Legislative Joint Auditing-Counties and Municipalities

One thirty because we know order. By go sit down. Hi first order of business is adoption minutes of the September eight two thousand twenty two meeting. I have a motion that motion we have a second all those favor say aye opposed okay passes will go to refute reports Mister John. Thank you Mr chair. We will begin with reports we have invitees here to attend the meeting and will begin on page one with the city of all the right of. The city paid already festivals and events and nonprofit corporation one hundred thousand dollars without a contract for services and non compliance with the Arkansas constitution article twelve section five these payments Senate five thousand dollars from the general fund and twenty five thousand dollars from for from a advertising promotion fund used to set up and operate an ice skating rink during the holiday season. Continuing on page two. The city expended fifty two hundred dollars noncompliance with Arkansas Code as follows one thousand dollars paid to a business owned by the spouse an elected official for cleaning services without authorizing ordinance thirty two hundred dollars and one thousand dollars paid to to employees for miscellaneous jobs performed after normal working hours without an authorizing ordinance similar findings noted in the previous two reports. The city fatal local construction company contractor number one one point four million dollars for various projects in two thousand twenty review invoices and other documentation concerning these paid payments reveal the following. The city solicited bids for drainage project in January two thousand twenty and accepted the lowest bid of ninety thousand dollars which was offered by a contractor number one subsequently the city pay contractor number one for invoices totaling three hundred forty five thousand dollars despite the project remaining unfinished no change orders or other documentation can be located to justify the excess amount paid however we noted sixty thousand dollars and difficult buildings no over charges during a review of invoices submitted by contractor number one. Contractor one charge nineteen thousand dollars for materials purchased from third part party mentors without supporting documentation therefore the validity of the T. of these charges cannot be determined in July two thousand twenty one the city agreed to terminate the agreement with contract number one and hire another contractor contract number two to finish the project. Contractor member to complete the project in November two thousand twenty one it was paid sixty nine dollars sixty nine thousand dollars bringing the total the project to four hundred fourteen thousand dollars it should be also be noted that in December two thousand nineteen the city accepted an hourly rate bid from contractor number one for various construction services for the calendar year two thousand twenty the city subsequently pay contract number one for several individual projects that exceed thirty five thousand dollars without injuring and written a contract or soliciting additional bids we question whether the hourly rate bids comply with Arkansas Code fourteen fifty eight three oh three which requires cities to solicit bids for purchases over thirty five thousand dollars. Administration employees receive three percent raises in two thousand twenty one without city council approval as a result seven employees receive salary overpayments totaling just under six thousand dollars. The city paid the elder radio chamber of commerce forty five thousand dollars for economic development services without a contract an apparent conflict the Arkansas constitution article twelve section five. And continuing on page three. The city was on it unable to provides invoices for credit card charges totaling sixteen hundred dollars to various vendors during the period June first two thousand twenty third December thirty first two thousand twenty due to a lack of supporting documentation the validity of these disbursements could not be determined. Mayor Veronica Smith career is here to answer questions. Maybe can come down to the end of table please say your name and title for the record and any comments you may have before moved question. Veronica Smith creer. I'm not sure what else do you have any comments about the findings for moved question. I'm actually the letter that I received only one over one of the finding so I apologize and I'm a bit of a laws and all of the the findings that we're going over I do recall the first one that you mentioned I want to say it was about the contractors maybe. Correct contractors one into that was a of course of public works. Decision with the council I do recall that incident with the the contractor that did not finish the work that they were contracted to do I do know that the council made the decision to move forward with the next contractor the fact that the proper precautions were not put in place I know this is after the fact but. I'm. I'm kind of at a loss on that what I do apologize. Okay any questions committee. I have a few let's go with on page three at the top of the. Second finding the government body did not review their prior reporting company comments for the first regularly scheduled meeting under Arkansas law you're required when you get audit findings from the state to have that your next legally council meeting this is a finding in two thousand twenty twenty. We said you do not have that next general meeting. Is that correct that is correct any city you're going to fix this moving forward is that correct yes Sir do you have a city council meeting tonight after the audit findings we do is the Audie finance own that regular schedule meeting it is not. It will be added to sign on the on the agenda The. Okay because Page ten part is whenever we get responses that are short and say we will comply with something. And then immediately afterward we find the case we are not complying with what we told you was law. That brings up a lot of red flags in my opinion let's go back to the top of page two to the city doing the butterfly fifty two hundred dollars a noncompliance of Arkansas law the thousand dollars who was the spouse that was hired to do that work that is my spouse. He was doing work for the city before I became the mayor. And that is to the public works department. And this was done without proper authorization correct that is correct I was told by the former mayor that as long as I was not the person that contacted him or to do any of that work that that was not an issue I see that that was not accurate but that is no longer an issue because the public works department no longer falls under my administration it falls into the council. Okay and what about the. Thirty one hundred thousand dollars paid to see to see employees miscellaneous jobs both of those with public works employees I'm not sure why they were plate for miscellaneous instead of overtime they both work for the public works department and any of the miscellaneous work was also for the public works department as it was for the municipal auditorium events and that happened in the proof to previous reports which is under your administration is that correct and I might add that