Legislative Joint Auditing-State Agencies
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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
Speaker 18
2:15
it's on now this time I recognize MrBullington again first report that we have with
Speaker 22
2:47
there we go I think we got it now So the first report we have today with
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
Speaker 26
3:22
back on again now OK sorry about that as a result
Speaker 9
3:27
improper career had been made since 2017. that concludes are there any
Representative Steve Unger
Unverified
3:36
agency officials present who would like to come to the table Thank you would you please
Speaker 34
3:53
be recognized arkansas PBS sogenyuris the director of education ar k an s as PBS James Downs
Speaker 38
4:08
controller does the committee have any questions for the agency
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
Unknown speaker
5:26
Interesting don't try that for me yeah
Speaker 50
7:10
can can chronic era and you and the secretary
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
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
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
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
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
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
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
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
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
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
Representative Steve Unger
Unverified
14:25
seeing none we will file this report without objection thank you OK the last report we
Speaker 65
14:36
have today with findings is the treasurer of state FY24 report thank the treasure
Speaker 10
14:58
As such, the treasure s state should ensure that controls maximize the likelihood that fraudulent warn activity will be not
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
Speaker 98
16:31
and director of government affairs Kennethurlson deputy treasurer and chief legal counsel fraudulently with the in
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
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
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
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
Speaker 111
19:07
that funds in my account before I can Right in it
Speaker 114
19:14
what we've and is a payee positive pay
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
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
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
Speaker 116
20:23
like we're out that money that we got the money back
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
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
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — LEGISLATIVE JOINT AUDITING - STATE AGENCIES, Jul 10, 2025 | Agenda | 2 | Official source ↗ |
Speakers
Speaker 10
Speaker 18
Speaker 22
Speaker 26
Speaker 9
Representative Steve Unger
Unverified
Speaker 34
Speaker 38
Senator Joshua Bryant
Unverified
Speaker 50
Senator Justin Boyd
Unverified
Senator Jimmy Hickey, Jr
Unverified
Speaker 68
Speaker 2
Speaker 65
Speaker 98
Speaker 101
Speaker 108
Speaker 104
Speaker 81
Speaker 111
Speaker 114
Speaker 115
Speaker 116
Speaker 118