Legislative Joint Auditing-Counties and Municipalities

I guess he didn't want to. I was asking. Yes. That's what I'm looking for a okay. Your savior we run a. Okay. Of. First thing on the agenda. Photo start this thing on time you have whatever you want to. Well. Them the minutes of the that January sixth meeting have been presented to your motion and second to approve. Motion motion second all in favor say aye. Motion carried. The next thing is the review reports Mysteel your start off. Thank you Mr chair of the first report that we have a visitor for today is that the town of cash this is on page five of your synopsis. The repeat finding for the recorder treasurer was of the general fund and traffic ticket account cash disbursements journals were not properly posted in class five and non compliance with code a similar findings noting the previous to report dating back to two thousand eighteen and the report treasures here to answer any questions. Okay Terry if you would identify yourself and the then you're the recognized to Send your case to us and I guess the guy sitting next to any of those himself to if he wants to okay I'm Terry cure to okay four point down and make sure the red light comes on. I'm Terry sure to and from the city of cash on the reporter recorder skews me treasure for the city of cash okay. And that you have with you the mayor this is the mayor Michael Cureton okay or state cast all right so you're recognized to present your case to this committee okay the city cash uses quickbooks. The altar that I've had the last two three years. Says that we are not printing him off the correct information for his reports when he takes does not all it which is a yearly audit. And so we're working on trying to figure out what exactly we're not doing correctly We asked him. What other towns use quickbooks that we might get a hold of them and see what reports they're printing offer you that you approve a Wallenberg was hello everyone he could think of it we went and visited with the recorder at Walmart and she showed us what she was doing which I thought was similar to what we were doing so we're trying to figure that out I probably Waldburger it's a very small town would probably need to find a larger larger town. and get with them and see what what reports they give the auditor that all the money's there if things come before he just doesn't like to report that we giving to go along with our books and we're working on okay all right questions from the committee. He suggested we change to something else since the quickbooks that's all costs money. Is that besides me the auditor okay. What have you have you work with a municipally. Thank you probably tell you who who others that have quickbooks what's your problem yes. They law test and get back with me okay we'll let the honest truth I column in it's hard to get hold of. All right. Okay any other questions that you may. Yes yes. is still. Mr Connaught I talked to the auditor the supervisor this morning yes you dreaded you drops and paperwork off there today I drop some off to tailor the auditor's page yesterday okay was yesterday yes I talked to them this morning and it from what they tell me the issue is somehow your expenditures are not getting to the expense report I mean they're not being when you write your check it's not somehow carrying over to the expense classifications in the system and I don't know if that's a problem in the system I don't know how I don't know how to set up but that's what he explained to me that the issue was okay let him explain it to you we predicted that to. We had a problem with it when we did the express reported put some under accounts payable and not classify the expenses and so it was happening when we would with any of the bills in the system and write checks later so now we're just getting the bill right to check one time and bypassing that step we think that that'll work out better next year we hope is because of H. one classified when you write the check and not going through that third process now strictly go to write checks put the bill in print out I don't go through the vendors like I used to when are you school of interest by bills for some reason it would show that. So I think we've got that corrected so when you're when you write your check it as for instance your classification. Yes we've already got in there it just automatically put stand fits a utility or whatever it is that that should be from what they tell me this morning that that should help okay yeah we start that out I went back to the way I used to do and I don't know what reason the change but now it's transferring it correctly. Good good. Any committee member I have a question. Of C. none without objection will receive and file this bill review. Thank you all for coming and good C. again ma'am. The next report will review is still under previously deferred reports. And it's on page it's Turrell on pages six through eight. We have repeat findings under the mayor recorder treasurer. District Court Clerk. And I guess that's those three starting on page six. repeat binding and the mayor and recorder treasurer all schedule one of this report shows a balance of forty thousand six ninety three it was brought to our attention that as of December thirty first of twenty the general fund significant amount for balances due to the street funding the firemen's pension fund shall not six on schedule for when these outstanding amounts are considered the general fund had a deficit balance of two hundred ninety thirty nine thousand three hundred eighty dollars a previous binding at a similar findings during the previous report. Then under the mayor and District Court Clerk fines and costs collected should be deposited into a court account to be adjudicated and settled to the city county and state by the District Court Clerk as required by code fines forfeitures and calls for deposit into a city police funding disbursement on portion and that service expenditures a similar finding was that in the previous report. Going over to page seven. Under the record treasuring District Court Clerk court costs of seven thousand eight seventy seven remitted to the Arkansas department of finance and administration however settlement to not consider all fine and cost payments therefore we could not determine the billet solidity of the settlements as in our bonding was noted in the previous report. on down the page under the District Court Clerk. Accounting procedure for district courts are set forth in Arkansas Code the city was out of compliance with this code is listed below for never say to not issued for all funds received receipts are not deposits intact daily receipts from not reconciled with monthly bank deposits the bank account was not properly reconciled at the end of each month. Cash receipts and cash disbursements journals were not properly posted ending balances the bank accounts and identified with receipts issued for cases not yet adjudicated in the payment made on all and paid time accounts a similar body was there in the previous report. On page eight under the recorder treasurer. The C. paid three thousand to thirty for restricted street but moneys for sanitation purposes state aid for highway funds in the previous years of two thousand two hundred fifty thousand nine seventy to the street fund was not transferred during the engagement period in noncompliance with code leaving entitled to the street fine of two hundred fifty four thousand two hundred December thirty first of twenty a similar finding was there in the previous eleven reports dating back to two thousand and