even for twenty twenty I'd not sure why that happened because one was the facilities manager I'm not sure whether they would be in paperless miscellaneous and the other one was no longer an employee of the city I'm I'm not sure how that. How that happened but that should have been a payroll issue initiative in overtime. That is correct but in twenty twenty was when the facilities manager began there is no longer a facilities manager. As well so that should not. The a finding okay let's move on to this local truck company so you there's a bid for ninety six. Ninety seven thousand dollars roughly by contractor be it one yet the total invoices that I'm assuming paid for the from the city well for this purpose was essentially fired was four total amount of three hundred and forty four thousand dollars. So just a rough math on that that's three times the excessive amount that the bed itself so can you explain the how that happens where somebody puts a bit in the bidding process you always pick the lowest bid because it saves a taxpayer dollars but yet somehow the project now ran three times the amount and it was not completed forcing another contractor come and explain how this whole process happened held the payments happen to that person outside of the contract how how old something that excess is allowed to go forward for so long the payments would have to be approved by the approved by the council I cannot approve anything over two thousand dollars so that would have had to go before them as well as the be a process the amount that they agreed to and the fact that it was excessive would have been on the Council they would have had to approve it and they were the ones that let it go on until they decided to give it to the next contractor yes ma'am I imagine it as a mayor year at the city council member meetings explain how that discussion happens because it if you just said was true then you would have to be there whenever the motion was made and was second in and they approved the extradition of money because can you explain how that happened I cannot I can just tell you that it happened I cannot explain the why. As to why they would continue to approve something that was in excess of what they decided to do in the beginning again they have to approve all of the the bills over two thousand dollars so they were aware. Okay any other questions committee. Representative. hello you've been mayor I've you may have stated that earlier I did hear it this is my first term as your first yes how many years four four this is the fourth is the fourth one okay yes that's funny now. Mayor on the finding a number one this one worn for for to prosecute turning. So there was a hundred thousand dollars paid without a contract for services in compliance in compliance with the law. how did that happen I'm sorry you said divers finding there's city L. radio paid already pencil invents a hundred thousand dollars roughly without a contract for services Inc in noncompliance. A. U. X. how did that happen yes ma'am there's about. I'm just counting off head five four five different reports of the city not getting contracts for services that the seeds providing I mean at right to be simplistic in this but if I go hire somebody do a job for me the first thing I want to do is get him to sign a contract this seems to be a systematic problem with the city where they won't get contracts for. Relatively large amount of money for taxpayers. Acree that that again falls to the council and the public works. So you have no culpability in any of this. As the mayor of since I'm an elected official as they are I'm I'm assuming that's why I'm here but again they're eight of them there one of me I do not get a vote. Mayor what we're pretty methodical about determining who is responsible for what and specifically on this finding you and the chairperson of the AU advertise a promotion mission or the people responsible for this so. That but I don't know if I believe the excuse that it's always a city council fall for all of these expressly when their specific incidents of. like your spouse being paid and other issues like that that I think comes into it are to the executive officer who is supposed to execute the contracts and other things that the city enter into I should be okay anymore questions committee. Of mayor I'd like to address some of the responses that you made beginning on the first page for example on on the first and then you said the city will obtain a contract for services and this was for the year twenty twenty have you done that for services that that was your explanation the city will are paying a contract for services. For this offense festival. Did you do that. It appears not so the answer is no. On the second finding Arkansas Code requires city management to maintain financial records your response to that was the mayor can concurred with the above recommendations and has approved the appropriate adjustments to the city financial records has that been done they should have been done back treasure has that been done yes hello I believe so. In other words you don't know. I couldn't say for sure okay. On the third finding. The responses the city will establish an authorizing ordinance to establish effective internal controls over the identification of contracts in which an employee or spouse related to an affected a lector official may have an interest. Have you done that. That has been done for other elected officials I would do one that would have to be retroactive but I'm no longer over the public works department the CD this is what you said yes Sir the city will establish an authorizing ordinance have you done that. I was not sure that I would still need one it is going to do it correct yes Sir okay and you haven't done no Sir okay. The public works department the city council. Here's your response to that Administration employees receive a three percent raise in twenty twenty one without city council approval. As a result seven employees receive a salary. Overpayments your response the twenty twenty one budget was passed late in the year without adequate instructions as seven point four percent rise the city council will ensure proper and adequate instruction and we'll prove all salary increase has that been done. Yes okay. So I'm guessing conclusion of this. It seems like that you have responses to these are very short. And you don't necessarily follow up on all of them like you said you were going to test. Thank you do a better job in future. If given the opportunity yes Sir okay the main you're up for reelection. You got a phone I do okay all right thank you thank you Mr. Let's see we have a couple people I don't know if president of rival or you go first in German thank you thank you Mr ma'am on this first one that mentions a nonprofit corporation of a hundred thousand dollars without a contract. It also mentions it was done in the form of seventy five thousand thirty nine dollars plus twenty four thousand or sixty one for advertising and promotion of moon. If the county paid that did not go through you. The city yes ma'am the very first one because if the city are counting actually pays for anything it has to go through the county judge John Mayer I just wonder if you signed off on it I do not sign off