Legislative Joint Auditing-Counties and Municipalities

Motion be adopted motion and a second all in favor say aye opposed no we're going to deviate with the ad objection of a little bit from our agenda today and the first I will take up is the issue of Newton County and now if you would those of you here from that county would you come and make your way down to the end of the table there. Page ten. But with the committee notes on it's it's on page ten of the report. And if you could double your bike down close to the push the middle button and your of red light will come on again for yourselves. district judge Gail Inman Campbell okay miss Campbell thank you. Kortney Hause the District Court in county okay thank you and the the sheriff I think was asked to be here also we're in the right of a shareholder you here. Okay it appears as if he chose not to come of Mr co chair you have of course let's let Mr Jones redefining okay then I have a motion to property okay okay. Okay thank you Mr chair. As a. The representative Hillman stated were reading for Newton County for the river year two thousand nineteen it's or. Or that was previously deferred in for the sheriff on June eleventh two thousand nineteen the county sheriff sold one hundred three seized firearms to a gun dealer for twelve thousand one hundred fifty dollars rather than issuing payment County the dealer issued payment to a car dealership the sheriff's office subsequently purchased the vehicle from the dealership using the gun sale proceeds as credit we noted the following areas of non compliance regarding these transactions the sheriff did not sell and claims he's property at public auction as required by Arkansas Code five dash five dash one one proceeds from the farm sales were not remitted county treasurer's required by Arkansas Code the vehicle purchase was not budgeted by the quorum court approved by the county judge and paid by the county treasurer as required by code documentation of the origin could not be provided for sixty one farm sold an authorization of disposal was not available for eighty three of the farm sole. And the District Court collected probation fees for certain offenses an apparent conflict with Arkansas Code five four three twenty two as interpreted by Attorney General opinions two thousand three dash forty one in two thousand three dash eighty five. Record. District Court Clerk court houses here to answer questions about the court issue okay would you like to explain what you're done and and what you've done to correct the discrepancies. It's House the probation fees for I guess. Created by a district judge whatever I very first started there and we've been collecting those fees for anybody that was on a time pay. The poll might bill a bit closer to the. Is that better yes okay and they this was created by a district judge whenever I first started and we've been collecting these fees for over the years and when our new judge come aboard she found out that we were not. All the way doing this correctly I guess is. Hi this. And some of the fees are being collected on citations that were not job offenses other than monetary. Order that can be collected on. Since then we have stopped it we're no longer collecting the fees. Okay I'll. I guess John would just waving a somebody okay anybody any questions. Yes miss planning. Thank you thanks for coming into this is the first time that you've been asked to be here so I appreciate you showing up he's a little bit more and maybe this is for you judge just about the code that sections of code that were in conflict with the practice that was occurring I can give you that provide them I just know that when I first started I looked at what we were collecting is fees and we haven't had a probation officer there for ten years so I didn't think it was appropriate to be collecting if the when we didn't have a probation officer anymore and I send the email to of our auditor lance Woodworth and. Asked if this is appropriate and in the meantime I told ms House to stop collecting it and to give credit back on anybody that was still making time pace to give them credit for all those fees until we got a definitive ruling and and it came pretty quickly that we weren't supposed to be doing that so we that was in I took office in January of twenty one and we stopped it by March of twenty one thank you I I'm and I appreciate that you caught that and stop the practice immediately do you have any sense of how well I want to ask for numbers I guess I'll just ask where they're people that had completed payments that are just sort of out that money and if so what happened DO just got absorbed into the county finds that just we. miss House wrote a check every month to the county general after that we I don't know and have there been any action taken by any individuals to try to recoup any of that money here I'm the only one that ever brought it up okay thank you. Okay the questions. Its culture yeah thank you it's going to give you know that we appreciate out talking to staff they said like you mentioned that your actually called this and self reported we always appreciate it when. Judges our districts are government agencies catch mistake to report to us I chose a good faith effort we appreciate that and we also appreciate comments turn represent clowns questions we we do thank you for that okay I also want make appointments House did nothing wrong she was following instructions from previous administration yet I mean I'm not going in for what happened I know sometimes fees to collect automatically for the probation and somebody lease and it never gets corrected seems like that's one issues and you've corrected moved for I thank representative Klarides point was if there are people who paid to something if they could recoup that there's a way to do there they came one day and asked for is there any kind of system that could recoup it not through my court now okay thank you ma'am. Okay other questions from the committee. Of saying none of thank you all for being here and without objection this report will be filed Mr yes Sir first I have a motion at the proper time okay Okay in in this a report it was just dealing with the issues that the U. S. District Court court R. cast not not the rest of the I think we've already dealt with the part on the county judge in a previous meeting of but the the the motion was to up to the just do that one thing okay okay okay all right now you're recognized for motion thank Mister Mr I make a motion that the standing committee on county municipalities recommend that the full legislative joint auditing committee request that legislative auditors to issue a subpoena for Newton County sheriff Glan Wheeler's appearance at the June third twenty twenty two meeting of the joint. Legislative Joint prodding Committee. Any questions from the committee. Your second to the motion the second motion any discussion. All those in favor say aye opposed no motion carried thank you all for coming and judge we uh appreciate you coming also thank you thank you. If we can't we'll start back up at the beginning of the. Of. Discussion of non compliance with the municipal council hall Mister Jones. Okay I would briefly go back over the time line we're we are for a. substantial noncompliance with the municipal council law by Cotton Plant in the January sixth meeting of this committee approved notification to city officials that records are in substantial noncompliance and the next day the full committee approved that and on January fifteenth the mayor received the letter indicating they were in noncompliance and sixty days after that was March sixteenth and so on that date that's when it's possible for the city to have fifty percent of their term back with help from the state on March tenth staff legislative audit step is the Cotton Plant and it appeared that the city was making efforts toward getting the records in noncompliance but they weren't quite there yet in in the April seventh meeting last month this committee chose to wait until the may meeting to take any action and just as a note as of today the legislative office in this early stages of working on the two thousand twenty one engagement. Okay what's the pleasure of the Committee on this ten discuss support for this if you don't mind what our options are on this. explain to us what exact options are we can before we can file it we can the the options would be to send notification to the state treasurer to begin withholding fifty percent of their term back for substantial noncompliance or the Committee could choose to put this office if they so choose. And when what we have the results of the next order. I wouldn't have I would say it would probably be in the August meeting because we just began the engagement and just the timing is probably going to be not the next meeting that the next which would be August. Okay. Anybody have any. Would you like for the chair to make a observation. What okay okay I hate to start withholding of funds if they're making progress that would be look may I could be a disincentive for them to want to get straight with things so I guess my recommendation be that's what the law office and see what they've done. And if they've made significant progress we might want to take a different tack on that and we could bring In the June meeting we might be able we may be to the point where we can tell you if there's substantial noncompliance not the the report probably won't be ready to August but we might be able to report will do our best to do that okay next. Of. Without objection that's what we'll do thank you. The fourth. Yes yes okay we'll begin the review of the reports. Begin on page one. Well that's right. We have Crawfordsville sort. About as we were I'm sorry. I would turn back funds. Okay skewing city of Crawfordsville last month they submitted a letter to. the Committee. Requesting to to pay a six percent me too percent or six thousand dollars uh per year to pay back the street funds and the situation was at December thirty first two thousand twenty the city of fifty two thousand eight hundred forty dollars to the street on they missed a one time payment by mistake two thousand twenty this is during covid and then in two thousand twenty the two thousand twenty one they may to six thousand dollar payments and then in two thousand twenty two so for day have made several payments and as a March thirtieth they twenty nine thousand eight hundred forty dollars back to the the street fund so there there make it appear to be making a good faith effort to do that and again the request is to to pay six thousand dollars a year or two percent of their general revenue until they have repaid. The street fund. A certain I guess the option here is whether you accept the request by letter or require their appearance. Of this is the first one of these we've had under the new law that that's come up and and that the current law says that if they don't have to pay ten percent of their general revenue back out to the street phone is that right team that it that is correct that to pay ten percent of the General Revenue back or get