Arkansas Department of Education Division of Elementary and Secondary Education Fiscal Distress/Early Intervention for 2022-2023

Memo Information

Memo Number
FIN-23-005
Memo Date
8/2/2022
Memo Type
Informational
Unit
Fiscal & Administrative Services
Regulatory Authority
Ark. Code Ann. ยง 6-20-1901 et seq.
Response Required
YES
Attention
Superintendents; General Business Managers; Bookkeepers

Primary Contact Information

Memo Reference

No references available.

Memo Text

Ark. Code Ann. §6-20-1904 provides for intervention and DESE review upon early indicators of the fiscal distress of a public school district.

Ark. Code Ann. §6-20-1904(b)(1) "By November 1 of each year, the division shall report to the superintendent of a school district if the division is aware that the school district has experienced two (2) or more indicators of fiscal distress, as described in subsection (a) of this section or in division rules, in one (1) school year that the division deems to be at a nonmaterial level, but that without intervention could place the district in fiscal distress." 

Ark. Code Ann. §6-20-1904(b)(2) "By November 1 of each year, the superintendent of a public school district shall report to the division if the superintendent is aware the school district has experienced two (2) or more indicators of fiscal distress, as described in subsection (a) of this section or in division rules,  in one (1) school year that the superintendent deems to be at a nonmaterial level but that without intervention could place the district in fiscal distress." 

The division has developed an Early Intervention Checklist to assist with the identification of indicators and compliance to the law. The checklist information will be used to determine if a district qualifies for fiscal distress or early intervention. Superintendents are encouraged to become familiar with the checklist so each one can fulfill the obligations as stated in the law. The Early Intervention Checklist is attached to this memo.

For more information, DESE Rules Governing the Arkansas Fiscal Assessment and Accountability Program are located on the division's website.

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