three. I firemen's pension funds the amount of twenty five thousand eight seventy three were transferred to the general fund in previous years and not used for the sole use and benefit of the firemen's pension fund as required by code this amount is still owed is exempt as of December thirty first of twenty a similar finding was that in the previous eight reports dating back to two thousand seven. The city contracted payroll services to an external agency without establishing an ordinance the leak detailing the method of internal accounting controls and documentation for accounting purposes in noncompliance of code in addition we determine federal and state tax reporting forms were prepared the documentation was not provided to substantiate the remittance of federal and state with holdings by the contracted federal agency a similar finding was there in the previous five reports say back in two thousand eleven. And we have the. isn't. Miss not in N. door Jordan here to answer any questions. Okay if you would that lead is a densify yourselves and then you're recognized to plead your case to this committee. I'm the original one and the city Clerk and this is. I'm in that not in on the District Court Clerk for the creek of peril division of the couldn't County District Court. Okay. You may proceed okay according to our own recollection Those from time pay well. Well now we are using a different pay roll away in the House may well before we will Page eight but now we have a if Arkansas then that happened no. Right now my book that we change from quickbooks to centerpoint and miss Pam right is happen that's to correct all the mistakes that. They show in the finance. Before without we was doing it correct but when she got there to show the exactly what we were doing wrong which we was trying to do right which we thought was right. But evidently it wasn't. Yes. On the court side of things the first find the call of fines and costs collected should be deposited what account did you get sent to the city that one. There. Turrell was originally set up as a police court so there the passes were speaking a bit closer to the Mike please thank you Turrell was originally set up their court was originally set up as a police court so their accounts were set up a little bit walkie and later on they tried to fix it by setting up a court account. It's my understanding that they got the counts backwards never put the money in the police account and then taking it out it was a hot mess quite honestly when I came in we were trying to get beats we currently have it fixed now that the money is that the money that I received as a court Clerk which is right now what well at the first part of the pier for what this audit covers with cash check and money orders that was deposited into the court count their online payment cause a problem because they were using a system that I had absolutely no access to so I honestly cannot tell you where that money was going or how much was going in there and we've finally gotten that move so we moved him over to court solutions to all their online credit card payments are going into the correct account. I understand that yes the previous finding was found earlier but also when I started support Clerk did not have a computer I system for the court at all it was all hands documents that were. In the hands of the police chief and not an actual court Clerk we've now gotten moved over to use a virtual justice so now they have to systems that are talking to each other as far as online payments the in person payments those are now being submitted through virtual justice so everything is has all receipts will have a number receipt there is a chain of command to prove it. One of the problems that is still a issue with what Turrell is that they have not setup their quarter there court accounts through an ordinance like they were supposed to so that the court Clerk have access to the court counts they were under the impression that moneys received through the court with the city's funds to do with pretty much as they wanted we're. We're getting that straightened out I still don't have access to the account I don't ever see a bank statement so I can't reconcile those as now it's my understanding that they're going through their their process to their city council to get that straightened out. But as it is right now my hands are tied I can't reconcile bank account that I had no access to I can't explain where all the money's going if I can't see exactly what's going into what's going out at one point they were using the court account to pay bills. Which I had to explain to them is not. I think that should be done I've talked I've talked to the mayor exactly twice about this and I'm not quite sure exactly where their standing I don't get. Information I think in a timely manner but I do know that things have gotten a lot better it's just it's not right yet. And I'm the mayor has talked with the city council and they are waiting to approve it so that everything will be turned over to the police court. In some of those previous find them look like in two thousand and seventeen we want to continue to have those because it wasn't my doing I wasn't here at that date. So I evidently effect with the people that were there before me. They misplaced some money in the general fund. And not they received but. They didn't put it back sell I don't know what happened with that situation. So are you already for questions now yes okay represent love. Thank you Mr chair I'm so. Who do we have here. This is a city of the city it's terrible I have District Court Clerk and the Clerk okay we'll treasure skews me do we invite the mayor. Okay and then what was the response I. If you meet the mayor. Has another job he's I would say especially at school via in Oakdale one. And so he had forgotten and fluffy and I he said that he had on meeting set up for the day so we have to be there. Okay so I guess what I'm trying to figure out is is we need to know if the city council and the mayor have agreed to that. the Clerk needs access to the the records because if they're not going to pass importance for this they need. No there's there's of the actions that they need to be taken. Because she I guess is what I'm understanding is that you've got everything correct except for what you cannot reconcile because you don't have the access to is that is that correct that's pretty much the case and some of the findings. Again there there carryover from their older system I became the court Clerk the last month the two thousand eighteen and some issuance of some of these findings are carryovers from that the first year that I was a court Clerk there was no computer system still I had to try and create a manual database to track things as best I could. And slowly but surely we're pulling them into the twenty first century over here but yes the right now the crux of the matter is that I do not have access to the council for to the records that I need to do my job as the state lays out that it should be done. Okay. For question. no further questions at this time because they just stated that they don't they don't know what to say the the mayor and the council stand on pass an ordinance is that correct I know that there they do not talk about it in this month's meeting so they're gonna come back next month and supposedly passed everything over to the on court Clerk. I I I I have what she just said to go on I. That the frustrating part is is I've made efforts to contact the mayor to see what was going on and I don't. Get any feedback I had no idea exactly what they're doing the