Legislative Joint Auditing-Counties and Municipalities

Our art in commercial city county local government. Uh i'll just start right here with the called older by the chair and then adoption of the minutes june war has anyone got her go through that pretty good. So we're going to get one got a second all those five or six years or a okay all those reports okay miss the review of reports on here. Oh okay that's a different one thank you sir all right discussion of act seven oh nine of twenty twenty one repayment of how I turn back money down a fortune forton here no sir they're they're not here this is something they you know they're the tanner fault and is requesting to pay less than ten percent of the general revenues back to the street fund they made a request a few months ago and that particular meaning I think it was the main meeting this committee voted to get together a a process and so they voted in the general meeting too. Adopt a question here in fulton has completed that question it may be in your packet but the the long is short of it is the requesting to pay back two hundred dollars per month and that would be five point six percent of the two thousand twenty one general revenue in that's a nine year payout so this will be the first one this committee would approve um after the adoption of the process so it might be a little bit trinsetting but anyway this would this would be the will the committee if they want to accept forms request to go read her thank you thank you mister chair my understanding is it goes back to two thousand and eighteen when they were miss been in this money they weren't audited for three years and a they started paying it back once they noticed they were being at two hundred dollars a month and they are looking at the revenue very small revenue they have seen that it it appears to me they're making the effort uh and I would make motion that we do accept it okay committee you've heard recommendation a representative direct second okay second all those in favor say are opposed to no right. Our next seam is a review of reports thank you mister chair is what we are usually doing is we begin with the reports with those who we have invites that are guests that are here the first report will look at is washington county for the years two thousand twenty one of two thousand twenty in that report begins the findings begin on page two receipts issued by the tax collector's office exceeded bank deposits by twenty six thousand dollars during the period january first two thousand twenty three february seventh two thousand twenty two it appears at the office manager who resigned in february two thousand twenty two was castodian at the end of positive funds continuing on page three using a mobile banking app of interdeposit six hundred ten dollars a six hundred ten dollars check issued from the share circuit bank account twice in two thousand twenty one the county's failure to reconcile the effect of bank account resulted in the transaction not being detected as report night the county had not recovered the phones the balances in the december thirty first two thousand twenty one in two thousand twenty commerce are you bank account we're not completely identified in the amounts of fifty six thousand dollars in forty six thousand dollars respectively a similar finding was issued in the previous two reports expenditures from the shares communication facility and equipment fund on our not all made per pre number check non compliance with code the similar finding was issued in the previous three reports dating back to two thousand and seventeen sheriff david norwood is here to answer questions. Sheriff is good to hear you it's good to see here they are is there anything that you would like to currently feel as in concern this situation sir okay as far as the collectors office all this been turned over the arkansas state police by the prosecutor's office. The six hundred and ten dollars. Oh currently our criminal investigators are working on it to to recover the money it was a double transaction by it was. That phones that they had a person received did automatic transaction and then turn around went to the bank and cash the. Which I don't know how the bank allow that to happen but but on my part by night keeping up with the proper book work he get past us and that will south I can twenty twenty which now the banks want hours to recoup the money through them we have to go to the criminal process to get the money back thank you sure if you know I have turned that over to the prosecutor yes both the. Members you have you've heard everything concerned in this situation is there anyone that would like to add or say anything about this if not we're going to yesterday will file a report are those are five or so yeah those guess I know okay. Sure that's up that's all we'll need for me so okay you don't need to know anything about that balances december thirty one twenty one that may be a good idea sir you go right okay the current officer may injure and stuff here thank amber soon and going on in in towards she quit last year. But we had a buying in in nineteen which was brought to my teaching and course co would happen in twenty twenty one which the book work was still out of articulator right now i've got a person that's going back in the night ten in bringing the paper the book working stuff back to current twenty twenty two in in in the future get it up today so thank you sir hope thank you thank you i'll move on soon until he want you to make motion after we finish your average one no after review the reports later have to help okay all right we're going to go back to the city of four city because we have a guest here that I was just made aware of four cities on page one eleven unauthorized withdrawals totalling sixty two thousand dollars remain from the city's bank account between february march two thousand and twenty two the bank discovered the unauthorized withdrawals from return thirty three thousand dollars in eleven thousand dollars to the cities account on march seventeenth and twenty fifth of two thousand twenty two respectively the city did not dispute these unauthorized transactions within the bank's two day dispute period therefore the city was unable to recover the remaining seventeen thousand dollars additionally on february sixteenth two thousand twenty three the city paid the bank five thousand seven hundred fifty dollars a settlement for undercovered fraudulent charges incurred by the bank. Due to a banker on february twenty fourth two thousand and twenty two foreign ploys were paid twice resulting in salary over payment civil fifteen hundred seventy five dollars city personnel discovery of the overpayments upon reconciliation of the bank accounts but were unable to recover the funds from the bank additionally the bank was unable to collect the duplicate payments due to insufficient phones in the employees accounts although the city is sort reimbursement from the employees no funds had been recovered as of april twenty seventh two thousand twenty three the city paid credit card charges tolling six thousand four hundred thirty three dollars with no supporting doc documentation or indication of the business person purpose in our compliance with code therefore the validity of these dispersements cannot be determined in addition the city paid charges tolling six hundred ninety five dollars that I need inadequate supporting documentation continue on page two while testing compensated absences the following issues were noted leave a correct did not always coincide with the cities policy beginning in any carry over rights were not consistent with the cities policy leave use per the compensated absences report did not always core like with the time used in the city's parallel records eight employees had negative ending vacation or sick balances do the new inconsistencies in the items previously noted we were unable to determine if employees were allowed to take leave prior to earning this time a similar finding was noted in the previous engagement clerk treasure derained cochran is here to answer questions yes ma'am you're welcome here today is something that you may want to speak about that would countly put a little ad on this let's start with this employees being double paid which was down by the bank and they told me it would and notice it the second day that it help one. And the bank said that they would. We find the cities money but then they wait it and then they say it will even help positive pay in place so we can that recover that money for you so our hail recovered all the money is sell one employee which he quit so i'm still trying to recover that so the money has been recovered to double pay. Um now the bank. They were spouse put all the money back. Interest with talking about. It was a credit card discovery and they said they would put all their money back but they did not so that's when the arches came they found out that they put it out backed up seventeen thousand