AR HB1878

Authorizes the Department of Education and Attorney General to hire consultants with auditing and forensic accounting expertise to oversee the three Pulaski County school districts' finances, with emphasis on desegregation funding and full access to documents, software, and personnel.

Requires school districts receiving state desegregation funds under federal court orders or settlement agreements to categorize and report all fund expenditures using uniform accounting codes, with detailed accounting that explains how each expenditure complies with court-ordered obligations.

Mandates annual reporting to the department by September 1 including total funding received, specific district obligations, itemized expenditures, retained funds, and verification that totals reconcile or explanation of discrepancies.

Requires school districts not using the Arkansas Public School Computer Network to provide the department and Attorney General full real-time access to accounting and financial management software.

Declares an emergency based on over $1 billion in state payments to Pulaski County school districts under the desegregation case, stating proper accounting and oversight are essential to fiscal integrity and student education, with the act taking effect upon governor approval or expiration of veto period.