Legislative Joint Auditing-State Agencies

Members of you can please take a seat will start and. call this meeting to order first thing we need is adoption of the minutes of the September tenth twenty twenty meeting I have a motion motion by Senator ease we have a second second our things out in any post thank you now we'll go to review report for get there just a reminder you can sign in sheet in a back room and please identify yourself for the record when speaking for the minute so that Tom. Thank you Mr chairman today representing five report with findings and we also have twenty one report that don't have any findings and they are listed in the Alzheimer beginning on page one. Yeah. The bill to the reports no findings if no questions I would entertain a motion to follow all the report and Fallon's motion a motion we have a second also say aye. Any posed all right moving on. Our first report Bonnie the department of higher education June thirty nineteen report in this report contains one repeat finding. The eighty oversee several state funded student loan programs student to receive the loans may be eligible to have the loans forgiven if they meet certain criteria students not meet the criteria are placed in repayment status. The ace is required to maintain student loan subsidiary ledgers to track change the loan balances throughout the year. The subsidiary leisure then used to just longer stable and asus during the fiscal year in closing process. We perform two samples of two one thousand one being the active and would be the enacted. Our review of thirty one active individual student loan falls revealed that for rebuild for instance telling over one hundred forty thousand dollars which it was unclear if collection should have been pursued order for give Mister Moore to due to insufficient documentation. Or another for instance telling over thirty five thousand dollars in which the documentation provided did not match the subsidiary ledgers resulting in an understated receivables balance there was one instance of loan forgiveness totaling over twenty two thousand dollars we were unable to recalculate due to insufficient documentation. Our review of the thirty two in active student loan file real for instance telling thirty six thousand dollars they should have been placed in the repayment status and pursued for collection as a result of recipients not meeting the long requirements. Three instance telling over ten thousand dollars in which the documentation provided does not match the subsidiary ledgers resulting in over state everything will bounce and three inches tall and forty five hundred dollars of understated to the moments that were placed in the repayment status. Mister chairman that concludes the fines for the part of our education. Item similar like last meeting we don't actually have the members of the committees origin is being to come here because of the Kobe nineteen and actually eighty H. called me before said that most their leadership had Covin or we the quarantine from it so so the last time you have a question or want to hold over I'm more than willing to listen that and we have the question will make sure we try to down to get an answer for but with that I'll take any questions committee. Seeing none I entertain them house unit. C. H. you're gonna Dennis offices there by yourself for the record all right Jimmy Hickey thank you Mr chair I guess one a little bit more information on this because if I'm understanding this right you all reviewed like thirty one thirty two. Tapper accounts. But looks like even within that you had four three three. That's a large portion it looks like thirty percent of a mad issues thirty or more than thirty percent which reviewed. Yes Sir Senator Hickey we this is an issue that's been ongoing for several years they've had this is the biggest programs here or in the active or the dental loans in optometry loans and there are several I think there are the city of inter six in active programs and it is not the does any money missing this is just purely recordkeeping that they're not doing a good job of reconciling their accounts sable back to sublet yours in making sure that they're putting in repayment status when they should. So that's the kind of issues that were noting in this goes back I think back to two thousand eleven we've had a finding on this and they worked on it it got better and we pull that out and we had to put it back in here as of the last couple years okay that there's one of their sewers as for instance is told one hundred and forty thousand dollars. House those been on the books for those is that something that does your resume or let me see if I have the information that specifically about that I don't have the dates of those but those are active student loans invest. Those should have been placed into. We couldn't tell by the documentation if they should have been played three payments as for forgiveness there some requirements in a different by program and they just had been doing a great job following up to see if they should be getting the money back or if they should be forgiven the loans. Yes about thirty five thousand dollars on those for on an average per student. Is that. View to a hundred forty the it so for a minor Senate writers a hundred and forty thousand dollars right there it's only for instance is that correct so this thirty five thousand dollars per student on average yes yeah leverage I don't have the specifics of each individual one but date in there was any evidence that they made contact with the students to see if they met the. The forgiveness criteria. Mister I don't know if we should file this or just hold it for them to explain this betterment we've been having trouble with this for years it looks like to me that of the sampling they did is thirty thirty five percent of the total number which