so I went back to the bank and we asked you had talked about is that well we will look in areas old she sent the mayor level I don't know the outcome yet but they still look checking into putting the money back into account if not in this can be turned over to the prosecutor natalie i've seen attorney from there he he said he would help it. And the employees compensation for the second vacation. Our system was outdated we had a windows app and it was trying to compensate calculate employees time because their sign but it wouldn't do on a good job so we have updated to a bars on eleven and i'm still working on getting everything back in place for a second vacation. And some and the ones that were in the negative we have recovered that time from their employees they're still working so we did take the time back on employees representative or something that you would like to yes I have a question yes thank you mister mam on the very first when I just had a quick question on the first one on the withdrawals told sixty two thousand in their help paragraph this have you all determined who did it and is that person still employed about this now it was a employee it was a discovery card that the bank let come to account. Oh so follow it so when it well it wasn't it was at one of the city's discover cards now is using I just quit quite follow whether sixty two thousand says unauthorized withdrawals totally sixty two thousand it was not to serie it was not employee it was a discovery there bank statements see it this government recall we don't know where it came from but the main glad it come out of our account and they said it was there and they didn't catch it and they respond to put the money back but they and they did decided that they not gone put out the money where they still work in with it they say it thank you for central m something to let you yes sir they've been sharp the name of the bank that you're with please armor harmony bank okay and so they refunded a portion of washington yes but the other portion that they have not refunded it also involves the discover card ads all those were discovered courts okay the majority okay and the communications with the bank did they give you an expectation of when they would have this resolved or they would have an official position as to whether or not they're going to refund or not well they really haven't said that may I get the mayor involved with he's been talking to the president which they changed president so. He he's working along with me with this trying to get this resolved so right now we don't know if they've gone out when they gonna put the money back here can I have stare for question did we have a situation refresh my memory like in the last month or two did we have a situation in here where there was a bank and for city that somebody got being done audit because they were under uh they they had too much money in that bank or command have a senior moment and you remember that I don't recall you are you saying the day had more than two hundred and fifty thousand dollars by four point seven million dollars it was in a bank that was under its it's possible that this very possible but I don't I can't recall for could we check in which staff mind checking scene and and research in that and see if that bank is the same bank that they're dealing with i'd just be curious to know and it may not be related to all but if you don't mind please that's okay mister that's that's great okay thank you that's great representative lanning is there something that you need to speak about yes yes mister chair and my regular site going alright thank you mister chair down on the finding with the clerk treasure says there was sixty four hundred and thirty three dollars there was charged on a credit card no sporting documents or indicated the business purpose how did you credit that back to an account without knowing which account to create it back I mean to take it out of the point we hand the invoice and we head out the invoices then when were the statement it was paid. But I just couldn't find the invoice and the statement it is like you just disappear from my office i'm seeing a look at for that it was disposed out among the different departments they used to carry that was the cities credit card mastercard but the statement and information which is they weren't there I don't know what happened to can you not get that documentation back from lisa I can call and get a copy have you done that now because i'm seeing looking at me I don't see how just disappeared I know it was paid it was in that sill someday it was paid and I have the breakdown dead was paying for please who had possession of this credit card it's in my office mc the club trade yes it's in my office sell and you check it out to different people yes my clurks do yes okay thank you mister chair thank you representing representative laws thank you miss chier my question is also for staff so i'm not well let me first ask a question to the the treasurer so you are saying that this discover card is not the city of four city number so mister john's point when we went down the week there are found is did we verify any this information i'm just i'm just here when we let me get it uh the way you what what has happened here it's similar to some other a lot of other planning to repair some of it is straight from the bank in there. Someone has stolen the the cities routine number and bank account number making withdrawals in some other did go through the credit card and so i'm not looking at the actual work papers but did the combination of what she what she saying answer my but came straight out of the bank account so it's my understanding to so that it's we've had a lot of these findings over the last two years uh mostly it's just they steal that information and then they create a fraudulent chair can take money from the city this this time it was a combination okay alright in the end the other i'm back on the final with a sixty four hundred and thirty three dollars now so so ee probably say in the she didn't have any documentation which you dispersed I did have a documentation and it was dispersed among the different departments say we have one credit card. And is checked out will let out the department use it and they bring us invoice is back and their statement and the invoices was pay and it was file but I don't know what happened to the bill itself but I can call the credit card company and get a copy and we can go from there okay at the end I think this that never be good okay and then the last one is so we have these I think there's a repeat finance on the back in our here used you stated that she did reconcile from the eight employees but my first question is is the leave across rates so you update is your system so there so the this won't happen again is that what is that one of you and i'm also working with that support which is some point they're helping me get it i'll set up where this won't happen again okay so let me ask you this is the leave of cruel policy the the rights did not cost out with the city policy. The city policies may how are you reconciling that that is well I have been talking with the mayor and he said that we probably need a considerable change in our policy to complain with audit procedures. Okay so the I guess that's the information that this committee will probably need is there when you are to there it so I guess mr johns how do we reconcile the as far as because there's a mere making this a priority to go here and get its policy taking care of we just talked about it and is it would be the person they are policy come merely they would have the name they spoke about changing it in the past but they never moved down it. So I guess mr charles do we send do we send something to the to the city in regards to this this piece of this is that the way it it works this planning is a repeat finding and so they have to if you have a repeat planning the same officials still in office they have to come here and and answer the question and that's what she is doing today but here's what will happen if it's if this is still the case in the two thousand twenty three engagement will have a repeat funding again and will have the officials invited to come to come answered the same questions based so I think it's it's going to be fixed with twenty three will work and now fix in that it was something going on with our system and our support so they're working with us to get it correct so I think we'll be okay this year with that okay are we as long as you get it corrected at this what I was concerned about because it's a repeat okay all right thank you mail i'm done sent to him do you have something that you need to just want quick question tagging on to representative fights question while I go you you're the one in charge of the credit card correct yes okay and if somebody wants a credit card they got to sign it out by you correct yes okay I can say this wind no longer have a credit card it gets