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Legislative Joint Auditing-State Agencies

July 10, 2025 ·1:30 PM ·Room 130 ·21:37
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Speaker 10 1:39
maybe not findings and these are listed on page one of the audit summary they're blinking red we will file these
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Speaker 18 2:15
it's on now this time I recognize MrBullington again first report that we have with
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Speaker 22 2:47
there we go I think we got it now So the first report we have today with
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Speaker 10 2:54
findings is the Arkansas PBS Fy24 report and this report and our review of37 career service recognition payments tolling about40,0 revealed that the Recorded in calculate the career service recognition for
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Speaker 26 3:22
back on again now OK sorry about that as a result
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Speaker 9 3:27
improper career had been made since 2017. that concludes are there any
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Representative Steve Unger Unverified 3:36
agency officials present who would like to come to the table Thank you would you please
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Speaker 34 3:53
be recognized arkansas PBS sogenyuris the director of education ar k an s as PBS James Downs
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Speaker 38 4:08
controller does the committee have any questions for the agency
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Senator Joshua Bryant Unverified 4:30
Yes Senator Brian thank you Mr Chair I guess this is this is just a sampling of37 or was it37? total career service technicians it's not going in and out
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Unknown speaker 5:26
Interesting don't try that for me yeah
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Speaker 50 7:10
can can chronic era and you and the secretary
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Representative Steve Unger Unverified 7:23
will will take notes are there from committee members Senator Boyd Sorry it's been audit I mean can we have some coffee
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Senator Justin Boyd Unverified 7:46
or microphones off again OK I mean so can we get some context on is this like if they don't correct the career service date
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Speaker 10 7:59
in As it'll mess them up and that's er vi ce or would say this is kind of an isolated thing
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Speaker 22 8:41
I try to talk loud if y'all can't hear me you let me know. so the next report with findings is the public employees retirement system just that way we have an audio
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Speaker 10 9:05
recording of what's happening OK, so the next report y s te m or the Arkansas code provides that a partial equity ownership agreement or PEOA executed by a state retirement system and arkansas legislative council When submitting a PpeOA for including but not limited to and other information regarding the terms of the agreement that may be reasonably required for adequate review. Aper submitted a PO the accompanying private equity investment executive summary apers indicated an amount allocated Overre Harborfestartners 24 physical year in different than that300 million previously reviewed by ALc This allowed for 100 million to be committed fighting for apers
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Senator Jimmy Hickey, Jr Unverified 10:35
at your executive director of apers paperpers the committee have any questions but would you want to understand because you talking nt asset what's happened since it's such
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Speaker 68 11:06
a substantial amount. Yes and this is a to be you all you know apers just got into private equity in 2023 and so this new then as soon as we market value so our private equity for this year is at around 230% so return on it as of now how much has been called on it but it was just a reporting error whether we did the market value and corrected it and
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Senator Jimmy Hickey, Jr Unverified 12:14
so really though as far as and I'm gonna just put as as checks that you wrote out of there or or monies that come out of the retirement system itself they never exceeded the300 million that you got the original approval for because you're buying them at a discount Correct. just for inflation that we've got in place do you believe it's the in a situation like that to me because I see exactly what they're saying is that you know if it's an expense if it's an that's actually they're able to buy it at
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Speaker 2 13:09
a discount think that we may need to type of thing so there's kind of a gray area there the actual value amount after looking at it we just y'all would probably want to know what the what the maximum commitment to be so yes there is some gray that's from y'all's standpoint abundance
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Senator Jimmy Hickey, Jr Unverified 13:37
of caution but it it may be something that you know when that maybe we should do an amendment on or or look at it because I can see where we'd want to know or have a review of what what the with it just being bought at a discount that that scene within reason to me so anyway you up are there any other questions
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Representative Steve Unger Unverified 14:25
seeing none we will file this report without objection thank you OK the last report we
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Speaker 65 14:36
have today with findings is the treasurer of state FY24 report thank the treasure
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Speaker 10 14:58
As such, the treasure s state should ensure that controls maximize the likelihood that fraudulent warn activity will be not
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Representative Steve Unger Unverified 15:58
exclude salary the findings for the treasurer state thank you are there any representatives from the treasurer's office here if you would introduce yourselves please and
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Speaker 98 16:31
and director of government affairs Kennethurlson deputy treasurer and chief legal counsel fraudulently with the in
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Speaker 101 17:05
Paper warrants on and so once those came through then we initiated some additional controls around that and Since d d ition al ones coming through was this turned over to a prosecuting attorney don't that is that is when it comes through as an audit finding turned over to any prosecuting attorney I think that would have been on the agency to have turned that over
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Speaker 98 17:52
to them yeah.rr. Since they would be the victim. questions yes sir just want to make sure know who on these
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Speaker 108 18:17
the bank looked into it memory here out of Texas the other one I I don't know that it was cashed in the same location so as far as I know the bank has has done their due
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Speaker 104 18:29
diligence trying to identify who may have cashed it are there any other questions just want to follow up so this was
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Speaker 81 18:58
physically yeah Right y'all gonna have
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Speaker 111 19:07
that funds in my account before I can Right in it
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Speaker 114 19:14
what we've and is a payee positive pay
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Speaker 115 19:20
so when a check gets presented like that the checkcked to make sure that it place at the time so it is now on the individual agency that would do it because it was they're technically their
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Speaker 116 19:50
funds it was their check we do but if there's an investigation or if they've gone any further with it and I
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Speaker 108 20:08
can't speculate 00 $0 I did notify the FBI but once that money was refunded back to the state it dropped below their threshold for investigation so so it did and that's it was recouped yeah so it's not
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Speaker 116 20:23
like we're out that money that we got the money back
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Speaker 118 20:34
like what's the the I don't know all I know is that we got we can find out for sure. I'll get'll I'll get back with you on that
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Agenda

