Legislative Joint Auditing-Counties and Municipalities
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- October 2, 2026
Speaker 3
0:15
Oh Mister Archer you're recognized thank you Mrir. update on the delinquent water and sewer private water
Speaker 6
0:24
and sewer reports for the year ended December31st,2022. we received five additional 2024 reports since the December meeting that brings the total to 17 total that we have released their escrow funds and that leaves 26 that continued to be escrowed with the deadline of
of the July meeting of last year that started the year's clock Mr Chair,
Representative Richard Womack
Unverified
0:57
this concludes my report. thank you sir. are there any questions from committee
or any discussion? OK then without objection we'll file this report next up is update on those same reports delinquent December31st,2023 thank you Mr Chair. since the December meeting for
Speaker 10
1:13
the 23 delinquent reports we've received two additional
Speaker 6
1:18
reports. this brings the total of59 of the original64 that are in compliance now so we have5 outstanding 23 reports and Mr Cha these were these entities are not having their turn back currently escrowed at the we because the
Speaker 12
1:33
committee is not requested to do so Mr chairir this concludes my report. OK thank you
Representative Richard Womack
Unverified
1:39
any question or comment from committee? concerning those all right without objection we will file that report
thank you committee. uhex up is our discussion of A709
of2021. repayment of street turnback for Daisy Mr Archer do we have someone pressing here from the city of Daisy OK, OK. Mrerriot you're
Speaker 17
2:03
since the present I wasn't sure there was
Speaker 10
2:09
a question whether or not they could make it today with your permission we'd like to go ahead and present that report from page 12.
yes sir please on page 12 the town of Daisy2023 and24 under reports referred to the prosecuting attorney and the attorney general's office. under the mayor and recorder treasurer the town paid Daisyunity and nonprofit cor corporation $2000 in both 24 and23 without a contract for services. in noncompliance with Article 12 Section5 of the constitution c cor ding to town officials this was a donation towards the annual fireworks show sponsored by the nonprofit
In2022 in2021 the town spent street fund monies which were restricted by Arkansas code annotated 277207 in the amount of42,731 dollars for payment relating to the acquisition of a fire truck and the construction of a fire department building Additionally the town has not passed the ordinance or resolution to repay the street fund 10% of general revenues until the street fund is repaid and has not obtained the authorization from the
legislative joint auditing committee for repayment of less than 10% of general fund revenues annually in noncompliance with Arkansas code. this is a repeat finding. I believe we have mayyor Lisa Cogburn here to answer questions today and she'll come to the end of the table and you know as the findings states we need to discuss whether or not how
Speaker 12
3:46
they're going to repay this money thank you just take a seat there and reach up
Representative Richard Womack
Unverified
3:51
and turn your microphone on and if you don't mind just for the record if you'll state your
Lisa Cogburn
Unverified
3:57
name in an affiliation the reason you're here please and then we'll hear any statement that you may have
thank you yes sir my name is Lisa Cogburn. I'm the mayor of Daisy
Representative Richard Womack
Unverified
4:12
thank you do you have do you have a statements you'd like to make do you have a statement you'd like to make regarding these findings
Lisa Cogburn
Unverified
4:20
as far as repaying the street fund back I have presented it to my council
multiple times and the council has not has not passed it they've not they keep they're they they don't think
Speaker 27
4:36
that the amount is correct the total amount and I I would like to would planning on sending a letter over to ask if we could drop that 10% down to5% if I
Speaker 32
4:59
what's what's the council's holdup is it they think the amount is
Speaker 30
5:04
wrong they think it should be a lower amount based
Speaker 36
5:16
on what yeah you want to senatorsone's got a question real
Speaker 37
5:20
quick you believe the council believes my own here you said you say the council believes that the amount is is incorrect but what were
they basing that on they're not they
Lisa Cogburn
Unverified
5:32
from what they see on I've even asked the auditor to send us where they've calculated it all up and
Speaker 27
5:38
I've presented that to the council members but they just think that that amount should be lower
Senator Matt Stone
Unverified
5:46
5% then they'll agree to pay that amount even though they think even though they think that's wrong and incorrect amount I'm hoping if I can submit it to the council to that
Speaker 30
5:56
you guys have lowered the amount to pay back
Speaker 27
6:02
the amount to pay back yearly that they would go ahead and approve it
Speaker 41
6:07
that that honestly those two things don't add up. why would you agree to pay the amount that you don't owe I'm'm I just that just doesn't add up
Speaker 27
6:17
right I understand I'm just hoping that I can eventually get the council members to approve it I I keep like I said I keep submitting it but nobody's approving I'm open to open to suggestions
Speaker 30
6:34
of of if anybody can give me some suggestions on how to present it to
Representative Richard Womack
Unverified
6:44
quick we'll we'll address a couple of committee members questions Senator Gilmore you're next ok thank
Senator Mark Johnson
Unverified
6:54
you Mr Chairman. Mr Chairman I just stop talking off
the cuff with Senator Gilmore I walked in this building today
with another colleague and I mentioned what we do in here and this is specifically what I mentionedenator Clark he's laughing because he remembers me saying that to him but you know we see this a lot. I'd I'd shudder to think how many times we've seen this exact thing where you know they didn't have an appropriation that used highway funds and the general fund and you know and then to hear the lady and I appreciate you ma'am your candor I really do because you're telling the truth that's
what we want that the council of well we don't think that number's right. Well that number came from what our auditors determined I mean they didn't pull it out of thin air and I'm ' m I'm to the point where you know and I was discussing the city of Allport which you know we've tried to make them comply and I don't I don't know where that actually is but you know and I'm I'm not picking on Daisy it's just that they're the one that this came
up again and again this one's the one today and I just is there anything we can do and this may be a question for Mr Archer but it's probably a question for you and and leadership is there anything we can do to show get compliance or at least give them enough incentive to where they really really don't want to be out of compliance it's my understanding and please correct me if I'm not clear
Mark Peppel
Unverified
8:30
on this but I think at this juncture we're to the point
Representative Richard Womack
Unverified
8:37
where we have to decide as a committee whether we stop their turnback funds until there's compliance or not I don't I don't know that there's anything any other tool that we have does your does your counsel understand where we're at in this process that that's that's basically where we're at today. I don't think that
