Section 200.511 of 2 CFR Part 200 of the U.S. Education
Department General Administration Regulations (EDGAR) requires the Arkansas
Department of Education (ADE), Division of Elementary and Secondary Education to ensure that when a public school district,
open-enrollment public charter school, or education service cooperative has an
audit finding regarding an instance of noncompliance with federal laws or
regulations, that an appropriate Corrective Action Plan (CAP) is implemented
timely to remedy each finding.
Once the Arkansas Department of Education is informed of
the instance(s) of noncompliance with federal laws or regulations, the
department will issue a management letter to the school entity detailing the
steps that are required not only to comply with Section 200.511 of 2 CFR Part
200 of EDGAR, but if any additional actions are required of the auditee
including but not limited to:
- Reimbursement of funds to ADE, Division of Elementary and Secondary Education
- Copies of written policies and/or procedures for the particular program(s) in which the noncompliance occurred
- Evidentiary proof that new policies and procedures have been implemented in accordance with corrective action plans
The auditee (§ 200.205(c)) must promptly follow up and
take corrective action on audit findings, including preparation of a schedule
of prior audit findings, and a CAP in accordance with § 200.511(c). The
CAP (§ 200.512) must be submitted to the Federal Audit Clearinghouse (FAC)
within the earlier of thirty (30) calendar days after receipt of the auditor's
report(s), or nine months after the end of the audit period.
However, The Division of Elementary and Secondary Education
will follow the guidelines provided by the Office of Management and Budget in
Memorandum M-20-17 regarding the extension of single audit submission. The
memorandum permits auditees to delay submission of their corrective action plan
(CAP) for June 30, 2020 audits to the Office of Internal Auditing to six months beyond the normal due date of
the earlier of thirty (30) calendar days after receipt of the auditor’s
report(s), or nine months after the end of the audit period.
The auditee is responsible for corrective action on all
audit findings including findings from prior years. To ensure compliance
with federal and state requirements, the CAP shall be filed with the Office of
Internal Auditing. The CAP shall include the following elements:
- Each finding must be individually addressed (use the reference numbers assigned by the auditor)
- Include the contact person responsible for the CAP
- Provide a detailed planned corrective action
- Reasons for disagreement with audit findings, if applicable
The Office of Internal Auditing receives and reviews each audit. If the audit requires a CAP and is not received as part of the audit or does not include ALL information in the above list, a letter is mailed to the district requesting a CAP. In order to assist with preparation of the CAP, please find a template attached that can be used.
The CAP shall be received within thirty (30) days of
filing with the FAC. The plan should be emailed to ade.internalaudit@arkansas.gov or mailed
to:
Arkansas Department of Education
Division of Elementary and Secondary Education
Office of Internal Auditing
Four Capitol Mall, Room 202-A
Little Rock, AR 72201