Legislative Joint Auditing-Counties and Municipalities

Per se I any oppose our administer prove moving on discussion of non compliance with municipal council law of the sea of CopperPoint. The city council that has been in The process for non compliance is admissible counting losses January seventh from the full committee Made the motion to do that based on a recommendation from this committee. The city's been working on it during the year the firm they were in noncompliance for a period of time in on June third the full committee voted to approve withholding fifty percent of the city's turned back and on August nineteenth they voted to withhold one hundred percent. And today is the first meeting that would Is it after the sixty days they had to get their records in order before all their turn back will be distributed. To the other cities staff made a visit on November seventeenth and we found that the city of those records were in compliance all their their journals were current and reconciliations are current through. October of this year and so staff would recommend and they're notifying this committee that the city is now in in in compliance and so Arkansas Code forty fifty nine seventeen states that the Legislative Joint art Committee shall notify the state treasurer that fact in the then the a city can begin receiving all the term back in this would include the amounts that is in the escrow right now thank you so looks like this is kind of what we pass that laws to hold the city's make him accountable look like that worked and we appreciate Cotton Plant come to plant so with that I have a motion the Senate Committee on counties municipalities recommends to the full Legislative Joint pada Committee that the state treasurer be notified to resume the city of cotton plants turn back payments and restore the turn back that has been held in escrow we have a second on that second all those of favour say aye any opposed thank you motion passed. We're going to the gym out of the discussion of ACT seven oh nine to twenty twenty one repayment highway fund. The city of a tweet grosses since this committee request to to repay amount that's less than ten percent of the the amount they owe to the The street funds less than ten percent the general revenues the the code says that they have if they owe money to the the street from the have to pay ten percent general revenues after the end of this year. to repay that so they're requesting to pay five hundred dollars a month which will be six thousand dollars a year which is just less. then it would have been in two thousand twelve we say this way in two thousand twenty one general revenues were about sixty three thousand dollars for twin groves in social ten percent that would be sixty three hundred and twenty grows is requesting to pay six thousand dollars per year and so anyway that it's up to the committee to grant that request so basically it's four hundred dollar difference a year which I don't think is an extended can amount they're willing to pay that amount back I don't think it's a big change in the law so I'll make a motion that we reduce their payments to five hundred dollars a month less than a ten percent for three hundred dollars less a year we have a second on that second all those of favour or any questions. Question okay let's do that hello is it affected them. There. They sixty four thousand dollars ten years yes. You're sorry about that I should ask for any other discussion. C. none all in favor say aye any opposed this motion has passed we were going to agenda item the regular. Okay we'll begin with reviewing reports for we have invitees here the first report we will take a look at today is the town of cache they'll be on page eight of the synopsis. Telecaster the year two thousand twenty one fines and costs revenues of eighty four thousand six hundred fifty six dollars exceeded thirty percent of the town's total expenditures in the pre appreciating your by seven thousand nine hundred sixty six seven hundred sixty seven dollars in non compliance with Arkansas Code these revenues were related from traffic is offense citations. All right and representatives from cash please come to the end of the table and everybody here who has a opportunity to witness state displaying their findings when we get to your report you go ahead and move to the front yard away from the asset we can be ready for questions committee jim if you can say your name and title for the record in any statement you may have about this funding. Michael Khariton mayor city of cash. Lately police chief cash. Any comments. yes the. We Did exceed it appears we didn't save the amount. On the Page revelation but we are. We're not not a speed trap we are only. Row three hundred forty nine tickets which is less than a ticket per day where was listening taking per day. And all of our tickets sixty nine percent more for fifteen. Thousand over. Hopefully that has a bearing on this but. The the the revenue we've cut our expenses down dude from co would and then we've. Everything's got so expensive we haven't spent any money so that makes expenses lower which makes is exceed the limit quicker if we spent more money than we wouldn't exceed the limit so it's kind of a catch twenty two. I have a question I'd be glad to answer. Okay represent Hillman. What's the speed limits are ten. Sixty five okay. That's the same as it is on the highway before you get there and on the way after after which is sixty five oh went through an average okay all right thank you. Anymore questions. So as a as a major highway goes the town basically. Yes it's four lane highway and we have a a dangerous intersection there it's kind of an angle kind of odd shaped and we feel like that we keep speed down the people so to be safer and we've so far had any severe accidents we've had a. Two three that's been pretty good but not too bad okay. the senator Wallace you're recognized. Mr chairman I can tell you I drive through that intersection in town at least twice a week. I'm I've never seen any evidence of the speed trap I don't think there's anything wrong. Yeah I think represent helmet on the head usually when you see a significant drop in the speed limit from like sixty five to like thirty or something that's when you have indicator but at the same speed limits highway you got multiple six nine percent over fifty miles per hour I think that's a just wanna things happen so any more questions. Sooner without objection we will follow support thank you Jennifer coming day. The next report will be the city is also so for spring for the year two thousand twenty on page nine of your synopsis. The city patent attorney five hundred dollars set up a nonprofit organization city of sulphur springs foundation in addition the city paid eleven thousand six hundred seventy one dollars to this organization without a contract an apparent conflict will Arkansas constitution article twelve section five. Although this report shows a balance of thirty thousand dollars in the general fund the city owed significant amounts to the R. S. and had informed payables and receivables at December thirty first two thousand twenty when these outstanding amounts were considered the general fund had a deficit balance of two hundred sixty thousand dollars of the water and sewer fun although not included in this report we have a deficit balance of twenty four thousand dollar based on information nation provided by the city a similar findings issued the previous two reports and just a a staff note on this in two thousand twenty one the city received one hundred eighty two thousand dollars from the bond board of for a previous fraud in the city use these funds to repay three pay the funds they still owe the IRS money but they have repaid the funds. Okay continuing of the city renewed a loan agreement with the bank gravity on July eighth two thousand twenty an amount of one hundred twenty five thousand dollars for the purpose of paying past due bills and consolidating vehicle loans loan appears to be in conflict with the Arkansas constitution amendment seventy eight section two which limits short term financing obligations of the acquiring constructing stalling of real property or tangible property having useful life of more than one year similar findings in the par report continued on the next page. Documentation of the proof salary or hourly rate and pay was not maintained for two employees for selected testing is required by code a similar findings noted in the previous report. Mayor Shane whatever is here to answer questions thank you Mr Jones can you please say your name and title for the record in any state you may have about these findings. Mary Jane Webber I just got address in order there if we can the first one with the in in reference to the paying five hundred dollars to the Attorney yes we did do that of the five one paid as back up promptly into the the bigger question here is are finding your of eleven thousand six hundred seventy one dollars it's not that we paid them before they opened up any of their accounts they were getting money in we put it into a separate account which won the city accounts and as soon as they have their account open within transfer to that so it's not. Would you just give them money we give them back their money as far as the iris goes. It's from way before my time but I can tell