Speaker 27
8:58
they understand that no sirenatorgilmore just to
Speaker 66
9:00
follow up quickly sure sure go ahead I just want and again ma'am Im not
Senator Mark Johnson
Unverified
9:07
picking on you nor this town of Daisy it's we got a lot of others that have done this but this is not a negotiation this is a something that's found by auditors and we expect it to be fixed and if they that that we're not gonna sit and negotiate we we can bring the hammer down
and that includes withholding turnback funds and I hope they don't want that just for their own citizens. Thank you Mr thank you good point
Speaker 10
9:32
Mr Kenne has provided me with put the work papers they
Speaker 6
9:38
spent $25,731 on a fire truck and a $17,000 on the construction of the fire building it's what the records show and if there are if they've repaid some of that those that
Speaker 12
9:47
those receipts were not provided to audit so that's where we got the number they were hoping that when
Speaker 64
9:54
we when the general fund took over paying for the mowing that
Speaker 27
9:58
that would take would take care of some of that that they owed and the audit of course I'm sure y'alling has said that that would not be sufficient
Speaker 12
10:10
we've got to have proper documentation that that was actually mowing that was required to be paid for from the street fund to start with. So if it's if it's if it's documented that it's a a ride away on the street then that would be acceptable if it's the park or you know some other nonstreet related funds that 277207 are allowed to be used for then it can't give you credit for that so the documentation we've been provided stands at that balance and if you do you know we recommend
straight payments to the funds so it can be easily tracked and y'all get credit for everything that you you've done you know w ing services around you need to make sure you document that in very detail for for audit purposes
Representative Jack Ladyman
Unverified
10:58
Representative ladyman you got a question? Thank you Mr. Chairman first of all I think I got a question for staff this 10% is that annual or is that monthly
Speaker 76
11:12
excuse me it's 10% of the annual annual unrestricted general fund revenues or 10% of the monthly general fee mean so they're gonna pay 10% back but are they going to
Representative Jack Ladyman
Unverified
11:20
pay that 10% monthly or or per year the the law says monthly
Speaker 12
11:26
approve any that we in the past we've approved alternative payments like every other month different amounts as long as at the end of the year it equals 10% but that'd be up to the committees so they would the city would be required to pay4,
Speaker 12
11:47
this it's not of the due it's 10% of unrestricted general fund revenues for that year so it would be the the it'd be a 10%'s228 dollars a month it's there so it would be $2,283 a year is what they'd pay 22 almost $2300 a year is what 10% would be
Representative Jack Ladyman
Unverified
12:07
of their general so mayor thank you for being here
when you talk to the council about passing this do you have 23 can you pay $2300 out of your general fund to the street fund annually. does your budget allow that sir and you presented that to them that you have the funds to do that yes sir ok thank you ma'am
Representative Carol Dalby
Unverified
12:44
first lady p re s ent ative dalby you recognize thank you thank you Mrir. I think this is for Mr Archer it's my understanding and correct me if I'm wrong that this committee has the within its purview the ability to pass a motion that says this is what you're going to do despite what what
the city council is doing because they've not provided us any information that disputes your42,000 dollars figure correct? ma'am we've that's our number and we've all through
Speaker 76
13:26
the financial statements and that's what we're standing on yes and so we have
Representative Carol Dalby
Unverified
13:30
that ability in this committee just to go ahead and move on and say here's here's what the committee's going to do make that recommendation and
the audit vote on it tomorrow am I correct that is correct and then
Speaker 12
13:43
just to follow up if that will
is a percentage less than 10% if they fail to ever make that payment it automatically defaults in it's the 100% balance is due within 12 months that well at that point y'all have the authority to then hold out the complete street fund revenues from the state until it's paid in full as long as it's done within one year and then that money will be gone be redistributed to other cities and until they get it's my understanding that the mayor said
Representative Carol Dalby
Unverified
14:11
that that they're in response topresentativeladyman's question. I believe it was your question that they have the
money to be able to do it so you know I'm not I see others in the queue so I'm not making a motion but it is my personal thought that we need to move forward and and do just that to assess it and move on thank you Senator Gilmore thank
Senator Ben Gilmore
Unverified
14:36
you Mr Chair my question's very simple. I didn't know if there was anybody with the city or the council rather that would be here to speak to their action or or inaction on that is there I'm the only one here
you're the only one here ok ok
Representative Richard Womack
Unverified
14:55
I guess to answer my question all right are there any more questions
Representative Johnny Rye
Unverified
15:01
from committee? uhpresentative thank you Mr. Chairman. ma'am you know in the beginning of the conversation notice that you said that the reason that they didn't want to pay this was because they didn't think the figures were right but there's no documentation from you guys saying anything other than what we have in front of us
so you would think that we would be right unless it was proven wrong and I don't think that we would have anything to gain by
by not charging the right amount of money. I agree
Lisa Cogburn
Unverified
15:32
with you sir I just like I said I I've presented it to him many times and I get told the same thing and
Speaker 27
15:39
I've with the auditor's given me what he's figured out and I've presented that to him I've even tried figuring it out myself and and came up to that amount but for
some reason they will they will not approve it
Speaker 107
15:55
well thank you and thank you Mr Chairman I
Speaker 27
15:57
apologize on on the on my city for being so hardheaded and and not wanting to approve. I do apologize thank you
Representative Richard Womack
Unverified
16:10
committee real quick or question OK let's hear that motion well
Representative Jack Ladyman
Unverified
16:22
you know I believe the mayor if the mayor says they have the money and the mayor has tried to convince the council and they don't have good reason then I would make a motion that we give the mayor the authority to do that transfer this committee gives the mayor authority to transfer that money that 10%. is that a valid motion what so
Representative Richard Womack
Unverified
16:56
so we're gonna just put that on hold for just a second for a little more discussion and I'm surepresentative dalby you
Representative Carol Dalby
Unverified
17:04
can make it around that motion while we're talking and agree I think that's exactly what we need to do but I would offer a substitute motion ifpresentativeladyman would like to hear my motion would be that we require the 10% repayment as per the statute and failure to do that then we withhold their turn
