Arkansas Department of Education Division of Elementary and Secondary Education Audit Corrective Action Procedures for Fiscal Year Ending June 30, 2022

Memo Information

Memo Number
FIN-23-016
Memo Date
11/17/2022
Memo Type
Informational
Unit
Fiscal & Administrative Services
Regulatory Authority
Education Department General Administrative Regulation (EDGAR), 2 CFR Part 200, Subpart F, Section 200.511(c)
Response Required
NO
Attention
Federal Programs; Superintendents; Assistant Superintendent; General Business Managers

Primary Contact Information

Memo Reference

No references available.

Memo Text

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 to comply with Section 200.511 of 2 CFR Part 200 of EDGAR. 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 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. 

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 Fiscal Services and Support.  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

Fiscal Services and Support 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. 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@ade.arkansas.gov or mailed to:

Arkansas Department of Education

Division of Elementary and Secondary Education

Fiscal Services and Support

Four Capitol Mall, Room 212-C

Little Rock, AR  72201

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