you yes we have been making payments we are on a payment plan with the IRS we also sold a piece of property which reduce the debt by about a third so we are working on that and unfortunately it's going to be in. Every audit until we get paid off. There's not I can do about that. As far as this the the loan goes That money it was right after the lady took a box from us and we had to do it we have a choice we have shut doors we were thirty two thousand dollars behind an electric another thirty dollar or thirty thousand dollars in a phone trash was way behind. We didn't have a choice in yes it was brought up prior obviously for the same reasons. the documentation approved salary. So the previous pointing is where we made our changes because that funding office staff is supposed to go through an update everybody's files there's notations made on there as far as where or what they got the raise for date time reason the amount before and then after So if we have made some changes on that as well obviously they missed a couple files we only have six employees I can only do so much. I can't check everybody's work I try to but we are a work in progress if you will. Thank you any questions committee. Resented recognized. Thank you Mr chairman Sir on the the situation with the the organization yes Sir have you all now had an agreement to go to city council that that contract would be going through in that direction with the city does not take any other money anymore that an account it goes directly to five all one we don't have anything to do with it. It's not the city's it's actually the the law enforcement fire department got together and started out as nonprofit mainly for shop with a hero thank you so much to us so we don't even see the money goes directly to them. Thank you Sir. Miss merry says about you just had to basically. Have that money because you have were so far behind because you said somebody is a prior I'm sorry your one direct the the lady that the. Do we got the money back to the. Insurance money that we got back issue still going to money that's what I'm referring to okay I got you I just double check on that anymore questions committee. Go ahead you're recognized center press your button please me on record. Thank you Mr chairman. How does the short short term financing conflict with the Arkansas constitution how are you how are you dealing with the. The constitution says on short term financing can't be longer than five years and so they extended a loan that was shorter than five years ended up being longer than they could have refinanced that totally and it would have been okay according to turn general but basically that alone that was longer than short term you know not some does not upon. That was longer than five years okay. Surviving on the yes Sir you're recognized it was my understanding that It wasn't the time because I admire sentenced to five years was a total but because it wasn't specific for financing the vehicle or something like that. Okay got you yeah thank you your select staffs supporting what you're saying. The more questions committee. See now what are the actual fathers port thank for coming Sir. Senator senator subfield your back off. From next. Next we have the city we her village on page eleven of your synopsis. Thank you counsel not properly reconciled and reconciliations were not approved by someone other than the preparer is required by code similar findings in a previous report the annual financial statements not publish proposed it is required by code somewhere findings in the per your support as well on page twelve. A total of seven thousand one hundred four dollars was due to street fund from the general fund to December thirty first two thousand twenty one this finding is being reported the previous two years invoices and supporting documentation or not provided for all tested disbursements in two thousand twenty one two thousand twenty two thousand nineteen a similar finding was made in the previous two reports a mayor Jeff calling is here to answer questions in place of recorder treasurer Michelle Robbins thank you Mr mayor if you say your name and title for the record in the state and you may have on these findings of jeffco league mayor Whitaker village of Shelly our shall the robins our secretary would have been here today but she had a doctor's appointment come up this morning so we got together yesterday and went over what I need to bring in all of. Yeah we've been working with Kelly mill would she was great she pointed out all our mistakes and all I can say my first time being a mayor a there's there's a learning curve will you elected of twenty nineteen twenty nineteen yes. Okay that's. It appears he's going back. Over and over again during your term I correct about that nineteen nineteen so. And they keep saying we'll fix some in this next year happens and it's still not fixed so what active steps are you taking to fix and well the some of it was not knowing that we need to pass an ordinance for certain things and so we started doing that of you know we couldn't really do an ordinance for something that would already done in the past but you know we're working to. Learn what we need to do in the future and everything to keep happening again of. All right is there any certain one of these that you want to discuss goes let's say John and Dr budget I mean things like a step one oh one any kind of running the city you would often budget ordinances. Are you all doing that now yes we are now and the. Missy. Nope that's the reimbursement and okay but held you off held a organize city council meeting where you've presented a budget had the city council members vote on it and now it's approved and it's out there is that correct yes yes okay. Any questions committee representative letter recognized thank you Mr well let's let's talk about this funding in regards to your reconciliation. And not having someone other than the the prepare reconcile. What would have you have what steps to be taken to to care that finding okay you. Which which one is that okay this is the first time in on page eleven. Is in regards to your your reconciliation process with the bank accounts of. We're anyway we had to reimburse the street time well I mean I get to that one no one is talking about you know someone other than the preparer the okay here. Of looking over the work a lot of a lot of got on the I don't I don't know if these are to Kelly mill woods reports or what but of on that one it just says here this is being done properly so. Mister chair Mister Jones can you can you explain this fine and so the yes he can he can better understand your what is the municipal council law says that you're supposed to reconcile your bank accounts to your books and then someone other than the person doing the reconciling we'll take a look at those reconciliation so in most cases in small town light Whitaker village the recorder treasure this case Shelly Robbins would do the reconciliation and usually it's the mayor who takes a look at those bank reconciliations you could be a council member or someone else but mind I'm guessing the the mayor may look over those reconciliations or at least open the bank account or the bank statement something like that okay we'll I didn't I didn't know that nobody told me that that I needed to do that so. yes this. Where is this your first time being here yes okay and this your first time here has anyone ever showed up for would privilege. Read he he's reference the auditor Kelly Millwood she's one of our auditors in that area and she she did the the work now she probably spoke mostly with the recorder treasurer miss Robbins who couldn't be here today and so but that that would be good for the mayor to know that. He these look of those reconciliation K. because I did go there when when Kelley and Shelley were both there several times the luxury she probably taught Shelly Moore a lot more than just yet me but the times I was there we went through all of these and I really don't remember saying I need to look over the bank accounts maybe it was that a. Your response says I'm or this is from miss Kelly we were name is yeah I'm going to miss Roberts use me I'm going to do better on bank reconciliations and make sure mayor Jeff Connelly approved the bank reconciliations timely manner so apparently she's on obligate you through the response to do that. Well of. Does that count just verbally I mean because she she's explained a lot of this to me that she had gotten done like getting the receipt books you know that's another one in there later on but this was all to get the bank accounts the commission mayor what we usually look for is there will be a hard physical paper copy of that bank reconciliation and what we usually look for the mayor's initials or signature something to signify that he looked at that okay so that that will be what we'd like to see from that. Well I can do that okay. And then this move to The street fund limit me from this. You transferred the twenty four seven as a partial payment. Repayment of restricted revenue. Of. When the paid the whole thing. If I were in the right one is at the next city council meeting the city council will present hope to adopt an ordinance transfer money from the general dentistry for repayment you know that you can Kerr with this response have you all done that or will