game less and work I mean I don't know how to get the number but the bank refunded I get to report the other day and they refunded out that back so we won't be charged for them and so the charges that are on the audit report you didn't sign that card out to somebody who used it molitiously then something something happened outside of your control whether somebody hacked it stolen at the bank let some through its not on you it's on somebody else right. Yes okay that that she wants I don't want to get out was that you were a control of credit card but you didn't give it to anybody that used it that's resulted in the art findings that are on this report it happened outside of your control now are you talking about discovery card if that's the car that you are effort seeing a while ago yes ma'am the one that the banks suppose that I refund the money yes ma'am yes des we don't have a discovery call at the bank let that they say the bank said it was fraudulent they found the fraudulent in charge on behalf of us and they were supposed to put the money back but they didn't put it all back okay and and did you say that is it armor banker farmers bank no arma are like arm aware of this okay thank you thank you the chairman represented thank you mister chair just am I going back back to that first finding up there can you explain why the job have to pay the bank that five thousand seven hundred and fifty dollars a settlement if it's the bank's fault and and have did you consult an attorney or do you have a city attorney now that was a previous mayor's decision then I asked him not to do that took it to the council and the council world. What happened with their the banks there there they paid it all back and the less payment the bank as four half of they said they could need the whole amount. So they asked for her for which was fifty seven hundred dollars and. That was the may on the council's decision to write that check follow it have you considered taking that to the banking department and asking somebody in the state of it just seems really odd if it was the bank's fault and you're now paying the bank but that's just my two cents worth thank way. Where s and f that portion of it back along with the band was so what was taken from my account yes. Do we need to we don't need to turn this over to prosecutor we are they get in this non right um this this report will be turned over the prosecutor because of the the fraudulent bright bank charges that the withdrawals are so really mean staff would recommend following their poor those findings the finding that should go to the prosecutor in the ag is going there with someone like to make that motion for level of second all those in favor say okay. Thank you ma'am yes we'll move to the city of that is going to be on page eighteen this is city go for the years two thousand twenty one in two thousand twenty counting procedures from this pouder set forth and arkansas code fourteen fifty nine nah one or one through one nineteen the city was a non complaint to these codes and other proper counting procedures as noted below cash receipts and disperse journals were not properly maintained or reconciled to the bank bank accounts were not properly reconciled and reconciliations were not approved by someone other than the prepare pre numbered receipts were not issued for all funds received or issued sequentially receipt books were not mean properly maintain pre numbered checks were not issued um for all dispersements in the checks were not issued sequentially loop that check numbers were issued in the general fund checks in our always have two signatures of two authorized dispersing officers invoices and supporting documentation were not provided for all dispersements a fixed asset listing was established but did not include all required information the city's posted for annual financial statement did not include all the cities receipts and dispersions back by and the cities and dailiness similar issues were noted in the prior reports dating back to two thousand and seventeen uh recorded treasure shield mangram is here to answer question there mem- maybe one thing that you might want to know is you're asking questions staff is planning to be back at the city of gold and start that two thousand twenty two engagement in the next two to three weeks. Miss my room yes so it's good to say you're right thank you yes ma'am is there anything that you would like to count explain for us here that maybe could channel and lied on what's going on yes sir in twenty seventeen when I became the record as your anger and weening in that knowing anything and and twenty nineteen I think it was a effort to move on with quick boots so they got with the council and answer them they would change quickbooks because it was messed up a everything that was in there like the money and I could never get it get the books the balance right and when we get we changed over to csa somewhere and after we changed it over the beginning balance was supposed to been putting in but and wasn't right so it made the reconciliations and at the weekend and that we get csa we have prenumbered cheeks is. I'm trying to think of the word it make needed and think it is numbers they're going in it is printed battle csa somewhere check thing they press the printer so as stop right and stuff down in the books because the csa sound where he's own receipt numbers so when I would put money in the bank I would always write the receipt number of the computer on the department so lips and take it to the bank and my as a beer obey and i'm not a young area in a more realized it in some times. When i'm on csa I think I forget to change the from general phone to street back on etc our rate of chicken and into her in one of the council members about it to my intention that two people didn't say the chain I guess I was in such a hero to send them to be it because it was late in that and want to be linked so out to she told me that I may sure that he has someone else there when I say and check someone to take it saying it is wheel yes ma'am now from this point forward let me escalate it are all the checks being signed by two people yes so they are. Committee is mr hammer go ahead said thank you thank you for being here today we really appreciate you comment for personal explanation appreciate it my my question is some of these and out of similar issues have noted back to two thousand and seventeen how long have you been in your position please use six years yesterday okay and as far as what what would be your response to what led slave art it says as far as having difficulty getting complete records that they have requested what at the time and turn into and I think it was they were remilled in the city and the records just get mixed up I couldn't ban everything because everything in the office and all over the beard and was told it so my husband who was the mayor at their time made the smith he had left all the books and stuck in the us office and when I asked for the books you were the mere that we have now sheeted she don't want to give him to me the council members of his exterport she still won't get me to me one of the case you come out the current mayor and yesa okay go ahead thank you so she won't give me anything that I explain she always think that is maple in that one to be arguing bargain with anybody i'm just untired of the river adult do foolishness i'm so saying was a raise like that my mother then bring us up like that when she became the mayor. When she passed aiming and I was i'll cannot create his and thieves and our rodolated legal attorney and a rural letter back saying that I could so her personality but annually in the morning okay alright uhm so let me ask you do you know you you heard like ought to say that they're going to be in there when did you say two weeks two weeks do you think that that everything will be in order by the time they get there in two weeks or do you have any concerns that they're there I have trouble finding things and yes I do have some concerns because uhm account one of the accounts is saying an external person held with the reconciliation and the beginning balance of the bank the council that they could be reconciled right in uh unsupposed to be going to reclaim october of this year so I can hand some training because action in this is my present emotion in our office to do that type of work in it makes me nervous so I have to go oil from pre income back in and see a package if I can do it correctly not trying to be funny and and thing but yes sir okay so so you are going to go you haven't had a tree training of it and also okay and and i'm sorry or you are hired or you elected position i'm sorry collected i'm sorry I was appointed a person didn't have re employee okay so you're elected in okay well I commend you for going to get the training I hope it helps and me to hopefully hopefully you in the mayor can get it worked out so that both of your won't be back up here the mayor didn't come