Legislative Joint Auditing-Counties and Municipalities

Minnesota last meeting or before you for your approval is there a motion and second to approve motion second approve any questions all in favor say aye. Pose none motion carried. Of. I think I'll digress of. We got a couple people coming in from the agenda with the permission of the committee or right to a quick we have a person in our audience today who is. Making her last official appearance at this committee. And she is retiring after thirty one years with the of legislative audit and has done a fine job it is been my privilege to work with her for the last six years and I've always found her to be knowledgeable of an respectful and just enter their profession so Marty still. So Marty that don't turn red on this. And and don't be a stranger. If if we need to we're going to be called on the and I know Tim will anyway but I've got your cell phone number so if if we run into trouble will know who to get us out of it. And thank you so much for your knowledge your professionalism and your expertise it's been a pleasure. Okay a review of a. Thank you Mr chair we're going to do the reports were we have visitors that are here and so we'll begin with that on page one with the city of ward for the year two thousand twenty one. The District Court was unable to identify thirteen thousand two hundred ninety six dollars remaining in the bank account with the receipts issued for cases not yet adjudicated and payments made on all unpaid individual time accounts as required by Arkansas Code sixteen ten two oh nine a similar finding was noted in a previous report District Court Clerk Beth Glover is here to answer questions. Kassir down there at the end of the table already if you pull your might down close and not push the Senator button and a red light should come on how you can identify yourselves both of you and then what you would be recognized to present any opening statements you wish. I'm Beth Glover did chief court Clerk a ward District Court. Control gas around the mayor city ward. All right do you have any of. Thank you like to say. Ms clover Irvin yes in two thousand nineteen we went on to context the new system. And I knew I did not balance they came to our office could not affect figured out of them. I even sent all my paperwork to their office never nobody could ever figured out. as of June this year. Somebody came in from context and could tell me what it was so I'm in the process of getting all that money. Active Board gaps. Okay so you found for the money was and were supposed to go yes and you thank you I have it done by the end of the year prior yes Sir okay our questions from the committee. Seeing none thank you all for coming today and I we really hope you get this straightened out and you're excused thank you for trying. A motion from the Committee to file this report motion the second column for say aye opposed no motion carried. K. next will be moving to page nine on the synopsis for the talent Jericho. this is in the previously deferred reports property taxes restricted for street purposes of six hundred forty four dollars were not transferred from the general fund to the street fund as required by Arkansas Code twenty six seventy nine one of four also restricted funds of fifty seven thousand nine hundred fifty three dollars noted in previous years we're not transferred resulting in a total of fifty eight thousand five hundred ninety seven dollars from the general fund to the street from the noncompliance with Arkansas Code fourteen fifty nine one four the government governing body determined fifty dollars a month would be remitted from the street to the street Fund for amounts owed however this payment schedule was not followed recorder treasury a lane Dupri is here to answer questions. Good evening. Mr pre if you will the state your name for the record and then you'll be recognized to present your of our report on the lane to pre and on the. Clerk for the city of Jericho. Okay. You're recognized to tell us what the problem is that what you're going to fix what the problem is that we really don't have any money I'm not quite sure what we're going to do to fix that sorry I've had oral surgery I'm really not sure we're going to try to do to fix that all right now we're working on a search string budget as you know our town really existed off of our funds from our our police department. And of course in lieu of the law that went into effect that we can no longer have a certain amount of money collected through our police department that put us in a strange. We right now we only have about our tax dollars I think the last census that was done show that we don't that we only have ninety eight citizens which of course is untrue we just had citizens that did not comply with the census. And of course that has always been true our even our mayor has stated in one of the meetings that this was the first year that she ever participate in the census so if our census numbers are down then there for arts revenues also down. the only thing that I can suggest that we try to do of course is to do better but right now we're just in such a crunch we have had our last thing was last year are Our tail pump systems went down and we have to pay a person to. Pay for those those pumps from the sewage that went out we did receive a grant so hopefully this year that will be taken care of. But we've been paying a person to take care of sewage in open and waste and if I put to go down there we have to make sure that that's paid for so there's just been a lot of things that have happened in our city that we have had to I guess rob Peter to pay Paul and of course the fifties the fifty seven thousand that we've been paying back. That was a from a previous administration that was my mom's Administration mayor all items and that was because again the city did not have funds so she was taking from Peter to pay Paul. But that is what we're trying to do when I can you know look