Legislative Joint Auditing-Counties and Municipalities
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Representative Cameron Cooper
Unverified
0:00
It's time to call the meeting to order. We want to welcome everybody here to the meeting today. First item on the agenda, we need approval of the prior meeting's minutes. We need a motion and a second to approve. Senator Kroll, motion, Representative Jean, second, all in favor,
Speaker 3
0:23
say aye. Aye. Minutes are approved. uh turned over to
Representative Cameron Cooper
Unverified
0:29
mr archer to begin a review of the reports uh thank you mr chair uh can we back
Speaker 7
0:35
up to agenda c on update of private reports
Speaker 10
0:40
real quick um if the committee members remember uh starting last june july meeting we've been tracking um some private water and sewer audits that new legislation at that time gave them an 18-month deadline to get their audit report in there well last july 1 was that 18 month deadline for those well currently we have
Tammy Wisenhunt
Unverified
1:04
44 reports that are still outstanding that were due last june 30th for the physical year 12 31 22. 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 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
1:55
a September 1st deadline to have the report here. And if they do not have the report there, then we could invite them in, or
Tammy Wisenhunt
Unverified
2:04
the 277207 actually allow -- that's the wrong code. The code asks for -- allows for y'all to withhold their turn back with treasurer. so though i guess those are our choices here at this time or third choice would be to continue to
Speaker 13
2:22
wait any discussion on that center crawl and
Speaker 10
2:35
how long what was the the length of time that they've had the these reports that we're waiting on were dated 12 31 of 2022. the law allows for 18 months to get that done so that would have been last july 1 july 1 of 2024 they were due and now we've given them another 12 months giving them another 20 years committee's discussion i'll make
Representative Carol Dalby
Unverified
2:56
a motion okay any further discussion representative dalby um somebody show me where that list is
Speaker 10
3:08
i've been looking through them we don't have the list here we can provide a list the
Tammy Wisenhunt
Unverified
3:13
next meeting or it's um you've we've given original list september of last year i believe we provided the list and then we um i didn't keep that list from september i'm sorry um i guess i'm not very well
prepared for this part of the meeting today hope it picks up so yeah but we can get that information to you
Speaker 29
3:38
further discussion i make a motion to hold i make a motion to hold
Speaker 10
3:47
there's in berries how many are we talking about we
Tammy Wisenhunt
Unverified
3:50
got 44 that are due for the 22 report and then there's an additional 69 that just went delinquent with i mean yeah additional 69 and those of course those
44 are also delinquent now for the 23 report that was due this so there's 110
Speaker 34
4:02
for this past july 1st and 44 for the previous july 4th from first anything else senator crawl you're recognized
Chair
Unverified
4:15
i make a motion to hold the turn backs on all these senator makes a motion to
Representative Cameron Cooper
Unverified
4:22
hold the turn back on these 44 water districts do we need a second on that represent barry any discussion on this motion no discussion all in favor say aye
Tammy Wisenhunt
Unverified
4:36
all opposed motion carries we need to address the remaining 69 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 over 100 down to this 44 so it was so I guess we
Speaker 10
4:58
need a discussion or a motion on what to do with those remaining 69 represent right Joe can I ask
Representative Johnny Rye
Unverified
5:10
you a question sir is that a report
that they make to you guys it's a audit report done
Speaker 10
5:16
by private CPA they have to contract pay for it
Tammy Wisenhunt
Unverified
5:18
from a private CPA to and then submit it to us and we submit it to to this committee. Well they need to do that. Thank you Joe.
Senator Steve Crowell
Unverified
5:34
Yes sir. Senator Kroll. I make motion we send a letter and give them a deadline and in the letter explain what we just did with the other forty four. Do you need a date on
Speaker 3
5:45
that deadline? Deadline of September. Okay. What date, Senator Kroll?
Representative Cameron Cooper
Unverified
5:52
September 15th. September 15th, all right. Representative Leiterman, second. Any discussion on the motion? Can I edit that?
Speaker 54
6:04
I want it before the audit meeting. What's the audit meeting in September? The 11th, I believe. So due by the 7th?