with you today did you know so cheer he she he is the sheet she shooting a come with you today no sir was she aware of this meeting today. Yes sir okay all right thank you thank you does anyone else have a question representing fact already has her thank you mister chair it have got two questions letter and the world did you make a budget out for the this coming year and didn't make them but the budget the mayor made the merger and the council approved it okay how did they do that when you can't reconcile the bank account nothing's properly maintained i'm never seen anything with something improper things in the bookkeeping area I would like to add a lot to see the mayor come just the answer some of these questions and i've got one other questions and others money will spend out the road department in the street department has that money been replaced by yesterday okay alright that's all I have thank you mister chair santander something you would like to sell so many needs and through the door bill I got a motion at the proper time please most have been my bar that what I said drama say i've got a motion at the proper time I think matters when he is something to say if it's okay no I want to share work please you want to let it him he used to be the best that the cd before we get a new mayor this year my name is matt is smooth i'm in a former mayor and just a secretary of sir could you wish to speak sir to the committee. Yeah you're the former mayor labor kind of getting in here some questions I was controlled thank you for bringing your licer there might be some questions as committee would like to ask you sure my name is matthew smith former mayor ago and also recorded trade is also developed over my wife. So yes in anything that. Any question did you may have i'm making him proud just while I want to see that with a minute. So. I'm open soon drama go around from all right thank you and were you the mayor what what years were you the mayor please nineteen twenty two okay so everything some of this issue some of these issues take back to seventeen some of one covered the time period that you were in office so could you and maybe you if you heard representative fights question about how did you make a budget in those kind of things and can you can you give any can you share any light on them on these issues that happened under your watch as mayor in pacific one you started with the budget. Where you can start with the budget but then we're we're looking at a list of about ten twelve different things right in and so i'm just i'd just like to hear your explanation of your parcel please i'll try my best thanks sir for the budget. Most of the time we'll start back in seventeen when we were with it uh quick books seen a point started in april of twenty twenty and we had one of the agents we've seen everything in her and she was putting everything in the system forced to get a start it down thing that she didn't do proper was transferred to money from the same point i'm so quick books to send a point deathwhile reconciliation though for a rear to write money's way back to seventeen so now we can go back to twenty only switched over and we got a young lady named dominic within a point she is going to come in and reconcile and get out it straight so now how we did the budget and everything I just mainly uh most of them are here because I know wave the thing was spent for our make up the budget and give it to the council and we approve it uh. No one reason why everything is all we didn't think they're off because we thought the normal verital only for making insense of what we just going back the number of design system phone and I guess this what we are wondering we'd like to get straight because if the hearing from a spouse here in this hearing for me because. It is just. We learned that it I do because the now we find what we need to work on you know we don't have an interview start we just have one to try to fix it documentation wires I get on our own time as you got to see why a young cover everything we come from way is going miki afail the organization is the biggest thing of keeping up with everything so what what qualifies something. Well ladies we have emotion can like to make a motion to my motion would be that we would hold the sovereign until the next meeting and that staff sends a strong request to the mayor in members of the city council that are able to attend to be here I think we've seen this before last month was a guster that came and they came in full force he was beneficial so I would make the motion that we hold us over and that the staff send a strong letter of encouragement to the mayor and as many of the city council be here at the next meeting as well as a young lady at the end of the table that you okay have heard of the motion by senator hammer was someone like second voting okay it's been second all those in favor say I was vote young the manufacturer is here today with ois just for less you know jack pressures here in these folks are great they will help you and every while you just reach out to them and are. We just foot forward senior hopefully next month thank you all for me and you. Okay all right we'll move to the next report which is the city of ozen on page twenty one thing I would like to I guess that came out in this last visit by the city of gold is that the mayor the current mayor took office on january first but that would still still be a good exercise though to have the new mayor here as well but just so you know so city bosem for the years. For ten of those end for two thousand twenty two two thousand twenty one in two thousand twenty cash receipts and dispersed journals were not properly class fund did not have yearly totals for each foreign is required back home in addition to some check dates and pays noted than the dispersement's journal did not match the cancelled check a similar finding was noted in the previous report standing back to two thousand eleven bank accounts were not properly reconciled and we're not a previous someone that in the prepare is required but code the similar finding was issued in the previous report stating back to two thousand and three number of receipts were non issued for all phones received in our compliance with the cone as somewhere finding was issued in the previous report stating back to two thousand and recorded treasure diana dodson is here to answer questions. Yes ma'am we're welcome yes now is there i'm sorry I am so sorry I get foot double there is a lot going on here so er back and back up rule quickly okay I skipped one but now okay ozen this is here ago accounting procedure for his families are set forward and are concerned code fourteen fifty nine one or one through one nineteen monthly bank reconciliation is not prepared annual financial statements were not prepared and posted a monthly financial statement was not presented to the town council pre number of seats were not issued for all funds received cash receipts in the sparshman's journal were not established in maintain a similar findings knowing the previous report recorded treasurer treason lindal is here to answer questions choice and thank you for being here that this is our commercial you do you could probably expect a few questions and if there is anyone that would like to question this lady and anyway just go right a year. She everything to say okay she stole here yes ma'am is there something that you could call let us know about that we may not know the case on the cash receipts that was totally my fault because I didn't even know where we're posted today that but I have caught a month and showed the auditor. And the monthly financial statements they said more president what we've always done in the past lane and now we couldn't do anything we always brought the bank statement in the breakfast and and showed it presented it to the council every month we just as well not every month it would be ever three months when we have our mailing because everybody that's on our committee works full time so you know it's a little horrible people together but when we do get together usually several three months we have the bank statements there were present well the mayor presents them to the council so I may now we don't have a physical statement which we never have because I was one of the council members before so i'm going to correct that though but I did not know that we had actually do that and then the the annual dire posted and I have since then sinner email copy of them to our auditor I just failed to send them to when they don't the on it but after the audit added send that to my copy that was posted at the end of the year the first of the year. For the financial of the year before my my concerns. The. The. Are there any questions that you would like to assist thank you and please don't take this wrong i'm not picking on your because i'm in favor of small towns but knows your population is fifty is accurate when we man went up to fifty seven i'm head to more