you or you're going to do that we've got the ordinance here Arkansas our. Okay if do you need to see this no I mean I don't represent love is the one I ask questions to Mr Jones how how I mean does. That you want to whom this message on the do they need to just send you all the information so that you often hear the finding when we go back to the two thousand twenty two we'll see that that money's been transferred okay and and they you know the response indicated that they will do that it looks like the mayor has a copy of the ordinance that they deem that that's what they want to do that will will make sure they actually move the money to the to the street from bank account all right other than that I'm I'm finished Mr thank you thank you we have Senator Stubblefield the representative. I thank chairman of sentence short questions for the staff again. You know I've been on this for sixty eight years and we've had hundreds of situations just like this one the mayors are elected they don't know the rules I don't know the protocol the city council does of sickness hi this is a municipally arms of chamber of commerce do they offer any kind of courses for minors. To go in and and give them at least the elementary. Yes Sir the there are courses this is the municipally has and that you can do those in person you can easily do those online as well and legislative audit staff speaks it most all those and we'll go over the the common findings we will review the these kind of things is not required for the mayor's to attend those recorder treasury but you can record of. How many people attending we don't legislative audit doesn't the municipally may I was looking at it and see anyone from this bill has yet I'm sorry your on the right he's gonna head shake he probably could answer that question about it they keep record of who attends he says they do okay well I keep hearing my say the same thing we were not aware I didn't know this and you know. And hopefully we can find a way to better educate these mayors and city council on the rules. It the bill on the books for. Decades about how to run a small city. And alleviate a lot of these things because a lot of or just I mean we didn't know that so. We also have a document on our website about how to prepare for legislative audit and so we we try to get that information out there as best we can okay thank you. Good the more questions a reserve rye recognized thank you Mr chairman served down at the bottom of the page mayor it mentions free number of free number receipts and receipts were always issued and subscribed chill of subsequent order and all these other states are you starting to have like a system yes your check we aren't all brand new receipt books of a receipt book for each one of our accounts and another miscellaneous just to have it and uh they are all all numbered sequentially and we started using those now so thank you Sir thank you Mister chairman. I miss ray I think you've kind of got a trial by fire here can understand what's done I mean I understand we do this a lot like Senator Stubblefield said alert a lot of different regulation rules that follow understand the reason why this exists to make sure there's not fraud someone stealing we see that all the time so you would miss fully get what your local leaders and and try to make an active effort to fix this that's what keeps you in your citizens safe from having issues and compliance with the law so without any more questions we will follow is poor that objection thank you Mr mayor thank you for. Okay the next report on the the city of Helena West Helena on page beginning on page fourteen of the synopsis. The treasures of payroll check posted to the general ledger on January first two thousand twenty two the clear the bank on December thirty first two thousand twenty one additionally this checked only contain one authorizing signature that of the treasurer noncompliance with code it appears the treasure posted journal entries an attempt to conceal that the check cleared the bank prior to being posted to the general ledger. Continuing on page fifteen. The city made the following payments totaling seventeen thousand eleven dollars for weight related party transactions without authorizing ordinances in a conflict with Arkansas Code two thousand eleven dollars to business owned by an employee for heating cooling services and seven thousand dollars to business owned by employee spouse for legal services. Continuing on page sixteen. The city paid nine hundred forty five dollars to an organization affiliated with Anna AMP commission member spouse for supplies and ferry services without authorizing ordinance not conflict with code. At the bottom of the page we noted that fire department ploys rover pay due to an error in calculating holiday pay this is also because the department's holiday pay to be eleven thousand two hundred seventy four dollars over budget a similar finding was issued in the prior to reports. On page seventeen. The AMP director was reimbursed for the following question will expenses totaling five thousand five hundred forty six dollars an apparent conflict with the Arkansas constitution article twelve section five. The three thousand seven hundred fifty nine dollars for lodging meals supplies utilities without adequate documentation there for the validity of these disbursements cannot be determined one thousand two hundred ninety dollars for meals without no not today three hundred fifty seven dollars for alcoholic beverages and one hundred thirty eight dollars for clothing purchases. City treasurer Derek Turner and city Clerk Sander Ramsey are here to answer questions. Thank you Mr okay please say your name and title for the record. They're turning the city tours or. Senator Ramsey city Clerk you have any comments on these forget questions. No thank. Who is the treasurer. Mr. But I am you're the treasure yes are you have no comments but the city Clerk said on the second response this will be answered by the treasurer and when you get a response on it I'm not sure. What. She was referring to if you could tell me what she was referring to a. The answer the question okay. Are any questions committee. All right to say this is season with just my initial read of this is there's a lot of. Issues between what appears to be the mayor the city council and different apartments with what's going on what's happening is that a fair assessment is there some tension right there's are some disagreements and what should and should not be passed because the mayor multiple times saying I said this is a city council and it was a setback is the example going on with this if I may respond to that yes there's a lot of tension there there's been many cases such as on the conflict ordinance that you brought up we have tried for the last six meetings to get the limit raised on the conflict ordinance to no success of it gets tabled there have been many times where we have presented minutes of council meetings to the city council for approval which but not be approved for four five months of a table and then they get up and leave of we have tried diligently to get things done appropriations approval over time it's set for a and of the of. Everything is table of friends since I've been trying to get some of ordinances passed to pay some bills which exceeds the mayor spending limit of five thousand dollars for the bid limit of seventy five hundred us some have been on the agenda for five months and they're not been approved and paid yet of we are we've looking forward to this election and hopefully we'll have a council that work with us to promote the city of Helena we have a lot of outstanding debt we have a difficulty getting things appropriated but we are trying to do what we're supposed to do. Okay was guilty representative berry them's Senator Stubblefield represent him go ahead thank you Mr chairman so can either either of you provide any clarity to the finding of where the AMP director is reimburse the of five thousand five hundred forty six dollars. With the current acting of chairman of the commission isn't here but the city council the AMP Commission reviewed his expenses of day authorized payment a day met with the auditors when they were there I do not know what the results was of the meeting I don't know if the gentleman is supposed to pay anything back he's no longer with us but I paid what is approved by the commission to be paid. Thank you Mr chairman Sir Stubblefield recognized. Represented representative thank you Mr chairman representative very asked basically what I was going to ask but. This is this isn't good analogy of exactly. What I was talking about the others or actions that could have easily been overlooked or didn't understand these are blatant violations. When you buy clothing and now call. You don't need it you don't need to miss would tell you not to buy clothing and alcohol. Because these are blatantly it is can be and these are things you cannot overlook I understand this mentor no prosecutor a okay. Thank. Resent him. Of ms Ramsey may reference to this election and the council members amending council members do you have we currently have six of council members of we have one that did not run the place running for mayor of we have one that's returning and the other **** all had someone more than one person running so we may have some new