judge I have talked before and he's pretty much at the point that if we cannot get this court the way the court should be maybe there should be a core. Mr check and we just make a motion to hold this summer for we can act property at okay we guess my question to represent right you got a question thank thank you Mr chairman ladies you know there was a total of two hundred fifty four thousand two hundred and that was money that whatever four years is transferred all sales taxes from the state to that the counties and cities for roads and ladies that's pretty serious because that's two hundred fifty four thousand dollars that was not spent for the road system I just wonder if you all could transferred that over from the the city general over to the road system to be able to to use that money to fix our roads. That would be a city question on a strictly deal with court. president rabbi could offer I anticipate that we'll have a motion to defer this and give the that mayor a chance to come in and talk about that in in in these positions are not ones that they did have the knowledge to address that question. Yes Sir you're good okay. All right any other questions before the committee all right to a representative love you are recognized for motion thank you Mister motion to refer to the next the next meeting okay is there a second. Any discussion without approval all those in favor say aye opposed no motion carried thank you ladies for coming and I'm sorry but we're going to invite you back next week and the mayor should have plenty of a next month I mean the mayor should have plenty a notice that he needs to be here so we can arrange his schedule for that. Sir okay what is when is the meeting next month this is also the first week okay. Okay okay of the staff has advised me that that you will not have to come back because we ask you all the questions that you need to. Yes ma'am. All right well we we will send a letter out inviting the people that we need back. The the date is April the seventh of April okay I have worked but will give your opinion notice in time the ones that they do come back and there might be some questions that the mayor can answer that anyway we'll let you know and thank you all for coming today thank you for what you're trying to do thank you. Mysteel. If you turn out of page nine under previously deferred reports we have the town of Wabbaseka. We ever repeat findings on the mayor and reporter treasure. Under the mayor and audit or agreed upon procedures report has not been obtained for the town's water and sewer system for the years nineteen eighteen seventeen or sixteen as required by code similar findings of an issue since two thousand seventeen. Under the Marion recorder treasurer as report on schedules wanted to the general street funds had cash balances of seven hundred sixty nine and eight hundred and seventy nine respectively at December thirty first two thousand twenty however this is not account for the ten thousand eighty two dollars due to the street fund six thousand due to the fire equipment training fund from the general fund also not reflecting these cash balances of unpaid payroll liabilities associated with four hundred twenty eight thousand eight hundred seventy nine dollars in salaries paid by the town for the years two thousand thirteen through twenty. The actual amount of payroll tax liabilities associated with the salaries was not provided by the town as of the report date a similar finding was not in the previous and the prior to reports. State highway eight of ten thousand ninety two dollars due to the general fund this treatment has not been repaired as of December thirty first twenty as required by code a similar finding was noted in the previous four quarters dating back to sixteen however thirteen thousand three sixty eight was transferred to the street funded two thousand twenty reducing the prior balance due. The following part of payroll issues were noted. The town paid salaries of four hundred twenty eight thousand eight seventy nine in the years two thousand thirteen to twenty however the town with held payroll taxes from employees but did not remit the tax to the department of finance administration and the IRS. A similar findings during the previous four reports dating back to sixteen. R. as forms nine forty one and W. three were not prepared by the town for in two thousand twenty a similar finding was noted in the previous two reports the budget was not detailed enough to determine if the mayors and recorders treasurers salaries were authorized a similar finding was noted in the previous two reports. On page ten still in the mayor and record treasurer. Bank accounts were not reconciled properly bank reconciliations were not prepared for one fund as required by Arkansas Code a similar finding was issued in the previous thirteen reports dating back to seven. and the mayor and the report treasurer here to address any questions. Okay if you will of identify yourselves and then you'll be recognized to present your case. I mean this comes flying online the lamb and I'm the city recorder for what seek a again he said miss let me say your last name is lamb yes okay. And we have. Going back and re did the budget I got to the system with system on how to do the budget correctly and we have included the salaries for the mayor myself and we have higher CPA who's gonna come in starting next week and he's gonna go back is towards he has to go back to the all the taxes straight and get the water are done because the taxes were before the mayor and I got in there and he's gonna come in and start working on it and getting straight force so would be to have a clean slate next year. He's going to all the books force okay all right of mayor. I'm Linda Anderson the mayor website. And we. We come and. To this thing in the mail. And Really thank the June and I have no we've done you know what we can with what we've got they're available of. That that we've got to work with. To get it back straight. Now we have paid. I let her go into that but we have paid the district department all that money back as of this year. and it wasn't it wasn't showing it on the Report on a report but we have got that straightened up to four shows at night. But all that money had been paid that. I was not using the correct code when entering that I was transferring funds from general to St so that way that kept the auditors and being able to really pick up that it was officially paid but I have come back in and corrected that in. Good discourse giving them pay back their page street department with pay okay that includes a ten thousand dollars yes Sir and and what about the the fire training money that was an accident I accidentally deposited into general I do look at the bottom where it went to the fire department so we have we corrected the immediately okay next couple of days when we saw it I went back and corrected it so it is where it's supposed to be okay now what about the unpaid taxes to the IRS that's what the CPA is going to come in starting next week he's going to do all the taxes he's got to get our books reconciliation so we can start over but he will be in joint steps coming in to take care of that for us to get a straight so you don't have those kind of funds in your checking account to the panel of back taxes probably not likely not that we just trying to get it straight so we will know we can have start over and it can be corrected for us. All right thank you questions from the committee. John did you get your mind a minor. Okay okay you didn't wanna be recognized. Okay all right. Or turn back on go