Legislative Joint Auditing-Counties and Municipalities
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to raise money from have gifts given to needed needy children in the state and we will gather gavel back in promptly in 20 minutes so that'll be 10 minutes till 2 but right now we're going to take a 20 minute recess. Thank you.
Speaker 5
26:53
businessiness that I hadn't heard of don't know where they all are but
Speaker 6
26:58
I've heard of all of them just about members I believe we are ready
to get started I thank our 20 minutes is up and maybe even a couple of minutes past that but I was going to ask to see if Senator Crowelle would open open us up in a word of prayer dear Lord thank you so much for today thank you so much
Speaker 11
27:20
for safe travels and this season where it
Senator Steve Crowell
Unverified
27:25
all started where you were born Lord we just ask you to watch over us today as we do the people's work and keep our hearts and our minds clear for the right decisions in your
Speaker 16
27:41
name Lord we all pray amen amen he's not here for you no I'm going to do it well I believe we're ready to get started this morning but before we do
I want to take just one moment. I was thinking about
something when I look down therere representative McIlroy whatever we do in life when we speak we give off nonverbal communication and even what we're just sitting quietly minding their own business we give all nonverbal communication representing Mcellroy I just wanted
to ask you exactly what is your sweater saying this afternoon and that's good
Speaker 18
28:17
enough I guarantee you you have the Christmas spirit
with that being said the first item on the agenda will be the
approval of the minutes from the motion motion all in favor say aye ays habit and I want to recognize staff for the
following agenda items didn't matter
Speaker 22
28:43
update on private reports delinquent reports from December31st,2022 for water and sewer Since ouroctober meeting well the the lift that was emailed to
Speaker 23
28:57
you on Friday. there's been two additions to it now we have a dish a total of
Speaker 22
29:04
12 entities that are in compliance since we started this process in July and that's an additional7 more so we've got 12 out of the43 that letters have been delivered to the treasurer's office and they're turnback has been reinstated I reached out to everybody that was lacking a 2024 report in
early November. I have made contact with in some manner didn't talk to them all right then but I have made contact with everybody on that list except the city of carthage and I believe they're in the audience today so we'll check them off the list here in a little bit so we have reached out to every one of them since November5th.
Speaker 23
29:49
The we're down to we've got 10 that have additional that just lack their 24 and3 that have filed their 222 so we're
we're down to31 that are still being escrowed. Mr Chairman that's my concludes my
report without objection we'll file the report see
Speaker 23
30:12
none thank you Mr chairir. adam adamd is the 2023 delinquent water and
Speaker 22
30:18
sewerri report. we started out in July with64 on this list. now we're down to7. so we've got457 of the64 have been filed
Speaker 23
30:30
and these are not currently having their escrow their turnback escrow. Mr Chairman that concludes my report.
without objection we will file this report see none my ducks in
Speaker 22
30:54
list is the discussion of Act709 of2021 repayment of street fund misused street funds by the city
of Carthage with the chairs permission I'd like to go ahead and present this report go ahead on pages7 through 9 under reports referred to the prosecuting attorney and the attorney general's office
we have the town of carthage 2023 2022 and2021 under the mayor and recorder treasurer
the town paid the recorder treasury position more than the
appropriated salary is shown below in noncompliance with Arkansas code. Over700 dollars and $174 in2023 and22 respectively due to the former recorder treasurer training and assisting the new recorder treasure without an amendment to the budget. and almost700 dollars in2021 due to apparent budget error and additional payroll check to the recorder treasurer cash restricted for street purposes totaling $19,306 was
transferred in 2016 from the street fund to the general fund without supporting documentation as required by Arkansas code 277207. and the prior engagement $800 was transferred from the general fund to the street fund and during 22 and21, the town transferred400 dollars or 2% of general fund revenues and $1300 or5% of general fund revenues respectively from the gentle fawn to the street fund as a result of these transfers, the
balance due to the street fund is $16,806 at December31st,2023. the town has not passed the ordinance or resolution to repay the streetaty fund or has not obtained authorization from the legislative joint auditingittee for repayment of less than 10% of general fund revenues annually in compliance with Arkansas code 277207. this is a repeat finding dating back to 2016. underder the mayor as the report
dateleslie audit and a law enforcement agency or in the process of investigating certain financial transactions of the city which will be included in a subsequent report the governing body did not review the prior year report or company comments and recommendations at the first regularly scheduled meeting following the receipt of the report noncompliance with the Arkansas code this is a repeat finding. The town is noncompliance with the Arkansas code 1458202 and203 as noted below
Budgets are not adopted by ordinance or resolution 2023 the general Fund expenditure is exceeded appropriations by almost $9500 or30% 2021 gentleman street Fund expenditures exceeded appropriations by over 17,000 or77% and over 10,000 or38% respectively this is a repeat finding continuing on page eight
under the recorder treasure a review of disbursements reveal that supporting documentation was not maintained for the following disbursements noncompliance with the Arkansas code Over $1300 over $2800 and542 dollars dispersed in 2322 and21 respectively due to the lack of documentation the validity of these disbursements could not be determined Over $1300 over $1600 and432
dollars dispersed in 2322 and21 respectively to vendors that appeared to be for legitimate business purposes however, supporting documentation was not available. County procedures for municipalities are set forth in Arkansas code annotated 1459101 through 119. the town was a noncompliance with these code sections and other proper accounting procedures as noted below. annual financial statements were not published or posted. it's a repeat finding repeat finding dating back to 2012.
Bank accounts were not reconciled. This is a repeat finding.renumber receipts were not issued. This is a repeat finding as s per ceased journals were not properly maintained to include all receipts and were not reconciled to total deposits per bank. This is a repeat finding cash disbursement journal were not properly maintain to include all disbursements and were not reconcile the total deposit the disbursements per bank. This is a repeat finding Aggred upon procedure report for the water and sewage system was
not obtained and noncompliance with the Arkansas code. similarmilar final was issued in the prior three reports dating back to 2016 continuing on page nine the following issues were noted during review of payroll records RS quarterly 941 reports were not provided for 2023 second quarter, third quarter and fourth quarter and 2021 1st quarter and third quarter. This is a repeat biing
ed er taxes for 2023 3rd quarter were not remitted to the IRS. The amount could not be determined due to the 941 report not being provided. This is a repeat finding as the report date it appears the town owes IS for delinquent payroll taxes, penalties and interest from 2016 to present totaling $9,358. I believe mayor ShawnRandall is present today to answer questions if you come to the end of the table please sir and recorder treasurer CassieRandall
Speaker 33
36:47
was also invited but she called and asked to could we defer her portion MayorRandall would you
Speaker 35
37:01
state your name and position for the record please
MayorRandall mayor of carthage Arkansas do you have
Speaker 37
37:06
a statement that you would like to make just just
want to answer some questions right members does
anybody have any questions that mayyorRandall? I'll give everybody just a minute
to digest the report it was pretty lengthy and they just need to maybe need a moment to think about it and come up with some questions and see what we can do to get the city of carthage into compliance
Well here are no questions from the members I have a question just how do you expect or
do you have a plan to pay back the street funds that you're delinquent on
Speaker 37
38:13
or that you have spent erroneously yes sir I've been mayor since 2019 and that when those funds was transferred over to the street department those funds were earmarked for the general fund. I think that was done like
Speaker 45
38:31
like we said earlier that was done in 200616 so I didn't have any kind of oversight as far as having that money directed to the correct place but what we've done uhir since I've been mayor you know
Speaker 37
38:45
we started out real real strong you know I assessed a lot of the problems that our city was going through and that was one of the big things that I looked at and we got on board and and and I heard you earlier
but you know it just me sitting here thinking I thought we had done a resolution in order to start paying some of that money back but we did start paying some of that money back then through you know some different sit situations you know we kind of fell off from it but recently we just started paying some of it back and that's that's on record so yeah that's just an issue and and it's it's been several issues you know taking over a
city and I'm not blaming anybody that's that's not what I do I just try to come in and try to take the best approach that I can take you know to try to fix fix the issues butir sometimes when you come in it's so so many things and it's and it's not that I you know went to a certain school or had you know formal training on how to per se be a mayor I came in it's just particularly trying to be a community leader
and so but my thing is to try to correct every issue that the state says that we have to correct we just have so so many things that I have to take time out for it you know to try to make it there there but like I said recently in the past month we've made some big transfers from the general fund to the street fund to try to knock down on cause I think we're since I've been mayor we're we're the ones that knocked it down from 19,000 down to 6000 and so like I
