Legislative Joint Auditing-Counties and Municipalities

Motion to accept these mess have a motion we have a second UL's favor say aye any opposed thank you we were going to items see we have a discussion on the town of Gilmore whenever you're ready. Thank you Mr chair Gilmore is in the process of having turned back with help for non compliance with the municipal council law. And so we were asked to come back and look at the records and we did so on November third and we noted significant significant improvements there only to the municipal council laws that had not been corrected and one was that the fixed asset listing was hadn't been corrected and to they had not repaid District fund money that the of the accident seven oh nine will will catch up with that in the next year to so what we noted that the issues that would have prevented the council for making informed financial decisions have been corrected. So I guess we're looking for the will of the committee thank you so basically give you kind of what he said is Gilmore says of problems were holding purse fifty percent of their term back money as of today since we've done that they've made significant improvements on both the audit findings they had and to continue forward so it's the idea of the staff and myself that we should relinquish does turn back funds back to them since they're complying with us ever get information we need for successful audit as such I'll make a motion this time the standing committee on county and municipality recommends to the joint legislative audit committee at the state treasurer be notified to resume the town of Gilmore's turned back payments and restore the turn back that has been held in escrow do we have a second second any discussion all in favor say aye opposed thank you and moving on to item agenda do you to review the reports are will begin the discussion reports the first will be the city of Searcy on page one. And district fourteen this is for the year two thousand twenty the District Court Clerk was in noncompliance with Arkansas Code sixteen ten two oh nine other proper accounting procedures as indicated below the District Court Clerk was unable to identify one hundred fifteen thousand dollars remaining in the bank account with receipts issued for cases not yet adjudicating payments made on all unpaid individual time accounts electronic check register was not properly reconciled to bank disbursements electronic receipts listing was not properly reconciled to bank deposits reconciliations were not perform timely a similar finding was noted in the previous a reports banking Alice's and check water fees totaling thirteen thousand three hundred eighty three dollars and dating back to two thousand fifteen or electronically drafted from the Court bank account you're not recorded in electronic check register noncompliance with Arkansas Code sixteen ten two oh four in two oh nine the similar finding was noted in the previous are report District Court court Clerk Linda Maddox is here to answer questions thank you Tim miss medics you can come for to the table please. Yes ma'am go to into the microphone and we get up there please just press the button say your name and title for the record and any statement you may have on this report. Thank you I'm Linden Maddox for CDS seeing the District Court can you put the Mike down a little bit so they catch on the Thanks to yes ma'am I need to repeat anything not I think we got in go ahead ma'am okay. thank you for deferring my visit with the coveted experience. Of. I've been here for a often known for the last few years trying to answer questions and explain our situation I do. The in twenty twenty we did we're able to identify eighteen thousand dollars so would have we are making some progress on that. Issue This started and Well in two thousand and eight we had to upgrade our system. With the city picked data system for us that was not designed for District Court it was a pulley system. They didn't even have an account package so that we could settle our money properly. We struggled with that for seven years and then in twenty fifteen when I was ready to retire. I wanted my last effort to be. To get our system and get a a system that would work better for the court. We did that we went to context and in may of twenty fifteen. Context is fine Tim it's difficult to find errors in it but In the conversion that's when our issues began. And it's been a struggle every sense as far as the unidentified phone. My goal at first was to identify all of those funds then it became let it be stable so we could pay it out. I've worked five. They're six extra years because I don't want to leave that situation for the next card we have in the last year hired a lady. Who has. Wonderful experience she's gifted and accounting I think our next announcmenet will show an improvement Page she is She's going receipt my receipt she's doing research research on probably two hundred and fifty thousand. Accounts in our system she's researching that she's profit guy heard or say the other day she was at the agents so it's taking a while to remedy this she's also trying to correct the others situation as far as the thirteen thousand dollars we have a plan to repay that from my another fine with the city. So that will. And that was. And because the regions bank charging as it a minimum of two hundred dollars a month. We wrote letters we've done everything we can to make them I asked them to stop that they done so we will have to transfer that account to another bank in the city. Okay ma'am in question committee. I have one so you know typically we see the previous a reports having similar findings that that raises red flag. But it sounds like you're saying to me to jump ship to to a new system and that you're working through it is just a pain but you hired a outside consultant to help you with this she's not out she is on the staff name okay she's a dedicated staff member to do this yes okay all right any questions. CNN without objection we will files reports thank you ma'am thank you. Okay continue with deferred reports on page. Page three will begin with the talent Delaplaine for two thousand twenty. The two thousand twenty budget was not adopted by ordinance resolution in noncompliance with Arkansas Code fourteen fifty eight to a to a similar finding was issued in the our report. Bank reconciliations were not prepared for the general street funds and non compliance with Arkansas Code fourteen fifty nine one away a similar finding was issued in their prior