Legislative Joint Auditing – Counties and Municipalities

Sure we have a second all is favour say aye any opposed the minutes are adopted thanks go to engine I'm see discussion of non compliance with municipal accounting wall of the city of Cobb. Thank you Mr chair gonna walk through a time line that The committee has a. Been working through substantial noncompliance with the city of Cotton Plant. On January seventh the full committee based on recommendation from the standing committee gave approval to implement the process for substantial noncompliance with the missile counting low for the city Cotton Plant and then on a January fifteenth the mayor receive the official notification of that process so the city had sixty days from that point to comply with the municipal council law before consideration of withholding of term back. And so the sixty days ended on March sixteenth two thousand twenty two on April seventh this committee so and receive word that the city was still noncompliance in the committee chose to wait until may. And then in the may meeting receive word again that the city was still non compliance and they chose to wait again until June because staff had begun the two thousand twenty one engagement. On June second this staff report the city was still noncompliance in this committee voted to recommend to the full committee to place fifty percent sees term back in escrow in the next date June third the full committee gave approval to do that. On June eighth the mayor receive notification that fifty percent of term back was an escrow and the next sixty days ended on August seventh about a week and a half ago. So today S. as of today the cities and still sit still in substantial noncompliance we have noted some improvements but this is the point where you can consider placing one hundred percent of the their term back and asked escrow and just a note for this committee the next sixty days will end after the October meeting and because we don't have a November meeting the city would have until December to comply before this committee would consider having they're turning back redistributed to the other cities so that the city complies before that time they will receive all the term back that has been placed in escrow. Thank you any questions committee. President there you're recognized thank you Mr chairman so when you say that there's been we're seeing some progress is significant progress towards compliance or. What we're seeing in is a they have some of the bank reconciliations completed for two thousand twenty two but they don't have their receipts and disbursements records up to date and so that's one thing we really would like to see. Thank you Mr. Here's the issue. Blake is mentioned we won't really have another chance hold him accountable until after the sixty days past impasse October meeting so if we don't take action today to withhold a under percent they're turning back then the next time to really be held accountable by this committee will be in December and that'll be kind of a drop dead date or whether they're going to get those funds are not they have shown some improvement but staff also said they are still severely out of non compliance. My personal opinion is if we don't take the next step on them that may get in the Laxalt. And not complete the compliance that were in as he said all the funds including the fifty percent they have now we're going to an escrow account and if they reach compliance then they will get those funds back. So. With that understanding I'm open to making the motion to hold back a harborcenter turnback funds to be placed escrow account and then come back in December decide whether they're in compliance for a measure we could at that time see if they made significant steps we could release that money to on I'm nervous about not doing anything because if not there's no incentive for them to complete that before December and that's a lot of months without us having any kind of influence or say over that process with that I so long saying allow the committee to ask you questions prior to to do that representative Ryan Reserve Gonzalez yes. If we if we don't do this of miss chair it's it's running off palace up because. If we go along with what you're stating then they're going to try to get their self in a good condition by that Poland would you not say that from I can't predict how people from acting future what we have the information we have today is they're severely out of noncompliance but they have made some efforts not substantial but some efforts to improve that is that accurate statement. Yes I would be acted. Resent Gonzales. Mr how much money are we talking about in their term by funds the may have said that already but I. Let us check on this and I'll get an answer for you I don't know don't talk about it either. I don't know certainly that make up my mind of. From four fold it but I'm just curious thank you get back to me later. There you have a question comment notice Mister chairman I have a motion when appropriate time anymore questions committee. See non representative burial entertain your motion thank you Mr chairman to make a motion that we withhold a hundred percent of the term back fines for the city of Cotton Plant we have a second. I'll second that any discuss your committee seeing none all in favor say aye. Any opposed the motion is carried. Moving on to the agenda The review of reports. Okay thank you Mr chair. We what we'll do is we'll review reports we have visitors here today so we'll begin with the town of rondo and it's on page nine. Of the synopsis you have in front of you. For the town of rondo for the year two thousand twenty unallowable disbursements were paid from revenues restricted for street purposes one thousand five hundred thirty three dollars and non compliance with Arkansas Code twenty seven seventy two oh seven also restricted funds of twenty thousand eight hundred forty