Legislative Joint Auditing-Counties and Municipalities

All this mean order. President right of anything say forget started thank you will get started with Saddam be adoption to minutes of the June third two thousand twenty one meeting all accept a motion this body unless there's any questions we have a motion. Motion we have a second I have a second call favor say aye. Any opposed thank you move on out and see. On item see is the discussion of noncompliance municipal accounting law. And are. A meeting we discussed these issues on the town of twin groves in the town of Gilmore I'm happy to say the town of Twin grosses made substantial improvements and we are recommending that we stop the process of the withholding of term back on them. On the town of Gilmore. They have not made improvements and so we would recommend that we keep during the process of 1459117 at to withhold her back on the and and this this would be the first step as far as for Gilmore to withhold 50 percent of their term back. Their love you're recognized thank you Mr can you remind me of is still what what the offense is with the city of you know more. What kind of some of the background S. as substantial noncompliance with the municipal council law which is in 1451114591 a 1 to 119 it's it's basic accounting principles like reconciling bank accounts keeping journals and these findings have been repeated for several reports in a row going back several years. Have we at the city Gilmore before us. They're invited to be here today but I don't think that they have they're here. If so they haven't signed in. Okay all right thank you but they're missing. I was trying to fix the day which page of their findings are on. Page 7 through 9 in the synopsis you'll find findings for Gilmore. Yes BMC this have they have they are trying to work with the municipal league or or. To to try to rectify any of this because I know that municipally gives trainings and different things like that have they try to work with the municipal league to we resolve any of this Jeff correct me if I'm wrong but I believe we recommended that they contact Municipal League to get assistance I don't know if they actually have or not. Okay all right thank you in order for we it's just it's been multiple attempts to have them come in compliance and come to answer for this body. Yes we if we go ahead and talk and since we're talking about them on page 7 to 9 of your synopsis. Starting a new recorder treasurer the general fund back again wasn't properly reconciled and that's been a written 10 retort reports dating back to 2006 reconciliations when approved by someone other than the person preparing that goes back to 2016. Page 8. The general fund receipts and disbursements terms weren't properly classified or posted that goes back to 16. Hi the fixed asset listing ID include all that it should that goes back to the prior report. And the bank statements for the street fire equipment training and then Parks did include the copies of back to checks. Let's see. You can read on down there stickered restricted straight Fund monies were expended for unallowable purposes. That goes back to 10 reports dating back to 2006. Those are the items that are related to the municipal accounting law that have been repeated for several years. Senator Ingram you're recognized representative brown to be next. Gilmore is in my district and I wrote every member of the council to treasure the mayor. It every elected official in Gilmore and advised of how serious this matter was it is it not been resolved I also know that the Municipal League has reached out to offer assistance I recommended that they talked to the league and I've I've got response from one councilman is all that that I've received any nothing from the mayor or of the that at all regarding this so they're aware of the seriousness of this. And again they've been K. advised to reach out to the Municipal League whether they have or not I'm not aware. Thank you Mr are Senator enemy I think from this law passed to kind of go through this dramatic step of turnback funds being withheld there was a lengthy process and before we would initiated and at some point you run at the end of the rope and I think we're getting to it representative brown recognized. Thank you Mr chair I believe that this was the community that was asked if they had considered giving up their charter. And they said no. That was another one. So. What do we do ultimately if the city does not come into compliance. This this process is lined out in the code 1459117 and basically there's several steps the first 1 is to notify the entity that they're noncompliance which we have done this is the second state for Gilmore where 50 percent of the term back will be withheld. They have 60 days to come into compliance and after that 100 percent of their term back would be withheld they have another 60 days to comply and they call us at any time during this will go look at their stat but after the third 60 days then the money they have been held in escrow their term back would be ready redistributed to other entities that to other cities municipalities that can't turn back. And then we start the process over for the second time and if this process is completed twice was in within 3 years that's when the committee has the option of. Starting process wrote revoke their charter which is where we are with all port district thank you very much. I see no further questions without objection we will take the town of Twin rules call for the noncompliance list because they're complying with this and we will send a letter to the town of Gilmore in compliance with the law. The center on Gilmore and they're not here they were invited to be does the committee want to go ahead and deferred this report yes ma'am any objections. The what deferred your support. We don't want the agenda we're now review the reports. The first the first report with guest here is the city of Camden competitive bids were not solicited for project to upgrade the water sewer and gas lines at the city airport in noncompliance with 2292 or 3 and the purchase of 2 police sedans by rescue equipment and a fuel control system in noncompliance with 1458303. So Arkansas Code allows being to be waived under certain circumstances require criteria or not documented ordinances passed away competitive bidding for the place identify rescue equipment. And then the Clark we have compensated absences records were not maintained in accordance with the city's policy this is under the heading of previously deferred reports I think the mayor is here to address these findings thank you any privacy Camden wants to go forward this kid at a table. If you can if you all 3 of you can say your name and title for the record. Please press but Sir Julian Love Me of the city of Camden. Donna Stewart city Clerk. The Attorney. I think we might have to the microphones off Mike Lee please Turner's office having at that there we go we can try to address wanted time wise we're doing unless there's a pre need for a job any statements upon this finding. We have responded to everything in writing is we are supposed to. As far as being deferred we received letters. Stating that it would be looked at on the thirteenth and then the next letter released receives saying that in June it got deferred and there was nothing in between received saying that we should have been here in June. Okay time for questions anybody have questions I have a few first how did you bodies from and why was there no competitive process doing to bind the sedan specifically This ends were purchased from jim golden Ford in Camden. And we did submit bids we ask for 20192019 so we're not available so he came back with basically are saying bid request with a 2018 filled in and our assistant mayor did not realize or think about that we needed to go ahead and put out another bid to get those because it was basically the same thing just a different year thank you mayor is just a sedan that you drive around personal use is that this 1 are different vehicle. It's a different name but you do use city. Vehicle for personal use. One moment so I just want to check the finding one more time to see. About. The sedans are not in use by the city mayor there used by the