is. Waiver order than it should be and in that particular one with the four instances that's an average of thirty five thousand students it seems a little over the top to me well we wouldn't be pursuing that to see if we're supposed for give it or try to collect it back for some other students. By senator because of the unique circumstances this I told committee members of there's any questions they want answered we would hold it over so what I will suggest is we get with Tom after this and get your list of questions specifically listed two rooms they can have an answer response to the official agency but with that A if there's no other questions I say we hold it till next week we need a motion that on it just yet that will Yeah we have a motion without objection to hold this finding until the next legislative audit meeting. Thank you Sir second thank you. Next we're going to the Arkansas department transportation. Thank you Mr this report is the department transportation June thirty nineteen report and it contains one finding. The eighty reported to us that an employee falsified travel reimbursement telling almost nine thousand dollars from November two thousand eighteen through January two thousand twenty. This individual resigned from employment on February fourth two thousand twenty in the AC with held his final lump sum annually for payment of over thirty three hundred dollars Leding almost fifty five hundred dollars to the agency. On July thirteenth two thousand twenty eight he received reimbursement of twenty five hundred dollars from the employee and they entered into an agreement to repaint or the remaining outstanding amount of nearly three thousand dollars. Furthermore the AC agree not to pursue a criminal or civil case against individual if the balanced duties repaid by July first two thousand twenty one we have referred this to the prosecuting attorney and I will share that since our report we had three thousand outstanding thank you the individual has made an additional fifteen hundred dollars or the payments leaving about fifteen hundred dollars as of today there was a five hundred dollar payment is with which brought it down to fifteen hundred still owed. Thank you Tom the only question I have is the so in referred to the PA It seems like they're conditional whether they'll press criminal charges not. Is that still to the agency to do that or is that a referral different in the agency's handling of it I'm not real sure about that will send it over the prosecutor what the prosecutor does with is really up to them I don't know if they'll work with the agency to see if the AC would doesn't want to pursue it they they may or may not the prosecutor might or might not pursue it I don't how it really know understand how that works okay so the question I have I'm just I'm sure the agent is going to follow up on that and if this is the best course of action on people works on a whole with money press one know that we do our due diligence on our end to make sure we did it I think we have a couple questions popping up because that a seat number six the number six please identify yourself for the record. Representative love. A thank you Mr chair in I guess I was kind on the same nine a the only issue in regards to number one because we've seen something like this happen multiple times. Do we have a mechanism in place. Well first of all sure agency and you to allow unilaterally two of the choose not to. I guess prosecute in individual the does this because we have to have some sort of mechanism and I know that we say we turn it over to the prosecuting attorney's office. But there should be some sort of mechanism in which the agency just automatically report something like this is so do do we have a mechanism and this is I guess the staff do we have a mechanism in which an agency is required to report a finding like this yes Robbie that's in the code that if any I forget about for free with the dollar amount of if it's a shortage of a certain amount they have to report that to us and they did report this to us okay are the number two and as a follow up is there a mechanism in which is this is is this employee working for another state agency. Not as far as we know okay in is there a mechanism in which we can actually put unemployed like this on a no rehire list. That's been discussed in the past I don't know currently if there's any mechanism within this would be within the aces system if there's any if they've ever came up with the like that I know we've talked about that a committee in the past but I don't know if there's been a solution the for their not share it would be my recommendation just from this seat there we we we look at legislation like this because you for if an employee I mean they willingly and willfully pretty much tell from the agency is still from the state in so number one they should be re hobble number two in an agency should be able to act unilaterally and I'm not saying that they do or not but they should be able to act you know not only to actually choose not to turn this over I guess I just. Then there are some unanswered questions and I guess there's nobody here from department of transportation because I would really want to see how they handled this some. I thank represent love I know in this committee along we've discussed numerous times about some kind of mechanism for re hiring because we seem callous examples of people you're right we hired by another agency in and have a criminal activities in the future I'm sure Tom is many years experience conflict that we draft legislation been discuss I haven't seen a copy yeah but I think that's a good idea for the second part is for the for an out that's an interesting question I don't really know how to answer that but we get two more questions in the queue and we'll see if that kind of lumen eights more