on things for AMP. They operate differently. I don't sign off on their checks. Senator recognized. Thank you Mr. only contractor for you at the the one contractors and and then you end up firing them to the second contractors original bid was around ninety seven thousand dollars did you have an engineer on that job. They should have I do believe the public works director also assisted with that. And I'm I'm sorry that I don't have that in front of me now okay So it was our change orders in this. S. from what I was told there was not. Okay what justification did they give them that there was no change orders. To my knowledge as as far as I can remember and again I apologize that that is not the information that I have before me about this meeting I do not recall them giving an adequate justification and that was why the council decided to move for with the contractor number two okay but it did go on for a very long time your public works separate from your city council I've public works director now falls under city council since twenty twenty. Okay thank you very much. The more questions I have one final one and this is one that I think will represent love you're recognized sorry okay thank you Mr because I'm I'm I'm a little confused right now because. The mayor are you stating that is we have a couple of different departments. Do these departments fall under you are do they not follow the the public works department no longer falls under me that falls into the council. Okay this. Within the mess that is. Did you all talk to the individual yes you talked to the mayor. But if if I guess the departments of fallen under someone else are you talking to if it almost falls into the council are you talking to the council are you talking. To the Americans I'm a little confused. Just I think it just a moment the Joe you supervised public. That was all as older I'm sorry so that so the question is. Though the public works department they're saying doesn't fall in the mayor did that happen before or after the audited this is a two thousand twenty alright so what do we know when that happens. December tenth twenty twenty. Okay so for. Right that would that would event in the reporting period so that the department was under the mayor for almost the whole year just twenty one days it was not but not for the twenty twenty one incidents that you are asking about the contract this is about a twenty twenty one. This is this is a twenty twenty audits of these instances are twenty much of the contract situation also from under twenty twenty one yes ma'am will have additional audit next year for that but it sounds like the conclusion is that it wasn't a mayor's authority for the majority vast majority twenty twenty which this report covers okay R. doesn't mean that that's what I'm getting confused because the the mayor saying that it doesn't fall under her the I'm what I'm trying to figure out is are we talking to the individuals that we need to talk to in order to get the things correct I'm at the end of the day the the only thing I want to know is is. Are we talking to individuals is going to be able to bring this back into compliance. Because if if we're not who is it that we need to talk to when not all these instances were under the public works some some instance issue she's talking about Some of these instances were under our department but but again she was the one that was. All right for the most year two thousand twenty and so we would we do ask who's responsible if they have a repeat finding that say they're they are invited but not necessarily invited if they have a finding that we read here some of the findings to the prosecutor and those officials are not necessarily invited to the meeting. Action okay within their yes I will go back to something that senator garner says so you have a meeting tonight. Do you set the agenda for that meeting I do okay I think you make sure that this is put on there so that we can okay we'll and then can we get a follow up to. The resolution I guess whatever the council and you come up with the address these fine yes okay all right thank you. Thank you Mr president you're recognized. Mayor just for my clarification in your city form of government do you have a city manager we do not we do not so does the public works now that is standing on its own is it totally separate from the city budget with its own accounting system and processes. Our set up is a little different the public works budget is separate from mine as far as administration is concerned. But if you don't have a city manager. Then you're serving as both the CEO and the chief operations officer for the city is that correct as far as the budgets are concerned the budgets go before the council they have a finance committee so I don't get the budgets to a to approve them the council approves them they go straight to them not through me. So is the Council overseeing if I understood you correctly Council overseeing the public works department instead of yourself is that what yes okay thank you. Thank you one more funding and we can move on Senator no more questions this is the issue I think directly ties you mayor on the bottom of page three the second to last finding will your secretary was reclassified to a new position with a substantial roughly. Twenty thousand dollar increase in salary per the statute improper understanding that was supposed to be approved via budget through that city council and you do not seek that you did made hiring decisions and budgetary decisions outside accounts preview do you have any statement on that. We discussed this last year when the human resources director was here that situation has been rectified as well yes ma'am that last year was last year's binding this is another year after that so that problem would still be going forward you're saying that problem rectified now going yes Sir okay the more questions. C. nine without objection is reports fire thank you ma'am our file thank you mayor thank you. The next report will be the city of Higginson. On page nine. The city paid a total of two thousand twenty eight dollars to the mayor and council member for the role of sewer operators for the city based on Arkansas Code fourteen forty two one oh seven an Attorney General opinion two thousand three dash one sixty four we question the propriety of the dual roles bill by these individuals mayor Randall Holmes Lee and recorder treasurer petting honestly or here to answer questions. come for please say your name and title for the record any statement you may have before we do any questions. Thank you. My name is Randall homeland in the mayor of the city again for the last eighteen years. My name is Patty Holmes Lee and I'm the corporate treasurer I've been there for about six years now. You have any comments before you get any questions ma'am about the finding a response or serve both of you I'm sorry. No Sir. All right any questions Mr could I make a statement yes Sir of. I have I have the the latest or not that we passed and reference to fourteen forty two one of seven I don't know if he'll have had received a copy that I sent one to legislative audit. I also have two letters from our the White County prosecuting attorney. That should have been in y'all's record it was