Representative Cameron Cooper
Unverified
6:15
Motion in a second September the 7th for that to be due. Any discussion on that motion? All in favor say aye. Aye. All
Speaker 34
6:28
opposed. That motion carries. Along the same lines, we have three cities that are
Tammy Wisenhunt
Unverified
6:34
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. waiting on exit conference we expect it within days uh prescott 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
7:07
senator kroll i'll make a motion we send a letter and have deadline September 1st for
Representative Cameron Cooper
Unverified
7:15
these cities. Motion by Senator Kroll, second by Representative Vladyman. Any discussion on the motion? All in favor say
aye. Aye. All opposed? Motion carries.
Okay we're ready to move to item D. Yes sir. All right we're moved to item D on the
Speaker 34
7:42
agenda. thank you mr chair this is review of the reports uh you've got your synopsis in front of you uh starting on page one we have 11 deferred reports from the previous uh meeting first one from on pages one through three we have six regional solid waste management districts review of selected policies and procedures and transactions from july 1 21 through december 31st of 22. we've
got staff member charlie camp here today to
Tammy Wisenhunt
Unverified
8:09
present this report we've also got i believe mississippi county judge allen nelson here make himself the end of the table be ready when charlie when charlie finishes sir
Speaker 75
8:31
thank you mr chair 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 19 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 saline county sebastian county central arkansas and southeast arkansas
districts contain 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 limited
Speaker 76
9:18
resources those are mountain district audit 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 objectives of
Speaker 75
9:33
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, receding, and disbursements. Objectives unique to the Ozark Mountain District were to 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 all 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 Mississippi
Speaker 75
10:28
district board member was paid $8,250 to serve as district educator without board approval in the form of an ordinance or resolution in non-compliance with Arkansas code annotated 2181001 management's response to any board member that is
receiving compensation will be approved by board resolution. Finding number two, the district board has not held open public meetings since January 2021 in noncompliance with Arkansas code annotated 86703 and 2519106 and district bylaws. As a result, the board did not select a chair each year. Additionally, 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 annually, as
required by Arkansas Code Annotated 86704 and confirmed in 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 one and two for the Mississippi County District were referred to the second judicial prosecuting attorney and the attorney General. Finding number three, 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 of five members. If the number of members serving is less than five, additional members necessary to make the total number equal five shall be appointed by mutual agreement of the other board members and shall represent the general public. The 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 number four, the audit report was not reviewed by the board and documented in the minutes in non-compliance with Arkansas code annotated 86704. Additionally, a contract to update the district's solid waste management plan was not approved by the board and non-compliance with Arkansas code annotated 86703 and 704 in district bylaws. A 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, totaling $37,423. In noncompliance with Arkansas code annotated 86704 and 1422104. Similar 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, accepted 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 number three, the audit obtained by the district did not include activities related to the neighbor's landfill and non-compliance with the requirement provided in Arkansas code annotated 86704 section D5 that a full and complete audit be obtained.
A similar finding was noted in a prior report. Legal 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 ADEQ the actual cost of the neighbor's landfill remediation enclosure, 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, ADEQ claim, and certain obligations at the neighbor's landfill. In 2018, taxpayers filed six separate illegal exaction lawsuits regarding assessment of the $18 fee. And during 2020, judges in all six cases ruled that the fee was an illegal exaction. As of report date, proceedings regarding distribution of final award to the plaintiffs remained open.
Additionally, during a meeting of the Joint Budget Committee of the General Assembly in April 2020, a motion was adopted for ADEQ 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 at issue and directing said funds to the registries of the legal exaction courts from which they were collected for disposition pursuant 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 receded by use of receipts pre-numbered by a printer or an electronic receiving system that accomplishes the same purpose as pre-numbered receipts. The district did not issue pre-numbered 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 TIN or EIN of the Southeast Arkansas Economic Development District. As a result, grant funds paid by the state for solid waste programs were in the name of SEAEDD. A similar finding was noted in a prior report. Management responses to the findings are contained in the body of the report. VLA issued no findings for the Central Arkansas, Saline County, and Sebastian County districts. Mr. Chair, this concludes my report.
Representative Cameron Cooper
Unverified
17:23
We have a Mississippi County judge here, is that correct? Yes. Welcome, sir. Please state
Speaker 93
17:29
your name for the record. It's John Allen Nelson, county judge for Mississippi County. Okay, and do you have a statement prepared for us? I have some notes here that I'd like to read for you. Okay, go ahead. The four findings that the auditors found, we've already corrected three of those. We have had meetings since then. The audit reports have been distributed to the members and voted on.