council people okay so the had had the election yet of and also we are in the run off early voting right now okay the six yes okay. So you could have as many as four new council members okay thank you. In my question president have thank you Mr chairman served on a and ma'am This American rescue act fund which was I guess a total of about a million dollars sixty eight thousand. did you just not go through the city council and say here is the money this month it came in through this particular fund and and then put that in there then turn around and say you know we're going to spend that in certain kind of categories. You. We'll in this case the date the to Senate council as you mentioned earlier they would have if there's some tension between the mayor and council and so the city council decided to at the the municipally recommended to. Dave making appropriations for the entire amount of city council was not willing to do that they wanted to make the appropriations as they were needed to my knowledge. All the expenditures were had appropriations for every expenditure but they would wait until the mayor requested a certain project to a certain piece of equipment before they would actually make the appropriation. I thank thank you Mr. Body else. I'll be honest I'm a little torn between this one because. You said it is obvious from its founders of tension between the mayor. Executive branch and the city council member No Way from city councils here to defend their side of it there's always two sides to the story. And ultimately I want the problem fixed whatever that problem may be is obviously out of compliance maybe city council has a good reason why their table and stuff maybe there's something things on the other side I don't know. I will be back this next term so I can't really kick this can down the road but I don't know if we need to call the city council and a mayor here I don't know after the election the results might be completely different and takes care of itself I just don't know but only thing I know if I can shine a light on it there seems to be. So dysfunctional happen in these get fixed one way or the other and that might just be my part saying that maybe somebody picks up on it but something's not right need to get fix I think that's what I'm saying representative. Thank you Mr chairman I have one last question is is the city or are you caught up on your taxes and penalties of with the with the IRS. Yes Sir we we are currently current on our federal payroll taxes and the stay with olds okay thank you thank you Sir. Anymore questions. C. nine without objection we will follow support thank you all for coming today. Next report will covers the city will panto for the year two thousand twenty one it's on page twenty of the synopsis. The police chief was allowed to take thirty four days of sick leave before the leave was earned resulting in salary or payment of five thousand two hundred ten dollars this arrangement appears to conflict with Arkansas Code skews me Arkansas constitution article twelve section five which prohibits cities from loaning credit to any individual a similar finding was noted in the previous report mayor Ernie hill and police chief Chad Henderson are here to answer questions. Thank you if you could please say your name and title for the record any comments you may have about the fines mayor Ernie he'll. Police chief chanting. And my comment is that we had a miss miscommunication between myself. These chief and the city Clerk about six times that we we thought the chief had banked over previous years he was in the hospital with a kidney failure at the time then got out was going to kidney dialysis we was on the impression the head days bank however when I did get the report there was no days bank he's already used all the days however since then we have put a in place policy for six for sick leave donation from other other employees he's already paid in the process I think ninety percent is paid back and the rest of it will be paid back by the end of the month end of the month so what we do and then now I get a monthly report on sick time vacation time on all employees. Any questions. At the. I know what I notice says but I mean I will give you a lot of grace on a guy going to kidney failure and you're trying to take care of them I mean let's be real about I know what this says here it is the law but I thank. That's that's understandable to have to happen and so like you gotta fix going forward is he doing okay house out of yes Sir. I just like to add to the do you his other officers here that that's under him they've graciously donated time and is this a guy are you are you have yes Sir yes Sir good way what happens so you're doing good health being up here and don't let it happen again you have kidney failure. Yes Sir thank you any questions. CNN will follow support that's coming to you guys. The next report will be the city of West Memphis for the year two thousand twenty one beginning on page twenty eight. Arkansas Code requires management to maintain financial records the city's financial records contain errors that were considered material as noted below the general fund financial records contain misstatements due to receivables and payables recording their classification heirs journal entry heirs and posting here's the street from financial records can't contain misstatements due to unrecorded payables and journal entry heirs other funds in the aggregate financial records contain misstatements due to receivables and payables recorded an air classification errors journal entry heirs and posting errors a similar finding was noted in the previous three reports dating back to two thousand eighteen. The city recorded inter Fund receivables and payables consisting of restricted revenues deposit in the wrong funds depositors nexus transfers of reimbursements to mentor of vendor payables and payroll expenditures these balances were not cleared in a timely manner may prohibit the governing body for making sound financial decisions with accurate information a similar findings noted in the previous reports dating back to two thousand eighteen. All right Finance director Tory Perry is here to answer questions. Thank you can you see name and title for the record yes Tory Prairie finance director for the West Memphis any comments may have on these funds ma'am if I could just give a background real quick and I can answer any questions you may have yes ma'am I became part of the city West Memphis as a staff accountant for utilities in twenty eighteen and at the time I finance director was Frank Martin after year being there he wanted to train me to replace him at some point and so he asked me to enroll in a home school to get my masters and so during that time frame he became ill and so from December. Twenty nineteen to may when he passed away I was kinda trying my best to just step up in a take over for him while he was out will once he passed away From may into October when I was appointed to be the finance director I was on my own and he had no back up of any sort and so I've I've had to learn and get advice from different cities Got with the Municipal League and so some of this stuff is back from twenty eighteen but I've been trying to of implement some internal controls get a hold of everything that's going on to try to make some improvements since then a we are still improving we're still trying to get better and so on yes I just want to give you a background first absolutely the question committee president will your recognized this question for staff so Mr Jones went when you all went down to to hide it West Memphis did you see any any Improvement in in the process is that they have. You know I'm I'm not on the audit team per se they want to but I will tell you that city West Memphis seven this is not the first time some of these things they didn't begin with with this current administration that they've gone back before her. And so it's my understanding from listening to the people who did the audit that they're trying to get in the going the right direction that they're trying to make it turn here on some things One of these. It I don't know if you could pick this out from one these findings the. There was a little bit a conflict between the. The finance the previous finance director and the council and that was why there was some confusion with some of the the accounting he. Anyway and that is my understanding that those things if that she's trying to correct these issues from the from the audit team that has spoken with me okay I just want to know if some of these guys because I'm looking at I'm looking at this first fine and you know. What did you are report any missing money no Sir these are leisure financial accounting entry errors there was no money missing there were just some large heirs and that's these errors have to be pretty large before you write this finding this finding is in a different part of the report people that the audit report it's in the body of the report on internal control and so it it's a serious financial accounting issue but is not money is not as if there's no money as. so so now minimum alternate you get give me your name again toward very mysterious so um I just I just listen to what Mr Jones said. And in the future regards to some of these some of these findings. You did you say that you are