report. Continuing on page four. The detail fixed asset listing was not established in the governing body did not adopt a policy defining fixed assets as required by Arkansas Code a similar finding was noted in the previous two reports dating back to two thousand sixteen. Adequate supporting documentation was not provided for tested disbursements of four thousand one hundred forty one dollars in noncompliance with Arkansas Code a similar finding was noted in the prior report Internal Revenue Service quarterly nine forty one forms were not provided therefore we cannot determine if the amount of taxes remitted was proper in addition Arkansas department of finance form a or three was not provided a similar funding was noted in the previous three reports dating back to two thousand thirteen. In bank reconciliations were not prepared for the fire equipment and training Fund in noncompliance with Arkansas Code a similar finding was issued in the proper port. we have a mayor E. lot Murray here's to answer uh questions before the mayor answered I just like to note that recorder treasurer Charles Murray was not able to be here because he has a job with the point system the indicated us that he received another point for missing work he would lose his job but he is he is corrected the finding regarding the bank reconciliations and he's still working on the other three findings regarding fixed assets documentation and Internal Revenue Service forms an assistant fire chief Dustin Murray sent us an email with evidence that the the fire Quitman training fund bank account has been reconciled. So again mayor the line or he's here to answer questions mayor if you can come for please. Please press the button for the Mike to your mouth and say your name and title for the record please in any state you may. eleven Murray mayor Delaplaine. Yes Sir do you have any statements on these findings well we've addressed all the issues that the I thank pretty well and and check still working on this we've been in contact with them I actually have an ordinance here are a resolution that we made for the twenty twenty one budget to show that we're trying to comply they said I didn't get the boards resolution I didn't get it might but we've addressed all the things I think that is on the list and we're trying our best I'm new at this and trying to do what I'm supposed to do. Yes Sir any questions committee. CNN yeah you know most this we can understand so look out word to it but the tax data that your record treasurer has for the past three R. since two thousand thirteen has a provided I think that's something I really need to work on because we keep I mean that's that's a vital part of what we do and make sure people accountable so I'd I'd I'd stay on top of that yeah he. He told me no I I I don't know. The deal but he said he tried to three times to do that and they wouldn't Leding and he's still working on we're working on it pretty hard would like to get it straightened out so you know I don't like to drive a little rockers. Yes Sir I understand that any questions committee. C. nine without objection we will follow support thank you Sir thank you. Okay continue on page six with the previously deferred ports the city of Shannon Hills for two thousand twenty. General fund expenditures exceeded budget appropriations by one hundred ninety seven thousand three hundred fifty one dollars in noncompliance with Arkansas Code fourteen fifty eight two or three a similar finding was issued in a previous report mayor Mike campus here to answer questions. I can't whenever you're ready. Please pull the Mike year. Self and say your name and title for the record and ma'am if you're going to give testimony please give your name and title for the records well. My name is mayor Mike camp city of Shannon Hills and wished me is merry Myers is our city treasurer. Any state you may have mayor. I just wanted to you'll see this is a book that we've got here this is a all of our financial reports that we have the president monthly to the city council and they've always approved unanimously we've made sure that city councils aware of every nickel that we spend every year we don't do anything without him approving we're always looking for ways to include him more incision making process is for something that we consider important I'm in my eleven years mayors city of Shannon Hills and we've got to I think a very good record and that taking care of our business the way it should be taken care of and we're very proud of that J. streets were very embarrassed to even be here today. okay let you know that to I think we've taken corrective actions to make sure that we don't ever show up here again as my understanding that to when you have something happens two years in a row. You get a ticket here to the ball and we had to the same thing happened two years ago which is best to I can tell is we basically didn't sample a piece of paper to another piece of paper two years in a row when they were supposed to. At. My treasurer here and she can explain to you the you know further if anybody has any questions we're anxious to answer. I can tell you to that to actually hear the reason that we had to add that extra money was because prepares at a mental the end of the year required additional bookkeeping stuff but we took care of it and uh we didn't city council approve every expenditure that we made. And and with that the thirty to the treasurer or if any of you have any questions for me. any questions Senator back Americanized. Thank you thank you for coming up did a did you ever present the city council the revised budget included a hundred ninety six thousand. At the at the end of every year in January the city council looks over all of the numbers and how we spent money and to approves a resolution for the overage is in any of budget areas they approve that what we failed to do was stable at patient paper with the revised the budget to that resolution. At which it. Like I say very simply two years in a row we forgot sample at to that resolution that we do have every January there's a lot of uh counties and cities that come into the don't know that. It's a simple as that just approve it in sample to yes thank you and. The more questions committee. Yeah they're sensible of cares packed full and how much did your city get in total Care Act funds to mine sand. Gesture of one hundred twenty five thousand one twenty five thousand yes and the appropriation was a hundred ninety seven thousand so it's roughly what seventy thousand above it