permission from this committee to pay less than that and that's what they're requesting so so this is kind of a the reason this is important to me anyway is is a kind of a precedent of are we going to require them to follow the letter of the law or we think they're doing this in good faith and not this this will be paid off in five years or less and and they are making a good effort but the more leave that decision up to this committee. Or the co chair if he wants to make an opinion on. They and they've been as far as we know paying that in doing what they're supposed to be doing by us yes we had a a finding just because they made a mistake and that make a one time payment two thousand twenty so typically as my my measure personally is if they are doing the right thing there there a correlation to our auditors they're doing what they should by law and typically I'm I'm willing to extend the grace of a law to so unless there is an option the committee I have no problem with accepting these changes awfully to be monitored moving forward as long as they continue on that payment plan I think that the appropriate course of action for. So we have a motion and a second to the X. except there are compliance with this and their their payment plan on this. Any discussion the favor say aye opposed no motion carried by one. Okay we'll move on to the. Since we just discussed Crawfordsville it might be appropriate to review that that finding it's on page twenty six it is a it was a reporter the repeat finding and we just discussed that. would you like me to go ahead read that fine or do you yes I think so okay the money is for the year two thousand twenty city Crawfordsville state aid for highway funds in previous previous years of fifty two thousand eight hundred forty dollars to the street fund was not transferred during the engagement period noncompliance Arkansas Code in the previous year the city was making payments to retire this that however no payments were noted in two thousand twenty a similar finding was noted in the previous eleven reports dating back to two thousand three. And we no one is here to answer questions today and the mayor gave us a call and explains he had sent this letter and the explained where they were and they were making substantial efforts to pay this money back and so it. We we didn't really see reason for him to be here with the. The letter he responded to the finding any sent a letter for the city requesting how to pay these funds back. RT by having questions yes Sir. Representative five. Okay we'll staff be keeping up with the each one of these. And reporting back to us if they fail to make payments yes yes of the law actually. The continuity that we have to write findings on this Inver and give you that information currently we have twenty four cities at least that money back to the street fund their work on paying those back and so yes every time we have one of these we will we will let you know okay thank you. Any further questions or discussion. Without objection then this report be filed. Okay we'll move to page one. We'll begin with the city of Camden. Of for the year two thousand twenty and these are ports reports that have been previously deferred. And compensated absences or records were not maintained in accordance with the city's policy manual a similar finding was issued in their prior in the prior report and city Clerk Donna Stewart is here to answer questions. Okay Mister if you will love if your Mike's not on with the president Senator button yes Sir okay it's on okay now identify yourself at night you're of can and answer any questions or make any comments you'd like to make I'm Donna Stewart city Clerk city of Camden Arkansas. It's something that we've been working on for a while and we're still working on it you'll see us here again next year for and. Okay questions from the committee. Yes Sir. I think it was Senator Beckham aye because holders over and he's not here so I'm kind of going to infer from what he was asked. But the absent records what what's the issue why that kind of stuff and it's all can't get it's taken so much to get it done is something you're going to pass to kind of collect backup list up to something it's just continuous was kind of the issue with a part of it is that they try to get everyone's sick and vacation time on their pay stub whose day all our employees to get their second vacation time on the pay stub. We had a book that we keeping the records manually. And because of the way that the. Personnel policies and procedures manual is written. They're not matching up at the moment if the policy says that we keep hand written. On all of the the time they're trying to switch it to have it on the computer such as on the text of. But they handed it off to me and in my doing it I don't see how we can with the system that's going I don't see how the fire department or police department are ever going to match because they're allowed to put time in the bank once you have so many sick days you can trade three for wine three sick days for one vacation day and there is no computer system that I know of that set up to take care of that for us when someone takes a day like that. Okay so it's. Is this city's fault for not updating their. Policy manual correct I mean are you you're trying to. Rectified the what the city pack manual says versus what your doing with computers is that correct that is the biggest portion of the problem insert who writes the city manual. Who would be who would be in charge of changing that are it was our legislative is at the city council is that the mayor's office the mayor's office usually makes a recommendation as it goes before the city council and they vote on it okay well I mean. My take is is not it sounds like. The mayor and the city council or put you in a bad spot right now where you can't you're trying to the right thing with either what side of it you kind of coming out Losin because you can't follow the Palo C. within followed the system you have minutes sounds like a a hard thing to try to rectify right now it's double because we're keeping still keeping the book and trying to keep it in sync with the computer and the only way to do that is to go back in and change their time in the computer if they use three sick days for one vacation day. And have you made the police chief the fire chief the mayor and city council members aware that their calls in this audit issue which I mean if you audit your their their calls and you have to violate the law I mean basically that's kind of the way to think about how it works if you read told that them and tell them that yet yes Sir they're they're aware that something needs and they can no action basically I've been invited to rewrite the policy procedures manual. All right well. Thank you for showing up they all say that. And and good luck on re writing that. Thank you Sir dot as as I was reading this report I thought or there might be a real good reason why different departments do do things different but I think most cities have a city wide plan on how to deal with sick leave and vacation there is. Third there is a city wide policy. But but it's different for the fire department and police department that is hereby us. Yes but everything is written in the policy manual outline for how the police everything works for them to sell wine for the fire department and for all of the other employees okay of questions from the committee. I was getting well thank you for coming all right well thank you one third and then the next summer and good luck. Good luck. without objection will file this report. Okay continue with the previously deferred reports let's go to page six she's me page eight. And we will of go to the town of Haines for the year two thousand twenty. Although schedule one of this report shows a balance of three thousand ninety three dollars is brought to our attention that as of December thirty first two thousand twenty the general fund to significant amount of balances due to the street fund to the and the Internal Revenue Service as shown in note four on schedule three when these outstanding amounts were considered the jewel Fund had a deficit fund balance of thirty seven thousand one hundred ninety four dollars the similar findings noted in the previous two reports unallowable disbursements were paid from revenues restricted for street purposes of five thousand three and thirty five dollars in noncompliance with Arkansas Code also restricted funds of fourteen thousand two hundred four dollars noted in previous years we're not transferred resulting in a total of nineteen thousand five hundred hundred thirty nine dollars DO from the general fund to the street fund and non compliance with code a similar finding was noted in the previous four ports dating back to two thousand thirteen. The general fund bank account was not properly reconciled in noncompliance with Arkansas Code a similar finding was noted in the previous two reports dating back to two thousand eighteen mayor Aussie Thomas engine and recorder treasurer Charlotte Mick Fadden are here to answer questions. Okay thank you all for coming today and if you would pull my stand close and identify yourselves and you be recognized to making statement you would like to make. My name is Shelly McFadden quite a Clerk treasurer but the city of Ames my name is asa Thomas Merrill pains. how do we get what we are and what we can do to fix it. Well. Is that a previously there was an error in the invoice it had. General fund in history and it also have parking regulations for you I couldn't Senate error we. We're told that last there was a problem so since that time we have been paying impacted three fun of and we also did resolution they will pay ten percent every year back to the state's general fund a two percent of what ma'am. The nineteenth thousand this here ten percent of the the General Revenue or ten percent of the amount owed to present to them out so which ones because we do. The general revenue of the city. We'll we were saying we were thinking it was ten percent of with old. So you can pay thirty seven hundred dollars a year back. We we have to. We are we going to do what we can very hard you know I absolutely love this committee. And I but I think that's the best interest of it since I've been to in this thing we will have to thank you very much ma'am anything that you'd like to say. No no I need to say that this act you know okay I just hate having come up every year to work. Representative very. Thank you Mr chairman and so how much do you owe the IRS. Eleven thousand eleven thousand says that the you've been trying to contact the IRS to set up a payment plan and we still haven't got a country that we receive them. One of the guys were here at the last meeting gave me a card to call this young lady said she could help us when I called her she said notice that something they did that they do so I continue to try to reach Dyess in a I'm a holder that still holding them because somebody's picking up it goes statement hang up similar to get in touch with the. FOR will continue to try well in. Until you contact