back funds and and I don't think it that would be my motion my explanation of that motion would be I don't believe that we could authorize we we don't need to authorize the mayor to do something I think that just by doing this that takes care of it and we don't have to give because I don't think we have that power to authorize but that would be my substitute motion it which does the same thing that you're wanting to do I think thank you I accept that would you would you just withdraw your
Representative Richard Womack
Unverified
17:58
motion? thank youssentalby would you like to make that motion
Representative Carol Dalby
Unverified
18:02
for the record for the record I move that we require the 10% repayment of the turnback funds as pursuant to statute and upon failure to pay the 10% that we withhold the turn back funds the street fund you uh'll second that motion Mr chairman
Speaker 32
18:17
but I do have a question representative we have
Representative Richard Womack
Unverified
18:23
that motion but before you ask a specific
question can we yeah let me open up to discussion around a motion and go ahead if in that bain
Senator Mark Johnson
Unverified
18:36
Representative dalby do you think we could put a specific timeline on when that repayment must start next month Mr Arty may have
Speaker 12
18:48
be monthly starting at the the following month following this meeting and she
Speaker 70
18:52
said she said for the code so it'd be the code would be every month starting starting in February that answers my
question thank you Mr's my understanding of how the when you ordered it for the code and that would be how the
Representative Richard Womack
Unverified
19:07
code would be interprelated yes ok thank you that was very helpful. Any any other discussion or question on this motion Representativera thank you
Representative Johnny Rye
Unverified
19:22
Mr Chairman. Mr. Chairman let me ask you this sir would this be 10% a year or would it be 10% each month. Mr
Speaker 132
19:30
Archer just broke it down and is prepared to do it again I think if you can give me just a second
Speaker 134
19:40
it's a year make sure I get the wording just right.give me a minute what was it about 2300 of there it is right
Speaker 139
20:09
committed to pay a percent of less than 10% of the city's are nonincorporated towns general revenue
Speaker 10
20:14
from the street fund so it's just 10% so it would be it would be annually I mean we
Speaker 12
20:19
break it down by a month but we would test it we do our annual audit so we would test it by annual unless the committee s specifies something differently in the in the in the motion other questions on this motion
Speaker 140
20:32
or discussion all those in favor say aye all
Representative Richard Womack
Unverified
20:39
opposed no. right thank you the motion is passed miss
Mayer, thank you for being here today. I'm sorry you're in a hot sea alone feel free to contact staff to figure out exactly the how this is going to work moving forward and and do your best to explain the council where we're where we're at but we appreciate
you being here today. thank you very much thank you thank you could we Mr Chair could we get
Speaker 3
21:02
a motion to file the report as well working on it thank you no no no thank you for that
Speaker 146
21:11
so with without objection we will file this report all right thank you that we'll we will file that report thank you Mr. Archer so now we're just going to move to the
Representative Richard Womack
Unverified
21:26
next item on the agenda the review of reports that you have in front of you there on
your desk Mr. Archer you're addressed again thank you Mr Chair.
Speaker 10
21:42
starting on page one we have 12 reports that were deferred from the previous meeting starting with the city of Harrison 2024 under the district court clerk bank reconciliations were not properly prepared for all accounts and balances remaining in the bank account were not identified with receipts issued for cases not yet adjudicated and payments made on all unpaid individual time accounts as required barkansas code. This is a repeat finding from the
Speaker 6
22:12
previous two reports dating back to 2022.
Speaker 10
22:14
I believe we have district court clerk Sandy Wright here to answer questions. Thank you
Mark Peppel
Unverified
22:20
Mr. Arter. Mr. Oot, if you wouldn't mind just state your name and affiliation for the record and then we'll
Speaker 152
22:27
listen to your statement Hi I'm Sandra rd the court clerk from Harrison, the chief court clerk and I'm happy to report that I worked hard in 2025 and one account has been completely reconciled and is ready to be closed and I just
have my general fund account and it has been reconciled as well so I'm hoping to at the next at the end of this year 2024 that it will show that it will reflect those payments thank you
Representative Richard Womack
Unverified
22:55
ma'am are there any questions or discussion from committee? on this report all right seeing none
without objection we will file this report. thank you for being here today continuing on page one
Speaker 139
23:09
under deferred reports we have Carroll County 2024
Speaker 10
23:15
is the airport manager here today. OK you did you
Speaker 76
23:21
must have got here early you didn't sign in that's
Speaker 159
23:26
why I'm just glad you're here didn't realize I need to
Speaker 10
23:30
sign in you're you're good carroll County 2024 under the airport manager bank reconciliations were not prepared for the airport account as required by Arkansas code. This is a repeat finding re number receipts were not
issued for all items of income as required by code this is a repeat repeat finding we have airport manager Mark Pebbbles here today to answer questions thank
Mark Peppel
Unverified
23:56
you for being here. please state your name and affiliation for the record and then we'll gladly listen to your statement. My
Speaker 162
24:03
name is Mark Pelple. I'm airport manager for Carroll County, Arkansas as far as the reconciliations I was not understanding I took over three years ago there was some back things I was trying to
work out from previous managers we do use an outside accountant to do our bookwork at the end of the month and she and I were trying to figure out exactly what's what was wanted she has now switched over to Quickooks. I do have two examples here where we're reconciling everything by the end of 2020 while at the end of the auditor 2025 there should be enough evidence there it won't be completed in 2025 because it
didn't start until the latter part of the year after Mr Patrick told us what he wanted but by the end of 2026 it should be all corrected at that point we are we're actively working on putting in place what the council was asking for thank
Speaker 163
25:00
you any question or comment from committee? all right thank you then without
Representative Richard Womack
Unverified
25:07
objection we will file this report. thank you for being here today as far as do you need to talk about the second finding
Speaker 4
25:20
oh yeah we have a second thank you for that mean I'll step away sir'm
Representative Richard Womack
Unverified
25:28
sorry thank you thank you so explain
Speaker 162
25:32
that one to us where we're at on it ir this is totally on me the funds that they're talking about are fuel funds and the delphi funds that I draw down from the FAA because they're not physical checks that I handle or cash that I handle it was a brain
