Ark. Code Ann. § 6-20-1802: Fiscal distress for failure to file

(a) Any school district failing to file an audit report required by § 6-20-1801 within the nine-month time period or within the time period under any extension granted by the Division of Elementary and Secondary Education shall automatically be considered by the division to be in fiscal distress.

(b) By January 31 of each year, the division, by certified mail, shall notify any school district failing to file the required audit report that the school district is considered in fiscal distress.