what's going on thank you Sir. C. eighty two Senator Hickey. Well actually represented locals by all around the question I was going to ask the staff. basically along the same lines mine was though does that agency even have the authority to enter into any type of agreement like that not to pursue criminal activity and that's I guess that was my thought and the thing is is whether or not that would even be a valid contract on something like that yes from a legal perspective Senator Hickey I I can't answer that question I don't know the answer to that okay. Where we can work on that a little later in I heard senator garner say we would probably need some draft legislation as far as the as it relates to the rehire this type of individual also so thank you Mr chair. Thank you now committee of another's couple questions we had about this the question I have is do you want to file these filings or do you think we need to wait until for the time to have discussed further would park transportation. Yes Sir for sure but please. Yes Sir senator we could just hold this one as well to discuss with the department of transportation because I and I'm very curious on how they chose team to enter into an agreement with this with this But this employees some of the state earlier and differ Senator Hickey anybody at a question I said I'm going to hold it over out of respect for the members not having people in front so that I'll entertain a motion to hold this finding to our next legislative state agency automated Senator Hickey I think you still lit up actually. Let's try to get this right redo it if you don't mind Sir. They get it in in addition to that would staff mind doing a little research on that. To see if that's even the even an option for an agency of the state like that to enter into an agreement so we'll have at the next meeting sure I'll talk to Mr air in our office and see if he has some some some information on that in the in in years past I know that let god audit is been actively involved in helping you know draft legislation along lines what represented love is if we can kind of go ahead and. Go down that road may be a little bit that we could to maybe get some draft legislation to begin looking at for the next session. Senator would you want entertain a motion on that front as will we can modify the motion may will ago or yes Sir if you don't mind that would be great okay I think I entertain a motion to hold this funding for next legislative audit meeting in and to in addition to that for the motion to start draft legislation for the re hiring process of those who have a how you define that negative autumn finding or criminal activity what do you think it's Senator Hickey. What are we just let staff of of. As it relates to this topics you just kind of leave it at that let them kind of work on the legality of it what we need to do sounds good the we have the motion from Senator Hickey we have a second. All of their set out do you have a question okay we have a second all in favor say aye any oppose thank you this will be held to the next meeting and we'll have that draft legislation on moving on top. Our next report to the board of examiners in counseling G. thirty nineteen report this report contains one finding. Internet life to renew old or not reconciled to treasure deposit in the news exceeded treasure deposit by over three thousand dollars additionally ninety four checks were held for more than fourteen days before being deposited be sure the close of finding. Thank you any questions committee. Seeing none I entertain a motion to file this report a motion presenter eclipse second have second all six a I. He opposed are moving on. Earnings report is a board of dental examiners G. thirty ninety report this poor also contains one finding. All of your basic expenditure bill that eight transactions totaling over twenty two thousand dollars remiss coated in the journal nature as follows. Five transaction representing legal fees telling fifteen thousand dollars were incorrectly coded a validated parking. One transaction reading the purchaser for assets totaling almost sixty four hundred dollars was incorrectly coded to preening and as a result the assets were not added to the aces asset listing and to transaction representing advertising cost holding a hundred thirty two dollars were incorrectly coded to subscriptions Mr that concludes the finding. Thank you this is all just miss coding there's no real money be involved or anything like that that's correct perfect any questions committee. Seeing none are entertain a motion to file this report. I have a motion we have a second I have a second all as they say aye opposed are moving on the last report is again fish commission June thirty nineteen report this report also contains one finding. The actual game and fish commission notified us of the following this state property. On June first two thousand nineteen a digital camera a camera lands in a laptop computer with the combined cost of over thirty one hundred dollars were stolen from commission employs personal vehicle in little rock. And on April ninth two thousand twenty stationer spotting scope of the cost of a little over two thousand dollars was reported stolen from the bail slew wildlife management area Mayflower. Incident and police report for fall for both the status sure the clues binding. Thank you as a sponsor cope like a sum that like tourists who come to look through some light as minister would know and I'm trying to pull off installed are you any questions committee. Seeing none are entertain a motion to file this report I have a motion we have a second I was there's out any opposed. The vote the report is filed moving own next we have a the next meeting will be held on November twelfth twenty twenty without any further business from the committee this meeting is adjourned.