AR Code § 6-20-2206 (2020)
2020 Arkansas Code|Title 6 - Education|Subtitle 2 - Elementary and Secondary Education Generally|Chapter 20 - Finances|Subchapter 22 - Arkansas Educational Financial Accounting and Reporting Act of 2004|§ 6-20-2206. Miscellaneous provisions

 (a) If the Division of Elementary and Secondary Education determines that an overpayment has been made to a school district, open-enrollment public charter school, or education service cooperative in any funding category authorized by law, the division is authorized to withhold the overpayment from future funding of the school district, open-enrollment public charter school, or education service cooperative and is authorized to transfer the amount withheld for the overpayment to the line item appropriation from which the overpayment was initially made.  (b) Each school district, local education agency, open-enrollment public charter school, and education service cooperative shall prepare an annual statement of the financial conditions and transactions of the school district, open-enrollment public charter school, or education service cooperative as of June 30 of each year.  (c) In order for a school district, open-enrollment public charter school, or education service cooperative to be entitled to state aid as provided by law, each school district, open-enrollment public charter school, and education service cooperative shall satisfy the following requirements:  (1) Expenditures for any fiscal year shall not exceed the legal revenues for that year;  (2) The school district, open-enrollment public charter school, and education service cooperative shall maintain such records and make such reports relative to attendance, receipts, and disbursements and other reports as required by the rules of the State Board of Education;  (3) The school, school district, open-enrollment public charter school, and education service cooperative shall maintain proper financial records in accordance with the Arkansas Educational Financial Accounting and Reporting System, which includes the Arkansas Financial Accounting Handbook, and any reports required pursuant to § 6-20-2202(e)(2);  (4)  (A) The school district, open-enrollment public charter school, and education service cooperative shall file annually with the state board a salary schedule for its licensed employees which recognizes a minimum level of training and experience.  (B) This schedule shall reflect the actual pay practices of the school district, open-enrollment public charter school, or education service cooperative, including all fringe benefits and supplemental salary schedules.  (C) Salary increments for experience or education, or both, shall be identified on the schedule; and    (5)  (A) All pupil attendance records shall be kept in their original form.  (B) Pupil attendance records shall be kept according to law and rule on paper or electronic forms either furnished or approved by the division.  (C) Original pupil attendance records shall be kept on file in the office of the superintendent of schools after the school term is ended for a period of three (3) years, and these records shall be available for monitoring purposes during any day of the school term by the teachers or other persons designated to keep attendance.      (d) School districts may not include the cost of substitute teachers, extended contracts for extracurricular activities, or supplementary pay for extracurricular activities in meeting the expenditures requirement for student classroom teacher salaries.  (e) Any licensed classroom teacher or administrator of a school, school district, open-enrollment public charter school, or education service cooperative that provides false expenditure information may have his or her license placed on probation, suspended, or revoked pursuant to rules promulgated by the state board.