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 procedures for the program(s) in which the noncompliance occurred
• Evidentiary proof that new policies and procedures have been implemented under corrective action plans (CAP)

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 following § 200.511(c). The CAP (§ 200.512) must be submitted to the Federal Audit Clearinghouse (FAC) within thirty (30) calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. 

Fiscal Services and Support receives and reviews each audit. If the audit requires a Corrective Action Response (CAR), a letter is mailed to the district requesting a CAR. To assist with the preparation of the CAR, please find a template attached that can be used.

The Corrective Action Response shall be received within thirty (30) days of filing with the FAC. 

The auditee is responsible for corrective action on all audit findings including findings from prior years. To ensure compliance with federal and state requirements, CAR shall be filed with Fiscal Services and Support. The response shall include the following elements:

• Each finding must be individually addressed (use the reference numbers assigned by the auditor)
• Include the contact person addressing each finding
• Provide a detailed response on processes implemented to correct the finding and to prevent future recurrence
• Reasons for disagreement with audit findings, if applicable

The response 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

2 Capitol Mall, Room 522

Little Rock, AR  72201