The mayors in the county have been issued emails or letters to provide board members to restructure the Solid Waves Management Board in a way that would 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 I won't be back here again, so we'll get it fixed. Well, thank you,
Representative Cameron Cooper
Unverified
18:41
Judge, for addressing these findings. Do we have any questions from the committee for the judge? All right, seeing
Speaker 95
18:55
no questions. Thank you for having me, and I apologize for taking up your
Representative Cameron Cooper
Unverified
19:03
time. Thank you for being here. If there's no further questions from the committee without objection, we will file this report.
Tammy Wisenhunt
Unverified
19:12
Mr. Chairman, if you would, with your permission, I'd like to skip down to number 16 real quick. On the reports filed with prosecuting attorney in the Attorney General's office, we have a special report on pages 19 through 21. Used tire programs two and four, reviewed of selected policies, procedures, and transactions from June 6th of 23 through June 30th of 24. And staff member Charlie Camp is going to present this one as well.
Speaker 75
19:45
This report is issued Persuade to Arkansas Code Annotated 89410, which requires Arkansas Legislative Audit to review selected policies, procedures, and transactions of Arkansas's used tire programs. And for this report, ALA 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. Act 713 of 2023 created four used tire programs in the state to address efficiency in tire processing,
including without limitation transportation. The act requires that each district be governed by a tire accountability board, similar to a board of directors composed of 11 members. Two 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 has four programs, as shown on Exhibit 1 on page 2. Accounts for the program selected were, or are planned to be included in the audit reports of the Regional Solid Waste Management Districts managing the programs for each board. Accounts for Program 2 were included in the audit report for the Pulaski County Regional Solid Waste Management District. The audit was performed by a certified accounting CPA firm and contained no findings.
Accounts for program four are administered by the Southeast Arkansas Economic Development District. 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. SEAEDD intends to continue including the used tire program accounts now operated by program four 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 ended June 30, 2024. The objectives of this review were to determine if the programs adhered to laws and regulations pertaining to the programs and their tire accountability boards. Competitive bidding, payroll, tire accountability program reporting, and transactions involving board members, administrators, and employees. Other objectives were to assess internal control processes related to cash, revenues, receding, and disbursements.
Use Tire Program 2. The act mandated that Program 2 consist of Fulton, Sharp, Randolph, Clay, Izzard, Lawrence, Green, Stone, Independence, Jackson, Crickhead, Mississippi, Cleburne, Faulkner, White, Poinsett,
Speaker 76
22:40
Woodruff, Cross, Pulaski, and Crittenden counties. Program two entered into interlocal
Speaker 75
22:47
agreements with programs three and four. The agreement with program three stipulates that program two will provide services to Saline and Hot Spring counties.
The agreement with program four stipulates that program two will provide services to Lone Oak, Prairie, Monroe, St. Francis and Lee counties. Per the approved business plan, Program 2 serves 18,280 square
Speaker 76
23:14
miles in a population of 1,353,499 based on the most recent federal census. On March 15th
Speaker 75
23:25
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. ALA issued three findings for program two. Finding one, program two paid $3,160 to a company owned by the Waste Tire Coordinator for data entry of waste tire manifest into the DEQ electronic portal without a contract or board approval in the form of an ordinance or resolution in non-compliance with Arkansas code annotated 218-1001.
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 waitstire coordinator employed a third party to accomplish data entry, which requires in excess of 50 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.
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 in 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 code annotated 104419.
Finding number two, check images provided for program two bank accounts did not include both sides of canceled checks and noncompliance with Arkansas code annotated 19-2501 through 509. Finding number three, pre-numbered receipts were not issued for all items of income and noncompliance with Arkansas code annotated 89405 and 1425108. For used tire program number four, the act mandated that program four consists of Grant,
Jefferson, Arkansas, Phillips, Cleveland, Lincoln, Deshay, Calhoun, Bradley, Drew, Ashley, Lone Oak, Prairie, Monroe, St. Francis, Lee, and Chico counties. Program four entered into interlocal agreements with programs two and three. The agreement with program two stipulates that program two will provide services to Lone Oak, Prairie, Monroe, St. Francis, and Lee counties. The agreement with Program 3 stipulates that Program 4 will provide services to Dallas and Union counties.