ahead yes ma'am one question for you nothing Mr human head on part of it you know that four hundred twenty eight eight seventy nine for payroll. Okay ma'am probably over a hundred thousand dollars it'll have to be split from somewhere to to pay that you thank you you folks can can get that straight now. Would allow the payment plans. we're going to do our best to get it done to get it taken care of that's. Metallic and we can offer right now is at best. A representative very. Thank you Mr chairman I I guess the question for staff but it seems like we're seeing more and more of not being able to remit taxes the federal taxes is that a common occurrence of the. The staff seeing in the field. You see what we see when we say that we write findings on it and it does seem to be that were saying that more there was another reporting here I believe it was free to this deal dating with that from prior years But we are we do seem to be saying it more okay thank you thank you Mr. M. and at it I can't figure out why they were made for the federal government on this. but that's it does seem to be have been occurring more and it recently okay other questions. Yes Sir. Representative fight. Thank you Mr. Where do you all have a you'll have a property tax millage the city. Yeah I don't want I don't remember how much it is but we do have a few ingredients in. You know how much money it brings in the year. not offhand. Okay I don't know okay we'll do and looking at this five thousand dollars and familiar. Mayor something like that okay. Looking at it all the money problem she got here it seems very difficult to be able to recover from this way it's looking to wait on the hard. Okay. The money is not there. Well yeah I noticed that you had a hundred and not in this report here but in another report that your head roads done from the state the state a project of a hundred and seventy seven thousand dollars is that correct. I don't remember that. Okay no more questions all right thank you a representative brown. Thank you Mr chair and this is probably a question for the staff what kind of liability exist when employees. taxes. Thank you so security what have you that's been deducted supposed deducted from their paycheck if that isn't paid into IRS and then they go to you know claims of security whatever and in their stuff isn't either reported or paid or whatever what kind of liability does that set the city up for or possibly our state. I don't know the answer that question that would be a question an IRS question but you think even when they went to file their taxes and they included on their tax return how much taxes withheld from their checking that that doesn't match the IRS records. That that would come out and as far as the liability to the city I would think that the IRS would be in contact with them to determine exactly how much. That would be and what and what their liability would be as far as the the actual taxpayers. So what is our state do when state taxes are paid you know no ma'am. That I think they do sometimes close the doors. Thank you. Okay other questions from the committee. So you think with time you can get some of these problems straightened out. And with long term payment plan G. thinking give all straight that it is possible warden you know a lot of it like I said I was a lot of this came in when I came me of when we came in. And she has done a lot of work. Goodness thank goodness straightened out. But you know if this. At all it back back to the we come in there if I don't know on the finances within the state they were in I would have a roll. I can't. But we have worked real hard and like I said I when I want me and I could by us our the salaries that they were given to my or I put it hi okay and I've done it for the last three years. And to try to help get this thing back right. So while work period of time I think we can get it back straight lot of uh and we'll find out what we get this the CP missteps the. Duties taxes for for we stand on it okay. Are any other questions from the committee. All right well thank you all for coming what's the pleasure of the Committee. That what this stand with you. Let's motion the second those in favor say aye opposed no. Motion passed thank you all okay thank you. Mysteel. The next report will be and reports referred to the prosecuting attorney on page fourteen is the city of Cabot. We have a finding that was referred to the prosecutor and one repeat finding the one referred to the prosecutor was it was brought to our attention that a firefighter was allegedly paid for shifts not worked I review revealed one firefighter had twelve shifts logged into the city record is what time she is during the period February of twenty through June of twenty one according to time she's a firefighter did not work but was paid for the ships the fire fire was terminated from city employment on the September twenty fifth of twenty one. All of the city's fire department employee handbook contained in section permitting firefighters to exchange work schedules the city allowed firefighters to be paid for shifts not worked for reciprocated we recommend the city obtained legal counsel to resolve the payments to the firefighter for twelve she has not worked and ensure adherence to its handbook. Other repeat findings under the District Court Clerk District Court deposits again or not made on a timely basis as required by Arkansas Code. In addition receipt composition and always agreed to the deposits for the bank. And we have the District Court Clerk here to answer any questions. Okay if you would the identify yourselves mayor won't you start first and with so I am not the mayor knows problems with the fire department I know nothing about other things in I'm sorry I'm clinic you on that district judge for the court okay what is your on the course behind it I did a visit with the mayor H. R. this morning in fact and it indicated jobs ask if they're gonna be here they'd indicated yes supplied a letter something from city attorney prep yesterday that they thought addressed it and they were not to be here so I I mean I can answer to make contact with them on their expected that I mean they're not going to be here they thought they were not invited today okay okay very good thank you scared us when that called us and said it's something that was referred to prosecutors. I'm Jennifer Veronica the court Clerk as far as the deposits we're on our second audit with context first year was a nightmare second year were finally got it under tow as soon as I had my exit interview with my auditor we fixed it we do our two to three deposits weekly I have a second Clerk now that's in staff that can do the deposits as well if I'm tied up with normal everyday duties as far as being a court and that kind of thing so from what I've been told we're. In the right direction and we should be good to go. We do that secure facilities in the in the courthouse and we do have varying degrees of a busy days so sometimes is not really possible for them to get out we do have sufficient staff like she indicated this is we're fresh in the context and that changeover has been less than smooth at times but the money is never been out it's never been accessible by anyone but the court Clerk you know I can't get to it but those issues have been addressed and and corrective action has been taken and the deposits go the same day as it's that goes to the bank the same day it was so like you're making an effort and whatever I want to be here again. What we don't the. Trying to. Prosecuted. Good but this one though what to truth is and war how we can