was additional funds that came. that had to do with some grants that we had going on at that time and we collected grant money that was not listed in. The paperwork that was presented to our auditor okay thank you ma'am anymore questions. CNN without objectionable fathers port thank you for coming thank you. Okay continue on page six we have R. one report that certified to the bomb board city of Helena West Helena to thousand twenty we have one finding that is repeat and then once of on board as well there are review of payroll we noted improper payments totaling six thousand five hundred fifty five dollars to the current fire chief former fire chief and assistant fire chief for working for work performed on holidays these payments were in addition to holiday pay and were not substantiated with documentation that these individuals worked on all days Furthermore the city attorney was properly paid one thousand two hundred nine dollars due to a salary increase however this increase is not included in the budget approved by the city council. Additionally we noted the fire department police were overpaid due to an error in calculating holiday pay we recommend the city reconcile the overtime hours to determine which employees were over or underpaid and calculate overpayments relating to holiday pay a similar finding regarding payroll issues was issued in the our report. A continuing on page seven the other the the finding referred to the bomb board. during the period of January first two thousand twenty two may seventh two thousand twenty one landfill receipts totaling six thousand two hundred thirty seven dollars we're not remitted to the city clerk's office and therefore not deposited in city bank account the landfill Clerk who resigned on may twentieth two thousand twenty one was custodian these funds these are deposited funds mayor Kevin Smith treasurer Derek Turner Clerk Sander Ramsey and fire chief Roger brown here to answer questions thank you Tim a German if you say your name and title for the record and any statement you all may have regarding these findings. Yes Sir Kevin Smith mayor of Helena West home they're turning senators were Helena West Helena right to ground fire chief Helen was out. Any statements you may have yes I would like to begin with the as far as payroll issues Regarding the fire chief and assistant fire chief of the holiday pay. The auditors noted that it wasn't documented and so what we've done was they created a holiday pay authorization form and in which the Police chief system police chief fire chief and assistant fire chief you get authorization from the mayor and the city Clerk before the working holiday so we conduct properly document any holiday pay for those particular employees as far as the city attorney is concerned he received an increase in pay after the budget was passed The city council has refused to approve or for passing the amended budgets. And so what I'm going to do since the and is any additional appropriations that have been made we make sure that the city Clerk no sit and the minutes to the city council meetings and I add it at that particular time I added the. Right then and there to the budget to the transfer point that I give them and I noted to address it with them with the next council meeting so that they are aware of any additional appropriations so we don't have to worry about them Not wanting to approve in a budget amendments as far as the holiday pay for the firemen are concerned what we have been doing. And I've been the treasure this is my second term. But before when the city was created hello Lissan since two thousand six. They have been we've been paying the the fireman the salary and so to give them holiday pay we were doing was given one tenth of their salary but the the way they calculate the that was for regular employees and the way calculate hours for fireman I different so the auditors suggested instead of paying. Want to have to find a salary that we pay them out and so that's what we've been doing to do I think it's a difference of a distant calculations I think it's a difference of about thirty dollars in holiday pay thirty dollars more that we don't we we don't so now we just pay them hourly instead of paying the one tenth of the excel. And as far as the the landfills concern out there. Address that welcome and thank you Mr chairman and chairman Hillman members of the committee staff first. And I know from being a member of this body that you don't entered I don't think you light city councils to these meetings but I would highly recommend that you do so because the constitution gives them the authority over preparations not the mayor in nineteen ministration so when it comes to matters of appropriations that are responsible to the city council highways strongly recommend that you consider inviting Council members in the future so that they're also held accountable but I'm not blaming them we had some paper P. findings that we should not have and we were just as this year and I'll be glad to take any questions if you have any questions committee. BankAmerica. You alluded to the city council as is in charge of the appropriations account approval. How how was the. This is going back to the city attorney. Salary increase correct Sir to renters who made the decision to increase the salary of the city attorney. Okay what what happened in this situation we had a The cost of living increase one year I think it was three percent that city council approved a few months later the city council decided to decrease that three percent increase to one half to couldn't have to want to have prison. elected officials received the cost of living increase. However state law the it takes to take you can't take elected officials you can reduce elected official salaries without their approval so the elected officials that agree to it you know we had sent a letter. So the city attorney sent a letter saying he wanted his he would reduce the salary but then he resented. And so when he rescinded his salary was increased so the budgeted amount was different and then the amount that. When I create a budget that created the budget for the three percent increase decrease. And so when he rescinded his salary increased is this was noted here in the US findings but. For the last few years the last three years maybe the city council has refused to pass Senate budget senate. And so that's why I said it from that point on whenever we make additional appropriations acts to city Clerk to noted in the minutes at that particular