vehicles, disposes of
state and federal surplus property, provides administrative support to some licensing agencies, pro-vides
printing and copying services, provides office supplies through stockroom service, collects and
distributes U.S. and interagency mail, and maintains and repairs small office machines.
In addition, the State Boards Office (SBO) provides centralized administrative support services to
small licensing agencies housed within the SBO suite located at 1400 W. Washington. The types of
services provided include receptionist, accounting, payroll, personnel, benefits coordination and
agency liaison. The SBO also provides financial and human resource assistance to several other small
agencies located outside of the SBO suite. All services are provided to agencies on a fee-for-service
basis. To obtain more information about how the SBO can assist your agency, please call (602) 542-
Strategic Administrative Services Division
Provides statewide services in the area of recognition events and incentive programs. Also provides
internal services in strategic planning, customer feedback systems, training, recognition, and other per-formance
excellence assistance.
Capitol Police
Provides law enforcement, public safety, crime prevention and security services on governmental
malls in Tucson and Phoenix.
As previously mentioned, the legislature created ADOA nearly 30 years ago to capitalize on the effi-ciencies
that can be gained by consolidated common support services in one central government
agency. The mission of ADOA reflects this purpose -- "to provide effective and efficient support serv-ices
to enable government agencies, state employees and the public to achieve their goals".
Whether ADOA is processing payroll, cleaning restrooms, constructing buildings, dispatching vehi-cles,
picking up surplus property, or conducting a wellness class, state agencies and their employees
require ADOA to provide services that are:
· Accessible (ease with which the customer can contact the service provider);
· Timely (degree to which the service is accomplished within the customer's requested time frame
and/or within the negotiated time frame);
· Of high Quality (extent to which the service met established or agreed-upon standards or other
essential characteristics); and
· Cost-effective (degree in which the cost of service is appropriate to the value received).
The following section lists questions that are frequently asked by small- and mid-sized agencies about
the ADOA services that oversee administrative requirements. The responses follow each of the ques-tions.
Keep in mind that the responses are considered as starting points for a small- to medium-sized
agency to gather information about ADOA services and other key agencies and their requirements.
There is no substitute for formal training and we encourage agencies to continue to take advantage
of all training opportunities.
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Capitol Mall Personnel Office (CaMP)
What does the CaMP Office do?
The CaMP provides decentralized human resource service to all state agencies in the ADOA Person-nel
System. The eight largest State agencies have decentralized Human Resources Offices located on
site at each of their facilities. The small- and medium-sized agencies receive human resource services
from the Capitol Mall Personnel Office.
The services provided vary, depending on agency needs, and may include some or all of the following:
· Serve as the liaison between agency management and ADOA Human Resources Division.
· Ensure compliance with federal and state laws, Personnel Rules, policies and procedures.
· Provide lists of qualified candidates to fill vacant positions.
· Provide data entry services (HRMS).
· Consult and advise agency management regarding classification action and employee relations
· Audit agency personnel actions.
· Explain benefits, enroll new employees and distribute benefits information.
· Approve special entrance, promotional rates, administrative adjustments, donated annual leave
actions and assist in administering reduction in force (RIF) activities.
· Provide template and/or NCR forms regarding personnel action requests.
· Meet with agency employees and discuss concerns and their rights.
· Provide information about training and employee development programs.
· Work with agency management in responding to Equal Employment Opportunity Commission
· Assist agencies in resolving management and employee issues.
How do I find the CaMP Office?
The CaMP Office is located on the second floor of the Capitol Executive Tower, 1700 West Washing-ton,
Room 232, Phoenix, Arizona 85007. Parking is available on the west side of 18th Avenue be-tween
Jefferson and Washington Streets.
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How much does the CaMP Office service cost?
There is no charge for the CaMP Office services. The ADOA Human Resources Division through pro
rata and legislative appropriation supports the cost of operating the CaMP Office. State Service agen-cies
within the covered service contribute a pro rata share of the overall cost of personnel administra-tion
services provided by the ADOA. (See: A.R.S. § 41-764)
What is the ADOA Personnel System?
This personnel system, which is one of 11 personnel systems in state government, consists of all agen-cies
subject to the provisions of Title 41, Chapter 4, Articles 5 and 6 of the Arizona Revised Statutes.
It covers approximately 92 agencies, boards and commissions that employ over 37,400 employees.
Approximately 30,600 of these individuals are permanent full-time employees who are covered by the
Personnel Rules.
Are all employees covered by the Personnel Rules?
An employee is covered by the State Service merit system absent a constitutional limitation or unless
the employee holds a position that is exempted pursuant to A.R.S. § 41-771. Positions exempted pur-suant
to this law are frequently referred to as "uncovered" positions. Conversely, positions estab-lished
within the merit system and subject to the Personnel Rules are "covered" positions.
What are the Personnel Rules?
By statute, the ADOA is responsible for administering the State Service Merit System and for devel-oping
rules for the operation of the system. The rules are promulgated through the Administrative
Procedures Act and have the effect of law. The agencies and employees affected by the Personnel
Rules are referred to as "covered" employees and agencies. The Personnel Rules establish the guide-lines
that must be followed regarding employment, classification and compensation, conduct, griev-ances,
discipline and separations. Copies of the rules are available on CaMP's web site through a link
with the Secretary of State's Office at www.hr.state.az.us.
What determines the types of actions that are required to be processed through CaMP?
The respective needs of the agency, the type of HR function and the established procedures determine
the types of actions that involve the CaMP Office. Agencies with trained HR personnel and the neces-sary
equipment perform designated HR functions on site. Other HR functions, such as classification
actions are processed through the CaMP Office. Consultant services are available on all HR func-tions,
regardless of where the action occurs.
Where can small- and medium-sized agencies find assistance in developing agency policies?
For many of the policies required by the Personnel Rules and policies common throughout state gov-ernment,
the CaMP office can provide a template that allows the agency to tailor the policy to fit the
agency's organizational structure and needs. CaMP also will provide consultant and/or referral serv-ices
upon request.
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How does the CaMP Office communicate with so many agencies?
Each month the CaMP agencies meet at a central location for special presentations, to discuss recent
developments and issues of interest to all state agencies. Issues and current developments are also
covered in the monthly CaMP Newsletter, and urgent issues affecting all agencies are dealt with im-mediately
via an e-mail to all CaMP agencies.
How do I get help with filling a vacant position in my agency?
The CaMP Office can provide assistance with promoting an internal candidate, obtaining a hiring list
from the statewide applicant database, or developing a vacancy announcement to advertise through an
agency's web site, the ADOA web site, or advertisements in one or more newspapers.
How do I establish or reclassify a position?
Authorization to establish positions in state agencies is granted by the Legislature. When a new posi-tion
is authorized, the appointed agency representative completes a Position Description Questionnaire
(PDQ), an SF 302 form, and an organizational chart that reflects the reporting relationship of the posi-tion
to other positions in the organization. (The PDQ is available under Class/Comp on the HR web
page. The SF 302 forms are available from the CaMP Office.) Pursuant to Personnel Rule R2-5-301.
F, "If a material and permanent change has taken place in the duties and responsibilities of a position,
an agency head shall report this change to the Director who may order a reclassification of the posi-tion.
The employee in the position at the time of reclassification shall be entitled to continue to serve
in that position." If there is an incumbent at the time that a reclassification request is submitted, the
incumbent and the supervisor should sign and date the PDQ form. The complete establish/reclass
package is then submitted to the CaMP Office.
How does an agency get help with the various personnel functions and services provided by the CaMP Office?
The CaMP Office is staffed by an HR Manager, HR Analysts, and support personnel who are avail-able
to answer your questions.
The CaMP Office provides a variety of services to over 85 small- and medium-size agencies through-out
state government. Many of these agencies perform certain HR functions in house and rely on the
CaMP Office primarily for the distribution of pertinent HR information, the delivery of consultant
services, staffing and HRMS system input services. However, there are some review and approval
functions that must be processed by the CaMP Office. If your agency needs Human Resources assis-tance,
or would like to find out more about the services that are available, please contact them at (602)
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General Accounting Office (GAO)
What does the GAO do?
The GAO provides financial information, services and technical assistance to State and Federal gov-ernment
agencies, financial institutions and other interested public or private entities. Key GAO serv-ices
· Operating the Arizona Financial Information System (AFIS) – the State's accounting system; op-erating
AFIS extends to maintaining, modifying and enhancing the system and providing agencies
with financial information;
· Administering Statewide payroll services, including the payroll portion of the Human Resources
Management System (HRMS), direct deposits, garnishments, levies, and bus cards;
· Providing Statewide accounting policies and procedures according to State and Federal laws, rules
and regulations;
· Signing and distributing vendor warrants to State agencies;
· Providing Central Service Bureau (CSB) services (data input, bookkeeping, reporting and consult-ing)
to State agencies in accordance with Interagency Service Agreements;
· Administering security for Statewide financial applications (primarily AFIS and HRMS) to help
mitigate the State's risk of financial errors and irregularities;
· Monitoring and reporting on State appropriations to provide agencies with timely and accurate
spending authority and management information for decision-making;
· Performing internal audits, reviews, investigations, and providing technical assistance to agencies.
These functions assist agencies in problem resolution and enhance the financial integrity of State
agencies as well as the State overall;
· Providing Statewide travel policy and procedures training to both agency staff and travelers; and
· Producing annual Statewide financial reports and statements, including but not limited to the
Comprehensive Annual Financial Report (CAFR), the Cash Basis Annual Financial Report (AFR)
and the Single Audit.
How can I contact GAO?
Our main phone number is (602) 542-5601. Our main fax number is (602) 542-5749. The GAO web
site is at www.gao.state.az.us. The GAO office is at the State Capitol Complex, 1700 West Washing-ton,
Room 290, Phoenix, AZ 85007. Each agency is assigned a liaison from GAO to work with, so
you may also have a telephone number and fax to directly contact your liaison.
How much does GAO charge for services?
GAO services are free, except for the following:
· CSB Services (see next section for additional information)
· Hard copies of certain reports, manuals, policies, procedures and forms. These same items are
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available for free, if downloaded from Control D for accounting related reports (further defined
below) and our web site. Hard copy reports are sent to agencies who do not have access to AFIS
and Control D at no charge.
What is the CSB?
The Central Service Bureau assists small and medium State agencies with financial consultation and
financial management on a fee-for-service basis. The services include but are not limited to: a full-accounting
service, assistance with AFIS/HRMS transaction processing, consulting on financial and
management matters, budget preparation, appropriation and budget monitoring, financial planning and
analysis, reconciliations, reporting to outside entities (including Federal reporting), and management
reporting (includes ad-hoc and mainframe queries for the production of customized reports and picto-rial
graphs). To obtain more information about how the CSB can assist your agency, please see our
web site at www.gao.state.az.us or call (602) 542-7048.
What resources are available to me to learn about my fiscal responsibilities as an agency head?
Although this handbook is a good start to help you understand your fiscal responsibilities as an agency
head, it is not all-inclusive. This GAO section contains summarized information and some frequently
asked questions and answers. To view additional critical information for agency heads to be aware of,
please visit our GAO web site at www.gao.state.az.us for a more expanded (yet summarized) version
of your fiscal responsibilities. Other sources to utilize are the enabling Arizona Revised Statutes (A.
R.S.) for your agency, A.R.S. Title 35 for general fiscal responsibility, the State of Arizona Account-ing
Manual which contains the State's accounting policies and procedures, GAO Technical Bulletins
and your agency's GAO liaison. Most of these resources are available on our web site. The GAO
also hosts monthly Chief Financial Officer (CFO) meetings.