fix the problems of any questions from the committee. Okay Senate it does look like you're making progress and we commend you for that and if there's no questions from the committee. you are excused and without further objection from the Committee this report or stand review. Thank you feel it's nice to put a face with the name. Thank you thank you all thank you. The next report we have a visitor for is on page nineteen the city of grubs and reports with repeat findings. There are the repeat findings under the mayor in the reporters Roger. as of the report that an audit or agreed upon procedures reporting compilation has not been completed for the water and sewer fund as required by code a similar finding was noted in a previous report under the recorder treasurer cash receipts and disbursements journals were not properly classified and non compliance with code a similar body was there in the previous poll reports dating back to two thousand ten. Invoices and supporting documentation or not provided for tested disbursements of two thousand three hundred ninety five dollars and seventeen hundred twenty one dollars and twenty in nineteen a similar finding was that in the previous two reports dating back to fourteen iris forms nine forty one and W. three and Arkansas department finance in America Administration form I. R. three were not provided similar findings that in the previous report and the record treasures here to address any questions. Okay ma'am if you will identify yourself and present your case to us my name is Sarah Bennett on the recorder treasurer there grabs and. Kempley honesty some of this stuff I would like that that the nine forty one and that if there is I was not shown trained to do that paperwork at all so I had no idea it needed to be done I have attempted to figure that out and I'm still in the process of figuring that out and where it needs to be filed and all that I ask him attempting to interrupt you there has the money been paid to the R. S. now I'm in contact with the lady named Helen I can't thank her last name and she's by said Oklahoma with ours and we are she is helping guide me through what I need to do to correct. All right. I didn't mean to interrupt you Sir the school it. What else donated address I'm sorry anything you want to talk about on this report there's several findings here if you don't want to say anything about when the sale through. Trying to remember all of them I can okay parking got me confused I left my book in the van I'm sorry and I've worked way far away so I don't know if you already something back that I didn't. After that is going to give you a copy of it okay thank you. Thank you care okay I appreciate that okay. As for the mayor he's not here due to a funeral and they agreed upon procedures we're trying to find a CPA with all it within our price range to be able to get those done and completed properly and and finding one locally because the one they used previously was out of either con mayor cabinet and that's kinda hard to do and. When they say oh we forgot the asset that the back and forth and that was a bit much and so we're trying to find somebody more local for us and we've just not located somebody that actually does it for us they're not obeying Newport or somewhere like that they could do this one what we have found in Newport at they're saying they don't duties okay and that is we're branching out looking in Jonesborough at this point okay and that that's a little bit more feasible than that like I said Conway and Cabot I don't remember exactly which one it was it seems like it was cabinet but don't hold me to that place okay. And. The cashier season disbursement journals were not part properly classified M. F.. Not this audit the one before and I was just going off of the way that the previous lady had done it and how she explained it I didn't completely get it the auditor didn't help explain anything and whenever I did ask questions she did tell me I can ask questions she didn't. Clarified in a I apologize for the way this ends in a dumb enough way that I understood. Just complete honesty that didn't the auditor that just finish this one. She understood that I had to be down to my level I'm just a country girl with a high school education I'm doing the best I can and and she explained what I was doing wrong and whenever I asked and she was she was a lot more helpful and Ted to the degree that she could be and and I am getting those fixed. And the invoices and supporting documentation that two thousand three hundred ninety five M. that specifically was a speeds at a speed limit sign that tells you your speed M.. I have the receipt in there and when she requested it I looked for and it was gone I can actually reprint that because we order that online and. The rest at the seventeen twenty one I'm not sure. And. Address. Is that everything any questions yes ma'am okay okay any questions from the committee of represent love. Thank you Mr chair this deal these are these are repeat funding yes. I'm not I'm looking at the the responses. What what are the responses any different than the previous year. I would have to go back to the previous year work papers to find that. Okay and women. I will just be interested in in looking at the previous responses to see if they if they differ Looking at the and Health ma'am what is your name Sarah Bennett miss Bennet it seems to me that you are doing your your best but it seems to me that you're a little overwhelmed I am the only person in the office doing this stuff so yes Sir I am overwhelmed at work a twenty six hour work week and it should be a lot longer but that is what we can afford tell me this are you are you getting any additional training to assist you with and the lady with the IRS is actually showed me so the website is where to go with the leak something she's been very specific and helping me with that and and she has even branched out to telling me and like other ways finding things for the state as well she she's been very very helpful have you reached out to the Municipal League for any additional training. Canali cash said I don't get a lot of responses and and so it's kinda added that discouraged me early on on even reaching out just complete honesty okay I'm going to be the Jack is right over there in the corner Jack is amazing. Yes. And that of that also understand he's a busy man and I hate bugging him I like to try to figure out who I need to call with the Municipal League specifically instead of just you know using him as a courage if that makes sense we're going to have the need for you to use that as a Christian because the thing about it is if there is a repeat findings we need to to get the address but we need you to get. Rain that I think in this I think that's the only thing I think that you'll be able to do the job if you get trained on it and so Jack in here so check if you can assist this miss Bennet again training that other than that I will I would like to see the responses just when the previous. If you would like to after the meeting at ten AM or Joe can pull them up and showing to the okay thank you thank you Mr chair okay and the yeah previous previous mayors do have assets and knowledge It you can call anytime you want to. Knowledge yes. okay president ram. Ms Bennett I just want to tell you that you're not dumb and it will really appreciate you working to try to get this taken care of somebody's talking over your head or use lots of jargon you tell him to slow down but plain English. Well I I go step further not held the country five because I'm from out there we all have to learn