police department. The current vehicle that the mayor uses is for city purposes and it was not purchased in that year and is not in this finding but I am correct that use a city vehicle for personal reasons that correct mehr. I ask you for personal I have a personal vehicle no. So you're saying that the city purchase vehicle that the gentleman there. Women just described. That you do not personally drive it around town for your own personal use. No okay less troubling to me because I've seen personally you get in and out of that vehicle after hours. In a city vehicle. If I came in this center so still the vehicle of the mayor Dr for the mayor is going to be an expedition and that was purchased the previous year the permission to be clear the mayor and if they would be if you're asking about the of the vehicles that are mentioned in all of our courses. And so for the. S. the question this vehicle he's not driving either of these vehicles in both used by the police department on horses that were in the 2019 all the funding of they would describe by the court a what I think you're asking about the expedition the expedition for his use in the city vehicle expedition which is in this report for personal purposes and that vehicle was purchased and is owned by the city is that correct. If you say the read in the report was not in I'm asking if the vehicle the expedition is owned by the city it was purchased by taxpayers. The expedition was purchased by the city and paid for by the taxpayers of course thank you any questions committed. What you're recognized okay I'm trying to figure this out because this is previously known for report but is it has nothing about vehicle so am I am I missing something. If you check the second of the third line or fourth line down we're talking about the required criteria not documented ordinance for purchasing certains police a dance and fire rescue equipment. Are limited from the. Excuse us I'm I'm looking at city canonesses water sewer upgrades I'm so I'm just trying to get yes Sir he keep reading the last line in that report the finding is the discussion of the topic today okay waive competitive bian's and so all right now now I'm up now I'm on it because I don't look to water and sewer gas not. All right so then let me and let me ask this question so. And you all send it out for the. Is is that correct you sent out for bids on the. Re explain you sent out for bids then it came back we sent out for bids for 2019 they stopped making the Ford Taurus 2019 sedans 12 there was no 2019 stance 2018 with the last year it was made in a sedan. And our local dealership found us to 2018. So we went with that okay if we had gone up to a small issue be it would cost is about $10000 more to purchase the police vehicles so we were happy to find 2018 sedans there's a difference there every year you know there's a few changes here and there so we already had some 20 eighteenth when you have a great they were and we were happy to get 28 teams. And the vehicle that the senator is asking about that the mayor drives was not purchased until 2020 and it is not in this report. Okay so I guess I'm still on the competitive B. so Mysteel who who did this who did the audit for this because I'm trying to figure out who did the idea for this. Joe is is Joe archers here he's a supervisor over that audit okay would then I'd like to ask general questions consumption to figure out the because they they said that they sent it out for competitive B. it's and they came back. What the alternate. So help me explain why this is Senate then go out for competitive the. Your for staff the in the response letter they stated that they sent out B. it's for issue vis and then they Boxford so you're not apple's apple will not betting by what they do in house so that debates what what they've all. It would be like you know you've taken it apart to open bottles please call me it's not the people that other people didn't have the opportunity to build with a ball. As law requires. Okay all right. Thank you. The more questions committee. A representative right you're recognized. Mail could I ask you this you know he probably of Police today and that we were supposed to be taking bills on. But we didn't actually buy those. The ones that we ask requested bids now yes ma'am okay the did you know that you actually can can buy those cars under state contract and you don't have to build those. I just wonder. Did you all check that direction I personally was not aware that we can get them through state contract. Thank you for that information yes anymore questions committee. Yes Sir will come as 1 of the notice to bidders was for 22019 police package today. That was the bill that would put at. Correct but I think that is what. The author says you'll actually bought issue vis which may be a distinction without a difference or in my I think of his comment was that we advertise for issue vis but actually been requested for 22019 please package today so I'm not sure and we and we did yesterday and we got 2018 I agree with that but the the we would put out for sedans not sure with the issue became more questions committee under any other so did did shall not get this information or I'm and I'm what is what is happening here because Joe was saying he didn't get that information. So Joe did you not get that the big did you not look at did you not see the be it the the benefit because they're saying that Hey they beat out on sedans you saying the bid I don't issue these. Wouldn't. Their response letter okay city again letter here this is of the purchaser the police advanced were oversight issue vis will be it out because of the dance has been discontinued the purchase for prove by the council then the local dealership found sedans which a what police department originally wanted so they were happy with them and since the money's already been approved we made a purchase on the early. But that's what is today yes and I'm looking at that is correct that is correct okay we'll. The more questions committee. C. 9 without objection is report be filed thank you very much. We went on to the city of Everett I believe. There's no one from the city of Eldorado has signed in is anyone here. CNN we will differs reports will next and given the opportunity to come before the committee partminer read. On page 3 of your synopsis still under previously deferred reports we have Faulkner County there's a repeat finding under the share of. The balance remaining in the bond and fine account of 70 3000 was not identified was receipts issued but not yet entered on the arrest report as required as required by code in addition remaining balances in the circuit bond and bond shares the bank accounts of 183 and 26 respectively were not identified similar findings been noted in the previous 13 report stating back to 2006 and the sheriff is here to address this. Sure if you can come for us the table your position name and any testimony would have. Mr chairing committee thank you all so much for allowing us to come in and act and try to show some rectifying of of the situation has been ongoing situation I think for decades and since taking office 5 years ago we've been diligently working on some of these items have brought my fiscal officer here this is and you will leave and so I am 2 miles of the sheriff and and you will be at the fiscal officer and she will be able to give some clarity to any questions and statements that you might require thank you if I have any questions. I have one so just kinda explain what happened is it just an account there was money put in the wrong account thank you can give me the rundown of what happened so and I've worked at the sheriff's office since 2003 in multiple different areas I was places a fiscal officer in March of 2015 so every thing and a large portion of this was accounted for before me and I've tried my best to clean it and identify as much of the records that I can and and add I'm I wear many hats at the sheriff's office and and handle many task and so as time allows I've tried to research the that money that is identified to best know whether or not we can. Have court orders signed into at disburse that and to clean our books and so at ultimately I have done so out of at 2 out of