I think I've only been and what two years two or three years we were at a I don't know we were just in deficits all the way around so right now I think this is the only Fault that we've had. So we've been trying to do better as you have seen from our previous audits. And we're just trying to do what the best that we can what we have that's all I can say and right now as of this year this is the month of September and the city council and the recording and of course myself have not received payment but four months of payments so it's not like we're just. Taking money and then we're just saying to heck with everything else we're trying the best we can and that's all I can say is there some type of reprieve that we can have and maybe pay back half since of course you know that the money did not go. Into someone's pocket they went to paying city. Ventures but right now we're doing the best we can and of course I do understand the law that only a certain amount of moneys can can come from our police department however I do want to go on record to say that that is not our fault either our police department are wonderful for us they're wonderful Forrest City we we have really we just have a Mayberry we have. Really we do we have a Mayberry we we have officer rice and we also have to peel and they're wonderful for our community we can go to bed at night we can rise in the morning and we don't have to worry about it and I'm thankful for that and we deserve that we deserve to be able to go to bed at night and road in the morning and be in the same community and we have that I can call to fill and GPO will go to my mom if I'm at work and and make sure I think one time they hear what wasn't working or the heater was to hide he went to the house and fixed you know in turn the heater down for so we just have the kind of community and that's what we like and of course it's not our offices fault that if they stop someone they have fifty five warrants because sometimes that's what happens that's what happens in a small town there is a double S. curve and and we also have elderly people that on that main strip and they have to slow down because we have people that all walkers that walk across the street to go to their mailboxes and they're gonna have to slow down and if you've noticed in all records the police department have when they stop someone it is above ten miles per hour and they can not hit that double S. curve going fifty five miles per hour. They came in but is not a wise thing to do. Okay no questions from the committee. Representative right. Yes thank you Mr mail this morning though this fifty seven nine fifty three and six forty four. That was not money that came in for the street. It I'm not sure that that I think that fifty seven thousand that was money I think that was in and I can't like like there is fifty. In our state account numbers like about fifty four to fifty six thousand dollars in it now. So I'm sure that was money that was already there that that the CD at that time colleges used for other things in the city I'm not sure because that was. Beyond that that was before I came yes yes ma'am that money is restricted money yes Sir you know that's my that comes from sales taxes yes back to cities and counties to pay for roads yes Sir I just wonder boy that's kinda dangerous for use and that kind of money to to clear out other things yes Sir yes ma'am yes Sir it is a no and I'm not making light of that I'm not making lieu of that I'm not making a lot of that but at that time I'm sure I don't know what happened at that time but I'm sure it if if the city can operate there goes the streets. I'm I'm not again I'm not making light of that I'm not I'm not saying that that's not how it should be I'm just saying that. Right now we're paying the best we can and of course a couple of years ago that we were paying that is just only at the last couple years that we have not been able to really to to do that please yes yes ma'am but do you have a separate line item within your budget to actually place that money so they can be spent for strings. I mean it needs to be separated. Well it's not it doesn't come in separate it is that what you're what you're saying it doesn't it does not come to the city separated comes of the city in one check and comes in the county thank you when the county's county since of the check if the check is like maybe two hundred thirty four dollars and then maybe twenty four twenty three dollars of that does the street and then another two hundred or what have you those two the general fund. Is that what you're saying well yes well actually mail if the council is centered on increasing credit County yes Sir okay when they send the money back to you guys that should be. Portion out of what money actually came in for you guys to use for your street. Yes Sir yes please it really is thank you a representative right out thank you all were talking about property tax it comes from the council of the year term back funds come from the state and and they are separate is that right team and they should be sent yes they are represent love. Thank you Mr so ma'am I'm going to go to I guess what was in the Commons no that was the regards to the reconciliation do you all have a new process for reconciliation now yes we do when I came on I had no idea anyway we did not we I'll we hired a we hired a We had miss Holmes. And she is a certified accountant and she did all records for two years now and then that she will I went with her or went to her and she showed me exactly what to do when it's no big deal now okay I knew that so you'll have clean of the reconciliation issue yes we had reconciliations this past year okay all right and then the the next thing is is as far as the street on which and which has been notice several times you all and no longer in use in utilizing that money no it's just sitting there it is sitting there and and we we do you realize that it's for the story I mean it's no no we we