time and then I changed my truths report I have a column with the budget the approved budget in Ansel admitted at that particular time and I know it to them to let them know these are appropriation changes that you may. Thanks. Thank you more questions representative recognized. Thank you Mr. mayor in your landfill Fund I know she transfer from St fun forty thousand dollars what was the reasoning for that. That that was simply I'm at and. That was simply an oversight We have several different funds the deputy Clerk simply. Deposited used to run the process for. And to the world deposit slip us to say and so it's just get deposited into the wrong account by mistake do not have a direct deposit for. street funds. The turn back yes yes okay so you somebody who ought knowingly took it out of there then correct this was my turn back this would be to use one of the phone this is not turn back this was another deposit that was that should have gone into the street from which he used the wrong deposit slip it was the deposited into the wrong account it was my turn back. Thank you Mr thank you more questions committee I have one on page seven of the top seems like they were six thousand dollars that basically to make it from one spot to the bank account and then it says the landfill Clerk resigned may twenty twenty one twenty one typically a I've been here long enough know some I resigns there's money missing their response for that money missing can you explain that. Yes Sir there is a real personalized a good job catch it so I want. Make sure you know that you got a great staff We also need a lady Riana reacted responded to it And she quit before we could display put her on a leave without pay pending investigations he resigned. is still under investigation from a criminal criminal point of view I understand you're going to submit to the bond board The long and short of it is as you say the response the best way to catch that would just have more eyeballs looking at those deposit slips and also to get a camera system out there deployed inactive which were we've done And we've had some I don't wanna blame blame it on this because and I hear this all the time we have a lot of transition out there one of the goals is is been to have more more more people looking at this on a daily basis so that you have less opportunities for collusion and this kind of thing so I'm grateful that we caught it when we did when it wasn't more than it is having said that you know one dollars too much my regret that it happened but it did lead us to adopt the better oversight system for our landfill so in that sense it's had a silver lining. Thank you any more questions committee. C. nine what what object toward the adopt this report thank you for coming thank you. Okay continue on page ten the town of Menifee for the year two thousand twenty this is a report that is referred to the prosecuting attorney. Fines and costs revenue of one hundred twenty six thousand six hundred forty two dollars exceeded thirty percent of the town's total expenditures in the preceding year by twenty eight thousand five hundred fourteen dollars and non compliance with Arkansas Code twelve eight four oh three this revenue is generated from traffic offense citations written by or arrests made by the town's law enforcement personnel or from ancillary actions related to the enforcement of traffic offenses this is a violation of or this is a comment on the speed trap law that was passed recently mayor Gary Greene is here to answer questions if you'd like. Thank you mayor granted account for. Thank you mayor can you please say your name and title for the record any state you may have on this findings merit Gary Greene Menifee Arkansas. Yes are you have any statements right now we if they're at the on going investigation going on with the city of Menifee and so I can't really discuss it but if it has something to do with the police he. we hold I have fired photos FOR ten th. But they can also keep bringing it back but he. They allowed him to be over the court system for awhile which is the legal. And so right now under the on going investigation. So the police chief you've personally fired four times yes we have a accusation of speed trap law violation where you use as basically a funding revenue by pulling people over and in your city council saw to put him in charge of the jail system as well yes our court system he said the court system yes. That's. Interesting yes very assisting that's three we have a ongoing investigation going on okay any questions on the Council are from the Committee. Seeing none without objection and with much sympathy we will file this report thank you mayor thank you. Okay continue continue on page twelve. Please the next year ports be referred ports with repeat findings we have Ouachita County for the year two thousand nineteen. Fixed asset records were not adequately maintained in accordance with Arkansas Code fourteen twenty five one of six all purchases and deletions were not posted to the listing additionally corrections for additions and deletions from prior years have not been posted resulting in in in an incorrect beginning balance similar finding was issued prior for. Expenditures from the shares communications facility equipment from one on all made by pre number check in noncompliance with Arkansas Code a similar finding was issued the previous two reports dating back to two thousand seventeen the bank balances in the inmate commissary in circuit accounts were not completely identified in amounts of fifty nine thousand twenty seven dollars and seventy nine thousand nine hundred sixty five dollars respectively additionally proper action has not been taken to disperse seventy thousand six hundred eight dollars of bonding restitution moneys held by the sheriff the similar finding was issued in the proper port county judge Robert McEntee and sheriff tax collector David Norwood are here to answer questions. Thank you Tim can you please say your name and title for the record and any state may have may have on these findings. Robert Mackey do Ouachita County judge. Dave Norton sure collector. I'll the I'll start out with the first with the fixed asset we're not accurately maintained. This is an ongoing battle for me and I have made corrections. But then it kind of Thanks pop up and so. The problem being mostly is in our storage facility which is our old jail. We got copiers and that kind of thing over there. And it's hard to put your hand on when the auditors asked for so the correction