Additionally, all persons responsible for complying with statewide accounting policies and procedures
are required to register on-line to the GAO web site to automatically obtain notification of new or
changed accounting forms and policy documents. The publication to the web site is the official and
often only means of notification. If you or someone on your staff ever have an accounting-related
question and are not sure where to start or go to, please do not hesitate to contact our office at (602)
542-5601 or your GAO liaison.
As an agency head, could I be held personally liable for spending public monies?
Yes. Public monies cannot be spent without legal authorization. At a minimum, it is very impor-tant
to be familiar with the following laws regarding the spending of public monies (a listing of
these statutes and their synopsis can be found on our web site): A.R.S. § 1-254, A.R.S. § 35-142.01,
A.R.S. § 35-154, A. and B., § 35-196, §35-212, § 35-301, and the Arizona Constitution Article 9, Sec-tion
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What computer programs does GAO have available to help with accounting?
GAO uses (or makes available) four different, but interrelated, programs for accounting. These are:
· AFIS: The Arizona Financial Information System (AFIS) is the official computerized accounting
system and record of fiscal information for the State. All State agencies must process their ac-counting
data in AFIS. An agency can get on-line access to enter data into AFIS, once the agency
has set up its accounting structure on AFIS and staff have taken the AFIS courses. There are
many agency accounting reports produced from AFIS, some of which are standard. Please contact
your GAO liaison to help determine which are the best for your agency. The agency must provide
and maintain the computer hardware and port at its own expense.
· Control D: Control D is a mainframe feature allowing free on-line viewing and remote printing of
agency reports on both AFIS and HRMS. Control D-PC is available for a licensing fee and allows
the agency to build custom reports on-line. Again, the agency must provide the necessary com-puter
hardware including a printer and a sufficient operating system at its own expense.
· HRMS: The Human Resources Management System (HRMS) is a mainframe program main-tained
by GAO and CaMP. In addition to containing the personnel records of State employees,
HRMS also accepts and processes the data on time and attendance needed to run payroll. As with
the AFIS system, an agency can go on-line with HRMS after staff have obtained the required
training. There are many agency personnel and payroll reports produced from HRMS, some of
which are standard. Please contact your GAO or Human Resources liaison to help determine
which are the best for your agency. The agency must maintain the necessary hardware and operat-ing
· FAS: The Fixed Asset System (FAS) is a subsystem of the AFIS system where agencies enter
data on all capital assets (more than $5,000) owned by State agencies. Agencies may use FAS or
their own internal system to inventory non-capital assets (less than $5,000). The FAS system cal-culates
depreciation and satisfies the year-end inventory required by GAO.
If your agency does not have electronic access to AFIS or HRMS, you may enter into an Interagency
Service Agreement with the CSB to process your accounting and payroll transactions for a fee.
How can my agency get training to use these programs?
Training for all GAO programs is offered through the Arizona Government University (AzGU). You
may register for AFIS and HRMS training classes on-line at www.wgu.edu or call the registrar at (602)
How can I record accounting data for my agency in AFIS?
First and foremost, the accounting structure of an agency must be set up on AFIS. How the structures
are established depend upon your agency's applicable reporting requirements and controls. For exam-ple,
the program structure is generally established according to how agencies submit their budgets.
An agency may also set up an organization structure that may be based on the organization chart of the
agency. Both types of structures are used to store and report financial information on state agencies.
Your GAO liaison may assist you with any questions you may have relating to setting up or changing
your agency's structures. A current listing of GAO liaisons can be found on our web site.
Page 8
Second, the agency must obtain AFIS application security to process accounting data up to and includ-ing
obtaining Warrant Authorization Cards (WACs) to pick up vendor warrants. Please see the AP-PLICATIONS
SECURITY section for more information.
Processing accounting transactions on AFIS requires appropriate knowledge and understanding of the
State's accounting policies and procedures. The ADOA-GAO establishes these accounting policies
and procedures, which can be found in the State of Arizona Accounting Manual. Because AFIS is a
complex accounting system, the ADOA-GAO also publishes an AFIS Reference Guide. Both of these
manuals can be found on our web site. It is highly recommended that persons involved in the process-ing
of accounting transactions attend the AFIS training classes.
What is the State's fiscal year? Why is July called the "thirteenth month"?
The State's fiscal year starts July 1 and ends the following June 30 (A.R.S. § 35-102). Your agency's
appropriation for the new fiscal year is loaded, and the first allocation is available on July 1, the first
month of each new fiscal year.
However, July also serves as the "thirteenth month" for the previous fiscal year, to give agencies and
GAO time to wrap up the previous fiscal year's accounting records. During the 13th month, all ac-counting
transactions for the previous year's activity should be processed on AFIS. While there are
ways to process previous fiscal year's activity after the 13th month (called administrative adjust-ments),
these require meeting A.R.S. §35-190 and A.R.S. §35-191 requirements and obtaining GAO
approval before they can be processed.
How do I know what our agency should do to close the fiscal year?
The GAO publishes a Fiscal Year Closing Instructions memorandum each March. These instructions
include the final deadlines of various accounting related transactions. This memo is also posted on
our web site.
Can I incur obligations after the close of the year?
Not if your agency's appropriation lapses (defined below), unless your agency meets the legal require-ments
outlined in A.R.S. § 35-190 and § 35-191 and has obtained prior approval from the Director of
the Department of Administration. Obligations may be incurred after the close of the year if the obli-gation
is being paid from a continuing appropriation (defined below). If you have any questions about
activities the agency may engage in after the year has closed, please contact your GAO liaison.
When does each month close on the State's accounting system for reporting purposes?
Annually the GAO publishes a memorandum containing a schedule of the month-end closings. This
memo is also posted on our web site. Generally, the month is closed on the first Friday after the first
business day of the next month. This ranges from the 2nd to the 8th.
Page 9
What is an appropriation?
An appropriation is the expenditure authority granted to a budget unit ("budget unit" is defined in the
State of Arizona Accounting Manual as "any department, commission, board, institution, or other
agency of the State organization receiving, expending, or disbursing funds or incurring obligations
against the State) by the Legislature.
For accounting and financial reporting purposes, all expenditures authorized by the General Appro-priations
Act, Capital Outlay Appropriations Act or other appropriation acts are classified as appropri-ated
What is a Lump Sum Appropriation?
A lump sum appropriation is made for a stated purpose or for a named budget unit without specifying
further the amounts that may be spent for specific activities or for particular objects of expenditure. A
lump sum appropriation is the least restrictive legislative authorization that an agency may receive.
Generally speaking, Capital Outlay appropriations are lump sum.
What is a Lump Sum Appropriation with Special Line Items?
A lump sum appropriation with special line items is a lump sum appropriation provided by the Legis-lature
that also contains specific expenditure/budgetary accounts that have been singled out through
the appropriation process to provide high visibility for certain types of expenditures. Also known as
lump sum appropriation with special below-the-line items.
What is a Modified Lump Sum Appropriation?
A modified lump sum appropriation is a type in which payroll expenditures/expenses are appropriated
by line item and all other operating expenditures/expenses are appropriated by lump sum. Typically,
the breakdown is Personal Services, Employee Related Expenditures, and All Other Operating Expen-ditures.
What is a Line Item Operating Appropriation?
A line item operating appropriation is an appropriation type in which all expenditures/expenses are
broken into specific categories with limitations on the amount of expenditure that can be incurred for
each. Typical categories are Personal Services, Employee Related Expenditures, Professional and
Outside Services, Travel In-State, Travel Out-of-State, Food (if applicable), Other Operating Expendi-tures,
and Equipment. This is the most restrictive of legislative appropriations.
What are the effective dates of appropriations?
Being aware of the effective date of an appropriation act is very important, especially if it is for a new
program or new appropriation for your agency. The effective date of an appropriation act depends on
the type of appropriation - General, Capital Outlay or Other Appropriation. The General Appropria-tions
Act generally has an effective date of July 1. The Capital Outlay Appropriations Act is generally
Page 10
effective July 1, or the date that the Governor signs the bill. Other Appropriation Acts are effective:
1) if there is an emergency clause, upon on the signature of the Governor, 2) immediately on two-thirds
majority vote of the Legislature, or 3) if there is no emergency clause, 90 days after the legisla-tive
session adjourns, unless there is a delayed effective date specified in the bill. If you have any
questions, please contact your GAO liaison.
What is the difference between lapsing and continuing appropriations?
Unless otherwise specified in the appropriation act, the authority for most appropriations that are un-expended
or unencumbered on June 30, lapses. ("Lapse" means that the appropriation ends due to the
passage of time.) This is called a "lapsing appropriation". If the appropriation is exempt from laps-ing,
it is called a "continuing appropriation". Per statute, appropriations for construction or permanent
improvements do not lapse until the purpose is accomplished, abandoned, or there is no expenditure or
encumbrance activity during a fiscal year. Otherwise, the Legislature retains for itself the authority to
repeal continuing appropriations. A State agency can also voluntarily revert appropriations that are no
longer necessary.
What safeguards are in place to make sure my agency's spending does not exceed the amount appropriated?
Your agency is responsible for reviewing, monitoring and controlling its internal budget to make sure
it does not exceed amounts appropriated. In addition to your agency's internal records, the GAO pro-vides
monthly reports to your agency to assist in this process: the Appropriation Activity Detail
(DAFR7470) and the Appropriation Activity Summary (DAFR7480). Agencies are responsible for
reconciling their internal records to the Statewide accounting system as it is the official record of the
State. Finally, the agency head is personally responsible for accounts being correct. If your agency
has any concerns of overspending, coordinate with the GAO, the Governor's Office of Strategic Plan-ning
and Budgeting (OSPB) and the Joint Legislative Budget Committee (JLBC) as appropriate.
As a self-supporting regulatory budget unit (e.g. 90/10 agency), can my agency legally expend more monies
than are appropriated by the Legislature?
No, unless otherwise provided by the Legislature, a special fund, self-supporting regulatory budget
unit shall not expend more monies than are appropriated by the Legislature for a fiscal year. (A.R.S.
What do I do if I think my appropriation may not be sufficient to get through the entire fiscal year?
Each month, the GAO furnishes each budget unit a report of its transactions by appropriation or other
fund source in a form that clearly and accurately shows the fiscal activity and condition of such appro-priation
or fund source. The budget unit is responsible for monitoring these reports. If a deficiency is
projected by the budget unit, it should immediately contact its GAO liaison for assistance. The re-sponsible
official for the budget unit will also be responsible for notifying the Governor, the Speaker
of the House of Representatives, the President of the Senate and the Chairman of the Joint Legislative
Budget Committee of the deficiency and reasons for the deficiency. Please see A.R.S. § 35-131, D
and E for additional details.
Page 11
What are and how can I request appropriation transfers?
Appropriation transfers are used to move spending authority from one expenditure class or subclass to
another or to transfer appropriations between or within programs. No transfer of any appropriation is
made until a review and a recommendation for approval or disapproval is made by the Office of Stra-tegic
Planning and budget (OSPB). Once received and approval or disapproval is recommended by
the OSPB, the designee of the Director of the Arizona Department of Administration (ADOA) grants
approval or disapproval and processes the request. No transfer of appropriations from payroll expen-ditures/
expenses (Personal Services and Employee Related Expenditures) may be made unless the
transfer is recommended by the Joint Legislative Budget Committee (JLBC) and approved by the Di-rector
of the ADOA as designated. (A.R.S. § 35-173)
If I have more cash than Appropriation, may I spend the extra money?