eight dollars noted in previous years or not transfer resulting in a total of twenty two thousand three hundred eighty one dollars due from the general fund to the street Fund in noncompliance of Arkansas Code fourteen fifty nine one of four a similar finding was issued in the previous seven reports dating back to two thousand eight recorder treasurer Michelle Holden is here to answer questions miss holding if you can please come to the end of the table. Right there yes ma'am. How you doing today. Good news go ahead take a seat. What were not that formal here. If you can ma'am press a button and say your name and title for the record and any comments you may have about this finding. My name is Michelle Holden with this town around do you have any comments about these findings. Yes Sir thank represent Clowney. Actually I came today to. It's a within what the city council came up and what we will try to do to of a candidate to fix the issues that was found I guess I'll way back to two thousand eight and also the fifteen hundred we actually move on August the eight from mystery five back to from the agenda from history from the fifteen thirty three it was moved back into the right account and also the twenty thousand the issue that they have with that well when we first had the idea when I came on the two thousand nineteen the first audit in twenty twenty. The members get get around understanding it was told that money that we have to pay back to the you know was not out of money but then the last audit it was saying it was actually the money that was given to the town of rondo but put into the account that wasn't put into the right account so basically what we did on August eighth two to two thousand twenty two we moved five thousand dollars that twenty thousand back into the office after the county is supposed to go into. The mayor of did make the city council we had that since this is the last all year. She can make a known to track to do her best to have the whole told a twenty thousand dollar paid out before the end of the year. When and where come in wherever the new mayor will be. Yes ma'am thank you any questions committee. So it seems like. Your just took action to remedy that fifteen thirty three from moving from a general fund to to the street funds you took an additional five thousand at a general put street so you're you're paying toward that street fund roughly fifteen thousand left over from this audit reports that a good assessment that is correct Sir and the reason why I think the city council did not take action on it because they understand and they don't even know where the money went in basically what we was told the money was in the. Account of ours when the wrong account in it never had been moved okay yes ma'am and so like to take remedy any questions committee. C. N. nine without objection will follow support thanks for coming day ma'am thank you. Moving on. Okay next we will Look at Madison County is on page eighteen. Your summer. And this is a report that has been referred to the prosecutor. Messing county for the year two thousand twenty the county paid six thousand six hundred fifteen dollars to the spouse of the county collector for janitorial services with an authorizing ordinance as required by Arkansas Code fourteen fourteen twelve oh two a similar finding was issued in the proper port county judge Frank weaver is here to answer questions. Judge if you can please say your name and title for the record and any comments you may have for these on the spot. Thank you Mr chairman name is Frank we run them kermis in county judge in managing the findings there in February of twenty twenty we went out for bid for a custodial services in the county courthouse we have received three ms and I accepted the lowest bid at that time which turned out to be the county collectors has been and this is our site on my part hi thinking that she was in his boss I would actually be as follows that and really see the conflict of interest however in this year's audit that was not the twenty twenty year lake on a lady came and said you should have gotten a quorum court's approval of that with an ordinance so we did a pass an ordinance percent two Arkansas Code noted fourteen fourteen twelve will to take care of that. Okay any questions committee. So you pass the ordinance right now you should be in compliance with this law is that correct that's correct okay any questions. See now without objection we will follow Report thank come they County thank you yes Sir. We don't export. Okay we'll take a look at the city of Benton it's on page twenty four of your synopsis. The city man for the year two thousand twenty one District Court was unable to identify two hundred three thousand four hundred forty four dollars remaining in the bank account with the receipts issued for cases not yet adjudicated and payments made on all and paid individual time accounts is required by Arkansas Code sixteen ten two oh nine a similar finding was noted in the previous two reports District Court Clerk Leah Redmon is here to answer questions. It's running if you can please say your name and title for the record and any comments you may have on this funding yes Sir my name is Leah Redmen I'm the chief Clerk of the court Department since the the finding I have worked with our programmer we use the data management program called fellow which is an older program that is having was having issues disbursing the money at throughout the end of the month we've developed a query to identify these that part disbursing properly at the end of the month so we've been able to identify the cases that have money attach that are disbursing and hope to by the end of this year December so far we've identified about a hundred thirty thousand accurately working with my auditor Kristin us making Baker who is gone over the query and I look at it with me to make sure she was you know that it with the query is in