to that is House cleaning and also. To make sure that to we get the serial numbers of brand names go back to the office I make court orders and. You know court orders to delete it from the fixed asset Lester making sure their report to the assessor that it has zero value and then the following month make their report to the quorum court it's clerical in nature. it's not an oversight but it's it's clerical in nature and it really it lies on me I have had no other person to take responsibility because the final word is on me so I have a lot of work to do in the fixed asset area. I used to have problems in sanitation and road but we got those fixed it's now in. The other areas that. Things at the courthouse and so I have a I have the plan in place. To clean out the storage building but at the same time. log all serial numbers get those court orders made and get him off the fixed asset less the proper way I have no intentions of. Violating fourteen twenty five one oh six. But I can't be absolutely sure that we had another violation after we do everything that we noted do I have a little bit of problem. Not knowing exactly what those violations were. But to we'll take it we are taking steps to correct a. Thank you sheriff Norwood how are your when would you have any comments on your section of the fund. Yes. Yes she she does she's got to you will she can answer just about all of your questions it's all been fixed of. The restitution stuff I can't really say this gonna be on us is the court not telling us who this money belongs to whenever someone is found guilty of or you know you have a prosecutor in the court that should be to where this money goes if there's no money missing the Saugus sitting there has been sitting there. be sure about it fourteen years has been there longer than that love this money. The but Christie cannot conform to what's going on. Yes ma'am if the key please say your name and title for the record for an yes comments it's Christy Martin bill and I'm the office manager Washoe county sheriff's office. For the first one we were talking about we've got. We're. Not all funds were made by putting or not all. Correct not not all disbursement of funds were made by pre never checks that was situation where they have bought some of the equipment from the online and used a credit card for that and so that's been redressed re trained and so they're aware that that's not something that they can do that that's not practice they can do in future as far as the bank balances on the inmate commissary we in two thousand nineteen has swapped over from the tiger commissary system to a new system city Telcoin and part of that system was building the system and learning the system it was a new program that was out there so We I think we now at this point have an understanding of how to get the data that that the auditors looking for is there we just didn't have the right information that we kept pulling for them in that aspect as far as the restitution side of that act on the commerce or on that circuit accounts we actually have been given a gift of a additional staff employee that is able to actually go over by the judge. Like the sheriff is is using the nervous as the sheriff has said you know it for some of these we've been collecting some of this restitution money goes back to two thousand and there's in some cases ninety make does one case there's no designation of list of who gets paid out to or you know situations like that so it's going to take extensive research extensive going back to the courts to find out this information of how it even should be paid out and if the beneficiaries is you know of a person of business insurance claims even if they were made against in these particular cases. So as you can see that's almost a full time job in that aspect so we have been given a person available to do that and our staff from the courts of the who who's giving you that employee corn for corn for okay gotcha so when they've given to this year the county judge it's going to be in the twenty twenty two budget specifically for that okay got you yes Sir any questions committee center Beckham you're recognized just make sure that you do. Get that budget approved if you're paying them this year. Okay if yes it was in the other test most people didn't end up over over here and you're not not have the budget approved absolutely What happened on that we had a employee that went out on maternity leave and that employee at that time was being paid in that slot maternity leave but anything above the actual budget we will amend the budget and get that corrected in there Sir. Thank you thank you a representative for I recognized. Thank you Mr chairman chair of from this point forward Sir the people that actually give money in that fund Fortner children are for life. Do you have an accurate record of the people that are actually depositing the money and the people that actually spend the money and what the balance is for each particular one. Which twenty time I restitution or restrictions across thirty four commissary four I'm sure yes we do yes Sir okay yes. Anymore questions committee. C. nine judge negative I talked our staff and they will get you or your staff a detailed list of the assets that were not compliance so it can be rectified without any questions and see no objections we will file this report thank you Sir and thank you all appreciate it. Going to next for. Okay continue with reports with peak findings we have the talent all port on page thirteen from beginning on page thirteen all the schedule one of our report shows a balance of three hundred forty dollars in the general fund the town of significant amounts to the street fund Internal Revenue Service the recorder treasurer the H. ACT regional waste treatment district as shown on schedule three of our report on these outstanding amounts were reconsidered the general fund had a deficit of thirty two thousand nine hundred twenty dollars a similar finding was issued in the prior to reports. The town is not in compliance with Arkansas Code fourteen fifty eight two oh two in two or three as noted below ministered not indicate the budget was passed by ordinance resolution however ordinance two thousand twenty dash one signed on may twenty fourth two thousand twenty one indicate indicate it was passed on February third two thousand twenty but it was not adopted by February first John fund disbursements is exceeded appropriations by fifteen thousand eight hundred seventy three dollars a similar finding has been