No. Appropriations are the expenditure authority granted to a budget unit by the Legislature. Your
budget unit cannot legally over-expend or over-extend an appropriation even though there is excess
cash. Per A.R.S. § 1-254 and § 35-154, agencies do not have the authority to over-expend or over-obligate
their appropriations. Any obligations in excess of a budget unit's appropriation authority are
not binding on the State and are the responsibility of the party incurring the obligation (i.e. the agency
If I have less cash than Appropriation, may I spend my complete appropriation?
No, especially if you are a self-supporting, regulatory budget unit (i.e., 90/10 board). Your budget
unit cannot spend an appropriation if there is not sufficient cash at any point in time. It is therefore
very important for your agency to not only monitor expenditures made against your agency's appro-priations,
but also the cash received recorded with the State Treasurer's Office on a continuous basis.
Actual cash flow for agencies vary from a steady monthly stream to possibly being non-existent for
several months and steady for other months. You can monitor your cash balance on a daily basis on
the Cash Control Summary Inquiry Screen, screen 57, on the Statewide accounting system or monthly
via AFIS report DAFR 6390, General Ledger Activity.
What is an encumbrance?
An encumbrance is a reservation of funds in anticipation of an expenditure. An encumbrance reduces
the available appropriation and the available allotment. An encumbrance document shall be processed
in AFIS before a budget unit issues a purchase order to a vendor to cover an obligation against appro-priations,
actual or anticipated. Encumbrance documents are not required for gross payrolls and re-lated
employee expenses of a budget unit or under procedures prescribed in the State of Arizona Ac-counting
Manual for expenditures not exceeding $1,000. (A.R.S. § 35-151)
What is an allotment? How is it different from an appropriation?
Your appropriation is the total amount of money your agency (or budget unit) may spend in a given
fiscal year. An allotment is that portion of your appropriation made available to spend within a given
time frame, usually a fiscal quarter. At the beginning of each quarter, your agency is allotted about
25% of your total appropriation. However, to give agencies enough money to cover the annual
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"sweeps" for rent and insurance (risk management fees), the first quarter allotment is usually the high-est.
The money allotted accumulates over the fiscal year; if you don't spend all of your first quarter
allotment, you will have both that remaining money and the second quarter allotment to spend during
the second quarter. No budget unit may over-spend its available (accumulated) allotment. If you think
you need an advance on your allotment, contact both your OSPB and GAO liaisons for information on
how to make that request.
To help keep track of your agency's spending, refer to the AFIS report titled: Appropriation Activity
Summary (DAFR7480), which shows expenditures compared to your agency's appropriation.
If you have any questions or concerns regarding administrative adjustments, relief bill items, or any other
appropriation related items, please contact your GAO liaison or our web site. For budget information,
please see the OSPB section of this handbook.
What are internal controls and my responsibilities for maintaining internal controls for my agency?
The management of the State is responsible for establishing and maintaining an internal control struc-ture
designed to provide reasonable assurance that: 1) the assets of the State are protected from loss,
theft or misuse; and 2) adequate accounting data are compiled to allow for the preparation of financial
The concept of reasonable assurance recognizes that: 1) the cost of the control should not exceed the
benefits likely to be derived, and 2) the valuation of costs and benefits requires estimates and judg-ments
by management.
The various internal control categories that agency management is responsible for maintaining are:
general internal controls; cash and investments; inventories and fixed assets; purchasing, receiving
and expenditures; leases and long-term debt; revenues; personnel and payroll, and Electronic Data
Processing (EDP) application control. There are some additional internal control categories for re-ceiving
Federal financial assistance.
Management attitude is the best internal control. The risk of loss, theft or misuse is greatly increased
with a lax management attitude. Internal controls should also be designed to mitigate risk. An effec-tive
system of internal controls will not eliminate all risk, that would be too inefficient. Such a system
should, however, provide adequate safeguards to reasonably mitigate risk.
The State of Arizona Accounting Manual prescribes the specific control procedures that are to be followed
for each of the above categories of Internal Control. It is also recognized that some of the internal control
categories listed above do not apply to all agencies. For example, not all agencies collect revenue. How-ever,
each agency is required to follow the internal control procedures for the categories that it does have.
If there are any questions, contact the ADOA-GAO.
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What are my agency's roles and responsibilities in maintaining security and internal controls as it relates to
systems applications?
Security is the joint responsibility of the agency and the Department of Administration. Agency manage-ment
is responsible for maintaining proper internal controls. These controls must be in place to ensure the
accuracy and integrity of the agency's financial information. Segregation of duties should be maintained to
the extent possible. When this is not possible, the agency must have established alternative procedures to
mitigate the risk of unauthorized transactions. These alternative procedures must be submitted in writing to
the ADOA-GAO Security Group when access to the AFIS or HRMS applications is desired.
· Agency Security Administrator. The agency head must designate an individual to act as the
agency's AFIS and/or HRMS security administrator to coordinate security issues with the GAO
Security group and the agency's other security administrator if applicable.
· Signature Authorization. Each agency must provide form GAO-03 listing those individuals that
the agency authorized to sign various types of documents. The form should be approved and
signed by the agency head, and should be reviewed and updated on an annual basis. Please re-member
to make changes as appropriate (e.g., turnover, etc). In addition, each agency head must
have on file at the GAO a letter of appointment from the Governor (or other applicable appointing
· Warrant Authorization Cards (WAC). The WAC (also known as "gold card" because of its color)
enables an employee to pick up warrants at the GAO. Applications must be approved by the
agency head and sent to the GAO Security Group using form GAO-09 for each employee the
agency authorizes. Other arrangements for warrant pickup, such as shuttle services or US mail
may be arranged upon written request and acceptance of responsibility for loss by the agency
head. The agency head may pick up warrants at any time without a WAC, provided his/her iden-tity
may be established through a valid picture identification card (such as State ID/key card or
Arizona driver's license).
How can my agency obtain an imprest account (petty cash) or adjust it?
To request a petty cash account or to make changes to an existing one, the agency must submit a
"Request for Revolving Fund" form, GAO-33 to the GAO. A copy of this form may be found in the
State of Arizona Accounting Manual which is also out on our web site.
Can my agency use a Petty Cash fund for small expenditures?
Yes. Petty Cash funds, a type of Revolving fund, are allowed by law. If your agency wants to estab-lish
a petty cash fund, review the requirements on our web site. Petty Cash funds must be managed
according to strict guidelines. Contact your GAO liaison for help.
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Where can my agency deposit cash receipts (cash, checks, money orders, etc.)?
All monies received for and belonging to the State shall be promptly deposited with the State Treas-ury.
(A.R.S. § 35-142 and § 35-146) The Arizona State Treasurer's Office is located at 1700 West
Washington, First Floor. Or, an agency may also arrange to make cash deposits with an off-site State-servicing
bank (currently, the Bank of America). Check with the State Treasurer's Office for details
and to confirm the servicing bank at (602) 542-5815.
What documentation do I need to submit with my agency's cash receipts with the State Treasurer's Office?
If your agency makes its deposits with the State Treasurer's Office, they will require a completed Deposit
with the State Treasurer form, deposit ticket, and all cash receipts. The deposit form information must al-ready
be input into AFIS (the State's accounting system) by your agency.
If your agency makes its deposits with an off-site State-servicing bank, after making the cash deposit the
completed Deposit with the State Treasurer form and validated bank documents must be forwarded to the
State Treasurer's Office. The completed Deposit with the State Treasurer form must already be input into
AFIS by your agency.
The State Treasurer's Office will return a validated Deposit with the State Treasurer form to your
agency to be retained by your agency. (A.R.S. § 35-147)
Can my agency accept other forms of payment other than cash, checks, money orders, etc?
Yes, through a payment card. A payment card is a credit card, debit card, charge card, travel and en-tertainment
card or any other similar method that can be used to make payments to the State. (It is not
to be confused with a purchasing card, which can be used by certain employees to make purchases for
the State. For purchasing card information, please see the State Procurement Office (AzSPO) section
in this handbook.)
Acceptance of payment cards is a very complex system to set up and requires involvement and ap-proval
from the GAO, the State Treasurer's Office, and if web-based, the Government Information
Technology Agency (GITA). Because the acceptance of payment cards has significant financial, ac-counting
and technological ramifications, the State Treasurer, the State Comptroller and the Director
of the GITA work together to assess whether the benefits of an agency's accepting payment cards out-weigh
the costs to the State. Contact your GAO liaison for the appropriate forms. Furthermore, a spe-cial
bank account through which payment card activity will be processed and will be opened by the
State Treasurer on behalf of the agency.
Can an agency enter into any sort of contract with any entity to accept or process payment cards without the
permission of the State Treasurer?
No. In fact, it is illegal to do so. (A.R.S. § 35-142, I.)
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Does an agency have to prepare any special reports when it accepts payment cards?
Yes. State law requires that certain payment card related information be reported to the Joint Legisla-tive
Budget Committee, the Office of Strategic Planning and Budgeting and the Government Informa-tion
Technology Agency (GITA). State policy requires that this information be filed with the State
Comptroller, as well. See A.R.S. § 35-142, K., and the GAO's Technical Bulletins for more details.
What is a warrant?
A warrant looks like a check but is legally different. A warrant is an order drawn by the Director of
the Department of Administration upon the State Treasurer directing the State Treasurer to pay a
specified amount to the person named. Warrants are produced as a result of claims successfully pass-ing
various edits in the Statewide Accounting System; the Payroll System and other accounting sys-tems
such as Department of Economic Security Aid to Families and Dependent Children and Depart-ment
of Revenue Tax Refunds.
What are the types of vendor warrants?
There are two types of warrants that result from vendor claims processed through the claims payable
sub-system of the Statewide Accounting System. These two types are:
· Regular warrants are normally available the working day following the day a claim is processed
on the Statewide Accounting System.
· Handwritten warrants which are produced manually, as opposed to a system generated warrant.
Requests for handwritten warrants are reviewed and authorized on a case-by-case basis by the
ADOA-GAO. Requests must be received by the GAO no later than 2:00 p.m. to process a vendor
handwrite warrant for that day. See State of Arizona Accounting Manual for detailed procedures.
How does my agency pay its vendors and outside service providers?
First your agency must have the legal authority to make the payment. If your agency is paying a ven-dor
– a person or business outside of State Government – you will need to have a warrant (check)
processed through AFIS (please see AFIS description above for more information). A claim is used to
initiate the payment process. The claim requires an authorized signature certifying that the expendi-tures
are for a valid public purpose and are consistent with applicable statutes, laws, appropriations;
and that there is sufficient appropriation and monies to pay the claim. Sufficient accounting detail is
also required for accurate processing and to satisfy management reporting requirements. If the pay-ment
is for under $1,000, your agency would process a claim on AFIS or contract with the CSB
(defined above) to process it for your agency.
For payments of $1,000 or more, your agency should first process an encumbrance on AFIS before
placing an order for goods or services with the vendor. After you have received the goods or services,
your agency would then complete the claim form using information from both the encumbrance form
and the purchase order for processing on AFIS.
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If your agency is paying another State agency, you will file an Inter-agency transfer instead of a claim
form. (see below)
Can my agency make electronic versus warrant payments to vendors?
Yes, through the ACH (Automated Clearing House) process. The ACH process is an alternative to
issuing warrants to vendors. The Arizona Clearing House Association (ACHA) serves as the clearing
house and processes electronic payments to the vendor's bank accounts. There are many benefits of
converting payments made to vendors that are frequently paid from warrants to ACH payments. They
include reducing operating costs by reducing manual payment processing; streamlining financial op-erations;
eliminating possibility of mail and deposit delays; eliminating postage fees for mailing
checks, and reducing the possibility of fraud. Information regarding the ACH process can be found on
our web site, www.gao.state.az.us. You can also contact your GAO liaison to answer questions.
What are Interfund Transfers?