compliance with accurately disbursing these funds so that we can write checks to the appropriate funds to remove this money from the books. Yes ma'am any questions committee. I know we've had other discourse nears had issues with the state program I noticed in your findings you're with that you're waiting for new development is that part of the issue that is causing the finding in this what will we were we were hoping to be on context by this time and you know we're kind of in the hopper for context for a couple years now and they see sense terminated that program and you know is working on a new system so since that obviously you know we need to when that will happen we don't know so you know we've got with our program or to expedite trying to fix this before a new system gets in place yes ma'am representative you're recognized. Thank you Mr hello it's been been waiting to get on the state program we formally requested at twenty twenty Jett the interim judge Josh Newton at propose the letter to the IOC and so formally since then. Mr I'd like to point out that that has been a problem that we've seen the several the district court's not being able to get on contact. I would I would note that as well that's why I brought it up it seems to be a systematic issue and I know we're getting new program come along it's hard to be in compliance with the law whenever you have those kind and data software issue so very have much much grace toward that issue the question is there any other questions committee. C. nine without objection will favour port thank you ma'am thank you moving on to next. Okay the next report will review will be the town of Edmundson is on page twenty five of your synopsis. The cannabis Edmundson for the year two thousand twenty one the governing body did not review the proper report and accompanying comments at the first regularly scheduled a meeting following receipt of the report noncompliance with Arkansas Code ten four four eighteen a sum similar findings noted in a previous report. The following issues were noted Walt Review federal records salaries and wages reported on our is quarterly form nine forty one were less than those reported on IRS form W. three in the amount of nine thousand five hundred forty dollars so security rates were not applied to salaries correct correctly due to reporting and rate issues noted it appears federal taxes one thousand three hundred fifty one dollars were not properly withheld and remitted to the R. S. in addition total taxes due the R. S. for prior year under payments of one thousand five hundred fifty four dollars also we're not paid leaving a total balance due of two thousand nine hundred five dollars the recorder treasurer salary appears to be under reported on ours form W. two by three hundred seven dollars. In Arkansas a R. three report along with state taxes owed of six hundred seven dollars or not remitted to the state a similar finding was noted in the previous report there are a using and recorder treasurer Hayward Shaw junior are here to answer questions if you can please come to the table state your name and title for our for the record please. mayor. Hey what shall. Do your job I have comments about these findings. Well if the findings about the taxes and stuff of due to our software and what we have done we have replaced the old software with a new face of software that will pick out the right amount of taxes that's what I thought that was the problem with taxes were. And The part about the audit but the audit to the state of I mean they just send the money they don't did feel free to tell us that it with the. Follows the attack for this regular municipal a. So I had a road. Brought to the state the C. could they sent us a. A guy something like a a letter on each of the uses the phone like a blanket they would tell you the amount of money that will of the field tech another minutes of a we have been getting those late. That's all I have for about the taxes. And the the sales tax. The part about the. About the. The meeting. What we've done from that point forward whenever we get anything of talking about the idea we bring it up and then the very next meeting we don't. It's counted that very that's what it will they we get it the next meeting what is the. Next week the next day we within than without it fine. And see what is this yeah I read also my stuff like any moment. Yes Sir any questions committee. I got one so I mean I'm happy I got some new software to make sure that your. Know what you open for that that's a good step I guess the issue is is that from my reading of this used to both the federal and state government taxes has there been any action to pay you those whether it's a six oh seven government to the state as you may know the iris to get eighty seven thousand two. Agents so you might wanna be in compliance as soon as possible well I have already ruled the area if I sent them a copy because the and exactly they owed a refund from twenty twenty and what I try the to do with the. Get though that the get the on the take a refund for the amount of money that we owed and send us the difference and I got a little right to what he sent me that he was checking on. Right now yeah I hated respite I did the same thing for the state as well yes okay what's the state saying about the I haven't re getting a response okay. Any questions committee representative for a thank you Mr chairman sure the only thing that really stuck out was two or three of them but one thing that stuck out pretty good was the R. S. quarterly nine forty one forms were lesson reported to the IRS is there a reason for that you sent it was the it was our fault what we had a whole phone where it was and it wasn't taken out enough taxes. To the right within the taxes then what happens is that we have replaced it with a new red wing of software and right now everything is up to par the taking up more taxes that a. The pay roll