iris you're probably racking up penalties and and interest correct I'm sure so has it has a city attorney and by trying to contact the IRS and cinema registered mail letter or something. No. Because every day that goes by your continuing to rack up penalties and in interest side encourages a. even if he had. Drive to the office or something I don't know so how much do you how much do you owe the IRS like them thousand eleven thousand this act okay thank you Mr. All right other questions. Getting back on the town in the general revenue and everything according to our records you get about twenty nine thousand dollars a year. Twenty twenty thousand year NO. General revenue and so ten percent of that would be two thousand dollars a year and you're trying to pay back thirty seven hundred dollars a year. Okay and you now that are is twenty thousand. With an penalty and interest me in nineteen yeah yeah. So. What do you propose to do to get your record straight on were mostly involved with the with the city money and the street money or. Will pay thirty seven hundred dollars a year back to the state fund to get that straightened out again we go to our. Okay. If we have to pay twenty five if that's you know that's what it the general fund. Excuse me I have a cold if that's what the general fund amount is like twenty twenty one DEC twenty one. Approximately okay so we had a shooting pain that three thousand back. Okay. All right. No questions from the committee. represent right. Mr chairman bill your your city general budget how much do you have committed a yearly. Several times yes ma'am the the general fund how much do you guys have their yearly for your budget corner records about twenty thousand to twenty one and she's been twenty nine thousand. Thank you. Other questions. Yes represent very thank you Mr one one last question on the IRS so the money that you owe IRS is that uh from not paying taxes to the IRS on salaries. That's what I was told that was before I came into office but you. Okay and so how many years of has that been going on what we seem to see that as a frequent occurrence among a lot of the cities that not paying federal taxes on the salaries it went back from twenty eleven to twenty thirteen. Okay thank you Mr. Other questions from committee. Thank you all for coming today thanks for the question was a pleasure to committee on this report. Most. File a motion second file any discussion those in favor say aye opposed no motion carried. Okay Mister Jones. Okay we'll continue with the previously deferred reports with Arkansas County at the bottom of page nine Arkansas county for the year two thousand twenty the treasures treasures monthly reconcile bank and sister certificates of deposit balances do not agree with the treasure summary in noncompliance with Arkansas Code a similar finding was noted in a previous report. And the. Treasurer Charles Fortner is here to answer questions. Okay I move toward the death by yourself and then you can tell us how we got this all fixed. trolls Horton Arkansas county treasurer. And. We hope we've got it all fixed we're trying to put it all the interest in every time it. Shows up on the CD's. The todo showing what is actually in the sea Day used. Okay how did we get to this report finding out in the first place Charles will. That makes sense but we always try to do what we did last year this is one of the cases we shouldn't do it but we did last year. I didn't get it didn't give the. So doctors. Thanks just fall through the cracks and the all right anybody have any questions Mr Horton. Say none thank you for coming over here today in a we we hope we get this straightened out and the. We'll. Don't have to deal with this problem anymore so without objection then this report will be re we filed so then. Okay continue with reports. On page twelve this is a report that has been referred to the prosecutor in the seat or not for the year two thousand twenty. Accounting procedures for municipalities are set forth in the municipal council law the city was not compliance with these codes and other proper accounting procedures noted below the budget was not adopted adopted noncompliance of Arkansas Code fourteen fifty eight two oh two a similar findings issued a prior report bank rec I can't reconciliations are not approved by someone other than the person preparing and non compliance with code financial statements were not provided to the city council members on a monthly basis in noncompliance with code and your financial status an annual financial statement was not prepared and published in noncompliance with code a similar finding was noted in the previous two reports dating back to two thousand eighteen the complete report of the financial activities of the city was not submitted to the governing body within ninety days of the end of the fiscal year non compliance code enter funders C. born payable listings were not maintained at December thirty first two thousand twenty the city of the following funds for transfers of restricted cash for which documentation was not provided general fund nursing home McDermitt cemetery in St funds one hundred fifteen thousand three thousand sixteen thousand dollars respectively. Three fund just special sales tax street more fun two hundred one thousand dollars fireman's pension general street funds ten thousand dollars and one thousand dollars a similar finding was noted in the previous four reports dating back to two thousand sixteen during two thousand twenty restricted money was expended out of St fund for general water and sewer utilities an amount of fifteen thousand nine hundred ninety six dollars for amounts due from previous years the general fund repaid cops fast city hall improvement delta regional authority in home funds started repayment to the nursing home capital improvement street firemen's pension and the government cemetery during two thousand twenty one the street funds started repayment to the special sales tax street more fun a lack of management oversight permitted these instances of noncompliance with admissible counting on other and proper accounting procedures effect of not following the municipal council lawn of the proper accounting procedures constitutes a significant control deficiency which precludes management for making appropriate informed decisions on behalf of the city. Continue on page thirteen. One city council member was paid six hundred thirty dollars more than the remaining three members because wage rates for elected officials are not reflected in the city's budget or on the State Council minutes we were unable to determine if one council member was overpaid or the remaining three were underpaid a similar finding concerning wage rates was noted in the previous six reports dating back to two thousand fourteen. Monetary donations to a police department toy drive totaling nine hundred fifty dollars we're depositing the city's bank account and checks totaling nine hundred fifty dollars for issued to a department employee to purchase toys and gifts for the children however if the employee provided no documentation sit to substantiate how the funds were used. Continuing on page fourteen. The city council approved or not ordinance number two thousand sixteen dash for designating the District Court Clerk as the individual primarily primarily responsible for the collection of fines assessed in the District Court however fines are being collected by the police department and not compliance of Arkansas Code sixteen thirteen seven oh nine a similar finding was issued in the prior year. The balance in the District Court Clerk bank account was not identified was receipts for cases not yet adjudicated and the payments made on all unpaid individual time accounts in the mail twelve thousand eight hundred ninety five dollars noncompliance with Arkansas Code sixteen ten two oh nine the similar finding was not in the previous seventeen reports dating back to two thousand three. Okay. Mayor Walter Donald is here to answer questions. Well if you would identify yourself and then you are recognized to tell us how we got in this fix and how we're going to get out is a of a name is Walter dot on the map of their month. And These. Discrepancies go back for some years since I've been in office we've been aw. Attempted to fix them how long have you been all was excuse me I got elected in eighteen starts serving in nineteen okay and we have made strides to correct the problems of. And we'll continue to work until we would get him all saw is is a systemic process there to they've been going on in everybody was just ignored them and now on that we're trying to fix them I'm I'm here the only thing I can do a service that. We are working diligently to fix the problems are we're dressing issues as they come up and hopefully I will see on next year. That would be good if that were to happen a question from a committee of the culture. There you say that and I want to believe you right but you've been in it since nineteen and some of these reports or findings go back dozens of years yes Sir so I mean. Did you not know about on last year or the year before or the year before that because some of these are simply like paying one city council member more per meeting it's something that you should be able to fix relatively quick and easy and it says now six. Reports back two thousand fourteen either your city council members one is being overpaid or three being underpaid and I just it that kind of stuff has to get fixed and it's not mean that the pain from one fund other you can always say you don't have the money do I get that you know I disagree with that but some of this stuff it's just you gotta sit down write the ordinance and get it fixed and corrected to being compiled for law yes and I mean this that day during no excuses no more you gotta do it is a all right of center on the some a lot of the read back on the the court finds collecting the fines we already all fix that will by changing ordinance all this one. But the people that come up that is council member disk I called and got the name of the council member and this person was elected the same year I was so it must have to be somebody else being overpaid I'm trying to find out about we rectify the problem we have a CPA. All to work with those to fix our records and they do all I'll check writing and and balancing it on the. Emphasis of given the city council members not getting of financial reports that the problem with that is and it's not and I understand which segment excuse and I don't know I will make one. Is that. A lot of time the bank statement bill cook does not coincide with what we have in our meetings so our accountant CPA he's in the process of now. Making sure that we get Consolidated statements from the month before. And and we'll proceeding that way. these problems have existed and you're right they should make this and and I I for one. Want to be in compliance with the law and we'll do everything possible they they money for the nursing home we started paying it back as soon as I got an office and found out that it was a problem the money for the restricted