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Rule 3-407. 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) The administrativeoffice shall develop a manual of procedures to govern accounts receivable,accounts payable, trust accounts, the audit thereof, and the audit ofadministrative procedures generally. The procedures shall be in conformity withgenerally accepted principles of budgeting and accounting and shall, at aminimum, conform to the requirements of this Code and state law. Unlessotherwise directed by the Judicial Council, the manual of procedures andamendments to it shall be approved by the majority vote of the state courtadministrator, the court administrators for each court of record, and thefinance manager.

(1)(B) There is establishedan accounting manual review committee responsible for making and reviewingproposals for repealing accounting policies and procedures and proposals forpromulgating new and amended accounting policies and procedures. The committeeshall consist of the following minimum membership:

(1)(B)(i)the director of the finance department, who shallserve as chair and shall vote only in the event of a tie;

(1)(B)(ii) four support services coordinators who will serve a threeyear term, and may repeat;

(1)(B)(iii) two accountantsor clerks with accounting responsibilities from each of the trial courts ofrecord who will serve a three year term, and may repeat;

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

(1)(B)(v) aclerk of court who will serve a three year term;

(1)(B)(vi) a clerk withaccounting responsibilities from an appellate court who will serve a three yearterm, and may repeat;

(1)(B)(vii) one court services field specialist, who has an indefiniteterm;

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

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

(1)(C) Unless designated byoffice, members of the committee shall be appointed by the state courtadministrator. The department of finance shall provide necessary support to thecommittee.

(1)(D) New and amendedpolicies and procedures recommended by the committee shall be reviewed by thecourt executives prior to being submitted to the Judicial Council or to thevote of the administrators and the finance manager. The Court Executives mayendorse or amend the draft policies and procedures or return the draft policiesand procedures to the committee for further consideration.

(2) Revenue accounts.

(2)(A) Deposits; transfers;withdrawals. All courts shall deposit with a depository determined qualified bythe administrative office or make deposits directly with the Utah StateTreasurer or the treasurer of the appropriate local government entity. TheSupreme 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 the courtshall prepare and submit a revenue report that identifies the amount and sourceof 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 administrativeoffice. 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 reconcile therevenue account upon receipt of the weekly revenue report from the courts andthe monthly bank statements.

(3) Trust accounts.

(3)(A) Definition. Trustaccounts are accounts established by the courts for the benefit of thirdparties. Examples of funds which are held in trust accounts includerestitution, child support, and 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) Monthlyreconciliation of bank statement. Each court shall reconcile its ledgers uponreceipt of the monthly bank statement and submit the reconciliation to theadministrative office.

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

(3)(E) Bail forfeitures;other withdrawals. Transfers from trust accounts to a revenue account may bemade upon an order of forfeiture of bail or other order of the court. Otherwithdrawals from trust accounts shall be made upon the order of the court aftera finding of entitlement.

(3)(F) Interest bearing. Alltrust accounts shall be interest bearing. The disposition of interest shall begoverned by Rule 4-301.

(4) Compliance. Theadministrative office and the courts shall comply with state law and the manualof procedures adopted by the administrative office.

 

EffectiveNovember 1, 2018