thank you thank you very much representing the group did you have a clear. Okay I saw somebody has a hand in any other questions from committee. Misspent thank you for coming today we we think that you're doing a good job of trying to fix the problems and and I commend you for it and uh disk hang in there and get it all done in the maybe you want to come back over here I hope not. Working is awful. Thank you all right of with with that you can be excused and if there's no objection from the Committee this report and reviewed. Mr your moving on that was the last report that we have visitors for so if you want to go back to Page one will just kind of catch up I guess we should probably do the ones referred asking and turning them von was first so on page eleven we have Fairfield Bay. there's a this was referred to the bond board under the mayor reporter treasure. This committee want me to read that whole finding our main you can listen to me if you want to. Where all can see and read. The space brown has a. But she's. Okay okay. I would be happy to try to address any questions that you have about this basically the EMS captain was using the city credit card for personal purposes. And there was in a sum money also by other EMS personnel on another credit card. The question but the mayor says that they've implemented corrective action and then again This Is been referred to the bond for the prosecuting attorney. And and some of the charges were not necessarily first for their personal use but they couldn't be documented for a business purpose use so they'll have to go in the same category Fairfield Bay got lots of problems this did one of them and Mr cochairman you've got a question yes so that. I'm assuming the guy was fired and the information was sent to the prosecutor for charges as far as using personal funds are from a public funds for personal use it was sent to the prosecutor The prosecutor does with it naturally is that up to them but we did send all it we did send the finding to them if they request any assistance from us we would be happy to help in any other way we got a status of these push for charged or anything when was this provided to them and what's the timeline on that the letter would been provided to the prosecutor any when this was mailed out to you guys we get mail it to them at the same time okay and so they would have just gotten it like in the last week last week okay our. Okay other questions from committee. I've got a feeling we're going to have Fairfield Bay in here Senator later to answer some of these questions because I do have a lot going on up there a lot of problems the sole misty will that we need action on that one. Just okay without objection will file that one. Okay so I then the next one of the on page thirteen under Columbia County this was referred to the bond board as well under the share of cash receipts exceeded cash deposits but thirty two thousand in the share bond and fine account from January one of twenty to September fifteenth of twenty one and receive the checks of twenty one thousand were included in bank deposits to potentially conceal some of the an account for cash the bottom line Clark whose employment was terminated on September fifteenth was custodian of these funds. does anyone have any questions about this one. Yeah okay. The same thing I guess we got somebody who's been. You can funds and and try to cover up with the divisional funds. Basically what this was they were cash receipts exceeded what was deposit by thirty two thousand and all of that twenty one thousand Was like a cash subsection except cetacean. Like. Someone who paid with the check the necessary to receipt and they use that receipt to reply to account for some of the cash they didn't deposit it's kind of a shell game. but the total amount missing was a thirty two thousand and the person who is co starring has been terminated and it's been referred to the prosecutor. Well if it. Jimmy did you work on this if you have Jimmy could answer any more specific questions. So it looks like. This person was running the shell game or they were taking the money put in your pocket that for the receipts and they're using some of the checks to make up the balance in the bank account basically pretty much the the we find substitution literally all the time but like Marty said the I don't have any bills like thirty two thousand is the actual amount medicine but she is that twenty one thousand of and receded kicks in there just to try to hide the missing cage or the fact the case was missing. Mr chairman I would suggest that we bring somebody from that county so they could at least explain it public how this happened what actions are being taken maybe named individual in a public setting so. We could actually have this out there rather than just be kind of lost in the shuffle report because they were taken thousands of dollars and put in your pocket I think that needs to be brought to light more public fashion okay so your motion is to differs report to the next meeting and request from Columbia County comes because. Would you like to share to be invited this was in his office yes ma'am Senate somebody worked under his direct control or direct the wordy. That's what it is that right to me. But she was terminated the date that we brought it to the sheriff's attention so. They really want anybody else other than the sheriff to speak on and I would appreciate that. Okay we have a motion and a second to invite to share to come to the next meeting we got a a motion all in favor say aye opposed no motion carried thank you. Okay and continuing on reports required the prosecuting attorney we've discussed cabinet on page fourteen so on page fifteen we have the city of Lepanto. Under the mayor Clerk treasurer in police chief we know discrepancies surrounding payments the city made to the police chief and one officer for compensatory time. Adequate supporting documentation for these payments was not maintained time she's provided contained clerical errors and did not always indicate on which days hours consider compensatory time worked the police chief time she's not contain supervisor approval to certify accuracy compensatory time appears to have been armed concurrently with sick leave which conflicts with the department of labor board calculations standards several compensatory time payouts appear to have been or uses policy and due to improper record keeping we were unable to place a dollar amount on any potential overpayments. Does anyone have any questions about this one. There is a right. Thank you Mr chairman Mr Marty have they have they gotten it straightened out. The responses there under needed that the Myer is now signing time she's before payroll checks are issued as they said they put an end to compensatory pay the cheapest salaried and not and not do any comp time from this point forward as far as other officers are no longer do compensatory paying will pay overtime each week so it sounds like from their responses they are addressing the issues thank you. It was. What is the What was referred to the prosecutor. Is it because of the violation of this labor standard is a basically double charging this the city basically they're paying out money for an com time earned without any documentation they're basically paying people with no. No documentation as to why they were Payneham I mean that time the time sheets basically is paying people without proper authorization. Okay. And I getting sick but even comp time at same time. So you get paid double for that. Of any questions other questions from committee. Without objection