funds they pool was done when I got in office we we started paying it back I wish we had the funds will be to just pay it all back at once but we don't and it's going to come up for a few years because we you know we will obtain a proper all six seven hundred dollars a month. To each account and But we are working on fixing the problem and I'll do whatever is committee tells me I have to do and along with the auditors and I I try to fix any deficiencies they find and we have corrected a lot of these already. Okay Of mayor at all when you're you're sitting there can you tell me. How how long it's gonna take to get all this straightened out one year two years five years ten years Sir I would say it's going to take another term I'm not running for re election but whoever comes in behind me I will work with them but they gonna is gonna take at least two or three years as I said earlier it's system is systemic it's been in the system for so long that people almost think wrong is right. And when you're trying to work against a train is difficult. Well I hope that to the next mayor or not I personally we should stick around because I think you're trying to solve the problem but I'll play take the bill institute have a representative where you're recognized for a question. You're recognized. No it's not present but. For someone next to you. There we go. The chip so along the lines of senator garner I agree with him a hundred percent These are some pretty significant and extensive issues that were found by auditors and they made a recommendation but to implement policies and procedures but do you have a written policies and procedures to to alleviate this in the future mitigate some of the challenges that you have now. Yes we have we have mayors coming here all day long they tell us we're working on it we're getting there but not one of those guys is in god we trust everybody else bring documentation so do you all have written documentation or procedures so when you're out of office that we don't keep addressing the same. There is a concern we have some that we put in place recently with the help of a CPA firm that we hired we have all the so we're working on. The law main ones of the court Clerk who accepted court funds the pay what we coming up with a pay scale. For elected officials we recently that are created a pay scale find employees we we put all this stuff I in conjunction with the CPA working we I read we say we don't have a budget but the last two years we have adopted budgets on time okay we already work on twenty three three budget and these are things When I I when I came in. Hi I was well versed on how to do these things and we have to build a budget from scratch that was not know what I could find one. That I believe in use for roll out so a yes Sir we all put regulations in place and hopefully when I leave office that we'll we'll leave up template therefore whoever comes in behind me to follow so we will create the same problems again and have you approached the Municipal League or outside agencies to kind of you know give you some pointers or help or ideas suggestions yes or whatever we needed help I'd go call them all I called the city attorney who would call them and They they they have been very helpful and and it points that we ask for but again. Is is not I don't know how to see about small towns. This is really difficult to do the things that the big cities too because we don't have staff so not only are you want me to marry you got to be the Part time accounting part time water bill take a and it adds up it takes a lot and in their months man is certified as a part time position. most Americans why do they work that from eight to twelve I work from six in the morning until I go home even. because you can't do it. Our part time is gonna be full time. Thank you for responses and thank you for your service thank you Mr yes. All right any other questions yes Sir Mr right thank you Mr chairman server on the about halfway down the page four one two and three and he speaks about the general fund when the nursing home and cemetery in St phones then number two the street for one I guess it was money taken out of the. right of a stream water phone that was took back to the street for one and then the firemen's pension generally free phones look like ten thousand seven fifty one and one zero zero five thousand dollars how much of that Sir do you think it actually is yes free money that we receive from the state office of one quarter cent sales tax. I would be remiss if I gave a definitive answer I but I would say probably at least a third of it. Yes Sir. And I'm and I'm just At six a spitball in it because I don't have any definitive figures in front of me but We are in the process. As I told you before we paint a nursing home back will pain the restricted funds back to the restricted so funds back that they they use. I wasn't privy to what they were used for I would just prefer to the fact that. Hello there was supposed to be used period they you know except a Pacific purpose so we're trying to best to to we purpose dolls The in a meeting of the funds I put a stop to if we move money out of one account to another account now we keep a log of record and then the record it tells the date we moved that far removed the two while we moved that then let me repay it that they would pay it back to techno will pay it back and what if funds came from to pay and pay follow please yes Sir Sir you know own the ones that sold to the cemetery in the nursing home there's probably no penalty on that. Yes Sir there's probably not of but now Sir on feelings we get that money this common you know again for the straight Fund yes Sir that's coming from from the state yes all sales tax about every four years we send money back to our cities to fix our city streets. And you know we really need to know how much that is Sir I believe cost that needs to be used in a different manner. Yes certifying that high if it's any way I can I can get those exact figures but and I can for them to you aw I'll be glad to do that but I I don't want to just sit here and and those and figure out that that I can't back up sure thank you okay if if you if you also those figures and sent him to the audit committee so that we can this person to the whole committee if you don't mind the at all no Sir I know Sir Matt okay. Any other questions. Seeing none thank you for coming and not thank you for your diligence and trying to straighten this mess out in I'm sure that you're going to work until the end of the year that is much as you can so thank you yes what the players are committee. Motion filed and second all in favor say aye opposed no motion carried. Okay continue with reports referred to the prosecuting attorney on page fifteen of the city marshal for two thousand twenty. We noted the following improper payroll disbursements totaling thirteen thousand five hundred seven dollars eight thousand nine hundred fifty one dollars and use vacation leave paid to seven employees in conflict with city policy which states that and usually it is only to be paid when employment is terminated of this amount six thousand one hundred five dollars was not properly documented in conflict with Arkansas Code fourteen fifty nine one of five. Four thousand five hundred fifty six dollars and undocumented salary payments for which time sheets were not maintained in conflict with Arkansas Code fourteen fifty nine oh five and one fourteen. Fixed assets listing was established however listing did not include all additions and deletions in noncompliance with Arkansas Code additionally deletions were made without proper authorization of the governing body a similar finding was noted in a previous report dating back to two thousand eighteen. We noted the following deficiencies during review of the city budget John street plan expenditures exceeded budgeted appropriations by seven hundred thirty one thousand dollars and six thousand dollars respectively in noncompliance with the code. The city did not budget the core automation Fund in noncompliance code a budget amendment adopted by the city was not detail to include the specific revenue and expense classifications that were amended a similar finding was noted in a previous report dating back to two thousand eighteen. Mayor Kevin Elliott is here to answer questions. Okay Mary Ellen if you will identify yourself and who you have with you and then you be recognized to tell us how we get this all fixed okay. My name's Kevin Elliott mayors city of Marshall. On I have the new recorder treasurer with me to discuss and answer some of your questions. years ago I mean you see in there that the findings is for is the personnel policy. I've actually worked with the city for twenty eight years and the mayor's in the past which it don't you know it it shouldn't I shouldn't follow what they've done but ever since I've become an employee the mayors have all ways address this if a if an employee wanted his vacation pay and he was allowed to get it as long as the funds available in the account so like I said I've worked for five different mayors before I become mayor and each one of the mayors have done the same thing. so when an employee. Ask for vacation because they wouldn't take in their vacation you can carry over two weeks off of our personnel policy anything more than that they got reimbursed for. So that's how the the finding I mean the funds and stuff that's how that got set up to where they was getting paid for their vacation and the personnel policy plainly said that it was to be you know on on the amount of termination or the day they quit. that again out of the twenty years plus before you know it's always been done it was an oversight on my part. And legislative audit has looked you know we've been audited several times of we send our personnel policy to Municipal League to have them to overlook it before the city council addresses it to see if we need to make any changes it was enough I mean they've over to you know overlooked it also it never got caught I guess until this legislative audit they done an extensive audit on the city and and they did catch this so we went back we re done our personnel policies the to Senate to Municipal League they looked at it we also had to change the sick time for the police department personnel policy plan is said to as per state to heirs per pay period fifteen days total per year. The police department they are they have a better standing I guess you could call it the they are required twenty days a year so we went back and we change that personnel policy as for the police department also and we took it in front of the city council and had that past so we have a new personal policy that is up to date now. And we also did put in a personnel policy that you can remain working with the city as an employee and still be paid your vacation time. Okay sound like you've got that one taking care of a lot about the fixed asset listings fixed asset list that's been an issue for a while even before me is being mayor for the last eight years but like I said I'm like everybody else is kind of an oversight