Interfund transfers (also known as "transfers" or "companion transactions") are reductions in the fi-nancial
resources of the transferring fund accompanied by increases in the resources of the receiving
fund. Although there is a variety of interfund transfers, one of the most commonly used is the quasi-external
transaction whereby a State agency pays another State agency for a good or service via a
transfer rather than a warrant. Some examples include: finger printing fees paid to the Department of
Public Safety, fleet rentals paid to the ADOA, and lobbying fees paid to the Office of the Secretary of
What do I do if a warrant is lost, forged or needs canceling?
If a warrant is lost, forged or needs to be canceled, the State agency should immediately contact the
following sections to receive special processing instructions:
· The ADOA-GAO-Arizona Warrant Reconciliation (AWR) section for vendor warrants, or
· The ADOA-GAO-Payroll section for payroll warrants.
What is the Central Payroll Office?
The Central Payroll Office of the GAO administers and reconciles the Statewide Payroll System
known as the Human Resources Management System (HRMS). HRMS is a payroll and personnel
maintenance application used by the majority of State agencies. Leave balances, employee informa-tion,
tax information and an employee's Fair Labor Standards Act (FLSA) status are available. To ob-tain
more payroll-related information, please refer to the Human Resources Management (HRMS)
User's Guide, State of Arizona Accounting Manual, Section III, or contact the Statewide Payroll Man-ager
at (602) 542-0370.
Page 17
How do my agency's employees get paid?
First, employees must be set up on the HRMS system through the agency's personnel office to get
paid. For off-line agencies, please see the Capitol Mall Personnel Office (CAMP) section in this
Handbook for further details. Time and attendance must then be input into HRMS when payroll is
due (see next question for more information).
How do I report time and attendance? When is that report due?
Time and attendance is reported every two weeks, after the end of each pay period. Every two weeks,
by 3:00 p.m. on the Tuesday after the end of a pay period, your agency must enter into HRMS a report
of all leave time used by staff or if your agency has a CSB contract, deliver the paper report to GAO
no later than 10:00 a.m. Monday for input. If there is a holiday during the pay week or pay period, the
above deadlines are advanced a day. The State's payroll system is an "Exception Based" system. It
assumes each staff person (except Board members) works all the hours required (usually 80 in each
two-week pay period). Time and attendance reports, therefore, show "exceptions" when the employee
did not work—when the person took annual leave, sick leave, or any other form of absence, including
Leave Without Pay (LWOP). Board member hours worked must be input as the exception hours in
HRMS for a payment to process.
Regardless of whether the staff person is merit (hourly) or exempt (salaried), all leave time must be
reported. Records of time and attendance must also be kept at the agency level.
What kinds of deductions can Central Payroll make from paychecks?
Central Payroll automatically makes deductions for federal and state taxes, based on W-2 information
entered into HRMS. Central Payroll also makes deductions for all State-sponsored benefits, such as
health, medical, dental, optical, and life insurance. Payments to State retirement funds are also taken
automatically. Court ordered garnishments are also done.
In addition, employees have the option of having deductions made for Bus Card payments, for contri-butions
to the State Employees Charitable Contributions, and for tax-deferred plans including PEB-SCO,
medical care and child care accounts. See A.R.S. § 38-612 for more information.
When and where are payroll checks available?
Payday for the State is on the Friday after the pay period ended. To expedite the distribution, payroll
warrants and direct deposit advice receipts are usually available to be picked up by authorized agency
personnel at the GAO office on Thursday afternoons after the pay period ended. Contact GAO for
your agency's specific pick-up time. On rare occasions, payroll is not available until Friday. Central
Payroll provides the warrants and advice slips in stacks, by agency. If an agency wants each warrant
or advice slip in a separate envelope for distribution to employees, the agency must do that on its own.
Is there a help network I can access should the need arise?
HRMS offers an extensive customer help network. There is on-line help for each screen in the sys-tem.
The HRMS Support Desk Team at (602) 542-2442 is available by phone 7:30 A.M. through 4:30
P.M., Monday through Friday. There is also an HRMS News Screen available which updates the User
with current system changes.
Page 18
It is also highly recommended that persons involved in the processing of payroll transactions attend
HRMS training classes offered by ADOA through the Arizona Government University (AzGU).
Some of the classes are required before security access is granted to process transactions on HRMS.
You may register for HRMS training classes on-line at: www.wgu.edu or call the registrar at (602)
What do I need to know about State Travel?
A great deal. The State Travel Policy is in the State of Arizona Accounting Manual, Section II-D.
You may also view updates to the State's travel policy on our web site. You are encouraged to read
the Policy in its entirety as it contains very important information regarding State travel and agency
responsibilities. It is highly recommended that the Agency head, employees who travel on State
business, and employees who process travel claims attend at least one of the Travel Policy
Classes that are held in the General Accounting Office each Tuesday, free of charge. You may
view and register for travel classes on our web site.
What are the responsibilities of the Director of any Agency, his/her designee, or the Agency Head relating to
State Travel?
· Approving all Out-of-State Travel requests
· Approving all Rental Vehicles
· Approving Out-of-State allowances for travel within 100 miles of the border
· Approving use of a State Vehicle for Out-of-State Travel
· Approving the use of a Private Vehicle for Out-of-State Travel
Can my agency make exceptions to the travel policies and procedures in the State of Arizona Accounting
Only ADOA may make exceptions to the travel policies in the State of Arizona Accounting Manual.
If your agency has a request for an exception to the travel policy, submit the request in writing ex-plaining
your request and justification to the State Comptroller at the ADOA-GAO.
What is the difference between a capital asset and a non-capital asset?
A capital asset is one that has a useful life of more than a year and a cost of $5,000 or more. Non-capital
assets also have lives that are greater than a year, but they cost less than $5,000. Capital and
non-capital assets are sometimes referred to as fixed assets. The cost of a capital asset is written off,
Page 19
or depreciated, over the estimated useful life of the asset. The cost of a non-capital asset is treated as
an expense in the year acquired. While capital and non-capital assets receive different accounting
treatments, they both impose a duty of stewardship upon agency management.
What is an agency director's responsibility relating to fixed assets?
All agency directors are responsible for the safeguarding and stewardship of the State's capital and
non-capital assets. Stewardship requires that certain steps be taken to protect State assets from dam-age
or theft. For example, lists of both capital and non-capital assets must be maintained and are sub-ject
to periodic audit.
How often does my agency have to report its Fixed Asset Inventory?
Fixed Asset Inventories are due at the close of each fiscal year. However, your agency should be
keeping its Fixed Asset Inventory up-to-date at all times. If you are using the Fixed Asset System
(FAS), GAO will simply take the available information when they need data on capital equipment in-ventories.
If your agency keeps its inventory on another system, the report is due as part of the Fiscal
Year End Closing package. Agencies have the choice to maintain the inventory for their non-capital
equipment on their own internal inventory system or on the FAS.
In summary, there are many statutes and rules for which your agency management is responsible for.
We have attempted to convey most of the key rules you should be aware of in the above sections,
however encourage you to visit our web site at www.gao.state.az.us for a more expanded (yet summa-rized)
version of your fiscal responsibilities. Your agency's CFO should also be well acquainted with
your agency's enabling statutes, A.R.S. Title 35, and the policies and procedures in the State of Ari-zona
Accounting Manual, GAO Technical Bulletins, and AFIS Reference Guide. Updated informa-tion
can be obtained via attending the monthly CFO meetings hosted by the GAO or visiting our web
site. We strongly encourage that key accounting staff attend all applicable training classes offered for
AFIS, HRMS, and State travel. Registration for training can be made at www.wgu.edu or call the reg-istrar
at (602) 542-5604. If you or someone on your staff ever have an accounting-related question
and are not sure where to start or go to, please do not hesitate to contact our office at (602) 542-5601
or your GAO liaison. We are here to help you!
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Governor's Regulatory Review Council (GRRC)
What does GRRC do?
The staff of the Governor's Regulatory Review Council assists agencies to comply with the rulemak-ing
provisions of the Arizona Administrative Procedure Act. (A.R.S. § 41-1001 et seq.) Specifically,
staff's statutory responsibilities include:
· Reviewing rule packages for compliance with the standards at A.R.S. § 41-1052(C) and (D).
· Reviewing five-year-review reports for compliance with the standards at A.R.S. § 41-1056.
· Receiving annual reports from state agencies regarding substantive policy statement directories,
five-year-review report progress, and time-frame rule compliance.
How much do GRRC staff services cost?
GRRC is funded by the legislature through the general fund. All of its services are provided at no cost
to state agencies.
What is the Arizona Administrative Procedure Act (APA) about?
The APA provides procedures that an agency must follow in making rules and handling appeals of
agency decisions.
Do all agencies have to make rules?
An agency may make rules only if the legislature has given it authority to do so. To determine
whether your agency has rulemaking authority, check the statute that identifies the powers and duties
of the agency. An agency can make rules only that are within the boundaries of the authority granted
by the legislature. Check your agency's statutes for the subjects on which it must make rules.
When must an agency make a rule?
· When the legislature says that it must.
· When the agency decides to exercise discretion that the legislature says can be exercised only if
the agency makes a rule.
· When the agency decides to exercise discretion that the legislature provided.
· When the agency needs a rule to accomplish something that is within the scope of its authority.
· When the agency issues licenses.
· When the agency charges a fee.
· When the agency has procedures that are available to the public.
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What law relates to an agency's rulemaking?
· The agency's organic statutes. These are the statutes that create the agency and establish its scope
of power.
· The Arizona Administrative Procedure Act (See A.R.S. § 41-1001 et seq.)
· Rules of the Governor's Regulatory Review Council (See A.A.C. Title 1, Chapter 6)
· Rules of the Secretary of State. (See A.A.C. Title 1, Chapter 1)
Note: Each of these sources of rulemaking law changes often. At every stage in a rulemaking, make certain you are using
the most recent version of the law.
What is a rulemaking record?
A.R.S. § 41-1029 requires an agency to maintain an official record of every rulemaking and to make
the record available to the public. The statute tells you what must be included in the rulemaking rec-ord.
If there is ever a court challenge to the agency's rule, the rulemaking record is the record on
which the agency will rely. An agency should keep all of its rulemaking records FOREVER.
What is a courtesy review?
By law, an agency has only to submit its final rule package to GRRC for review and action. However,
GRRC staff is willing to review an agency's rule package before the agency puts it into final form.
This is called a courtesy review. Agencies do not have to submit their rule packages for courtesy re-view
but agencies and GRRC staff have found that doing so makes the final review process easier. A
courtesy review is most useful when done before the agency publishes its rules in proposed form. Be-cause
GRRC staff is able to do courtesy reviews only as time permits, an agency should allow about
two months for a courtesy review.
What is a five-year-review report?
A.R.S. § 41-1056 requires an agency to review its rules every five years to determine whether the
rules need to be amended or repealed. After doing this review, the agency is required to submit a re-port
of its findings to GRRC, which will approve the report or return it to the agency for additional
How does an agency know when to do its five-year-review report?
GRRC staff maintains a five-year calendar of when each agency must submit its report. This calendar
is provided to every agency head when the information relative to the agency changes. Part of the cal-endar
is published in the Arizona Administrative Register and on GRRC's web site at www.grrc.state.
az.us. Each agency head will receive a reminder notice 90 days before the agency's five-year-review
report is due.
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How will GRRC know whether an agency completes the course of action planned in its 5YRR?
By June 30 of each year, all agencies must report to GRRC on their progress toward completing the
courses of action established in their five-year-review reports (See A.R.S. 41-1056(H)). GRRC in-cludes
this information in its annual report to the Governor and legislature. GRRC also knows
whether an agency implements its course of action because all rulemakings submitted to GRRC for
approval are compared with previously submitted five-year-review reports.