then the mayor then I'll all the meticulous and taking out though the problem with the. We have had for a long time and with an update the home should have. Anymore questions committee. Yeah I follow through on. Find out what you owe in trying to remit at because this is a repeat finding in typically eventually them the IRS and state agencies will catch up to you if you don't get that worked out but see no more questions committee all without any objection we with all the support thank you Jennifer coming day all right thank you. The next report with the town of pilot on page twenty six of the synopsis. This is for the years two thousand twenty two thousand nineteen two thousand eighteen. Bank your bank reconciliations were not approved by a municipal official or employee other than the person preparing the reconciliation in noncompliance Arkansas Code fourteen fifty nine one away the similar findings noted in the previous two reports dating back to two thousand twelve. We noted the following noncompliance with Arkansas Code fourteen fifty eight two oh two in two oh three general fund disbursements exceeded budgeted appropriations in two thousand twenty and two thousand nineteen by nine thousand one hundred fifty two dollars and thirty thousand three hundred eighty dollars respectively. St fund disbursements exceeded budget appropriations in two thousand twenty by eighteen thousand four hundred sixty six dollars the two thousand eighteen general fund history from budgets were adopted however copy was not provided similar funding was noted in the previous six reports dating back to two thousand three. Continued on page twenty seven. The fixed asset listing was provided however the listing did not include major categories proper control totals additions serial numbers and date of acquisition in noncompliance with Arkansas Code fourteen fifty nine one oh seven a similar findings noting the previous six reports dating back to two thousand three. The following issues were noted while reviewing the town's payroll process payroll records are is quarterly nine forty one forms in Arkansas Department finance and administration for my R. three we're not provided for two thousand twenty two thousand nineteen and two thousand eighteen and IRS forms W. two and W. three were not provided for two thousand nineteen two thousand eighteen in noncompliance with Arkansas Code fourteen fifty nine one fourteen budgets were not sufficiently detailed in two thousand twenty two thousand nineteen two thousand eighteen to determine the total salaries paid to payroll to prepare will properly authorized the town was assessed and pay penalties and interest of one hundred twenty dollars and seven or nineteen dollars respectively in two thousand twenty and two thousand nineteen for failure to file and pay payroll taxes for two thousand seventeen. The town is not remitted payroll taxes to the IRS and the FAA for two thousand twenty two thousand nineteen in two thousand eighteen documentation was not provided we were unable to determine any penalties and interest that may be due as a result for DFA the town has not remitted payroll tax forms and withholding since two thousand six the similar findings noted in the previous three reports dating back to two thousand nine. Thank you continuing sorry one one more. Top of page twenty eight disbursements for and not always made by free number checked in an electronic disbursements were made without proper proper approval from the governing body as required by Arkansas Code similar findings noted in a previous report. mayor Ken Hancock and recorder treasurer Kim Sullivan there are here to answer questions thank you can you please take your name and title for the record and any comments you may have on these functions can Sullivan recorder treasurer. You can press a button sir I think there's a button Turrell can't think of their thank you any comments about these findings yes I am we have a new council member now that's going to help me it's got a strong financial background to help me get together he's dealing with that is just an. IRS in the state figure out what we need to do to get everything caught at I never have proper training in getting this job inside failed in a lot of ways and so he's supposed to really I mean I had died a couple years ago honor council we thought we had that. Inventory list like we were supposed to and then I found out that was wrong so we've got a and a lot of work to work on but I got a man helping me now so I feel a lot better. Comments. Are any questions committee. representative berry thank you Mr chairman so the the problems that you're experiencing they've been going back for like twenty years. We are you know all the back to two thousand and three reprieve the findings two thousand nine two thousand six and it doesn't seem like anything's being corrected it have you ask for some help in the mid Municipal League or have a. I think we've got a problem has a little bit for the misspelling the council members and I've always asked them and I've just not gotten much help on it but I've got a good one now man is willing to willing to work and help yes so the legacy is been going on for about twenty years I think you really need to look close at what are you doing this. Being done wrong right so and also the question about the your loan from our best yes you refinance the loan at so you're not making any headway because you refinanced more than what the long was it well I think that there was it was on a short term no for some reason because we have thank. And they did on a short term note for a little bit and then I had to set up on payments it's on payments now and it's paying down. I would encourage you to reach out to Municipal League seek the they can provide any assistance and to get in on the right track we don't have these right repeat findings is the challenge for us a lot of times we people are going to make mistakes