noted in the previous four reports continuing on page fourteen. State aid for highway funds for previous years was not transferred from the general fund to the street fund and un unallowable disbursement of previous year was made from the street Fund in noncompliance Arkansas Code fourteen fifty nine one oh four as of December thirty first two thousand twenty general fund of the street fund sixteen thousand nine hundred seventy seven dollars a fixed asset listing was established but it did not contain land owned by the town as required by Arkansas Code a similar finding was noted in the previous report. At December thirty first two thousand twenty the town of the H. ACT regional wastewater treatment district six thousand six hundred dollars for sewer collection and wastewater treatment the town pay nothing during two thousand twenty in noncompliance with an agreement stating the town would pay two hundred dollars per month until the data satisfy the similar finding was noted in the previous four reports. Mayor Kenneth Rayner and recorder treasurer Jeremy Allen are here to answer questions thank you Tim can you please say your name and title for the record and any comments you may have come to the right. Gillibrand Meryl FOR. Jeremy Allen recorder treasurer city of all port do you have any statements. Okay questions so what's I have a question for the chair yes Sir we had deferred report for all courts will be skipping those. Well we didn't read that because all port is in the process they have their having the term back home with held and so. Two thousand twenty is the latest reports we read that Marty has something she wants to say about that as well. But the committee has the power to two thousand nineteen report for the last several meetings and my understanding is the reason that that you guys have departed is to wait to see what happens with the with the case going on with all court and the revocation of their charter and right now I don't have an update on that but that's really the reason you have departed the last several months is my understanding. Okay anybody have questions. Thank you Sir so it's multiple examples of. When money and not paying it and your general revenue balance shows three hundred forty W. have outstanding balances. What money DO get neither taxation or general funds that you would get from the state or federal funds that what are you all receive this last year as far as funds goes why is it not in your general budget and where is that money going to. We receive Arkansas sales tax revenue we receive franchise sales tax from. entity and we received Lonoke County turn back as well how much would that total be permitted in twenty twenty. For for which it all together all three together yes Sir Approximately sixteen thousand number of our car correctly I totally hit. So we just want to take your number sixteen thousand you have a balance of three hundred forty where the money goes. The money went towards bills. In the monthly bills and revenue bills that come in utilities. So have you been making payments to the general fund the town owed to the street fund the R. S. the record treasurer the hat H. ACT regional waste treatment district your response say you are making payments and have payment plans but then we have another finding that you're required under an agreement to pay two hundred dollars a month that has been paid so are you making payments toward these outstanding balances with that money yes free for three funds paid each month. Then I have a two city there have been conversations going on and we have reached an agreement to stop by paying them in January. Okay anymore questions committee. Resented him. About that our S. the money over there are issues with the pain two hundred dollars a month on that also is that right five one four to start from on that last pain will take place in December okay thank you. Representative right and center back. One question Sir you know the money that comes in on the road money this turn back to the town's about once every three to four years your use in that property now aren't you as far as to the role of on we don't receive anything right now. One. Okay thank you Sir record recognized. We are still given out the grant money to community to the Committee from the city revenue. Given that ran money I'm I don't there is a finding back and on the nineteen report that there was a cash disbursement journal was not prepared for the community center grant funds. We are still doing that all the and that that was my state there was uh another journal that procedure under was not given to the auditor but no. The grant money has been used for grants only you you still give grants to community events things like that from the city revenue. Or no no it any grant funds for specific projects for that specific correct okay yeah. Make an election Senator are representing recognized. Yes Sir one question of the road money that actually comes answer just want to make sure that you are keeping that separated from the general fund yes Sir the money if that does come in that we do get calls from Lonoke County golf only to the street fund. Anymore questions committee. C. N. nine due to the nature of the lawsuit and revocation of charter I don't think it's appropriate this time is committee to file these file the report I think which deferred until we come to a resolution on that suit as such unless there's an objection by the committee we were to further report thank you for coming today moving on. Okay we'll continue with the city of your for the year two thousand twenty on page fifteen. Bank accounts were not properly reconcile for each fund in noncompliance with Arkansas Code similar finding was issued the previous four reports dating back to two thousand sixteen the following issues were noted when reviewing payroll records wages reported on the Internal Revenue Service quarterly nine forty one reports did not match the IRS form W. three or and or the payroll records. Wages reported on the **** forms W. two and W. three exceed the payroll records for two employees for a total seven hundred eighty dollars approval of a one hundred fifty dollar bonus for all employees was not noted in the minutes a similar finding was issued in the previous three reports dating back to two thousand seventeen. Eight AM for highway funds in the previous years of a eleven thousand four hundred sixty dollars was not transfer to the street fund as required by Arkansas Code fourteen fifty nine one oh four the city made payments in two