What happens if an agency does not do its five-year-review report?
Under A.R.S. § 41-1056(E), rules that are not reviewed when scheduled expire and cannot be en-forced.
If rules expire, they can be reestablished only by going through the rulemaking process.
Can an agency get an extension for doing its five-year-review report?
A.R.S. § 41-1056(D) allows an agency to file an extension with GRRC for a 120-day extension. The
extension must be filed before the five-year-review report is due. If the agency files an extension and
then fails to submit the five-year-review report within the extension period, the rules scheduled for re-view
What does an agency have to do after GRRC approves the agency's five-year-review report?
In the report, the agency will indicate which rules need to be amended or repealed and the date by
which the agency expects to submit the needed rulemaking to GRRC. After the report is approved by
GRRC, the agency must do the rulemaking the review indicated was needed.
What does an agency do with public comments about its rules?
A.R.S. § 41-1056(A)(2) requires that an agency include in its five-year-review report a concise analy-sis
of written criticisms received during the previous five years. This means that the agency must save
all written comments about its rules so it will be able to analyze the comments in its five-year-review
What is a substantive policy statement directory?
A.R.S. § 41-1091 requires all agencies to maintain and update annually a directory that summarizes
the subject matter of all currently applicable rules and substantive policy statements. Both "rule" and
"substantive policy statement" are defined at A.R.S. § 41-1001. The directory, rules, substantive pol-icy
statements, and any materials incorporated by reference must be open to the public at the office of
the agency director.
What is a licensing time-frame?
If an agency issues licenses, as defined at A.R.S. § 41-1001, it is required by A.R.S. § 41-1073 to es-tablish,
by rule, time-frames within which it will act upon an application for a license. Check your
agency's rules to determine whether it has a time-frame rule.
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How does a licensing time-frame affect an agency?
If an agency fails to act upon an application within the time-frame, A.R.S. § 41-1077 requires that the
agency refund the applicant's fees, forgive any unpaid fees, and pay a penalty for each additional
month until the application is acted upon.
Who tracks whether an agency complies with these requirements?
An agency is required to report to GRRC annually on its compliance with these requirements. Each
agency makes the following annual reports to GRRC:
· Substantive policy statement directory certification (due June 30)
· Five-year-review report progress report (due June 30)
· Time-frame rule compliance report (due September 1).
GRRC includes a summary of agency compliance with these requirements in the annual report that it
submits to the governor and legislature.
How does an agency learn more about these annual reports?
Copies of the forms to use for the five-year-review report progress report and the time-frame rule com-pliance
report are on GRRC's web site at www.grrc.state.az.us or may be obtained by calling GRRC's
office. In April of each year, GRRC staff provides a seminar that teaches how to complete these re-ports.
Call the office to register. GRRC staff will send a reminder notice to the agency head about 90
days before each annual report is due.
How does an agency get help with these responsibilities?
GRRC staff will be happy to answer your questions. Staff also provide monthly seminars on rulemak-ing,
completing a five-year-review report, and preparing an economic impact statement. Your agency
head will be notified about the dates of these seminars. You can also learn the dates of the seminars
by calling the office or checking GRRC's web site.
Most agencies do their own rulemaking. One does not have to be an attorney or a professional rule
writer to do a rulemaking. However, some agencies hire a professional rule writer to help them.
GRRC staff can tell you the names of rule writers on State contract who do rulemaking.
Help with rule writing is also available from the Office of the Secretary of State and the Arizona Rule-writers'
Consortium. The Office of the Secretary of State publishes a rule writing manual. Make cer-tain
that your agency has a copy before beginning a rulemaking.
Page 24
Information Services Division (ISD)
What does ISD do?
The Information Services Division (ISD) is the information technology arm of ADOA providing data
processing, data communications and telephone systems and services. ISD provides data processing
capabilities on mainframe and mid-range equipment along with access security on these systems.
Web hosting is provided as well as e-mail accounts. Telephone services are maintained on the
Phoenix and Tucson government malls as well as data telecommunications.
How do I purchase computers and software?
Although ISD is responsible for providing the services and means of communication, the selection and
purchase of equipment remains the responsibility of your agency. The Government Information Tech-nology
Agency (GITA) oversees the standards for equipment and can assist in this area. The Arizona
State Procurement Office (AzSPO), a section of ADOA, can guide you through the correct vendor se-lection
process in the purchase of the equipment. See Section IV for AzSPO contact information.
How do I get a web site set up?
ISD provides a host server location for your web site. To acquire space, complete the application that
can be found at the ISD Security web site at www.security.state.az.us or call (602) 542-2118. For infor-mation
regarding the State's web portal for conducting state business transactions over the Internet,
contact the Government Information Technology Agency (GITA) at the phone number listed in Sec-tion
How do I get e-mail?
ISD supports Post Office Protocol (POP) e-mail accounts. Complete an application found at the ISD
Security web site at www.security.state.az.us or call (602) 542-2118.
What telephone services does ISD provide?
Telephone services cover a wide array of capabilities in two core sites located on the Phoenix Capitol
Mall and Tucson state office complex. Some of these services include:
· Trunk lines, telephone equipment, wiring and cabling
· Long distance access and 800 services
· Voice messaging and interactive voice response systems
· Automated call distribution systems
· Remote call center telephone equipment
· TDD access
· Teleconferencing and attendant-controlled conferences
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How do I find out the rates for these services?
A rate table is available on the Internet, located at www.ats.state.az.us. If you do not have Internet ac-cess,
a copy of the rates can be obtained from ISD Customer Care Section by calling (602) 542-2118.
What kinds of data processing capabilities are available?
There are two types of computing services available for agencies:
· Host MVS mainframe computer running applications such as the statewide payroll and accounting
systems. These types of services are generally utilized by and supported by large agencies.
· Mid-range platform providing computing services for mid-size and small agencies that may need
assistance with applications for issuing licenses and/or collecting fees.
ISD has the ability to provide computer services to any agency that may have a need. It should be
noted, however, that funding for ISD is generated from the fees for services. ISD also provides ana-lyst
staff available to assist in determining the best fit of services for your agency's needs. Call the
ISD Customer Care number located in Section IV for assistance.
What telecommunications services are furnished?
The telecommunications section is able to provide services from a simple, single line telephone to
complex call centers for tracking and managing large volumes of incoming calls. State-of-the-art fiber
optic telephonic service is used to connect the Phoenix Capitol Mall and Tucson office complex as
well as circuits covering many of the outlying state offices throughout Arizona.
What is WAN and what does it do?
If your agency has offices located at remote sites, the Wide Area Network (WAN) enables the offices
to transfer data through high-speed fiber optic networks. Having the equipment necessary to maintain
such a network and keep it running is the responsibility of the WAN engineers, who continuously
monitor the system to assure its efficient functionality.
The Telecommunications WAN group also maintains the State's Internet operation, hosts the State's
web site and supports the State Internet Domain Name (state.az.us).
What kinds of data security procedures are available?
· User accesses to computers, computer networks and business applications.
· Internet and Internet e-mail access.
· Investigation of computer abuse and unauthorized access to computers, networks, Internet and
business applications.
· Planning and support to State agencies, boards and commissions in their efforts to resume opera-tions
after a service interruption.
How do I find out more about these services and whom should I contact?
You are not expected to know all the technical details, that is why ISD provides a Customer Care sec-tion
to assist customers with evaluating what is needed and to answer questions about any of the serv-ices
performed by the division. You can contact a representative at (602) 542-2118.
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Risk Management (RM)
What does Risk Management do?
Risk Management was established in 1976 to provide insurance coverage to state agencies and em-ployees
for property, liability and workers' compensation losses in accordance with the statutory pro-visions
found in ARS §41-621 through §41-625. Risk Management does this by work in four units:
· Finance and Insurance Unit: Evaluates the State's potential losses, then protects the State either
by self-insuring, or by purchasing insurance from commercial carriers.
· Property & Liability and Claims Unit: Evaluates, investigates, negotiates and settles claims, de-mands,
and law suits against the State and State agencies
· Loss Prevention Unit: Strengthens agencies' loss prevention programs by offering expert consul-tation
and training opportunities
· Worker's Compensation Unit: Oversees payments of benefits to State employees and other cov-ered
employees and volunteers who are injured while working.
What (and who) is covered by the State's Insurance Program?
Arizona statues (A.R.S. §41-621 through § 41-625) require that Risk Management provide insurance
or self-insurance for the following:
· All state-owned buildings, including those of the three state universities
· All property owned by the state
· All officers, agents and employees of the state, including Board and Commission members,
against liability for acts or omissions of any nature while acting in authorized governmental or
proprietary capacities, except as prescribed by statute
· Workers' compensation injuries of state employees, and
· Environmental damage and health threats associated with state-owned/operated property and fa-cilities
How do agencies pay for Risk Management's coverage and services?
Risk Management evaluates the kinds of activity each agency is required to perform, and the agency's
history of claims to determine the fee the agency will be assessed. In the summer of each odd-numbered
year, Risk Management informs agencies by letter of the fees that will be assessed for the
next two fiscal years, so the agency can use it in developing the budget request.
The Risk Management annual fees are then taken from each agency's fund during the first week of
each fiscal year. This is part of what GAO calls the "sweep" (see page 13 for more information).
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Are volunteers covered under the State's insurance?
Volunteers who act at the direction of state officials and within the course and scope of their state
authorized activities may receive the same coverage as employees. If your agency uses volunteers
(non-Board members) to serve on committees that review applicants, write, give, or grade examina-tions,
or screen complaints, check with Risk Management to determine if they are covered. Volun-teers
also may be covered for workers' compensation if they meet the criteria set forth in A.R.S. §23-
What coverage is provided for automobiles?
· State vehicles: Coverage is provided to state employees when driving state vehicles within the
course and scope of their employment and authorization.
· Private vehicles: Liability coverage is provided on an excess basis for private vehicles driven
within the course and scope of their employment and authorization. Physical damage (to vehicle)
is not covered.
· Leased/rented vehicles: neither liability insurance coverage nor collision damage waivers should
be purchased. Specific information defining the course and scope of employment while using a
motor vehicle is provided in A.A.C., Title 2, Chapter 10, Article 1.
Is employee-owned property covered?
Employee-owned property used at work, or for work, is generally not covered. This includes vehicles
(see question above).
What is a "claim" as Risk Management uses the term?
A claim is any demand for payment made by a State employee, member of the public, or business, to
compensate for damage the State (or an agency or employee) has done. That damage may be to prop-erty,
or may be personal injury arising from an action or decision the State or an agency made
(liability). The claim may come in the form of a demand letter from the injured person or his or her
attorney, or may be stated in a law suit.
What forms are available to file a claim?
Separate loss report forms are available for auto accidents, property losses and liability claims (other
than auto related losses).Forms may be obtained by contacting the Claims Unit at 542-2180.
How do I report a claim made for damaged property?
All losses should be reported as soon as possible to Risk Management at 542-2180. Agencies should
report significant property damages within 1 day if damages are expected to exceed $10,000. All other
losses should be reported as soon as possible, but no longer than 10 days after the incident occurs. If a
property loss is not properly documented by the agency within 1 year, coverage may not be provided.
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How do I report claim made for liability arising from a decision or action of the agency?
All situations involving potential or actual claims should be reported as soon as possible to Risk Man-agement
at 542-2180. Agencies should report all liability claims within 1 day if there is bodily injury
or if damage is expected to exceed $10,000. All other liability claims are to be reported within 10
What if there are charges of discrimination?
