Legislative Joint Auditing-Counties and Municipalities
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- October 2, 2026
Representative Cameron Cooper
Unverified
0:18
motion and a second to prove Senator Krowe motionpresentative Jean second all in favor sayy aye Minutes
Representative Cameron Cooper
Unverified
0:34
to begin a review of the reports Thank you Mr Chair can we back up the
Speaker 7
0:40
genda C on updated private reports real quick if
Speaker 10
0:45
the committee members remember starting last June July
meeting we've been tracking some private water and sewer audits that new legislation at that time gave him an eight month deadline to get their audit report in there last July 1 was that eight month deadline for those Well currently
Tammy Wisenhunt
Unverified
1:09
we have44 reports that are still outstanding that were due last June30th. for the physical year 123122. So I guess we need to have
some sort of discussion on what's the next step what we've done to this point is we started sending them letters of different calibers certified letters and all those on this list have reached out back to us we've heard from every one of them they're not ignoring us and they've provided us with engagement letters so that means somebody's had been con contracted with to do the work it's just it hasn't been turned into us to this point
Staff's recommendation would be and this is just a recommendation that we send another set of letters with
Speaker 10
2:00
a September 1st deadline to have the report here and if they do not have the report there then we can invite them in or
Tammy Wisenhunt
Unverified
2:09
the 277207 actually allow that's the wrong code the code asks for allows for y'all to withhold their turn back. with treasure so I guess those are our our choices here at this
time or third choice would be to continue to wait any discussion
Speaker 10
2:40
the the length of time that they've had these reports that we're waiting on were were dated 1231 of2022. the law allows for 18 months to get that done so that would have been last July 1 July 1st of 2024 they were due and now we've given them another
12 months another s discussion I'll make a
Speaker 18
3:00
motion any further discussion Representative dalby somebody show me
Representative Carol Dalby
Unverified
3:08
where that list is I'm looking through them we don't have the
Speaker 10
3:13
list here wet we can provide a list of the next meeting or it's we've
Tammy Wisenhunt
Unverified
3:18
given original list September of last year I believe we provided the list and then we
umm sorry guess I didn'tm not very well prepared for this part of the meeting today hope it picks up so but we can get that information to you ur ther discussion
Speaker 29
3:43
make a motion to make a motion to hold her many are we talking
Tammy Wisenhunt
Unverified
3:55
report and then there's an additional69 that just went delinquent with I
mean yeah additional69 and those of course those44 also delinquent now for the 23 report that was due there so there's 110 for
Speaker 34
4:07
this past July 1st in44 for the previous July4th first Anything else ator Croww recognize I make a motion to
Chair
Unverified
4:20
hold the turn backs on all these Senator makes a motion to hold the turn back on
Representative Cameron Cooper
Unverified
4:27
these44 water districts do we need a second on
that p re s ent ative er ry any discussion on this motion no discussion all in favor say aye all opposed
Tammy Wisenhunt
Unverified
4:43
and curries we need to address the remaining69 that just are now just what 10 days late last year we started letter campaign to everybody there and got a great response from that from those we've got it down from way
Speaker 10
5:01
over 100 down to this44 so it was you know so guess we need a discussion or a motion on on what to do with those
Representative Johnny Rye
Unverified
5:15
remaining69. Representative rye soe can ask you a question sir is that a report that they make to you guys audit report done
Speaker 10
5:21
by a private CPA they have to contract pay for
Tammy Wisenhunt
Unverified
5:23
it from a private CPA to and then submit it to us and we submit it to to this committee they need to do that thank you sir
Senator Steve Crowell
Unverified
5:33
senator crowell I make a motion we send a letter and give them a deadline and in the letter explain what we just did with
Speaker 3
5:50
the other44. date on that deadline deadline of September what what
Representative Cameron Cooper
Unverified
5:57
date Senatorrowle September 15 September 15th all right Represent lighterman second any discussion on the motion
Speaker 54
6:09
can edit that I want it before the audit meeting what's the audit meeting in September th believe so do by
Representative Cameron Cooper
Unverified
6:21
the7th ladyman motion is 2 September7th for that to be due any discussion on that motion all in favor say aye all opposed
Speaker 34
6:33
motion carries along the same lines we have three cities that
Tammy Wisenhunt
Unverified
6:41
are now 10 days delinquent on theirs one of those being the city of Springdale who has contacted us and said they have a draft set of financial statements from the auditor they're waiting on an exit conference we expect it within days P prescott and mountain home we have not heard from them. the normal past precedent would be to send them a letter as well and have their response to see where they are on that engagement.
Senator Steve Crowell
Unverified
7:13
Senatorrowll I make a motion we send a letter and have a deadline September 1st for
Representative Cameron Cooper
Unverified
7:20
these cities motion by Senatorrole second by Representative Lady any discussion on the motion all in favor say aye all
opposed motion carries we're ready to move
to item D sir right we'll move to item d on
Speaker 34
7:44
the agenda. Thank you Mr Chair. This is a review of the report you've got your synopsis in front of you starting on page one we have 11 deferred reports from previous meeting first one on pages one through three we have6 regional solid waste management district's review of selected policies and procedures and transactions from July121 through December31st of 22 we've got staff memberarrlie camp here today to present this
Tammy Wisenhunt
Unverified
8:16
report we've also got I believe Mississippi countunty judgedge Allan Nelson here make himself the end of the table be ready. Whenrlie when
Speaker 75
8:36
Charlie finishes there thank you Arkansas code requires Arkansas legislative audit to review selected policies procedures and transactions of Arkansas's regional solid waste Management districts
for this report ALA randomly selected six districts for review The locations of the state's 9 districts are shown in exhibit one on page two of the report Arkansas code requires the districts to obtain an annual audit of their financial statements from a private CPA firm the 2022 audit reports for the Salane countunty Sebastian County central Arkansas and southeast Arkansas districts contained no findings the audit reports for the Mississippi County district
And Ozark Mountain district both contained one finding related to lack of segregation of duties due to
Speaker 76
9:23
limited resources those are mountain district of it excluded the assets liabilities and contingencies of the neighbor's landfill which is part of legal proceedings discussed on page six of our report. the
Speaker 75
9:38
objectives of this review were to determine if the districts adhered to laws and regulations pertaining to districts and their boards of directors competitive bidding payroll landfill use and transactions
involving board members administrators and employees other objectives were to assess internal control processes related to cash revenues receiving and disbursements objectives unique to those mountain district we're determine the status of various ongoing legal matters involving the district the default on bonds issued for acquisition of the neighbor's landfill and an annual service fee assessed on our residential and business parcels within the district
Results of the review for the Mississippi County regional solid waste Management district ALA issued four findings for the
Speaker 79
10:30
Mississippi County district finding number one the
Speaker 75
10:33
district board member was paid $8250 to serve as district educator without board approval in the form of an ordinance or resolution in noncompliance with Arkansas code annotated 2181001 Management's response with any board member that is receiving compensation will be approved by board resolution.
finding number two the district board was not has not held open public meetings since January2021 in noncompliance with Arkansas code annotated 86703 and2519106 and district bylaws as a result the board did not select a chair each yeardditionally the board did not evaluate the district's solid waste needs on a continual basis for the purpose of updating regional needs assessments at least by Ily as required by Arkansas code
annotated 86704 and confirmed attorney general's opinion 1996-330. Management's response meetings will be held twice annually to meet Arkansas code at a minimum a chair will be selected annually. Findings number 1 and2 for the Mississippi County district were referred to the second judicial prosecuting attorney and the attorney general Finding number3 the district board is comprised of 11 members this board composition appears contrary to Arkansas code
annotated 86703 which states in part each board shall have a minimum of5 members with the number of members serving as less than5 additional members necessary to make the total number equal5 shall be appointed by mutual agreement of the other board members and shall represent the general public the board contains members authorizing the district's bylaws rather than Arkansas code annotated 86703 a similar finding was noted in a prior report. Management's response board
members will be restructured to meet Arkansas code Finding number4 the audit report was not reviewed by the board and documented in the minutes in noncompliance with Arkansas code annotated 86704 additionally a contract to update the district's solid waste management plan was not approved by the board and noncompliance with Arkansas code annotated 86703 and704 in district bylaws similar finding was noted in a prior report. Management's response
audit reports will be discussed next meeting and contracts will be voted on ALA issued four findings for the Ozark Mountain district finding number one competitive bids were not solicited for cost of collection and disposal of electronic waste totaling37,423 dollars in noncompliance with Arkansas code annotated 86704 and 1422104. similarlar issue was noted in a prior report additionally no
contract identifying services to be rendered and cost of those services could be provided by the Ozark Mountain district. finding number two excepted accounting practices provide that all income be deposited timely some receipts were noted as being deposited up to two months after the date of the receipts Finding number3 the audit obtained by the district did not include activities related to the neighbor's landfill and noncompliance with the requirement provided in Arkansas
code annotated 86704 section D5 that are full and complete audit be obtained a similar finding was noted in a prior report. legalgal proceedings as noted in a prior report the Ozark Mountain district is involved in multiple ongoing legal matters related to the neighbor's landfill including a 2013 lawsuit filed by the Arkansas Department of Environmental Quality related to violations of environmental law and regulations in a 2014 case filed
after the district defaulted on this payment obligation for bonds issued for acquisition of the neighbor's landfill subsequent to denial by the court of the district's petition for chapter 9 bankruptcy in 2014. the trustee for the bondholders filed suit against the district and requested appointment of a receiver. the court appointed a receiver who subsequently made recommendations that were ordered by the court including selling personal and real property and paying ADQ the actual cost
of the neighbor's landfill remediation and closure which was estimated at 16.5 million not including interest The receiver also recommended assessing an annual service fee of $18 on all residential and business parcels within the district to pay the bondholders ADQ claim and certain obligations that the neighbor's landfill in 2018 taxpayers filed6 separate illegal exaction lawsuits regarding assessment of the $18 fee
And during 20 twenty0 judges in all six cases ruled that the fee was an illegal exaction as of report date proceedings regarding distribution of file award to the plaintiffs remained open. Additionally during a meeting of the joint budgetgetittee of the general assembly in april 2020 the motion was adopted for aDQ to forgive the amount owed by the district related to closure of the neighbor's landfill it should be noted that in September of 2022, the Arkansas Supreme court denied a petition from taxpayers seeking to
prohibit the Pulaski County circuit court from distributing the funds that issue and directing said funds to the registries of the legal exaction courts from which they were collected for disposition persuant to the illegal exaction court orders ALA issued two findings for the southeast Arkansas district excuse me finding number one accepted accounting practices provide that all income be formally recited by use of receipts prenumbered by a printer or an
electronic receiving system that accomplishes the same purpose as prenumbered receipts the district did not issue prenumbered receipts for all income received a similar finding was noted in a prior report. finding number two During the engagement ALA staff noted that the district's bank accounts were in the name of and under the Tn or EIN of the southeast Arkansasconomicvelopment district as a result grant funds paid by the state for solid waste programs were in the name of SEAdd
similar finding was noted in a prior report. Management responses to the findings are contained in the body of the report ALA issued no findings for the central arkansas Saline County and Sebastian County districts Mr Chair this concludes my report. we have Mississippi county judge here is that
Representative Cameron Cooper
Unverified
17:29
correct Welcomeir. please state your name for the record it's John Allan Nelson county judge for
Speaker 93
17:36
Mississippi County OK and do you have a statement prepared for us have some notes here that I'd like to read for you the four findings that the auditors found we've already corrected three of those the audit we have had meetings since then the audit reports have been distributed to the members and and voted on the mayors in the county have
been issued emails or letters to provide board members to restructure the solid waste management board in a way to be in compliance with statute the board members that are receiving compensation have been voted on by the board and we've had one of our two meetings held for 2025 this year. so we will get our board restructured back in compliance
with the statute and And I won't be back here again so we'll get it fixed. thank you judgedge for for
Representative Cameron Cooper
Unverified
18:46
addressing these findings do we have any questions from the committee for the for the judge right seeing no questions thank you for having me and I
Speaker 95
19:00
apologize for taking up your time. thank you for being here that takes the report all of them right
Representative Cameron Cooper
Unverified
19:10
this whole the whole what he just read there's no further questions from the committee without objection we
Tammy Wisenhunt
Unverified
19:18
will file this report Mr Chairman if you would if with your permission I'd like to skip down to number 16 real quick so on pages nine on the reports filed with prosecuting attorney and attorney general's office we have a special report on pages 19 to21 used our programs to and4 reviewed of selected policies, procedures and transactions from
June6th to 23 through June30 to24. and staff member Charlie Camp is going to present this
Speaker 75
19:49
one as well. this report is issued perant to Arkansas code annotated 89,410 which requires Arkansas legislative audit to review selected policies procedures and transactions of Arkansas's used tire programs for this report a selected used tire programs two and four for review the locations of the four programs in the state are shown
on exhibit one on page two of the report Act7:13 of2023 created for used tire programs in the state to address efficiency entire processing including without limitation transportation the act requires that each district be governed by entire accountability board similar to a board of directors composed of 11 members wo county judges appointed from the two most populous counties in the program according to the
most recent federal census five county judges elected by the county judges of the program and four mayors elected by the mayors of all the cities in the program the act also authorizes programs to enter into interlocal agreements to determine the highest level of efficiency regarding tire processing the state has4 programs as shown on exhibit one on page two Accounts for the program selected were or our plan to be included in the audit reports of the regional solid waste
Management districts managing the programs for each board c co un t s for program two were included in the audit report for the pulaski County Regional solid waste Management district audit was performed by a certifiedc accounting CPA firm and contained no findings co un t s for program4 are administered by the southeast Arkansasconomic Development disstrict historically the southeast Arkansas regional solid waste Management district including the used tire program it previously operated were included in the annual financial
statement audit of SEAEdd Sdd intends to continue including the used higher program accounts now operated by program for in the annual financial statement audit of SEAEdD. as of the date of this report an audit report was not available for SEAEdd for the year end of June302024. the objectives of this review were to determine if the programs adhered to laws and regulations pertaining to the programs and their entire accountability boards
competitive bidding payroll entire accountability program reporting and transactions involving board members administrators and employees other objectives were to assess internal control processes related to cash revenues receiving and disbursements used tire program too the act mandated that program 2 consists of Fulton Sharp, Randolph Clay Izzard Lawrence Greenstone Inddependence Jackson Crackhead Mississippi Cleburnefaulknery
Speaker 76
22:47
Poinsett oodruff Cross Pulaski and Crittenden counties gra
Speaker 75
22:52
m two entered into interlo agreements with programs3 and4 the agreement withgram three stipulates that program 2 will provide services to alline and hot spring counties the agreement withgram for stipulates the program to will provide services to lone Oak prairie, Monroe, Saint Francis and Lee counties the approved business plan
Speaker 76
23:18
Program 2 serves 18,280 square miles in a population of 1353,499 based on the most recent federal census. On March
Speaker 75
23:30
15th of 24 Arkansas Legislative Council reviewed and approved the business plan for program 2. and approved a tire reimbursement rate of $2.86 per mile or per tire excuse me AA issued three findings for
program 2 finding one program 2 paid3,160 dollars to a company owned by the waste tire coordinator for data entry of waste tire manifest into the DEQ electronic portal without a contractor board approval in the form of an ordinance or resolution in noncompliance with Arkansas code annotated 218101. On March 13th of 2025, the board approved a contract with the company for the services and the contract was signed and executed on March 24th of 2025.