but the repeated mistakes is what's really hard for us to accept and I'm not yes and I'm guilty of the repeated mistakes because well pass a little town so they can't pay somebody full time and I work a full time job and try to do that so I mean I take the responsibility for. Thank you thank you Mr. President roh yesterday thank you Mr chairman ma'am these three years in particular twenty nineteen and nineteen it what have you done to clear this up with the the federal government do you know the state to ours it just is it just R. S. I think it's just a R. S. but I got that guy working for me yeah he's Collins at nine twenty three and what we gotta do to get it. Get caught up in straight what have you done anything to find out what your Coleman make an attempt to to pay them that's what that council members working on it for me would shall the amount that you guys have went to the bank and barges actually the amount of moneys you chill need to place the story years all that long did you say well this is twenty and nineteen and nineteen payroll taxes I thank you so much that loan well I don't know it did you have you mentioned alone but if you don't allow us for something else the war yes what was the what what or what we're going to let this payroll tax our is well that's what he's getting find out what we got to get done now the right thing filled out paying them back and paying them okay yeah. So I. S. staff how much money how much money you'll receive from various state term back and everything like that. Is not that much I can't remember off hand having thing with nineteen thousand eight hundred eighteen or I read for the year probably and maybe three thousand and and. Sixteenth street seven the state goes to the state the street department yes ma'am. Well I guess I mean most time small towns generate their own revenue because you know you we have a water department yes ma'am that generate some mass there's not much there I'm not insulting the city council member that you're getting help you I don't know them but I would suggest you seek professional. Tax preparer help on this kind of issue and I know what size stance amount of money that you have but if I was you to get compliance I would hire for. Somebody who who does this full time and pay them to fix this because this problem is start to snowball on you all and we do have somebody that works for our water department she's a separate from the city and she is a CPA so we can get her to help us I would do it through the proper channels talked audit how you do the contract and to the you know ordinance but if I was you I would highly suggest allowing a council member not insulting them I don't know them I would do this that would cause you got a lot of stuff going to here and a lot of taxes owed if you don't start doing it your means a serious trouble in the near future understood yes so we have to past ordinance to hire. Generally there's a process that you have to follow in order to do business in all this Municipal League in our own alters pride tell you generally how that works I do not know because I don't want a city but there's a process you have to follow do that to make sure you can use the revenue whether general budget otherwise to a seek outside help we've had other cities coming here say they've hired CPA fees or accounting firms to help them through I would suggest looking at Sears okay we can get her to help us okay any questions from committee. See now without objection will follow support thank you thank you. Okay the next report will look at is the city of Tuckerman on page. Twenty nine. Thanks. Twenty eight sorry placed by Andres twenty eight. Two thousand twenty one a general fund disbursement succeeded purposes but to our forty five thousand dollars in noncompliance with Arkansas Code a similar finding was noted in the previous two reports Mirek Womack is here to answer questions Mary can't please state your name and title for the record any comments you may have on the phone. Ninety three Womack my name's Rick. My name's recall mac mayor Tuckerman All I can say is we probably just overlook some things for is trying to get everything straightened out we thought we had it all straightened up until this auditor we had come in. The. I don't guess we did. And I've got by city Clerk with me to I'm Vicki Adams to sit city Clerk we paid off a few loans and failed to include that in since the budget has been amended and it's all. Been taking care of. Okay did did the. Is it excess money that you had that was a lot of budget because we over the momentum it was hello it is money that we received it I failed to included in and then we paid off some loans and that's where it come in at okay. Rittereiser question Do. President of right here yes ma'am the the money that you're speaking of forty that come from that was that first round a committee COVID committee that we received. It was like a hundred and seventy four thousand. In the. I didn't amend the budget to include it. US I just. Senator traded I just wonder if that's lawful. Well that kind of money to that that first round we could do that with it. Yes we we kinda had discussed before there's the state of Arkansas has very little control over how that money spent there's got and from the federal government a single directly aiming to smile but that's a significant amount of money for town seventeen hundred people. For happy so would you pay to use it and okay he the first one seventy five thousand thirty five thousand okay and the council approved for us to use it to pay loans off and that and then we got married committee about two vehicles and that when added in in I didn't amended F. at that point yes ma'am so the money it was just magic matter of changing your route everything for them and since then it has been amended and added in and the next time we have a world ending pandemic in your tens of thousands of dollars you'll notice changes