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The State of Arkansas (State) is scheduled to receive more than $15.67 million under the American Recovery and Reinvestment Act of 2009 (Recovery Act). As part of our organization’s commitment to ensure the proper use of Recovery Act funds, we reviewed the State’s controls and operations. Specifically, our objective was to determine whether the State has the capacity to account for Recovery Act funding and the controls to ensure that its recipients expend those funds for eligible program activities. Based on our review, the State has the capacity and management controls to account for Recovery Act funding and ensure that its recipients spend the funds for eligible program activities within the allotted time.