Ark. Code Ann. § 19-4-1101: Examination and approval required

(a) The expenditure of all funds deposited into the State Treasury shall be subject to examination and approval in the manner provided for by this subchapter before the proposed expenditure is approved for payment from such funds.

(b) Funds of state agencies which are not required by law to be deposited into the State Treasury shall be subject to the procedures as required by § 19-4-801 et seq.

(c) The Legislative Auditor shall have authority, in connection with any examination of the fiscal activities of any agency, to audit any of the funds of the agency.