that I will do that now. No no your questions from committee. R. C. nine without objections reports filed thank you thank you. Okay at this point I would like to ask if there's any more people from cities to that are have been invited to answer questions this is the so far this is all we've had that signed in I just wanna make sure there's no one else here. In a note here staff said that some cities we ask to be here because we were told that just last week an awfully special session moved that someone couldn't be here I think because of the quick turnaround I make sense why some people couldn't be here. Okay we'll make our way to the beginning of the synopsis and we will work our way through now so on page one through actually page four we have the two reports for the town of all for the committee has been deferring these reports until this matter with all port has been settled in the courts and so we'd like to know the will of committee on all court without objection I say we to further support to next committee meeting. Okay all right moving on the town of gum springs on pages five through six. the recorder treasurer was responsible for the repeat findings and she has since resigned since last committee so would staff would recommend that we filed this report. Was there this is referred to prosecutors there any no illegal activity or just if the fixed asset listing wasn't proper and they had some state funds for highway that are deposited into the street okay okay any objection for following support if the notice reports filed. Okay next is the telephone free. On page seven. This is a very similar situation recorder treasurer Kimberly Burgess the has resigned since the last meeting and she had a couple of findings with some R. S. issues and a city councilman is not being maintained staff would recommend we file the objection this report file. Okay tell Jericho on the face of aids on page eighteen of the recorder treasurer lane depreciate contacted us letting us know she couldn't be here and she requested a deferral until the September meeting what objection refers report to the next meeting. Town of parking on page nine. Order treasurer for native wine also contacted us and she couldn't be here today either and she requested a deferral until September the father port next meeting without objection. All right in the next report isn't Monroe County on page ten. we didn't hear from the share. So the staff would recommend that we to further for further reporting next meeting without objection. Okay in the next report is Phillips County on pages ten through thirteen we heard from the county judge he couldn't be here today because of the change of dates and hits thanks previously scheduled and the sheriff and tax collector couldn't be here because he is speaking at a funeral today staff would recommend we defer the report without objection to for fourteen next. Page fourteen we have an investigative reporter for the Lake Village water and sewer department and staff member Jimmy lock is here today to give a report. To me whenever you're ready. Thank you Mr. The prosecuting attorney for the tenth judicial district. Received some allegations concerning the Lake Village water department there was a possibility that some money was missing so he asked to look at it. I like the period February first two thousand nineteen through January thirty first of two thousand twenty one. During that time to shine the Freeman with the county Clerk and she was responsible for collecting receding depositing the funds as well as posting customer water bill payments in the computer system. So I compared receipts that ms Freeman issued with deposit you made in the bank and found nine thousand three hundred sixty three dollars and unaccounted for funds that consisted primarily of cash receipts that she had failed to deposit. I also found where a lot of these receipts were subsequently refers to in the computer system and then documented the undocumented adjustments were posted to customer accounts in an apparent attempt to conceal the unaccounted for funds. So within nine thousand three hundred sixty three dollars missing also check to see if they were getting financial audits each year as required by state law. They had audits for two thousand sixteen seventeen and eighteen with no problems noted. But according to the CPA firm that does their audits they had trouble getting records for the two thousand nineteen out it so the audit was completed but it wouldn't completed timely also during the two thousand nineteen out it they found the same problems that I found the receipt reversals in the and apos defines. we identified several internal control deficiencies the main one that the person that. Collects money and issues receipts shouldn't have the ability to reverse receipts and post adjustments the customer counts and in this case that was happening so basically the county Clerk at too much control so we made some recommendations and according to the city they've made some changes and those deficiencies have been corrected. And one last thing I review focus strictly on the water department that's what the prosecutor ask us to look at that's what we did. But what I was going to the records I noticed that there were some other city receipts that have been reversed by ms Freeman there were some general fund receipts impart find receipts issued reversed. So I notified the city's finance finance director and the city conducted a review and they found six thousand one hundred fifteen dollars in other city receipts that were not deposited. And we didn't confirm or verify their findings but we included in our report so that the prosecutor would be aware at. I miss Freeman resigned in March of two thousand twenty one and of course I report was referred to the prosecutor and March fifteenth two thousand twenty two theft of property and computer fraud charges were filed against ms Freeman. And it took