function on my side that I don't see that I don't handle that it goes into the bank accounts it's accounted for I did not realize that I was needed to be making physical receipts for that and there again I'm I'm working on correcting that on my side it was just a not really not realizing it is income that comes into the county that that I need to be accounting for thank you Representative Beck did you have a question
Representative Rick Beck
Unverified
26:23
you're gre I really do appreciate you coming down here and explain this to me the question I often have with when we have findings like this is maybe take one step further ask you to take one step further and make sure because you didn't know and therefore it got somewhere in a procedural manual or something like that for the next manager to make sure that it's written down that this is taken care of so it doesn't go deficient in the future. I
would ask you to do that. thank
Speaker 162
26:57
you yes sir and I'm working on that um'm exmilitary so I believe in an SOP and a there was something I never left something like that so I am working putting those things in place so when I leave there will be adequate things in place where that can be taken care of
Representative Richard Womack
Unverified
27:16
thank you a good thought Mr. Beck all right any question or comment on that finding? while we're here right then without objection we
will now file this report. thank you
Speaker 10
27:32
for being here today. continuing on page one we have Izard County 2024. one of the treasure Arkansas code requires county management to maintain adequate financial records. the financial statements contain omissions and errors that are considered material and specified below. the general fundinancial records contained misstatements of revenue and expenditures of just over371,03200 respectively
primarily due to posting errors and misclassifications of revenue. I believe we had a county treasurer warren Sanders here today to answer
Warren Sanders
Unverified
28:08
questions. thank you sir my name's warren Sanders this county treasurer the from the auditors basically overstated the revenue from county generalized a simple transfer and I understated the revenue using I should have used the a different revenue code for property taxes treasure's commission and collectors commission
I've worked very closely with my auditors in 2023 and2024 to try to fix that for 2025 our county software had a had templates in them that sets these revenue codes and they stay there and we use this this template once a year I inadvertently put the wrong revenue codes in there when I set it up and so in 23 whenever they found this finding, I
fixed it on my spreadsheet that I worked off of in 2024 I didn't fix it so they it was two years in a row we have since fixed it we've worked with our auditors and I've worked with fellow county treasurers to make sure it was correct and I've also requested that we have a training for final settlements in February for all the county treasures so that we can figure out how to this doesn't happen again thank you were you able to just out of curiosity to
Representative Richard Womack
Unverified
29:35
fix your template where it's moving it to the right not just all right any
Lisa Cogburn
Unverified
29:43
questions from committee right not seeing any we'll move on to the next finding please to file that
Representative Richard Womack
Unverified
29:55
one that's that just fine file OK
Speaker 8
29:59
yeah ok without objection we're going to file that report. Thank you.
Speaker 10
30:06
continuing on page two under deferred reports we have the city of Alexander 2023. one of the district court clerk ballots remaining in the bank account in the bank were not identified with receipts issued for cases not yet adjudicated and payments made on all unpaid individual time accounts as required by barkansas code This is a repeat finding in the previous three reports but we have district court clerk Janet Guest here to answer questions. ' m ja ne t s and the district
Speaker 181
30:43
you for being here thank you in response to this finding the auditors were believed that the change between the 2022 and2023 in their professional judgment was a change due to deposits increasing from 2022 to23, the bond and fine deposits were approximately $180,000 and
222 and409,000 dollars in2023 Upon the auditor's recommendation and I've been working with them and am going to be instituting a monthly audit on the bonds pending to see where take the calculation and see where the changes are coming from and to review all the old cases and in the criminal bonds pending to see how many have been adjudicated or if there are other problems hopefullypefully
we will find some resolution to this error and there won't be any further findings OK, thank
Representative Richard Womack
Unverified
31:52
you. Any question from you got a question you're you're recognized representative thank you
Representative Jack Ladyman
Unverified
31:58
chairman thank you for being here I I really have a question on that
first if I'm reading this right a council member got a credit card in their name and gave that to the police
chief and he spent money like $8000
on that is that what happened? No that's the city I'm just the court ok
Speaker 178
32:19
sorry about that no problem thank you I apologize I
Speaker 185
32:34
was distracted the first finding no the city
Speaker 12
32:39
was not we have a new quarter treasure and committee rules are
we give them one year this wasn't the recorder treasury that's in office now.rr correct me if I'm wrong, wasn't in office during the time we audited for 23 so it wouldn't be her mistake so the normal rules of this this committee is we don't invite them until they make that mistake the elected official in office makes the discrepancy two years in a row that's the that's the rule but you can do if you want to meet them
Speaker 187
33:05
here we can invite them up here for the next a follow up so do you pay the bills are you the treasurer
Speaker 188
33:16
me clark I'm sorry I'm just the court clerk. I'm not the treasurer and that's not the office manager apologize that's that's
Speaker 69
33:23
right. Oh I apologize our who's been a while yes
Speaker 76
33:26
thisbiing was she was here last month and and adrifted that finding and that ok that's right she wasn't here last month but it was
Speaker 12
33:35
a PA finding that finding has been referred to the prosecuting attorney and we addressed it in the deferred meeting. I
apologize for that but yes but you know we this committee has the discretion to do what you know if to invite whoever they want to and defer this report if that's what you want to do
Representative Jack Ladyman
Unverified
33:57
and discuss it but well I wanted to know how somebody other than the leadership of the city would be able to get a credit card but a bigger question would be how did the bill get paid I mean but they're not here so I can't ask
Speaker 73
34:09
them that Micchelee's here but I'm gonna try and you correct me if I'm wrong Michelle. the credit card
Speaker 12
34:16
was taken out in the name of the individual not the city and there are they were submitting these bills as for reimbursement to be paid for that so that and that was the documentation they provided and that's obviously it's not within compliance so we wrote the finding and referred it to the prosecuting attorney for them to look into it deeper OK. the court work what's what's the question sure