then will review this one consider this reviewed. Okay all right on the same page still under reports apart the prosecuting attorney under the mayor and police chief the city of Nashville a city employee was allowed to take a hundred and six hours six hours of sick leave before the lady was earned this arrangement appears to conflict with article twelve section five which prohibits cities from running their credit to any individual subsequently the employee accumulate the correct number of hours to eliminate the negative leave balance so even though they did. Actually given advance leave he did after that are enough to more than make up for that. Okay so that one has been corrected according to the National. A question from a committee. It is say that's what they say. All right so you have no other questions without the Jackson we will mark this one is reviewed. On page sixteen cylinder reporter for the prosecuting attorney we have Cleveland County under the county judge the county disbursed funds selling fifteen hundred dollars to the American red cross of the contract for services an apparent conflict with article twelve section five is term as interpreted by Attorney General opinion number nineteen ninety days ninety nine. I this is just like I say aye I went to a nonprofit without a proper contract. And they've got it straightened out now you think. Marty. Yes Sir their responses it before they do that again though and enter into contracts okay. Any questions from committee. Seeing none without objection is somebody reviewed. On the same page under the spider goose can't water users association this was a private audit done by the king Jacobs in or being CPA's to disbursements to an employee were not adequate documented one disbursement was a credit card charge for personal expense employee mistakenly used a company credit card this charges posted to employee receivable has not been repaid there was no documentation of approval for an employee loan another disbursement was a check made out to an employee for five hundred dollars to pay to cash to pay a vendor the vendor was not subsequently hired there's no documentation to support this check. and the response was that the employee is set to reimburse the company with the SEC payment about each month and the five hundred dollars was led in the cash drawer but has since been re deposited to the bank and again this was done by privacy PA so this is all I have. Okay. Questions. Yes Sir okay you're recognized me for a. Mr Marty that five hundred dollars. Of for the check to an employee to pay a vendor or what happened to that that's the one that they said had been left in the cash drawer but has since been redeposited. It went when we get reports like this that we see findings that if we did the report we would part of the prosecuting attorney we we send the finding to the prosecutor just like we would if it was one of ours but as far as any specifics to it would if we have questions will call the CPA firm sometimes just to get clarification because sometimes findings a look like there might be a shortage but when we talk to the CPA there really wasn't but this one And when when it when Charlie talk to and that they didn't have any problem with us doing this so. All right this one then this is not our normal a report that we get so I was given a lecture time. to make sure that everyone is comfortable with this any questions. Okay saying none without objection we will mark this from reviewed thank you. On page seventeen under reports regarding processing a tourney we have the city of rock port under the mayor and police chief fines and costs revenue of three hundred eighteen thousand exceeded thirty percent of the city's total expenditures in the preceding year by fifty three thousand and non compliance with code. The revenues generated by traffic offense citations written by or rest made by the city's law enforcement personnel or from ancillary actions related to the enforcement traffic offenses according to the police chief a portion of the revenue was from State Highway amply citations however the city was not able to provide amounts. So this is like a speed trap finding. And their response says that they're working to ensure this is corrected but they had printouts of charges from the state police in the highway police that included that were included in that thirty percent expe percent overage. However they did provide we could find the number of charges from the state police and highway police but we couldn't the city could not shows how much of the amount actually collected was from them that went into our calculation This is I couldn't document that we just use the entire amount and just Added that to the finding that the to give them credit that the place she did say that some of it came in the state highway police. So this is been turned over the prosecuting attorney and the prosecutor will determine where to go from here. Yes Sir. Senator Johnson. Thank you for let me ask questions Mr chairman Marty this is the on this is the speed trap law that this kind of a rebuttable presumption if a high percentage of your revenues come from traffic pies that you are a speed trap now is there an exception for that for tickets written by highway police and state police is that spelled out in the years so I mean it makes sense that you might have some discrepancy but is it in the law. With Mister Hillman was in my office earlier and we look at it and it the law is fairly vague I mean eight if it's in there I did not see that it made an exception for that. On the flip side you could say that city would have no control over how many tickets were written necessary by the state police but again it is kind of vague and so we just take the total fines and costs revenue when compared to the prior year's expenditures to to see if there could be a problem and then we'll get to the prosecutor to determine whether not to go any further yes ma'am I've had one of these little communities in my district and I very sensitive to it perhaps a chairman Hillman I can work to come up with some clarification for the twenty twenty three session again present we get reelected I guess chairman but at this is this is Curtis troubling but I can understand the mayor saying gosh it was all those state troopers and highway troopers that road not us but but it I agree the if it's not clear we need to get clarified thank you for your answer thank you for let me ask questions Senator put Senator they cashed the check. That was that was that was my point when Marty now we're preparing for this meeting today was the they accepted the money and if and they couldn't document how much of it was for fans and bonds rather than just they just took all the money in check so I think we probably do need clarification on that I don't know that. That if if it was clarified they would fall under that speed trap law but they might. If the questions. Okay see none of. Without objection will review this report. Thank you. Okay so that was all the ones referred to the prosecutor of on board so now if you want to turn back to the first on the first four pages we have the town of all port for nineteen in for twenty. the last few meetings the committee has decided those since we have not gotten any word as to what's going on with all port and. As far as the price of the attorney general's office is concerned is the committee wish to continue to bar those. Yes we do. Okay then on page five so we have the city of green way the mayor had to repeat findings the council is not document the review the previous report accompanying findings