a while it's my understand if you don't live in Lake Village anymore it I think it took a while to finder but they eventually located here and serve the warrant and I check the status earlier this week and a plea and arraignment hearing is scheduled for this coming Monday August twenty second so the legal process is started on it and that concludes my report any questions committee. Excellent work is always great whenever we're able to step in and find somebody stealing money like that and more importantly restoring that trust great work by authors just wanna give them a give me a great shot on that one moving on to next report. Okay this is a another report referred to the bomb board just like Lake Village one answer was the city we in the year two thousand twenty one on page fifteen. We noted twenty five thousand nine hundred sixty eight dollars and District Court cash receipts not deposited twenty four thousand one hundred sixty eight dollars receipts could not be traced to deposits for the period January first two thousand twenty one through July thirtieth two thousand twenty one deposits on June twenty ninth and July twenty nine two thousand one contained five hundred dollars and under CD credit card payments and one thousand three hundred dollars an undersea checks respectively in place of cash receipts. The twelve deposits made on July twenty ninth and you and thirtieth of two thousand twenty one six were missing all or some cash it should have been deposited during July two thousand twenty one cash collections for three day deposits were not deposited in several deposits were apparently altered prior to the deposits being made. Receipts were not always deposited intact day in noncompliance with Arkansas Code in several deposits were held in excess of thirty days on this is just there's no one here this is the sports being it'll go to the bottom board into the prosecuting attorney. Thank you any questions. It looks like there may be some there so we'll see what happens that legally without objectionable files reports. Okay moving on to page sixteen to the city of bull shoals this is a report is being referred to the prosecutor's well this is for the year two thousand twenty the city paid a total of ten thousand one dollars to operate a shop with a cop program two thousand dollars in two thousand twenty one five thousand five hundred forty three two thousand twenty two thousand three hundred fifty eight in two thousand nineteen and one hundred dollars in two thousand eighteen these payments conflict with the purpose doctrine and the Arkansas constitution article twelve section five as interpreted by Attorney General opinion ninety one fourteen although the city received private donations to fund these purchases we were unable to determine which donations or for the shop with a cop program because documentation is not available for all donations and expenditures were recorded multiple accounts it should be noted that all funds are spent two thousand twenty one in the program is now being administered by the fire department auxiliary. That all yes that's and you tell me which. Which exact finding was given to the prosecutor tourney was was kind of it's at the top of the page on this shall become program right it it's because the money was used for basically non public purpose okay any questions committee. CNN with objectionable false report. All right. Continuing on page nineteen. We have the city of actions for the year two thousand twenty one in two thousand twenty. The city paid expenses of nine hundred ninety four dollars one thousand four hundred ninety one dollars and four hundred ninety seven dollars in two thousand twenty one two thousand twenty and two thousand nineteen respectively for an employee's family health insurance benefits and failed to collect the premiums from employed in conflict with our Arkansas constitution article twelve section five which states in part no county city town or other municipal corporation shall limits credit team corporation association institution or individual when this matter was brought to the attention of the employee on may not two thousand twenty two the employee reimbursed the city the full amount this is a finding that by law we have to send to the prosecuting attorney and the the employee reimburse the city for these amounts. Okay any questions mitie. See non without objection will fall this report. All right continued by the page the city of evening shade. Four years two thousand twenty and two thousand nineteen. The city paid four hundred twenty dollars and eight hundred forty dollars in excess of appropriate salary to the recorder treasurer in two thousand twenty and two thousand nineteen respectively in noncompliance with Arkansas Code fourteen forty two one twenty additionally salary of one thousand one hundred thirty dollars and one thousand six hundred forty five dollars Page the recorder treasure was not reported on IRS form W. two and two thousand twenty and two thousand nineteen respectively continuing on page twenty. The city paid four thousand eight hundred dollars to the recorder treasures husband who also serves as a part time police department employee for the purchase of two thousand three Tahoe patrol vehicle without an authorizing ordinance and non compliance the Arkansas Code fourteen forty two one oh seven at the bottom of the page the city has not obtained an annual agreed upon procedures and compilation report the city's water system in noncompliance with Arkansas Code a similar finding was noted in the previous report mayor Lani Haley was invited to be here and is as far as we know he didn't make it today the staff would recommend we to further for that objection order first report to the next meeting. Okay continuing on page twenty one with the city of Higginson this is these reporters continue with reports are referred to the prosecuting attorney. The city paid a total of two thousand