thousand twenty to reduce the balance owed to the street from a similar finding was noticed noted in the previous five reports dating back to two thousand thirteen recorder treasurer Joseph Vasquez is here to answer questions. Ma'am if you can please say your name and title for the record any state and you may have a chassis baskets proceeded joiner treasure. on the bank accounts We are actually on the process of hiring a CPA to help with that our town is so tiny however I don't have accounting background So we are in the process of hiring a CPA to help with that as far as the See the Christmas bonus at the K. state is hosting the council tonight in their passing a resolution to to cover that so it won't be another mistake I'm leaving out the Christmas items taken I believe we did pass it but we just forgot to put it in the minutes back in November of last year so but the city will be passing a resolution to cover that that part. as far as the pay roll situation the city has been manually calculating every employees until I came in we just got quickbooks the software quickbooks mid last year so hopefully this year we will take care of that is because I guess it was being calculated manually they were not updated the system has never been updated everything's been paper trail And even journaling and everything but I've switched it over and updated that part as far as this state term backs or the state funds I think because originally it thirty three thousand that we were a little behind but we got it down to eleven thousand so hopefully we'll get it down of finished it paying off this year. Thank you ma'am any questions committee. C. nine thank you for coming also present him. Okay excuse me I'll see in there you say you're paying six hundred dollars starting in September is that per month or per year. Okay so couple years to get that but well last year this street has the little term by that comes in and so because we purchased I believe a back hoe and so what it is that because the street really can't afford it the general pace the street and then that's how we we calculate those in their monthly plus additional that would to put in there to try to carry up and pay that amount. So what do you think you have paid off woman that they would a pretty good compared from last year to this year so we're. Hoping by next year okay thank you thank you any questions committee C. N. nine without objection will follow support they've come ma'am we were no. Okay we'll move to the town of Patton for the year two thousand twenty on page sixteen. Internal Revenue Service forms W. two were not prepared for the town's elected officials. A similar finding was issued in the previous report. we have a recorder treasurer Dever shall here to answer questions Michelle you're recognized please say your name and title for the record any state you may have never saw Clerk treasurer for the town Patton and when I took over I was handed a box and said just do it like it's always been done and so when I take everything to the she tell me just send all the information to the accountant and I'd get ten ninety nines so that's what I sent to the accountant will the accountant said that's not right that you're the auditor said that's not right so last year. I went to a different accountant and took her the minutes and said this is what I need it to be this is what we got written up for so I need it to be like this the W. twos she said don't worry about it I do other small towns I know what you need I went picked up our paperwork so what do I need to do said nothing I take care of everything else. When I opened mine up which was a couple months later it was another ten ninety nine and I realized she did not do what. I needed her to do so I know what I need her to do and I will make sure she. Does what I need her to do this the W. twos nineteen ninety ounce as my any questions many in Beckham or L. withholding taxes. So you was supposed to she did not because she did ten ninety nines but are you or is this tell withholding employees taxes elected official taxes and submitting that they have not be at and that was what was found the auditor had told me we needed to start doing that was in our amendment which is what I gave to her thanking it would all be done and like I said I just didn't look at it so therefore it was just a straight ten ninety nine for every arts city council makes a hundred dollars a year each city councilman gets a hundred dollars later in the year yes they get paid once a year in December but if he is what she told me we needed to do which is it has to have taxes held out I know that so I know to stress that to our account and that this has to be done this way no matter how you do the other cities I when I was done this way. Anymore questions committee. C. nine. Where is bell had and do you know where John Zarrella is yes ma'am we are about. forty five minutes. West of west southwest of. Where the name come from I have no idea. Okay native Americans okay it was the first and county state of Lawrence County okay the more you know without any objection or by the support they've come and hopefully get a pixel next year once the. Moving on. Okay from the information I have we don't have any reports with visitors here I just wanna make sure that's the case before we move on. Okay if not we'll move back to the the front of the sub synopsis SCCO two and and I'm not going to read to teleport two thousand nineteen we we discussed all port George that's going to continue to be the first one I understand so we will begin with the talent with the city of birth Bradford on. Page three. The Bouncin District Court bank account was not identified receipts issued for cases not yet adjudicated the payments made on all and paid the individual time accounts as required by Arkansas Code sixteen ten to nine the similar finding was noted in the previous three reports District Court Clerk at crystal Bonner contacted us and she's unable to attend today due to some health issues she did show up for last month's meeting she didn't get some communication that we we sent and she's working to identify the bounces and decides that she is leaving office December thirty first of this year staff would recommend we file this report yeah I think she showed up last time and is do we need to do so by objection will file this report moved on okay. Town of Franklin on pages four three five. this is one that was deferred last time we performed a staff visit when we determine that the findings have been stood