also sent legislative audit. Okay staff just clarification so I appreciate you having ordinances and the letters and sent the staff will be in any kind of future reports the issue that was brought up to me is not so much that ordinance will happen is that you're basically approving your own pay raises becoming your own bosses and that's the complicated issue with that is that the way you're going about doing the races themselves ordinance or otherwise is the issue do you understand it stinks and I'm I'm talking about I do but are that's that's not up to us we do we make myself or councilman Glover might know vote during it's all handled by the council the council approves any raises we haven't had a raise in our at like I said we act as as server operators were both licenses class two operators the salary for that position that we hold has been the same for the last ten years. And we have been holding those positions for the last fourteen years. Yes so the the question that I mean I got it better now. The question is can you hold both roles. Can you be both a ex mayor slash C. council member and a person who is receiving a contract from the city I understand that I understand that it in your Samuel came in because of an ordinance yes that we the that's been brought up in audits before and we presented our ordinance that to fourteen forty two one of seven states that if if an ordinance is passed. That the spells out the extent of the authority for those positions that it is allowable that's the guidance we've always gotten from municipally on. Okay the more questions I will look at this code if there's I can jump in ask questions or anything else but. Question. Mayor from what I see here because you might two thousand dollars a year or something like that you see in the Sure we have the the position itself Sir is it is budgeted for one thousand dollars a month between that we have I received seven hundred and fifty dollars a month and counseling Glover who only does it goes around as the readings a received two hundred fifty dollars a month. Cellectis he hit a bargain to me. It would cost us we we have looked at it before in the future in the past to hire someone with class two operator license like I have it would cost us anywhere from two to three thousand dollars a month. Okay. President plan and you have a question just a quick question was you also ordinance passed before or after this finding it was passed after this finding we went ahead and they told us that we needed to redo that and we we did that and also sent to the prosecuting attorney to give her opinion on it and got a letter back from her also saying he was a revision to the ordinance that we are we revise the one that we have already had for the last ten years thank you. What was that prosecutors opinion art up what was that person's opinion on that if you might just give me a synopsis of it don't read a letter at a history it's it's pretty short it the last one we got from hers as the mayor has provided me a letter setting out the remedial actions taken by the city stemming from the compliance report I am satisfied with the corrections and there's no issue of any criminal conduct in history okay well clearly criminal content conduct verses so might be able to sue you saying the city's basically doing something not too is two separate issues. But. I mean. We're not a judicial body there's only so much we can do we've given them the findings I think we. B. discourses. What we can we disagree you disagree I think it is time as either of the citizens or somebody else and look at my opinion on it Mr I'd also like to say that there's this is the twenty twenty two Arkansas rural water association membership directory there is it last approximately eighteen other cities that have that their mares play a key role as there simply either the water or sewer superintendent well that could be how will be year that may be something that the municipally need to bring to the cities and the the clarified make strong language which everyone wanted to but it sounds like something that needs to be fixed one way the other president of love that thing representative berries nuts okay yes I guess my question is so. And I guess this this question is to staff So those are represent let me say something B. and this is this this question is if the applicant I guess we don't continuously need to see this bond in the is this is this ordinance gonna satisfied with the finding in regards to what the staff is looking for. Because it I was out of the room but what I don't I guess my understanding is that the city council voted. To give this additional funds you recuse yourself correct yes. And then the ordinance was passed. So is this ordinance I guess they're going to have the are they going to this is gonna be a standing order. Is this going to satisfy the finding are we going to continue to see this fine. Well I guess every year. You will take a. Yeah. Okay area we'll look at that every year I still think we have a disagreement in that we what we believe the law says I mean what. Small cities have this they have a problem I mean they have an issue of having water operators but if you notice what we ward the defining we question the propriety we didn't you know some of the other ways we work findings will say in noncompliance with what we think here is that it doesn't go along with the spirit of the law in that he the mayor is is the boss of himself basically that be sort of like the mayor being also the head of the street department so that's. That's why we issued the the finding David they may in it and they made an attempt sometimes the cities make a decision that it's in the financial interest of them to stop or in a certain way and they they take findings in any way I'm not trying to wander off course here are just kinda explaining where we are in Los for small cities are a little bit and okay yes all right thank you. Present a very. Thank you jim Garner the last funding on page ten and the Federal with holdings for twenty twenty one not remitted in a timely manner to the IRS that's been going on since two thousand seventeen what is what what what's the issue there and do you know how much you owe the iris iris representative berry can I get clarification is bottom of page ten my apologies yes Sir happy to city I think. It happens all of us thank you Mr chairman. What can you answer that question I'm dismissal job. anymore questions committee. Seeing none without objection will follow support thank you for coming to thank you Mr. No. Okay the next This section for me the city of joiner on pages ten through eleven. For the years two thousand twelve for the year two thousand twenty one. Refund disbursement succeeded appropriations by twenty nine thousand dollars or thirty percent non compliance with code the similar finding musician a previous report. City policies for annual and sickly did not include documentation guidelines for elected officials because the recorder treasurer did not maintain time sheets record adequate records to document leave in a cruel usage we cannot verify the propriety of a seven hundred dollar payment to the recorder treasurer made on September twenty third two thousand twenty one for ten days of annually. A bank