said in the past month or two being that our funds were taken from the street due to a think it's some which I know the water department has to do do our court ouru water audit and we're working on it now so the general fund has had to help out the street fund the past couple of months and so that's how I got back onto ok the general fund owes the street
Speaker 45
41:00
fund and so we've been paying that back lately the past couple of months
OK mayor I'm going to recognize Senatorhammer. he has a question thank you Mr Chairman
Senator Kim Hammer
Unverified
41:12
Mayor thank you for being here. I really want to ask staff to clarify something who was it that was asked to be excused through a
court of treasure we're a quarter treasurer yes and the only reason she's correct me wrong Mary
Speaker 23
41:25
she's fairly new right? sir she wouldn't have been invited other than for the street fund repayment issue that's she didn't none of these repeats are under her but we went ahead and invited her so if she could shed any light on how we could
repay this but she was the recorder treasure that has to be to
Senator Kim Hammer
Unverified
41:42
defer OK and can can proceed feel free to mayor in looking at the in
looking at the report I guess one of the questions I have is you've been mayor since 2019 the previous
recorder treasurer how long was he or she in their capacity I think she was with
Speaker 37
42:00
us sir I think for about a year so I've I've if
I recall correctly she was with us ti
about 2020 so about I would say about Septemberoctober of2020 somewhere up in there ok and and you know we all know the buck has to stop somewhere you're
Senator Kim Hammer
Unverified
42:19
the mayor so he gets to stop with you but I'm wondering how much of how much of
the findings in this report are attributed to previous employee employees because you're looking atirRS quarterly reports not filed and you're looking at several things and
I'm I'd just like to hear your thoughts on that
Speaker 37
42:43
yes when I became mayorir in 2019 you know we was we was behind on taxes then and not not to put all of the taxes on the prior adminis administration it's still some taxes that we've accumulated since since I've been mayor that we haven't really you know had a chance to get a hold of because we've been kind of concentrating on the past taxes once again
when I first became mayor that was one of the things that are also looked looked at and we started out strong sir you know I was real eager started you know paying back a little bit to our ours and then once once again you know just kind of just got off got off track on it you know it's no no excuse I
Speaker 45
43:26
mean I have a table full of stuff that you know I got the cipher to try to you know get get back
Speaker 37
43:33
on track but yes that is definitely one of the things that we need to definitely get on track again
and start paying down what's your
Senator Kim Hammer
Unverified
43:44
total city budget? do you know right off no I don't as far as the ability to repay
and not fall behind you have enough income to be able to meet your obligations do you
think you know we could always use you know more
Speaker 37
44:03
I I'm not gonna say it's
is an excuse to say that we can't pay anything but you know
Speaker 45
44:13
it would always be a great help if the city was you know able to do a little more you know we the sawmill just opened up back down there so it's been I think we've been receiving some taxes from the
Speaker 37
44:24
salt mill which has been awesome to us so no sir we we we just you know whatever funds that that the city is getting we're just gonna have to allocate some of it you know to try to pay back some of the things you know that the that the city owes
ok thank you. right May oh I'm sorry uhpresentativealby go ahead. Thank
Representative Carol Dalby
Unverified
44:51
you Mrir. I'm I'm just curious I I mean I quickly added up and and it's it's rounding but if you take the turn
back and you take the exceeding the appropriation your expenditures exceeding that what you owe the IRS and
you're up to $100,000 that you owe and this is dating back all the way 10 years nearly that you're owing so I guess really my question is have you ever considered the city ever considered just dissolving and letting the county start taking over some of the responsibility that type of thing because we're talking $100,000 in a town that's 222 people according to our report so I mean and I understand
you said you've had there's problems and you've taken over but you've been there since what 2019 and so I mean it just seems to me that this is a a mountain almost too high for this town to climb and at some point in time these bills they're due and and so if you're not ra are you raising let me I'll get to my question are you raising taxes are you raising water
rates I mean what are you doing to raise the money to get this all paid back yes
Speaker 70
46:24
ma'am you saying 100,000 in taxes when I look at you had you
Representative Carol Dalby
Unverified
46:30
you've paid some back on your street fund that was 19 and
you paid it down to 16 so that's about3,000 so if you take you you take that and then you had general fund expenditures that were in excess of the budget and you add those up
that's roughly40,000 and then you have the disbursements that that were over the amount that was around 10,000 you haven't paid the Dallas Coun ty treasurer for election costs for the years 232221 well 14 through 22 and then forward so you've not that's not been paid and then you had the IRS just the IRs not talking about the state that's
right at30,000 dollars so I mean my question is is that's a lot of money and you don't have a lot of people what are you doing to raise the money to pay these entities back when I first became
Speaker 37
47:33
may 1 of my things was you know just looking through the city of carthage we didn't have a tax and so I worked hard and I got the tax passed you know put you know got it put on the ballot I never have been done in the city cautious history so I got that done and right
now that's generating by the grace of God anywhere between I don't know the checks that that the city has received anywhere between I guess 26,003,200 month so so that was a real big thing for the city you know to try to generate cash to try to take care of these bills some some of those numbers I think it's kinda you know I'm not saying I'm not going against what you're saying you know as far as you know the how the numbers add up
but as far as what I've looked at you know for the city of Carthage is I think the city of carthage can definitely get get back on track when you come in you
Speaker 45
48:35
know one of the biggest things that I thought about ma'am and I hate to kind of get off track was one of the things that I saw when I
Speaker 37
48:45
came into it I didn't realize how much we were behind so you know I did a lot of you know it was a lot of miscellaneous
stuff just small stuff leaving the gas on the side of the city hall when during the summer you know so I cut down on that in the in the city of carthage we actually saved up some some money then we got you know embezzled one of the clerks that we had there all that money and all the accounts that we had saved up with the plans that I implemented first I started inside the city first OK what are we doing here that you guys are not keeping track of that normally adds up at the end
of the year so I cut that down OK we got a bank accountu up and you know we was moving real real good all of the plans that the tax was passed to generate money because my whole thing was hey we gotta pay down some of this stuff then we got embezzle for over50,000 dollars and and I hate to re off here the bank put the wrong put the signature card in wrong that gave this clerk the opportunity to go to LittleRock and he drawled out all cash so we went back and forth with
the bank so that just basically wiped away everything that I worked hard hard for OK so now after that happened to us now I got to go back into this and say wow man you knowlord I pressed hard you know and it is one of them things where I know what the city needs to do. I believe in my city and I believe that we're gonna get on track so back to your question ma'am as far as that you know the tax was passed which is a great great thing and we're you know going
through other other little things that that we have talked about as a community you know to try to get some extra funds in there you know to definitely
Speaker 45
50:36
knock down on the debt that the city of carthage owes thank you I I appreciate that my suggestion is you might consider dissolving
Representative Carol Dalby
Unverified
50:45
as a city that might be the most helpful thing thank you appreciate it thank you ma'am I believepresentative Rye has a question
Representative Johnny Rye
Unverified
50:59
yes sir do and thank you Mr Chairman. Sir, on page se about halfway down through paragraph number 2 it says in prior engagement $800 was transferred from the general fund to the street fund in 2022 and21, the town transferred400 dollars which is 2% of the general fund revenues and then it went on to do5%
which is 1,300ir it sounds like the budget is only about $20,000 a year for the general funds is that is that possible if if because that400 dollars represents 2% and if you add that up it's $20,000. that's correct gosh I just don't
understand how you can operate I think it's
Speaker 36
51:53
a little more than than that with you know some
Speaker 45
51:59
of the monies that the city gets but if that's the numbers that's that you have I'm not quite sure an exact number at the moment but you know the city can operate I don't I don't I don't really think
Speaker 37
52:13
it's an issue of can we sustain through the plan that was implemented like I said earlier
Speaker 45
52:19
it it was funds that was generated like I say when I go back to to the tax with the history of that city and I'm not
bragging on anything it's just something that I believe that the lord gave me to come up with some ideas
Speaker 37
52:36
and when I assessed it it says hey the city has never had a city tax and so as I assessed it I said well if we get this city tax passed and everything that's that'd be more fun so as as far as you know the city just shut down no
Speaker 45
52:51
no no I don't don't think it's that serious I just think it's more of getting everything back on track you know
Speaker 37
53:01
we operate in a small city like that just like you you guys know you know for these positions that you need help with sometimes you don't keep people on and most of the time they're not really you know perca per per se train and so it's no excuse but it it's just one of them things that sometimes the mayor winds up doing a lot and I work a full time job you know it's no excuse
but you know I think that you know once we get back on track when the when the50,000 dollars was stolen from us that we got not a penny of that back well excuse me sorry about that I think they gave us back the ACH debits because he took our our debit card and tried to do some purchases and those were the only funds that they gave us back so the funds that we had saved to try to handle some of the business and move forward as a city those