Management's response the district's weights tire coordinator employed a third party to accomplish data entry which requires an excess of50 hours of data entry per month The employment and payments to the third party were designed to have the required data entry done by a contractor rather than hiring a full time equivalent district employee to accomplish data entry. your recommendation of having the district board approve a contract with the waste hire coordinators independent company for third party payment was presented and approved
unanimously by the board on March 13th of 2025 as noted in your finding we have provided you with the contract and the minutes of the March 13th board meeting. finding number one was forwarded to the sixth judicial district prosecuting attorney and the attorney general for review as required by Arkansas code annotated 104419. Finding number 2 check images provided for program two bank accounts did not include both sides of canceled checks and noncompliance with Arkansas code
annotated 19-2501 through509 Finding number3 prenumbered receipts were not issued for all items of income and noncompliance with Arkansas code annotated 89405 and 1425108. For used tire program number4 the act mandated that program for consists of grant Jefferson Arkansas Phillips Cleveland, linncoln Dehey Calhoun Bradley
Drew Ashleylone Oak Prairie Monroe Saint Francis Lee and Chico counties gra m 4 entered into interlocal agreements with programs 2 and3. the agreement withgram two stipulates that program 2 will provide services to Lone Oak Prairie, Monroe, Saint Francis and Lee counties the agreement withgram3. stipulates a program for will provide services to Dallas and Union counties ar t of the approved business plan program4 serves 10,000773
square miles in a population of 257,545 based on the most recent federal census on March 15th of 24 Arkansas legislative council reviewed and approved the business plan for gra m for and approved a tire reimbursement rate of $2.90 per tire. ALA issued one finding for program for prenumbered receipts were not issued for all items of income in noncompliance with Arkansas
code annotated 89405 and 1425108. Prior to the report date program for obtained prenumbered receipts Management's responses to the findings are contained in the body of this report Mr Chair that concludes my presentation. everybody here nobody's
Representative Cameron Cooper
Unverified
27:08
here for this one any any discussion from the committee Representativedalby Thank you Mr Chair it's not
Representative Carol Dalby
Unverified
27:15
necessarily discussion on on the report I understand the report but I guess my question really
is we refer these to the prosecuting attorney and attorney general's office all the time we see that all the time when do we ever get a report back to them as to their decision on whether they're going to prosecute
Tammy Wisenhunt
Unverified
27:40
or not tomorrow morning at 80 I
Representative Carol Dalby
Unverified
27:42
mean each year in the Friday meeting so it's a whole year before we know what they've done is is is that my had some follow ups thank you is that by statute or is that by
rule of audit because it sure seems like to me We refer this and then we got a year before we ever find out what they did why can we not say within30 days of you making a decision you provide audit with a report
Tammy Wisenhunt
Unverified
28:09
Mr Jones just indicated that it's per statue is that correct we believe it is we can check on that to make sure somebody
Representative Carol Dalby
Unverified
28:15
just check on it and let us know because it sure seems like that's an awful long lag time and then I've read those reports because I haven't I've been on
audit before and you get this big old you know report and 9 times out of 10 they haven't done anything and this is taxpayer money and just not doing anything so if I could get that information out and share it with
the committee Thank you. sorry for my little rant.
Speaker 126
28:43
I appreciate the indulgence Mr Chairy yes Kevin White legislative audit so the requirement regarding the referrals to prosecuting attorney and attorney general it is in statute and what it is is they have a June30th deadline
for all those matters referred in the preceding calendar year so they have a and it's by statute again so it's January 1 through the end of December calendar year they have to report to us by June30th of that following year then we the compilation and preparation process of that complete report we're
Representative Carol Dalby
Unverified
29:14
I'm sorry ask a question of the witness so we're 18 months two years out finding out what we referred to basicallysically is that about right if I understood
so we could change that by statute Yes I understand I think there may be a bill in that regard thank you was about to say I think that's your first bill for next sessionpresentativealby Yes I
Representative Cameron Cooper
Unverified
29:41
understand I think there may be a bill in that regard thank you was about to say I think that's your first
Representative Carol Dalby
Unverified
29:46
bill for next sessionpresentativealy cosponsor and we'll seek others who want to help you any more discussion from the committee
Representative Cameron Cooper
Unverified
29:52
or any questions for staff if not without objection we will file this report
Tammy Wisenhunt
Unverified
30:05
going back to number two on the on our deferred list we have the city oflinncoln 2023. this is a private CPA report on page four Arkansas code requires city management to maintain financial records the financial records contain omissions and errors that are considered material as enumerated below the general fund financial records contained misstatements in cash accounts receivable in fund receivables accounts payable infund payable
fund ballots revenues expenditures other financing uses and sources and uses in the amounts of 9700 $22,190,017,405,0001999 20,880,310,000 and20,000 respectively due to activity being intermingled with other funds and the missions of prior adjustments to the financial statements. street fund
financial records contain misstatements in accounts receivables and fund receivables accounts payable fund balance revenue expenditures and other financing uses in the amounts of $19,0404,26516,09983 2500 183,000 respectively to defines me intermingled with other funds and their missions of prior adjustments to the financial statements. financial records
for the other funds in the aggregate contain misstatements and investments accounts receivables accounts payables in fund payables fund balance revenue expenditures and other financing sources and uses in the amount of53,68,00,14,190,970,0004 85034709400 $0 respectively due to fund activity being intermingled with other funds
and emissions for pri and prior adjustments of financial
Speaker 34
32:09
statements we we have mayor Doug Hutchins from the city of Lincoln here today. mayor would you
Representative Cameron Cooper
Unverified
32:16
proce at the table please identify yourself for the record turn your microphone
Doug Hutchins
Unverified
32:26
on my name is Doug Hutchins. I'm mayor for the city of Lincoln. thank you for being here. do you have a statement for us yes one
Speaker 136
32:38
of the and I have my auditorri Ward here from Barry and associates as well we've used Quickook software for many years that system we put in I believe 10 or 15 years ago the wayuickooks handles funds accounting is the movement between the different departments is held in accounts adjudgment accounts and then moved over we have switched the software toentreo software which handles municipal fund accounting which should address all all the misstatements that
are being seen if you have any
Doug Hutchins
Unverified
33:12
questions Mr. Ward can answer in more detail Mr. Ward do you have anything you'd
Speaker 138
33:18
like to say yeah so mostly this is a culmination we make audit adjustments at the end of every audit period the limitations of quickbooks doesn't allow us to segregate those adjustments by fund so they're unable to be posted correctly so really this finding it's been in previous reports is a culmination of current and prior audit adjustments we could not implement because of the limitations on the accounting
software they have changed software this year so this funding will disappear at at the for the 2025 audit this will no longer apply. thank you for that explanation Representativealby. Thank you
Representative Carol Dalby
Unverified
33:55
questions because I'm the one that held this this last time because these are these are it's a
lot of money and it's a lot of money that's going to places that it shouldn't have gone to segregated out or whatever but I'm intrigued
by the CA's statement just now that oh this has been a finding for several times how long has this gone back and why has this not been corrected until now that's one question and then when I'm trying to reconcile these numbers you have a couple or at least one of these numbers that matches up from the general fund and the street fund the404,877 dollars so my other question is may be
Yes and there's another 1 190,000 yes the 190462 so I guess my second the first questions to the CPA how come this hasn't been corrected prior if you've pointed it out and my next question was would be directed to the mayor that I would like to ask you obin Peter to pay Paul because if we're talking about street fund money turn back money you know do we need a payment plan or those
kinds of things to get this back in line because it sure seems like to me and I'll let you address it but just reading this and I read the financial statement and then I've seen some charts where your expenses are outstripping the revenue and it looks like there's a lot of fun shifting to cover payroll or sewer or roads or whatever could you please address those two big issues
Speaker 138
35:47
Certainly so I would this isn't necessarily money that's being wrongfully transferred or misappropriated. this is about classifying within the count of books what fund a transaction belongs to over a period of time that matching number of44 is the innerfund payable and receivable that's why those match up. so that's transfers that are made between funds etc. cannot be Over throughout history properly applied to the net
position of of each fund because of the limitation of the accounting software this isn't really saying this isn't saying funds are being misappropriated this isn't saying that funds are being used
Representative Carol Dalby
Unverified
36:29
wrongly or incorrectly could you answer my
question and my my question was how long has this been going on that you've reported it and nothing has been done that that whether it's quick books or whatever because you said in your statement your opening statement just a few moments ago that this is a repeat finding this is something
that you have found and so I'm wanting to know how come
Speaker 136
36:55
it how come if you found it what did you do to this this has been sent to legislative audit for a decade for 10 years and the explanation of where these numbers were coming from has always satisfied the audit so it was a financial reason for us not to switch software our system was small population in my towns 2494 people.
so we have a very small budget to operate on so an extra $20,000 to switch software packages was always what prevented us from switching software packages and as long as this system was being explained properly the audit in our reports and our replies just this last year we have the funding to fix it and you know part of our city council said let's go ahead and fix this but there is not funds
being misappropriated there's not missing funds it is what you're seeing is a combination of the funds being moved like from our water department payroll goes into general fund and then is issued as payroll and and I appreciate that and I appreciate the fact that it
Representative Carol Dalby
Unverified
38:09
you have limited funds and and we all understand that and all I can say is shame on the audit committee if we hadn't caught this in the last 10 years but it's a new day and this is from
2023 and when I when I've looked at this and I've read the report and I looked at the chart Still you are spending more money than what is being brought in and I guess my question is are any of these funds being say applied from the street fund money being put into the general fund
and those kinds of things that you're completely against the accounting law in the state of Arkansas No, they only
Speaker 136
38:53
within our water department which is legal to
fund other activities of the water department we supplement our police department with water department funds and outside of that we are all there there's not money being moved back and forth to cover we've got a good solid budget we follow our bank account balances reflect that and annual increase in our bank account balances show that we're doing our budgets and meeting our budget expectations
Representative Carol Dalby
Unverified
39:27
and one other question if I may Mr Chair small
small city limited funds kept you from getting a new accounting program how much are you spending on outside auditors when we have state auditors that can come and do it for you how much are you how much are you paying your auditors
Speaker 154
39:44
every year we're around 2000 and you know one of
Speaker 136
39:54
the reasons we've done that is because the state audit completely shut our
operation down for a whole week to come in and do that audit it was a it was a timing issue and the time we had to spend to put that together and that was a decision that was made before it's probably been5 years ago I believe. yield to any other questions I have some but I'll do
Representative Carol Dalby
Unverified
40:19
we have any other questions across the line if I keep going Senatoreyton
Senator John Payton
Unverified
40:30
Thank you Mr Chair. I'm curious you said you have a good solid budget that you follow and and so did these adjustments were they how often do you review your balance sheet and your budget as far as the city council reviewing it and were these adjustments done in a way that those balances were reflected accurately for the city council and yourself to manage that budget and see what your true balances were or was this money so
mingled up that it misrepresented the balances on the balance sheet I think the
Speaker 138
41:07
important thing to note here is so for a good example would be accounts receivable so on Q quickbooks there's only one account for accounts receivable and even though things can be paid out of different bank accounts from different funds really when we make the adjustment at the end of the year there's no way within quickbooks to assign that adjustment to a specific fund so it's not'm sorry to interrupt
Senator John Payton
Unverified
41:32
you but I appreciate the fact that you had a system that was
not custom built for this but my question is the management team which is the city council and the mayor that they're going to follow what he called a solid budget a good solid budget they've got to be able to see this information in their monthly or quarterly meetings or whatever and the financial statement every month but was it accurate how could it be accurate if these adjustments were made at the end of the year
it seems like your balances would have been off every month when
Speaker 136
42:08
you reviewed it. we present both our actual bank account balances or physical balances in the bank account and those aligned with our budget moving forward do you maintain separate bank accounts for
Senator John Payton
Unverified
42:18
each one of these Budget items Most of them yes right thank you a variety of a questionir let me
Representative Johnny Rye
Unverified
42:35
ask you this of all these funds and all these split outs do you have turn back for city turnback and turn back for city road turn back now if you're borrowing money from the road fund which you would be because you didn't get it straight at the end of the year but if you're borrowing road money you've got to come back with that during the year before that before the next year starts
Speaker 136
43:07
are you doing that mean expenses the only the only expenses that comes out of street turn back is sidewalk and asphalt overlays Street cuts stuff directly associated with the street turnback fund and that's one of the things that our new software separates out the funds the software side of the funds are separated out a lot cleaner we keep separate accounts we've got a turn back account bank account that we keep our balance up in
and we only do Street turn back activities out of street turnback fund we do not use money from the street turnback fund to fund other departments yeah it's all it's all kept very strictly kept separated there and the same with our our general fund we we only run out of our general fund the you know the police department and the office and our our areas that are supposed to come out of the general fund our water department separated out we run
separate accounts for those and our council gets a report on those accounts
Representative Johnny Rye
Unverified
44:14
monthly OK so your your as far as the street money that's coming
on turnbacks you're not using that at all On only
Speaker 136
44:23
for overlay projects sidewalk and street cuts yeah thank you sir any further questions from the committee
Representative Carol Dalby
Unverified
44:41
Representativealby I have a question of staff seems like I always have a question to staff on this particular report because we held it from the last time so that we could get a few answers do we then file it and send it on to
the prosecuting attorney I want it sent to the prosecuting attorney and attorney general's office to take a look at this or do we defer it to do that or can we would not
Tammy Wisenhunt
Unverified
45:07
need to defer it you know well no it's not automatic because it doesn't
meet the criteria unless you as a committee request that and then we will comply but currently it will not be send to the prosecuting attorney because it doesn't meet one of the criteria that automatically sends it there then with that I would have a motion that that we send
Representative Carol Dalby
Unverified
45:26
this on to the prosecuting attorney and attorney general to get another second eyes on this and we can I'm fine with filing it
if the committee is but I'd like to have it sent on just to have another set of eyes we have a motion to microphone
Representative Cameron Cooper
Unverified
45:45
thank you motion to file this report and send it to the prosecuting attorney and the attorney general is that correct Representativealby? was that was that your motion? OK do we have a second any discussion on the motion all in favor say aye all opposed motion carries thank you gentlemen for being here we appreciate it back to our synopsis number3 on
Tammy Wisenhunt
Unverified
46:16
page four continuing on reports deferred from the previous report we had the midway public waterter authoruthority2022 which is a private CPA report this for this report was held over last month because we lacked po a
Speaker 188
46:29
response we received a response and staff recommends that we file this report any questions from the committee
Representative Cameron Cooper
Unverified
46:36
without objection we will file this report. continuing on page 4 under deferred reports we have the
Tammy Wisenhunt
Unverified
46:47
town of banks 2023. this was a previously deferred report got a call from his recorder treasurer who Lee Baa who was invited here she still cannot drive and she requested that we defer this defer this report till September I will note staff would like to note that we are there currently doing the 24 it were more likely be in the October meeting information you can either defer this one or file it and we'll
Senator Ben Gilmore
Unverified
47:26
it's that's choice Senator Gilmore Thank you maybe question for staff for discussion here for the committee regarding town of banks the only thing I'm seeing was receipts that weren't numbered I think if you're there now I think we I would suggest we file this but you know I'm open but I don't see a reason to delay it that's where I am too I'm open
Representative Cameron Cooper
Unverified
47:51
to then I would make a motion if we need or maybe it's without objection any further
Speaker 131
48:05
discussion or by the committee without objection we'll file this report 10 on page 5 through7 we have the city of
Tammy Wisenhunt
Unverified
48:11
Dermont pages of for 23 and22. under the under the mayor we have the city paid a total of5,000 dollars and almost $1400
in23 and22 respectively for overdraft fees and late fees in conflict of the public purpose doctrine. This is a repeat finding. This this finding has also been referred to the prosecuting attorney and the attorney general's office. continuing under the mayor Accounting accounting procedures for municipalities are set forth in municipal accounting law per code. The city was is not in compliance with these codes and other proper accounting procedures is noted below. The bank accounts were not properly reconciled reconciliations were not
approved by municipal officials or employees other than the prepare. This is a repeat finding in the previous two reports re n ber receipts were not issued for all funds received this is a repeat finding adequate supporting documentation was not provided for tested disbursements of $26,000 that was 11 of52 tested disbursements re n ber ed checks will not always issued in the second order this is a a repeat finding the prior two reports cash receipts
and disbursement journals were not prepared for all funds this is a repeat finding Significant amounts of receipts disbursements and transfers were not posted improperly posted or improperly deleted resulting in unidentified amounts changes in prior years of fund balances Books being out of balance and misstatements of revenues and expenditures. This is a repeat finding annual financial statement was not prepared or published this is this fine has been repeated in the previous four reports.