twenty eight dollars to the mayor and council member for the role is sewer operators for the city based on Arkansas Code fourteen forty two one oh seven and turning general opinion two thousand three that's one sixty four weakens questioned the propriety of the dual roles filled by these individuals. This that's the only finding we have for Higginson is that's going to the prosecutor they're pushing back on that. they they said the they gave us an ordinance but the ordinance is a it's a broad ordinances is basically I'm going to have a copy with it if you like to see it said the city the other I was doing business with any of the council members the code and fourteen forty two one seven talks about being specific button on also there's an attorney general's opinion and I have a copy that as well that speaks to this situation almost exactly accounts member serving as a super operator it's a basically conflict of interest. The only having here which has been about their own the referred to the prosecutor. Decisiveness is body is amazing. Recommend are the real got opinion. Without objection will differs report until the next meeting and request they come and explain his point. Okay the Page twenty two city mulberry. For the years two thousand twenty one and two thousand twenty two thousand twenty one and two thousand twenty the city dispersed three thousand dollars to the mulberry senior citizen center without a contract for services an apparent conflict with order cool twelve section five of the Arkansas constitution as interpreted by Attorney General opinions ninety one fourteen in an ninety two oh ninety nine situation here base because it just didn't have a contract with the senior citizen center to do a service that the city would provide otherwise okay. Questions about this one without objection is for this will be filed. Okay continue with Calipari for the years two thousand twenty one two thousand twenty the recorder treasurer is paid individual seven hundred dollars in two thousand twenty upon council approval for serving as interim mayor for one month this appears to conflict with Arkansas Code fourteen forty three four nine as interpreted by Attorney General opinion ninety two dash two forty four. this particular Attorney General opinion handles the situation exactly basically recorder treasurer took over as mayor and the city paid her for a little more for doing that and that's against that the attorney general's opinion says you can't do that it looks like the response to they're gonna pay it back though so. The by a quick issues with this following that but objects from files reports. All right continue the city of possible for the years two thousand twenty one and two thousand twenty. The city paid twenty three thousand dollars to a council member for a quick minute and two thousand twenty one without an authorizing ordinance in noncompliance with Arkansas Code fourteen forty two one oh seven. Just the basic ethics funding because they didn't have the ordinance. Without objection will follow for. Okay. Continue with the city of Wilsonville on page twenty three for the years two thousand twenty one two thousand twenty two thousand nineteen template seven hundred fifty dollars nine hundred ten dollars and seven hundred dollars to the mare for mowing services two thousand twenty one two thousand twenty two thousand nineteen respectively without an authorizing ordinance an apparent conflict with Arkansas Code fourteen forty two one oh seven again another basic ethics finding for not having an ordinance the main. Without objection her father support. Okay. Continue on page twenty four the city of wards. these are written reports for the repeat findings and the a record actually the District Court Clerk that death will oversee emailed us and she couldn't be here today and she requested the deferral until September vocation would for to their next meeting. Okay continuing on page twenty five. The town of course you want. We received a phone call from recorder treasurer Carole Adams and she requested a deferral until September because she had a conflict staff would recommend we defer without objection would deferred to the next meeting. Okay city of some of Page twenty eight. Actually sorry. Yes Page twenty eight received a phone call from Mayor Toby nor more Norbord. On the he had a conflict and we're would Rick and he requested deferral until September the objection will deferred to the next meeting. Okay page twenty nine. The town of Valley Springs there was one funding for regarding the fixed assets and we have received documentation of for corrections staff would recommend the report be file clubs actual fathers report. Okay tell the Western Grove same thing there was one finding for they didn't have. They didn't get a a U. P. for water system. We received a copy of the judgment letter for that. water system Stafford recommend the following reports in objectionable follows reports. Okay on page thirty. We have the for reports under the heading reports with findings but if you'll notice is staff known under all three all under all four of those we've received a response in the last few days we'd be glad to answer any questions if not staff would recommend filing the reports any questions without objection we will file the four reports. Okay. On pages thirty one through forty three there are thirty nine reports with resolve findings. we would be happy happy to answer questions we could staff would recommend we for five that objections will file the multiple reports. On pages forty four through forty seven there are a hundred and thirty one reports with no findings staff would recommend filing without objection we will file the hundred thirty one reports for the Fund. Mister chair that concludes the review the reports thank you the road to agenda item P. the next meeting will be September eighth two thousand twenty two without any business further business