don't deal with that at all okay it's there of that before we have about close to close to sixty thousand dollars in the account now okay but just as long as you nine you no no no no we're not using that and we do use that funds again it's with a story about like if to think those like those. The images from the we'll call over it so whatever that kind of thing because those water that a little cross the road that kind of stuff okay but now that's what I need is not sitting there thank you thank you Mr. Yes Sir. Yes Mr I have a question Hello should the issue that the following under the new law or they. You have to pay ten percent. Yes Sir but that starts the first of January I believe okay that we might talk to the sponsor of that bill yeah. It is so it does not apply to this in right not yet that's all ninety eight no it'll they have until the end of two thousand twenty two to pay the money back then they have to start the process where they pay ten percent of the general revenues okay or county for a lesser amount okay are you all aware of that. We were and we were going to what we were hoping that have that law passed we were hoping that maybe that law would not pass for that we can be some kind of reprieve for us or for small towns because like I said before some small towns one in a different category than your larger of major cities we we do I do understand the laws that you all. Make but sometimes for smaller cities it's not feasible for us and like I said we we deserve to deliver the peaceful town as well I do follow you resent fights you're recognized for a follow up of. Have you seen a drop in your revenue yes since the last census yes okay yes Sir I'm sorry yes of. Do you think you can continue and survive. Of with the continual loss in revenue in. Of. Well we had the again we had put in for grants it was to pay for our police officers. And again it's again it's one of those things that's the hit small towns the hardest we went I went into to do the grant and but we needed some type of number it was a different number than the dun's number they decide it is a different number and then you have to do everything online and then you have to the the number that we need we have to apply for that number and then we have to wait for that number again it's we now have that number but again it's it's things that are penalized again small towns and small communities so we went in to do that and then the money that we were that was going to that was paying our bar Sally's with with our our police officer that was going to be to pay for this but apparently that didn't that didn't happen so we're working right now since we do have that when that comes around again then we can apply for that grant so. Can do another follow up yes I'll be quick. You know you're you're in violation of amendment three how am I with taking the revenue the term back money for the streets and spending it elsewhere illegal extraction and you can be sued for that purpose right there. by any individual who decides to. file that lawsuit so getting all this corrected is of utmost importance of and that's all I have Mr and we do understand that we're not we're not just. Acting nonchalant about it we're not and we were paying it back it's just that things happen in our tale that we had to survive the sewage happens the situation we can't live what's running sewage in the streets and running sewage in our in our in our ditches so if the pumps are out then that's a major emergency and we had to get that done so it's not that we're just saying all to heck with it that's not what we're saying we're saying right now we just did not have the funds and we were trying to make something happen so that we would have the funds to pay then we couldn't do that either because they changed the system on how to apply for the grant so it's just it's just been one thing after another and then again to I work full time as a teacher so I'm doing what I can to win and I have the time to do it because the job requires a full time person but of course is less than a part time salary but we're doing the best we can on the best I can so That's all I have. Okay any other questions from committee. One thing that you said that perhaps I misunderstood or perhaps you misspoke you said you applied for a grant for the police in order to pay the street fund money back. Okay hi. You can't do that okay okay you misunderstood okay the money that we pay the police officers now the grant money is going to pay for them and then the money that we that we were allotted for the police department through our own moneys we're gonna go to help pay that okay so it was the one there and one that Irving's not shifting all right okay thank you you're welcome of no other questions committee ma'am your excuse and thank you for coming and helping us with this. No thank you. Procedure time. So are you all thinking about giving us some kind of a reprieve alleviation for kind of I don't know we're just doing the best we can so that's all I all right thank you you're welcome. What's plays a committee. Motion to file motions second any discussion in favor say aye opposed no motion carried. All right we'll be continue on page ten with the city of some of the years two thousand twenty one and two thousand twenty. In order to agree for agreed upon procedures report was not obtain for the water and sewer department as required by Arkansas Code fourteen to thirty four one nineteen a similar findings reported in a previous report dating back to two thousand seventeen mayor Toby Nordberg is here to answer questions. This is Page ten. Hello I'm mayor Toby Norberg. Early in my R. you're recognized to Present your reasons to this committee for being here today. And. The I just I was seriously this sincerely want to apologize this was just a mistake on my part not getting the audit pleaded so we have hired a at auditing firm Ballard and associates and they'll be completing our audits moving forward but it's