put in an internal controls yes and so I did another background we have a very old antiquated accounting system that we use of the homegrown system did on the the current data processing managers been there fifty years implemented and so I got with the mayor and council I would also suggest from it audited we need an updated system has an updated system well we have put our R. F. P. to get one and so they were actually due yesterday so I haven't had a chance to review any of them but we will be having a new system next year. Okay. Image Joe that's full of the if you're going to present love yes representative love I I received a message from the the supervisor then engagement and his messages is that West Memphis is better and they do have a new software systems and they're working on the software system so that either and I think he was watching online and but he sent us a message yes it is better our I have no further questions thank you ma'am anymore questions committee. Yes where it looks like take over somebody's been there forever I know I can be seen challenges and no obviously if you had these two or three years down the road right have issue by selling to work through it we appreciate it anymore questions without objection will favour port thank you ma'am I thank you. The next report is the town of all port beginning on page twenty nine. Although this report shows a balance of fifty to two dollars in the general fund the town owed significant amounts to the street fund and the H. ACT regional waste treatment district when these outstanding amounts were considered the general fund had a deficit balance of twenty thousand dollars the similar findings issued in a previous report. The town was in noncompliance with Arkansas Code as follows minutes did not indicate the budget was passed by ordinance resolution however resolution two thousand twenty one dash to sign on may twenty fourth two thousand when indicated it was passed on March first two thousand twenty one the budget was not adopted by February first a similar finding was and noted in the previous five reports continuing on page thirty. At December thirty first two thousand twenty one the town owed H. ACT regional at wastewater treatment district six thousand six hundred dollars for sewer collection wastewater treatment the town play nothing during two thousand twenty one non compliance with an agreement stating the town would pay two hundred dollars per month until the debt is satisfied the similar findings noted in the previous file reports monthly bank reconciliations were prepared or not accurate in noncompliance with Arkansas Code a similar finding was noted in a previous report. Mayor Kenneth Rayner and recorder treasurer Jeremy Jeremy Allen are here to answer questions thank you please say your name and title for the record. Kenneth Rayner where. Jeremy on a recorder treasurer or any comments about these funds we got a question. For the for the bank reconciliation statements I do hear back from the auditors and I did learn that there was one month that have won the stake in it so that was inaccuracy of far as the numbers go and secondly there was your Mike on Sir I'm sorry to interrupt you. Note for a president I think you did have it on I'm sorry thank you sorry about that the better yes Sir okay for the monthly bank reconciliation statement was one month and one account they had a check that a clear but that was part of the number so them with costumes and actors either in regards to the numbers all the other ones were correct for the accounts also. there's a term those misuse issued a set up in the monthly bank statements of my beginning. So those were the necklace with a monthly bank reconciliation statements for the payment eight ACT we had a verbal communication agreement and then laid on the letter that we were going to resolve payments at a later time early and early January late December two thousand twenty they did give us a letter in April two thousand twenty one stating that the payments working to be suspended then later on we did which no treatment and paid was the result in January of this year and have been made every month since then. Party questions. President will your recognized. Okay let's go back to the one in the the question that you just had in ras HA HA ACT I guess so you are you saying that you are you are making payments yes. This. Okay it will have you provided this information to staff. Yes Sir they are where. Okay and then What's so talk to me about this not passing a budget in this resolutions this is the not passing a budget for four years you for your town has an announcmenet at all during that time we will know pandemic opal protocol and we what we want having meetings only the couple months we didn't have a mean because of pandemic protocol with on the pandemic. And late on that couple monthly we worry we did eventually have a median margin pass that on to the university resolution on it and twenty one. Okay all right thank you thank you Mr. Representative you're recognized. Thank you Mr. Of looking here it it shows that you over yeah the deficit over twenty million I mean twenty thousand dollars in general revenues. Of. What is your anticipated revenue for this year. This coming year. I have a hard number by revenue comes from state tax turned back each month that's probably right about twelve hundred per month then we get franchise tax reform from entity currently had about seven hundred dollars. So and that twenty thousand since back to street fund issues from two thousand two thousand ten we continue to pay that monthly we just passed a resolution to pay a ten percent of our general fund each year to the state okay you due to an anticipated revenues into your budget correct. Yes yes Sir. Is there a deficit in that between your anticipated revenue and your budget. No Sir. Okay looking by the records here you lost about twenty five percent population in the last census so you'll be losing turnback money from the state. Correct yeah this revolution so to have a deficit because before we were paying on the R. S. those that deficit pay we're be at the five hundred forty two dollars per month. All right thank you Mr. Thank you yep understand correctly that y'all don't get turned back funds right now do you know three because your currently It's been recommended not to have turned back funds that's the case as a from the G. from what staff to master this so you said that you have an agreement to pay two hundred dollars back. You say that you're going to do it but it says that nothing was pay back the last. On the second last binding to the H. A. C. T. regional waste plant. S. is in twenty one zero dollars are paid and you said you had an agreement do it and you said out of the continuous do it now is not doing it I mean similar finding with over the previous five report sounds like I and paid that bill yet in my incorrect about that. Yes there are going to pay it the group and. Houston no pay for may two thousand twenty one when the last. Or how much has been paid toward it as of today. We're one of the twenty six the six the six hundred no does six sixty six hundred yes Sir. We've paid if you're with us from a two hundred dollars per month all this year you have paid yes okay good just make sure because it was yes I never got paid just make sure there's pay would be a mess we resolve payments I think Jude's of gender relations this you know we played phone issues. After July if you want to start. Thank you. Okay well we was okay with the January this year we've been paying every month says okay to make sure they were questions committee represent right yes thank you Mr chairman Three phone Page did you guys spend money from the spring Fund yet that this was a printer that goes back two year fifty thousand since two thousand eighteen. That's what we passed a resolution to be paid ten percent of our revenue each year under this paid off yes or so actually are paying that back on to yes Sir thank you thank you any more questions committee. See now what that object for fathers port thank you for coming. Next for next report is the city of Leslie. Page thirty three for the years two thousand twenty one in two thousand twenty. an annual audit agreed upon procedures and compilation for was not obtain for the water department in noncompliance with code similar finding was issued in the previous two reports dating back to two thousand fifteen the minutes of the governing body did not document to review the previous report on the findings and actions taken by the governing body as required by code similar findings in the prior report as well. Mayor to lead the harden is here to answer questions thank you America saying name and title for the record any comments you may have. To live the hardened mayor of Leslie We have satisfied the. We have satisfied the notation about the minutes and as far as our water sewer audit we had a good faith effort agreement with the gentleman who. Kept telling us that he was going to complete that he had a records he had a surgery. Based on feedback that he gave us he had a surgery that he had illness had COVID kept pushing it back Thankfully one we have not paid him anything even though he had come and picked up our records and stuff he did not follow through with that but we have since entered into an agreement with and do auditing. Group