A copy of all charges filed with the Equal Employment Opportunity Commission (EEOC) or the Ari-zona
Civil Rights Division of the Attorneys' General Office (ACRD), are to be forwarded to Risk
Management. The copy needs to be sent even if there is no demand for money included.
Who defends my agency if a liability law suit is filed?
The majority of lawsuits covered under Risk Management are defended by the Office of the Attorney
General. The Assistant Attorney General assigned to the case will be someone other than the Asst.
Attorney General who routinely represents your Board, Commission, or agency. However, the two
Asst. Attorneys General will coordinate the handling of the case. In certain circumstances, outside
counsel will be hired to represent the interest of the state. The decision to hire outside counsel is made
by Risk Management, not the agency.
How can Risk Management help my agency prevent losses from claims?
The Loss Prevention Unit in Risk Management provides Loss Prevention Consultants, Industrial Hy-gienists,
Environmental Specialists and Training Officers to assist agencies in developing and imple-menting
loss prevention programs. The consultant can also provide assistance in solving everyday loss
prevention problems. In addition, there is a Grant Program available to fund programs that prevent
loss exposures in state agencies.
What training classes are available?
Risk Management offers courses through the Loss Prevention Safety Academy that address safety and
loss prevention issues. A schedule is available by calling 542-1419. Risk Management maintains a
video lending library with an emphasis on safety-related topics.
What should I do if an employee is injured or killed while working?
· Attend to the injured worker immediately and arrange for necessary medical attention. If the in-jury
is serious, call 911.
· Call the Early Notification phone line at 542-WORK or (800) 837-8583. Any fatality must be re-ported
· If a fatality, also notify the State Occupational Health and Safety Office (OSHA) in the Industrial
Commission (542-5795).
· Accompany the injured worker to the doctor if he/she is unable to drive.
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· Obtain information about the incident or injury and fill out the Supervisor's Report of Industrial
Injury or agency specified report of injury form.
· List and interview all witnesses.
· Examine the area of the accident, and secure any equipment, machines or vehicles, etc., for inves-tigation
and recovery purposes.
· If there is any reason to doubt the validity of a claim, provide information to Risk Management.
· If information disproving the validity of a claim or extent of the injury is discovered at a later
date, report it immediately to Risk Management.
· Maintain contact with the injured worker.
· Contact Risk Management with any questions.
Always look for ways to prevent this and other incidents from happening and advise your loss preven-tion
What reports have to be filed in case of an injury or fatality?
At the agency, make sure you have the following reports filed:
· All incidents of work-related injuries must be documented on a "Supervisors Report of Industrial
Injury" form or the agency specified form for reporting injuries.
· All incidents must be recorded on the agency OSHA log.
Make sure the following reports (written or verbal) are made to Risk Management:
· If the injured worker seeks medical treatment, an "Employer's Report of Industrial Injury" form
must be filed with Risk Management within 10 days. Risk Management must receive report of the
claim within 10 days of the supervisor becoming aware of the intention to seek medical treatment.
· Injuries requiring medical treatment may also be reported to Risk Management through the Early
Notification telephone line by dialing 542-WORK or (800) 837-8583.
· Any fatality must be reported immediately to Risk Management.
Other reports that must be filed are:
· Any fatality must be reported immediately to the state OSHA Office (542-5795)
· The injured worker should complete the top portion of the "Worker's & Physicians Report of In-dustry
(Form 102)" made available by the initial provider of medical treatment.
· The medical provider is required by law to file a copy of the form with the Industrial Commission
and Risk Management.
What benefits are covered by workers' compensation?
Wage loss benefits are payable at 66 2/3% of the injured worker's gross monthly salary, up to a maxi-mum
of $2,100 per month. Wage loss benefits are payable at 66 2/3% of the average monthly wage
per month and payable every 14 or 30 days, depending on the type of disability. No wage loss benefit
is payable for the first 7 days, if total time lost is less than 13 calendar days. This waiting period oc-
Page 30
curs only once during a claim. If a claim has been accepted, authorized medical treatment is paid pur-suant
to the Arizona Fee Schedule with no out-of-pocket expenses on behalf of the employee.
What should my agency do when the injured employee is ready to return to work?
· Request a doctor's release before permitting a return to work.
· Contact Risk Management with the date the employee is to return. This is to prevent potential
overpayment of benefits.
· If the employee is released to modified work duties, review any limitations with the employee.
Make certain you have specific work limitations from the employee's physician.
· Be sure to review the agency modified duty policy. A copy can be obtained from the Human Re-source
division of your agency.
· If you have any questions regarding limitations, accommodations, or the employee's work sched-ule,
call Risk Management.
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Arizona State Procurement Office (AzSPO)
What does AzSPO do?
The Director of ADOA is granted explicit procurement authority by law. The Director has delegated
that authority to the Arizona State Procurement Office (AzSPO). AzSPO may re-delegate procure-ment
authority levels to state agencies. AzSPO is governed by the state procurement code to solicit
and award contracts for State agencies and various other government entities throughout Arizona to
purchase goods and services.
What is the Arizona Procurement Code?
The Arizona Procurement Code consists of the statutes (A.R.S. Chapter 23, §41-2501 et. seq.), the
promulgated rules (R2-7-101 through R2-7-1009), and the Uniform Commercial Code (UCC) which
governs standard business transactions not specifically addressed in contracts.
What does "delegated authority" mean?
Each State agency is granted a certain dollar level of procurement authority via letter from the State Pro-curement
Administrator's Office in AzSPO. This is referred to as Limited or Unlimited authority. AzSPO
grants the level of authority based on the experience, expertise and needs of each agency. Agencies with
full authority may make purchases of any type and amount without prior authorization of AzSPO. These
letters are updated annually and when staff changes occur at the Director and Procurement Officer levels
within your agency.
How do I find out what is on state contract?
Check the State Procurement Office web site at www.sporas.ad.state.az.us. If you cannot find it on
the web site, please call (602) 542-5511.
What is a State Contract?
A State Contract or Statewide Contract is a contact established by AzSPO or one of the Agencies
with Unlimited delegation for statewide use. These contracts are for common use items such as of-fice
supplies, metal and modular furniture, vehicles, copy machines and temporary labor services, etc.
Do I have to purchase from State contract?
Yes, if there is a State contract that meets your needs. A.R.S. §41-2501; R2-7-311 requires State govern-ment
units to use existing Arizona State contracts. If the contract cannot satisfy the need, request approval
on a AzSPO form 150 in accordance with delegated procurement authority.
Who approves the AzSPO Form 150 request for off-contract purchase?
The form is submitted to the State Procurement Office for approval prior to the purchase.
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Where can I find a SPO Form 150?
Visit the State Procurement Office web site: www.sporas.ad.state.az.us.
When do I have to get quotes?
You must obtain three verbal quotes for solicitations over $1,000 and up to $5,000. You must obtain three
written quotes for solicitations of between $5,000 and $10,000. For purchase of from $10,000 to $35,000,
use a FOD. These are all informal or small dollar purchases. Solicitations in excess of $35,000 require for-mal
methods: Request For Proposal (RFP) or Invitation For Bid (IFB).
What is a FOD?
FOD stands for Fax on Demand. This is the required vendor selection method for solicitations from
$10,000 to $35,000. The method uses AZFACTS, the Arizona Fax on Demand System that allows vendors
to retrieve copies of solicitations via their fax machines. The AZFACTS numbers are (602)542-2050 for
Maricopa County, or (800)873-6429 for the balance of the State.
What is the threshold for competitive (formal) bids and proposals?
Pursuant to SB 1406, effective July 18, 2000, A.R.S. §41-2535(A) states "any procurement which does not
exceed the aggregate amount of thirty-five thousand dollar may be made in accordance with rules adopted
by the director (of ADOA, such authority delegated to the Manager of SPO) except that the procurement
shall be made with such competition as is practicable under the circumstances." Note: The small business
set aside remains at $25,000.
What circumstances dictate that a state agency shall solicit quotes from and award to small businesses?
All purchases estimated to cost less than $25,000 shall be purchased from small businesses. Should
the small business not meet the needs of your agency please seek out assistance from the State Pro-curement
What is the procurement definition of a small business?
An independently owned and operated business that has either fewer than 100 employees, or gross an-nual
receipts less than four million dollars.
What circumstances dictate that State agencies solicit at least one bid or quote from a woman or minority
owned business?
Any procurement between $1,000 and $25,000.
When do I have to issue a purchase order?
When you have completed your selection of a vendor and want to encumber the funds with which the ven-dor
will be paid, and inform the vendor of authority to perform.
How does a vendor signify acceptance of a purchase order (PO)?
By performance.
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What is a P-card?
A statewide program, subject to specific agency policy and procedures. For more details on the P-card,
contact AzSPO at (602) 542-5511.
What is a fixed price contract?
A fixed price contract indicates that a set price has been agreed upon for each commodity or services pro-vided
under the agreement.
What is an itemized service budget?
This is a budget with specific line items. It is used to negotiate, report and pay on cost reimbursement
contracts and as a basis for negotiations and level of effort analysis for fixed price contracts.
Why can't I award a cost plus percentage-of-cost contract?
The Arizona Procurement Code specifically prohibits it. This type of contract has no incentive for contrac-tor
to control costs – in fact, it encourages the contractor to enlarge expenses, because the more he spends
the more he pockets.
What is a Vendor Performance Report?
A form that replaced the Vendor Deficiency Report to gain both positive and negative baseline and
on-going data about state vendors. The form is available on the State Procurement Office web site at
www.sporas.ad.state.az.us. If you cannot find it on the web site, please call (602) 542-5511.
Who does a vendor contact to register to do business with the State?
Any vendor wanting to register to conduct business with the State is invited to contact the Arizona
State Procurement Office (AzSPO) in one of the following ways:
· Register on-line at www.sporas.ad.state.az.us
· Call the office at: (602)542-5511
· Send a fax to: (602)542-5508
· Visit the office at 15 South 15th Avenue, Phoenix, AZ 85007
True or False: It is important that only the buyer or contract manager involved in a procurement transaction ad-here
to high ethical standards and be concerned with the public perception about conflict of interest and other is-sues
of good conduct.
False: All State employees who are involved in any way with procurement, solicitation or contract activi-ties
should adhere to high ethical standards in their dealing with offerors and contractors, and concern them-selves
with the perception of fairness and credibility. If there could be the perception of a conflict of inter-est
please contact the AzSPO office.
How do I increase my knowledge and expand my skills as a government procurement professional in Ari-zona?
Enroll in and attend the AzSPO Institute Procurement Classes by calling (602) 542-5511 for informa-tion.
Page 34
Government Information Technology Agency (GITA)
What does GITA do?
GITA has broad authority for statewide information technology (IT) planning, oversight, coordinating,
and consulting. To do this, GITA's responsibilities include:
· Evaluating and approving an agency's Annual Agency Information Technology (IT) Plan.
· Maintaining an agency's IT inventory through the Information Services Inventory System (ISIS).
· Approving an agency's Project Investment Justification (PIJ), which is submitted for IT projects
with development and equipment costs exceeding $25,000.
· Establishing standards for information technology through the Policies, Standards, and Procedures
Program (PSP).
· Directing a number of special projects, such as the web portal, e-payments, and Arizona Regula-tory
Licensing Services (ARLS).
Who is required to submit IT Plans and PIJs and to participate in the IT inventory?
All executive branch agencies.
Is there a fee for GITA's services?
All assistance provided by GITA is free of charge.
How can an agency get help with IT planning?
An agency can contact GITA at (602) 340-8538 and request one-on-one assistance. GITA also offers
training sessions every June for the Annual Agency IT Plan (PARIS), with alternative dates available
upon request, and PIJ and ISIS training upon request.