were snatched from us and so when those were snatched from us it's like boom wow why did this happen? but it happened yeah reckon go
ahead I'm sorry I want to recognize Senatorhammer. I believe he has another question and mayor you may have
Senator Kim Hammer
Unverified
54:24
just been talking about what what funds were you talking about being snatched away from you general Fons and street funds ok yes sir iss that attributed to if I if I'm looking at my information right you're also on the water
audit report correct sir and so you're having your funds withheld now no just on the
Speaker 37
54:46
I think right now it's just the street side fund which is the turn back funds those are
Senator Kim Hammer
Unverified
54:52
being yes gram how much how much is that it is that that 19,000 or part of that know how much are you having withheld held back it's it's it's different amounts so
Speaker 45
55:09
$1500 turn back check so much you can be an 8 or to $900 turnback check but those you know you never know what the state is gonna send you you know as far as those those amounts go but yes
Speaker 37
55:22
those are being held back sir until we get the ward water audit done right now we're working on the water audit we're in the process of doing it now and so we we had to get a loan we we used to have a guy that that that was local that did our water taxes for years
Speaker 45
55:40
actually he was on the taxes before I became mayor and I I'm not quite sure what was you know what qualifications that's that the guy had or you know I'm not saying but and somehow they wasn't done like they're supposed to had been done and so we kind of failed behind there and so
Speaker 37
55:58
but now we're in a process to go back to these prior years that we are behind to get that fixed actually we
Speaker 45
56:04
have to do a little loan in order to get that audit
done so right right now we're working with communities on unlimited they're assisting us with this process and so that is moving forward
Senator Kim Hammer
Unverified
56:17
all right just out of curiosity how much you have to borrow to get your audit done I think it was like around6000 so in addition
to what you got to pay back you got to pay back that6,000 also right? yes yes yes whenever
Speaker 45
56:33
that follows through yeah whatever payments
that is on that I'm not quite quite sure at the pro
that at the moment because we're still working on you know com completing that whole deal. OK
Senator Kim Hammer
Unverified
56:46
and then one other thing the50,000 you mentioned and I'm going to use the word embezzled. is that a fair word to use? yeah
you know where they're criminal charges and prosecution are where are you inhoenix he yes but charges was
Speaker 37
57:01
un filed and they're in the process of I don't even know if
Speaker 45
57:06
I don't even think he's been in court yet but they're
as they say I guess they're in the process of trying to prosecute them or you know I'm
Senator Kim Hammer
Unverified
57:21
not sure how long ago has that been? that was last year. I'm sorry last year yes ok and
the50,000 just vanished overnight or over a period of time just
Speaker 36
57:31
yeah it we missed a statement the bank didn't get us get us the statement and prior to that he had went on a on a spree
Speaker 37
57:44
about a two weeks spree how I actually found out about it is I called the bank one of my street workers he had to go get some parts for the tractor and he called me he said mayor he said he said man he said is is there a problem? I said a problem and you know what he said man he said they wouldn't let me get the part I said man I said we got it's almost like40 $1000 in there man. I said that
that shouldn't be a problem and so I called the bank and this is the funny thing about about about the bank when I tried to get get the money back I called the bank and I said I said ma'am I said this is MayorRandall from mcarthage which I see him and it was a funny weird thing she said I can't verify you she said I know who you are mayor. I said I said what do you mean you can't verify me?
so lo and behold what the problem was when we added this guy that embezzle stole robbed how how we gonna say it every time I think about it I I get but when we put him on a signature card they put him as the whole signee my name wasn't even on it ok and so that's when he went to LittleRock that's how he walked in the bank and got50,000
dollars cash money on 13 different different times and I went back and forth with the bank and I walked beside the bank I said I said why is my name not on well mayor we we we are you know we gotta fix it OK. I said you gotta fix it. I said is
Speaker 85
59:31
that chalk but yes yeah yeah that was the issue sir right so they're working it's being pursued and hopefully you can get get some money back.
Senator Kim Hammer
Unverified
59:39
right thank you. I want to recognize Senator Crowwell I believe he has a question
Senator Steve Crowell
Unverified
59:46
they've got kind of a question slash conversation with the committee here you know they've we've we've touched on they've got basically an 18,600 held back already they owe 16,000. it looks like they haven't hit their 10% yet so I'm I'm kind of in the thought process of making a motion to keep their hold back even when they get their water done and
catch it up to 10% as of as of date actually surged
Speaker 100
1:00:24
12,000 but that would get them caught up at least
Senator Steve Crowell
Unverified
1:00:29
in that part because I mean they're not even close to 10%. I mean what feedback anybody senator crowell I'd like to
give a little feedback and yes mayor
you know it sounds like you inherited some problems and there's been some more problems and embezzlement seems like you've
made a valiant effort to try to do the right thing but my original question is what is the city of carthage
plan to repay the money from the general fund back to the street fund and we've heard a lot of history and a lot of talking around but we need a plan that we can reduce to riding and I think Senator Krowlle's in the
process of maybe making a motion or has made a motion but it needs to incorporate everything even that may be catch even catching you up and then what you can pay back monthly and and still have money to operate on your city so we be getting along on the tooth we need to come on point and come up with a plan. Yeah
Speaker 36
1:01:38
that plan uhir actually started well started when
Speaker 45
1:01:41
I first became mayor like like I said you know we paid back
Speaker 37
1:01:51
roughly about $1000 on that and that was a issue that I inherited but I did I I did move forward and try to rectify that we paid the3,000 I think it was3000 or something we knocked it from 19,000 down to 16,000 and what other things we just kind of just fell off of it trying to fix some other issues but we have definitely been back on that process the past two months so I think I've moved like4,000 dollars and that's what I was
Speaker 45
1:02:22
referring to the senator there so now it's 16,000 so now it's down to like 1el,000 and so we have started back to plan to pay that you know because that was one of the findings that I talk talked to the auditor about and I told her I said you know I I promise we we will definitely start that so I ' ve started that and like I said the bill now is like 12,000 old back to the street farm let me recognize
Senator Steve Crowell
Unverified
1:02:48
Senatorcrowelle again. so then what I you know senator Stone I I like your
idea. so what we need from you today is can you pay roughly $170 a month to the back to the street fund yes sir because that that puts you at about 10% so that's that's a plan that needs to be put into action next month. yes sir we have a motion from
senator Krowell that we have a second any discussion have a question of the senator
Representative Carol Dalby
Unverified
1:03:27
if I may inquire of him my question is what would happen if they fall back and don't maybe it's more for Mr. Archer what would happen let's say that this is what we adopt which is what we often do with cities to pay the 10% back that's not a problem but given their history of not paying what happens if they don't pay they miss a payment they don't pay next month they don't pay whatever what's our next step because I think they need to understand where we are
and what our next step will be because I I just don't ever see him digging out of the hole absinthe of street fund but if if Mr Archer could answer my question
Speaker 33
1:04:09
277207 says you've got two choices they can self impose a 10% payback of of general fund revenue in this case their
Speaker 23
1:04:16
total revenue for general fund was 19,000 some change for 23. so we're looking at that's where the 170 come from that's round numbers if you fail or do not meet that
obligation the law will allow this committee to then withhold all street fund revenues until it's paid back in full now as the mayor stated they're not getting any street fund revenues right now due to the lack of a water audit so what that would be was let's say they got their water wed I would think the committee could still impose that and then if they got their water audits then they still wouldn't get their street fund money back until they got that done if they defaulted on that plan. does
Representative Carol Dalby
Unverified
1:04:59
that make sense? Yes that makes sense just wanted to make sure everybody was clear and the mayor understood what our next
Senator Kim Hammer
Unverified
1:05:11
steps would be Senatorhammer like to direct a Mr. Archer if you would please all right the comment you just made you said this committee could but history reminds me I think we did
that before and that are we talking about this committee or are we talking about the full legislative audit committee this committee did it on another city. they would
Speaker 116
1:05:30
they stopped their turn back and it took them about 9 or 1211 months they
Speaker 50
1:05:34
had one more month left before they because it's just for a year they escort for a year I misspoke they escort the scrow it for a year and if they're not paid back in full in the year they lose it and that the other city was at the leth month and they paid back
Senator Kim Hammer
Unverified
1:05:48
in full and they got all their money back but I'm talking about whatever action we take in here it's this committee we're gonna have to ask someone with a
Speaker 23
1:05:57
law degree on that but it's my understanding that this committee makes recommendations
my understanding keep that in mind and then when a chair report is approved the full committee does it but that's just I probably overstepped there whennie if if you need to answer that I can get you one but I can't give it to you. All right, thank you.