dogs okay what i've got a ton of seven was in the plan was not expecting that no suck they bought to have a letter where you're going to increase your population so but they won't let me count my doubles on my taxes okay so I can only imagine so a bit of a struggle rarely is because really we have we really don't have any kind of computer ever that we have is outdated from probably nineteen hundred but now we do have upside which really we already thought it would be in places pass you they got some covered money which I don't even know that's probably been three years allow but they've got it in the funds or actually I plan we can get online elsewhere actually going to update our software will we have some real software that we're doing our stuff through it now is well it would be hard as that is done so let me just put it that way okay so the chairman to come in and while ago about municipal league that it thanks in the room somewhere i've heard the do you communicate with municipal league as far as getting directions support education we try to we try to okay but like I said it's a little hard because everybody on the on all it works full time so you know it's it's pretty hard but we do try okay alright thank you. The. Representing fact alright sir thank you mister chair and I know sure you didn't have a budget where I mean now we do a budget every year I don't know if that was just one that failed to the cracks they didn't get it because most of the stuff that we sent to the auditor we email and a lot of the stir okay i'm just thanking that that twenty one because it was just the twenty one but I will kind of give you a background on some of these now you know this report was from twenty twenty one twenty third will one time we have we had a laptop that we don't just a little bit of our payable zone and some of the other stuff in the laptop was an old laptop that somebody just give us but anyways we were using it and it totally crashed in the middle of twenty one so a lot of our records that we had saved in our backup draw was also corrupted it didn't save some stuff so i'm just gonna say that was just probably something that went through the cracks on that one but because we did always do burgers what was your budget for this past year of the total of mail sorry I may not offer the top of my head okay what what are you revenues that you have coming out the only revenues that we actually have is the our water department that you know we have to do a special audit through them every year for the water the this article is just for the general street because really there's not very much that go through the dream in the story the waters where the revenue all comes in from you're not spending water revenue in general revenue are you know certain amount is that we've got smooth well I don't get seven different bank accounts because you ought there's for water the water revenue water made her and then we have a general street but now it's all. Hit separately thank you mister chair. I would actually got another account too that's for that manager we got for the copy that they're holding. But all of it has a different account we even have account that's for our USDA lounge i'll go we thank you for being here a day and arm. Someone won't make a motion that we fell. Five representative okay all those in favor sir. I'm going to alleged to anything or something thank you all I would come through they don't blank to us okay all right that thank you I for is no we all the guests are here that have shown up to answer questions. Yeah so we have no more guess we'll go back to page three or we'll begin to work through this **** from there on page three we have the uh of fifty six they were invited but they had the head findings on the next pages you can see with some parallel items and a fixed asset listing and then overall page far they also had a finding about um their payroll service provider they contacted me they were unable to be here but they see it staff documentation that they had corrected their findings so staff would recommend filing this report. I her recommendation was or someone I can make a motion of our board second old guy thank you all right moving on to the next report of the the city of kids it for the year two thousand twenty one in this report was referred at the request of senator hammer last month he had some questions regarding the weekend in staff answered his question is dearing and after the last meeting so staff would recommend following this report. Got the motions go second okay are those advice they are the policy okay alright moving right along will be on page seven we had three water audits portland a water and seer for twenty one and eighteen in washington water department for two thousand twenty these were deferred until we could get adequate responses and we have a received responses staff would recommend following these reports on the recommendation where someone might like emotion on the question okay representative or it's her thank you miss share part so in in viewing and this is just a staff in reviewing the water at its we are we are actually checking the see if there are fiscally found in different things like this that is that not correct mister. Work water have to get private cpa's to do their their audits and so these findings that you're seeing were written by the private auditor and so when we receive the reports we take a look to see if there are findings in what we do is we ask the entities to respond to these findings and most of the time what you're going to see is is these fightings will be underlying to let you know that we've received a response that we feel like is adequate but uh as far don't do any looking at the water departments so we now look in to see if they're deferred maintenances is actually they have enough funds for a deferred maintenance for anything though we're looking at we are looking at their response they'll sinister is part saying that they're something like they're putting money in there or they've got a plan to to get that to the adequate amount uhm I don't think we have the response in this page we received several responses just real recently we've had a kind of an influx on these water audit lately but yeah the legislation that was passed last time okay well you know there was my piece of legislation so that's why I was really interested in it I had so is is a receipt in but is is natural resources are looking at that the make sure that that the because I thought the. It was supposed to actually look at the deferming is to make sure that they're beginning to maintenance because of the fact that we are some of these cities and towns calm to the state to get there to get you know of money to do their systems updated systems and we weren't making sure there they were collected in the firm maintenance necessary or so is there is that now how it's going I mean yes the private auditors should taking a look at their because there audited by the private auditor what all the law requires is the the city to submit those are its to legislate it and we present those to you in these meetings and that that's it but we don't actually do legislative or it doesn't actually do that work done well I guess what i'm trying to figure out is is it is is is added actually and look into make sure the we are that these model systems are collected in the firm main is necessary according to the legislation and when you say audit are you speaking of legislative or legislative no sir we we don't do that the private we don't do the the water on that's done by probably not yeah I understand that we don't do the water on it but what i'm what i'm asking is this is that we make inserting their wind we get to add it from the private artitures right I mean cause I understand the water added process but are we making certain before they come to the state to get in the additional phones that they are actually first of all monitoring the the deferred maintenance in if they're not the what are they doing in in regards to that before they give any money from the state because that's what the that's what the the legislation was all about yeah. So are miss johnson this got a great within the fight representative lane go ahead yes okay you're boring money from the state you will have to have your audit and you will have to have proof of that audit every year through the length of any lounge you have and so in that case in our cs is the one by a code that takes care of that order or make sure that it is in yes yeah we read in that in parent water sir but the miss jones got rid of here central art nom nonfinished thank you mister chair. Of course. Made a motion of values okay got a motion in second thank you representative care all those favorites they are positive thank you okay alright moving to payg city velorator for the year two thousand twenty one analysis of golf course sales are reports for the per january first two thousand twenty one to march twenty third two thousand