Speaker 66
34:46
sure I'm sorry Micchelle I'm confused just clever
Senator Mark Johnson
Unverified
34:52
question Mr chairman you're you sir michelle the
credit card was issued in John Doe's name like John Doe city of Alexander but the bill went to who the city clerk we're we're looking that's my question
Speaker 198
35:19
who approved the payment is what city ofexan
Senator Mark Johnson
Unverified
35:28
so we presume that'd be the city clerk who would get that say hm what am I supposed to do with this and they paid it as as aspresentative ladyman said this is highly unusual to
Speaker 153
35:40
the prosecuting attorney for further investigation. Right. OK. well then we can be patient on that
Senator Mark Johnson
Unverified
35:44
Mr Chairman. thank you for letting me ask a question I apologize for shouldn't have
Speaker 186
35:50
tried to file that one in two different two different
Representative Johnny Rye
Unverified
36:01
meetings that's my representative Ry did you have a question yes sir Mr Chairman that $8,018 yeah for purchases made with the card5521 it was examined in55,057 did not have proper documentation to support a business purpose
just wonder if all of that was used for the county or I I
Speaker 204
36:27
think that's what the prosecutor will figure out he's he's looking at that thank you sir
Representative Richard Womack
Unverified
36:32
you bet right that was a little confusings is there any other question or comment while we have her here at the table all right seeing none without
objection we're gonna go ahead and file this report. Thank you for being here today
Speaker 10
36:54
continuing on page three with deferred reports we had the town of56202423 and22. on the mayor andc recorded treasurer a fixed asset listing was provided. however the listing did not include all additions, deletions or control totals in noncompliance with the Arkansas code. This is a repeat finding in the previous two reports dating back to
Speaker 6
37:18
2017. under the record of treasure receipts were not issued for all funds received in noncompliance
with the Arkansas code. The similar finding has been
Speaker 10
37:29
noted in the previous six reports dating back to 2009 I believe we have mayor Ernestine McDaniel and quarter treasurerristina ird here today to answer questions thank you for being here today.
Representative Richard Womack
Unverified
37:41
Please state your name and affiliations for the record before we begin and then we'll be happy to hear your first
Speaker 151
37:48
statements artiststine Mcaniel56 had mayor oh yeah I'm the mayor thank you
Speaker 210
37:59
I'mristina irn I'm the recorder treasurer. OK thank
Representative Richard Womack
Unverified
38:02
you you have a prepared statement or just like to share your thoughts on this
Speaker 208
38:15
those that's that's all on me we're such a little town we don't buy hardly anything we're just making it and and know I need to be in numbers maybe even pictures of it but
everything that's on there that's all we have the land everything they will ask you a question. OK on some of the buildings that we've got like the old city hall or or DAv building and the land that's on it came all I have on them are
Speaker 213
38:50
I mean how much they're worth is how much we pay on the insurance world.
Speaker 12
39:07
Mr Archer is there somebody here staff yes I can answer that question you know as long as you document how you determine the evaluation either going to the assessor's office and give their evaluation of it or insurance person you know it's the valuation you know the actual cost is the original cost is what we carry out demand items on on cashba accounting is cost basis. that's not available we can document a secondary method and either one of those would be insurance
valued or assessed value at the courthouse use would be acceptable that's what I'll do.
Speaker 208
39:36
I mean I have the insurance on the buildings and how much they paid for the trucks but that is about that's about all I've got the value of that know it needs vin numbers right on all the vehicles yes ma'am we have to have a a value of of all the assets that
Speaker 12
40:02
the city owns above whatever level y'all set in your in your ordinance or resolution we have
Speaker 213
40:09
a lawnmower that we use to mow all all the city property and it's 10 years old and you want me to get a VIn number on that and what was originally we paid for it back in 15 yes ma'am that's
Speaker 220
40:34
that's what that's what the law requires yeah you
Speaker 12
40:38
reach out to your your auditor that was there and they they can give you a little more detailed on exactly how maybe we can get some alternative methods to get some stuff that's not available we can get some alternative values on these things. they can they can help you with
Speaker 208
40:51
that all'll do it I'll do what I can. thank youpresentative dalby
Representative Richard Womack
Unverified
40:55
you have a question yes sir thank you Mr
Representative Carol Dalby
Unverified
40:57
Chair. Mayor thank you thank you for y'all for being here. My suggestion is really more of a suggestion and not a question is
was exactly what Mr. Archer said to get with your auditor but also the municipal league they're sitting off over here to your left and they can they can give you a lot of guidance and they'll be happy there's a field representative for your area and if you'll just stop and visit with these three people right here they'll tell you if you don't know your field representative they'll help you with that and they maybe can get you straight and down what you need to do so I would suggest before you leave here today that you talk with those individuals
Speaker 129
41:35
OK, thank you thank you are there any other question
Representative Richard Womack
Unverified
41:43
questions or discussion on that finding seeing none we'll move to the next the nextbiing please do you have any statement regarding that one I went over
Speaker 210
41:56
the receipts and the books and it said it goes all the way back to 2009. I didn't come in office till 19 so I can't answer for that before me
but as far as me I've been updating the bookwork since the audit and have found there are interest payments from the bank the monthly interest that I did not have receipts for and it's been an oversight and I've been going back and making sure that every month I write down the interest from the bank thank you any question
Speaker 132
42:27
or comment from committee on this one all right
Representative Richard Womack
Unverified
42:32
seeing no then without objection we're going to
file this report. thank you ladies for being here today. appreciate it
Speaker 10
42:44
continuing with deferred reports on pages3 and4. we have7 private reports for water and sewer
Speaker 6
42:50
reports that we have not yet received proper responses and staff recommends we defer those those seven reports any discussion on that
Lisa Cogburn
Unverified
42:59
committee then without objection we'll defer
Speaker 3
43:10
we have one report that's been certified to the
Speaker 10
43:13
bond board and referred to the prosecuting attorney and the attorney general's office pages5 through7. we have the city of owl Shoals 2024. and on page six of that report we have the under the recorder treasure we have of the 10,000pl dollars in credit card payments tested. the city paid charges totaling almost $2000 without supporting documentation in noncompliance with the Arkansas code.