right justsenator crowell just so for my own clarification you started off talking about holding the turn back money so we're not
going to do that we're going to go with this motion so your motion for the record so make sure I understand them there may be others that need clarification too so for the record the motion is they will
Senator Steve Crowell
Unverified
1:06:33
pay $170 a month or 10% and get that on the books next month and then we will follow the rule 2 whatever it was the 27-70-20 from there on Mayor I said I believe you said
a while ago that you can make meet that obligation yes sir all right all in favor say any discussion say none mayyor we have a plan
hopefully you can stick to it and you won't have to come back to the end of the table again. Yes definitely definitely one more deal
I'm going to recognize represent debate I think he's wanting to weigh
Representative Howard M. Beaty, Jr.
Unverified
1:07:16
in on it thank you Mrir. I just have a question one the the mayor's talking about an embezzlement or our money's missing from the city but I didn't hear a date when that happened so I guess my question is to leg audie did they note these transactions when they were in
or is this at a different time and a and in a different time period that this happened and has that been referred to the prosecuting attorney our law enforcement maybe the mayor can speak to who his city attorney is and and and also answer a question the loan that you received did that come from
Speaker 37
1:07:53
a bank? sir to your first question yes which I'm down in Dallas Dallas County sir and the
yes the the prosecutor attorney has it they when when
Speaker 45
1:08:07
we first filed charges on them you know they locked locked him up he bailed bailed out this was in april of last year April April May of last year and I think they finally got him I I wanna say they picked him up July maybe
Speaker 37
1:08:27
July august like a cou couple of months later and so I I've
called a tri called the prosecutor attorneys several times you know I haven't got a got a got a call back from them so as far as I know you know they have them on
Speaker 45
1:08:47
the docket what they plan on doing with them you know I have no idea and go ahead I I mean that was not just my question
Representative Howard M. Beaty, Jr.
Unverified
1:08:55
see if it'd gone to the prosecuting attorney because it stands to reason for me just sitting here and I'm not a member of the committee and I thank you for allowing me to speak that if the city had50,000
dollars sitting in an account they could have squared up a large percentage of what we're talking about here for past past errors and so mayor I'm gonna tell you just what they told you take take care of the current stuff. don't don't start focusing on the backs to make certain you're current on what you've got going on and then take care of some of this other stuff and if they had50,000, a lot of this should have been wiped out soon as well that000 that was between both accounts the street front and
Speaker 37
1:09:39
the general fund it wasn't just50,000 dollars just sitting in
Speaker 45
1:09:42
one fund so he he almost emptied out both funds and that's what it basically total but
Speaker 37
1:09:48
yes you all rightir appreciate that and and and and I guess you know we we have to also focus on the present issues it's like you said and also p paid some
Speaker 129
1:10:10
so as to kill satisfied with this answer to staff me do something yeah I mean beaty you've been here right here
I'm sorry Representative beatty does that answer satisfy your question? does it's just
Representative Howard M. Beaty, Jr.
Unverified
1:10:28
kind of a a just something the committee's gonna have to look at here probably next year you'll be
Speaker 132
1:10:34
looking at this in the next audit well
look mayor no one here is unsympathetic but
sometimes life happens and when it does you just can't not do nothing you
have to gather up your resources to keep moving forward so that's what we're asking of you in the city of cars today and I believeres representativeladyman has a question. Thank you Mr Chairman
Representative Jack Ladyman
Unverified
1:10:57
Well mayor you've got quite a mess here. Yes sounds like you're working on it though but do you do
you know what your monthly income is to the city and do you do you track that every month? Oh yeah you know we she's like I
Speaker 37
1:11:12
said you know as far as the you know our funds are being held back on the
Representative Jack Ladyman
Unverified
1:11:19
street'm talking about how much money do you have coming in each month yeah yeah that's what I'm basically saying with the with
Speaker 45
1:11:26
the tax revenue that's that's coming in just like I was stating earlier those those amounts fluctuate anywhere you know between 2,603,200 and then the turn back money also to the city side you know like like I was said earlier you know those fluc fluctuate too you know some months it may not
be but 00 some much may be like a like 1000 so it's never you know I just can't sit there and just tell you the exact number because I don't even know what the what the checks would be you know the next couple of months well this was the december check is but but yeah we we do keep
Representative Jack Ladyman
Unverified
1:12:01
up with it you have a monthly report that
you look at maybe 10 days after the month ends or something like that do you know how much your income is after after a few days not
offhand I would suggest you do that you figure out what your income is each month and you figure out what your expenses are each month you can do that the 15th of the next month if you want to and then you will know and and like the representative said pay your current bills pay your current bills and the the amount you have left when you subtract your expense from your income that's what you use to pay off your bills that's the only way you're ever going to dig out of this and it's going
to take you a long time sir but if you do that you can keep your city sir if you don't do
that you may not be able to keep your city thank you thank you Mr appreciate it right and
I want to recognize Senator Markhoson. I believe he has a question. Thank you
Senator Mark Johnson
Unverified
1:13:04
Mr Chairman and mayyor I commend you for being here and being candid with us and trying to fix this uhpresentative beatty is a banker and a businessman and understands cash flow and things like that so I encourage you to
listen to his sage advice Representative ladyman is a former mayor of a small town and dealt with these things so he he's been in your shoes and understands what you have to deal with but Mr Chairman I've I wish I had a nickel for every situation similar to this that I've seen come through this committee since I've been a member of it I think we could we could give it to the mayor and all his back payments would be covered because we see this not
just a lot we see it a way way way too too much and so I I turned to all my colleagues on the committee and say you know when you've seen this you know they say you know insanity's doing the same thing over and over again and expecting a different result. I think we've got to find some long term solution to this and I'm not trying to punish any municipality or any other agency that might have this but when you incorporate even if it
was done before you were born and all that but being a city official you take on certain responsibilities that you can't just ignore and as as you said you know and and that fact what that representative ladyman just said you may lose your city if you can't do that you can't just continue to kick the can down the road and think that everything's gonna straighten out the responsible thing for the town of carthage is the things that mayor's trying to do
but the responsible thing for the general assembly is to come up with a long-term solution for this where you know we're not seeing this same problem over and over and again and expecting a different result so I just say that in general for the members of the committee to consider I certainly don't have a solution on the tip of my tongue but I think collectively that we can make some pretty good progress toward it and I encourage all of us to work together on it but may thank you for being here and trying to keep trying but but we
we got some good advice today and I encourage you to listen to it Mr Chaman will
Speaker 145
1:15:28
to address representative beatty's question yes Mr. Archer I think
Speaker 33
1:15:35
so thank you Mr. chairir to Representative beatty's point on page se the first finding none of the mayor as
Speaker 22
1:15:42
a report date Arkansas legisla bought it and law enforcement agency are in the process of investigating certain financial transaction within the city be included in a successful
Speaker 23
1:15:53
report we don't comment on ongoing investigations this happened in a after our audit year but we did think it was pertinent enough to include it in the report so that the reader would know that we were aware of it but we couldn't we can't operate it but very soon January February meeting we're gonna have it here but thank you for pointing that out right well Mr. Mayor
I think that concludes everything but just make sure nothing is said or taken action taken here today is not punitive in nature we're just looking for solutions to
help get you back into compliance with the law. sir thank you
thank you appreciate it I have do have a motion to file the
report motion second all in favor all opposed motion is passed file the report please Go moving on
Speaker 33
1:16:43
to item C on the agendas discussion of noncompliance with municipal current law for the city of audonia if the with the chair's permission I'd like to go ahead
Speaker 22
1:16:55
and present that their report from page5 please please do on page five under report referred to the prosecuting attorney in the AG's office where the city of adonia 2024. under the recorder treasure a county procedures for municipalities are set forth in Arkansas code annotated 1459101 and 119.