just it was an oversight of mine. All right. Allen associates they better than the state. We were told we were under the impression that we had to get an outside firm to do it that was one of the things that. Okay okay this is just for the water service yes all right all right okay. All right any questions with the yes Sir co chair. Yes madam mayor how long have you been there I was elected in two thousand and fifteen okay so the question I have is this is like this a similar report dating back to two thousand seventeen know if that was just two thousand seventeen or it's been a failure do it every year and it was on the two thousand seventeen report and honestly when I talk to the person that was doing our audit it just kind of was like Hey you need to get this done but it was very like I didn't realize the. Import I like I I guess I just I don't know I couldn't even tell you why I mean I didn't even remember it being on there but I've went back and looked and it was absolutely on there so there is there's no excuse other than an oversight on my part yes ma'am it sounds like your hard to might as well be a problem of correct yes Sir thank you. Other questions the committee. Hi my thank you for coming and you're excused thank you. What's pleasure committee on this. Motion the second to File this report. Any discussion those in favor say aye. PostsNo motion carried. Okay the next report will review will be Phillips County beginning on page eleven. This will be for the year two thousand twenty. The county expended one thousand nine hundred dollars to an employee to prepare jail requisitions without an authorizing ordinance and parent conflict with Arkansas Code fourteen fourteen twelve oh two an Attorney General opinion two thousand eight dash fourteen a similar finding was issued the prior reports. Review of county expenditures reveal the following overpayments totaling two thousand seven hundred seventy seven dollars one thousand two hundred eight dollars for janitorial services contract nine hundred thirty five dollars for grounds maintenance contract six hundred thirty four dollars to quorum court members who were paid mileage for attending virtual meetings a similar finding it was issued in the proper report. Continuing on page twelve. Non payroll payroll and it expenditures of fifty nine thousand nine hundred seventy two dollars twelve thousand six hundred seventy one dollars and twelve thousand dollars respectively we're not posted in the general ledger or process through County claims in noncompliance with Arkansas Code similar findings issued the proper report we also noted that payroll related amounts were not added to the employees R. S. forms W. two. Okay continuing on page fourteen. Collectors tax cash receipts and disbursements journals did not contain your to date totals in noncompliance with Arkansas Code fourteen twenty five one thirteen a similar finding was noted in the previous three reports dating back to two thousand seventeen December bank reconciliation for the current tax account did not contain cash on hand the twenty thousand one hundred twenty five dollars an outstanding checks of forty eight thousand three hundred eighty two dollars in noncompliance with Arkansas Code fourteen to twenty five one thirteen a similar finding was noted in previous two reports dating back to two thousand seventeen. The balances remaining in that the circuit insured bond bank accounts of three thousand thirty five dollars and forty two thousand six hundred ten dollars respectively were not identified a similar finding was noted in the previous seven reports dating back to two thousand thirteen. County judge Clark call and sheriff tax collector Neil burger here to answer questions. Okay if you would for the record then fire sales and then judge you be recognized to mark off Phillips County judge. New coach the center button up share it is now okay Neuberger Phillips County sheriff and collect. A judge how you're recognized to the. Present your side of the story to this committee will will make explanations Mr chairman develop bear with me the first item on the report about the nineteen hundred dollars that is a case. And we're we were no raw. No doubt. Of after the fact but we uh. Had a we were in this process of building a jail and gestures complex. I had the financial institution my bonding company my bonding attorneys. The county attorney's was dealing with trying to get this paperwork completed in order to continue the process in which we had to begin with our bond services and. In the conversation they needed it done as soon as possible to continue and I told him I had no resources are people available to to the that I could turn loose to do it I had one person in my on my staff to have the the ability has the ability and the ability to complete their purple there's paperwork in a timely manner it in those conversations over the phone it was said well. They will be paid out of the bond money. So okay to the upgrade. All of us that we letter do the job after the after on weekends and at night to she can get it taken care of and get satisfy this the bonding company and a financial company that we partner money from and We paid her out of the bond. If it had been paid out of our my the county general we have been aware that we should have done it orders but I have I was hiring people on the recommendation of the bonding companies in the law and of and that bond and eternity I was hiring people right and left so it just it got bass and until it would call by auditors we had no idea that we had to do that so yes it has been corrected we don't have that problem anymore because now we have a staff on hand they can do the job so that has been resolved okay the second part of twelve hundred eight dollar janitor service contract which I'm responsible for reviewing and signing all contracts and I we had an agreement with a general contractor provide services for a couple of sites on it County property we had