so we will get that taken care of we very definitely want to be in compliance the city of Leslie has been blessed for forty two years with the same reporter treasure. A retired math teacher so he's amazing we're very thankful for that but we very definitely do understand the seriousness of getting our audit complaint want to make sure that we're in compliance so. Thank you ma'am it sounds like From the responses sound like I have found somebody that wanted to the report yes Sir it says Varian associates okay. Russia's Committee. Seeing none well general files port thank you coming day ma'am thank you. Okay the next report. Is on page thirty four it's the town of dream grows to the year two thousand twenty one. This report shows a general fund balance of twelve thousand six hundred ninety four dollars as of December thirty first two thousand twenty one. The amount of to the street plan for state aid total sixty four thousand five hundred twenty nine dollars when this outstanding amount was considered the jewel Fund has a deficit balance of fifty one thousand eight hundred thirty five dollars similar findings was issued in prior report mayor Wesley tass and recorders are made a line or here to answer questions thank you say your name and title for the record please. Wesley Tyus mayor twin girls. May lines city Clerk recorder injured any comments you have about these findings. Yes Forrester. Sixty four thousand dollars Of course that goes back several years and we for the last couple years we've addressed it a lot of resident Lawson pass and this this past year to year twenty twenty two the council approved. in two hundred fifty dollars a month rather than fifty dollars a month but we saw what we could pay the five hundred dollars a month so for the entire year this year we paid five hundred dollars a month which this year will total six thousand dollars so that's going to bring that total down the amount that we somewhere around fifty nine thousand dollars and of course we did earlier here that we received permission to continue to pay that and there is a commitment to to get this done so we can put that behind us and we've tried to do our business to where we could concentrate on this debt and we've done that so if that's maintained in the future we can put this to bed after a few years yes Sir. Yeah we we appreciate your coming to get seeking approval we appreciate payments being made as we look for it's moving toward trying to resolve it looks like everything I'm seeing looks like that so Senate committee on that age when bad things happen but it's good to get fixed so any questions committee president Hillman. thank you Sir. It says in here that you the money had not been transferred from the general fund to the street fund for the past were to sit at anyway a number of years is that correct no. that. Okay let me set like this in the year nineteen and twenty the transfers one made and that total about four thousand little forty two hundred almost forty three hundred dollars we paid that amount back last year okay we clean that up okay this entire sixty some odd thousand dollars goes back probably fifteen years that that's what I was asking yes but but that practice is no more but we still have to have the debt okay yes we we were it's been transferred properly and we are address and it seriously to pay it back okay and so you paid back six thousand dollars. Roughly this past year on that sixty four thousand for the year twenty twenty two and for the year twenty twenty one we paid forty two hundred dollars to a different segment but of the same day at okay we were still making payments to this bigger debt but we paid to smaller one off and that work is concentrated J.. Do you have any idea what your anticipated general revenue is for a twenty twenty three our physical twenty twenty three. We're we're we're looking at somewhere around eighty five ninety thousand dollars if I'm not mistaken. Okay. And and we have requested because it's doable and we can we can maintain at the five hundred a month okay and and we can see some light at the end of the tunnel we can see get this paid off I agree okay thank you thank you Mr. Anymore questions committee Senator Irvin you're recognized. I just really appoint a personal privilege and if I may this is one of the coolest communities in the state of Arkansas I have the blessing of inheriting them in money districts and if you ever get a chance when you're driving up sixty or down. Okay six C. as sixty six sixty five sixty six sixty five anyway you just stop in it's pretty cool what they've done there and it's just an amazing little community with an incredible incredible history and so I just thank you for being here thank you for what you're doing to address that but you're doing really great stuff in your community to and I appreciate that. Thank you Senator Irvin anymore questions committee. C. nine without objection five support thank you all for coming today thank you. Okay that includes the reports we have this visitors as far as I know if we have a visitor from any other county municipality today let me know at this point if not we'll begin back at the start of the synopsis. All right we'll take a look at Jefferson County for the year two thousand twenty one. And this this was deferred because of the finding on at the top of page three. in the District Court there in Jefferson County and in pine bluff they had a probation officer the begin collecting money before his new position was approved and so the amount charged for a fees were higher than they're supposed to be in the funds collected were deposited into the probation officers personal bank account when the court personnel to discuss these discrepancies with the officer he indicated that he was not told what to do with the funds collected and he return the receipts of forty three hundred dollars that were that they'd been issued return that money to the court and the the committee had some questions questions surrounding that and we received a letter from the court but Jefferson County and Pombal of from the the judge and the court Clerk and Joe archer is sitting over here actually supervise this engagement so he's going to summarize what that that letter had to say. you're recognized Georgia staff after the meeting in November of. I mean of sure cochair Garner discuss this and whether the bring them here we will give opportunity to submit this escalation letter and they did so very quickly they did want me to let's NO they would be glad to appear they're not you know this would be a body not theirs ugh thank you any questions you have but they did submit the letter. Of the little background back in doing COVID both districts are divisions of the court lost their outside probation services and they couldn't hire anybody so I mean the the confined to service so they advertise a new position and they had a apple apple commit but due to the of both the city and the county need to agree on funding and accounting issues there were wasn't the ladies and the probation officer that was hired to compile himself to start collecting fees without the proper accounting system set up for the proper authorities on October fourth two thousand twenty one the court personnel contacted of altars to that problem I personally went over of the next day B. as in verified that of yes they had collected is forty three hundred dollars they had already obtained the receipt books and the phones were already obtained back that afternoon from the the gentleman. Of these funds are currently being held by the county sheriff's office and have been deposited and as soon as this report is approved they will reimburse receives any phones due to the individual to pay the. Question No. So if I can last time we saw this might raise a bunch of red flags me I talk staff afterwards. From what they said from the letter from everything we look like this was a guy got hired which had money coming we're trying do the right thing wasn't trying to steal it one try to do anything he just got overzealous open account to put the money in trying to be at his new job trying to help out obviously as long as he did it and when they found out about the immediately corrected it the money was a hundred dollar difference I think I think he's going to pay that back it already has everything looks like from discussed with staff that there was nothing illegal done here nothing done it was wrong to do it but nothing was done in my opinion that would be required to come here explain it so I told staff that this letter would suffice for me also the committee can make a different decision but I would recommend we file this and that this matter be resolved unless anybody has major issue more more happy Coleman there. Any questions comments. See now without objection will follow support thank you. All right we'll continue moving through the synopsis the next to reports or the town mall for for two thousand twenty two thousand nineteen the committee has deferred these because all port. As they they lost their term back funding if you remember in this committee. recommended that they would be that they would lose their. Their charter today. We are you you a preview file the two thousand twenty one report so I was just checking on the will of the committee if they'd like to still deferred these two reports or if they'd like