when the auditors come they start wanting this and look in with them we start trying to change everything that we sold or that we have bought there never was a limit until recently we passed a ordinance you know for a five thousand dollar limit to be declared a fixed asset. So we have that issue resolved everything is up to date everything that the city has sold has been taken off the books everything that has been purchased take is on the books. All right now what about the the final one with the street fund and the general fund St funding general fund when the money was coming in the recorder treasurer at that time was putting strictly into the general fund instead of the street it was an error on her part clerical error when it got caught we turned around and reimbursed the departments that you know to the street you know to make everything balanced out we've worked with legislative audit people's the ladies that come up to do the audit and as of now we are in concur with them and the so this was just a matter of passing the proper ordinances yes the money with the money was there to fix these discrepancies and you think you've got that one taking care of yes Sir. Questions from the committee may I ask that you know the saying you what we're not sorry yes Sir the. The recorder treasurer has been appointed by the city council members for the last four recorder treasures there either retiring or quitting then the city council appoints the former. The recorder treasurer before saying like missing one here she was trained by the will recorder treasurer before she was trained by the recorder treasurer before she was and I said when they when that training was going on this is what they was doing and so this is a way that was taught to do it and then when we get audited we see that it was not the correct way and then we go back and I know miss England has been dealing with the the legislative audit ladies and Arkansas Municipal League getting their training get everything squared away and getting it leveled they call it coding different things was coded wrong and I can answer that one but she would probably be able to a so that's where the instant incentives with. Missing when you and I need not say. I've learned a lot we just started a job in getting hit with two audit so I'm hoping that our next one's going to go a lot smoother I'd frequently have a contact with our centerpoint that so we do like our transactions in coding and all that on and so he has taught me a lot and and then through the audit so I think that we've pretty much rectified the situations that were wrong or have at least very nearly got them cleared up in I expect our next audit to go much better. Okay all right thank you the questions from the committee. Senator Garner you got any. I don't see any from a committee so thank you very much for coming down today and hopefully you get everything straightened out thank you okay. Without objection this report will be filed. Jones. Okay continuing on page sixteen with the reports that are referred to the prosecuting attorney we have Marion County for the year two thousand twenty. Every you every skews me a review of selected credit card transactions reveal the following deficiencies statements for two credit card accounts were not properly reconcile monthly to ensure all charges were documented paid resulting in total unpaid balances of ten thousand four hundred nineteen dollars at December thirty first two thousand twenty seven thousand five hundred thirty seven dollars an undocumented charges two thousand nine hundred forty three dollars in purchases for which a valid business purpose could not be substantiated these purchases consisted of two thousand two and twenty one dollars for clothing six hundred fifty one dollars for food purchased from grocery stores and restaurant meals without overnight travel seventy one dollars none on charges. Two thousand seven R. forty five dollars an undocumented charges that were not paid as of December thirty first two thousand twenty. One thousand five hundred thirty four dollars paid to the wrong credit card company three three hundred eleven dollars in late fees and finance charges assessed on the accounts. During the COVID nineteen pandemic the county participated in the shared work and employment compensation program which allowed county employees to work reduced hours or receiving a portion of unemployment benefits creating savings for the county these unemployment benefit payments were made directly to participating individuals and did not flow through the county accounting employee receive benefits for which she was an ineligible created and submitted an invoice billing accounting for two thousand eighty eight dollars the employee of the state. The claim was stamped with the county judge signature without his approval in the county paid employee two thousand eighty eight dollars on December thirtieth two thousand twenty upon further review by the county judge it was determined that the amount of the state was not the county's responsibility in the employee reimburse the county two thousand eighty eight dollars on January seventh two thousand twenty one. Continuing on page seventeen. As noted in the two thousand eighteen audit report the fourteenth judicial district prosecuting attorney received allegations of misappropriated revenue in the county transfer station questionable payments to a vendor specific allegations included use of county employees and equipment to produce revenue for a business owned by transfer station employee payments to a local vendor for vehicle repairs and equipment purchases as well as the sale of county equipment to the same vendor the prosecuting attorney requested our assistance in conjunction with an investigation by the Arkansas state police within the scope of our procedures we cannot substantiate the allegations due to the lack of adequate documentation and issued no findings in addition to those contained in the two thousand eighteen audit report Furthermore we will not issue a separate report on these matters fixed asset records were not properly maintained as required by Arkansas Code similar issues were noted in the previous three reports dating back to two thousand seventeen. The sheriff's office did not pay over to the county treasurer on the first of each month within ten working days there after all funds belonging to the county from the circuit account and commissary account in noncompliance with Arkansas Code the similar findings noted in the previous two autor forge dating back to two thousand eighteen. Commissary bank account balances of fifty one thousand twenty five dollars was not identified a similar funding was noted in the previous two audit reports dating back to two thousand eighteen. County judge John Massey is here to answer questions. my name is John Massey America judge I will answer any questions you with this thought it. All right questions from the committee. any legislators who are not on the committee that would like to ask a question. I have got a the all these issues worked out and solved all but the assure phone number to get all the report. I just don't want my findings walls but I've got all those Tucker of. So. All right so you think you will come back again. The novel don't get reelected I will. The. No the the issue of a every elected official has got somebody they claim that the right arm. And I got rid of her and while the problems as one way so we're on the right page now okay. The I'm starting or you wanted to explain everything what I read is the star or you want to and we'll go from there I can only if the county judge in twenty nineteen and the the first thing I noticed was transfer station. We had employees up there and I I terminate every employee apartment one they had a business set up there we had a transfer and all recyclables the employees of had a business set up call personal of properties we would go out the county would gather all the recyclables. They they would boneless. That we would truck it and they would sell it and their company would get the money. That is still in the I'm still trying to prosecute. That's the first goal of got on that so be a credit card bill that's all of the transfer station with the business of a a terminated those. The credit card on the bills and stuff of. My right arm that's no longer with me. Was buying groceries over that yes yes but let me first state so my credit card. And I don't know if you've been member states on their. You know if you got somebody if your right arm and it but receipts on your claims and stuff but the claims after she was gone other secretary. Brought all this to us then we figured out there's something going on that's how we figured out what was going on and we got all that done we got all the receipts but one. Forever thing that was done but once the last one she done for groceries would ever get it I have ever check. So I got that all took care of on the of meals and we have some safety meetings also that we don't have a thank you meet every month of every employee of the county that were brought on board two thousand nineteen. That was on the credit card with a credit card was a mess and The credit card that was making the rope I missed two I don't know what she done on that. But you done that also. Thank you all know me the horse to death with or been down but that's what happened on that. The payments were made on the credit card. The bank somebody the bank was still in our money would make payments on the greater with my powerful payments we can't get late notices. They will when we got there it was getting late notices on the payments. They start taking money out of a friend's account but it back in Marion County is looking out. So they called wanna know why they've taken money other counts so we got that turned over to the prosecutor's stuff also. So if the big deal so we got that straightened out. We also got an ordinance passed anybody don't turn interest sleep it will be held on or check. That's a the main thing we got on that on the credit cards if anybody uses a credit card going to sign out sheet they got a sideout. And if they don't return expressly whatever they vote we held other check we got orders based on that right after we figure out what was going on on the credit cards. All the lady that bill that are all paperwork she told a lie about having the. Other employment on the shared work. This state help that I was off sick with COVID. My secretary and I just hard stamped it signed it. And they call Mr days later I call the clerk's office to which the person working for and I said I will absolutely prosecute you and her tomorrow if it's not paid at eight o'clock they rejected by the county back. So that got resolved there and the. After that we started a copper trailer and took all the authority away from the Clark the Clark at too much authority so that we got HR department we got three people in there we're going to comptroller and we got you know they're they're assistance we got three people in our Macon and everyone had HR department until twenty twenty one so you know we got HR