twenty three revealed twenty two thousand dollars and the county for cash the city collector was castodian of the undeposited funds in addition analysis of recycling center receipts for the period january first two thousand twenty one to february seventh two thousand twenty three revealed twenty thousand dollars not deposited furthermore due to missing receipt books it appears that at least an additional name thousand hundred sixty four dollars in recycling center receipt was not counted for and therefore not deposited the recycling center supervisor in city collector were custodian of them to positive phones the city collectors employment was terminated in january two thousand and twenty three we noted two invoices of seventy three ninety five and fifty eight seventy eight from a vendor using the same invoice number date and description we were unable to determine if all services were provided and if payments were duplicated on february seventeenth two thousand and nineteen the city purchased the place gate property from elderly do personal in events or edfe a non profit organization for three point four five million dollars on february twenty seventh two thousand and nineteen the city entered into an agreement to lease place to ed for ten dollars annually subsequently on april eighth two thousand twenty one the city entered into con- a contract for services in which it agreed to pay edfe four hundred thousand dollars in calendar year two thousand twenty one. Without additional uh consideration beyond that contained in the two thousand nineteen lease agreement as a result this arrangement is not complaints with the arkansas constitution the city expended one thousand one hundred seventy dollars to business owned by the spouse and elected official for cleaning services without an authorizing order in nine compliance with code a similar finding was noted in the previous three ports uhm these findings are going to depress king attorney in the attorney general there are no repeat findings so no one was invited from the city of elevator. Yeah question okay or if someone like to michael most found this two second our in favor sir i'll post I know all right next we have a investigative letter and investigative report on sony david some park and the city of thorn michelle actually will present those reports. Yeah. Okay okay at the request at the fifteenth judicial district prosecutor attorney audit staff reviewed allegations and misappropriation of funds by former board members it's sony davidson park in scott county our review was conducted primarily for the period january first of two thousand and seventeen through may thirty first of twenty twenty two as you can see on page none of the synopsis the board is a commission and of the paraview of the county but is not a component unit of the county and operates under a different tax identification number as a result the board is not included in legislative audits audit and your art it of scott county currently the board is composed of approximately five members who serve in a volunteer capacity the county owns the part property which consists primarily of a swimming pool recreational fields in pays for some maintenance and repairs to the property during our review period the part maintained three separate bank accounts apart bored account a pool account and a poe football account are review revealed and overall lack of oversight in financial accountability ballot board specifically and proper in and documented disbursements totaling two hundred and sixty nine thousand dollars county officials and current board members identify ten thousand five hundred and fifty dollars in personal purchases and cash withdrawals by the former board president which the former president has repaid in full as of june fifth of last year based on review of bank statements and selected disbursements are staff identified and additional six thousand three hundred and thirty five dollars in personal purchases in cash withdrawals made bath the former board president it should be noted that have the three bank accounts only the pool account had to the personal purchases in cash withdrawals were made. From the part board and po football accounts in which the former war president was the only son on the account are safe review of disbursements revealed two hundred and forty thousand five hundred dollars in payments to various businesses in individuals without documentation therefore the validity of these disbursements could not be determined it should be noted that these vendors range from walmart sams sporting at various sporting unit goods companies and the end there were several individuals that receive payments that could be noted as potential referees or serving in some capacity within the park staff identified eleven thousand dollars eleven thousand six hundred dollars in cash withdrawals made upon the signatures of several board members without any supporting documentation therefore the validity of these disbursements could not be determined staff reached out to the former board president to obtain supporting documentation and he indicated that all documentation had been disposed staff review revealed numerous record keeping in the internal controlled efficiencies which could create opportunities for fraud waste or abuse of funds these deficiencies are summarized on page ten of the synopsis to summarize staff review revealed improper in undocumented dispersion it's totally two hundred and sixty nine thousand dollars in a lack of overstart in financial accountability by the board additionally numerous wrecker keeping an internal controlled efficiencies renoted the results of this review has been forwarded to the fifteen fifteenth judicial district prosecutor turning. Okay they have a few questions here hammer but I think by conference level went up when you said this has been referred over to the prosecutor okay and do you know all three these you stated were volunteers as I corrected I understand that the leaves so okay and then they do you know how long a period the former board president would have held the records for was like one year or was it from the january seventeenth to the twenty second the the period of review would have been the period that he would have been there all right n did he say when he destroyed the records he did not okay so it would have been sometime after the twenty second after after twenty twenty two that's correct okay alright thank you and his name we don't list that in the report until charges are filed okay thank you thank you representative his mail thank you mr chair just one quick question on at the very first when it talks about that the board present paid back the ten thousand five hundred and fifty and then you identified an additional six thousand three thirty five it appears that that has not been paid back and that's correct that's the the new board members that were in there in place now they did their own investigation and and that's where they came up with the ten thousand five hundred and fifty and they reached out to him and then when we came in and did our additional analysis we agreed with their number but we found additional and so that's that has been turned over to the prosecute attorney thank you. Social love colorado sir thank you sir I guess my first question is do we have any other parts like this as far as money generation I mean consist this is to me it's quite a bit of money I don't know if it is to you on but then this quite a bit of money so if if we have parts and a generating this much money but no oversight it seems to be it issue so I guess that's my question do we have been in the parks generating this much money with a lack of oversight or is this just caravan one park you know I guess let me let me start like this how did this come to our knowledge the fifteenth judicial district prosecution attorney received allegations and requested that we come in and look at it from the curt from the new board members that are in place now they recognize some things were off okay so are the so we would normally look at anything like this we would if they are if if the parks and rate department is a component unit of the county with this one is was handled separately they were not a component unit of the county so we never picked it up under the scott county audit they had their own tax id number okay so do we have any other parts that that fall in this type of um question do we have any other parts like this I guess that's all it just only way I can you know i'm not sure that we have other parts like that but what michelle said is correct we are things that are part of the city or the county so you know if the cd or the carrier does not have control over it like the corn core or the city council does not run the park or they don't oversee. Then on a point the board to the park that those would be entities that we wouldn't would not look at okay but I guess some image trying to figure out do we have any of the parks like this