Financial statements were not provided to city council members on a monthly basis. This is this findings a repeat from the prior two reports a lack of management oversight permits these permit permitted these instances of noncompliance with the municipal accounting law and properper accounting procedures the effect of not following municipal county law and proper county procedures precludes management from making appropriate informed decisions on behalf of the city continuing under the mayor check images provided by the
bank were not in compliance with Arkansas code for the actct833 fun. this is a repeat finding continuing on page six street fund disbursements succeeded budgeted amounts during 23 and22 by66 and 90,000 respectively in noncompliance with code this is a repeat finding Restricted street fund monies were improperly used for nonstreet related utility payments and account accounting services during 23 and22
totaling almost5300 dollars and almost6,000 dollars respectively in noncompliance with code. The city owed the following funds for transfers of restricted cash for which documentation was not provided as of december31st of 23. Generalon owed the nursing home capital improvement Street farmer's pensionrust Mcermott emeteryarpa police barn and fine working capital payroll fund a total of 135,000 dollars.
street fundow special sales tax street and water general fundarA a total of 209,000 dollars. district court automation fund owed the farmer's pension Act833 and the fireman's pension Trustund $1300 and over $11,000 respectively farmers pensionru fund or general fund over 11,000 dollars. farmers they Act833 fun old district court automation over the $1300 The amounts due from the
previous year the general fund made payments to the nursing home capital improvement fund of6,000 dollars street fund of $9900 farmer's pensionrustund of 100 dollars. McDermott emetery fund of700 dollars andarA fund of6500 dollars. farmers pensionrustund made a payment to the street fund of over 1000 dollars. there were additional attempts to make payments due from previous years but the payments were made to the incorrect fund resulting in additional interfund payables
on page seven the city water and sewer system did not obtain the financial audit or agreed upon procedure and compliance report for the years 2022 through 2016 it's required barkansas code The city signed the engagement letter on august twenty919 for the years 16 through 18. However, the city has not received this report from the CPA a similar finding was noted in the previous two reports under the police chief
Police department cash receipts exceeded cash deposits by over4,000 dollars during the period January 1 of 22 through June 12 of24. unreceipted checks and online payments were included in the bank deposits which concealed a portion of the undeposited cash on June 1224. the police department secretary Laodahayes resigned from employment and acknowledged misappropriating misappropriating police department funds
we have Mayor Walter Jordan here to answer questions. Staff would like to make two notes on the hi rd to last finding the street fund has been repaid all of their money as of the report date and on the second to last one on the water and sewer there is it is an engagement letter for 23 and22 all a year. Mayor, would you approach the end of the table and identify
Unknown speaker
54:06
yourself for the record Good evening
Speaker 200
54:36
is his own yes Walter Jordan Demont Arkansas
Speaker 202
54:41
I'm Clarkarrell CPA from Crossit on the outside account for the city of Darmont. thank you for both being
Speaker 200
54:52
here do you have an opening statement for us Yes sir the last time I was here at this meeting well I had just become mayor and during that time accumulated all of these
misappropriated funds which you all see on the back page tried diligently to repay those funds I've shown it a lot of attention and my statement I probably can answer several of these questions one of these pertaining to
a significant amount for more as the nursing home which there are no records to and at the same time look in this matter up and how these monies were used there I couldn't find any records to it Majority of all of these actions were done 20162017.
Now fireman's pension fund owed $11,000 that's been paid back a lot of these things have been paid back and a couple of these things through the auditors I think I overpaid but at the same time I've been working hard trying to eliminate some of the cities expenses in order that we're accumulate currency to pay these monies
back I have sent some of these figures some of these amounts to the prosecuting attorney and Because I wasn't in agreement with it the way it was done on city records and city minutes. that's why I did that. back over to the front of the page by themons the city paid out and funds that were overdrafts and
late fees there was a problem not with the CPA And I guess this had occurred before I became mayor because this was it by the audit reports and what brought it to my attention was one day I was left the office And I saw some city employees at the bank
Well payroll is supposed to be done on Wednesday but these employees were at the bank on a Tuesday mourning and I stopped and question them about what were they doing at the bank and started out on the jobs they said that this is the day we get paid Well all of the monies go in the working capital they contribute to these funds were done on a Tuesday because
payday on wednesday One bank does it by quick checks which was being deposited into the account on a Tuesday I guess right after midnight when we would make that same deposit on a Tuesday when the payrolls is supposed to be paid on a Wednesday.
Now one bank pages on a wednesday the other bank deposits their money in the bank on a Tuesday right after midnight. that there's maybe something that my CPA can answer are prepares
Speaker 206
59:04
the Cairo for city oh sorry and we pay
Speaker 202
59:09
it by a via a direct deposit from our firm that so the
deposit for the payroll is sent from our office on Monday evening and it's designated to pay on Wednesday apparently and I've not talked to the bank about this apparently one of the banks gets those mo un t s by by wire on Tuesday and they make those amounts available to the employees so we have in before we send the
checks for direct deposit We tell City Hall how much money to get over to payroll and they're always able to do that they just haven't been able to beat that one bank that goes ahead and lets the people have the money I don't know what kind of thing can be resolved on that but that's why there's and they were overdraft charges every time the other bank those people don't get credit for their money until wednesday when they're supposed to.
it's a it's a bank procedure that
Speaker 201
1:00:27
we don't control. and may I finish please Yes sir go ahead go on into
Speaker 200
1:00:33
further into all the report I know that there is some things that the city ofermon they have been doing and these practices have gone on too
long and the same practices for which they were doing and the office under accounting as city council I've had a call meeting on it to involve Mrerrell deeper into our municipality in our accounting department and maybe he could do his best to train the people in the office even at the call meeting
I get drawback from city council because for some reason my city council a few members I don't know if I'm legible to call names in this meeting I know I can't end city meetings un let's not go into executive session but my city council is made up of 6 people and out of those6 people Going over to all the report for
the continuous finding I think we need to involve Mr Tyrell Well we took that to a vote Miss Allen council membererroadnecks council memberook mayor
Speaker 65
1:02:08
we we probably shouldn't mention names like you mentioned before sorry for that Well I had a vote that would not allowed me to do so
Speaker 200
1:02:24
So I haven't given up yet on that because I'm taking it right back to the council this Monday night And I think that what what I've done for the city ofermont it might not show up on the paper I follow the steps that the auditors give me and I share everything on this audit with the people that work in the office but our accounting practices they just don't fit and the only way I can get them to fit
is how the people the people that's working in the office properly trained which should have been done in the city oferite years ago this this whole chaos created from 2016 and I'm aware of that these things that don't the audit that make it look so bad I inherited them but it's my baby. I just want to take care of it And I'm trying my utmost said
I have paid off a lot of bills that I thought the city shouldn't have had to clear up money in order to do such things and it was I wish Id have stayed retired I'm just gonna tell you the truth. I'd rather
Speaker 204
1:03:47
been fishing and hunting but we we appreciate the the the work that you're doing on this
Representative Cameron Cooper
Unverified
1:03:53
and I'll ask the committee if they have any questions for you on this
Representative Stan Berry
Unverified
1:04:02
and bury do you have a question out of all the conversation that we've had here is there any and apologize for asking
I should probably should know is there any money missing
Speaker 218
1:04:14
in the first finding I read about the
Tammy Wisenhunt
Unverified
1:04:17
overdraft fees that's being turned over to the prosecuting attorney and current attorney general's not per se missing but it was spent that we would like the attorney general and to look at whether it was for the proper purpose of the city
police department the last one that finding was turned over to the certified as a bonding board theA and the AG because there were4,036 dollars taking by the secretary of the police department that's that's the I guess that's a yes
Speaker 68
1:04:50
is there any pro has there been any promise or
Representative Stan Berry
Unverified
1:05:04
any provision to pay this money back to
Speaker 200
1:05:14
it May I speak on that that has been turned over to the prosecuting attorney and lo ng with the mother's things that investigation involve the city such as the a fire was turned in
upon the amount of monies I think what I did should have been done3 or4 years earlier where that the nursing home and working capital of the nursing home and that special sale tax fund a special sale tax fund was taken out of an account that was earmarked I found that out after I became mayor which was done in 2016.
Well at the same time with the figures it was only 201,000 47 $1 in the special sale tax fund but with the audit report the city is going to wind up paying300 and some $1000 back Well it says in the auto report with the monies that's been paid back
that is $196,00471 that's what the city has already tried to pay back that is the missing money and the pe ci al sales tax fund at the same time the city owes that they are my nursing homeor capital 110,000 Well reviewing the old minutes of those meetings pertaining to
this money being removed and it was like looking through a needle in the haystack these monies will falsely told what it was for and a council meeting the mayor at that Pacific time stated that so much with a nursing home and one half was street and 1/4 was nursing home
But when I found the old ordinance pertaining to these monies it did not say that the ordinance the ordinance stated One half since all nursing home that's what the citizens oferremont voted on to get the nursing home started for backup to help it Well this particular mayor address the council and the city that a portion of this money was
nursing homes and a portion of this money was streets that's how the mess began they drew the money out of the fund can't find what they did with it because there's no records I can't find how it was spent because there's no records so our piled up a big pile of papers that I found and I sent it to the prosecuting attorney
this started out over a safe walk the street program with a grant to do a sidewalk which at that particular time they did not have monies to match that grant our moneys are not good money. and they took money from this special sale tax bond to match the grant the grant was 229,000 with a57,000 dollars match. that brought it up to 286,000
I'm trying to find out what happened to the balance of the 140,000 find no record So I boxed it all up and sent it to the
Representative Cameron Cooper
Unverified
1:09:32
prosecuting attorney. Mayor I think Representative Jean has a
Representative Lane Jean
Unverified
1:09:37
question for you thank you chairman Mayor, how long have you been mayor? 23 you came in at 2323 right and I'm assuming that the CPA next to you can cross it he does
all your payroll well he does all the payroll OK what is your city treasurer
Speaker 200
1:10:01
have a city treasury and the city clerk there's one of those deals where and the rest of the office maybe do her job that's been in discussion and it always get tongue tied because she's an elected official and
I've called her in city attorney has called in but she has another job now I've got the council to see maybe the city clerk needs to be a full time job our problem is is record keeping and I'm sure Mr. Terrell can vouch on that we we still writing things on paper I just changed the computer systems
thatim one that was here before me just put a flag up for me because he was speaking on quickbooks but seem to be there's a problem with quickbooks so that's gonna make me have to look somewhere else for this municipality it's a it's been a fight and When I came when I came mayor all of the things that the city
ofermont had transpired stay up misappropriations that's what I had and that's what I dwell on not trying to follow in those same steps we have numerous amount of accounts that are dormant I'm afraid to fool with them because I don't want to be labeled Misappropriating funds all this paperwork that you
Representative Lane Jean
Unverified
1:11:51
got together and and sent to the
prosecuting attorney how long ago did you do that?
I did that in 24 so last year ok have you heard it back from me thank the prosecuting attorney the prosecuting
Speaker 228
1:12:06
attorney call me back when I send him that file. I didn't
Speaker 200
1:12:11
send it to him the last of the year I sent it to him the 1st 24 and what is it that you call when you go over the time because that was a statute of limitation
that's why I was told this should have been done prior
Representative Lane Jean
Unverified
1:12:32
to me sending Well I used to be a mayor and I sympathize with you because you got a mess on your hands I inhabited a mess I understand
Speaker 200
1:12:44
and I've worked with Mr.errell I've talked with him had a meeting with city council
to let him help us get out of
Representative Lane Jean
Unverified
1:13:03
this mess with the counting now have you had the municipal league down to try to talk to your city council members and do a little training and understand always right well
Speaker 200
1:13:13
good deal always always and and I appreciate them and their help. I appreciate Mr Terrell because every conversation he and I have it's about what can we do to make this better and and I don't like all of this
stuff If I had all of this showed up on the job I retired from I'll probably been terminated so right thank you mayor thank you Mr Chairman. any further questions from the
Representative Cameron Cooper
Unverified
1:13:40
committee Mayor we understand that you inherited a
lot of these problems and we are glad that you're working on them working diligently to get this solved and p re s ent ative Jean said take advantage of the municipal league if you need extra help
and we hope you can get these issues solved so without objection we will file this report and we appreciate you gentlemen being here today thank you thank you all committee without objection
turn to page43. we're going to take something out of order here because we have an ALc committee
meeting that some of our members are needing to get to here in a few minutes we're going to look at the report from on Garland County Mrcher thank you Mr Chair.