therefore the validation of these disbursements cannot be determined of this amount charges totaling $242 were paid from funds included in this engagement. Charges totaling490 dollars were paid from a water fund that has not been audited as a report date and we were unable to determine the fund of which the other chargers totaling over $1200 were paid. on page se under the district court clerk we examined district court records for the period
January1st,2024 through April30th of 2025. after receiving allegations of missing funds the district court bank account and accounting records were not maintained in accordance with the Arkansas code as follows the bank ballots remaining in the bank was not identified with the receipt numbers for cases not yet adjudicated and the payments made for all unpaid individual time accounts The becket account was not properly reclassified reconciled each month cash re cash receipts journal
was not properly maintained and was not reconciled monthly to the totaltal bank deposits as shown on the bank statement. Cash disbursement journal was not properly maintained and was not reconciled monthly to total bank disbursements as indicated on the bank statement re n ber receipts were not issued for all funds collected City officials also provided copies of receipts and other documents obtained from defendants indicating payments made in cash were not credited
to the court records the receipt books of which these payments were recorded could not be located. Balas based on our comparison of district court Ba and accounting records to documentation provided we identified 13 receipts totaling $2190 for fines and costs that were not deposited or recorded and one receipt for $20 a money order that was not recorded but not deposited in the bank account. The United States Post officef poststalervice confirmed that the money order had been cashed
the court clerk who who appears to have been responsible for making deposits and resigned in March of 2025 this matter is being investigated by the 14th judicial district prosecuting attorney in Arkansas Statelice. This finding has been referred to the prosecuting attorney and certified as the bond
Speaker 6
46:03
board there are no questions staff recommends we file this report you re you recognize heralby have a question
Representative Carol Dalby
Unverified
46:13
for staff if we could look at page6 about partway down it says
finding general fund disbursements exceeded total appropriations by339,415 dollars where did that money go it was the the budget just wasn't wasn't updated wasn't amended at the end
Speaker 12
46:34
of the year it was just I mean to based on our review they appeared to be regular city legal expenditures it just exceeded the budget so but the but you were able to account for
the expenditures our test did not indicate anything that
Representative Carol Dalby
Unverified
46:55
was against code because that's your popped
Speaker 232
46:58
out at me large number thank you thank
Senator Mark Johnson
Unverified
47:05
you any discussion or question Surearcher what proportion of their budget is339,000 dollars39%39% wow ok so it's let's just say as a budget they're not being
transparent to their citizens on how much how how much city government costs right thank you thank you any other question or discussion
Representative Richard Womack
Unverified
47:30
then we will without objection we're going to file that report we have7
Speaker 10
47:40
reports that we're going we've referred to the prosecuting attorney in the AG's office starting on page 8 and 9. we have Loneoak County 2023 under the county clerk
a review of payroll records in the county clerk's office for the period of March 13,24 through September 1el of 25 revealed over4100 dollars in questionable payments of this $1470 was paid to employee A of that over $1100 is for overtime hours that did not exceed the 120 hours of comp time that must be accrued before cash payments are madec according to policy established by the quorum court and352
dollars for unallowable leave with pay that was not with unallowable leave that was not accrued or earned 2 mean $2700 paid to employee B for overtime hours that did not exceed the 120 hours of comp time that must be accrued before cash payments are made and according to policy established by the quorum court. Senatorinin was reported in the previous report under the sheriff
a review of claims in the sheriff's office revealed over4,300 dollars in questionable credit card transactions. Almost $2400 without documented business purposes. Almost $1500 without adequate s supporting documentation just over400 dollars for lodging in LittleRock in noncompliance with county policy which requires overnight stay be more than50 miles from the employee's residence. in addition over3900 dollars in charges were misclassified
for the county financial management systemstem manual. we have a county clerk Don Porterfield here today to answer questions thank you thank you bothth our guests at the
Representative Richard Womack
Unverified
49:47
end of the table please state your name and affiliation for the record. My name isdawn Porterfield. I'm the Longno
Dawn Porterfield
Unverified
49:54
County clerk you Jason Owens lonoke County attorney. thank you. Do
Speaker 239
50:00
either you have a statement you'd like to share with the committee actually what we had discussed last year when I came has been corrected the compensation during that time was still kind of an up in the air thing so that was kind of back in that era back there but it has been corrected no one will be paid out
unless it's 120 hours period and a lot of these girls have been as of this year have been taking their comp time instead of taking pay thank you committee do you have any
Speaker 129
50:39
question or comment on this one right thank you ok with without objection then we will go ahead and file
Representative Richard Womack
Unverified
50:57
this report thank you guys for being here today continuing under reports
Speaker 10
51:05
referred to the prosecuting attorney and the attorney general's office on pages 10 and 11 we have the town of beaver 24 and23. under the mayor and the record of treasurer the town paid over6,900 dollars and over $9200 to the mayor for park attendant services in 24 and23 respectively