because I mean. Surely get the money because i'm trying to describe the i'm trying to figure out how does how does this part get funded did they give funny the some of the money come from the county or did they do they have a city that provide my unlike a a park out there just does not just you don't have money I mean I have a unknown eight parts in place the county and they do not generating the money this is some significant money how does this part keep their money it has just doesn't come out nowhere so I don't have all the work papers in front of me but the county and the board did in or into a contract for a facilities and service agreement in which the county agree to provide maintenance and operation of the park to include appropriations of county funds for these purposes so the county did agree to appropriate funds I believe the rest of the revenue came for from like swimming poor fees like memberships to the pool or for their flight football you know the various things that were held at the recreational facilities okay so I guess that's where i'm trying to figure out do we have any of the parts to either cities or counties give money to the they have a lack of oversight I think you're gonna have in this case that the county had a contract with the part it we're going to have cases where cd's in maybe some counties have contracts with like a quote you know a rotary club or optimist club to run a sports program we we see that on a similar regular basis so do so do so the end do we even look at those if we see there i'd say for instance he went in order to plead even if it was place account even added a class account you have eight parts and they had a contract with the parking do do. Does legislative article look at that to just or in this situation no because that would this would be like a chamber of commerce situation that's that's the I guess the closest thing I can think of is most well I shouldn't say most a lot of cities and counties have contracts with the local chamber of commerce they have the contract will be for a certain amount of money to provide economic development or whatever else is in the contract we don't audit the chamber of commerce now we get a lot of questions about that because sometimes large amount of money are given but there's a contract the senior county's paying that entity to provide a certain service and that's what's happening here is the county paid the the park to provide these services that the county might otherwise provide that the makes it a correct inso once once they give their money then I guess this is just a situation and I just want to know if we had any of the parks like that because then you can have people just out just been in money have they want to in with note with a lack of accountability like who who has a calability who do these people answer to as far as the board who gave them the juice diction yeah i'm not sure if dish and come from the county the the lot of facilities more is that a set up by counties in business deserters diction come from the county who who can get to support the jurisdiction this board does fall under the county they do report to county officials but I think the the new border that's in places aware of what needs to happen in their working to correct. This issue. All right I just have a lot of questions just yeah I think this is gonna be something we're going to have to just get the numbers and it may be something where i'll have to address actually in twenty twenty five to make sure we're gonna have we're going to have to do something because I guess if the county if the county is classitudes this board and in the border she's of doing their own thing I don't know I just I just can I just have questions about this so yeah what we had to crawl this get together because we'll have to talk about this essential of the events right questions here I just wonder is there any thing out there in statue law that that looks a day at and we can look at their with our auditors if it's affiliated with county government or silly government especially if series of county fines are involved in it but we were usually I haven't looked at this particular michelle mentioned that they had a different tax there's several things we look at to see if it's actually part of the city or counting and this one was a little bit different situation sounds like and maybe they're heading toward getting some account building uhm so there's there's already things in the count that you know we're adding the cities in the counties and those in these their partner must the time those parts or ramba city or account. Thank you. They most of our issue okay second all those favorites they are. Michelle do the second one on the city of thorn there at the request of the thirteenth judicial district prosecutor attorney audit staff reviewed allegations concerning improper spending and possible misappropriation of citi of thornton water department revenue by the former office manager this review was conducted primarily for the period january one of twenty twenty two through december thirty first of twenty two in august of twenty twenty two the city hard and office manager who was responsible for collecting receipting depositing and dispersing city phones the office managers employment was terminated in november of twenty twenty two after city officials discovered in proper spending our staff analysis of selected disbursements revealed eighteen hundred sixty eight dollars in improper charges on a city credit card assigned to the office manager five hundred dollars for the purchase of towers for a vehicle not on by the city in thirteen hundred sixty eight dollars in purchases at various businesses without documentation therefore the validity of these dispersements cannot be determined our staff compared revenue per the water department computer system with bank deposits on a test basis and noted no material discrepancies in summary staff review of selected disbursements revealed and an authorized disbursement of five hundred as well as and documented dispersements totaling thirteen hundred sixty eight for which the business purpose could not be determined it appears these purchases were made about a former office manager whose employment was terminated in november of twenty twenty two and this report has been forwarded to the thirteenth judicial district prosecution attorney. Okay my sister internal capacity also yes it has okay they're not here they're not here to speak of one way or another no price pre- no the city is not okay need motion for circuit are those voice they are all those both say no it will move to the next audit city of damble for the year two thousand twenty two at the beginning at the middle of page eleven the city pay twenty eight hundred dollars to have a building removed without falling a lean against the property in knock parents with a code in addition to city did not pass an ordinance authorizing the removal of the building and knowing appliance with code a kolosakim your and a police car were sold to an employee and an employee's mother respectively instead of auction in our complaints with code in addition the sold assets were not presented to and approve by the city council at these two findings or being referred to the prosecuting attorney no one is here from the city because there were no repeat findings staff would recommend filing the report they're most of our ok second although favorite sir thank you mister chair I have a question it disappears your question do we usually badge these there is no action that we usually take on them do we usually dash these and just sometimes the sometimes the chair will say with that exception will file the report but long times with reports coin the proscure attorney usually the chairs allow for questions okay thank you. Thank you. Okay city of gaza on page on page twelve for the year two thousand nineteen the city did not maintain adequate supporting documentation for purchases of approximately seventy six thousand dollars made with its credit cards as shown in the table the city failed to maintain a resource seats or invoices the only available documentation of the purchases were monthly credit card statements for the works card in particular the city allowed employees to use the card for purchases of among other things gasoline for privately own vehicles due to a lack of documentation that total amount used for privately owned vehicles could not be determined on march seventeenth two thousand twenty and employed the city of gaza issued a letter starting that she had used the city's walmart and works credit cards for personal use she middle utilising uhm the same during two thousand and eighteen due to lack of sporting documentation and allocation between are personally use and public use could not be determined she resigned on march nineteenth two thousand twenty in a total of two thousand eight hundred seventy one dollars in restitution was made by the city this report is being referred to the