Speaker 188
1:14:34
under reports with findings with responses which we normally do not address individually unless requested which has happened today we have Garland County 2023 under the
Tammy Wisenhunt
Unverified
1:14:45
county judgedge librarian and comptroller ar land countuntyorn Court approved ordinance 2248 designating the Garland County library boardard rather than the treasurer the administrator of the library funds the custodian the custody of3.8 million dollars was transferred from the county treasurer to the county
library bank account in noncompliance code 13-2-44 attorneys general's opinion has been requested to clarify this matter and that was the case at the report date which was
Speaker 34
1:15:17
March 19th I do believe this report was released in May of 21. we
Senator John Payton
Unverified
1:15:29
have attorney we need to confiscate your library
Speaker 237
1:15:37
Mr Chairman John Howard Garland County attorney here with me is excuse me is adam Webb the Garland County library director we've askedpresentative Mcgrew Senator Clark, Senator McKee to be in here with us as well we appreciate you all letting us appear today and we appreciate your attention do have a brief kind of overview if he would indulge me for a couple of minutes go right ahead thank you so this is simply a question of statutory interpretation
this is section 132404 of the Arkansas code and there's this provision in that code that allows libraries to request their funds from the library fund from the treasurer and have that money in their custody and control for use and payment of their bills our position is that we followed that statute correctly and that we have been doing that procedure correctly for a couple of years legislative audit took a different position in
essentially that the funds have to stay in the custody of the treasurer our position was based upon the statute on my opinion upon the guidance of the association of Arkansas counties upon the sections and and processes that several other counties are using this identical procedure but aA took a different position so we went back and forth several times I had asked for
guidance that they were relying on and never been able to define or receive any specific definitive guidance there is no reported case that makes this position there are about 17 attorney general's opinions that have peripheral involvement in it but there's no definitive issue no definitive definition definitive guidance on this until the attorney general's opinion that
we requested and it came down in favor of the position that the counties took that the association of counties had advised us that we could take and it is contrary to the position that ALA took so we're here asking that that be rescinded that that finding be rescinded we don't believe that it complies with the law we don't believe it follows that statute and just has a supporting measure I'll note that there were a couple of other counties at least one that
I'm personally aware of Saline County who had essentially an identical finding that was about to land on them and when the attorney general's opinion came out that finding was withdrawn so that that didn't happen for them. However, ours had already been issued and so the response that we've gotten in response to will you rescind this is well we've already issued it based upon the guidance that existed at the time and we're unable to rescind it but going forward there should
be no further issues we feel that that's punishment for an error that we didn't commit so we're asking for that to be rescinded I'll be glad to try to take any questions
Representative Johnny Rye
Unverified
1:19:05
that I can. do you have any questions for the Mr. Howard JohnnyRo yes sir this3 million867905ir is that money that was spent during the year that at the final
settlement at the end of the year for the county that
Speaker 237
1:19:20
you actually paid back I'll let Mr Webb address that that is the funding for the library fund and he can tell
Speaker 242
1:19:31
you about the specifics of that Yes, so that's our collections for our amendment38ilage that's dedicated to maintenance and operations for the library that's about what our annual budget is so we asked for those funds so we could pay the bills through our business office which Arkansas code seems to allow thank you
Representative Cameron Cooper
Unverified
1:19:52
any further questions from the committee Representative dalby
Representative Carol Dalby
Unverified
1:19:59
not a question but this is for staff I understand what they're request is I'm hesitant for
us to take any action until we actually see what the attorney general's opinion says I mean I can read an attorney general's opinion differently than M White could read an attorney general's opinion and I don't know if it's appropriate that we ask our
legal counsel to opine on the attorney general's opinion to give us guidance I'm not I'm not necessarily opposed from what I hear but I'm hesitant to just say oh well that sounds great let's do that and and whether or not we have precedent in order to do that I understand what they're asking for don't want to penalize them if they've done something that's correct but at the same time what kind of precedent would we be seeking
and does the attorney general's opinion say that would you
Representative Cameron Cooper
Unverified
1:20:58
like for Miss White to come to
Representative Carol Dalby
Unverified
1:21:00
the table and if she's ready to ok I thought maybe she might be But I was giving her an out if she wanted some
Speaker 250
1:21:17
timecog thank you on Mister Chair perfect
Speaker 251
1:21:20
So Representative dalby thank you for the opportunity to
respond and give briefly audits position in evaluating this particular statute so this particular statute as Mr Howard has said it's broken into three specific subdivisions and I really think I could summarize for you our position based on the differences in two words the word fund versus the word account and According to the way that we read the statute the money could remain in a fund under the control of the library board but it's it's still in the county treasury's fund
we took issue with the fact that they removed that money and put it into a completely separate account and the reason that we took issue with that is going back to 1990 we based our opinion on77 different AG opinions from 1990 moving forward and we agreed there was some there's some gray I don't disagree with Mr Howard about that at all and until this most recent recent AG opinion came out which I believe it's in the last 30 days we really had no good clarity on this particular issue as to whether not the board could control the
fund and it remained in the county treasury or if the board could take the money out and put it in its own account and that's really the best summary I could give this committee on why we ruled the way we ruled now Mr White can speak to the standards and why we
Speaker 254
1:22:46
didn't change our report appreciate that Kevin White legislative audit so a couple issues I'd like to also point out and address with that even as Miss White mentioned some ambiguity in relation to it our finding specifically if you read it we note it the last sentences
an attorney general opinion has been requested to clarify this matter.ir our findings states that position as well that situation what I would say as far as changing audit report we issue our audit report on a certain date with the guidance and what we have at that in time and on our opinion at that moment in time that report was at the end of May we issued a report to say opinion was subsequent to that report being issued we have historically never
edited audit reports postlea editing of auto reports postre releases driven by standards professional accounting standards and generally deals with material misstatements and the numbers and the financial statements because that's what our opinion is about. does that help answer your question it does it's kind of what I thought the
Representative Carol Dalby
Unverified
1:23:52
answer would be and I understand that and I don't have
a problem with your explanation except your explanation I'm just wondering
if there should be an addendum to their report that says see attorney general p in number and and leave it at that but
Once again that may be changing your report after the fact and I understand why you're not doing that Mr Chair, may I respond? senatorlark
Representative Cameron Cooper
Unverified
1:24:23
did you have a question OK go ahead. I'll
Speaker 237
1:24:27
certainly yield Senator Clark. I was just wanted to respond to Representativealby's question but I'll yield to Senator Clark.
was just going to respond to Representative dalby I have copies of the attorney general's opinion here that I can provide to everyone if you want if if anyone would like to see it in it specifically does address that question of whether it needs to be a fund or an account it specifically says it can go into an account under the control of the library board so those questions are addressed in that opinion. Senator Clark Thank you Mr Chair the
Senator Alan Clark
Unverified
1:25:08
all of us don't have we say this often but all of us have the greatest respect forbLr and the work that they do And I have a personal respect for Miss Watt who I consider a friend and whose legal opinion I trust a great deal that being said represents us we are the legislature and when we go in and ding somebody it's not them dinging somebody it's us once it comes through here
and as a former member of the Garland County Cor Court if my attorney told me that here's what we're doing and this is why it's legal and we did it power would think I was on solid ground then ifblr came in did an audit and said no this isn't right there'd be a question but then if the attorney general comes in without any disrespect to our people but if the attorney general comes in
an opinion normally we respect a great deal and says no they did it right you know having worked in child welfare and a lot of bills for a long time I know truly when you have ive attorneys you have5 opinions so nothing against anyone's opinion but I think it should we should at least have a way to note that we have an attorneys general's opinion that's different because otherwise it comes down if you're on the quote unquote that you did something wrong
even though you got an attorney general opinion and something else and again and I want to respect BR and the the way we've done it and that we believe and what we've done but there ought to be at least be a note for their sake and for everyone's sake that because again for them it comes from the it ends up coming from the legislature that we're saying you did something wrong and so there ought to in my opinion there ought to be a way for us to at least have that
addendum of the attorney general's opinion that there is another opinion there and that's all I would ask. Representative y do you have
Representative Johnny Rye
Unverified
1:27:25
a question Each year the counties prepare a budget usually in November and then it begins in January
and what I I'm having a problem
with here might not have enough information here for one thing but this3,867905 Now that is being put into another account from the library and it's not being used I don't guess. for general every day situations that come through the the treasurer's office can you give us something on that guys?
Speaker 242
1:28:13
they are being expended according to the budget that's prepared we have an administrative board that runs the library and our budget goes through a double process so we not only have our library board create a budget which goes on a calendar basis but we also put our budget through the quorum court as well so it it's authorized twice and but that money is then used to pay for expenses out of that budget that is approved both by the board and by the quorum court sir but let me ask you
Representative Johnny Rye
Unverified
1:28:44
this this3 million dollars sir was that presented inside of the library budget for
the preceding year before the budget actually was began to be spent the following year some of that
Speaker 242
1:28:55
is carryover funds as you as you know we can only budget 90% of our anticipated income so there are some carryover funds in that amount as well but they are segregated and only used for maintenance and operations which is what our millages designated for but
Representative Johnny Rye
Unverified
1:29:12
was it itemized before the budget
Speaker 242
1:29:14
began yes sir we we had been paying for our claims process through the county process where we would submit our claims to the county to pay for our utility bills or the books that we buy and then when that money was transferred over to the library board we continued on with that budget the the same as we we normally had been doing it's just our our money kind of comes in big chunks rather than a revenue stream throughout the year depending on when the tax collector collects our our millage funds whether it's
money that's in an escrow account or if somebody's just paying their property taxes out of pocket
Representative Johnny Rye
Unverified
1:29:52
OK, but let me ask you this sir
being able to put that into a separate account in other words you're bringing it in to the treasure you're going
to another account hass that been oked by the quorum court that was that was
Speaker 273
1:30:05
done by ordinance according to that section of code that
Speaker 242
1:30:08
we said you know if an ordinance goes through that allows you or the board requests this then that's how the process goes so yes we went
through the getting a county ordinance to allow us to do it and then transfer that fund from the county treasurer to the library board's operating account that's good thank you for that answer
Representative Jack Ladyman
Unverified
1:30:32
Represented Thank you Mr Chairman. I have a question for staff that's OK and if I'm off base you just tell me but
I may be wrong but this audit was done in december of 23.
an attorney general opinion was released after that which it was a gray area as I understand it some attorneys had different opinions in December there was an attorney general opinion issued later which clarified the gray area so why can we not because this finding was true at the time so why can we not file this without objection and pass it on
because the attorney general opinion was listed after And I think it all goes into the timing as Mr White said so if we can do that I'd definitely make that
Representative Cameron Cooper
Unverified
1:31:34
motion are you making that motion now or are we gonna have further discussion first make a motion at the appropriate time appropriate time
Representative Carol Dalby
Unverified
1:31:42
OKpresentalby did you my thought was the same as representative ladyman I would have
I hate to say the word assume because we know what happens when we do that but
I'm guessing that we don't change audit findings every two years because the law changes if if we do this now and y'all made findings for 23 or 24 and we come back in the 27 session and change the law we don't go back then and change all those audits correct? this was the understanding of the law at the time
and so as I understand representative ladyman's motion that that we file it and go on down the road is that correct Mr I meanpresenting layman thank you
Senator Alan Clark
Unverified
1:32:36
senator clark we all know this is a very unusual situation and it is not 21 and it is not 23 it is before us now with new information. and for that reason I think following it's that's what we did but not without an addendum
that says there's an attorney general's opinion that disagrees that would you know if we want to make that motion I'll because I agree with not going backwards but we're but we're here looking
Representative Cameron Cooper
Unverified
1:33:17
his motion yet he said at the proper time yes yes ma'am you're coming
Speaker 251
1:33:29
no my apologiespresentative Ladydyman I thought we had a motion on the table but but the chair clarified that you said at
Representative Jack Ladyman
Unverified
1:33:42
the proper time p re s ent ladyman did you yeah here
yeah I understand what Senator Clark's saying and and and the county may object to this because it's it's a
record I understand that might be a problem but if we if I can make my motion
in a way let me try. OK so I would move that we approve this because of additional I don't know exactly how to term it but due to additional clarification in the law so what do we call it when we send it on we approve it file it file
it file this knowing that additional information has been found after the audit was completed not don't know how to turn the
Representative Carol Dalby
Unverified
1:34:58
representative if I understandpresentative ladyman's motion
and and I agree with it and I think we should file it but for record purposes for anybody who wants to come back and watch our proceedings note that the committee notes that subsequent attorney general's opinion was issued in this matter but we're filing the report as it stands but we know and recognize the objection of of Garland County and we recognized that the attorney general has filed an opinion
Representative Cameron Cooper
Unverified
1:35:34
Representativealby would you would you put that in the
Representative Jack Ladyman
Unverified
1:35:44
motion on the floor. I tried you withdraw my emotion and let me make
Representative Carol Dalby
Unverified
1:35:50
then I would move that the committee files the report but within but within the record that we have here the oral record
that we have here that we note that there was an objection by Garland County and that the
attorney general had issued us an opinion subsequent to the the audit report that had been presented but ultimately the motion is that we file the report as is the members of the
Representative Cameron Cooper
Unverified
1:36:20
members of the committee understand that motion?