the 3 bank accounts I have court orders today and have been signed this the bond and fine account at which is District Court bonds has been signed a court order by judge Claussen and Faulkner County District Court on July 2 and to disbursement according to the court order and the and the sheriff's the account and was also a court orders were signed on that as well by James Faulkner County judge Baker and and that was approved and. Let me see. That was approved on July 7 so the only account and now out of I handle 5 bank accounts the only account now that still has the unidentified and balance is our circuit funds and fund accounts and you're working to that correct right now right yes Sir it's just sizeable and while I appreciate y'all put effort in this the only thing he gave me heartburn was repeat findings but if you're working your way through it and get it to order saying that is good I think we all have faith in you complete that before you the next funding so any questions committee. See now without objection will fathers for help represent what I apologize thank you Sir. So so happy. I hear you say you're working your way through it how long do you anticipate it will take. To fix this so it is my hope that I can work through it within this next year I cannot guarantee that for this committee and this like I said the for example I have 130 pages of outstanding checks on this account and that I need to work 325 of those pages are unknown who they were even paid to I try my best to work in research as I do my daily tasks and so there's the 2 biggest problems on this bank account as we pay restitution victims out of that and then also there's bonds that are held for circuit court that I'm awaiting court orders on and some of those records before I took over I can't find I'm trying I I'm research and I'm going through court records going through our old systems going through all at accounting software that we have and trying to track it down but it is my view that I would rather hang on to the money and make sure that it isn't belonging to the victim before I just handed over to our county general fund or court cost. So that's why I'm trying my best but I can't guarantee but I definitely will make a strong effort okay all right thank you you're welcome more questions C. 9 we will follow the sport thank you for coming explain today 6 analysts thank you. I the next on the list is Marion County this is still under of previously deferred reports if you look on it starts on page 3 but the repeat findings are on page 4 under the share commissary bank accounts balance of 27000 was not identified a similar body was there in the previous report and then the sheriff's office did not pay over to the county treasurer on the first day of each month within 10 working days there after all funds belonging to the county from the commissary account. The following issues were noted with deposits within the commissary account deposits were not made in a timely manner deposit documentation did not contain identifying receipt ranges funds deposit or not reconciled to the cash drawer report and share of the sheriff is here to address these findings I think sure if you can't come for to identify yourself anybody else you may have with you for the record in any a state you're like to. Thank you for allowing us the opportunity to be here today my name's Clint and Sir for Marion County this is my executive assistant don flipping. And to she only referred to her supporters comment yes miss looking if you can explain the in state may have. Okay so we are using currently. Until next week we are using a company called stellar which is out of Wisconsin we're the only. County in Arkansas using stellar and Stiller cannot come up with the reports that would satisfy audit so we have since we got the second finding we have. Some C. start contract with them we have a new company coming in next week it's city telecom we know that they can pass they can produce the records that would satisfy audit. And so stellar is leaving next week and they are moving in so that we are hoping that that that resolves that issue. As far as the painted over on the first of each month that's just the. Just like she's that wears many hats got very busy. Working very diligently to do that better each month and then on the the third finding their. We have that resolved before. This was our first year to do commissary. Accounts whenever we did this as much as we were doing it and so before she even left town with our audit we have those things resolved we were making deposits in a better manner she showed she showed me how she wanted how the auditor would like to see the receipt ranges and everything done and so I have that fixed just you know as as quick as possible I didn't realize that I wasn't doing it correctly the time. Yes ma'am sure ma'am how long the Joe hill told. Just positions. I took office January with. I took office January of 17 okay ma'am how long you've been your position 13 years this week 13 the only hesitation I have is that this all these reports have been on previous reports and so that means that we've already kind of allergic to it if you're working through and get a fix that's fine but I know if we come back again and that same thing has been fixed that's when it becomes a issue I think for me personally I any questions committee. President you're recognized. Thank you Mr I feel your pain which to this is first year with your jail at that being able to be audited correct yes okay I feel your pain on that because of going through that and one of the best movies that was made was getting rid of Wisconsin bunching in CT city and after I did that all up problem one way with the brick of with the books and all that selection very good move. Thank you. Yes Sir. Any other questions committee. C. 9 without objection this report is filed thank you all for your time today. Thank you Sir yes. Marty whenever you're ready. The next report that we have is your support is on page 10 still under previously deferred reports we have the city of Quitman. And they had a finding. On November 4 of 20 the city initiated a $10000 wire transfer to the bank after receiving an email request that appear to be from the seller of a building the city was purchasing later that same day the sale notify the city that the email account had been hacked in the Y. request was not from the seller the city immediately notify law enforcement however his or of report date the funds had not been recovered the mayor is here to address any questions thank you both can identify yourself in your position for the record in any state you may have. Senate Karemire. Dana Barker treasure any statements. So we were in the process of purchasing a bank for city hall and I had we were dealing with an agency out of little rock but then U. S. bank of course headquarters was a little bit everywhere but we were doing it through email and texts and phone calls and so I was receiving emails and he was telling me you know within 5 days we had filled out the paperwork and so he sends ME NO we need to have this wire done and I am there was no address so I sent back to a most like will what's the address you know what we do I'm gonna be honest I've never done a wire so totally ignorant on that so he sent it to me and said you know this is the the address and information and so we follow through with it. It appeared to be you know it came through on my computer just like all the rest of them that in group with it so I had no reason to believe that it was anything did you no wrong so we went through with it you know I need to signatures lasting and assign it the council had approved it we use it seemed as though everything was exactly how it should be. So basically somebody hacked this guy's a kid the person's account you're talking to send you email from my account you've been working with the legally by the land from any wired to a fraudulent place in the money was basically still initial recover that money in overseas law enforcement or anything like that we have not and we started we've contacted secret service one of our officers knew him and and so we went through that I contacted Missy Irvin and she went to and task force that she knew and we count we