the town council minutes indicated ordinance number 1,001 was adopted to authorize these payments. However, a signed and completed copy of this ordinance was not provided for audit inspection. in addition the town paid over7,000 dollars and over7,500 dollars to the mayor's spouse for bookkeeping and park attendant services in 24 and23 respectively without authorizing ordinance an apparent conflict with Arkansas code there are no qu thiss this finding has been referred to the
prosecutor in the AG's office if there are no questions staff recommends we file this
Representative Richard Womack
Unverified
52:07
report. do we have any question or comment discussion from the committee all right seeing
Speaker 10
52:17
none without objection we're going to file this report continue on page tel we have this city of central City2024. on the recorder treasure a review of selected credit card transactions for the period January121 to December31st of 23 revealed disbursements totaling
$985 with no supporting documentation or indication of business purpose and noncompliance with the Arkansas code. therefore the validity of these disbursements could not be determined In addition, the city incurred $137 in late fees related to credit card transactions. there are no
Speaker 6
52:48
questions from the committee and staff recommends we file this report. discussion from committee or question seeing none
Speaker 146
52:54
without objection we're going to file that report we'll jump over to page 13 since
Speaker 10
53:03
we've already done Daisy to the city ofgrabbit 2024 under the mayor the city paid $975 to employee for heating and cooling equipment without an authorizing ordinance in apparent conflict with Arkansas code this finding has been referred to the PA and the AG the are no no no
Speaker 6
53:20
questions from the committee ta f f recommends we file this report any question or discussion for the committee right without objection we're going to file that report
Speaker 10
53:38
continuing on page 13 we have a private audit report for the alston water department 2024 the following deposits totaling over $12,000 did not match the total of the corresponding daily receipt report. this finding has been referred to the prosecutor in AG's office so no questions staff recommends we file this report are there any questions from committee or discussion all
Representative Richard Womack
Unverified
54:00
right seeing none without objection we're going to file that report. page 13 we have the Thornton
Speaker 10
54:09
waterworks 2023 and this one's this one that engagements that's on our was on our 2022 delinquent water report and the 22 was filed in in the December meeting and the response for that it's also with the prosecutor and they acknowledge the shortage a shortage in the 22 report. this is the 23 report and the finding in it is the following deposits totaling over $12,000. do not match the total of corresponding
daily receipt reports and it's also been filed with the prosecuting attorney in the AG's office. and just the staff note we have
Speaker 12
54:48
also received the 24 audit so they're no longer being their their funds have been released for for a horton
Representative Richard Womack
Unverified
54:55
thank you for that are there any questions
Speaker 146
54:58
from committee or discussion on that one all right then without objection we're going to file that report.
Speaker 228
55:07
ok we have three reports with the repeat findings
Speaker 10
55:13
on page 14 we have the city of Greenforest 2024. the city clerk Morgan Darby gonzalez was invited here today and I don't believe she's here she but she did contact me and asked
Speaker 6
55:27
to be deferred so staff recommends we defer this report does that require motion a second
Lisa Cogburn
Unverified
55:38
have a motion from somebody right we have a motion in a
Speaker 146
55:46
second to defer without objection we're going to go ahead and defer that report. Thank you.
Speaker 10
55:53
continuing under findings with repeat reports with repeat findings on page 14 we have the town of Ozan 24 and23. under the mayor the minutes of the governing body did not document the review of the findings and recommendations and actions taken by the governing body for the prior report as
required of Arkansas code. a similar finding was noted in the previous three reports dating back to 2016 The town was in noncompliance with Arkansas code as follows ud ge t s were not adopted for the general and street funds in 23. a budget was not adopted for arpa funds in 24. The budget could not be provided for the general fund in 24. this is a repeat finding as well. We have Mayor David Sttalsworth Junior here to answer questions right Mr Mayor thank you for
Mark Peppel
Unverified
56:47
coming today. If you wouldn't mind just state your name and affiliation for the record and then
Speaker 245
56:52
we'll gladly take your statement. My name's Dave Sttalsworth, mayor of Boan. and we are making the the corrections that we that are on this on your all your findings for sure OK
Representative Richard Womack
Unverified
57:07
any question from committee or discussion on this all right see you knowing without objection we'll go ahead
and file that report thank you for being here today. thank you Continue
Speaker 10
57:24
with findings reports with repeat findings on page 15 we have Lee County 2024 one of the district court clerk the following items were noted in the in the analysis of the district court bond and fined bank account in noncompliance with Arkansas code. The bank reconciliations were not prepared were prepared for the city and county accounts but were not accurate
cash receipts journals were not properly prepared for the city and county accounts. ballots remaining at year end for the district court accounts city county circuit and small claims in the amount of61,18,0,44,000 and21,000 respectively were not identified with receipt numbers issued for cases not yet adjudicated and payments made were all unpaid individual time accounts the district court accounts for city and county had negative
ending balances due to errors and settlements this is a repeat finding from the previous year. I believe we have district court clerk Soa Thorn here today to answer questions thank you if both the guests at the
Representative Richard Womack
Unverified
58:30
end of the table would mind for the record please state your name and affiliation and then we'll be glad to hear your statements Soa Thornley County District Court. I'm Jason Carter
Speaker 247
58:39
I'm the district judge for Lee and Phillips County.