Senator Alan Clark
Unverified
1:36:30
was the stipulation there that we acknowledge the attorney general the record
Representative Carol Dalby
Unverified
1:36:37
for the for the oral record and for the recording record that we acknowledged that there was an attorney general's opinion that has been filed subsequent to the audit and that and that we are noting that there was an objection by
the county but what we are that we are filing the report as presented OK, do we
Representative Cameron Cooper
Unverified
1:36:59
get a second on any discussion on the motion and we're going to limit this discussion to committee members
Speaker 48
1:37:08
So any discussion on the motion could senatorlark
Senator Alan Clark
Unverified
1:37:16
are you are you trying to figure out'm trying to get the words for the right motion it's not point of personal privilege but we I am noted as the alternate for Senator McKee. I was turned in as an alternate for all three committees by in Cornwell so but
the we would have to go back and hash all that out for something that's doesn't need that much attention but as a point of personal privilege this is I don't think we'll make Garland County happy but I I believe it's the best that this body
can do under the circumstances and I appreciate the motion. any further discussion on the motion
Representative Cameron Cooper
Unverified
1:38:10
understand what they're voting on all in favor say aye and he opposed Mution carries thank you gentlemen
Speaker 256
1:38:19
for being here. Thank you sir. please note the objection to Garland County for the
Representative Richard McGrew
Unverified
1:38:25
record. Mr Chairman Can I ask a question And I should know when we have a situation like that where they where the county disagrees and there's a difference of opinion on it with all due respect to everybody is there a process to appeal that report
Speaker 254
1:38:44
Mr.y would would you answer that question No sir. so in the course of the process right we have established findings we have exit conferences with the entities we have discussions with them when the report is final it is issued a report of my opinion at that date that I'm signing off with under my professional license and it's not amended or appealed thank you
Speaker 131
1:39:15
continuing on the reports deferred from the previous
Tammy Wisenhunt
Unverified
1:39:19
report on pages 8 through 9 we have the town of Gum Springs202322 and21. under the mayor in 2023 general fund expenditures exceeded budgets preparations by4,400 dollars in noncompliance to Arkansas code. This is a repeat finding in 23,22 and21 budgets were not adopted by ordinance or resolution as required by Arkansas code. This is a repeat finding
the governing body did not review the prior year's report or accompanying comments at the first regularly scheduled meeting scheduled meeting following the receipt of the report is required of Arkansas code. This is a similar finding that's been noted in the previous three reports I believe we've got mayorillandivry here today to answer questions that's that's
Representative Cameron Cooper
Unverified
1:40:11
meelm excuse me meldon I apologize mayor please identify yourself for the record my name
Mel Dean
Unverified
1:40:18
isdeanivry mayor of Gum Springs, Arkansas thank
Representative Cameron Cooper
Unverified
1:40:20
you for being here do
Mel Dean
Unverified
1:40:23
you have a report for us have a little something here recorder treasurer and I are working on these reports and we'll have deficiencies corrected on around July17th we were given two weeks to get it straightened out the rest will be on the next city council meeting which would be on August52025 in which we will go over the reports with the city
council members and part of it would be orders ordinances and resolute resolutions I'd just like the first just like the gentleman fromermont this is my first rodeo with being a mayor and just like him I had I got a good retirement I might have should have stayed at the house but doing my tenure we've got a lot of stuff done we hadn't I'm not like the president I'm
not gonna blame the last president I own this OK and consistency is what we're trying to do trying to keep a consistent thing going and also putting the specs on consistency and follow up now we will get this we will get these things done and I don't want any money turned back we need all the money we can get
we are currently in 2026 we're getting ready to we have a grant from the DlT where we have300 over300,000 dollars for our street fund so we're getting we're getting our streets fixed in but What all I wanted to say you know is just I dropped the ball OK and I I I put it on me so we're hopefully that me and my recorder secretary can get these signed to get get these
things ironed out and I think we can and and I know we will there are any
Representative Cameron Cooper
Unverified
1:42:33
questions for the mayor Mayor we appreciate you taking responsibility for this and working on these issues jackrcher from the
municipal league is here I recommend you seek their services if you need extra help Well Mr Chairman we
Mel Dean
Unverified
1:42:49
have a little bulldog down there by the name of Miss Amy Davis which is
a auditor so she's on us 100 miles an hour so I appreciate her I really appreciate her so next time you talk to her you tell I said that will
Representative Cameron Cooper
Unverified
1:43:06
do sir all right there's no questions from the committee without objection we will file this report. thank you
Tammy Wisenhunt
Unverified
1:43:11
for being here Mayor thank you continue with the third reports on on still on page nine we have the town of Jacksonport 2023. quarter treasurer deanna Dobson was invited here she contacted us today this morning actually there's been a
emergency in her family and she asked if we defer this report that objection we will without objection we will defer this report on page 10 through 11 we have the town of Norman 2322 and21. under the to the mayor property tax restricted for street funds of3,40 dollars $2854.22 and21 respectively will
not transferred to the street fund as required by code. one of the marion recorded treasure restricted funds were expended from the street fund as noted below4200 dollars 1300 dollars,7,000 dollars for 23,22 and21 respectively for general fund expenses $100 and3800 dollars and 23 and21 respectively for for water fun water and sewer fund expenditures if not as shown in note ive ofchedule se of this report when the
amount due to the street fund was considered the general fund had a deficit fund balances 36 $9 and $1680 as of December31st and December of 21 respectively. the report date the town is not established a plan to repay the street fund in noncompliance Arkansas code 277207. that's the that's what we need to discuss today based on that code there were three options to have it paid back by December31st of 22.
to pass an ordinance and designate 10% of your unrestricted general fund revenues monthly or come before this body and ask for a alternative payment plan of less than 10%. we have mayor Tammy Wisnhnt here to answer questions Yes my name is Taimmyhizenhunt. I am the mayor. I took over when our mayor was killed
Speaker 318
1:45:19
in a car wreck with her along with her sister and they would not let me they come to me and wanted me to take over when she was killed but they wouldn't let me the guy a council member no I will not
name him he was an elderly man he wanted to take over and be mayor and thought he should do it till the end of her term so I was not allowed to come in for about a year and a half so I came to every meeting and I tried to tell them what they were doing they were paying the water and payment out of general funds street funds sanitation wherever they had the money we were $26,000 in arrears in the water and sewer fund we couldn't fix something if we'd had a manhole blow up we now have $26,000 in our water sewer fund we have
built our general back to6000 we have got which is not a lot I know to compared to some of the towns that have been up here but I'm population less than500. We have4,000 in our street and 14,000 in our sanitation. and everything we have is broke down and I mean about the time I get ready to pay something back tractor battery blows up and burns our tractor while it's sitting parked hadn't even been used so I do know that we did use some money out of street last year to help us purchase but we split it because we use
that tractor for water and sewer we use it to clean out our ditches on our streets because that's about all we can do in our little town. we apply for grants to get our city streets fixed and we have just about every one of them fixed all the money is there I have a little clerk that does all the bookkeeping she works two other jobs I have been on her about making sure that she gets all of her transfers made and that she double checks them I am staying on top of her more my water and sewer operator would have been here she had knee surgery come up unexpected she just had
it yesterday Monday Monday sorry my little girl she's working and I just found out that one of my workers passed out due to heat so while I've been up here so and has had to go to the hospital we are a small town the money's all there yes we may have Mistakenly took money out of accounts And I was a bookkeeper back in the day and I did this but I'm not the bookkeeper now I'm the mayor so I will take all the blame and it needs to fall on me and I will as soon as we can make enough money in the general fund and sanitation and the
water and sewer to where we can pay it back we will we have our water and sewer fund flesh because of605 and we have to maintain our bond and our debt reserve and so we have payments coming out of that we're so ha to the gill from previous years that we can't get a loan or get any help from anything unless it's a nonmatching grant because we don't have money to match. and also apers and benownst to me and before I come on I think we owe about $125,000 to apper because some
mayor and I haven't figured out which one quit paying it and so we had somebody retire and so all the money that my little employees put in now and we have to hold out goes to pay that former employee and I've been told it's irrevocable. I don't know why a council would have voted in something that's irrevocable for a little small town not knowing what might be here in 1520 years but we're doing the best we can but I will pay the money back to all those accounts as soon as we can get the other accounts flesh we don't hardly pay anything out of general now but it's built back up to6,000
dollars we don't get a lot of turnback money we don't have a lot of business in our town we have a DG my family business and a little store and that's pretty much it us and we bring in a little water and sewer revenue and we have a little bit on sanitation and that's all we have in that little town besides what little turnbacks we get. And I took the job not because I come out of retirement I haven't retired. I took the job because I was the only one that had ever been involved in it that was still alive that would take the job that lived in city limits
and I will go back and if we can do 10% we'll do 10% to try to pay back all the monies that had been taken
Speaker 320
1:49:17
out of but they have been used to help
Representative Cameron Cooper
Unverified
1:49:23
keep everything else running. because that's all we have thank you mayors any questions from
Representative Lane Jean
Unverified
1:49:30
the committee? Representative Jean Thank Mr chairman mayor what are y'all totally owe the street fund Well I mean you have it from
Speaker 323
1:49:39
the paper that I have I would have to
Speaker 324
1:49:43
add these three he just gave3 amounts answer $22491 out of two or three different accounts water in general
Speaker 218
1:49:49
just OK. can you pay 10% a year back or we can pay what we
Representative Lane Jean
Unverified
1:49:55
can pay we're not funding everything
Speaker 318
1:49:58
we can fund for605 I mean we're doing we're just trying to keep our question
Representative Lane Jean
Unverified
1:50:03
is can you if you if you can pay 10% you'll know better than anybody else it
needs to be 10% but we've done lesser amount for people and I I think you're trying to do the right thing you know if it's if it's th000 dollars or whatever if there's a mo you tell us what you can do but it does need to be reimbursed but but but but but you know to say we we're going to try to do 10% and you can't do it that's that's kind of defeating the purpose but if you think you can do 10%
Speaker 331
1:50:44
10% would be494 dollars a month now we're not going to be able to
Speaker 318
1:50:51
do 10% I can tell you that it took us forever to get the accounts built back up to what they were because when I come into office they were broke and I will point out that the auditors have pointed out to me when they were there and they told me I might be called up here and they prepared me they did say that every year we do look a little bit better I mean we are trying our best to get everything flushed to support itself because that's our goal but it doesn't always work that way in a small town where you have
me a water city water operator I have a council and one of those has just got divorced and moved out of town so I got to appoint another person if I can find somebody I only have3 right now so I've got to find two more to a point and my recorder treasure evidently went to Texas to help her daughter and is not coming back. I was just informed two weeks ago so now I got to appoint one of them to fill her term and then run and it you just we can't pay enough money to entice
Representative Lane Jean
Unverified
1:51:40
anybody so you cannot do the4 can you do 200 a month
Speaker 320
1:51:46
we could probably do 200 a month we'll make it work she
Speaker 335
1:51:50
just agreed to it do you want me to start with
Speaker 318
1:51:55
any certain account that owes the street fund or the one that's most flush. does it matter? do you
Speaker 327
1:52:00
want each one to pay 200 just maybe could rotate it we do Since it's would you would you would you make make your motion
Representative Lane Jean
Unverified
1:52:18
You you you feel pretty confident 200 a month you can pay back to the street and water fun
Speaker 318
1:52:25
let me ask you this can I are you just talking about out of general
Representative Lane Jean
Unverified
1:52:33
out of the general out of the general
Speaker 318
1:52:35
because that's where the money went into I do 100 to each account or do I have to do 200 each account every month
Speaker 46
1:52:41
I I probably can't do that's it's it's all done it's all due to the street fund there's
Speaker 7
1:52:50
438003900 of it due from the water fund and the rest of it's due from the street fund so if you started with the street the general fund and paid
Tammy Wisenhunt
Unverified
1:52:55
it down and then start with the water fund or vice versa as long as more flesh in the water phone right now it's gonna break my
Speaker 318
1:53:00
water operator's heart but she's on pain pills right now with her knees so I'll break it to her gently tonight but we can do it $200 a month from the water fund and get that one paid and then I'll start on the general. sounds like a plan to me I'll make a motion. right we have a motion in a second any discussion on that motion
Representative Cameron Cooper
Unverified
1:53:24
one understand what they're voting on sorry sorry city of town of Norman will pay $200 a month back to the street fund that is the motion all in favor say aye all opposed that motion carries we also get you to file that report if there's no objection right any more questions from the
committee if not we're going to file this report with no objection rightport is filed
Tammy Wisenhunt
Unverified
1:53:54
continuing on page 11 we have the town of Weldon 2023. this one was deferred from the previous meeting as well for recorder treasurer Beverlyuloley to appear she called and said she had a conflict this this month they did provide me with about 100 pages of journals that they indicated had been corrected without doing a midyear engagement there was no way for me to to verify that not saying they're not corrected not
saying they are they have contacted the municipal league the municipal league has been in in contact with them to assist them staff has no opinion whether we file or the fur that's we'll go with the will of the committee what's the will of the committee on this one was a ladyman
Speaker 258
1:54:56
most of the you can do that yes right
Representative Cameron Cooper
Unverified
1:55:10
this report. have a second any discussion all in favor all opposed report is filed continuing
Tammy Wisenhunt
Unverified
1:55:18
on page 11 we have a private water and sewer report
grey rock water user association this one was deferred because we lacked a response we received a response earlier this weektaff recommends we file this report any
Representative Cameron Cooper
Unverified
1:55:36
questions on this report Without objection we will file this report have another private CPA report for for the
Tammy Wisenhunt
Unverified
1:55:44
outside kingston rule water association that was also deferred because we lacked a response which they have contacted us and assured us they were going to send us a response but we never received
it. Staff recommends we defer this report till we see that response.
Speaker 188
1:56:01
any questions on this report without objection we will
Tammy Wisenhunt
Unverified
1:56:05
defer it we have three reports starting on page 12 that were certified to the bond board and referred to the prosecuting attorney and the attorney general's office first being the city of magnolia 2023. under the police chief in March of 24, the city discovered that employee responsible for collecting bond and fine payments at the city's police department had altered and
forged items relating to courtor community service hours. The employee Evelyn Miller was terminated and on August 1st2024 she pled guilty to abuse of office and forgery and was sentenced to60 months probation this as I said this report was been certified of the bond board referred to the prosecuting attorney and the attorney general there are no questions this as I said this report was been certified of the bond board referred to the prosecuting attorney and the attorney general
Speaker 188
1:56:47
there are no questions no committee staff recommends we file this
Speaker 348
1:56:52
report Representative Jaan this is the staff thank you Mr Chairman how much money was was this
Tammy Wisenhunt
Unverified
1:57:00
was missing or wasn't actually money they were sentenced to community service and she was forging a record so they didn't have to have to have to do the community service
Representative Lane Jean
Unverified
1:57:13
is my understanding the the fine or or community service work they didn't pay the fine so they did they did they didn'tg lost money on this because they wouldn't
the work done for or the fine paid yes do we know how much the the fine calculate it
Speaker 350
1:57:31
because it was hours so we don't to equate it to certain services
Representative Lane Jean
Unverified
1:57:36
I don't know what the original fines were certain employee was just 60 months probation so they had no
reimbursement to not that we're aware of all right thank you any more questions on
Representative Cameron Cooper
Unverified
1:57:48
this report without objection we will file it continuing with
Tammy Wisenhunt
Unverified
1:57:57
reports certified to the bond board and referred to the prosecuting attorney and the attorney
general's office we have the city of sulfur Springs2322 and21. under the mayor the city discovered and we verified unauthorized purchases made during the period June 21st through January23. by the employee appointed as recorder treasurer in January of 19. The purchase purchases totaled731 dollars which included internet equipment and monthly online subscriptions. The employer resigned on April20th to 22 and as of report
date the city had has recovered a full amount through repayment from the employee and refund from the vendor continuing under the mayor the city paid $821 to the mayor's spouse for furniture and supplies without an authorizing ordinance in apparent conflict with Arkansas code bothth of these that finding was also referred to the pa and As. without question from the committee staff recommends we file this report any questions from the committee
Speaker 188
1:59:06
without objection we will file this report 15 still was certified as the
Tammy Wisenhunt
Unverified
1:59:17
bond board and referred to the prosecuting attorney and attorney general's office we have Green County 2023. on the sheriff termination of employee on deposited funds totaling $200 was located by county officials doing an interview with law enforcement the employee who served as finance director acknowledged she was custodian
of these funds and placed3,200 dollars in her desk drawer to replace funds that she had previously taken. Our review of court receipts for the period January1st of 23 through June30th of 24 veal an additional $279 that was not deposited due to the difficulties downloading data from the court software we were unable to determine if additional funds were unaccounted for as a report date this matter is still under investigation no questions from the committee staff recommends we file this
Representative Cameron Cooper
Unverified
2:00:07
report as it has been certified as the bond board PA and AG's office. Any questions from the
Speaker 188
2:00:18
committee? without objection we'll file this report we have 15 reports referred
Tammy Wisenhunt
Unverified
2:00:23
to the prosecuting attorney in AD's office starting on page 1f we have a investigative report for the Boonevilleogan County senioritizenenter Review of selected financial records for January122 through July31 of24 we have staff member
Micchelee Atley here to present this
Representative Nicole Clowney
Unverified
2:00:42
report this report is issued in a response to requests for legislative audit to review selective financial records of the Boonvilleogan County senioritizenenter the fifth judicial district prosecuting attorney requested our assistance after receiving allegations that center funds were misappropriated. The center is operated by Boonville Logan County senior citizens incorporated a nonprofit corporation which provides meals
socialization recreation, transportation and other services qualifying residents the nonprofit is governed by a sevenmember board of directors and additional oversight is provided by the area agency on agging for western Arkansas. This review was conducted primarily for the period January 1 of 2022 through July31st of 2024. Our staff examined relevant financial records including bank statements invoices, monthly financial reports and other documentation.