to file on. Seeing as how the two thousand twenty one has been involved. Hello we we I think I think that they'll be another audit on them and they're likely to have results again and what you you all have to deal with this again personally I like to resolve this get out of here but that's up to y'all. Well that case without objectionable fathers port nearby object no objection moved for about that. Okay the next report will be the town of horseshoe lake on page eight. And Per view counts payroll revealed wages and taxes withheld not reconcile between the Irish reports and the Arkansas A. R. three report was not prepared and submitted do these discrepancies it appears taxes would help may not have been remitted to the appropriate taxing agencies the similar findings issued in prior report this report has this is the third time it's been deferred in recorder treasurer Carole Adams couldn't be here today should health issues isn't looked sounded like she had some surgery initial recovery going on We will probably the this is this is December of two thousand twenty two so we'll be doing that two thousand twenty one audit soon this is the only finding they had will definitely follow up on this staff would recommend filing this report for these reasons without objection a false report. Centum worthwhile okay the next report is the city parking right below it for the year two thousand twenty. A payroll tax of two thousand twenty were not remitted timely as of the report date we cannot determine that taxes owed to the IRS from previous years of twenty one thousand dollars have been remitted a similar finding was noted in the previous four ports dating back to two thousand sixteen. staff spoke with the mayor on Tuesday and the recorder treasures having some health issues like she's been hospitals my understanding this is the fourth time this report has been the deferred this is the fourth meeting and again this is the two thousand twenty report we will definitely follow up on this because it's of an issue with the the R. S. staff would recommend filing the report without objection father report. Okay the next report is Monroe County on page thirteen. we have one finding this is man okay the year two thousand twenty the balance remaining the commissary account of four thousand seventy six dollars not identified the similar findings issued a previous report. Again this is two thousand twenty report staff is one third of the way finished with the two thousand twenty one report we should have the two thousand twenty one report in the next meeting in April or may and this is an issue will follow upon as well staff would recommend filing the report without objection follows for. Continuing At the bottom of page thirteen. These are this is will cover a couple of this support is certified to the Bangalore city center ten for the year two thousand twenty one. Non unauthorized withdrawals of thirty four thousand eight or forty one dollars were made in the city's bank account C. personnel discovered the other unauthorized withdrawals upon reconciliation affected account and the funds recovered from the bank. In late two thousand twenty one city personnel were made aware of questionable expenditures made by the former public works director and the Senate in police department investigated this matter subsequently the director was charged on December sixteenth two thousand twenty one with the only theft of property and fraudulent use of a credit card and debit card amount of sixty two thousand one hundred ninety dollars our review of selected transactions revealed an additional one thousand eight hundred fifty dollars and expenditures that the department identified as questionable continue on page fourteen the city disbursed two thousand five hundred dollars to Ozark regional transit without a contract for services the parent conflict with the Arkansas constitution article twelve section five this reports be certified to bond board and will be referred to the prosecutor and there's no one no one was requested to be here because there were no repeat findings in this report if no objection will files reports. All right the the next we have on page nineteen through twenty we have this an investigative report on the voca of fire rescue department. And miss Kim Williams is here to give that report. Miss Williams recognized give a report. Thank you Mr chair Kim Williams with staff. At the request of the nineteen west judicial district prosecuting attorney staff as requested to assist the Benton county sheriff's office involving allegations concerning this this fire department in about god we review transactions from January sixteenth through January twenty twenty one of. That's the bout the time there a recorder treasurer the district's treasurer resigned. And what we were able to find. There were sixty six transactions that were made by the former department secretary totaling over twenty four thousand dollars they were unauthorized and improper. We had a state tax lien that was filed against the department that was satisfied and there were numerous internal control deficiencies and most of the disbursements had not I did not have any supporting documentation. we noticed that there were no internal controls and all during COVID they got lax on having to signatures on the cheques no one else was looking at the bank statements. So the former treasurer Adam Kitty read as we paid almost twenty thousand dollars to the Department he was charged with theft of property in January of this year in this case is pending as the date of this letter. I just wanted to inform the committee no one's here from the Department but they've hired the city treasure to keep their books they've also added a control over there's two signatures on all the checks and they were having someone independent of the bookkeeper reconcile the bank statements and requiring documentation for this. Thanks waive any questions. Excellent work Preciado look like You are covered was should not cover. Well actually we get the Department credit they noticed the discrepancy yeah it sounds like they knew it they want to get on and they want to help build the case against the guy yes good good good work. Are moving on. Okay give me a couple father poor without objections what you want to keep it going. All right the next report is on page twenty one is Carroll County for the year two thousand twenty one on December twenty second two thousand twenty one this the county discovered employees payroll direct deposit have been fraudulently diverted to another bank account after the ploy the contacted the council about wrist not receiving payment it was it was determined that on December seventeenth the county made a direct deposit change after receiving an email from what appeared to be the employee's email account this transaction resulted in a one thousand two hundred seventy eight dollars lost to the county this report is being referred to prosecuting attorney and no one was invited well object you will fall for. Okay nobody County for the year two thousand twenty. From. County officials could not locate a lease agreement related to a four hundred dollar payment. And the monthly payments to four two thousand twenty total forty eight hundred dollars because county officials are unable to determine the purpose of these expenditures the county sees payments in July two thousand twenty two the lessor was unaware of any lease agreements and cease billing the county we recommended the council seek legal counsel regarding the resolution of these matters. the county judge issued to court orders relating to the sale of the building we cannot determine whether the county complied with the requirements of Arkansas Code for advertising the sale of the building in a public auction additionally the county did not require the purchaser's to submit payment in full on the day of the auction as a stipulated the court order on December thirtieth two thousand nineteen the county received insurance proceeds as seventy six hundred dollars remitted these perceived to the purchaser on January twenty seventh that documentation since to substantiate the cost of any repairs made to the county or the purchaser. Quorum court minutes didn't document the review of the par report. competitive bids or not solicitor way for the purchase of a sanitation truck costing a hundred and fifty five thousand dollars the county court did not approve to short term financing obligations executed for the purchase of equipment additionally the county court did not approve amendments to extend the terms of these three existing short term financial financing obligations one X. extensions because the term than dentists to exceed five years in conflict with the Arkansas constitution. Road fund expenditures exceeded preparations by two or thirty six thousand dollars that's on we're continual place twenty three. The quorum court adopted the an ordinance is to establish a service fee for solid waste collection. And the ordinance exempted commercial business churches and deer camp from the fee however the county have a county resources were used to provide solid waste collection services to these entities in conflict with Arkansas constitution article twelve which states in part no council shall appropriate money for or loan it's credit to any corporation association institution or individual. And