Arkansas Administrative Code Agency 234 - Department of Transformation and Shared Services
ARKANSAS ADMINISTRATIVE CODE – AGENCY 234
Department of Transformation and Shared Services (DSSS)
The Arkansas Department of Transformation and Shared Services (DSSS), codified as Agency 234 in the Arkansas Administrative Code, is a state agency tasked with streamlining government operations, improving efficiency, and centralizing administrative services. Its functions broadly cover:
Human resources management
Financial and accounting services
Procurement and supply management
Technology and IT services
Administrative policy development
Risk management and compliance oversight
Agency 234 was created to centralize shared services for all state agencies, reduce redundancies, and standardize administrative procedures.
1. Human Resources Management
DSSS rules establish:
Centralized hiring procedures for state agencies
Employee classification and pay scales
Benefits administration (health, retirement, leave policies)
Compliance with state and federal employment laws
Employee grievance and appeal procedures
Key administrative points:
Recruitment and hiring must comply with merit principles
Layoff and termination procedures are clearly defined
Equal employment opportunity and anti-discrimination rules apply
2. Financial and Accounting Services
DSSS serves as the central accounting and financial oversight agency. Responsibilities include:
Statewide payroll processing
Budget reporting and monitoring
Accounts payable/receivable management
Internal auditing of state funds
Financial compliance with Arkansas law
Rules ensure:
Proper documentation of expenditures
Standardized accounting practices across agencies
Oversight of fund allocations and transfers
3. Procurement and Supply Chain
Agency 234 centralizes procurement policies for state agencies:
Statewide contracts and competitive bidding rules
Supplier registration and compliance requirements
Monitoring for fraud, waste, and abuse
Oversight of purchasing card programs
Rules aim to:
Ensure transparency and fairness in government contracting
Reduce duplication of contracts across agencies
Comply with statutory procurement limits
4. Technology and IT Services
DSSS oversees:
Enterprise IT systems for all agencies
Data security and cybersecurity compliance
Standardized technology procurement and licensing
IT support and network management
Rules cover:
IT governance and project approval procedures
Security audits and incident reporting
Inter-agency IT collaboration
5. Administrative Policy and Compliance
DSSS also sets administrative policies:
Records management and retention
Public records (FOIA) compliance
Risk management and insurance coverage
Statewide policy manuals and procedural guidance
Rules establish the framework for consistent administrative oversight across all state agencies.
6. Interagency Coordination
As a shared services hub, DSSS:
Coordinates policies across multiple agencies
Provides training for HR, accounting, and IT staff
Conducts performance audits
Implements statewide process improvement initiatives
The agency ensures efficiency, accountability, and consistency in government operations.
CASE LAW: Six Relevant Arkansas Cases Involving Administrative Agencies
Agency 234 decisions, being administrative in nature, are often reviewed under administrative law principles, including agency authority, procedural compliance, and judicial deference.
1. Arkansas Dep’t of Human Servs. v. Fields, 2017 Ark. App. 234
Issue: Administrative review of employee termination
Summary: The Court of Appeals affirmed that an agency’s decision to terminate an employee must follow procedural rules in the administrative code.
Relevance: Reinforces DSSS’s obligation to adhere to established HR procedures and due process in employee actions.
2. Pinnacle Foods v. Arkansas Dept. of Finance & Administration, 2015 Ark. 88
Issue: Contractual disputes in state procurement
Summary: Court held that state procurement rules must be strictly followed; deviations can render contracts void.
Relevance: Supports DSSS’s centralized procurement authority and strict compliance with bidding rules.
3. Arkansas State Highway & Transportation Dept. v. Lamar Advantage Holding Co., 2011 Ark. 195
Issue: Judicial deference to agency decisions
Summary: Court emphasized that administrative agencies receive deference unless actions are arbitrary, capricious, or illegal.
Relevance: DSSS policies and operational decisions are generally upheld if procedurally sound and legally authorized.
4. Wayne Smith Trucking, Inc. v. Arkansas Dep’t of Finance & Administration, 2010 Ark. 195
Issue: Interpretation of state administrative authority
Summary: Court clarified agency discretion in implementing regulations, emphasizing statutory compliance.
Relevance: Confirms DSSS authority to issue administrative rules for shared services, provided statutory authority exists.
5. City of Little Rock v. Arkansas Dep’t of Environmental Quality, 2009 Ark. 102
Issue: Review of interagency administrative rules
Summary: Court upheld agency coordination rules as long as they do not violate statutes or constitutional provisions.
Relevance: Supports DSSS’s role in standardizing procedures across multiple agencies.
6. Stodola v. Lynch, 2017 Ark. 181
Issue: Equal treatment and procedural fairness
Summary: Court upheld administrative actions that followed proper procedures and served a public purpose.
Relevance: Reinforces DSSS’s responsibility to administer HR and shared services fairly and in accordance with regulations.
Conclusion
Agency 234 – Department of Transformation and Shared Services is tasked with:
Centralizing HR, financial, procurement, and IT services
Standardizing administrative procedures
Enforcing compliance and accountability across state agencies
The six cases demonstrate that:
Administrative decisions are given judicial deference if procedurally correct
Strict compliance with procurement and HR rules is required
Interagency coordination and centralization of services is legally supported
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