substantially corrected and staff would recommend we we filed this report without objection will file this report. Okay city of sales bill on page five. For the years two thousand twenty two thousand nineteen two thousand eighteen and agreed upon procedures and compilation port for the city sewer system was not performed and submitted Arkansas legislative audit is required by Arkansas Code to fourteen to thirty four one nineteen one twenty a similar finding was issued to purport there's CPA gave us a call who they've hired to do their compilation and AP and two thousand eighteen is substantially complete they're working on two thousand nineteen and twenty so staff would recommend we filed this report without objection we will fall this report. Okay moving on to. Page none. We will look at the Sheikh County this is a report that's referred to the prosecuting attorney insists for the year two thousand twenty. The county paid to employees a total of nineteen thousand ninety five dollars without an authorizing ordinance an apparent conflict of Arkansas Code fourteen fourteen twelve oh two an Attorney General opinion two thousand eight dash fourteen as follows thirteen thousand eight hundred sixty six dollars page employee number one for sanitizing House Q. keeping duties performed outside normal working hours five thousand two hundred twenty nine dollars paid employee number two for sanitizing duties performed during and after normal working hours the county paid a total of one thousand six hundred sixty five dollars in an improper mileage reimbursements to the county Clerk and chief deputy clinic county Clerk for conducting business in their home town as follows one thousand one hundred fifty three dollars for making deposits that based on bank time stamps appear to be made on the commute to and from work two hundred nineteen dollars for difficult mileage reimbursements one hundred eighty four dollars for making bank deposits on days when according to bank statements no deposits were made one hundred nine dollars for other community and knowledge. This this report's being referred to the prosecutor yes PM I do not want in this is the will of committee I prefer not to file this one and two different and I have them here there's as president Hillman correctly put it there's a smell this one we like to get down to it ninety. All right moving on to page eleven. Newton County for the year two thousand nineteen. The county paid a total of one hundred thirty two thousand seven hundred fifty two dollars to two vendors to blast and crush rock at a quarry owned by a private individual in the county paid nine thousand seven hundred forty dollars for the purchase of the rock without a contract for core use or for gravel storage on individuals property because the gravel is not stored on county property the county is unable to monitor access to the gravel or maintain a record in the door further more competitive bids were not solicited for rock blasting and crushing in noncompliance with Arkansas Code in addition according to a county official the county use resources including trucks and employees to haul gravel for citizens to purchase purchase the gravel from another vendor an apparent conflict with Arkansas constitution article twelve section five as interpreted by Attorney General opinion two thousand as two forty three due to emphasis of insufficient documentation the value of these services could not be determined. On June eleventh two thousand nineteen the county sheriff sold one hundred three seized firearms to a gun dealer for twelve thousand one hundred fifty dollars rather than issuing payment to the counting the dealer issued payment to a car dealership and a sheriff's office subsequently purchased the vehicle from the dealership using gun sale proceeds as credit we noted the following areas of non compliance regarding these transactions the sheriff did not sell unclaimed seize property at public auction is required by Arkansas Code proceeds from the farm sale were not remitted to the county treasurer's required by Arkansas Code the vehicle purchase was not budgeted by the quorum court approved by the county judge and paid by the county treasurer as required by Arkansas Code. Documentation of the origin could not be provided for sixty one farm sold an authorization of disposal was not available for eighty three of the farm so. Yeah I can just say yeah just just seen from a committees faces we would like them to come for sure that we would to further support next time maybe I'll bring some gun with the. The. To open it throughout. So we would. Okay at the bottom of page Lawrence County for the year two thousand twenty. fixed asset purchases totaling two hundred fourteen thousand dollars not included on the fixed asset listing is required of Arkansas Code a similar finding was noted in a previous report we have verified that these items have been added to the fixed asset listing and staff would recommend we filed this report without objection will file the local council report. Okay. Continuing on page sixteen. With the town of wood Grange. For the years two thousand twenty two thousand nineteen free number receipts were not issued for funds received in noncompliance with Arkansas Code fourteen fifty nine one oh nine a similar finding was noted in the previous report. And miss wheat recorder treasurer Sandra Wheeler is not here. Okay was one deferred seizure comics almost for its report. K.. We have one report with refined with the findings and it's on the midway public water authority and it was for collateralized bank balances and we just received an email from the water authority indicating that these balances have now been collateralized by pledged securities staff would recommend we file the midway public water authority without objection will falter. Okay. on pages seventeen through twenty four we have several reports with responses staff will be happy to answer any questions that you have any questions from committee from page seventeen to page twenty four of the report any questions. C. N. nine without objection we will file these multiple pages of reports. Okay. On pages twenty five through twenty six you have a list of all reports with no findings. Staff would recommend we file these without objection we will file the reports with no finds. That's the conclusion of the presentation report excellent own right in agenda item the the next meeting will be Nov of it December ninth two thousand twenty one without any further action from the Committee we are adjourned.