accounts are not properly reconcile for the general street fund and non compliance with code a similar finding was issued in the previous five reports dating back to two thousand sixteen. The following issues were noted when reviewing payroll records wages reported to the IRS on the R. S. quarterly nine forty one reports did not match the IRS form W. three five eighteen thousand dollars DO this variance we were unable to determine if proper amounts of taxes were remitted federal holdings for two thousand twenty one or not remitted in a timely manner the similar findings issued in the previous four reports dating back to two thousand seventeen mayor city win for Rawson recorder treasurer Joseph Vasquez are here to answer questions thank you if you say your name and title for the record any statement you may have before we go to questions. My name is Omair system plan for broadcast of then mayor for twelve years of joiner. At Jesse that's receipts after giving statements before we get any questions and no Sir. Okay any questions committee were presented very now I get to ask the question so the IRS remittance for payroll taxes the mayor says she's been the mayor for twelve years but this been going back to two thousand seventeen what we're worse the problem with remitting taxes to the IRS. So that we everything when I came into office everything was done manually even pay roll calculated manually they don't have an upgraded system so we I want to have we'll but the council passed the accounting software to use so that we don't have to do it manually and I think a lot of still fines were through that but when we came last year for the same issue the city went ahead and passed to hire a CPA so the city now has a CPA to handle all those errors will handle everything pay roll as far as taxes and all that stuff so we went ahead and just hired a CPA to handle that part follow up Mr so is the total amount that you owe the IRS eighteen five forty seven are you still of iris. No we don't and we paid everything okay yeah thank you Mr. Anymore questions. So when your heart at CPA we passed it the I think what we have the meeting in October and November January January January of this year okay so this is twenty twenty one then assuming that that's correct in the CPM's correctly this should be not a repeat finding next correct okay any questions. See non without objectionable follows for thinking of coming back thank you so much. The next report be on page fifteen. We'll be Jefferson County. The county discovered in legislative audit verified unauthorized cell phone charges totaling nineteen thousand dollars during the period July first two thousand nineteen the January thirty first two thousand twenty two these charges related to the twenty five non council cell phone numbers that were added to this counties account according to county personnel some of these unauthorized phones appeared to belong to family in acquaintances of the county judges chief of staff resigned in January two thousand twenty two the county judge notify the eleventh west judicial district prosecuting attorney in Arkansas state police with this matter. Continuing on page sixteen. The county established a COVID survivor benefit program using American rescue plan act funding as authorized by the quantum the bar state and local fiscal recovery funds this program included twenty five thousand dollar maximum benefit consisting of twenty five percent of hospital expenses funeral costs lost wages in joint household expenses the county paid twenty five thousand dollars without proper documentation to satisfy the guidelines set out by the county. Continuing on page seventeen. Arkansas Code requires the county sheriff to maintain financial records we noted the following areas of noncompliance with Arkansas Code related to the Jefferson County bonafide account monthly bank reconciliations were not performed cash receipts and disbursements journals were not reconciled the deposits and disbursements are shown on the monthly bank statement the balance remaining in the bonafide account of two or sixty seven thousand dollars was not identify research with receipts issued for cases not yet adjudicated. A similar finding was noted in the previous report. District Court personnel discovered the following discrepancies concerning fees collected by a probation officer the probation officer begin collecting receiving funds for his newly created position was formally approved by the Jefferson county quorum court the amounts charged with probation and drug test fees were higher than the amounts authorized by the district judge the funds collected were deposited in the probation officers personal bank account. We court personnel discuss these discrepancies with the probation officer he indicated he was never told what to do with the funds he collected court personnel determined and we verified receipts issued by the probation officer during the period August seventeenth two thousand twenty one through September thirtieth two thousand one total forty three hundred dollars on October first two thousand twenty one the probation officer reimbursed forty three hundred dollars to the District Court per county officials citizens who were over charged will be refunded at the conclusion of the audit and just a staff know this very same finding will be in the Pombal of audit that we review here just shortly and because the the same probation officer collected fees for both Jefferson County and Pombal of so sheriff Lafayette woods junior is here to answer questions on section. Cherokee can't please say your name and title for the record in the judgment with you as well any statement you may have about your funds Lafayette woods share of Jefferson County. Chris Brown office manager Jefferson County sheriff's office okay just for the record I'm only here you all right off of a pleasure findings I'm only here to respond and give some rebuttal to the find every place the body fund account yes yes are we recognize that you are here to answer for you that a county judge or District Court winter standpoint Sir. Okay any comments or anything for no Sir. All right so what happened in this situation it kind of got the noncompliance with the records happen so the that's been off the change in personnel also administrations I was elected two thousand eighteen first term I took office two thousand nineteen The office manager along with his understudy directly supervises actually have the money fund account management that specifically at that time I believe it's two thousand twelve. He came in as a new employee from the county clerk's office and so at that time my predecessor I don't think was That's me with the process and the importance of reconciliation that money fund account also focus was not really placed on a reconciliation that time and so it's been a it's pretty heavy we have if I mean pretty have the account there's a lot goes into it we've identified least fifty percent of it is from individuals who have bonded out. We've sent checks out those have not been or have not cleared the bank one individual has arrested the post bond they make all the court appearances ninety percent that bond is returned back less ten percent and so a couple things we've done since that