department now so. Shepherd must appear the fraud on that part. but if you write me up for. I'm I have pretty good listener. Yet what we've got because a phone that's and then we got the sheriff's office added I absolutely did not about that that drive down here will much a piece called me about it and tell me a fifty two thousand dollars and I actually don't know about that I know you governor for some last year about the same thing and the. I don't know nothing about that. All right but I've got a ordinances on everything that protects the county I've got a letter here from the Prosecuting attorney. About some or Mrs we've got or this is that we have an attorney right not forced that's absolutely wrong we have to go back to nineteen eighty three to get orders on the sales tax corrected on the one cent sales tax that the US. Road apartment stuff so we got that we passed orders on that Tuesday night and get all this fixed on the of sale thanks for the road in the sheriff's department the department. That was messed up since nineteen eighty three. And I property in nineteen eighty three I would worry about the sales tax. But I am now. But America was a mess it's getting better. Good a representative berry you're recognized for a question. Thank you Mr chairman so as a movie producers contacted you about making a movie or anything else there. So I could probably make appreciate what you have great land for the newspaper up there yeah so well it looks like you're making an honest effort to fix the issues if you're only a is apple what I went through when I come home the First Lady I was coming on board in twenty nineteen everything we have with the latest. Follow suit against that of our state program for the lead our famous program please deleted everything in office with the latest we had two trucks right off and the guy got the truck back from what I try to be prosecuted into. That was one double time sheets one office would have for your regular pattern that a turning of the me taxi for forty five hours over time. I'm Tony wellness like wellness I place now so from their freight or anything else so I guess my question is so you're comfortable with the the system you're getting out the prosecuting attorney that all these matters are being held or we got prosecutor right now that's on the same page he does not care and I promise you I don't okay well I'm lost a lot of France eleven county judge and I probably lose more for the first year cages thank you thank you. Other questions of the representative right thank you Mr chairman judge of on your credit cards that that you dispense yes I've accounting do you let them know that nothing can be put on those cards excel county expenditures are yes Sir what what it's about about this the credit card was so messed up athletic code alters plan to help me figure out what the problem was and alters coming and I give him all this information. And I said you know you're illegal nobody's ever done this before. The up prior ministration since since two thousand thirteen if you go back to two thousand thirteen was banned all the T. shirts in the food just update the way they're turning me on to save us a little bit of whatever we go back to credit cards I was only one server turn myself in. So really I was trying to help. You know figure out what the problem was but I was guilty of a current another know nothing about but now that I know that I don't think I'm back for sure since the fifth of traffic safety share for safety or for the Roach out but we got uniforms now you know with they had orders for uniforms and they never did for shipment numbers for so we're good to go with that. The. Other questions. All we're saying none none thank you judge for coming down today and I hope you got all your problems straightened out up there and there things will work out all right yep just want for more I'm a thirty eight year retiree from energy alignment I'm not a politician and a on the best I can do not got a good staff now and if it's not right we're not going to do it in a property if it doesn't run out prosecuted. All right yeah so you are available if my lectures two is acting command fix it for me if you're not on the circuit I'm on a proper. After all right John I'm sorry I had to come down here all right hello thank you for coming yes Sir a particular. Without objection this report be filed. Mr Jones. Okay continue on page eighteen still reports referred to the prosecutor in your Searcy County the year two thousand twenty Arkansas Code requires council management to maintain accurate financial records the financial records contain omissions and errors that are considered material the specified below Johnson financial records contain misstatements for assets liabilities fund balance revenues expenditures of twenty one thousand thirty four thousand thirty six thousand six hundred thirty three thousand and forty eight thousand dollars respect respectively primarily due to posting heirs and miss classifications of revenues and expenses. Road fund financial records contain misstatements for assets liabilities fund balance revenues and expenditures of forty two thousand four hundred fifty six dollars thirty nine thousand dollars thirty three hundred twenty seven thousand dollars and forty thousand dollars respectively primarily due to posting errors and missed classifications of revenues and expenses other funds in the aggregate financial records contain misstatements for assets liabilities fund balance revenues and expenditures of sixty four thousand nineteen thousand eighty thousand two hundred seventy eight thousand and fifty four thousand dollars respectively primarily due to posting years and must miss classifications of revenues and expenses expenditures for three funds totaling one hundred eighty eight thousand dollars we're not budgeted and we're not paid through it the county claims process as required by Arkansas Code the similar funding was noted in the previous two reports dating back to two thousand eighteen. Continuing on page nineteen a review of the county judges expense reimbursements for the period January first two thousand twenty three November sixteenth two thousand twenty one reveal the following questionable reimbursements forty eight thousand one hundred ninety three dollars and purchases shipped to the county judge's personal residence in two thousand twenty one and two thousand twenty these purchases consisted primarily of automotive parts tools and shop supplies because the lack of controls in the nature of the items purchased we were unable to substantiate a valid business purpose or deterrent the county received the items purchased. It should be noted that some of the parts purchased did not appear to be compatible with any vehicles on the county's asset listing. Four thousand eleven dollars in purchases that reimbursed twice or for items returned and refunded after reimbursement to the county judge in two thousand twenty and two thousand twenty one the county judge repaid the county four thousand eleven dollars on December first two thousand twenty one for these overpayments. You've monthly credit card statements indicated that the judge received incentive points for purchases made and and paid for by the county the values of these incentives could not be determined additionally a comparative analysis of departments and funds under the county judge revealed that total expenses for automotive parts and repairs increased approximately fifty fifty six percent from two thousand eighteen to two thousand twenty one. County judge jim harness is here to answer questions. Now we can hear you John is socially county judge thank you you're recognized to explain what the problem is and how you can fix it. the I thought the the Clerk which will appear to explain some of those will give me some of the stuff that the Jamaican first about the posting errors and stuff like that She didn't make it I guess That really I don't have a lot to the. To do I know we've got it all straightened out it was just money put in the wrong funds and move because we had a new trigger. And her and the Clerk. The communicate to well but all that's been taken care of it's been put in the correct funds and all that should be taken care of and in fact was taking care of a thing before actually the audit was even over. Of course next I'm sorry. Ninety eight thousand dollars. Expenditure from three funds. We're not budgeted not paid. I'm not sure what that was it was something that that the treasurer paid out of a just out of an account other than run it through the claims process at the county I mean is something that that had been done before she said when she worked for the previous trader but I'm not exactly sure what what it was she was paying like that the may have been a grant With the trigger is with different trader about the court Clerk with no but I'm not really sure what those models were. Okay now what about the the the the tools and car parts and stuff like that they would deliver to your at home address rather than a county office those are ordered on departure the road apartment and this bill solid waste or any department that that our own my personal credit card but instead of heading ship to the shop or anywhere or to the courthouse I just had to get to my house and then taken down to the wherever they go five minutes from the courthouse will Wilder county shop man with a legal my taken down there but the you know they said that in my computer to my house but you know and. I don't see whatever's may vote on the still I mean I'm still in the county shall disease to go to my house I give it my house I check in and make sure that they're at everything works as well we order did not take any given to to wherever they go in the part about the items not mention the assets that that is incorrect I don't understand what that is all The there's no way this possible there's not a part that I can't they can point to you personally that that's been ordered and shipped to the shop of. Hello well they came up with that. Okay that is incorrect okay I represent very you have a question thank you Mr chairman and judge did did I hear you say that you purchased those parts. Your personal credit card and have them shipped to your house yeah the county doesn't have a credit card and instead of but we don't have one place in town even by parks and you can't buy big truck parked there so instead it's been all of our sales tax money in Boone County. Since they passed the the law where you get yourself take back to your county when you purchase some online or off of a the mayor where we where we need to get a the cheapest for the county. But the county doesn't have a credit cards on the. And may I ask why the county doesn't have a credit card. That's why I just they just don't want something just seems wrong about ordering Paying for purchases for the county on a personal credit card with the co mingling. Well that that's the only way we can operate we can't afford to pay for stuff well what they want for in town I mean you know I say fifty thousand dollars probably a year by imports Frances I can