Speaker 248
58:42
OK thank you for being here today I'll I'll just say we've talked
with the auditors when Miss Thorn started what in the middle of 22 I think there was no training for new district court clerks and this district court accounting law is fairly complex. I don't know most of it. I know enough to get through the audit meetings and that's about it she has worked worried herself to death trying to get this stuff together get
it right it's not been right before she got here it seems like in trying to get things right we've kind of made a mess and that kind of seems like what we've got there but she's been working with the auditors she knows what she needs to do going forward we're going to continue to work with the auditors she's built a pretty good relationship with the auditor we've had most recently and we're gonna do our best to make sure that we get this right and don't have any future findings. thank you. So sitting here today M Thorn
Mark Peppel
Unverified
59:50
you think you've got a good handle on what to the
Speaker 249
59:55
best of your your understanding you you've got a handle on it talked to an
Speaker 247
1:00:00
auditor this morning and you know she's she's walking me through how to get everything situated but we're trying our best to get and take on compliance with the way it's
Speaker 250
1:00:08
supposed to be and I will say she has reached out to other court
Speaker 248
1:00:13
clerks she's reached out to AoC she has reached out trying to get help from other people and has not really been very successful but it seems
this auditor that we're working with now is she has been extremely helpful and so I'm I'm confident we're gonna be better off going forward OK thank you and thank you for being here today. are
Representative Richard Womack
Unverified
1:00:33
there any questions comments from committee? right see you knowing we are gonna without objection we will file this report. thank you for being here today thank y'all we have two reports that have
Speaker 10
1:00:48
findings they're both private reports the Quinn Water
association March31st to 25 private report and the
Speaker 6
1:00:57
strong water and sewer fund for 23 private report that we have yet to receive proper responses from the staff recommends we defer these to in to which time we get a proper response any question
Representative Richard Womack
Unverified
1:01:09
or discussion right may I have a motion we have a motion in a second to defer these reports so without objection seeing none we're gonna go ahead and file this report on pages 16 through 21 we have
Speaker 10
1:01:25
19 reports with resolved findings staff what ok we need to re correct
Speaker 3
1:01:29
it we need to'm sorry we need to defer those
Speaker 186
1:01:33
two reports. Thank you Charlie. those two water departments he said you said file I said bob ok I made a mistake
Representative Richard Womack
Unverified
1:01:39
comedian I'm sorry I said to file those reports instead of defer how do I substract that
or will not require OK, I made a mistake committee. I'm sorry. I said said the wrong word the second time. May we have a motion to
defer and a second I see that thank you without objection we'll defer those reports. thank you committee for your patience
Speaker 3
1:02:48
on page 21 through mean 16 through 21 we have 19 reports with resolved findings staff would ask that we
Speaker 6
1:02:53
take a minute to review those for the committee and if you have without any questions staff would recommend we file these 19 reports all right everybody take a take a minute to look over that please
Representative Carol Dalby
Unverified
1:04:05
just have a quick question for staff on Washington County it shows unauthorized withdrawals of 2,809,031,000 were made but then they recovered it was that a fishing scam or was that somebody taking money from them I mean like an
employee it wouldn't turn over the prosecutor so that would tell
Speaker 6
1:04:27
me that it was just a a check that was stolen and someone did the unauthorized check where they changed the payee on it
Speaker 12
1:04:35
from outside the the government entity thank you all right everybodydy's
Representative Richard Womack
Unverified
1:04:38
had a chance to look it over getting any other questions all
right see you knowing without objection we're going to go ahead and file that. on
Speaker 10
1:04:52
pages 22 through 23 we have53 reports with no findingstaff recommends that we file these reports all righty question or discussion from committee? all
Speaker 6
1:04:58
right without objection we're going to file those reports
Representative Richard Womack
Unverified
1:05:10
and that was the end is there any is there anything that the committee needs to discuss before we leave today? all right seeing nothing the next meeting of legislative joint auditing committeetee will be held on February 12,2026 and this meeting will stand adjourned. thank you for your attendance.
Agenda
A. Call to Order by Chair
B. Adoption of Minutes of the December 11, 2025, meeting
C. Update on Private Reports – Delinquent December 31, 2022, Water and Sewer Reports
D. Update on Private Reports – Delinquent December 31, 2023, Water and Sewer Reports
E. Discussion of Act 709 of 2021, Repayment of Street Turnback - Daisy
F. Review of Reports (Refer to the Synopsis)
G. The next meeting of the Legislative Joint Auditing Committee will be held on February 12, 2026.
H. Adjournment
500 WOODLANE STREET, SUITE 172 • LITTLE ROCK, ARKANSAS 72201-1099 • PHONE: (501) 683-8600 • FAX: (501) 683-8605 www.arklegaudit.gov
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — LEGISLATIVE JOINT AUDITING - COUNTIES AND MUNICIPALITIES, Jan 8, 2026 | Agenda | 3 | Official source ↗ |
Speakers
Speaker 3
Speaker 6
Representative Richard Womack
Unverified
Speaker 10
Speaker 12
Speaker 17
Lisa Cogburn
Unverified
Speaker 27
Speaker 30
Speaker 32
Speaker 36
Speaker 37
Senator Matt Stone
Unverified
Speaker 41
Speaker 53
Speaker 57
Senator Mark Johnson
Unverified
Mark Peppel
Unverified
Speaker 66
Speaker 64
Representative Jack Ladyman
Unverified
Speaker 76
Speaker 73
Representative Carol Dalby
Unverified
Senator Ben Gilmore
Unverified
Representative Johnny Rye
Unverified
Speaker 107
Speaker 122
Speaker 70
Speaker 132
Speaker 134
Speaker 139
Speaker 140
Speaker 146
Speaker 152
Speaker 159
Speaker 162
Speaker 163
Speaker 4
Representative Rick Beck
Unverified
Warren Sanders
Unverified
Speaker 8
Speaker 178
Speaker 181
Speaker 185
Speaker 187
Speaker 188
Speaker 69
Speaker 198
Speaker 153
Speaker 186
Speaker 204
Speaker 151
Speaker 210
Speaker 211
Speaker 208
Speaker 213
Speaker 214
Speaker 220
Speaker 129
Speaker 232
Dawn Porterfield
Unverified
Speaker 239
Speaker 228
Speaker 229
Speaker 245
Speaker 247
Speaker 248
Speaker 249
Speaker 250