What is the difference between GITA and ADOA Information Services Division (ISD)?
GITA is an IT oversight agency, while ISD provides IT service delivery. In other words, GITA sets IT
direction; ISD provides implementation.
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How does an agency submit its Annual Agency IT Plan?
An agency submits its Annual Agency IT Plan on an Internet web site called the Planning Application
for Reporting Information Technology Strategy (PARIS). PARIS and all planning materials are lo-cated
at www.gita.state.az.us/apps. To receive or update your agency's user names and passwords,
contact GITA.
How does an agency with no access to the Internet complete the Annual Agency IT Plan?
An agency can submit its IT Plan in digital format produced on a word processing program such as
MS Word or WordPerfect, as long as the submitted plan follows the IT Planning Guidelines. The IT
Planning Guidelines are available upon request. However, an agency should notify GITA if it does
not have access to the Internet and, as a result, plans to submit its IT Plan in digital copy form in order
to ensure the necessary information is provided.
When does an agency have to submit an Annual Agency IT Plan?
An agency must submit the Annual Agency IT Plan by September 1 of every year.
What happens if an agency doesn't submit the Annual Agency IT Plan on time, or submit one at all?
GITA can withhold approval of an agency's PIJ, if an agency has submitted one.
Does an agency have to complete any additional requirements along with the IT Plan?
An agency must complete an IT Security Risk Assessment along with the IT Plan. An agency needs to
develop goals, objectives, and performance measures to address the IT vulnerabilities identified in the
risk assessment. The assessment tool can be obtained at www.gita.state.az.us/apps. For an agency
with no Internet access, GITA will send the assessment forms upon request. Approval of the IT Plan
is contingent upon completion of the Security Risk Assessment.
What is ISIS?
ISIS is used to maintain the State's IT inventory. It is a perpetual IT inventory where an agency can
upload and update its IT inventory. ISIS and inventory materials are located at www.gita.state.az.us/
apps. To receive or update your agency's user names and passwords, contact GITA.
How does an agency with no access to the Internet submit its IT inventory?
An agency can submit its IT inventory in digital format, such as a spreadsheet (e.g., Excel, Lotus).
Contact GITA for the possible formats. The agency, when using this alternative method of submittal,
should contact GITA beforehand to ensure the necessary information is provided.
Page 36
When does an agency have to submit its IT inventory?
An agency should keep its IT inventory up-to-date on a continuous basis. Although the inventory is to
be constantly updated, GITA publishes an annual IT inventory report with data from the system as of
August 15, 2001. Agencies need to have their inventory data up-to-date at this time. The annual re-port
is available online and in hardcopy form.
Does an agency have to count monitors for the IT inventory?
No. Each PC is assumed to have a monitor, keyboard, and mouse in addition to the CPU drive unit.
Does an agency that has its own IT inventory system have to type all the information into ISIS too?
No. Contact GITA for instructions on how to upload your inventory data into ISIS.
Does an agency have to report IT equipment purchased using federal money for the IT inventory?
Yes. The statute says that GITA must count all IT assets owned, leased, or employed in the state.
What is a PIJ?
The Project Investment Justification (PIJ) is the State standard for IT project definition, review, and
approval by GITA. All IT and telecommunications projects by executive branch agencies with devel-opment
costs in excess of $25,000, regardless of funding source, require a GITA approved PIJ before
expenditure of State funds. Projects with development costs in excess of $1 million require approval
by the Information Technology Authorization Committee (ITAC). ITAC is comprised of fourteen rep-resentatives
from the state of Arizona executive, legislative, and judicial branches as well as from the
private sector and federal and local governments. The Governor appoints ITAC representatives to
two-year terms, with the exception of the director of GITA and the legislative and judicial members.
What should an agency report in its PIJ?
Agencies are required to provide a thorough description of IT projects. The description should in-clude
the following: a management summary, a description of "To Be" and "As Is" conditions, roles
and responsibilities, description of proposed technology, a financial assessment including develop-ment
and operating costs, funding timeline and source, a project management plan, a risk assessment,
and an itemized list of costs to substantiate the financial summaries.
When does an agency have to submit a PIJ?
An agency has to submit a PIJ for IT projects with development costs in excess of $25,000.
Where does an agency get the necessary PIJ forms?
The GITA website at http://www.gita.state.az.us contains downloadable documents that describe the
PIJ. If an agency does not have access to the Internet, contact GITA for assistance.
Page 37
Governor's Office of Strategic Planning and
Budgeting (OSPB)
What does OSPB do?
· OSPB collects budget requests from each state agency, then recommends budget appropriations to
the Governor and Legislature for executive branch agencies.
· OSPB collects various strategic planning elements defined by A.R.S. §35-122 from each agency,
from which the Master List of State Government Programs is published.
Is there a fee for OSPB's services?
OSPB does not charge any fees for its services and training classes.
How can an agency get help with completing its budget request and strategic plan?
Call the assigned OSPB analyst for help on specific problems. Each agency has an assigned analyst
who is a dedicated resource for that agency. They handle a variety of budget and planning related
questions and often provide on-site agency assistance when needed. For general questions, an agency
should plan on attending the training courses offered by OSPB and the Governor's Office for Excel-lence
in Government (OEG).
How does an agency submit a budget request?
An agency must submit its budget request through the Budget Development Information Exchange
System (BUDDIES), OSPB's automated budget system. The BUDDIES software is available to
download at OSPB's website, www.state.az.us/ospb/. If an agency does not have Internet access, con-tact
OSPB at (602) 542-5381 for a CD-ROM containing BUDDIES. The submission includes five
hard copies of the budget request and a floppy disk.
When does an agency have to submit a budget request?
An agency's budget request is due by September 1 each year. The budget request submitted in even-numbered
years is for the next two fiscal years. The budget request submitted in odd-numbered years
is the mid-biennium request, which may lead to supplemental appropriations to the budget previously
How does an agency's budget request become the agency's appropriation?
An agency submits five copies of its budget request to OSPB electronically and in hardcopy form.
OSPB forwards two copies to the Joint Legislative Budget Committee (JLBC). The agency request
submitted to OSPB is used to develop the Governor's Executive Budget recommendations. JLBC de-velops
its own recommended budget based on the agency request. When developing the Executive
Page 38
Budget recommendations, OSPB confers with the agency as needed to secure proper justification of
the agency's budget request; JLBC may also speak with the agency. A legislative subcommittee then
reviews both the Executive Budget and JLBC Budget recommendations. Budget analysts from OSPB
and JLBC, as well as the agency director, offer testimony during appropriation subcommittee hear-ings.
The hearings generally end with the approval of a budget at the subcommittee level. The pro-posed
budget is then compiled with all other budgets into a single budget bill called the General Ap-propriations
Act and most commonly referred to as the "feed bill". Once passed and signed, the
budget becomes law.
How is money appropriated to an agency?
There are four types of appropriations: lump sum, modified lump sum, lump sum with special line
items and line item appropriation. With a lump sum appropriation, an agency can move money be-tween
lines (e.g., increase Professional and Outside Services by $2,000 and decrease Personal Serv-ices
by $2,000) without needing the approval of OSPB or JLBC, as long as the change nets zero. If
the agency has a modified lump sum, lump sum with special line items, or a line item appropriation,
changes can still be made under certain conditions and with certain restrictions. Call the agency's
OSPB analyst for assistance.
How does an agency keep track of what has been spent versus its appropriation?
The Department of Administration's (DOA) General Accounting Office (GAO) provides an agency
with a monthly report that shows expenditures compared to appropriations. This data is also available
to an agency's OSPB analyst. See the GAO chapter in this manual for more information.
What types of training classes are offered on budgeting?
OSPB offers two summer training classes on budgeting. "Budgeting from Start to Finish" provides
new and intermittent budget professionals with an in-depth understanding of the philosophy of budget-ing,
the budget process, terminology, timelines, fund types, sources for data, and the roles of OSPB,
JLBC staff, and the agency in the budget development process. The class also provides a detailed
walk-through of the automated budget development process (BUDDIES) from the download of the
system from the Internet to inputting a budget request for submission to the Governor. (Because this
class covers information regarding operating BUDDIES, attendees need not attend the Operating the
Budget Development System class). "Operating the Budget Development System (BUDDIES)" pro-vides
an introduction to what is new to state budgeting, the Governor's budget submission guidelines,
and an in-depth presentation of the new automated budget development system. These classes are
How does an agency submit a strategic plan?
An agency must submit its strategic plan through the Arizona Integrated Planning System (AZIPS),
OSPB's automated planning system. The AZIPS software is available to download from OSPB's
website. If an agency does not have Internet access, contact OSPB for a CD-ROM. The submission
includes five hard copies of the strategic plan and a floppy disk.
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When does an agency have to submit a strategic plan?
An agency has to submit its agency strategic plan and list of programs that contain various strategic
planning elements by September 1 each year. An agency's strategic plan and their list of programs are
collected by OSPB for inclusion in a publication entitled the Master List of State Government Pro-grams.
While the submittal of the agency strategic plan and program list is annual, the Master List is
published only in even numbered years.
Who does an agency report its performance measures to?
An agency reports its performance measures to OSPB annually, when the agency submits its Master
List of State Government Programs requirements. In addition, for the first time with the passage of
the FY 2002 and 2003 budget, the General Appropriation Act contains performance measures that will
be monitored by JLBC staff and the Appropriation Committee and subcommittees. The Master List of
State Government Programs strategic planning software provided by OSPB will be programmed with
a box to indicate which performance measures are contained in the General Appropriations Act in or-der
to coordinate the process so an agency will not have to report performance data independently to
JLBC. However, JLBC staff may choose to request additional information for clarification if neces-sary.
Cabinet agencies must also submit specific monthly performance measures to OEG.
What if an agency needs to change its strategic plan?
While OSPB recognizes the planning process is dynamic, an agency should not change performance
measures so frequently that a trend of performance is not established. OSPB becomes concerned
when so many changes are made each year that the majority of an agency's measurements have no
prior data available. Since budget reform legislation passed in 1993, there is an expectation that base-line
data exist for an agency's primary activities and that it should be reported in a consistent manner.
What types of training classes are offered for strategic planning?
OSPB offers one summer training class on strategic planning. "Operating the Strategic Planning Sys-tem"
provides an introduction to what is new to state planning and an in-depth presentation of the
automated planning system, AZIPS. This class is free.
OEG typically offers two classes on strategic planning, depending on the demand for training.
"Strategic Planning 101" is a two-day course designed to assist Arizona State employees with strate-gic
plan development in Arizona State Government. Emphasis is placed on assessment of internal and
external customers, business assumptions, mission statements, vision statements, goals, and objec-tives.
"Using Your Strategic Plan to Manage" is a one-day course that teaches participants how to put
their strategic plan into action once it is complete. This course demonstrates how a strategic plan of-fers
greater utility than satisfying a statutory requirement. Contact the OEG registrar at (602) 542-
7000 or by e-mail at firstname.lastname@example.com or visit OEG's training website at www.az.gov/excellence for
information on class availability.
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Arizona Secretary of State (SOS)
What does the Secretary of State do?
The Secretary of State's Office assists the general public and other state agencies by providing a vari-ety
of services. The following are some of the services the Secretary of State provides (for more in-formation
on additional services, contact the Secretary's office or visit its Web site):
· Maintains notices of where agencies post their public meeting notices.
· Serves as Registration Officer for Lobbyists and registers and files expenditure reports made by
principals, public bodies, and lobbyists.
· Publishes the Arizona Administrative Code and the Arizona Administrative Register, both of
which contain the rulemaking activities of the state's agencies. The supplements to the Code are
published quarterly, and the Register is published weekly.