time is that an individual bond out now they are released with a an actual car eighteen car if you would. Opposed to sending checks out directly to the individual often times we do arrest is this report which is also referred as eighty are. We find that the initial information to put out fires contact information emergency contact is only good probably first couple days may come in and so when they're released a lot of times those interests are not good addresses we lost as a Cantillo XP which is a Comprehensive investigative tool to identify contact information visuals and oftentimes a poll that from various networks and we find it isn't always good either and so before we decide to do is we've also come to kind of consulted with a BKD they've gone to the compliance requirements for see just how to access our systems internally as I'm assuming that's outside yes Is explained acronym and like that is because a D. up and I'm not sure the actual that it is actual farm is the auditing firm PA who helps with I guess you would forensic auditing to get deeper into it they have access to our system we've consulted with them on a number of occasions the problem is that the county such a large account. That is almost needed a haystack in addition to doing that we've also decided just based on some guidance internally to start from a year reconcile it and keep that account reconcile from that point forward. This is not an issue of money that is missing and just identified something else so we decided to do which is also required for law is to turn over and then five on the with the county treasurer who then we turn it over to the state treasurer I think it would come part treasure hunt. Unclaimed property so it sounds like this was kinda started before your watch and it's it's it's we see this will refining a lot different capacities and that you've hired outside people you're trying to kind of work through which is a convoluted large process to kind of get it fix that a good summary absolutely yes Sir okay anymore questions committee. Go ahead. Yes Sir Mr cruciatus I don't I've got a question Sir but I don't think that we're going to get paid on this because on page sixteen Sir it mentions a hundred two thousand six hundred fifty nine L. about B. is not being taken all purchases totaling that amount and I don't think it will be a little bit less we told to let let me jump in here yeah that that the shares here he has been I believe one finding of the county judge I don't think policy isn't here neither is anybody District Court so we're going to deferred those particular findings next time and make a decision on the share. The more questions president of what you're recognized not not free not be sure for do we notify the county jail. Well the the fines for the county judge he wasn't invited because the the Committee rules are if you have a repeat finding you're invited or endless the Committee decides to invite he had some findings that were that were sent to prosecute tourney but that doesn't necessarily require an invitation okay all right thank you yes that's a good clarification I don't want to impeach to county judge not beers thousand reasons why not but. My quick reading of I want to know what's going on with this cell phone issue sounds like. They reimagine a fired at that person got rid of them and they're going from the like to kind of find out with what the rain in Spain also with the District Court speaking on the home on time that that is very problematic taking people's money put your personal accounts and I don't know what's going on with it is there is no way that anybody I think this is a proper but okay all right thank you all right anymore questions C. nine thank you all for coming day will follow support without injection thank you Mr chairman of the committee thank. Yeah assortment you're good including clarify that I think we've heard from the share so his part we don't need to dress again I personally would like to hold this over invite the District Court for sure to come discuss that the we're also hear from the county judge over that one issue. I think I think that issue that they only fired is good I think discordant here from on a note now quite into the combo of questions as well Mr so so here's the thing about the cell phone issue if if if he fired the guy I guess yes that's fine if we could just verify what remedial Wallace then I would have to hear from the county judge but. If if he did not dismiss the employee if they do not I want to know that we have a remedy for that issue itself. Sure if you want to speak for somebody else that is fine with me. What that got you go to Michael's two official. Just because of the sheriff and I work with the county officials that individuated you'll actually resign. And so it was not a separation for for termination was a result presentation was there any attempt or any kind of issue to recoup the money that they took out for the cell phones it is my understanding that that's been referred to prosecutors a has it that that is still pending outcome investigation in that case I think I'm more than adequate for the county judge not being called but I do want to hear from District Court so you could take that much back Jefferson County to be great. Thank you Mr. AS in that case we will differs report until the December meeting. When on the next report is the city of Monticello underpin answer for. Everyone for that is right that. All right so talking to staff on the man's a they can be here for conflict but there's gonna be a special report that happens for the full audit committee and so what we're suggesting is we deferred that report until that Fadi December full audit meeting click here for special porthole Committee heard the objections that. Without objection would further report to the full committee. Thank you Mr. Next will be on page twenty seven with the city of Monticello. This will be in the reports with repeat findings. The balance remaining in the bank in December thirty first two thousand twenty one was seven thousand six hundred dollars less than the listing the receipts issued for cases not indigenous judicata and payments on unpaid time pay accounts in noncompliance with Arkansas Code this is a decrease of five hundred six dollars from December thirty first two thousand twenty a similar finding was noted in a prior report District Court Clerk Julie Watkins is here to answer questions. Thank you ma'am if you say your name and title for the record and any comments you may have before the question. Julie Watkins chief court Clerk for your county District Court. I have been in contact with joy Johnson for the past two weeks I sent her my August and September settlements for racial justice and quickbooks and my bank statement and she said she was going to notify the committee that the amount has came down from the seventy six hundred dollars to five hundred dollars. Okay good so it sounds like you're working on it yes Sir okay any questions committee. C. nine without objection follows for thank you ma'am appreciate your working on it too thank you. Okay. The next report is the city of sure wouldn't for the year two thousand twenty one is just below city Monticello on page twenty seven. The District Court Clerk was able