the agreement ten we send it down to the the to the the process and for the day a deputy Clerk. Indirectly. The bad it wrong. And I will say this our county attorney our county set up Clark huge pretty a of a glass on to these these these slip ups but chic this one got buyer and But we reviewed this with the a quorum court after this report came out it was discussed in the quorum court meetings to and in twenty twenty one when we had our open hearing and they declined to make any. If any for any further so there is where that happened the third part to nine hundred fifty three dollars ground maintenance the contract with this person starts from April to October. There was an event going on on a county park in. Blake February first to March and they was excessive. the the assessment was at the yard and garden that part need to be cleaned up mode taken care of before questions on usually a warm winter that time and we got a. It excess growth so we authorize him to go in there and and waited it mow it could it get it checked out for this event you're the county event going on. The pharmacist six hundred thirty four dollars quorum court members mileage I have no idea about that too I read I got it in the report. All right down down. Page road vehicle tax not all this money here we were we as it was internal checks written by the county treasurer. It never got back to the cook county Clerk it never got back is County Court it was claimed checks written internally and we didn't know about it until. We get an audit and we won't know about the next time until we get an audit when treasury when they have that ability to write checks like this internally and and send them off and so that that was done known to us till after the fact if the. For central Revenue Services debut twos that was a curve ball as soon the treasurer either didn't do it again Senate over proper forms to the county Clerk to process and we also send our doubt to an audit to the CPA to make sure we have our baby food and that creating an order and it would have the paperwork or the pin numbers was never sent to any of the agencies that would be responsible for cutting that day be two forms or filing those reports. that's what I have and that's we have corrected as much of it was we can. Very little we can do about the The pass through with the treasure because they have that authority to do what they want to and if they don't and I will leave you all with this thought Mr chairman and committee. I have been the county good Phillips County Arkansas for six years. I'm in my fifth county treasurer. I just had to remove one last week the court order. We're doing our due diligence to try to get our. The issue is in order. It takes cooperation. It takes people working together to make that happen. I pulled the trigger because you that was it in the best interest of this county. To do that nobody likes to go through what I had to go through the last three weeks removed when a person from office. So I can assure this committee. And the state of Arkansas. We're doing our due diligence to try to being in compliance with all the laws statues allowed by the state of Arkansas and required thank you Mr chairman. I'll take any questions should shall may have. All right questions from the committee representative right thank you Mr chairman. Judge Clark this money this six thirty four to a quorum court members who are paid mileage for attendance virtual meetings did they pay that back. Thank you same thing was that mature the. Commitment The six hundred thirty four no action was taken by the quorum court when it was presented at and at the review of the audit report on the that we normally we're required to have that we get to report. They declined to. That don't. Okay Represent love. Thank you Mr. Can and should not. Then we just put the six hundred and thirty four they got paid no there I guess it was a couple of members the gap paid I don't know how many members have had a. But we can put it back in their hands to actually take action on is that what we're is. We're saying like they had a how did this come about Mr look after. and I'm not being facetious here. But I have been elected for forty years this state. And I spent twenty years as a county mayor as the mayor. And I was a beloved mayor because that feet away I could hear what you're saying about me. Okay so what's the Ingraham your master's much as I respect your I cannot understand what you're telling me okay they are now maybe I can hear you now okay are we saying that we put the six hundred and thirty four dollars back in the hands of the quorum court the people that we paid the money for. Companies so we put it back in their response for the money and they do the budgeting and they declined we we discuss this sort of what the six hundred thirty four dollars the to my knowledge it was either held out. Later or it was but I have no documentation of what happened that this money until I didn't know it was existing of banning spent until I get this report. And I have not received any reply from anyone treasure are in a county Clerk telling me what has written there is. Resolution of this six hundred thirty four dollars but far as the public meetings at that at the core court review and they're responsible for the money they declined to take. Action on. Okay and most of it happened Mr love of represent love is the fact that the rest of mileage is paid in a one time a year at the end of the year is paid to whom ever is entitled to and I'm I'm going to assume and make I'm not I don't think it was a it was an intentional experience it was an error that hate it December got her November or December they just cut the check to they've been cut in MALOCH just for those who receive mileages so. Five or six of those members that some funds five did not okay. That was a said the city limits of Helena West Helena it was not eligible for travel. So it was six six so are out of post communities districts. Yes questions