· Commissions Notaries Public for four-year terms and certifies notarized documents going to other
states and foreign countries.
· Establishes electronic signature policy.
· Files intergovernmental agreements (IGAs), which are contracts entered into by two or more pub-lic
Are there fees for the Secretary of State's services?
There are fees for some of the Secretary of State's services. For example, the Secretary of State
charges fees for some of its publications, Notary Public commissions, and lobbyist registrations. Visit
the Secretary's Web site at www.sos.state.az.us or call (602) 542-4285 for more information on the
fees charged for specific services.
Do all agencies have to let the Secretary of State know where notices of public meetings will be posted?
Yes. A.R.S. § 38-431.02 requires that all agencies, boards, commissions, and departments inform the
Secretary of State in writing where Notices of Public Meetings will be posted. There is not a form for
this; agencies usually just send a letter to the Secretary listing the places where the Notices will be
posted. For physical locations, the building address and floor or room number should be provided.
For Internet posting, the home page location is sufficient if there is a link to the Notice page.
This law does not require that agencies send the Secretary a notice of every public meeting they are
having – only one notice of where those notices will be posted is required.
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Does every agency have to register as a Public Body and have a Designated Public Lobbyist (DPL)?
If anyone from your agency talks to a legislator to try to influence that person's vote on any bill, the
answer is yes. Because most agency heads must testify on their budget requests, almost all agencies
have to register as a Public Body and the agency head must designate a person to be the agency's
Designated Public Lobbyist.
When does an agency have to register? And how often must they re-register?
The agency must be registered as a Public Body, and a person from the agency as Designated Public
Lobbyist, within 72 hours of any lobbying communication made to a public official. Public Bodies
must renew their registrations in November of even numbered years. Designated Public Lobbyists re-new
their registration in November of odd numbered years. The registrations for Public Body and for
Designated Public Lobbyist are separate. Registrations and renewals cost $100 each, and may be paid
using a GAO/ AFIS transfer form. Information on registering a lobbyist is at the Secretary's Web site.
Lobbyist forms, such as expenditure report forms and registration forms, are also located at this Web
site. Call the Elections Services Division at (602) 542-8683 for more information.
May an agency have more lobbyists than just the Designated Public Lobbyist?
Yes, an agency may have as many Authorized Lobbyists as it wants. An Authorized Public Lobbyist
(APL) has the same authority to lobby that the Designated Public Lobbyist does. The difference is that
the Designated Public Lobbyist is the contact person for the Secretary of State and is responsible for
filing the required reports with the Secretary of State; the Authorized Lobbyist may not register or re-new
without the DPL's signature.
Who has to file expenditure reports? And when are they due?
Designated Public Lobbyists file quarterly expenditure reports that contain their own expenses and
those of all the Authorized Public Lobbyists. The fourth quarter report requires that the DPL report
that quarter's expenses as well as the total annual expenditures. The reports are due on the last day of
the month following the quarter (these dates are found in the Statewide Planning Calendar, which is
located in the back of this guide).
The DPL is also responsible for filing the Annual Principal / Public Body Expenditure Report by
March 1 each year. The annual report lists the expenditures made and the names of the public officials
receiving the benefit of those expenditures. In addition, the annual report includes the numbers of
hours spent lobbying by the DPL and all APLs.
What is the Arizona Administrative Code?
The Arizona Administrative Code is the official compilation of Arizona state agency rules. The rules
of more than 150 agencies, boards, commissions, departments, and offices appear within the 20 Titles
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(subject areas) in the Code. Quarterly supplements update the Chapters. Each supplement contains
Chapters that have been adopted, amended, repealed, or recodified during the specified quarter.
How does an agency get the Arizona Administrative Code?
The official version of Arizona state agency rules, by law, is the paper copy of the Arizona Adminis-trative
Code. There is a fee for the official paper copy. This must be ordered from the Secretary of
State's office. Links to the order form and price list can be found at the Secretary's Web site. An
agency can purchase the Code as a complete set or by Title or Chapter. An annual subscription to the
supplement service is also available for a fee. A link to the on-line version, offered in either HTML or
PDF format, of the Code is found at the Secretary's Web site. Chapters are also available on CD-ROM
and disk. Call (602) 542-4751 for more information.
What is the Arizona Administrative Register?
The Arizona Administrative Register is a weekly publication that contains the rulemaking activity of the state's
agencies, including the full text of proposed, final, emergency, summary, and exempt rules. In addi-tion,
the Register contains the full text of the Governor's Executive Orders and Proclamations of gen-eral
applicability, summaries of Attorney General opinions, notices of rules terminated by the agency,
and the Governor's appointments of state officials and members of the state's boards and commis-sions.
Other documents may be included if the documents are concerned with rulemaking or if state
statute requires that they be published in the Register. The Register also includes a calendar outlining
the deadlines of the rulemaking process. See the GRRC chapter in this guide for more information on
How does an agency get the Arizona Administrative Register?
An on-line version of the Arizona Administrative Register is located at the Secretary's Web site. This
version is available only in PDF format. It is also available in hard copy form through a one-year sub-scription
rate. Links to the order form and price list can be found at the Secretary's Web site. The
Register and Code share the same order form. Call (602) 542-4751 for more information.
Are the requirements different for private sector and public sector Notaries Public?
No. The requirements for a private sector Notary Public and a state agency Notary Public are the
same. Notary Public information, including the Arizona Notary Handbook and a Notary Public search
engine, are found at the Secretary's Web site. Call (602) 542-4758 for more information on Notary
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Can an agency pay the fees and bond for a Notary on staff?
Yes. It is up to the agency director whether the agency or employee pays the fees and bond for com-missioning
a Notary Public. If the agency pays the fee and bond, Risk Management must be con-tacted.
See the chapter on Risk Management in this guide for more information.
How does an agency obtain approval to use electronic signature for on-line transactions?
The Secretary of State manages electronic signature use and must approve all electronic signatures
and electronic Notaries. For more information on obtaining an electronic signature, visit the Secre-tary's
Web site or contact the Secretary's office at (602) 542-7386.
What are Intergovernmental Agreements (IGAs)?
IGAs are contracts entered into by two or more public agencies that are located in different govern-ments.
For example, a contract between a public agency in state government and a public agency in a
county government is an IGA. The same is true for contracts between state and federal government
public agencies. These must be filed with the Secretary's office. Contact the Secretary of State for
more information on IGAs.
Page 44
State Library, Archives and Public Records (LAPR)
What does LAPR do?
Through its Law and Research Library, Records Management, History and Archives, and Museum di-visions,
the library collects, organizes, provides access to, and preserves government information. To
further its mission, the agency provides financial and technical support to Arizona libraries, archives,
and museums through the Library Development Division. The agency also provides special services
to Arizonans unable to read printed materials through its Braille and Talking Book Library.
The Arizona State Library, Archives, and Public Records is legally mandated:
· to acquire, maintain, preserve, and provide access to copies of all state agencies' publications.
· to adopt rules for the description of state publications in all formats.
· to establish standards, procedures, and techniques for effective management of public records.
· to acquire and preserve those records of permanent value.
To do that LAPR:
· Works with agencies to ensure that all publications, regardless of format, are identified and
deposited with the Law and Research Library (A.R.S. §41-1335, §41-1338).
· Evaluates and appraises records for their administrative, legal, fiscal, research, informational,
and historical value through consultation and training (A.R.S. §41-1345, §41-1349).
· Assists government agencies in the development of Records Retention and Disposition Sched-ules
· Operates the State Records Management Center for storage of inactive records.
· Authorizes the legal destruction of government records (A.R.S. §41-1351).
· Reviews all proposed document imaging applications by agencies pursuant to A.R.S. §41-
· Directs special projects related to public records, such as standards for electronic record keep-ing.
· Serves as the official archives for the continued preservation of Arizona's historical records
What is an agency 's responsibility for publications, records, and archives?
The heads of state and local agencies are required to make and maintain records containing adequate
and proper documentation of the organization, functions, policies, decisions, procedures, and essential
transactions of the agency. This is required to protect the rights of the state and of persons directly
affected by the agency's activities (A.R.S §41-1346). Such documentation may include publications,
websites, and records.
Page 45
All state agencies are required to submit copies of all its publications, regardless of format, to the Law
and Research Library. Publications include any informational materials which are intended for distri-bution
and which are created by or at the direction of the agency. Common publications include an-nual
reports, newsletters or magazines, project reports, handbooks, and manuals.
All government agencies, including local governments and special districts, are required by law to es-tablish
a records management program, including the appointment of a records management coordina-tor,
to make certain the agency's records are retained as long as they are valuable (A.R.S. §41-1346).
Records may be destroyed only when they are no longer valuable, as determined by the State Ar-chives;
destruction of public records without authorization by LAPR is a felony (A.R.S. §38-421). To
ensure that records are disposed of in a timely manner, the Records Management Division works with
agencies to develop a schedule describing how long records must be kept and if those records may be
destroyed or must be transferred to the State Archives. Infrequently used records that take up valuable
office space may be stored off-site or may be microfilmed; the State Records Management Center of-fers
both services for an economical cost-recovery fee.
All official territorial or state archival records must be deposited with the State Archives (A.R.S. §41-
1339). All agencies must conform to LAPR standards for permanent records and for document imag-ing
systems (microfilm or digital). No records scheduled for permanent retention may be kept exclu-sively
in electronic format.
Is there a fee for LAPR's services?
Agencies must provide five copies of all publications to the Law and Research Library for free at the
time of publication. LAPR will catalog, provide access to, and preserve these publications for your
agency and the public, reducing your agency's costs of providing this information to the public.
Records management consulting and training is free to Arizona state agencies, counties, cities, towns,
and special districts, including design of filing systems, development of records retention and disposi-tion
schedules, and evaluation of electronic records and imaging systems. Agencies are charged a
nominal fee for the storage, retrieval, and destruction of records at the State Records Management
Center. Preservation imaging, including microfilming and digital imaging, is available for a cost-recovery
Archival records that cannot be destroyed must be transferred to the State Archives, where they will
be kept permanently. There is no fee to deposit records with the State Archives.
How can an agency get help managing its publications and records?
· For questions about publications, contact the Law and Research Library at (602) 542-3701 or by
e-mail at email@example.com.
· For assistance with records management, contact the Records Management Division at (602) 542-
3741 or by e-mail at email@example.com. The Records Management Division offers training sessions
on records management. A schedule of classes is available at the LAPR website at www.lib.az.us/
· For questions about archival records, contact the State Archives at (602) 542-4159 or by e-mail at
Page 46
How does an agency submit Records Retention and Disposition Schedules?
An agency may submit an initial draft or update a schedule on forms available from the Records Man-agement
Division, or the agency may call the Division for one-on-one assistance in developing the re-tention
schedule. Separate forms are available for paper and electronic records. At this time, the
forms are available in paper format, or as Adobe Acrobat (PDF) files that can be e-mailed to the inter-ested
party. In the near future, the forms will be available via the LAPR website at www.lib.az.us/
When does an agency have to submit a Records Schedule?
An agency should have an up-to-date schedule on file with LAPR showing how long all records—
paper or electronic—must be kept, and if those records are to be destroyed or sent to the State Ar-chives.
Whenever an agency changes its business practices that effects what records are received, cre-ated,
stored, or archived, an amended schedule must be filed. For electronic records, an amended
schedule must be filed whenever the operating system or software application/language changes. If
the agency changes the manner in which records will be destroyed, or the timetable for destroying the
records, an amended schedule must be filed.
What does an agency do with records the agency no longer needs?
Agencies may destroy records only with authorization of the LAPR Records Management Division.
Records may be destroyed according to approved Records Retention
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