just started spreading out going every direction we need to go and we just couldn't make his cap hit a brick wall for June jurisdictional issues and those guys are overseas and their possible once they got the money never see it well as I know you violate this finding technically but this seems like when things were it could happen to anybody and I'm very I'm very sympathetic some added $10000 is a substantial amount of money hello yes Sir okay that the deal actually fell through because we would not wire money again and that's the only way that I will accept money so nobody was willing wire committee anymore yeah and that the secret service said this is a very common thing and fortunately that they troll banks and loan officers just waiting to be able to grab on to one and do something like this any questions committee. Seeing none without we're gestures report is filed thank you ma'am thank you. The next report is a starts on page 10 is Phillips County we have repeat findings for the sheriff that start on page 12. And actually the first one is an is under the collector of the collectors tactics cash receipts and disbursements journals not contain your to date totals in noncompliance with code. A similar body was there in the previous 2 reports dating back to 17. The December bank reconciliation for the current tax account did not contain cash on hand of 19000 551 and outstanding checks of 1000 47 in noncompliance of code also the lectors reconcile balance in the bank reconciliation did not agree with a balance for journal a similar finding was issued in the prior report. And then drop down closer to the bottom under the share of the balances remaining in that the circuit insure 2 bonds bank accounts of they're at 3672 and 33752 we're not identified a similar findings during the previous 6 report stating back to 2013 and the sheriff is here to address any questions. Jim if you can please your name for the record and position you may have. Yes I appreciate of being here to clear up this matter I am Neal birthday of sheriff and collect a Phillips County and this is my chief deputy DO Winston thank you pursue any statement you may have. Yes I understand that these reported findings that we having and one of the issue is that within the collector's office we have a real bad turnover rate and is due to a you know low salaries and we often have to bring someone in and as soon as they get in and get started working or whatever learning you know the duties of those but it does positions and then they they have we have to let him go we have to start over again and what we have done in regards to trying to resolve this issue we've talked with the auditor stat usually calm and work that area we have found money that we are going to try and purchase of software through apprentice to try and eliminate those problems where we don't have these issues again what we can be compliance with the state auditor in Arkansas Code. Any questions committee representative you're recognized. Thank you Mr chair appreciate your being here to kind of clear this up but. Session that popped into my mind is he talked about a high turnover turnover rate and then you mentioned. We have to let them go. Is there a problem with some of these hired individuals that may be creates an opportunity or a necessity to fire them when you say let them go what do you mean by that well that and that may not be the proper term to use but when someone comes in and and and and work there and they realized that that the seller solo wants to get an opportunity to go elsewhere they just they just leaving we have to start all over again thank you yes yes Sir I got a question. Typically you know if you find a mistake and try to fix it that's fine but some of these a member pre filing specifically the one since 2013 are you all actively trying to resolve the account to get in within compliance right now there's somebody in the office who's working on this trying to make it compliance with law if that's true then I'm much more lenient than otherwise we do have someone that is very knowledgeable would bookkeeping and things like that she's she's pretty well and and I think that she's going to be able to so long as she's actively addressing it like going through regenerative yes we had we would doing that as we speak yes Sir yes anymore questions committee. C. 9 without objection is reports filed thank you John for coming today yes Sir thank you. The next report on page 13 under Prairie County this is still under previously deferred reports we have repeat findings into the county judge. The county judge has maintained a bank account in the name of the Prairie County food bank since 2011 to deposit donations used to purchase food for county residents in need during 2019 donations of 30 400 or were received and purchases totaling 7000 681 were made using 4281 of funds that were on hand a similar finding was not in the previous report Arkansas Code requires a county judge to maintain financial records we know the following areas in noncompliance right to the food bank account similar areas of non compliance rather than the previous report monthly bank reconciliations were not performed as required by Ark Code remembered receipts were not issued for all items of income cash receipts and disbursements journals were not maintained as required by code additionally expenditures were not budgeted by the quorum court approved by the county judge and paid by the county treasurer as required by code. And county judges here to address any questions. Please say your name and title for the record meeting state me may have oxcart on prairie county judge and I brought with me dept deputy prosecuting attorney on our county attorney Abrams Carter all these findings have been addressed they've already already just for the year 2020 and she brought the paperwork back and said everything was good since that time before she came in August so we changed the name of the food bank tech community food bank. We have a new tax ID number we have a new checking account number it the money this and it has nothing to do with county funds whatsoever we have a ledger here these delays who gives money First Baptist Church and as our business monthly money there's a lot of trust by different people to do this this money has nothing to do I mean it's it's money that was given to us by private individuals I don't really understand why see them being out it's not. Not county or state funds. Our list on that. Your control that bank account right guests are we right approximately 2 checks year who's we my secretary myself. So this is funds that you're using has not individual citizen but if funds as a county judge in your official official position correct on the go ahead. And all that I don't believe that to be legally the standard these he I believe this statute specifically says that you've come into possession of these funds in your position as county judge he missed Mr started does not come into the possession of those funds because he is county judge he made the choice I don't remember the exact year it is housed the what is now called community food bank is now housed at the County annex but there in these aren't funds that are that come into the possession of the county judge because he is county judge that comes into into it simply because he did place his own name on that bank account but not as Mike scored a county judge it's on it's on and make it count as Mike scarred an individual citizen does the council secretary sign those checks with him. What yes I mean if we write a check but we haven't even written a check this year at all our local grocery store anything we want will by 2 or $3000 at a time we buy everything it calls. We don't have a certain day we're open we had had 2 people come in this morning before I came over here the only thing I had to give them was dry cereal and ramen noodles because since we got the I'm not by anything I don't know whether to buy anything or whether you all of our state it's illegal I can't spend money that was given to me by church I don't know yeah I don't understand how that how you all have the authority to look at that. We'll be authorities within the law as your attorney correctly point out he's making a