Funding consists primarily of donations collected for meals provided by the center as well as federal and state grants received from area agency on aging. The center employs a director who is responsible for overseeing daily operations depositing and dispersing center funds and preparing monthly financial reports that the individual who served as center director during the review period resigned on July3rd of 2024 after area agency of aging officials discovered improper spending and
inaccurate financial reports and questioned the center director about the disbursements our review of credit card charge charges and other selected disbursements for the period January first through 2021 through July31st of 2024 revealed improper disbursements totaling41,348 dollars of those33,383 are in payments to various vendors without adequate documentation therefore the validity of these disbursements cannot be determined.7861
dollars for personal expenses including groceries, household goods toys gifts clothing meals and pet supplies. Also the business purpose for 437 in additional questionable expenses could not be determined or confirmed by our staff based on available documentation. However, according to area agency of agging officials these purchases do not appear to be for center use. During an interview with Arkansas state police and legislative audit staff on
January3rd of this year, Kaylee Bonham who served as center director during the review period acknowledged that she used center the center debit and credit card for personal purchases. as previously mentioned the director resigned on July3rd after area agency officials discovered improprieties excuse me about to lose my voice we also compared cash deposits made during the center director's tenure with cash
deposits made after her resignation due to documentation being unavailable we could not determine the amount of donations collected or the number of meals served during the director's tenure however our analysis revealed average cash deposits increased from457 dollars per month during the period under review to $1835 a month after the director's resignation. the significant increase could indicate that additional funds were not deposited
the center director prepared monthly financial reports that were provided to board members based on our review of these reports it appears that incomplete financial information was presented to the board in many cases the reported expenses did not include the credit card charges and other disbursements. A deficiency in internal control was revealed that allowed these misisappropriations to happen Staff recommends that financial duties be segregated to the extent possible bank statements and credit card statements be
reviewed monthly adequate documentation be maintained funds collected be counted by two individuals and receipts or other documentation being maintained accurate monthly financial reports be presented to the board and management exercise proper physical oversight. the board the board of directors in the area agency on aging have been working with the new director for the senior senior center to ensure fiscal, physical and social needs of the senior center and those we serve are fully met
we commend the area agency of aging staff for their efforts and support during this experience that was their response to these audit findings This report was forwarded to the fifth judicial district prosecuting attorney and the attorney general the prosecuting attorney charged Bonum with theft of property she has pled not guilty and a trial is scheduled for later this year. committee have any questions on this report
Representative Cameron Cooper
Unverified
2:05:48
yes without objection we will file this report. we've
Tammy Wisenhunt
Unverified
2:05:54
already covered number 16 so we'll move to number 17 on the list on page 22 continuing under referred to the prosecuting attorney and attorney general's office with the city of Arkadelphia 2023. under the treasurer's office ivech checks totaling $102,000 were altered and cashed from the city's general fund and airport fund bank accounts between February 15 of23 and
July31st of 23. the bank and city personnel discovered the altered checks and $8,400,400 was recovered from the bank. The city discovered almost $18,000 in alter checks during a review of the bank statements. However, the review occurred outside the bank's dispute period and the city was unable to recover these funds this finding has been reported to the prosecuting attorney and they AG's office without questions from the committee we recommend we file this report any questions from the committee
without objection we'll file this report pages 22 through 26 we have the city of Augusta 2023. this is a private report prepared by CPA. on page 24 during the course of the audit it was discovered that the city's payroll expenditures surpassed the allocated budget. Additionally inadequate documentation was
found to substantiate the reasons for the payroll increases indicating deficiencies in payroll management controls there's a standing authorization for a3% raise for all employees each year. However, the increase was not accounted for with within the city budget in addition some employees received a raise of more than3%. This is a repeat finding. on page 25 during the course of the audit it was noted that the city wrote off and made adjustments to utility
receivables without adequate documentation to support these actions.dditionally it was observed the city council has not established formal policies and procedures governing the process of writing off utility receivables this is a repeat finding During the audit it was observed that there is a deficiency in supporting documentation for credit card transactions specifically several receipts like signatures and failed to provide a clear business purpose to the expense incurred
During the audit it was reserve observed that the city dispersed checks to both employees and contractors without maintaining adequate documentation for expenseskansas code states a disbursement from municipal funds shall be shall have adequate documentation for the disbursement there was a staff note
Speaker 131
2:08:39
included in this report going concern the city has encouraged significant operating losses and negative
Tammy Wisenhunt
Unverified
2:08:45
cash flows that have resulted in substantial doubt about the city's ability to continue as a
going concern for the year following the issue date of the financial statements excessive spending along with negative population growth has also contributed to the current financial condition Management's working on preparing a workable budget an annual budget if this is achieved we'll provide significant excess funds all these findings have been reported to the prosecuting attorney and attorney general's office there's not any questions from staff staff recommends we file this report
Speaker 131
2:09:22
the committee have any questions without objection
Tammy Wisenhunt
Unverified
2:09:35
we will file this report page 27 the city of Huntsville 2023 under the mayor the city paid $8500 to a planning commission member for a vehicle and $1640 to a council member for various services although the council passed the ordinance in May of 2011 allowing the city to conduct business with officials
and employees up to5,000 dollars. The ordinance did not specify the extent of the authority as required of Arkansas code this finding has been reported to the prosecuting attorney and AG's office it's not questions from the committee we recommend we file
Representative Cameron Cooper
Unverified
2:10:10
this report any questions from the committee without objection we will file this report continuing on page 27 we have
Tammy Wisenhunt
Unverified
2:10:18
Pike County 2023. under the county judge and county clerk The county donated7,500 dollars
and5,000 dollars to the Pike County archives and the greater Glenwood chambers of commerce respectively both nonprofit corporationizations without contract for services in apparent conflict with Arkansas Arkansas constitution article 12 section5. This finding has been referred to the prosecuting attorney and the attorney general's office.taff recommends we file if there are no questions any questions on this report without objection we will file it
page 28 city of Harrisburg the mayor and bookkeeper the city disbursed funds totaling over3,000 dollars for two holiday meals for employees and their families without a documentation of a business purpose and the parent conflict of the public purpose doctrine in article tel section5. This finding has been referred to the prosecuting attorney in AG's office's no questions from the committee we recommend we file any questions from the committee Representativealby have a question for
Representative Carol Dalby
Unverified
2:11:27
ta f f er somebody we get this all the time that they're buying meals for employees do we give them any education on this that you can't do that and then they response is it's understandable but we've done it all the time and I'll just tell them to make it for a public purpose I mean what do we do to educate cities and counties that you can't use taxpayer dollars to y people's dinner do we do anything we have discussions at exit conference and explain you know the public
Speaker 20
2:11:59
purpose actct public point after the fact jet are we are y'all giving that thank you we did file
Speaker 357
2:12:13
that one right did not yet any further
Representative Cameron Cooper
Unverified
2:12:16
questions on this one that objection we'll file this report pages 29 through30
Speaker 188
2:12:21
we have the town of Jericho under the mayor and police chief fines and costs
Tammy Wisenhunt
Unverified
2:12:29
revenue of over55,000 dollars exceeded30% of the town's expenditures in the preceding year by almost $28,000 in noncompliance with code revenue was generated in the traffic fence citations written by an arrest made by the town's law enforcement personnel or can you say that word action related to the enforcement of traffic offenses under the mayor and recorder treasurer althoughchedule one of this report shows a balance of
almost6,000 dollars in the general fund it was brought to our attention as of December31st23 the general fund owed significant amounts to the street fund it's shown in note6 on schedule3 when this outstanding amount was considered the general fund had a deficit of almost53,000 dollars this is a repeat finding in the last three reports underder continuing under the mayor reststricted funds of
almost59,000 dollars were not transferred to the street fund from the general fund as required by Arkansas code the town made payments of661 dollars to reduce this balance owed to the street fund on February 9 of2024, the town received approval from less slave audit excuse me from let's slave joint auditing committee to pay $100 and $200 monthly alternating amounts each month for three years and to pay300 dollars monthly after the ayear period it's a repeat finding for the previous 15
years. in addition, based on the 23 approved budget passed in January19 of2023. the mayor and a quarter treasurer were underpaid for the year by3300 dollars and a little over $2000 respectively according to the townw officials the council elected to withhold salary payments to these positions in order to to help pay back outstanding balances to the street fund. However council meeting minutes for that meeting were unavailable therefore we
were unable to verify the de the decision by the council should be noted that the minutes from the December 23 council meeting indicated the court of treasurer refused to forfeit her salary payment. Overall we were unable to determine if this arrangement to withhold salary payments comply with Arkansas code which states that the city officials salary may not be may may be decreased during the term only at the request of the official. these findings have been turned over to the prosecutor
and turn A's office staff
Speaker 188
2:15:07
recommends we file if there are no questions representativealby don't have a question
Representative Carol Dalby
Unverified
2:15:12
but Haven't we Yeah I'm
Tammy Wisenhunt
Unverified
2:15:15
sorry we missed missed a note here we have treasurer Lane Dure here to speak and mayor Ida Sumner is he available? OK just schumert OK she is unavailable sorry
Representative Justin Gonzales
Unverified
2:15:33
ma'am if you'll identify yourself for the record please I'm Elaine Duree and I'm the city clerk and did you have a statement for us just wanted to kind of clarify some of the the statements that were read go ahead and thought there were some some findings of myself I think there was in one of my journals I had I had it under the wrong title I think think that's what OK and I'm I'm here without my
paper because I didn't receive I didn't even receive a letter stating that I needed to be here I think Jamie Franklin emailed me and I got it by email and that's the only reason why I knew out to come so there's something happening with the male so if there's a if in future can you all email me because I check my email all the
Speaker 359
2:16:24
time so I I guess the postal service isn't as reliable as it used to be but any any in any event I I
Representative Justin Gonzales
Unverified
2:16:35
really did not know I was scheduled to be here today until last week when I got the email from uhjane I think it was Jamie Franklin OK so back to I think to clarify some of the findings against us we are still paying the revenue back as much as we can my original thought processes for that we would get a grant that would pay
the the city police their salaries and then that money is transferred to the the monies that that that would go for their salaries we would pay that to back to the street fund we did not receive the grant so I'm still in the process of finding a a grant that would do that for us for the town in order to pay that back 2 we are currently paying
back some equipment from our fire department it was ordered through the city but it was stolen and so we were we're still having to pay that back so we have another year to pay that off and it's like 200 a month so we were going to pay take the $200 that we're paying that back and then pay it towards the street fund as well And I think you made another statement regarding the salaries that we were underpaid for that year
We I had an and I was the one that refused to do that and I did it because I'm real se for being a good steward. and the city council agreed to pay a person to mow and take care of city property and the sewage our our sewer pumps and the police chief was doing that for free
And I had some issues with us going from free to paying someone So and then they were like well let's just hold our salaries I'm like well why would I wanna hold my salaries and we're paying someone that was doing something for free so that was just me and that was just I guess petty on my part but that's that was my thinking so but I didn't realize it was gonna be a finding I really didn't I just thought well we would be OK but since that was a finding the previous
year I think the following year in 24 we agreed to go ahead and and hold our salaries until we can we can pay off some things and things happen things happen to the city we've had equipment that failed we had sewage or some of our sewage pumps had had failed and we have to pay people to come out and fix them we have to pay for parts last year we did receive a a grant from the county and we replaced our sewer our sewers
sewerage pumps so that alleviates but yet still there's a maintenance of that and so we've been doing that so we we we know that we owe that money and we've been paying that money that's all I have thank you ma'am. do we have any
Representative Cameron Cooper
Unverified
2:20:04
questions from the committee Representativealby not of this witness but may we ask
Representative Carol Dalby
Unverified
2:20:08
Mr Kritner if he could come to the end of the table. I have a question for him
Speaker 367
2:20:24
Jackritcher arkansas municipal league proceed
Representative Carol Dalby
Unverified
2:20:28
Mrrier thank you for popping up and being willing to answer the questions the very first finding of it appears that Jericho and I think we've heard this before as a speed trap it says that in their response it says we're discussing with municipal league about what can be done about speeding and the more and be more cautious about writing tickets do you know
anything about that and then if somebody's in violation of the speed trap law can you tell us those
Speaker 367
2:21:03
procedures of what we can do I'll try to take a stab at this representative dalby I did not I was not aware until I just read the finding now who that would probably have been John Wilkerson that the mayor or whomever spoken you know spoke with at at at the league but if Ire if I remember how
that works an investigation has has to be made by the prosecuting attorney I think the local prosecuting attorney and I think the prosecuting attorney has the sole discretion whether or not to shut down the you know the city from writing tickets now the percentage was it 30 % of I think it's general
revenue not counting your your water or your I think your water and sewer is exempt but I mean I'm I'm spitballing here and appreciate
Representative Carol Dalby
Unverified
2:22:10
that could you ask Mr Wilkerson to let staff know what what's going on in that particular issue with the municipal league so that they can get that out to us you
Representative Justin Gonzales
Unverified
2:22:24
appreciate you coming to the end of the table as well a statement regarding that our
our police chief they only write tickets from my understanding of if a car is going over 10 MPH going over 10 MPH above the speed limit the speed limit is45 there are two it's not a speed trap there are two signs to let you know that a person know that they are coming into the town we have a and here's the reason why when you come into the city of