the city was a noncompliance with these codes and other proper accounting procedures as noted below. a review of disbursements revealed inadequate supporting documentation for tested disbursements totaling almost $2400 Subsequently the city provided documentation to support $207 of these disbursements however the validity of these of the remaining almost $2200 cannot be determined. this is a repeat find in the previous three reports cash receipts and disbursement journals were not properly
posted to include all items of income and disbursements. This is a repeat finding in the previous three reports fixed asset listing was established recordcords were not updated. In addition, the city has not adopted a fixed asset policy this is a repeat find in the previous two reports bank reconciliations, bank accounts were not reconciled on a monthly basis. This is a repeat find in the previous three reports I believe Mayor Mark Caley and recorder treasurer Calyn McAllister is here to answer questions
Speaker 48
1:18:43
Mayor would you and your associate associates state your name and position for the record please my name is Mark cosy the mayor of the city of adonadona and I'm Carolyn
Speaker 155
1:18:54
McAllister tra recorder and secretary or treasurer of adona. I'm not a city clerk I was just hard as secret treasurer thank you mayor do you have a statement to make really don't we figure out what we need to do to make it right right
Speaker 161
1:19:14
Rememb if y'all have any questions right Senatorhammer thank you and thank
Senator Kim Hammer
Unverified
1:19:21
you all for being here do you guys work with the municipal league very much as far as getting guidance
from them or reaching out to them or do they reach out to you we'll reach out to
Speaker 163
1:19:33
them you know as as needed yes may say something please all of this has
Speaker 165
1:19:39
to do with the bookkeeping accounting part so
Speaker 155
1:19:44
that's me and I was informed about this last year and I did a thought what was correct and like creating a journal or in our disbursements that don't have receipts they're like from amazon orders we had and we did not make copies from the amazon orders to show a receipt we had the
visa bill but not the receipt for the particular items so I've been informed by this auditor of what I need to do and and I can explain each one if you would like me that'd be all right. I mean
Senator Kim Hammer
Unverified
1:20:30
the tone is do you want to get it right and that's the right tone to have I was just curious if
when you have questions do you initiate reaching out to the municipal league or to your auditor that you know you you work with from
legislative audit or you know this time we
Speaker 164
1:20:48
had I had like4 or5 different ones that are talked to but Mrs Smecken becker. I spoke
Speaker 155
1:20:54
with her today and now she's informed me that I can call her at any time to find out any situation that needs to be corrected that's right ok thank you. So do I'll start with the first item ma'am for my for
Senator Kim Hammer
Unverified
1:21:10
my part if you're doing that because of questions I asked I'm I'm OKok let's let's chair wants
to hear it no I believe we're good. Well members I believe Senator Johnson do you recognized thank
Senator Mark Johnson
Unverified
1:21:28
you Mr. Chairman. I'll be brief. this may be a staff question Mr. Archer may know on the finding about the mayor and quarter treasurer being compensated through with a 1099 NEC president of W2 and I understand the logic however question to the staff is
does the IRS allow that? They define what an employee is and it doesn't matter if that employee's paid $1 a year or 100,000 a year you have to follow they have their W2 employee am I correct on that assumption we're not
Speaker 26
1:22:02
IS experts but that's our understand that's our understanding yes the
Senator Mark Johnson
Unverified
1:22:06
W2s operate then the audit operates under that presumption OK and so all I'm saying to to advise the recorder treasury and the mayor H&R block
didn't do you any favor because they don't have the the right to make that decision and I know it might cost you a little more in the administrative side to have it 1099 simplify things but you know you got to follow the law and that's that really jumped out at me and I just wanted to make sure I was reading it correctly and not not being
tough on. Thank you Mr Chairman. thank you mayor recorderre Yes Mr Chairman every time
Speaker 155
1:22:43
I took the things to H&Rlock they said you don't need a W2. I said
yes I do because the auditor said I did and they did not do it so I have reached out because of Mrs Smeckenbecker to the Arkansas municipal League and we have a call in and they are going to return the call to me and let me know how to deal with this instead of being a $1000 out of the city's pocket for H&rlock to do W-2s rightsenator Johnson has a follow up
Senator Mark Johnson
Unverified
1:23:21
oh here it is just a quick follow up Mr Chairman I seem to recall years ago H&Rlock's TV ads said that if if they make
a mistake it costs you penalty or interest they'll pay that penalty in interest so you might check back with them they're a big company probably could cover this cost of fixing some of these things for you if they're guarantee that I remember from years ago still applies and I would almost bet that it does. This is clearly you said I need this and they said no you don't
so they were incorrect and and some supervisor would probably stipulate to that and maybe help you out. thank you Mr Chair. right well
I would just say remember one thing when you're talking
to H&Rlock they're working for you you're not working for them so get them to do it like you want
it that way you know you're in compliance and don't draw down the ir of the IRS and have another problem uhpresentative dyeva question do Senator.