represent love. No I'm I'm going to hold for now okay all right of. share birthday you have anything you'd like to say. Yes I just wanted this up express what we of. Was rude that was reported against the the sheriff's office and the collector's office. In regards to the collective cash receipts and disbursements journal of. Those mine has been corrected and December's the disbursement journal use date has been completed and we're gonna continue to of state and and and that direction of going forward. And the bank reconciliation for the current tax did not contain cash on hand. Due to the fact that of the previous minister Administration. The money did not zero out and and for whatever reason we've been costly getting written up for this and that dated back to two thousand seventeen and this particular time we had checks that that may have gotten lost whatever that did not of come back charge back or whatever and that has caused us to of. To put us into the limited we can right now but they have of at this particular time of found some of those issues or whatever and we're going to try and see if we can get this thing zero we will have to get rid of for this again. And in regards to the sheriff's office with the circuit fees and and sure to bonds. However of. The service fees was actually end up deposited into the wrong account which. Reason why we got written up for not being able to identify that we have identified those issues were able to know exactly where the money is and due to the fact that we don't receive surety bond in a longer we don't have the account closed I will get a court order to buy a circuit judge and also the district judge based on identified it money and sending that money back where it needs to go. All right so you think you're in pretty good shape on get knowledge straightened out on your yes are we working on it okay I'll until unless we find something if that may you know that take us back but right now everything is looking good okay. Any further questions from the committee. A representative right. Thank you Mr chairman Sir that this on the second page is fifty nine thousand nine seventy two and twelve six seventy one. And twelve thousand was it paid to pay for without actually holding out the amount of money for income taxes. Who is that for me of the county judge. For the first K. judging it right right. The bill on page twelve. Yes despite toil. The second find a better judge I believe. All of us judge Clark you know like if you paid someone fifty nine and twelve and twelve thousand again it says here that it that the payroll related amounts were not added to the employees Internal Revenue Service forms for W. two what would that mean that is actually the one any income tax fatal there's for. Bardolino. Here. Thank you Mike on all I'm sorry I'm sorry I was trying to tell you elsewhere as far as we know the. I'm not sure. Mainly because. The shares were paid through without a claim we need to know about it to we get through here we've asked if they send a ten ninety nine. Until I read this at the end yeah I never picked up last week that it was a. It was not added to the Internal Revenue get a date change I didn't know I didn't realize it till last week when I read really read the report and what they. Of on this last last line so I can ensure that. Follow up please yes Sir. Judge. Everyone of those bills that come through you're responsible for those or I mean is that nomination bottle I'm only responsible for sending the ward. And I have to shoot down to the county Clerk and a treasurer and they don't do their their duty I don't know about it to auditor show up. Well that's a shame because you know judge you're responsible for all that it is it's. Or a lot of thank you Mister chair Mister a committee and I understand that but I can't be responsible until I found out the fat. The last judgment interrupt you second of please don't interrupt me to represent of rye was responding you please have back and forth respect each other and not interrupted or interrupt each other over and over again you understand. Okay. And and judge Clark I'm just saying this to you for your own welfare Sir that that's that's a shame a when they don't run that through the county judge because everything that goes through a county is supposed to go to the county judge for signatures absolutely right thank you Sir. Thank. Okay other questions. Seeing none from the Committee of. Sheriff and judge thank you all for coming today and we will look forward to you know get in this problem straightened out force Mr chairman yes thank you for having this but I will put that Committee on notice we will be back. For the next three years it was gonna take three more years. Getting this straightened out. But I will say this to the committee. I thank that going into next year. Phillips County is going to have our best quorum court. And the most reliable treasurer. Position that we've had. And. Cantor twelve years. So it is going to get it straight but to do that it takes awhile to get everything lined that. So but thank you for having us and have a good day. thank thank you enough for that could report on and then I wasn't gonna say anything about we know you're gonna be back but we'll be looking forward to it anyway thank you. Thank you Mr where's the committee. Motion to approve of and file and second those in favor say aye. Posebno motion carried. Okay the next report. The the town of cases that will be on page twenty six of the synopsis. The fifty years two thousand twenty one and two thousand twenty. Federal payroll taxes were not remitted to the Internal Revenue Service a similar finding was noted in a previous report. Recorder treasurer legal Donley is here to answer questions. The only if you would recognized introduce yourself to the committee in and you'll be recognized to present your report. I'm Leola Donnelly CD recorder treasurer of Steve case. And it. I don't really know what to say it was solemnly