to identify one hundred eighty four thousand nine hundred ten dollars remaining in the bank account for the with receipts issued for cases not yet adjudicated in payments made online paid individual time accounts as required by Arkansas Code the similar findings been noted in the previous twelve reports dating back to two thousand nine. District Court Clerk grace grace Gault is here to answer questions thank you can say your name and title for the record and any comments you may have. Afternoon my name is Chris called on the chief court Clerk for the sure District Court today I have my bookkeeper with me glitter and she'll give you on that date correct. So as you know this is been ongoing since two thousand and nine cents we went to the virtual justice system we did have David Coles and his team out because this was a conversion problem that we have a virtual justice and they concurred with us that this was absolutely a messed up conversion and there was no way back from it the hundred eighty seven thousand we did not pay ourselves the first month out the announcmenet the virtual justice told us to pay ourselves to the general fund we didn't cut a check and it was close to this amount so we do believe that we work through it all these years to this point so now we have Almost come to the end of it we are working on the unclaimed property of we will be getting those that loaded up to the state treasure hunt November first and then we will wait for that check to clear and then we'll do our six months and then we will apply to the state audit board to disburse those funds according to their outline and close that account we're on the context system now so we don't we have been for three years so yes ma'am anything that. Any questions committee. I know the user courts of at a issue with this it seems to me something we see over and over again and about a lot of people in your spot saying we're doing everything we can to get it fixed it just is a pain so we understand we give you a grace in that area. Got questions we will file the report thank you thank you thank you chair. Just wanna make that's the end of all the the visitors that we have that signed in I want to make sure there's not a visitor from another entity that's here to answer questions before we move on. Okay all right we'll continue we'll begin back on page four of the synopsis. And we still have we have the town wall port for two thousand twenty two thousand nineteen the committee has been deferring that report until the court clears up the situation at all port we just wanna make sure it's the will of committee for you to. continue to the for that report. Say no objection it be deferred. Okay on page ten. We have tell horseshoe looked Blake Order treasurer Carole Adams was invited to be here and no we didn't hear from her so just the will of the committee if they'd like to defer that continued for that report without objection. All right on page eleven be the same for the city parking recorder treasurer permitted white was invited but we we have not heard from her. Without objection will further for. Page twelve and thirteen city of a weaker village Michelle Robbins the recorder treasurer was invited to be here and we haven't heard from her either subjects will defer to report. All right Page Thirteen mineral county sheriff Michael Neal was invited and we haven't heard from him either subsection where the father for. All right. Page fourteen these reports this is an area of the reports or to the certified to the bond board. city blauen for the year two thousand twenty one District Court Clerk discovered missing funds in excess of four thousand dollars from civil small claims deposits and the District Court petty cash box the District Court Clerk filed a police report on October twenty seventh two thousand twenty one and over not November ninth two thousand twenty one the employee of the deputy court Clerk who's custodian these funds was terminated we confirm receipts totaling forty nine hundred dollars issued from July first through Oct Tober twenty ninth two thousand twenty one could not be traced to deposit an envelope in the custody of the former deputy court Clerk containing civil small claims Kasher. Session checks totaling forty six hundred dollars rivers returned to the city in November two thousand twenty one and deposit in December two thousand twenty one Furthermore may third the former deputy court Clerk permitted or money order for three hundred forty eight dollars the Arkansas state police to cover any remaining missing cash as of the report date no charges have been filed. this the the court Clerk was not invited because it was not repeat finding. All right. Just interested why there's no charges being filed seems like a hope you should. I think the reason is that the money they feel is paid back okay maybe been part of deal's okay without objection will favour report. All right continue with the city of palm Love beginning on page fourteen the first finding is the finding re read just moments ago about the probation officer depositing us and fees into his personal account then Rick to pre paying those fees and then continuing on page fifteen. During the period may through July two thousand twenty one there already the police department police service fleet manager until he resigned on July nineteenth two thousand twenty one so thirty department vehicles valued at twenty thousand eight hundred fifty dollars that have been removed from city service without management authorization persons from the vehicle sales were not remitted to the city Mister ray was charged with theft of property on March fourth two thousand twenty two the court date is scheduled for March twenty ninth two thousand twenty three. I think we can probably do we want to pass over this and just not have anybody come because the district court's coming I like to do both those findings at once so we don't have anybody from city come explain the other ones but the District Court I like to have this open any objection that. Without objection will differs from. So what to judge. What what what the city. So we do you want us we could just of the firm. The county judges one self employed office and did all the work at a at all record of. Okay fifty one dollars that in that case without let's Committee objects I think we should file this report which is here from the county subjects from files reports. Thank you Mr. All right we'll move to Page nineteen through twenty two murder begin the report referred to the prosecuting attorney and we have a special report on five regional solid waste management districts for July nineteenth through December thirty first two thousand twenty and staff member Charlie camp will present that report. Recant whenever you're ready. The campus staff. This report was issued as required by Arkansas Code for Arkansas legislative audit to review selected policies and procedures and transactions of the regional solid waste management districts. For this report we randomly selected five districts in the state to review those included Benton County northeast Arkansas. Selain counting East Arkansas in central Arkansas. As shown in exhibit two on page three of the report findings for these districts included lack of segregation