Legislative Joint Auditing-State Agencies
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Senator Trent Garner
Unverified
0:30
Members, if you can, please take
Speaker 6
0:39
your seat. We'll start in approximately 30 seconds. All
Speaker 11
0:51
call this meeting in order. first we need
Senator Trent Garner
Unverified
0:57
the adoptions of the minute from the february 27 2020 meeting can have a motion
motion do we have a second all those favors say aye any opposed thank you now we'll move on to review the reports tom when you're ready also members if i can't remind you please sign into the sheet in the back of the room and if you have any questions please identify yourself for the record because we're doing this a little bit different in big mac a so just identify yourself Thank you. Thank you Mr. Chairman. Today
Speaker 14
1:25
we're presenting five reports that have findings but we also have 40 reports that don't have findings and these are listed in the audit summary beginning
Speaker 16
1:31
on page one. If no questions I'll accept a
Senator Trent Garner
Unverified
1:40
motion to accept the other reports with no finding. We have a motion. Let's have a second. All those
Speaker 18
1:46
favor say aye. Aye. Unopposed. Thank you. Our first
Speaker 16
1:50
report of findings is a Central Arkansas Planning and Development District June 30-19 report and this report has one finding. This audit was performed by a private CPA firm. The district lacked effective internal control over financial reporting and did not detect adjustments related to accounts payable net assets and expenses that were needed to prevent the combined financial statements from being materially misstated. Specifically the accounts payable and related expenses on the
Speaker 21
2:14
general ledger were overstated. Mr. Chairman that concludes the finding for the Central Arkansas planning and development district thank you typically what
Senator Trent Garner
Unverified
2:21
we do in these situations we would call the agencies or one of the representatives to the table to have
any questions or give a statement due to the COVID-19 some of the restrictions we have there are no guests here so if any members have any questions about any findings we have we can either do one or two things one you can give them to tom to get that answer directly from the agency head or if you feel like it's needed we can always pass over that for them to come back in the future just
to make you aware before we move on but seeing no questions about this finding i will accept a motion to uh do this finding we have a motion have a second all those favor say aye
Speaker 16
2:58
any opposed thank you our next report is the southeast arkansas economic development district gene 30 19 report this audit was also performed by private cpa firm and has a repeat finding an ongoing an ongoing investigation by a state agency into the workforce innovation opportunity Act federal program for the 2014 and 15 program years has alleged a potential violation of federal
procurement requirements resulting in question costs totaling over 287,000 and if some of you remember last year about the same time we brought this private audit up and they had 3.1 million dollars of question costs and DWS was the AC looking into that and they worked with the AC and got it down to 287,000 dollars last year which is where we stand now and my understanding is from talking to the district and to dws is that that they've asked for a waiver in coordination together
to not have to pay back the 287 000 that concludes the finding tom how would that waiver process work you know
Senator Trent Garner
Unverified
3:56
off the top of your head they've requested it to
Speaker 16
3:59
the u.s department of labor i believe is who they requested it of and they said it could take up to a year to hear back from that and the last time the last update they had was on July 7th, 2020, so it's been like a month, a couple of
Speaker 26
4:10
months ago that they've asked for that waiver. So in theory they would either have it waived or just be,
Senator Trent Garner
Unverified
4:15
would bring up in future audit reports if they still have that on the leisure? Or they could have to pay it back
Speaker 26
4:21
to the federal government if they, if they don't waive it.
Senator Trent Garner
Unverified
4:30
Okay, thank you. Any questions from committee? Please press your yellow button or whichever button. There you
Speaker 30
4:36
go. Senators Doublefield, you're recognized. Thank you, Mr. Chairman.
Speaker 16
4:40
Was this turned over to the prosecutor? No, as far as I know, it was not. I mean, this was just a situation where the federal government changed the procurement requirements. The costs that they incurred were allowable. It's just that they didn't follow the right procurement method to do them. So as far as I know, they did not
Senator Gary Stubblefield
Unverified
4:55
turn it over to the prosecutor. They weren't following the federal guidelines as far as procurement? That's correct. Thank you, Mr. Chairman. That's all.