distinction that somehow you was county judge who's using the council secretary to work Terry and upon receiving those funds because your county judge that doesn't make your county judge in there coming out as a private citizens to me that's. Very much stretching the definition of what the law says and it seems an easy fix to me would simply haven't budgeted go to the treasurer and have the money held there and you can write those checks legally all day long that seems like a very simple team budgeting thing for personal accountability because the reality is you can spend that money on anything. It's not no this isn't an insurance take IT to the reality that anybody with those kind of point you could buy a $2000 dog tomorrow there's no accountability through budgeting through anything else that is the problem I see with this but all the for any other questions committee. President of love you look like you're ready for questions yeah I mean is that I mean I guess I'm on my understanding with the county to December let me let me ask you this county judge is do you believe that the next county judge. We'll be over the account it's been here since 1992. That's when it will start approximate middle of 82 and every county judge have the wheels fund since 1982 yeah I I serve with an account at the bank I don't know how we got I don't know what brought it up this time our 2 years ago surges by default of of of the food bank been in the annex is that how you is is that how I'm just always been there as far as I know before I ever became judge I became judged 2007 so it was there before May it's up I think I'm I can't promise I what I look back I think it started in 81 or 82 some of that now now here's here's here's the here's the kind of a issue though now you said your secretary signs the checks she if she dont written 1 check okay 2007 it was because she was gone I don't want to be involved in but the bank requires 2 names that required the county judge's name and executive secretaries veterans names on it we have to do that to check requires what he said again Sir it requires 2 names okay it's myself may required my name is county judge and my eyes that effect can you tell me I was going to ask you that seems within the preview of the county judge would you disagree. It would it would be at that point let me make a distinction for him so I can speak a little bit clearer about this in 2019 and all that was done and that's what we're that's what we're talking about here that audit found that the time it was under the county's tax ID number is that not correct okay and so since that time a corrective action has been taken and just be clear I took office August 7 of 2020 so this all predates my time you have to and I had to go back and look and try to understand since that time a separate tax ID number that is not is no longer associated with pre County generally has been has been created a separate bank account was created so that the longer under the same bank account that was already here however. The signatories thank the sign that the signatory states stayed the same although not in their official capacity it's no longer is no longer the county judge's name that is on it It is Mike scored his name that is on it along with the along with secretary who I. When so if your position moving for that you do not have to budget that don't have the funds with the treasurer or anything else at that account may ride forward even though it requires a county judge and say to more you had a new county judge of that county judge's signature would be surprised I I. I think it would from the bank's perspective it requires 2 signatures now the choices made it in this probably isn't the best choice of the guidance we can't what we've talked about leading into this it's a killer requires 2 signatures one senator would be is is at this point the county judge it could also be jondo from down the street as long as he runs the commission then the now community food bank which is set up as a non not for profit tax exempt status outside the purview of the pre county just so happens that Sir I just found out that is not incorporated as a nonprofit. I think thank you it wasn't in 2019 I believe that happened after the audit did happen after after voted with that here let's do all we got some questions Polin up I think. Answer questions representative for riot separately next. I don't see a press button okay yes is the who who obtained a new federal ID number of for the fund community fund. I did not did you apply for it as the county now proper plaid for days community food bank okay do they are they are 501 see 3 I don't know really know he's got the paperwork you. More just say no but. I will. Sir and just just to be totally up front with the I believe this is this is all done prior to it is an prior to August twenty twenty because I'm prior to my coming here and I was just trying to review the paperwork we got here but I believe it has been. Finished and of the tended to be in a better position to know when exactly that happened since the release predate my time here your. Could we get the auditor of your police. Javin Paul question Sir was wanted to be to the auditor of your daughter. Yes Margison former to that the as of last checked there's nothing on secretary of state site that would show this is incorporated nonprofit another entity so but I'm sure and shall make explain further if needed. Please do. If I get to make your it staff what we discovered was they did get a separate tax ID as an open a bank account as a non profit I agree with that but we did not find a nonprofit registration with the IRS which is what you asked about the 5163. There's a lot of confusion about that. Or worse. And if I'm if I'm a judge I'm if I may your honor I am senator is fine I know you room a lot it's all B. R.. What I'm looking at here is I can see where it looks like they started the paperwork I see the traditional form from the IRS to apply for the tax ID number is not complete this time if it doesn't look like it's fully complete I will get with someone to make sure that this is complete I see they've attempted to assign positions. It is Michael J. Sturch as president of this new. Tax exempt status in miss Deborah Dunbar as the secretary treasurer but it doesn't look like they have fully finished it so I will make sure that happens. Earlier in well that's what we'll that's. What we get with me that I'll make sure this gets done. There we go of this get results anymore questions committee I represent rights privileges sorry for judging question for release to serve when you guys are doing your budgets in October November of each year that you turn into the budget committee of the of the quorum court yes Sir does this appear on your budget. We don't I mean no Sir that is was held in a separate separate bank account the county I mean the quorum court knows we have it that's fine with them I don't know how to budget because I don't know whether we're going to service one person a month or we average usually 60 to 70 people a month come to get food I haven't done anybody needs those since June because I'm afraid to go spend the money we've got 12000 plus in the bank I have already food I gave a break today ramen noodles and cereal and I would like to have the opportunity to go put money back in the face R. O. put food back in the food bank and let me start helping people out yeah COVID it has slowed it down a lot and a lot of the people that come for the food bank or elderly people and I will deliver the food well Christmas Eve we delivered a lot of people face. I'm distraught we're trying to help people at all yeah I'm not trying to do anything and when Deanna Johnson I order is already looked at 20 and she gave it back to us and everything was perfect so I mean I you know I I don't I don't know what JD well certainly jump in real quickly I think the order that you spoke of his here who said everything was perfect would you like to give a report on that. The Anna Johnson the staff of the date for 2020 they had prepared the receipts of bills the I have done everything except budget the town and. I don't know funding. Still. Yeah. We were in the process to discuss and how they would budget this account