Representative Johnny Rye
Unverified
1:24:23
I think I've got something that that will help them I was speaking with Joe a little earlier and you know each county and I thought cities were basically the same way but a fixed assets list in other words we used to have something like500 I think it went to $1000. in other words if you buy anything that's $1000 up and above then that has to be put on a list and that list is given to the auditors every time they
they visit the office. So I would definitely that all you got to do is keep up with that as you go
Speaker 155
1:25:03
and I believe that would really help you the last mayor we had the asset list from him and then when the auditor contacted me we tried to fix that and give it to the auditor. shouldn't be hard
Speaker 186
1:25:15
shouldn't be hard but I don't know I'm dealing
Speaker 151
1:25:26
now I try he Senator Stone, I'm closed sir,
Speaker 191
1:25:33
OKok so with that being said just Mr Archer just to make sure that
everybody's on the same wavelength I think we need
a motion in a second if it's the will of the committee to start the 60 day clock so if they didn't if the city does not comply we can
start with holding turn back so with
that being said what's the will of
the committee motion do we have a second all in favor say aye and the opposed by habit I'm saying y'all have60 days to get your house in order or your turn back money will be held OK and we
Speaker 164
1:26:15
contact Mrs. Smecken becker. is that correct is correct any
Speaker 50
1:26:17
time between now and the60 days which will be February 11th so and then at that time if not you'll be asked to come back so
at any time you know and she can show you exactly what what we're looking forward to
get you on the right track. OK. thank you thank you you're dismissed you yes I need to make a motion to file the
report motion that we have a 2nd 2 all in favor say aye aye not only opposed please file the report Mr. Archer. Mr
Speaker 21
1:26:53
Chair we're down to itemg review of reports
Speaker 22
1:27:01
starting on page one we have 11 reports deferred from the previous report over the previous meeting on page one we have the town oflue Eye 2024 and2023. under the mayor the annual financial statements were not published or posted as requiredarkansas code. This is a repeat finding ud ge t s were not adopted as required by code to repeat finding in the previous five reports the governing body did not review the prior report or accompany comments at the first
regular scheduled meeting following the receipt of the report as required of Arkansas code. This is a repeat finding adequate sporting documentation was not maintained for all disbursements as required barkansas code. similar finding was issued in the previous report. I believe we have mayor Sandrabbe
Speaker 199
1:27:49
here today to answer questions Mayor would you
state your name and position for the record please my apologies
and you're the mayor thank you do you have a statement that you would like to open with please do not. I'm
Speaker 202
1:28:11
just here to ask for forgiveness on the things I did not know so well that sounds like a statement all right members are
there any questions of the mayor senator Hammer you're recognized Mayor thank you for being here. I'll ask you
Senator Kim Hammer
Unverified
1:28:26
the same question I asked the previous Do you know who to contact when you have questions as far as municipal league or
who the auditor is do you know who
Speaker 202
1:28:36
that is now? Yes I do now. I wasn't aware that I could contact my auditor before he comes and picks up all my stuff to make sure I had all my ducks in a row so that is my fault and so I'm gonna use him
Senator Kim Hammer
Unverified
1:28:52
to the best of his ability next year and throughout the year
I have a question of staff please proceed. Does legislative audit notify the municipalities of who their point of contact is
if they have a question or is it just call into the number and it's randomly assigned or what's the communication link between legislative audit and these municipalities so if they got questioned we we divided
Speaker 23
1:29:15
the state up into we've changed I think it's se districts now and there's a supervisor over each district. That supervisor assigned all the engagements in the in that district and they assign a particular auditor as needed there but the supervisor is overall engagements and that individual is is very knowledgeable of all their
Speaker 199
1:29:34
engagements within that district so that would be their point of contact throughout the year. OK how long have you been mayor
Senator Kim Hammer
Unverified
1:29:44
madam?3 years.3 years. did you know in a threeyear period who you were supposed to contact or was it as a result of this that well I
Speaker 202
1:29:52
knew that we would be audited but they just said they'd pick up the paperwork and then I did the auditor did call and you know we became friends and he said I'll pick up your stuff and I said ok but I wasn't
aware of all of the repetitive that I needed to do I I just there was no class that I went to I'm a volunteer so this isn't a paying job for me but I love my little town and I don't want it to be dissolved so I'm learning and so and he's been very patient and he'll be like no you need to you needed to do two receipt books and these are what we were messing up is just the I don't like we have one you know I thought common sense would play into that a lot for such a
small town and now I know that everyone has to have two receipt books and and you have to put down that you talked about the audit and the meeting I just assumed that would be public I
Speaker 210
1:30:46
mean like that you would know that we talked about the audit so yeah that's fine.art of the reason I asked that lot
Senator Kim Hammer
Unverified
1:30:53
of question is cause and can have an offline discussion is making sure that the municipalities know who it is that they're supposed to contact so when if there's a doubt in your mind you know who to reach out to that that's the
reason and I appreciate you being here and appreciate the tone. thank you Representative
Representative Jack Ladyman
Unverified
1:31:14
Laderman thank you Mr. Chairman. mayor have you ever gone to the municipal league meetings like the annual meetings attended so far
Speaker 202
1:31:22
since I am a volunteer it has to fit in with my work schedule as well so but yes and I have reached out to them several occasions and they've always been more than gracious. so yeah well you learn a lot
Representative Jack Ladyman
Unverified
1:31:37
from the other mayors if you go to those meetings and that helps you a lot and and our
Speaker 202
1:31:42
small area we're up by the state line I have reached out to the other mayors and they're always more than willing to give me advice on things but this is a learning process. So how big is your city? We have34 so do you do you have an income we do we do have some it's a very small income but our city might not be big but we have lots of things going on in that town and so we have to
keep the money flow coming so that we can keep the soccer fields for the kids in the square for the community you know
Representative Jack Ladyman
Unverified
1:32:18
so well the municipal league's a very good source if you have a question right they are thank you
Speaker 219
1:32:25
thank you are there any more questions so what is the will
of the committee my motion to file and do we have a 2nd 2nd all in favor say aye all opposed motion passes thank you you're you're dismissed
Speaker 22
1:32:43
continuing on page one through page three we have7 private reports that were previously deferred because we were waiting on good responses we've received those responses for Comptonermontt2423 and22 evening shade 23 Franklin 24 and Franklin 23 staff recommends we file these reports motion to file a report 2nd 2nd all the
papers say a all opposed file the report
Speaker 22
1:33:16
on page three we have three reports deferred from the previous report that we still have not received proper responses for staff recommends we defer these three reports
motion second all in favor all opposed motion passes deffer please. on page four we have one
Speaker 22
1:33:36
report that we've certified to the bond board and referred to the prosecuting attorney in the AG's office and that is the town of Felsenthal 2024 and2023.
under the recorder treasure in 2024, the recorder treasurer paid herself almost $1800 in excess of appropriated salaries without sporting documentation and noncompliance with Arkansas code No budget was provided for 2023. therefore we were unable to determine the authorized salary for the recorder treasure.
Speaker 23
1:34:07
there are no questions staff recommends we file this report motion second all
in favor motion passes. File the report.
