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Rule3-407. Accounting.

Intent:

To establish uniformprocedures for the processing, tracking, and reporting of accounts receivableand trust accounts.

Applicability:

This rule applies to thejudiciary.

Statement of the Rule:

(1) Manual of procedures.

(1)(A) Manual ofProcedures. The administrative office shall develop a manual of proceduresto govern accounts receivable, accounts payable, trust accounts, the auditthereof, and the audit of administrative procedures generally. The proceduresshall be in conformity with generally accepted principles of budgeting andaccounting and shall, at a minimum, conform to the requirements of this Codeand state law. Unless otherwise directed by the Judicial Council, the manual ofprocedures and amendments to it shall be approved by the majority vote of thestate court administrator, the court administrators for each court of record,and the finance manager.

(1)(B) Accounting ManualReview Committee. There is established an accounting manual reviewcommittee responsible for making and reviewing proposals for repealingaccounting policies and procedures and proposals for promulgating new andamended accounting policies and procedures. The committee shall consist of thefollowing minimum membership:

(1)(B)(i) the director of thefinance department, who shall serve as chair and shall vote only in the eventof a tie;

(1)(B)(ii) four supportservices coordinators who will serve a three year term, and may repeat;

(1)(B)(iii) two accountants or clerks with accounting responsibilitiesfrom each of the trial courts of record who will serve a three year term, andmay repeat;

(1)(B)(iv) a trial courtexecutive who will serve a three year term;

(1)(B)(v) a clerk of court whowill serve a three year term;

(1)(B)(vi) a clerk with accounting responsibilities from anappellate court who will serve a three year term, and may repeat;

(1)(B)(vii) one court servicesfield specialist, who has an indefinite term;

(1)(B)(viii) the audit directoror designee, who shall not vote; and

(1)(B)(ix) the director of thestate division of finance or designee, who shall not vote.

(1)(C) Member Appointments.Unless designated by office, members of the committee shall be appointed bythe state court administrator, or designee. The department of finance shallprovide necessary support to the committee.

(1)(D) Court ExecutiveReview. New and amended policies and procedures recommended by thecommittee shall be reviewed by the court executives prior to being submitted tothe Judicial Council or to the vote of the administrators and the financemanager. The Court Executives may endorse or amend the draft policies andprocedures or return the draft policies and procedures to the committee forfurther consideration.

(2) Revenue accounts.

(2)(A) Deposits; transfers;withdrawals. All courts shall deposit with a depository determinedqualified by the administrative office or make deposits directly with the UtahState Treasurer or the treasurer of the appropriate local government entity.The Supreme Court, Court of Appeals, State Law Library, administrative office,district court primary locations and juvenile courts shall deposit daily,whenever practicable, but not less than once every three days. The depositshall consist of all court collections of state money. District court contractsites and justice courts having funds due to the state or any politicalsubdivision of the state shall, on or before the 10th day of each month,deposit all funds receipted by them in the preceding month in a qualifieddepository with the appropriate public treasurer. The courts shall make nowithdrawals from depository accounts.

(2)(B) Periodic revenuereport. Under the supervision of the court executive, the clerk of thecourt shall prepare and submit a revenue report that identifies the amount andsource of the funds received during the reporting period and the state or localgovernment entity entitled to the funds. Juvenile courts and primary locationsof the district courts shall submit the report weekly to the administrative office.District court contract sites shall submit the report at least monthly,together with a check for the state portion of revenue, to the administrativeoffice. Justice courts shall submit the report monthly, together with a checkfor the state revenue collected, to the Utah State Treasurer.

(2)(C) Monthlyreconciliation of bank statement. The administrative office shall reconcilethe revenue account upon receipt of the weekly revenue report from the courtsand the monthly bank statements.

(3) Trust accounts.

(3)(A) Definition.Trust accounts are accounts established by the courts for the benefit of thirdparties. Examples of funds which are held in trust accounts includerestitution, attorney fees, and monetary bail amounts.

(3)(B) Accounts required;duties of a fiduciary. District court primary locations and juvenile courtsshall maintain a trust account in which to deposit monies held in trust for thebenefit of the trustor or some other beneficiary. Under supervision of thecourt executive, the clerk of the court shall be the custodian of the accountand shall have the duties of a trustee as established by law. All other courtsof record and not of record may maintain a trust account in accordance with theprovisions of this rule.

(3)(C) Monthly reconciliationof bank statement. Each court shall reconcile its ledgers upon receipt ofthe monthly bank statement and submit the reconciliation to the administrativeoffice.

(3)(D) Accounting totrustor. The courts shall establish a method of accounting that will tracethe debits and credits attributable to each trustor.

(3)(E) Monetary Bailforfeitures; other withdrawals. Transfers from trust accounts to a revenueaccount may be made upon an order of forfeiture of monetary bail or other orderof the court. Other withdrawals from trust accounts shall be made upon theorder of the court after a finding of entitlement.

(3)(F) Interest bearing.All trust accounts shall be interest bearing. The disposition of interest shallbe governed by Rule 4-301.

(4) Compliance. The administrativeoffice and the courts shall comply with state law and the manual of proceduresadopted by the administrative office.

 

Effective November 1, 2020