pasking attorney and this report was performed by a private cpa there were no repeat findings we don't have anyone from the city to answer questions in this work that legislative audit staff did not do so again the staff be referred to the pay in the attorney general so staff would recommend following the report motion file second all those those they are political thank you matter medicine county for the year two thousand years two thousand twenty two in two thousand twenty one on page thirteen. The county paid ten thousand three hundred dollars to business owned by an employee for the purchase of various computer equipment but they have an authorizing ordinance as required by code a similar finding was issued in the previous two reports this uh reports being referred to the pa uh staff would recommend filing the report. They do. Motion file second although favorite thank you all those photos we have the city of dermat on pages fourteen through sixteen district court clerk megan charlton was invited to answer a question about the the court because it's a repeat finding um she's not here today staff would recommend deferring so give her another opportunity to attend. You've heard what our own issue say it about would you read it or down to staff and recommend deferring the report to give mis chart and opportunity to do a tn to explain the repeat finding okay all those in favor of that would you enable motion to take okay second mister all those in favor say position right next with the town of jerome on page sixteen for the period january first through october fourteenth two thousand twenty one a and for the year two thousand twenty the town paid utilities and insurance and received renewal fees with that a contract on a building it did not own an apparent conflict with the arkansas constitution uh no uh the town's charter was revoked in the city was dissolved on october fourteenth two thousand twenty one therefore the we've considered the the findings resolved but we read this because of city policy staff would recommend following the report the emotional powerful new second although is five sayer also I know okay the next we have the city of journal for the year two thousand twenty two on page seventeen recorder jesse vasquers uh was involved she can't be here today and she called and requested the the report be deferred until october so she could attend staff would recommend deferring the report. Need a motion to develop for second just just I just have a question mister chair on the on the wine before which was the city of jerome did we may we move to take their charter or detectors voluntarily they voluntarily dissolve their charter okay all right thank you okay representative care might motion accept the file mister reps is carol second okay thank you all those favorites they are okay all those posts. Okay the next will move to all our own page twenty c jack supporter read that finally but uh treasure diana dodson was involved in she wasn't is not here today staff would recommend deferring this report so she could attend and explain these repeat fundings need about the further for okay second representative carol all those favorites they are all those posts. Okay next ports minor accounti for the year two thousand twenty one uh sheer michael neo was invited and he was not here staff would recommend deferring the report so he could attend and explain these this one finding the devotion to further report representative carol dot need a second all those vice they are although supposedly no okay we're beginning this section with the report route with findings that means they had findings but they did not respond in these are all water departments and so what has happened minted early we've had influx and so we've had several responses in the last few days so you usually we so i'll discount walk through here and let you know which ones we received a response for and i'll let you on those we're going to recommend the staff is going to recommend filing and so I guess we'll start and do that in each section and will move the three thousand as quickly as possible could we get could we batch him and just go through all the ones we're going to file first and then yes i'll let you know the ones you're going to file in we have received responses you don't have copies of those we can provide those if you want but so numbers twenty one through. Twenty six which is case for twenty two titish water and sewer for eighteen seventeen sixteen and fourteen in christmas water for twenty one we've received a response on number thirty beginning a number thirty two montros water and sue for twenty one twenty nineteen and eighteen we've received responses and then on the next page on your list number forty cedric water and sydney water for the year two thousand twenty one we've received responses staff would recommend following those reports most of our reports representative care okay still second all those things they are although suppose I know okay now I cover those that where we didn't receive responses and beginning to member twenty seven harmly water for the years twenty two twenty one twenty nineteen also jount johnson township public water authority in the end down to the number thirty six new london and in thirty seven quinn water association for twenty one twenty nineteen we did not receive port staff would recommend deferring those until we receive a responses emotionally referred till next time around being both october oh go that new second all those fairest they are focusing on okay beginning on page twenty five we uh twenty five through twenty nine we have eleven or ports with adequate responses. Uh staff will be happy to take to answer any questions you may have but we do recommend following these reports. Most of our reports. Okay so drama your second fashion okay okay we're saying uh although say no all right begin on pages thirty three thirty two we have sixty two reports with no findings staff would recommend following those reports most of our report how can you second question excuse me represent the fact that he is second okay all those favorites they are positive mister chair that concludes the review of the reports. You've got the floor sir thank you miss chair we are we are concluded with all business on the agenda correctors I have emotion about something if if you clear of all other business yes rep soon to have a way or clear okay and i'd just like to make comment before I make motion of the chair would allow that members i'm going to make a motion on the sheet that we have in front of us regarding status of cities audited by private cpa's augusta was in front of us last month and they came with full force with the mayor of city council and they were you know came again full explanation if you look at the sheet though therefore other cities that are highlighted in red and it indicates that they are four years after the year ending up the last august and then we got a thirty reports that are beyond eighteen months with chairman i'd like to make a motion that we will summons the mayors in the city council members of those identified in read. To appear before this committee at the discretion of the chairs as to whether you want to bring him in all at one time or where you want to bring in system actually one month at a time I would deferred to the chairs but also that staff will prepare a history of the communications with each one of the city entities informing them that they are in violation of the time period of which the auditors were to have been submitted so some re make a motion that we summons the mayors and the city council members to attend before this committee and that staff would prepare at history of the communications sent to each one of the cities over the time of which they've been in violation of getting their reports made that would be my motion thank you sandra neither we are emotion and now need a second okay all those if they would say our although it's possible no centre hammer I wish that you would make a motion that all of these growths in red would be able to appear at the next meeting if possible i'll make up mischairman that that may I have opened discussion with chair I don't mind making that motion but based on the length of discussion that we had august in here I just think maybe members how to be prepared for very long afternoon because with our regular agenda and then heaving all for these cities in here at one time could make for a very long afternoon with the chair allow that we would just defer to the chairs to schedule one starting at the top of the list and working down absolutely okay yes we will in central and if you think that this is going to take longer than what we can actually handle sir if you want to make a motion that we cover to its ray or break them up either way you want to or take a molitor and there okay i'm not i'm just going to make up. I'm just going to defer to the chairs to set a schedule and staff thank you thank you sir that's it. Yeah.