buy a set of brakes for one of our trucks. All the breaks all the rules are for the same price I can go down and buy a set of front brakes so we we're not we don't do that we don't have the money to do that so that my other question do you get frequent flyer miles or points I don't know what we that's what a senator yeah that's what they said I don't I don't really know what it is I've never used them I don't I don't even know what they are I have no idea I'm not a credit card person I think make very few purchases for my cell phone on a credit card. So what are your annual expenditures on your credit card you get a year end statement that and I'm sure you keep track of how much the is being purchased for the council on your personal credit card no I don't know keep that the doesn't matter whatever's purchases just purchased whatever we needed whatever they call me and ask me for what they want in our from the road apartment order. There's nothing I go through the credit card bill when it comes in right now what for the K. take a picture of what I ordered put it in the file in and that's what it is The only thing that the previous secretary wasn't taking that picture of the park and it will tell you what the party is with the two thousand sixteen more starter it would be on the picture and with the claim but she wasn't taking the pictures with the claim but I do have the pictures in my folder of what everything will not show that to the altar. But the it's the millers nothing that's been ordered is not been in the shop Now if you want me to just have a request when ordered parts which I do now there's a request form that the employees fill out if they want me to order a. The order. Twenty seven fuel filters the other day that's request remand order fuel filter far greater than trucks which you can order twenty four dollars apiece online or forty dollars piece up to now so you know as. And though what I heard him say so that fifty percent that was because I did when I first started in order much on the credit card because we did that in town because there was no advantage to order it online because you didn't receive the sales tax back but we run a whole solid waste department on a one cent sales tax in the it doesn't make sense recession beginning to get older sales back to Boone County when you spend two thousand dollars a year any of those self thanks to the county ten miles up the road. Thank you Mr. And the at the the four thousand dollar. A. Refund from the parts that we send back that would is something I did notice the my secretary to engage at the clerk's office in case you the. I never look at the press of what's on the credit card that is more close to counties. What it what trunk or whatever if it's take a picture of the part that ordered but that was all the papers in the they just in case the subtraction is still deploy us honor. I think there were like four five four one of the I think almost a two thousand dollar of stirring secretary for doctor of the. Is made up to four thousand dollars for the eleven dollars and like to. Okay. President Cooper. Judge representative berry alluded to this but I don't think you really answered a wide the what is the county not have a credit card. The they just don't want of the former treasurer who who's day of the county nobody at the county will take a look at a credit card they have never a. When I worked for the county they would try to get a credit card but the the treasury at the time he didn't want to mess with a credit card and want to get all that messed up with all this stuff with credit cards for the whole entire County so that's that's why the county is never never had a credit card to of any can. Hello everybody is use or personal card bring it in and get reimbursed off of their personal credit card for trips or whatever like that you think you might want to talk to your quorum court maybe a quorum court can kind of. A lot of fire put some prompting the other county officials that maybe they do need a credit card. We have a mission to the quorum court and they wasn't really in favor of it either I know probably only county in the state that doesn't have one but the you know they just didn't particularly like the idea and you don't even. Course I have my credit card you don't the oversight on the the four thousand dollar refund but after credit card Devon ten dollars worth of candy on that was was not able to be on there you know when they bring their receipts what would paying for the what was on the card and that's kind of what the think the quorum court defray that it will get out of hand and more stuff bill credit card and should be the only thing that I can think of and most of them or if it makes any difference or. Been there a long long time an old and older and don't want to see a change of what is now I have to change everything needed to adapt to that probably more than anything. The New Clerk. Or the new a treasure. Can probably set one up for the county of we make you want to go there be some new JP's to come in different different change but the ones in there now the not interested in in a credit card at all well nobody an entire court else. It may be wise to consider them you might save you the county some headaches of If you have that available to you you probably wouldn't be sitting here most likely a lot of that I switched it to As someone we can get a credit card I know we're going to have to or or or do something but you know that's my personal information my personal stuff online but we don't have enough money to operate paying. They and what full press reports like that they get it down there's no way that the real department do function. Okay representative very. John you want to turn your Mike of. Please put I'm sorry okay thank you Mr so I would encourage you do whatever possible to get rid of quick co mingling your. Personal credit card with the county and and I think you really need to go back and look like to use an Amazon credit card there's a cash back that's property of the state or the county and it sounds like to me nobody's looking at frequent flyer miles or cash back from Amazon which is not your personal property but is going back to you so I'd my personal opinion is you probably ought to talk with the quorum court and just totally get away from using a personal credit card for official business for the county no there's nothing ever came back to me as far frequent flyer miles or any of that I mean the auditors checked that I told us that I've never used in this those you said well I looked I checked to make sure no you haven't I mean it's not nothing I'm going to use the the county is welcome to it whatever whatever it is not a good practice to be in rescata is not good practice use a calming goal at assets with the county and you and and and being able to counsel and you can you can take pictures a parked all day long and say that you have them and ship them back to Amazon to get a credit back but you know there's just too many things wrong with this process that you use and I've never heard of it before so I would encourage you at the first opportunity give me a quorum court JP's whatever figure out another process to be able to pay for parts and different needs of the county then your personal credit card elementa not in the parcel and businesses and stuff back you know that's not that's not what it is a you know you can look they fit the assets of our trucks of I've done nothing wrong. With what I ordered and stole anything that I've got I mean if you wanna come up like actual multi and pointed to you on the trip that's the and that's what plus the you know if I want to still I can still anyway I want to get him other than doing that you'll find your favorite show your laying down I'd be pretty stupid thief. I understand your point but I don't like being accused of of of students to when I don't not work hours now the basic using you of anything intent is not to on the. Thank you to Mister chair it's it's it's not a good idea to call me and assets of the citizens of your. A county with personal with your personal credit card I understand that but what I have to you know I didn't know that there was a problem with that into the auditor said that in the eyes everything is documented for goals and what goes on a sentence and then going to invite a candy bar you know on your personal credit card there's just more of. But I have put it all on one card and I told her as soon as the the county would allow credit card we would get a county credit card if they will allow me to if not then we won't do it anymore there there's nothing I can do about that I didn't see the problem with it in. Resentment I understand you're a difficult position so let me ask a question. If all you're recognized are required to take off work to come down here and answer all these questions but they have a different opinion about getting a credit card. I don't even know if they do come up but I'm sure they would yes this body can get him to come a lot like the Clerk today. I'd like to make a motion from time I thank all right have a good time to do that. I move that we hold this report to the next meeting give him a chance to go back and and visit with the county a J. fees and and county employees about getting a credit card that takes care of this problem and get the the county Clerk and treasurer back in here to to address these other issues that are. Also on this report. Okay you've heard the motion Is there a second there is a second discussion on the motion. Seeing none those in favor say aye. Posebno motion carried so you you that the trader has retired I don't know if that makes any difference to you all but the one that was here through that she is retired she is no longer there If that I mean well do you do not have a treasure at all at this point yes about my mean usually call when they're here to talk about this stuff but that one is no longer here is will send whoever's there should should be up to speed on what's going on there with with the. With all these funds so I am glad to hear from somebody will well yeah I mean only better than fixes a month but I mean if you in a little bit the good deal trying to trainer we will invite the current treasurer down because that's one that has to answer these questions the other the other one would would confuse it if you all want or to the the former trigger to try to help with that they got the mails but that may be good to your bill may need to discuss that amongst motor sales and decide what you and explain it if you like to come out of state or should be more than happy to go when when the other one comes. That's what we all want to do okay of the motion was it would be the furthest to next time and invite the judge back along with the treasure and if you want to bring the former treasurer with you that certainly up to you okay our thank you okay thank you. Okay that is all of the invited officials that we have people who have been invited to respond to findings. Been just checking to make sure there's not any more officials that have been invited for move move on. Okay all right