since it's not handled by the treasure and. That's where we're at understood. I can make a suggestion to you I would say this point 2 course of action for you 1 U. D. couple that from the county completely and so that 51 C. correctly and then from here on out don't have tied to a county judge or secretary have as complete new 501 C. for the purposes of that or you bring it within the confines of the law and do it through budgeting you due to the treasurer's office moved that account there I think either 1 those options would likely put you in compliance with the law but we're currently sitting where your plane is middle ground I think you're not very legally suspect area any other questions from committee. Do you like to comment. I don't I don't have anymore we'll get honestly thought the 501 C. had been filed the paper works there somehow I didn't get so we will take care of that problem. It was attended before I was here I'll make sure it gets done and so we'll make sure you get. That particular at any sentence that seems to be the closest one available the closest one to completion I will try to make sure that occurs and they care that way thank you more for questions many. C. 9 without objections report be filed thank you. Thank you. With the. The next report we have vistors 4 is on page 16 of your synopsis the city of Morrilton. We have a repeat finding under the mayor in the airport Commissioner. A review in this is also referred to the prosecuting attorney we've made categories naziv a reports previously for now under reports part of the PA a review of airport commission board meeting minutes and rental records reveal that a balance of 35000 was due from 2 individuals for airport hangar fees and utility expenses through April of 21 this bounce conflicts with Arkansas constitution article 12 section 5 which states in part no city shall appropriate money for on it's great to any corporation association institution or individual additionally the airport commission does not have a policy in place regarding collection of amounts due for airport hangar fees and utility cost reimbursements a similar finding what is not in the previous report and the mayor is here to address this. If you can please your name title for the record in any state you may have where all of the smart thank you for having us there today this is brought to our attention in 2019 the the commission had an employee that was taking care of this she was not properly. Collecting the rent we've got this taken care we brought this into the city Clerk now this will be paid off in November. He quest Committee. So you're saying that you got it fixed and you'll get the money yes we do we dropped is read the down to the dollar and put all the money these place based $2000 a month in arrears that's going to the rears and in November will be paid off in Israel will go back up to $2000 a month okay understood he quest Committee. C. 9 without objections force file thank you mayor thank you. The next report is on page 1718 of a county. This is John reports regarding prosecuting attorney. The county pay the corner 17000 942 for miscellaneous jobs performed 40 to 55 for law enforcement equipment and insulation without an authorizing ordinance an apparent conflict with 14141202 and her general opinion 2008 as 14. On the next page of the county pay an individual 1560 for janitorial services without a contract for services or proper documentation. And then there's a repeat finding under the county judge quorum court meeting minutes did not document review the findings and recommendations of prior art reports any action taken by the quorum court as required by code and the judges here to address any questions. Judge gets a name and title for the record. I Mark last of a county judge. Any questions committee. Joe Jett interesting I have your from the day I have a question is not related to this audit have you heard of a gentleman named Johnny board this. Yes Sir can you tell me a little bit about Johnny. He's a former employee of the bank account. What a call soon to be terminated. Well there's there's a long list Sir. More than I would care to get into today. I've I have a. The I read in my landfill supervisor B. you know present when we discuss this and in Johnny is a development disables that correct skews me sorry developing disabled. Defined that police are does he have any capacity that is lower than the average I. Q. that would distinguish him as a development disabled persons yeah I would yeah I would consider I would say that okay yes thank you yes. The more questions on this finding. Thank you without objection this report to be filed thank you. The next report I will be the city of sure would on page 19. This is moving in reports with repeat findings. Other key findings on District Court Clerk District Court Clerk was unable to identify $207000 remaining in the back count the receipts issued for cases not yet adjudicated in payments made on all unpaid individual time accounts a similar findings noted in the previous 11 report saying that to 2009 and. We have someone here from the court to address these any questions. Can you all please say your name and title for the record in state you may have. My name is Chris called on the chief court Clerk and with me today is going your she's my bookkeeper okay the state and you may have. Yes Sir we have I personally have been coming here since 2012. AS in 2009 we had a new system put in a new court system we had paid them to do a conversion of our records from the old system to the new system and when they did the conversion our first month that we were out of balance by $57000. It has been a nightmare that has been ongoing when I was here I believe in 2000 191 of the senators I had a whole spreadsheet done and handed out and he ordered that something be done to help us because we kept reaching out to virtual justice and asking for help thank you Senate spreadsheets we would work the spreadsheets and it back and nothing would happen so David Coles and his team came out went through our whole system and they determine that the version that was done was such a mess so incorrect basically couldn't be fixed so we have excess funds that are unidentified however we did not cut the check the virtual justice told us to issue to our general fund so we sorted ourselves because we didn't have the funds it 1 that's to pay within all of them so we felt like the majority of those funds belong to the general fund account. Then so we were very happy that we were getting on the context is to the state context established year in September we opened a new bank account as directed we started with our contact system the training personnel came in each month they went through with this for 3 months and showed us he said your balance issue see here your balance you're good and David Coles and his staff advised us after the bancsystem set for a while and was the same balance after while they would go ahead let us transfer those funds after paying stated portion and then a portion would go to our general fund. However the auditor came in this year and when she looked at the bank account and deducted the bond holds in any outstanding checks there were excess funds again so we immediately contacted contacts and ask them why when they said we were balance we had access funds. They looked into it and they got back with us and they told us that when they trained us to do our end of the month balancing they would have us. Close out our each cashier but not approve the deposits on the last date until we finish balance in the bank statement and going through all the processes which would take several days and then we would approve them and send everything out. Then we found out that because of that process they had us do. All of the deposits that we did not finalize on that last date the system was not going back to that last date in taking those and pay an amount so that money's just sitting there. So they told us that they are working on December trying to identify those items but that's just December and they're working on that for the auditor but that we're going to have to go back to September October November January February March April those months that we stopped immediately when