Senator Trent Garner
Unverified
5:12
Thank you. Any other questions for committee? Seeing none, I'll accept a motion to file this report. We have a motion. We have a second. Second. All
those favor say aye. Any opposed? It's filed. Next on. Our next report is the
Speaker 16
5:26
Department of Environmental Quality, June 30-19 report, and this report also contains one finding. A properly designed and implemented internal control structure dictates that responsibilities over cash management be divided so that one individual does not have the authorization, custody, and recording responsibilities over bank accounts. The AC had inadequate control over cash transactions, specifically one employee signed checks and approved the monthly bankruptcy affiliations. As a result, adequate controls were not in place to assure the safeguarding of the agency's 1.28 million dollars of cash in bank that concludes the finding thank you tom and their
Senator Trent Garner
Unverified
6:02
response they basically said they're going to fix this uh
Speaker 21
6:07
yes and i talked to a representative from the agency yesterday about this and they've evidently implemented controls to remove that dual
Senator Trent Garner
Unverified
6:13
responsibilities perfect any questions committee seeing none i'll accept a motion to file this report motion we have a second all those favor say aye. Any opposed? Thank
Speaker 16
6:25
you. Next. Our next report is the Geographic Information Systems Office June 30, 19 report. This is a two-year report and contains one finding. DFA's financial
management guide requires state ACs to promptly record amounts due for delivery of goods and services and promptly collect accounts receivable. Further, the financial management guide requires ACs to report transactions on a real-time basis to be entered into ACES. Accounts receivable and related revenues totaling over $22,000 and $81,000 that should have been recorded in fiscal years 2018 and 2017 respectively were not recorded until the receivables were collected on March 3rd 2019. That concludes the
Senator Trent Garner
Unverified
7:02
finding. Thank you. Any questions for committee? Seeing none I'll
accept a motion to file this
report. Motion we have a second. All in favor say aye. Any opposed? The report is reviewed and filed. And our last report
Speaker 16
7:20
for today is the Arkansas Tobacco Control June 30-19 report. This is also a two-year report and contains one finding. Again, DFA's Financial Management Guide requires agencies to prepare aging reports at least monthly and for the reports to be reviewed by management. The agency was unable to produce complete aging reports for fiscal years June 30-18
and 19 due to problems resulting from the conversion from the agency's legacy system to its new records management system. As such, receivables recorded could not be reconciled to receivables reported in ACES. And that concludes the finding, Mr. Chair. Thank you. Any
Senator Trent Garner
Unverified
7:56
questions for committee? Seeing none, I'll accept a motion to file this report. Got a motion. We have a second. Second. All those favor say aye. Any opposed? Thank you. Now moving on to new business. I think our next meeting will be held October 8, 2020. Without any further business from this committee, this
Agenda
A. Call to order by Chairman.
B. Adoption of minutes of the February 27, 2020 meeting.
C. Review of reports. (Refer to the Summary)
Arkansas Teacher Retirement – Schedules of Employer Allocations and Pension Amounts by Employer – June 30, 2019
Arkansas Public Employees Retirement Plan – Schedules of Employer Allocations and Schedules of Pension Amounts by Employer – June 30, 2019
Office of the Attorney General – June 30, 2019
Department of Correction – June 30, 2019
Arkansas Deaf and Hearing Impaired Telecommunications Services Corporation – December 31, 2019
Department of Education – June 30, 2019
Arkansas Fire and Police Pension Review Board – December 31, 2019
Arkansas State Highway Employees Retirement System – June 30, 2019
Arkansas Lifeline Individual Verification Effort Corporation – December 31, 2019
Department of Parks and Tourism – June 30, 2019
Southwest Arkansas Planning and Development District, Inc. – June 30, 2018
Arkansas Health Insurance Marketplace – State Insurance Department – June 30, 2019
Student Loan Guarantee Foundation of Arkansas, Inc. – September 30, 2019
Arkansas Treasurer of State – June 30, 2019
Department of Finance and Administration – Office of the Arkansas Lottery Lucky for Life – March 31, 2020
Arkansas Health Insurance Marketplace – June 30, 2019
Arkansas Agriculture Department – June 30, 2019
State Board of Examiners of Alcoholism and Drug Abuse Counselor – June 30, 2019, 2018
Arkansas Assessment Coordination Department – June 30, 2019
Arkansas Contractors Licensing Board – June 30, 2019
Arkansas Department of Correction – Report on Certification of Consumption of Farm Produce – June 30, 2019
Dietetics Licensing Board – June 30, 2019
Economic Development Commission – June 30, 2019
Arkansas Ethics Commission – June 30, 2019
Arkansas Health Services Permit Agency – June 30, 2019
Department of Information Systems – June 30, 2019
Judicial Discipline and Disability Commission – June 30, 2019
Arkansas Manufactured Home Commission – June 30, 2019
Martin Luther King, Jr. Commission – June 30, 2019
Arkansas State Military Department – June 30, 2019
Arkansas Minority Health Commission – June 30, 2019
Arkansas Psychology Board – June 30, 2019
Arkansas Public Service Commission – June 30, 2019
Arkansas Real Estate Commission – June 30, 2019
Arkansas Rice Research and Promotion Board – June 30, 2019, 2018
Arkansas Tobacco Settlement Commission – June 30, 2019, 2018
Arkansas Towing and Recovery Board – June 30, 2019, 2018
Arkansas Wheat Promotion Board – June 30, 2019, 2018
Law Enforcement Adoption of Racial Profiling Policies – 2019
Central Arkansas Planning and Development District, Inc. – June 30, 2019
Southeast Arkansas Economic Development District, Inc. – June 30, 2019
Arkansas Department of Environmental Quality – June 30, 2019
Arkansas Geographic Information Systems Office – June 30, 2019, 2018
Arkansas Tobacco Control – June 30, 2019, 2018
D. New Business. The next meeting will be held October 8, 2020
E. Adjournment.
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — LEGISLATIVE JOINT AUDITING - STATE AGENCIES, Sep 10, 2020 | Agenda | 2 | Official source ↗ |
Speakers
Senator Trent Garner
Unverified
Speaker 6
Speaker 8
Speaker 11
Speaker 14
Speaker 16
Speaker 18
Speaker 21
Speaker 26
Speaker 30
Senator Gary Stubblefield
Unverified