we're moving to back to the beginning of the synopsis on page one with Clark County again these are these are previously deferred reports. So Clark County for two thousand twenty. The commissary account ending balance was not properly reconciled to them but ballots in the evening but bounce was incorrect by eight thousand nine hundred seven dollars the noncompliance Arkansas Code in addition bank reconciliations were not approved by someone other than the person preparing the reconciliation of someone finding was noted in the previous seven reports dating back to two thousand thirteen. And tax collector sheriff Jason Watson contacted us and requested to defer until the June meeting he had some conflicts today okay without objection. Okay we have the the reports for all port for two thousand twenty and two thousand nineteen the committee has been deferring those reports until the all port situation is settled would you like to continue to do that yes without objection. Okay. All right. Moving on to page six the telegram springs for the years two thousand twenty and nineteen. the fixed assets listing was maintained as required by Arkansas Code specifically categories were not establish serial numbers were not included for equipment items an asset purchase in a requiring gauge men and it donated asset were not added and control total was not included for all assets a similar finding. Okay all right skews me sent the telegram Springs we have some invited officials but they did not show up today. So without objection with the furthest. All right telephone three on page eight. that's the same thing recorder treasurer. Kimberly Burgess says She was invited but she is not here today. All right without objectionable deferred. Okay Page none the bottom. Skews me the yes Page nine the middle town Jericho Elaine to pre is the recorder treasurer and she's a teacher and she request deferral until the June meeting. Our already August meeting now without objection with the father until August. Okay moving on to. Page twenty two. That's the city of mon at. In these reports have been referred to the prosecuting attorney. where they invited to be here today they they were not in so we'll read the findings the following issues were noted during our review the city's payroll the police chiefs time sheets when approved by someone in a supervisory role based on review of time sheets we determine that the police chiefs actual plexi to prove pay by three thousand three and thirty four dollars and a as noted in the city's original salary schedule policy manual however the council amended the budget for total salaries paid on January twenty fifth two thousand twenty one based on discussion with the council member on January sixth two thousand twenty two the council's aware that the amended budget included overtime pay we also determined that the police chiefs actual play exceeded the amounts determined does keeping documented on time sheets by four thousand two hundred eighty seven dollars primarily due to improper leave payouts and weekly payments for fewer hours worked and standard work week according to city officials your hours worked during some weeks due to the police department reducing staff from four to three individuals. However dates provided for this change do not always correlate with time sheets based on discussion with city personnel review time sheets return the city paid officers for on call time without a policy regarding this practice without defining a normal work day for officers in the existing policy day and holiday pay rates were improperly calculated on the city salary schedule causing a vacation excuse me for causing vacation all the time to be paid fifty percent more than the daily rate instead of the actual day right. And so that's a report prepared for further to the prosecutor while we're reviewing it and you recommend staff recommends that there we review this the filing. Without objection. All right Clay County at the bottom of the page for the year two thousand twenty is brought to our attention that the Clay County deputy collectors receive payments directly from five date drainage districts without the county within the county to collect taxes for them an apparent conflict Arkansas Code this was in addition to the drainage districts being charge collectors commission on the final tax settlement for the collection of taxes the counties indicated that these payments will stop beginning this year we recommend the council seek legal counsel to resolve this matter. Okay any questions of the owners report. Without objection to be filed. Okay Page twenty three. This is Phillips County we A county judge of Clark call can't be year due to an open house for a new justice complex in the county Clerk is not here's. The sheriff is not this year of indicated he can't be here as well okay without objection the deferred list of next month. Okay continue on page twenty seven these are reports With the repeat five this is the city of green way and recorder treasurer Julie Hicks called us and this is a fine again where How will this is a final read the C. transferred restricted street fund monies of three thousand dollars to the water department and noncompliance Arkansas Code restricted funds of four thousand dollars from previous years or not transfer to the water department to the street fund for a total amount due to the street front of seven thousand dollars at December thirty first two thousand twenty one a similar finding was noted in a previous report and recorder treasurer Julie Hicks called she noted that it was a hundred and sixty mile trip one way and said that gas is expensive and she requested to not attend the meeting so we're seeing what the committee's wishes are regarding this and the staff recommendation is that we not ask her to come down. No no our recognition isn't is we're just letting you know she requested not to ten a we don't have a recommendation let me let me run the committee that they are reimbursed for forty two cents a mile I believe it is for using their own vehicle so what is the request of the committee that would deferred this invite her back in next month. Without objection that's what with the. Are we have two reports will with group repeat findings are issues with findings the jointure water Sir to par for two thousand twenty no detailed record or property planned commitment equipment could be provided the Department center fixed asset listing to this on may tenth the staff met recommends we file this report. Without objection to be filed. And on the next page the so for springs water department we received adequate responses on May fourth in Stafford recommend we file okay without objection is to be filed. Okay one pages. On twenty eight through thirty four they're twenty two reports with the result findings would be Hansard happy to answer questions if you'd like if not staff would recommend we filed these reports. Okay without objection then be filed. Okay beginning on page thirty five we have eighty reports with no findings and staff would recommend we filed these reports. Without objection those will be filed. And that is the conclusion of the some of the Review reports. All right just a few housekeeping things here of the next meeting will be on June the third of which is only like three weeks from now. And is there anyone. On the committee that would like to. Express any opinions or ask any questions of the committee. Yes Sir. The small towns that seem to be using their their street funds is general funds and seems to happen over and over and over again and they say oh well what will pay back when we can we're doing the best we can what what's the damage to them even keep in their their charter as a town or city or whatever what why would they not just let that go and try to just get out from under all this. Is that a rhetorical questions or you want to. Your own opinion from. Maybe minute municipality somebody will from I think it goes back to practice I live close to ten is less than three hundred people and and those people are proud of their town and the the I think I know the one you're thinking about them as Southwest Arkansas those like two hundred and thirty thousand dollars in the they have less than a hundred people there it goes back to practice and then there are what they want to do. So and I've got some more opinions on that but I probably not should done expresso Smith chair. Well I live in a very small town to you know run around hundred people but they seem to keep their stuff straight but So so what would happen with their dead with with this money that that was owed if they did dissolve. It depends on what the date is and there is a law on the books that I co sponsored back I think of my second term of that that prescribes a procedure for a town to the Commission themselves or for us to the commission them if they don't do it themselves and there's a couple of the small towns are in that right now but the bottom line is that if it's. If it's a debt that's guaranteed by the state. In the state's going to be on the port and so those are my Anisur water things like that some stream proved that bonds that they issued and the the of the revenue that that that that city would normally get will go back into the into the of. How will the cause to turn back funds and be distributed evenly to all the the rest of it will go back to the county. we we try to make it go back to council vote to run into some constitutional issues on that. So I think we're going to face is more and more of that as time goes on. Member some years ago I was on natural resources commission I think I asked that very same question back then because there's so many responsibilities at the small towns and small cities have that that they can't possibly comply with all of the requirements of their their put on because we have the same requirements on them as we do in Little Rock. And they don't have it they don't have the expertise they don't have the knowledge they don't have the training they do and the tablet it would take to comply with all these so it's it's a after I feel for these people and then they step towns that are trying to do a good job and just don't do it not because they don't want to but because they don't have and then there's course some of the to try to work things here where they can and and the ones of. You get back on the district funds if you're to have the names of my pay light bill and you got to a thousand dollars and Overstreet Fund. We want to hear the mayor the city council you'll pay light bill. He even though they know they're not supposed to but they and then either go get caught on inactive somebody. Thank you for two cents about the command said that in there they were all but it never did again. There any questions from committee. All right what about anybody in the audience. If I have anything I want to say. I don't seem by raising a hand or jumping up so thank you of. People committee members for staying through the whole thing we had a bet on how long it was going to take and I think it took this what the status is going to do so the meeting is adjourned.