they told us and we ask them why did you train us to do this specifically in our notes in an R. binder it says to do this. And we were told that's the way that we train however in the real world that's not how you should do it. My take on that is tell me how to do in the real world because that's where I live and that's where my counts are that's what needs to be done I contacted several other. Works better on context and talked with their bookkeepers and they said they have this they didn't realize what the problem was that they knew they had excess funds and I ask them if they approve their deposits and they said no we were told not to and I'm like yeah would you better start approving your deposit so it seems to be a context training issue. And I guess it's going to go on with each you know that's the state system so I'm assuming it's going to go on with their record by train and it's going to create excess funds so now we've got to go back in time. Somehow they got the time to go back and compare R. A. R. as in our eighties and see what didn't get paid in issue those checks. So it's all part or to justice and then now the context will excuse the terrible pun because I get some context about context because if it's the state system assuming that multiple different courts use it yes your. David David Coles might can help with that he's coming at I thought. David Kohl staff you guys can get a break and we can't we thought that was 16 so the context court system their contacts court system is for districts and service circuit courts it's run by the administrative office of the courts I believe that you know there's certain functionalities you know I I guess you could say there are some issues with the functionality and it's not as user friendly as some court clerks have like to the in the past with some of the other software systems I think that the the court is in the process of doing some updated for training and some updated updates to the software I was down Marty that I will get with context and find out exactly how this happened actually thought that no the. When we met with you back in the 18 that that was a pretty good solution and that would work for you and I it probably would have had. The deposits not work like that and I really wasn't aware that that's how that works but will check into it and see how that happens and see if there's a solution for you well we stop do that like I said mediate Lee when I talked with to reset context and she said no from this point forward approval it'll pay everything out so you're not gonna have that money increasing whatever you have an access to stay the same you just have to work through it. So a couple things one it seems like this is a systematic problem that we're going to address because technically if everybody did it your way the nearby saw clouds with law and into the pub audit so I don't know if it's the a preview of this specific committee but I like to put a note that we reach out to contacts in either have them in this hearing if it's appropriate for an audit or another legislative committee to explain that problem explain what happened because we start seeing these systematically through district in other courts then I rather hear from them why they messed up if they did not make accusations that they did and figure out we can solve it so we're not having these reports and $200000 admission from multiple court so I would put a note on that and see what the proper context to have that discussion any questions think represent raw you have one. Well let me issue you know where it mentions a 70000 009 as far as the money disbursed funds. Did this go through quorum court the previous year. As far as setting up the budget for the next year. The budget. I'm sorry I don't understand it okay what you know each year you have the funds in every account every official has different accounts well there this 76 $7009 it's mention here just wonder if that went through a an account that actually was budgeted the previous year you know during that budget hearings that you have for the counting I'm the bookkeeper for the District Court I only did deal with 1 bank account that's just the district thank you cannot so I don't know about budgets and all that it would be under the mayor's purview I'd I just deal with the district bank account this is just money that come in for our all our charges are cases that we have in our paid out to the different state and county entities and the general fund in any victims if there are any budgeting I don't understand what it is we have excess funds that we're not yes ma'am but you know it would have to be so at some point within a county that would have to be actually a part of the budget they go through and I just wondered if you had something proper funding so you're saying are excess funds that are sitting there what's going to happen with those funds no ma'am I'm just saying that when when you do your by the the county actually does that you know their budget each year for the next years. Money I just wonder if that come out of a certain funders we are it was line item to have had it was done mail I don't know Sir I don't deal with budgets or anything like that I'm literally just the bookkeeper for the District Court Lee I don't deal with budgets or anything like that I'm not I'm not the city Clerk dealing with budgets over the mayor's office I don't see any of that. It appears to be little is not really the the budget it was done it appears that whenever the book kicking System we're supposed to do those posits that's what Cozart cumulate miss under accountable for everyone because of the Clintons deposits they weren't is dispersed out there sitting in the gallery instead of just having our bond holds there in any checks that haven't cleared yet we had that access funds because they the system didn't tell us to disperse them because they weren't getting approved on that last date in the system didn't go back and pick them up thank you show up to have them disburse. More questions committee. Sooner without objection is report is filed thank you thank you thank you. The next report is the town of Edmondson on pages 20 and 21. This is still under report at report with repeat findings. And the repeat findings on actually on page 21. Under the recorder treasurer a listing of fixed assets was establishment not include additions deletions and control titles as well as values for land is required by code similar finding was that in the prior to reports dating back to 2018 I believe we have someone here to address these findings. Yes Sir can you please press a button repeat that should press button like come on. My name's Hey we show on the court the court drew to the town of Edinson. Okay shall you have any statement force. We're. But one off again Sir will your hand off of it now and should be good to go just let let it roll okay I guess you Sir. Yeah we worked on a this. I will get those the S. this makes counted and the next I did that all this to be done. But a. 1 of those I can't claim all this stuff because I just became or recorder treasurer in March of 2019. And. I get to read I get it done because all I can say okay Sir because I mean it seems like there's a substantial amount of information that taxes were paid to the IRS and if you want to get a pickle Quixtar not paying taxes are at something there by realize that so I would I would suggest you get that in for quicker you can have a bigger bite to then we're bringing for sure well. This this pirate here I will probably have to get the with the so where people because I paid with their will the computer to help me pay. If you tell me pay 100000 what else will that's the moment that I sent into the area from the old man 41. Of. Workforce away over. I don't know. I don't Attalea calculated myself. Yes Sir any questions committee. See now without objections reports filed thank missional all right thank you. The next report we have with the Mister is still on page 21 the town of the town of. Others repeat finding under the mayor the town did not obtain annual audit or agreed upon procedures and compilation report for the sewer department as required by code a similar finding was noted in the previous 3 reports I believe the mayor