idea that I've actually been through about four mayors now within the five within about five years and. That just kind of got overseen I I didn't do it on purpose because that is not pay road tax the only employee so it was my pay road tax that didn't get put in it was taken out of my salary it just wasn't. Paideia. Okay you thank you got it right now and I've got to straighten out I'm sure you I won't be back. Yes Sir vice chair yes it was taking allocated it's just not sent to the R. S. yes Sir I took it out are now so be centered iris moving on I would states already so you. Okay other questions from committee. Based on thank you for coming down you. Pleasure committee. Follow report follows the second all favor say aye opposed no motion carry. Okay now I just wanna make sure there's no one else here to address findings from any other cities or counties we don't have anybody that signed the embers one make sure no one came okay all right we'll make our way back to the front synopsis of beginning on page one and page one thirty five we have the town of all port for the years two thousand twenty two thousand nineteen the committee has been deferring those reports for the last several months until there's some kind of conclusion in the in the in the courts we're just kind of seeking the pleasure of the committee if they would like to continue to differ. Without objection. Okay moving on to page six. The city of evening shade. The city of was the mayor was asked to be here because they had not hit our peak finding for not getting the agreed upon procedures report for the water system and the mayor Ali Haley provided us with an engagement letter for that agreed upon procedures report and so staff would recommend we would recommend following that report. Without objection. Okay moving on Page seven eight we have the city of Higginson for the year two thousand twenty one mayor Randall homes lane recorder treasurer Patty Holmes Lee the contacted us and requested deferral until October because they could not be here today. Okay without objection we'll pass over that one okay. All right Page eight ten horseshoe lake recorder treasurer Carole Adams called and she can't attend today because she had to be the funeral she requested a deferral until October. Okay without objection. Page none. The city of parking. Would recorder treasurer promedio Y. it was requested to be here but she is not here today staff would recommend deferring the report. Without objection. Movie on the page ten. Monroe County for the year two thousand twenty and The sheriff sheriff Michael Neal was invited to answer questions about the balance remaining the commissary account not being identified he is not here today staff would recommend we defer. Without objection. Page fifteen this is beginning the report certified to the the bomb board. This is Montgomery County the year two thousand twenty one. Sure surface cash receipts exceeded deposits by one thousand five hundred sixty dollars during the period January first two thousand twenty one through January tenth two thousand twenty two it appears receipts were altered to conceal unaccounted for funds the administrative assistant he was custodian of funds resigned on January tenth two thousand twenty two again this this report's going to the bomb board into the prosecuting attorney and since it was not a repeat finding no one was requested to be here today for this. And there'd be no waiting action on this or we just need to follow yep following the reporting a appropriate it's going with without objection will file this report. All right continue to report certified the bond board on page sixteen the town of Carthage for the years two thousand twenty two thousand nineteen in two thousand eighteen. There are review of council minutes we noted amounts owed to the city by the mayor who served in two thousand eighteen and recorder treasurer as well as lack of timely payments impossible negotiated payment reductions during the engagement city officials did not provide a reason for the amounts owed however during the exit conference the current mayor who took office in two thousand nineteen indicated the amounts were for payroll checks issued to the record treasures has been the council decided the former mayor should reimburse a portion of the amount due because he signed the checks documentation supporting the amounts due is not provided subsequent review payroll journals maintained by the recorder treasurer indicated the following the mayor owed in appears to have paid the city eleven hundred dollars however receipts issued to one thousand six hundred sixty dollars and only one thousand four hundred ten dollars is that was deposited Leding two hundred fifty dollars an account for. The court recorder treasurer Oden appears to have paid fourteen hundred dollars to the street fund however receipts issued total sixteen hundred fifty dollars and only eight hundred fifty dollars was deposited Leding eight hundred dollars an account for this city issue twenty one payroll checks totaling forty six hundred dollars to the record treasures husband from may two thousand seventeen through December two thousand eighteen for services performed without an authorizing ordinance an apparent conflict with Arkansas Code fourteen forty two one oh seven we noted additional issues with these payments of the twenty one checks only eleven were included on the financial reports presented to the council right to pay indicated on check stubs were not consistent time sheets were not always provided R. S. form W. two is not issue Furthermore it should be noted that the recorder treasurer was responsible for receiving and depositing your payments to the city as well as maintaining the payment journal. Again this is this is a finding going to the bond board in the prosecuting attorney. Is it was not repeat findings and no one was invited today. If there's no questions or objection this will be filed. All right continue on page a