Jericho we have elderly people on this left side the mailboxes are on the right we have elderly people that cross and this is a major highway this is highway77 and there is a doubles curve in in the city of Jericho a doubles curve we have citizens who live on the left side and they are elderly there's a one lady who who walks on a walker and they go across the street to get their mail we also have two citizens who are
they're special they're special needs people and one of them walks up and down the highway on the side that's just how he that's what he does every every day that's just how he he he lives so are our offices do not they do not write tickets unless it is over 10 MPH and that that has been investigated unless it's over 10 miles over45 so they have to be going over455 or over
in order to get a ticket so it it it really is not a speed trap and then there are also two signs that let you know that you're coming into Jericho to slow your speed there there is one there's a sign before you get there then there's a signed sign there's two signs before you get there then the sign in town then there's another sign in town and then the doubles curve you're really supposed to go35. so and I understand your your questioning regarding that but
that's the reason why and then sometimes when they pull someone over there are a lot of warrants that are on that person there are a lot of other things that that they that they come through a lot of times they come through that town because they don't want to hit the interstate So a lot of times if if lieutenant and and police chief pulled them over what have you and a lot of times they find that they're more there's a whole lot more that meets the eye than them just speeding throughpresentativelaman
Representative Jack Ladyman
Unverified
2:25:04
yeah Mr Chairman I had a comment thank you Mr Chairman. ma'am I understand what you're saying but the speed trap law helped Mr Critcher out here a little bit Jack if you don't mind had a little experience with this but there's a formula I was mayor of a town that was accused of speed trap so if you have if you're speeding tickets are more than30% of your city's budget less your water and sewer. Now
Jack I think we passed the law we tried to where you could include water and sewer if a city population was under a certain amount because a big portion of the budget I think that's a new law somebody else help me out here but but but it's pure law and ma'am I understand what you're saying is if you've got a major street coming through your city and people are speeding but this is a pure formula and if someone objects to the attorney general they checked that formula if
you're over30% you're a speed trap, OK? no matter what And I know that's a problem for some cities you know you can do other things one of the things I did is parked a police car on each end of town and put a mannequin in one of them to slow people down but you you've got to do other things there's really not anything you can do that is the law So I just want to give you that as clarification that you can talk to the attorney general's office and see if there's
something you work out there but that's the law and it doesn't matter if they're going 1520 mile an hour over
once you get that30% you're a speed
Speaker 362
2:26:53
trap. Wow Representative ye I'm just
Representative Johnny Rye
Unverified
2:26:55
ma'am you know I can see exactly whatpresentative Laderman is saying but you know I can see your point too because that's a danger to some folks there in that town it's a
little old bitty town it is yeah I mean it's over there right next to the Mississippi River yes ma'am but let
me ask you this if you cut down the price of the tickets or something could that
Representative Justin Gonzales
Unverified
2:27:20
help you a little bit'm not sure can I'll I'll ask Chief about that I think there's like a standard I don't know if there's a standard amount that they charge I really don't know the ins and outs of that'll
Speaker 174
2:27:32
be honest with you I don't OK ma'am I have found out
Representative Johnny Rye
Unverified
2:27:36
that you can't change the price of those ticketss it's mandated is that
Speaker 61
2:27:41
right Representative Jack warnings ir would you like to take a
Speaker 302
2:27:51
on come you can come does he have some
Speaker 359
2:27:54
information for us because he spoke with police chief and and he's also military so please
Speaker 383
2:27:59
identify yourself for the record robert Duree I'm just coming back into town and come back from the military just want to get get the lay of the land and figure things out to help out I spoke with Chief Hill and
did say that it was investigated and with the formula and everything and it was over so they started issuing what it called public service with the not necessarily riding a ticket but a warning warning and then issuing community service that we talk they started issuing community service and also it's just that area like like she said that that that place is just people are just speeding through
there but Chief Hill did mention like correcting that with what the community service and writing more warnings in that area thank you sirpresentativedyman is that a state highway that goes through there yes started
Representative Jack Ladyman
Unverified
2:29:00
say you put a speed bump out there but you can't do that on a state highway that's that's highway but you have a very good pointive warning ticket and do something other than monetary that that might help you sir
Representative Cameron Cooper
Unverified
2:29:18
this committee have any further questions talked to him thanks if not then without objection we will file this report thank you both for being here today. appreciate it this up with permission of
Speaker 188
2:29:32
the of the chair I'd like to skip around a little bit to see if we can accommodate some of our guests it's getting kind of late in the hour is there someone here from the city of Fouk? we're gonna skip over to page uh30
Tammy Wisenhunt
Unverified
2:29:52
this is a finding with I mean a report with a repeat finding of the city of 2023 under the mayor annual auditor annual audit or agreed upon procedures report has not been completed for the city of water and sewer system since 2014 it's required Arkansas code the city on an engagement letter as of december62023 for 22,21 and20. However, the city has not received the report as of the report date. The mayor has
indicated that they do not plan to honor this engagement letter similar findings been issued in the previous ive reports also one of the mayor of the street fund disbursements exceeded budget appropriation by40,000 dollars in noncompliance with code this is a re finding we have mayor Terry Purvis here to answer questions Mary if you'll identify yourself for the
Representative Cameron Cooper
Unverified
2:30:40
record then if you have a statement for us you can go ahead
with that my name is Terry Purvis. I'm mayor city of
Terry Purvis
Unverified
2:30:54
under the audit findings we were originally going to do the audits and get caught up with the auditing firm in magnolia we agreed on a price which mo s t unsustainable $14,000 a year but that's and my research and calling it calling and calling that's
seems to be the going price Well anyway when we got ready to transfer records and they first we were gonna get in you know we got a center point accounting firm software and RBS in our billing system the the auditor said you know we're going to look at these records first before we could give you a prices we we agreed on 14,000 he said no that's not the
way it works we're gonna have to look and look at the records before we can agree on apri well I bulked at that I'm not gonna sign a blank check with somebody we agree on a price we'll go for it but it got where he you know he wouldn't give me a solid price he won't give me a grand prize and just he said we're gonna have to look at this first and a boat
we kept researching and researching finally we found and I have here documents that the audits are being done from inmbrch and Scoggins LLP and Elorrado Arkansas for5,000 dollars a year we're jumping up and down we're saving at least $9000 a year over what we found before
but we first agreed upon but then we didn't know what kind of price was going to be after that because they never would agree to a prize before we gave them the documents I have view my possession can give to this committee the greed upon everything that we're going to be doing. I got a letter of engagement as far as he's going to do it year by year starting with 21 until we get caught up
up to date and but she's got ri t in this engagement letter we he called in I think the date was the twenty7th or twentyeth of June. my administrative assistant handled it where he wanted to look at the financials that we have you know in our accounting firm pro
program and our billing system program which we've already transferred to him before he would give us a list or if he needed any other documents to complete the audit so that's where we're at right now and we're gonna work hard to get caught up we're jumping up and down that we finally found somebody reasonable to sustainable and we're going to get it done thank you mayor. do we have any any questions for the mayor? Can
Speaker 332
2:34:39
I can a statement mayor if if you were paying attention earlier in this meeting there was a motion made and approved
Speaker 7
2:34:48
that your turn back will start being withheld Monday. just want to be aware of that because you're on the list you're being 2 do you're on the list that you're30 months in arrear so just make sure you understood that when I get these sent in I'll be yes when you get it when you get
Tammy Wisenhunt
Unverified
2:35:10
22 and23 in or 22 in you will they will then if you do it in t2 months they'll release your turn back back to you if it's more than that you will lose it permanently and then when you
Speaker 124
2:35:22
get it back up to speed they'll start again if
Speaker 389
2:35:24
it's after 12 months sir so that means I get 22 in first right if you can convince the CPA to do
Speaker 390
2:35:33
that but that's to push them do 2122 and well just
Speaker 389
2:35:36
as quick as possible that that'd be the best plan yes sir
Representative Jack Ladyman
Unverified
2:35:42
any questions from the committee yes sir sir you do have someone contracted to do your audit is that correct sir you do is it so can you
Speaker 393
2:35:54
afford the price that they're we've we've been searching and gentlemen
Terry Purvis
Unverified
2:35:59
please if I may And ma'am my favorite is sitting over here that's all right mayor we've known each other a
Representative Carol Dalby
Unverified
2:36:08
long time ma'am thank you but anyway
Terry Purvis
Unverified
2:36:17
you know a small we're 826 population very proud people we are you want to know what a conservative looking in the dictionary you'll see my preacher picture for reference, OK? when it comes to the cash well the question I want
Representative Jack Ladyman
Unverified
2:36:32
to ask you I'm sorry go ahead when you if you get an auditor to come in if your books are good then he's gonna charge you a lot less money you know if your books are your
Speaker 393
2:36:42
books in good order or yeah we don't we don't fear anything it's just
No I meanlaire where they just have to
Representative Jack Ladyman
Unverified
2:36:52
look at the papers what I'm getting at is you can save money if you even if you have a CPA that organizes your papers so that the auditor doesn't have to do a lot of prework I'm just making a suggestion here but again I used to be a mayor and I've been some in some of these issues but if your papers are good then that auditor is gonna charge you a lot less money so sometimes it's better to get an accountant to
help you organize before the auditor comes in they'll give you a lower
Terry Purvis
Unverified
2:37:23
price just thank you it's just that you know we we have called and called and called it's not like we're we're putting off these audits not like we fear them. it's that we welcome them but you know for we've we've been getting pricing where $1,418,000 I got300 customers that is unsustainable. it's unsustainable. I mean it you know we could sit here and raise water bills raise water bills, raise water bills but
we've been we've finally found a guy you know for5000 that's reasonable we're jumping all over it but here's another thing and please and I make no offense it's really hard for a small town especially you know I'm I'm down in with some people call the armpit of Arkansas I mean I'm18 miles from Louisiana and 15 miles from Texas I'm way down in the corner but and and I don't mean it that because I love where I live
ma'am you know that I wish there was some more resources out there that would they the could help us find an auditor a've asked the legislative auditors in the past that are by respect the fact that they cannot recommend I'm just saying give me a list of the people who are doing it have you talked
Speaker 397
2:38:47
to the municipal league they don't recommend neither.
Terry Purvis
Unverified
2:38:54
they won't recommend any auditors I mean do you have a list of of auditors that's yeah I mean it would And I'm not saying recommend one just tell me who's doing them the ones inexana dropping like flies they don't nobodydy does it you think a town that big40,000 we'd have one but there's none. of course we only have three cities in Miller County. but anyway it would help us
because it's I mean you're out there in the blind trying to find somebody and unfortunately without the you know small resources we only have so many people working for us gum it but and anyway just as a a suggestion if you could just provide a list of people who are doing them we'll go from
Speaker 393
2:39:43
there if if thatir do you do y'all have a mayor's group down there
Representative Jack Ladyman
Unverified
2:39:48
that meets or anything other other mayors you might you might talk to other towns they might have somebody have you done that
Terry Purvis
Unverified
2:39:59
I've called a few mayors down where we're at yes yeah and some of them are paying the 1418 1000 I don't know how they're doing it but anyway I appreciate you listening to me. Any further questions for the mayor? Mayor
Representative Cameron Cooper
Unverified
2:40:16
thank you for being here appreciate the work that you're doing on this thank you but there's no objection we will file this report
Terry Purvis
Unverified
2:40:25
thank you mayor before I leave may I say something that's kind of
that concerning this if you just give me a second Mr. Langine I hated the term limits is getting you very much you have represented us in fact with dignity And man we appreciate it and I just want to tell you before you leave thank you sir appreciate everything you've done. I appreciate your
your you're voting and I'm not the only one everybody in fact we we truly thank you for what you've
Speaker 333
2:41:09
done sir. al people down there I'm not I'm not gonna miss it but I'm with you that made
Speaker 389
2:41:22
it lane thank you very much committee we're going to move on to
Representative Cameron Cooper
Unverified
2:41:25
the city of Marvel. thought is anybody here from City Marvel
Speaker 131
2:41:46
page 42 page42 city of marvel a report with a repeat finding
Tammy Wisenhunt
Unverified
2:41:52
under the mayor street fund expenditures exceeded budget appropriations for 2022 by $26,000 noncompliance with code. Also general fund expenditures exceeded budget appropriations
in 21 by 228,000 dollars. This is a repeat finding under the district court clerk the balls remaining in the bank account was not properly identified with receipt numbers from from cases not yet adjudicated and the payments made on all unpaid individual time accounts as required by code this is a repeat finding as well we
Speaker 405
2:42:27
have mayor Shelton Lee guest here to ask questions yes Mayor Shelton
Speaker 406
2:42:31
Lee Guest Jnior as far as the receipts go for
the bonds and bonds that has been rectified in that from this moment forward will be done correctly the other thing I think was 833 I can't remember if you mentioned that or not but it was just operator error and it was input incorrectly into the the system so that has been corrected the street fund that was an oversight on my part that was that was I was still my feet were still wet trying to figure out this mayor thing and understanding budgets for a municipality is a little bit
different than than budgets elsewhere so we did a revised budget but it was not adequate enough to be in compliance so that's on me and we'll be from from here on it will be rectified. Moving on to the 228,000 I I don't know what the hiccup was my understanding that the the auditor that we had did not finish the audit was no longer with us or something I don't
know and so we were trying to figure out what the conflict was with the 228,000 because I had a revised ordinance and I should have been in compliance so I'm thinking that they did not take into account my revised budget and they subtract or did the took the financial report and compared it to my original balance my original budget which was $228,000 off my revised budget was actually 23,000
in the black compared to the final numbers and what my revised budget was so I have a copy of of that and I gave it to the auditor that came and did the exit but I don't know if that got put into things or what committee do you have any questions for the mayor? Mayor we appreciate you being
Representative Cameron Cooper
Unverified
2:44:43
here and giving us this report and explaining these
Speaker 405
2:44:46
findings appreciate your work on this thank you there's no I don't want to take anybody else's time but but no without objection we will file this report you
Tammy Wisenhunt
Unverified
2:44:57
mayor thank you Back on page 30 under referred to prosecuting attorney in AD's office with the city of Mcree 2023 under the quarter treasure the payroll preparer overpaid herself $1500 performing duties as recorder treasurer and his