Speaker 22
1:34:19
We have 13 reports referred to the prosecuting attorney in the AG's office starting on page ive we have the buffalo Island Regional District which is for June30th of 2025. this is a private report during our
audit it came to our attention that two employees were overpaid in the form of additional payroll checks and unauthorized overtime by approximate approximate total of fi5,000
Speaker 23
1:34:43
dollars. there are no questions staff recommends we file this report.tion second all in favor say aye
motion passes file the report jump down to page
Speaker 22
1:34:55
six the city of Alexander 2023 under the recorder treasure the city did
not have adequate supporting document excuse me the city did not have adequate internal controls relating to the use of credit cards and other expenditures. Our examination of disbursements revealed the following a council member who is not an employee of the city obtained a credit card in their name according to the council member the card was
given to the police chief for purchases from May of 23 when the card was activated to November of 23 when the card was closed the city paid over $8000 for purchases made using the card. of the5,500 dollars in payments we examined over5,000 dollars of it did not have proper documentation to support a business purpose Other disbursements examined and totaling over4,000 dollars did not have adequate sporting documentation throughout therefore the validity of these
transactions could not be determined That finding has been referred to the prosecutor attorney in the AG's office. We have an additional finding for the district court clerk and Clark Denenet Guest was invited today but she's in court today so therefore staff would recommend we defer this report motion second
all in favor motion passes to further report please we'll jump down to page 10 townwn of delight
Speaker 22
1:36:24
20242023. vi e w of disbursements revealed inadequate supporting documentation for tested disbursements of almost $24,000 and and over $13,000 for 24 and23 respectively Subsequently the town provided documentation to support these disbursements or let slave audit obtain documentation directly from the vendor In addition the town did not provide supporting documentation for disbursements of over
$1700 and $161 in2024 and2023 respectively due to the lack of documentation the validity of these dispersants could not be determined. This report's been filed with referred to the PA and the AG staff recommends we
we file it motion all in favor motion
Speaker 22
1:37:17
passes file the report page 11 cityity of Melbourne 2024 and2023 under the mayor in July of 2023, a council
member purchased eight acres from the city for $8000. Prior to the purchase in October of22, the city advertised the sale of the property and solicited bids. The only bid received was the city rejected was from the council member 9 months later the council member verbally offered the city a higher amount the $8000 and the city accepted the offer recording the council meetings indicated the council meeting the council member did not leave the room during the
vote regarding the sale and no documentation was available to confirm whether the council member participated in the vote In addition, the city did not adopt authorizing ordinance allowing business to be conducted with the council member as required Arkansas code there's no question staff recommends we file this report without objection we'll file this report page 12 with the city of risen 2024. under the mayor the city paid over $1400 to the
mayor's spouse for bookkeeping services without authorizing ordinance an apparent
Speaker 23
1:38:32
conflict with Arkansas code there are no questions staff recommends we file this report without objection
Speaker 22
1:38:41
we'll file this report continuing on page tel under still under reports referred to the prosecutor and attorney general's office where have the city of Stteens 2024 under the mayor august 28th of 2024, the city initiated an ACH transaction totaling just under30,000
dollars for online purchase of what appeared to be out of state vendor selling heavy equipment the city discovered that the sale and vendor was fraudulent when the equipment was not delivered and reported the instant theorsall County sheriff's office and the report date the city has not recovered their funds there are no questions staff recommends we file without objection we'll file the report
Speaker 224
1:39:25
page 13 and 14 of the town of Wabaseka 23 and22 under the recorded treasure
Speaker 22
1:39:32
invoices and s supporting documentation were not maintained for disbursements of almost $15,500 and over5700 dollars for 2023 and2022 respectively. due to the lack of documentation the validity of these disbursements could not be determined. This is a repeat finding. This finding has been referred to the prosecuting attorney in the AG's office. there are no questions. staff recommends we file. without objection we'll file the report
Speaker 22
1:40:11
Willardford 24 and23 under the report of the mayor and the recorder treasurer the payroll preparer invoiced the town and was paid $1000 for performing additional
services these payments were not approved in the town council minutes or included in the in the approved budget. Additionally we were unable to determine the amounts paid to the payroll preparer in 2024 due to the lack of payroll records. there are no questions staff recommends we file this report
that objection will file the
Speaker 224
1:40:46
report on page 17 we have a casa waterystem
Speaker 22
1:40:52
2022. This is a private audit report records detailing the component breakdown of individual deposit transactions were not maintained. therefore we were unable to agree cash check composition of the deposits with the receipt information historical documentation was not
maintained for customer billing adjustment transactions we noted that the employee received an insurance supplement payment on a reoccurring basis for which management could not locate documentations specifying the terms of the agreement. Disbursements during the period for their supplemental health insurance payment total6,000 dollars for the
Speaker 23
1:41:26
year. there are no questions staff recommends we file this report without objection we'll file the report a lame municipal waterworks 2024
Speaker 22
1:41:40
it's a private report we found that the daily deposit amount did not agree with the daily receipt allocation reports we selected a sample of tin bank deposits and compared each of the corresponding daily allocation of receipts reports for agreement of total amounts for the sample tested the total amount recorded on the daily allocation of receipts reported with over $16,600. while the total amount deposited for the bank records were
$15,900 resulting in a difference of735 dollars We did not determine the cause of these differences as it is not within the scope of
the gred upon procedure. there are no questions staff recommends we file this report without
objection we'll file the report continuing on page 17 Thornton Waterworks 2022 another private report the following deposits totaling over $17,000 did not match the total of corresponding daily receipt reports
there are no questions staff recommends we file this report
Speaker 234
1:42:45
with that of objection we'll file the report re don't have an objection to
Representative Carol Dalby
Unverified
1:42:49
foulling but I have just a quick question Mr. Archer on this Thornton waterworks and it gives the date and that's the deposit do you know how much they were off we just don't know or the privatePA did not indicate we have reached
Speaker 23
1:43:03
out on a similar incidents with the CPA and he's going to provide us not
on this report but he's turn ing one similar to that and
we're gonna get more details in the future it
Representative Carol Dalby
Unverified
1:43:15
could be a couple of 1000 could be a couple 100,000
Speaker 23
1:43:19
we just don't know it could be no more than $17,8 because that was the total amount there so it's there between there
Speaker 241
1:43:25
and zero I was just curious thank you
Speaker 26
1:43:34
Mr Chair my pleasure we have 8 reports with the repeat findings on page 18 we have
Speaker 22
1:43:40
the city of Greenwood 2024 under the mayor
the city did not solicit bids for the purchase of a street department truck in the amount of61,000 dollars in noncompliance to Arkansas code. This is a repeat finding I think we have mayor
Speaker 23
1:43:52
doug Kinslow here today to answer questions Mayor would you come down to the table please sir would you state your
Speaker 244
1:44:06
name and position for the record please yes sir Doug Kinslow, mayor of the city of Greenwood. do you have an opening statement
Speaker 245
1:44:15
guilty is charged just want to try to convince or definitely tell the committee that we're going to do our best to keep this from happening ever again and and I take full responsibility. Does any of the members have a question of the
mayor senator Hammer you're recognized thank you and thank
Senator Kim Hammer
Unverified
1:44:31
you for being here mayyor. I guess my question is had this gone out for bid what do you think would
have been the difference of a you know of a a compatible truck to this one or do you have any idea? I really don't but I think it
Speaker 125
1:44:46
would have ended up the same. I think we would probably acquired the same type of truck for approximately the same amount of money. yes sir right thank you yes sir make them
without objection make a motion to file the report motion excuse me make a motion
to file the report 1st and second all in favor any opposed it passes. thank you mayor thank you very much appreciate you continuing on page eight we have the city of Harrison 2024.