nineteen. With the city of Alpharetta mayor Veronica Smith contacted us have requested a deferral until the October meeting. Okay. Cochair yes I'm fine with the furnace soon put on the record that strongly suggests the mayor Pierre that October meeting to be held accountable for this for there may be action taken this committee is forced to listen to it if they're not here just wanna put on the record okay the mayor has been invited and will be invited because she has a repeat finding to respond to. Per the committee rules. Okay all right continue on page twenty two. Have the city of searching for the year two thousand twenty one. The mayor contracted with five police officers for security services totalling one thousand seven hundred twenty five dollars without authorizing ordinance an apparent conflict with Arkansas Code fourteen forty two one oh seven. Again this is a finding one the PA it was not a written P. finding so no one was invited. Okay questions from the committee. Without objection will file this report. Okay can tenure on page twenty three. Five. The town of Alpena FOR the years two thousand twenty one two thousand twenty two thousand nineteen the following areas of noncompliance were noted in the town special events account adequate supporting documentation was not maintained for all disbursements as required by law Arkansas Code remember checks were not issued for all disbursements as required by Arkansas Code the town paid a total of six hundred seventy one dollars for food service school events an apparent conflict with Arkansas constitutional article twelve section five as interpreted by Attorney General opinion number ninety one fourteen. Thank. This again this body is going to the PA and was not repeat so no one was invited. Without objection will file this report. We have the city of harmful on page twenty four it's similar to tell about peanut. this is for the years two thousand twenty one two thousand twenty two thousand nineteen the city paid eight hundred twelve dollars to business owned by an employee with an authorizing ordinance the parent conflict with Arkansas Code fourteen forty two one oh seven. Any questions. Without objection to be filed. Have the city of Joyner beginning on page twenty five. Mayor C. C. Wynford Ross and recorder treasurer Joe see vast quiz requested deferral until the October meeting because they could not be here today without objection. Okay on page twenty six. The city of Whitaker village for the years two thousand twenty one twenty and nineteen recorder treasurer Michelle Robbins called and she couldn't be here today because of health issues staff would recommend deferring the report. Without objection. Page twenty eight we have the the Morrilton wastewater utility and this is in the river section of the reports with findings no responses. In the last couple days we received a response on their their audit their deposits are now being collateralized staff would recommend following the report. Without objection. Next is Wilburn water association for the year two thousand twenty one and there is a finding less than their in the last yesterday we received an email from the CPA firm who did the report and they issued a new report in response to this finding was an error on their part and the debt reserve account is now funded staff would recommend filing the report without objection. Capsaicin is CPA made a mistake. Everyone saw. All right beginning on page twenty eight through thirty we have seven reports was responses if there are no questions staff would recommend following those reports. And give me just a minute look Adam. So if anybody has any objections. Hearing none. Without objection they'll be filed. Okay on pages thirty one through thirty to their fifty six reports with no findings staff recommend following these reports. Without objection. Mister chair that concludes the review reports. All right of before we go on to the next item on the agenda representative fight. Of thank you might be interested in one of the proposals that have been floating around you don't know if it can be done or not but at the next session we're seriously considering asking for a special prosecutor to do this if we can get all the legalities worked out and I think of Senator call will is kind of been the leading force on that I just thought maybe you'd like to know. And I've tried my best not to call you Charlene again. Okay are there any other questions to come before this committee yes Sir general thank you Mr chairman in in references Searcy county judge resigned from office pending actually during the His hearing to having removed by the of prosecutor but we deferred the last report to the prosecuting coordinator's office so want to make sure that even though the the judge has resigned from his position we're still moving forward for any potential illegal activities as the county judge is that correct. It's my understanding we filed the Searcy counterpart in the June meeting I believe it was now was it it we may have been referred to the the prosecutor corner situation but as far as the we have not it's not showing up or deferred list it so there is a report every year of all the reports that are referred to the prosecutor and so there should be a follow up at that time I think that report happens in the rough needs in the fall sometime because I know the Searcy County prosecutor recused herself from a so we referred it to the prosecutor coordinator's office I just wanna make sure even though he is resigned from office that that is still being handled by the prosecuting coordinator should be as far as we know okay. All of. It was speeding. Good deal thank you thank you Mr. And that prosecutors coordinating office was about the only. Avenue we had to do something when the prosecutor recused or didn't do anything. Anything else go with committee. Hey none next to me may not be held on October thirty thirteenth and thank you all for coming the meeting is adjourned.