water clerk. It appeared the overpayment resulted from from inconsistencies in the way that she was paid in a calculation error regarding hourly rate of pay. Subsequently the council accepted the repayment plan and recouped the overpayment. finding has been referred to the prosecuting attorney in AD's office if there are no questions from the committee we recommend we file this report. Any questions from the committee that objection we'll file this report. continuing on page 31 for referred to theA and AG city
of Monticello 2023 under the mayor the city paid utilities for and housed the nonprofit organization unrelated to the city Without a contract identifying services provided this agreement appears to be in conflict with the public purpose doctrine in article t2 section5. This finding has been referred to the prosecuting attorney in the AG's office without questioning the staff we recommend we file this report questions from the committee that objection
Speaker 188
2:46:10
we'll file this report page32 through33 we have the
Tammy Wisenhunt
Unverified
2:46:19
town of Pleasant Plains 2023 and2022 under the mayor and police chief in January of 23, the city council passed the ordinance to establish a police department that would become active in March of 23. We examined 275 of the500 citations printed and logged by the department from April6th of 23 through July2nd of 24 and noted the following 99 citations were not traced to the court docket in noncompliance with code. said me one citation totaling
$11,100 in fines were paid at city hall and the fines were deposited in the general fund without charges being properly adjudicated. uniform filing fees and court calls were not charged or collected in noncompliance with code. 28 citations were not collected or adjudicated. One defendant paid630 dollars to the district court and subsequently paid $150 at town hall for the same citation. One defendant paid the same citation twice at city hall. we noted the following additional issues in noncompliance with codem
completed citation books were not filed with court clerk. All copies were not maintained for for two voided citations and all copies of one citation collected were removed from the citation book. for 250 of the citation's inventori above Citation numbers on the printer certificate did not agree with the citation numbers on the log or the citation book review. under the mayor recorder treasure the recorder treasure was paid $800 for attending council meetings $100 per
meeting in 23 without proper authorization. This amount included3 payments in August of 23 without however meetingeting minutes indicated only one
Speaker 316
2:48:01
council meeting was held these findings have been referred to the prosecution and turning the AG's
Tammy Wisenhunt
Unverified
2:48:11
office questions from the committee we recommend we file this report any questions from the committee without objection we'll file this report
pages34 through35 continuing was referred to theA and the AG's office of the city oftawnytown 24 and23 under the mayor on august4th of 22 the city entered into a contract with a vendor for IT support services in addition to monthly payments to the vendor between September 24, January25 the city paid almost $28,000 to an individual who was apparently employed by the vendor for equivalent IT support services. cityity also paid the individual
$15,600 in advance for equipment the city did not receive On March 14th of 24, the city invoiced the individual for a portion of the undelivered equipment and as a report date city has not received the equipment or been reimbursed On July11th to 23, the city dispersed over $15,000 in legal fees apparently on behalf of a citizens group opposing the expansion of local land landfill a member of the citizens group reimbursed the city in full on
November 8th of 24. the city disbursed funds totaling3,500 dollars to the University of Arkansas Foundation without a contract for services in the arent conflict of Article 12 section5. the city paid6800 dollars3400 dollars each year to an employee for cleaning services without an authorizing ordinance an apparent conflict with Arkansas code these findings have been referred to the prosecuting attorney's office
we recommend we file this report unless
Representative Cameron Cooper
Unverified
2:50:05
this questions from the committee any questions from the committee
Tammy Wisenhunt
Unverified
2:50:15
that objection we'll file this report on page 35 the town ofaldenburg 2024 under the mayor and police chief On June 25th to 24 the town council approved a sale of a truck originally financed in 22 for $28,000 to the police chief for $14,000 the balance of the loan the council agreed to continue
paying the insurance on the vehicle and to allow the police chief to use the vehicle for town and personal use although the town had other police vehicles available for use. The chief paid $9000 to the town during 24 which included633 dollars in interest with the balance of5800 dollars due in 25 as of april 16th of 25 the chief had paid $2400 leaving3400 dollars due to the town. this arrangement is apparent conflict of the public purpose doctrine
In Arkansas constitution article t2 section5. in addition the sale of the vehicle didn't was not in compliance with Arkansas code. this finding has been referred to the prosecuting attorney and the attorney general's office no questions from the committee recommend we file this report
Speaker 131
2:51:25
without objection we'll file this report continuing on page 35 Union County 2023 under the circuit
Tammy Wisenhunt
Unverified
2:51:30
clerk June of 23 3 circuit circuit court orders authorized the circuit clerk who was appointed as receiver by
law to issue payments to an individual for for interest in oil and gas royalties how the clerk the clerk's payment included the interest of all defendants to in the case rather than the individual only resulting in the overpayment of approximately666,000 dollars. this findings been returned referred to the prosecuting attorney in the AG's office. questions to the committee will file this report any questions on
Representative Cameron Cooper
Unverified
2:52:00
this report? objection we'll file it we get some water for this one
Speaker 131
2:52:13
continuing on pages36 through37anuren County Water association this is
Tammy Wisenhunt
Unverified
2:52:17
a private report prepared by CPA I was unable to to locate receipts for cash payments so I was unable to agree the cash check composition deposits with receipt information vacation policy states that an employee may only carry over40 hours of unusually each year. However the office manager carried over all her unused sick leave that she had paid herself
for doing the pay period as a result She carried over too much leave each year from 18 to22. The vacation policy states that employee earned leave monthly after 10 days in the month. when the office manager retired in October of23, sheparded herself for all her calculated unusually plus the 20 days She began earning in September of 23. for the policies she could have she could only have earned 1/12 of the20 days of the monthly month of October
as a result of carrying over more than4040 are our leave per year paint unused vacation pay in excess of what was earned in October 23. she overpaid herself41.33 days for a total of7,500 dollars. I was unable to validate if the office manager was ever out of the office from 2018 through October31st of 23 based on the payments of unusual leave it appears the office manager was never out of
the office for vacation days during this period if the office manager was in fact taking the vacation time off then the overpayment would be much greater vacation days paid to the office manager totaled almost 24,000 dollars. office manager paid herself for on call pay for the pay period she paid herself for vacation instead of taking time off she also paid herself a regular paycheck each of these times she paid herself for vacation pay as a result she paid herself twice one week for on call pay
resulting in overpayment of4400 dollars. I found a schedule of employee pay rates for that was prepared in 2023 documenting the rapes. However employees got3.5% pay increase each year. I recommend it any employee pay increase to be documented in the board of minutes each year. It appears the employees got annual Christmas bonuses as well as pay increases each year. I recommend the bonuses as well as the employees pay rate be documented in the minutes in the board minutes
in s The office manager was paid35 dollars a month to attend board meetings. These payments will not included on her taxable wages these findings have been reported to the prosecuting attorney the AG's office there are no questions from committee staff recommends we file this report any questions from the committee without objection we'll file this
Representative Cameron Cooper
Unverified
2:55:07
report OK we have6 reports with repeat
Tammy Wisenhunt
Unverified
2:55:19
findings starting on page 37 the city of Harrison the recorder treasure I mean excuse me the district court clerk Sandy Wright was invited here today and she called and had a conflict today and request that we defer till
Speaker 131
2:55:31
September objection will defer this report on the city of Harrison. we've already covered Fo so we're gonna move on to the city of Joyner 2023. the quarter
Tammy Wisenhunt
Unverified
2:55:39
treasurer was invited here today and I have not heard from her so we'd recommend we defer this report objection to the furthest report
Representative Cameron Cooper
Unverified
2:55:49
on the city of Joyner. city
Tammy Wisenhunt
Unverified
2:55:52
of lakeview the mayor Daian Davis and quarter treasurer Cheryl Carroll we're invited today both called indicated they could not come we recommend we defer this report without objection we'll refer this report on the city oflakeview. When earlier today when we filed the city of Weldon 23 that's it we've all we were like a month behind them doing the 24 so they really didn't have a
chance so I would could we file that report as
Representative Cameron Cooper
Unverified
2:56:24
well under the same circumstances any questions on this objection we'll
Tammy Wisenhunt
Unverified
2:56:30
file this report we've taken care of marble on page 43 we have three reports with findings. these are private reports the Yorktown Water association incorporated Compton Water association and Hummi Water Association we have not received a responses for these three and that's why they have findings staff
recommends we defer these until what time we have a response without objection
Speaker 131
2:56:54
we'll defer these three reports on pages44 through uh62 we now have56 reports to resolved findings now that we've already
Tammy Wisenhunt
Unverified
2:57:04
filed Garland County 23 you'll take a moment to look through those and if you have any questions we'll do our best to answer them if not staff recommends we file these reports
Representative Cameron Cooper
Unverified
2:57:31
committee see anything they want to ask questions on on these reports could you just a minute longer to to look through those.
Speaker 10
2:58:08
these are all first time Yes, so they either the first time offensive or yes that'd be with good
Representative Cameron Cooper
Unverified
2:58:26
responses no repeats in there without objection we will file these reports on pages63 through68 we have 184 reports without findings staff recommends we file these findings file these reports objection we will file these
reports All right the next meeting of the legislative
joint auditing committee will be held on September 11th. Anybody any committee members have any any final things to say pp re ci ate
your work today appreciate the work of legislative audit staff we stand adjourned
Agenda
C. Update on Private Reports
D. Review of Reports (Refer to the Synopsis)
E. The next meeting of the Legislative Joint Auditing Committee will be held on September 11, 2025.
Cross, Lee, Monroe, Phillips
Greenway Water and Sewer Department
St. Francis, and Woodruff Counties
December 31, 2024
City of Smackover
S. Don Ray, CPA
December 31, 2024
Compton Water Association
EGP, CPAs
December 31, 2023
Pike County – 2023
Cynthia Bearden, CPA
City of Hughes – 2023
Leachville Water and Sewer
City of Joiner – 2023
December 31, 2024
Bergman Water System
S. Don Ray, CPA
December 31, 2024
Dyess Water and Sewer Department
Landmark, CPAs
December 31, 2024
Jacksonville Wastewater Utility
S. Don Ray, CPA
December 31, 2024
City of Tuckerman – 2024
EGP, CPAs
Little River Water Association
Whelen Springs Water System
December 31, 2024
December 31, 2022
S. Don Ray, CPA
Wood and Wood, CPAs
East Monroe Public Water Authority
Turner, Rodgers, Manning & Plyler, CPAs
December 31, 2024
England Municipal Water and Sewer Department
Berry & Associates, CPAs
December 31, 2022
United Public Water Authority
Landmark, CPAs
December 31, 2025
Kensett Water and Sewer Department
Berry & Associates, CPAs
December 31, 2024
Town of Etowah Sewer Department
Welch, Couch & Company, CPAs
December 31, 2024
Garland Water and Sewer System
S. Don Ray, CPA
December 31, 2021
Benton County Water Authority #4
Turner, Rodgers, Manning & Plyler, CPAs
December 31, 2024
Garland Water and Sewer System
Berry & Associates, CPAs
December 31, 2022
Pea Ridge Waterworks and Sewer System
Turner, Rodgers, Manning & Plyler, CPAs
December 31, 2024
Perryville Water and Sewer Department
Przybysz & Associates, CPAs
December 31, 2024
Emmet Water and Sewer System
EGP, CPAs December 31, 2023
Turner, Rodgers, Manning & Plyler, CPAs
Jacksonville Municipal Water Works East Johnson County Water Users Association, Inc. December 31, 2024 June 30, 2024 EGP, CPAs Jones and Lawton, CPAs Little Rock Water Reclamation Authority Highland Public Water Authority December 31, 2024 March 31, 2025 Forvis Mazars, CPAs Welch, Couch & Company, CPAs Malvern Water Works Keiser Water and Sewer December 31, 2024 December 31, 2024 Turner, Rodgers, Manning & Plyler, CPAs S. Don Ray, CPA City of Warren – 2023 Lake Conway Community Waste Water Utility City of Clarksville – 2023 December 31, 2024 Howard County – 2023 Arkansas Accounting City of Diaz – 2024 Nashville Rural Water Public Authority Town of Antoine – 2024, 2023
December 31, 2024
City of Ogden – 2024, 2023
Wilf & Henderson, CPAs
City of Ashdown – 2024
Redfield Water & Sewer Utility
Prosecuting Attorney
December 31, 2024
Seventh Judicial District
Bell & Company, CPAs
December 31, 2024 and 2023
Washington Water Authority
Hot Springs and Grant Counties
December 31, 2024
Town of Weldon – 2024
Berry & Associates, CPAs
Leola Water and Sewer System
Clinton Water and Sewer Department
December 31, 2024
December 31, 2024
Turner Rodgers, Manning & Plyler, CPAs
Berry & Associates, CPAs
Benton County Regional Solid Waste
Morrilton Wastewater Utility
Management District
August 31, 2023
December 31, 2022
Conner & Sartain, CPAs
Berry & Associates, CPAs
Morris Bluff Water Department
Benton County Regional Solid Waste
December 31, 2023
Management District
Jones and Lawton, CPAs
December 31, 2023
Town of Pyatt Water System
Berry & Associates, CPAs
December 31, 2023
Southwest Arkansas Regional Solid Waste
Cynthia Bearden, CPA
Management District
South Pike County Water Facilities Board
June 30, 2024
December 31, 2024
Landmark, CPAs
Banks, CPA
Elkins Water and Sewer Department
Little River County – 2023
December 31, 2023
City of Greers Ferry – 2024, 2023
Berry & Associates, CPAs
City of Swifton – 2024
Krooked Kreek Water Association
Town of Okolona – 2024, 2023
September 30, 2024
Town of Oak Grove – 2024, 2023
Landmark, CPAs
City of Austin – 2024
City of Arkadelphia – 2023
Town of Bellefonte – 2024, 2023, 2022
City of Tontitown – 2024, 2023
Faulkner County Solid Waste Management District
Benton County – 2023
December 31, 2023
Union County – 2023
Arkansas Accounting, CPAs
City of Johnson – 2024, 2023
City of Weiner – 2024
City of Marmaduke – 2024
City of McRae – 2023
City of Quitman – 2024
City of Tyronza – 2024
Benton Municipal Light and Water Works Meyer & Ward, CPAs
December 31, 2024 Yoakum, Lovell & Co., CPAs
December 31, 2024
December 31, 2024
Berry & Associates, CPAs
Landmark, CPAs
Town of Tollette – 2024, 2023
December 31, 2023
City of Augusta
Yell, Conway, Logan, and Scott Counties
December 31, 2023
Town of Black Oak – 2024 Priddy, Holifield Ables, CPAs
City of DeQueen – 2024 Town of Twin Groves – 2023, 2022 Arkansas Local Police and Fire Retirement System December 31, 2024 Forvis Mazars, CPAs Prosecuting Attorney Ninth Judicial District East December 31, 2024 Clark County City of Clinton – 2024
Documents
| Title | Type | Pages | Source |
|---|---|---|---|
| Agenda — LEGISLATIVE JOINT AUDITING - COUNTIES AND MUNICIPALITIES, Jul 10, 2025 | Agenda | 6 | Official source ↗ |
Speakers
Representative Cameron Cooper
Unverified
Speaker 3
Speaker 7
Speaker 10
Tammy Wisenhunt
Unverified
Speaker 13
Speaker 18
Representative Carol Dalby
Unverified
Speaker 29
Speaker 34
Chair
Unverified
Representative Johnny Rye
Unverified
Senator Steve Crowell
Unverified
Speaker 54
Speaker 75
Speaker 76
Speaker 79
Speaker 93
Speaker 95
Speaker 126
Doug Hutchins
Unverified
Speaker 136
Speaker 138
Speaker 141
Speaker 154
Senator John Payton
Unverified
Speaker 188
Speaker 191
Senator Ben Gilmore
Unverified
Speaker 131
Speaker 200
Speaker 202
Speaker 206
Speaker 201
Speaker 65
Speaker 204
Representative Stan Berry
Unverified
Speaker 218
Speaker 68
Speaker 221
Representative Lane Jean
Unverified
Speaker 228
Speaker 237
Speaker 242
Speaker 250
Speaker 251
Speaker 254
Senator Alan Clark
Unverified
Speaker 273
Representative Jack Ladyman
Unverified
Speaker 267
Speaker 294
Speaker 299
Speaker 48
Speaker 256
Representative Richard McGrew
Unverified
Mel Dean
Unverified
Speaker 318
Speaker 320
Speaker 323
Speaker 324
Speaker 331
Speaker 335
Speaker 327
Speaker 46
Speaker 258
Speaker 112
Speaker 348
Speaker 350
Representative Nicole Clowney
Unverified
Speaker 20
Speaker 357
Representative Justin Gonzales
Unverified
Speaker 359
Speaker 367
Speaker 362
Speaker 174
Speaker 61
Speaker 302
Speaker 383
Terry Purvis
Unverified
Speaker 332
Speaker 124
Speaker 389
Speaker 390
Speaker 393
Speaker 397
Speaker 333
Speaker 403
Speaker 195
Speaker 405
Speaker 406
Speaker 316