is here to address questions. Please say your name and title for the record and you're open at the minor league down. Charlie Bennett recorder treasurer any statement. You don't 40 you find anybody doubted wastewater smaller hours you can call me or say we'll get back to you and that's it. So if you all get somebody that will do amount we're all for. Okay what seems like the finding was. That the records were low initially lost because the computer crash yes my computer crashed and I've had some serious health issues and we had a one year surprise audit and I told her I was totally unprepared that I didn't have it done yet and she gave me of we'll give it to me or else you so. I don't know what I told us that it hasn't been done because I'm I have been sick and I mean seriously sick. And the. I give it to somebody else but there's not anybody in Letona that I would recommend to do this job. That's sad to say but that's the truth. Yes ma'am I understand small place like you all the employment sell the Arkansas but I was just with this finding particulars correct some kind of redundancy in replicating keeping system maybe a backup driver something like that so if you have that I have a back up no okay I really do in my of my inventory I believe that was an issue. Our fire trucks. That we purchased from the forestry for $11 apiece I need them on my inventory so I can I can keep up with things and I just simply like I said I was sick and I simply forgot to take them off the inventory before gave it to her okay yes ma'am. Any questions committee. CNN will look fine in order I know that might be a real issue. Hi C. no questions we or follows poor without objection thank you thank you thank you. That is all the reports I'm showing that we have is restored there anyone here. Yes Sir. Bill Ritter got here. Okay. Come for certain co incidence. Drew County the report is on page 19 of your synopsis are you here to get senator Gilmore. Of the woman to serve. Other repeat finding Andrea council on the sheriff was the deposits were not made in a timely manner fingerprinting receipts which are made up mostly of cash a similar finding was issued in a previous report saying that 2017 some page 19 thank you ma'am Page 19 if you're trying to look it up. Not sure if the name title for the record in any state you may have again no more go over Drew County sheriff this is a repeat of fine of finding we do we charge $15 for the. Of the digital scanning the fingerprints we don't take a lot of money I've had some personal issues I've since changed over to turn the money in on a weekly basis I'm sorry it was on a weekly basis not on a daily basis because weekly. If you go 8 days then we'll get already by that some have been turning on a daily basis a real sense of personnel to make sure they do that the. Certain times the treasure will not be in his office nothing's not doing his job we just wouldn't be there so that it could drop the money off he has since hired a person part time and I believe that's going helps help us out a lot so you'll take the day cast PAS over there and then the trader should record everything that's correct okay the question committee. See now without objection is report be filed thank share thank you. Okay now if you guys want to go back to the first and we'll catch up on all the ones that we don't have visitors for. The first is on page 5 for all for which no one was invited to a Ford would the committee want to keep deferring this report please for. On page 6 and 7 and we have the town of Franklin. Which recommended for and yes they were invited to be here and they're not here subsection one differs for. All parking on page 9 as well they were invited to be here well General refers for. Center of the town of Sedgwick and at the prior meeting we agreed to do a staff visit there and we determined that the town is correcting that the finding that they had to that is on page 10 without objection we will fall. Number are on page 13 we have previously deferred report spider this can't water users association it was deferred because we had not received a response but we have now receive an adequate response and staff would recommend that we file father for the objection. On page 14 and 15 we have the city of darks. Look a lot of work to elder. I'm here. They had we had findings here regard to the bond board and the PA receipts for community center rental exceeded bank deposits by 1750 Essex AR not a $90 payroll check to the record treasure was casting cleared before. It was supposed to be dated I make a judgment call on this is deferred will bring here we can do it okay well. We can do that but another wrinkle in this one is that. If you look on the next page under other matters at the conclusion of this report Arkansas Legislative on and law enforcement are in the process of investigating certain financial transactions and will we're trying to issue an addict a separate report Jimmy do you know the status of that. Okay. So when okay so we deferred this reporter September maybe we could do them together. When Kim says let me clarify so we have to report that we have to all in front of us now there's a special port that sounds like my was arrested on. Yeah perfect in in what I would like to do if possible just had a deferred to the next time have if possible special report this report and we discuss what defines our so there's transparent on that any objection that. And that's what we should do okay so the the only possibility there's that miss Williams who is in charge of our shortages you might hold it for a Friday meeting but we'll talk to her about having a year of that space somewhere another it will be perfect. Page 16. We have Ashley County a finding referred referred to the prosecutor this is under reports a part of the prosecutor the county paid 119 to a quorum court member for tractor parts without an authorizing ordinance staff recommend we filed. Follow report without objections. All right under that we have been County Benton County investigative purchases made by fire marshal from October 18 of his resignation in March of 20 the county discovered we verify questionable purchase telling $1000 on behalf of the on your fire departments further out and houses by audit revealed 356 and personal expenses and again this is been referred to the PA Stafford Rick recommend we file. So there's the county actually discovered it I mean there internal controls caught it and in the person's been prosecutor announced more than well the it's been referred to the prosecutor okay it'll be up to him as to what he does with an arc are. Follow the objection. Page 17 there's Garland County the county pay 3 jail employees a total of $6200 to provide security services for the county library without authorizing ordinance staff recommend we file photo objection. Almost there to go. On page 19 is a city of McRae. This was referred to the prosecutor would actually had repeat finding to. That they didn't come for staff would recommend we defer to this one differ for the object. On page 20 we have the town of Delaplaine. We had repeat findings there as well as being a this is an repeat findings the staff recommend we defer this the further court action. Page 21 there's the city of Shannon Hills. This mayor was also invited to be here today in and was not here staff would recommend we defer this one as well deferred till without objections. On page 22 we have 2 reports under the with findings category we had those here because we had not received responses since this was brand we have received adequate responses and staff recommend we file these file the report section. All pages 23 to 29 we have 23 reports to have findings with adequate responses and less or any questions that would recommend we file would be happy to answer any questions by my head if I have a question on these reports. You're looking through me wait a minute what we are good. I think we're good well objection we will file these multiple reports on pages 3233 we have 107 reports with no findings staff recommend we file these as well well the 0 several ports no findings without objection. And that's the end of the item the item even XP will be September ninth two thousand twenty one with that we are Jr thank you.