and they had They had had their water in in sewer audit done. The mayor has sent documentation that these findings have been substantially corrected and staff would recommend filing this report. Okay without objection. On page six we have the city of I'm free we have repeat findings under the recorder treasurer who was invited to this meeting I did not hear from her. It would be up to the committee whether to fire this and ask her to come again or to file without objection this will be deferred to the next meeting. Okay if you go to page nineteen the in. From page nineteen to page twenty three we have sixteen reports that have adequate responses if anyone has any questions about these would be happy to talk about them otherwise staff would recommend filing these reports. I see people turn pages so wait a little bit. Okay it is your objection to filing these reports. Sh so without objection then they will be receiving filed reviewed. On page twenty four and twenty five we have sixty reports with no findings the staff would recommend we favour as well. Without objection those will be filed. The sheriff. I'm sorry they remind me I've skipped right over Newton County is on page ten. As this report was originally presented in November and the committee wanted to speak with the county judge and the share of the county judge came in January and the sheriff requested to the fire he sent a letter. saying he could not attend. Of which I sent to the chairs as well and I'll let Mister hill and Mister garner. Relating the information there and let me decide what they want to do okay at to refresh for fresh all by memory on the the sheriff if you remember he did he had a lot of weapons it seized and it took of the pawn shop and sold them and we thought maybe that that wasn't the right procedure to follow in the letter he states that under some code in Arkansas law he has a right to swap in other words sell these weapons and and get a Hey Of. Credit with that company to buy things in the future that's his stand on this Our research and judge you can laugh if you want to but our research says that he used the wrong law and trying to do this that it wasn't done properly and so it's up to the committee to decide if you want to have them come down here to explain exactly how they can do that why did not from us before you settlement pawn shop. German yes all review letter the Cody talks about does allow for a cease fire alarms to be done at a federal firearms licensee for credit and as base with the law says so it does appear in a that is law unless there's another code section conflicts with that. The code section he referred to in the letter. The way I reading of course I'm not a lawyer but I also asked Frank appears to deal with weapons seized from minors and there's no we don't have any documentation is to know where these came from and when I asked the supervisor and their responses that these had been accumulated over many years and that they didn't have any idea where some of them had come from the law that we quote the law that is cited in the finding and. Was it five. The. Five five three one thirty. Nice number one thank you where is it okay five. Yes five five one on one that one list out the procedures that you're supposed in our opinion the procedures that they need to go through to properly dispose of the weapons. Again it said this was not a repeat finding the committee requested that they come. It whatever the committee's pleasure is is wielding. Well law itself and I'll. Including its it is dust or for a person under age eighteen and has many code section the the overall title of it doesn't reference being under eighteen just seizure forfeiture firearms forfeiture of motor vehicles but and deposition of the property sees here's my thing I I it's arguable you know I do more research I literally look this up after getting the letter states whether this is approved or not but we don't know. Where those guns will crane from how many years behind I want it's about a hundred seventeen dollars per going is that the best deal and if this is gonna be a policy that shares are going to do is that going to be the best way to do it after you see the firearm we don't know because this this has a whole host of stuff they have to go through procedurally before they're allowed to even get to that point to say it sees. Also just be born on like to share some as a letter if we asked him three times to come down here to kind a hand wave us so you might be right on the I know we can have the argument but I'd prefer for him to come down here and tell us and self while a hundred plus going for so and even if you read this law as it is it does not say anything about a credit for a for a vehicle through a third party I don't think that's a stretch to law even if you take it his interpretation so I'd love to see him there that's my take on it. Other questions from the committee. Okay. Represent Clowney. Thank you this is actually not about the sheriff but at the same reports I'm just sort of on a flag instead This is our corporate finding that they were improperly collecting probation fees do you know I'm glad that they've stopped I'm glad that there was that that that was their response but what happened to the fees that were improperly collected from folks that didn't in fact them under Arkansas law. That is something that we would have to get back with you on I go back to look at the work papers and talk to the auditors to see that would be happy to do that thank you. Iraq. You know Mr chairman it just doesn't seem like it's right procedure I don't know myself exactly what would be wrong with it but. Hello can you sell those guns gave those guns and get a credit what is that business went out would would would would the sheriff's department in the county would they would they lose all this on record of having credits with that pawn shop because I think that's a good question. The way I would imagine this was written this purely speculative is that you take your old firearms there to a park to a federally firearm licence age which it out for brand new weapons and so would be a you get new followers for the police department through his credit surprise via instant transaction I imagine that's what the law was written solely to refurbish to your new weapons out is this a good laws is the really interpretation is it just juvenile was a document correctly was weapon sold at a fair market price all that transportation of this not a I don't have answers that. Okay but it does says and and they're saying the law credit for future purchases now that my main immediately but it doesn't specifically state that means immediately so I think you've got a. Apartment question. You. Yes Sir Mr chairman I'd I do know that in most cases like if a county has excess guns if they're gonna trade or whatever they do most in most cases they don't have it like an option. And they'll get the highest they can get out of that option but I've never seen it. Traded like created a. Hi John. Well and this is just my opinion it looks to me like that the sheriff in the pawn shop owner decided what those weapons were worth and may trade on and that's to me that's not a good way I'm not a lawyer but it did pass the farmer smell test. Okay we have a motion to invite the sheriff back and a second to the next meeting on April seventh all in favor say aye. Posed no. Motion carries and we would do that anyone else have anything they want to bring before the committee. Seeing none of Mister chairman do you have anything else you want to. Okay then with that we are adjourned at thank you all for