Speaker 22
1:45:17
District court clerk Sandy Wright was invited here today. she's in
Speaker 34
1:45:20
court today. She asked if we defer to the January meeting where she could be present. without
Speaker 24
1:45:29
objection we'll defer this report continuing on page
Speaker 22
1:45:33
18 we have Carroll County 2024. we invited the airport manager Mark Peoples here today he has a conflict and he also asked to be deferred till the January meeting without objection we'll defer this report
on page 19 we have Ezard County 2024. County treasurer warren Sanders was requested to be here and he asked if we defer till January without objection
Speaker 228
1:45:59
we'll defer this report Continue on page
Speaker 22
1:46:02
19 we have the town of Banks 2024 under the recorder treasure a review of townne's payroll records revealed IRS quarterly 941 reports were not prepared and the town did not remit payroll withholdings
for reporting periods dated back to 2020 On September 26 of2025, the town remitted over $2500 to the IRs for the year 20018 and on September 29th of 25 the town dmitted to almost $2700 to the IRs for the year 2019. This is a repeat finding. I believe
Speaker 34
1:46:39
we've got recorder treasure Leaya here today
Speaker 158
1:46:53
would you whoa hello would you state your name and position for the record
Speaker 250
1:46:58
please Levi treasury recorder of Town of Banks do you have an opening statement
sir do any of the members have any questions of Mown I make a motion that
we file it or do we have a motion to file it sett 1st and 2nd all in favor sayy aye
thank you you are dismissed bottom of
Speaker 22
1:47:30
page 19 bottom of page nine we have the town
of56 for 24,23 and22 the mayor Ernestine McDaniel and we're quarter treasurerrtine Bird were invited here and they asked we would defer
Speaker 34
1:47:41
till January. make a motion to defer excuse me make a
motion to defer let me back up with that
Speaker 22
1:47:56
objection we'll defer you'll get a straight here in a second page 20 where the city ofhampton 2024
and2023 under the district court clerk, bank reconciliations were not prepared for the district court clerk county account and a small claims civil accounts as required barkansas code. This is a repeat finding Any balances in two accounts were not identified with the receipts issued for cases not yet adjudicated in noncompliance with the Arkansas code has shown below. The district court district court county account
had57,000 dollars and almost $28,000 in24 and23 respectively unidentified. Small claims civil account had523 dollars and458 dollars for 23 and24 respectively. It's a repeat find in the previous two reports but we've got we're quarter treasurer I mean excuse me district court clerk scholarRay here today
would you state your name and position for the
Scholar Ray
Unverified
1:49:03
record please. My name is Syler wright under the district court court for the city ofhampton
County division. you have an opening statement sir are
Representative Carol Dalby
Unverified
1:49:15
there any questions Representative dalby thank you for being here. Have you worked with the administrative office of courts the district clerk district court's division to help you out getting this fixed yes ma'am and I understand what I need to do to fix
Scholar Ray
Unverified
1:49:26
it and it's in the process of being fixed as we
Representative Carol Dalby
Unverified
1:49:30
speak. OK I just want to make sure there are a great resource to make sure you utilized them
you thank you yeah right without objection we'll file the report saying none you are you
Speaker 22
1:49:50
are dismissed yes ma'am continuing on page 20 we have the town of Purla 20242023 under
the mayor total disbursement for the general fund in 2023 exceeded appropriations by over
$25,000 or32% in noncompliance with Arkansas
Speaker 34
1:50:05
code a semi final was issued in the prior report.live we have mayorRaymond adams here today to answer questions.
Raymond Adams
Unverified
1:50:13
Mayor would you state your name and position for the record please my name is Raymond adams and I'm the
mayor of pearller since 2007 do you have an open statement Mayor? Well I really
Speaker 262
1:50:29
don't have open statement I understand that this
ship got out of hand and there have been problems with the reason why you know things have got out of hand but I think we'll be I am back on the right track and I would like to say truthfully say that I lost my wife and my only son within the last year or so and it's just only me now so I've been going through a lot so she'd been sick for about3 or4 years so I'm back kind of strong now so some of that had something to do with me
not you know keeping up with what's going on I been in been depressed and wondering about myself but now I feel like I'm back on the track and I'm able to stand the test are
Raymond Adams
Unverified
1:51:18
there any questions about the members without with no
questions I make a motion we file the report mayor you're dismissed please you yes sir we have6 reports with findings of
Speaker 22
1:51:37
the on page 21 of Eureka Springs water and wasste Department2023 a private report we have since received a a good response for eureka Springs and for Pendlelandea Ridge Water Association staff recommends we file both of these port reports if there are
Speaker 149
1:51:56
no questions without that objections we'll
Speaker 22
1:52:00
file both these reports that leaves us private reports lacking proper responses as Fulton 23mcRae24 Montrose24 and
Speaker 23
1:52:08
Wheeling Springs23.taff recommends we defer these reports without
Speaker 228
1:52:12
objection we'll defer these reports on pages
Speaker 224
1:52:17
22 through32 we have43 reports with resolved findings stafffo requested the members take a minute to
Speaker 22
1:52:23
look through them and see if you have any questions if we don't staff recommends we file these reports after no questions.
Unknown speaker
1:53:16
do y'all need any more time uhpresentativealby ok
Representative Carol Dalby
Unverified
1:54:03
Representative dalby thank you thank you Mr Chair for the staff there's some awfully big numbers in some of this it kind of jumped out we've got 1 city3500,000 dollars and 30000 $0 all of that are you working with them to if it's turned back to start getting that paid because oo there's which one we're talking about
Speaker 264
1:54:35
lake lake village yes Lake village stuck
Speaker 23
1:54:38
stuck out to me the normal operating procedure this committee is if the officials are in the first year we accept their response and give them a pass if they answer how they're going to fix it or the lake village officials are in their first year. so but yes we've we've worked extensively with lake village and they they've gotten a lot of help from municipal league and they've actually reached out to some other cities around
Speaker 233
1:55:06
them that I'm aware of to get a great deal of help
Representative Carol Dalby
Unverified
1:55:11
thanks that's mean that's good to hear that just jumped off the page but thank you
Speaker 146
1:55:23
are there any other questions hearing none my movie we my movie we file this report on
Speaker 237
1:55:28
pages33 through35 we have 118 reports with no findingstaff recommends we file these reports. right I'll give everybody a few minutes to
findings there's no findings so without objection we'll file the report our next meeting will
be January8th we're dismissed well I'm sorry I didn't see it but I don't mind if you want
to make a comment you're not going to hurt my feeling that's
Representative Stan Berry
Unverified
1:56:00
ok it was simply a question to the staff I guess
of the reports that we refer to the prosecuting attorney how many or is there
Speaker 274
1:56:14
a percentage or or how do we know how many of those are satisfied on an annual basis Micchelee actually does
Speaker 23
1:56:21
an annual report to the full committee and it's scheduled for January or February I believe but
Speaker 22
1:56:27
she can step to the microphone and yes that's that she she concurred what I said there we do
Speaker 23
1:56:32
an annual report of all the ones that we we
summarize them and every year we michelle does a report to the full committee
Speaker 50
1:56:42
on Fridays and it's usually scheduled for the for the early spring so I'm about to find out yes sir hopefully real
Speaker 275
1:56:48
soon thank you Mrir thank you all if there's no no no other comments where adjourned for the day
Agenda
A. Call to order by Chairman.
B. Adoption of minutes of the October 9, 2025 meeting.
C. Review of reports. (Refer to the Summary)
D. New Business. The next meeting will be held January 8, 2026
E. Adjournment.
500 WOODLANE STREET, SUITE 172 • LITTLE ROCK, ARKANSAS 72201-1099 • PHONE: (501) 683-8600 • FAX: (501) 683-8605 www.arklegaudit.gov
LEGISLATIVE JOINT AUDITING COMMITTEE ARKANSAS LEGISLATIVE AUDIT DECEMBER 11, 2025 STANDING COMMITTEE ON STATE AGENCIES
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — LEGISLATIVE JOINT AUDITING - COUNTIES AND MUNICIPALITIES, Dec 11, 2025 | Agenda | 5 | Official source ↗ |
Speakers
Senator Matt Stone Chair
Unverified
Speaker 5
Speaker 6
Speaker 11
Senator Steve Crowell
Unverified
Speaker 16
Speaker 18
Speaker 21
Speaker 22
Speaker 23
Speaker 29
Speaker 33
Speaker 35
Speaker 37
Speaker 45
Senator Kim Hammer
Unverified
Representative Carol Dalby
Unverified
Speaker 70
Representative Johnny Rye
Unverified
Speaker 36
Speaker 71
Speaker 85
Speaker 100
Speaker 116
Speaker 50
Representative Howard M. Beaty, Jr.
Unverified
Speaker 129
Speaker 132
Representative Jack Ladyman
Unverified
Senator Mark Johnson
Unverified
Speaker 145
Speaker 146
Speaker 48
Speaker 155
Speaker 161
Speaker 163
Speaker 165
Speaker 164
Speaker 26
Speaker 186
Speaker 169
Speaker 151
Speaker 191
Speaker 199
Speaker 202
Speaker 210
Speaker 219
Speaker 224
Speaker 234
Speaker 241
Speaker 244
Speaker 245
Speaker 125
Speaker 34
Speaker 24
Speaker 228
Speaker 158
Speaker 250
Scholar Ray
Unverified
Speaker 258
Raymond Adams
Unverified
Speaker 262
Speaker 149
Speaker 264
Speaker 233
Speaker 237
Representative Stan Berry
Unverified
Speaker 274
Speaker 275