of duties lack of internal controls a material misstatement related party transactions. Violations of Arkansas Code pre numbered receipts were not issued and payroll issues all districts responded with corrective actions they've taken to address the findings. One finding for the Central District was referred to the seventeenth judicial district prosecuting attorney for further review as required by Arkansas Code this finding involved businesses business conducted with the company owned by board members. Don't have any questions I'll be glad to answer. The that board member wanted the fix that moved for this does the mayor still doing that the I believe they were going their responses that they were going to pass. A resolution from the board. So similar to issue we had earlier with if it's the same issue we have on cities and counties yes Sir I will be here but I sound like some of the legislators or pick up and make a determination whether you're learning good any questions. See non get a loan. Okay good hi thanks for the work on this project. Okay continuing on page twenty two. For the birth with reports referred to the prosecuting attorney for the city Jones were for the year two thousand twenty one. This is the city discover that employs payroll direct deposit have been fraudulently diverted to another bank account is determined that the city made the direct deposit change request after receiving an email from what appeared to be the employee's email account this transaction resulted in all fourteen hundred dollar loss to the city the loss and security incident were properly reported to legislative audit in accordance with that to sixteen of two thousand twenty one. Without objection files reports. At the bottom of page sixteen we have White County for the year two thousand twenty one two thousand twenty one quorum court the Concord amended the county's longevity bonus ordinance to include quorum court members the county paid fifty two hundred dollars and longevity bonuses to non quorum court members an impaired conflict with Arkansas Code fourteen fourteen twelve or five an Attorney General opinion two thousand sixteen to seventy two. Without objection will favour report. Continued on page on twenty three with the town of cash. Fines and costs revenue of eighty five thousand dollars exceeded thirty percent of the town's total expenditures in the preceding year by eight thousand dollars in noncompliance with Arkansas Code twelve eight four three this revenue woods was generated from traffic defense citations written by request made by the town's law enforcement personnel were from ancillary actions related to the enforcement of traffic offenses this finding as a result of the test we're mandated to do by the speed trap law and the fines and costs were greater than thirty percent the prior year expenditures and so this is referred to the prosecutor for them to make a determination on the speed trap what they say about it in the city. Day in the name of the responded they would operate within the restriction of the code as much as possible so I think they're going to either guess they're trying to going to reduce the number of tickets or the. Function that. Go ahead. have as a city cares for Tara case been in here before on something like this. And I don't know no this is not a repeat findings so they've not been in where that's of Senate seem like they've been a regular attendee at these audit meetings with Mister three years this findings not repeat finding in this is this is a relatively new finding we haven't had a lot of these because a law that was passed was updated it would be Bills update in the last session to clarify some issues a little bit so does what are the consequences of if if this continues for the city of cash. Well as far as we we we do this calculation every year and we tire of the prosecutor and they determine what those consequences are okay what are trying to get two was in any other instances in Arkansas where there's been other cities that have been found guilty of this the ability to issue tickets within the city have been taken away from the city so yes that's perfect thank yes I kind of want to come here can I just tell that we were notice on our board and the city cash don't tied up they won't have no cash. I thought that a lot better than your credit. I sit here and talk about that for like five minutes. All right of. Well judging with the first report to the next one environment okay. The mayor has. All right continue with the city marshal the year two thousand twenty one the mayor was overpaid eighty five hundred dollars from the street funding two thousand twenty one due to clear clear according to the mayor during an executive session held on August ninth two thousand twenty two the city council discussed this over payment as well as restricted street from moneys of sixty five hundred dollars expended for the mayor's salary in two thousand twenty and reported in the prior audit. The council agreed unanimously in executive session not to require the mayor to repay the two thousand twelve twenty one salary overpayment and then voted in open session to transfer fifteen dollars from the general fund to the street funded to cover the unallowable expenses. Thank you what without objection this report be filed. All right city Norphlet for the years two thousand twenty one and two thousand twenty the city paid twenty four hundred dollars to an employee for services beyond regular job duties without an authorizing ordinance in the parent conflict two Arkansas Code the city disbursed funds telling of one thousand dollars the boys and girls club without a contract for services an apparent conflict with article twelve section five. Without objection will favour report. The. That. Okay city of Paterson on page twenty four. The mayor recorder treasurer both received a one thousand dollar bonus that was not documented in the council minutes or the budget and therefore appears on authorized in addition the budget did not detail the mayor's approve salary. Without objection false report. Our city is silver springs mayor Shane Weber emailed any requested deferral until the December meeting. Without objection with the first report of this. On page twenty seven we have the queue on the municipal water and sewer it was a report with findings that we have received a response on Tuesday and they have indicated they have corrected the situation with the debt service fund being underfunded. six it would answer any questions of we campus staff would recommend filing the report three questions sea none we will files for without section. Homepages twenty eight through thirty one we have fourteen reports with resolve findings the staff would be happy to attempt to answer any questions you may have. Any fresh committee. So you know we will file this report. On page thirty two we have twenty seven reports with no findings staff would recommend filing these reports without objection we will file the twenty seven reports for no findings. Some involved Mr chairman this concludes our review reports thank you thank you for the work this month we were on the agenda item D. the next meeting will be December first two thousand twenty two and without him for the business we are adjourned.