the continuing on page twenty four the county pay the corner four thousand four six nine dollars from live miscellaneous job performed or without a contract for authorizing ordinance in conflict with code. The county pay nine hundred fifteen dollars to non employees for Christmas bonuses without court authorization any conflict with Arkansas constitutional to a section five. Additionally bonuses were not paid to all employees and payments were not in accordance with the announcmenet prescribed by the quorum court. The County judge Martin glass and county Clerk Julie Stockton all over neither one or here the judge called and said he would be unable to attend neither of these officials will be in office in two thousand twenty three this report has been referred to the prosecuting attorney by staff would recommend filing the report. If they were going to be re elected I'd say bring it back is extensive and I don't like people. Not coming up for us but they're not gonna come anyway so we might will fall the report without objection. All right beginning on page twenty five Newton County. The county paid employees a six thousand dollar bonus after nine years of service in noncompliance with the county ordinance which states county employees who have completed twenty five years of service we'll have the option to state their intention to retire in three years and receive a two thousand dollar yearly income for the last three years of employment the employee retired ten months after receiving the bonus and then was re hired by the county six months later subsequent to our questioning of the payment the employee re paid six thousand dollars to the county on August seventeenth two thousand twenty two. Continue on the next page. The sheriff's office employee resigned from county employment on February nineteenth two thousand twenty one it started working for another municipality on February twenty second two thousand twenty one subsequently the county paid the former employee for forty hours every week for eight months using sick vacation and compensatory time with payments totaling fifteen thousand three and twenty four dollars documentation supporting leave balances was not provided therefore we and were unable to determine the validity of these payments in addition it appears this individual was paid for more leave than he was eligible to accrue during his tenure. this report's going to the prosecuting attorney and no officials were invited without objection is for this problem. What should a short. County is next on page twenty six bumpers twenty six the quorum court voted to D. point five four acres of land valued at two thousand one and sixty dollars to move in to an individual who has maintained this land and had an easement through it to the adjoining property which this individual owns however this arrangement conflicts with the Arkansas constitution article twelve section by and the public purpose doctrine. The objection filed this report. Also like a half acre land free. All right. Thank you senator Page the topic twenty seven would would council for the year two thousand twenty one the county paid one thousand dollars to employee for lease of his personal tools to be used for the for county business without authorizing ordinance as required by Arkansas Code. Subjects were filed for. Okay the next court tennis surely just below for the year two thousand twenty one the town executed to twenty three thousand dollar promissory note to sell town owned residential property to the current tenants all leased on basis this arrangement appears to conflict with the Arkansas constitution article twelve section five which states in part no town so long it's credit to any corporation association institution or individual additionally the town council does not adopt a resolution authorizing the conveyance of the town property is required by code. Good objects were filed for. All right next report is. On page twenty three the town of beatable. I'm sorry thirty three thirty one thirty one thirty one. Number twenty two of one number Beeville. I do pass all right Beeville. I don't know what groups that you're two thousand twenty one two thousand twenty the fixed asset listing was not properly maintained as required by code similar findings issued the previous two reports dating back to two thousand fourteen recorder treasurer Polly Adams called and she was ill and not able to be here today. Without objection will favour report. One of the bill or. The city of grubs for the year two thousand twenty one. An audit agreed upon procedures report was not completed for the water and sewer fund as required by code and there's similar findings was noted previous reports back to two thousand seventeen. cash receipts and disbursements journal for not properly classified in total preach Fund in noncompliance with code the similar findings noted previous file reports back two thousand ten R. S. quarterly reports and Arkansas Department finance administration for mayor three were not provided we cannot determine if federal withholdings were properly withheld remitted similar findings noted back to two thousand seventeen of the mayor Jackie IV had health issues she's not gonna be able is to attend my stand they're gonna have a whole new slew of officials in two thousand twenty three and this engagement is the two thousand twenty two engagement scheduled for early two thousand twenty three. staff recommend we we file because this report will likely be presented in the next command with object father for. Tell Jacksonport on page thirty two. Pritom receipts were not issued for all funds received in noncompliance with code cash receipts and disbursements Charles are not properly classified. They don't have totals for each fund and bank accounts not properly reconcile in all these findings went back several years recorder treasurer Deanna Dotson we did not hear from her today she was invited to be here. Without objection files for. The election for town St Joe. On page thirty three. For the years two thousand twelve twenty one two thousand twenty the town was not in compliance with the misspoke counting laws indicated below bank reconciliations not perform free numbers received from issued for all funds cash receipts and disbursements journal for non established and your financial statements are prepared and posted invoices were not retained for all expenditures electronic disbursements that were making the jump from without proper approval by the council and without establishing internal control of financial accounting current controls and documentation for the audit and accounting purposes a similar finding was issued to the previous report. And on page thirty four. R. as forms W. two W. three and ten nine I'm not filed this summer for was issued in a previous reports dating back to two thousand eleven. Mayor Ben Taylor was invited but he is not here today. Without objection follows for. Okay all right. Town of Mount Vernon on page thirty four the bottom record Trish did not submit to the council monthly finance reports required by code in this report we didn't get a response And we've contacted the detail and we just haven't heard back from the about section will differs report to the usual bacteria okay. All right beginning on page thirty five three page thirty eight they're not reports with resolve findings staff would be happy to answer questions as best we could if there are no questions staff would recommend filing these reports any questions that objection we will file Page thirty five three Page thirty eight you said the multiple ports five all right on page is thirty nine through forty there are forty five reports with no findings staff would recommend filing these report without objection father reports. That concludes the Review reports thank you excellent job by the staff I'm F. next meeting Legislative Joint audit committee will be held at the call the chairs present if you got something. President very well thank you I just asked him to make sure that all of our auditors are healthy when they go out because it seems like they're spreading a lot illness throughout all the communities that they audit so any precautions that they might need to take to I'm telling you may may we need given something that you know into the year sickness is going around I know that the new legislators coming. This weekend that represent of you're recognized. I'd like to say some before we adjourn been on this committee now for ten years and I just want to commend the staff of the audit for the job that they do and the professional way that they do it and the integrity that the use of and I know like it's a lot of flak and I've had several phone calls about they didn't do this right they didn't do that man and I have never found them to take any. Direction other than what was prescribed by law and I just want to commend them for and do you committee members of the the care that you take with these counties municipalities and the the the the way that you can have looked at them I want to commend you for that also just let you know that it's it's been a good server without and also with the co chair in that have a. Yeah yeah back and forth the period shall might though and we have and I have certainly enjoyed serving with him thank you all second of all that that. Anything else about that we're Jr.