A. Call to order by Chairman.

B. Adoption of minutes of the June 5, 2025 meeting.

C. Review of reports. (Refer to the Summary)

D. New Business. The next meeting will be held September 11, 2025

E. Adjournment.

500 WOODLANE STREET, SUITE 172 • LITTLE ROCK, ARKANSAS 72201-1099 • PHONE: (501) 683-8600 • FAX: (501) 683-8605 www.arklegaudit.gov

LEGISLATIVE JOINT AUDITING COMMITTEE ARKANSAS LEGISLATIVE AUDIT JULY 10, 2025 STANDING COMMITTEE ON STATE AGENCIES

ARKANSAS COURT OF APPEALS - JUNE 30, 2024 ARKANSAS FIRE AND POLICE PENSION REVIEW BOARD - DECEMBER 31, 2024 ARKANSAS PUBLIC EMPLOYEES RETIREMENT PLAN – SCHEDULE OF EMPLOYER ALLOCATIONS AND SCHEDULE OF PENSION AMOUNTS BY EMPLOYER - JUNE 30, 2025 SECRETARY OF STATE - JUNE 30, 2025 ARKANSAS STUDENT LOAN GUARANTEE FOUNDATION - SEPTEMBER 30, 2024 ARKANSAS PUBLIC DEFENDER COMMISSION -JUNE 30, 2024 DIVISION OF ELEMENTARY AND SECONDARY EDUCATION – EDUCATIONAL TELEVISION – JUNE 30, 2024 ARKANSAS PUBLIC EMPLOYEES’ RETIREMENT SYSTEM – JUNE 30, 2024 TREASURER OF STATE – JUNE 20, 2024

Speakers

Speaker 10
7 segments
Speaker 18
1 segment
Speaker 22
2 segments
Speaker 26
1 segment
Speaker 9
1 segment
Representative Steve Unger Unverified
4 segments
Speaker 34
1 segment
Speaker 38
1 segment
Senator Joshua Bryant Unverified
1 segment
Speaker 50
1 segment
Senator Justin Boyd Unverified
1 segment
Senator Jimmy Hickey, Jr Unverified
8 segments
Speaker 68
2 segments
Speaker 2
2 segments
Speaker 65
1 segment
Speaker 98
2 segments
Speaker 101
2 segments
Speaker 108
2 segments
Speaker 104
1 segment
Speaker 81
1 segment
Speaker 111
1 segment
Speaker 114
1 segment
Speaker 115
2 segments
Speaker 116
3 segments
Speaker 118
1 segment