Per the approved business plan, Program 4 serves 10,773 square miles and 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 program four and approved a tire reimbursement rate of $2.90 per tire. ALA issued one finding for program four. Pre-numbered receipts were not issued for all items of income in noncompliance with Arkansas code annotated 89405 and 1425108.
Prior to the report date, program four obtained pre-numbered receipts. Management's responses to the findings are contained in the body of this report. Mr. Chair,
Representative Cameron Cooper
Unverified
27:03
that concludes my presentation. Any discussion from the committee? Representative Dalby. Thank you, Mr. Chair.
Representative Carol Dalby
Unverified
27:10
It's not necessarily discussion 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
Tammy Wisenhunt
Unverified
27:35
they're going to prosecute or not? Tomorrow
Representative Carol Dalby
Unverified
27:37
morning at 8.30. For the 23 each year in the Friday meeting. So it's a whole year before we know what they've done. 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 within 30 days of you making a decision, you provide audit with a report?
Tammy Wisenhunt
Unverified
28:04
Mr. Jones just indicated it's per statute. Is that correct? We believe it is. We can check on that to
Representative Carol Dalby
Unverified
28:10
make sure. I would like somebody to 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've been on audit before, and you get this big old report, and nine times out of ten, they haven't done anything, and this is taxpayer money, and just not doing anything.
So, if I could get that information, I would share
it with the committee. Thank you. Sorry for my little
Speaker 126
28:38
rant. I appreciate the indulgence, Mr. Chair. Mr. White, 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 June 30th deadline for all those matters referred in the preceding calendar year. So they have a calendar, 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 June 30th of that following year.
Then we're in the compilation and preparation process of that complete report. So
Representative Carol Dalby
Unverified
29:09
we're, I'm sorry, ask a question of the witness. Go right ahead. So we're 18 months, two years out, finding out what we referred to, basically. Is that about right, if I understood? Yes. So we could change that by statute. Yes, I understand. I think there may be a bill in that regard.
Representative Cameron Cooper
Unverified
29:35
Thank you. I was about to say, I think that's your first bill for next
Representative Carol Dalby
Unverified
29:41
session, Representative Dalby. And I've already got a co-sponsor and we'll seek others who
Representative Cameron Cooper
Unverified
29:47
want to help. Any more discussion from the committee
or any questions for staff? If not, without objection,
Tammy Wisenhunt
Unverified
29:59
we will file this report. Going back to number two on our deferred list, we have the City of Lincoln, 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 contain misstatements in cash, accounts receivable, inner fund receivables, accounts payable, inner fund payable, fund balance, revenues, expenditures, other financing sources and uses in the amounts of $9,700, $22,000,
$190,000, $17,000, $405,000, $1,999, $208,000, $80,000, $310,000, and $20,000, respectively. Due to activity being intermingled with other funds and the emissions of prior adjustments to the financial statements. Street fund financial records contain misstatements in accounts receivables, inter-fund receivables, accounts payables, fund balance, revenue, expenditures, and other financing uses in the amounts of $19,404,000, $2,600, $516,983,
$2,500, $183,000 respectively due to funds being 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 in investments, accounts receivables, accounts payables, inter-fund payables, fund balance, revenue, expenditures, and other financing sources and uses in the amounts of 53,000, 68,000, 14,000, 190,000, 970,000, 458,000, 503,000, 4,700, and $94,000 respectively.
Due to fund activity being intermingled with other funds and commissions for prior and prior adjustments of financial statements. I
Speaker 34
32:04
believe we have Mayor Doug Hutchins from the city of Lincoln here today. Mayor, would you approach
Representative Cameron Cooper
Unverified
32:11
the end of the table please? Identify yourself for the record. Turn your
Doug Hutchins
Unverified
32:21
microphone 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 of the, and I have my
Speaker 136
32:34
auditor, Chris Ward, here from Berry and Associates as well. We've used QuickBooks software for many years. That's the system we put in, I believe, 10 or 15 years ago. The way QuickBooks handles funds accounting is the movement between the different departments is held in accounts, adjustment accounts, and then moved over. We have switched the software to CenterPoint software, which handles municipal fund accounting,
which should address all the misstatements that are being seen. If you have any questions, Mr. Ward can
Doug Hutchins
Unverified
33:07
answer in more detail. Mr. Ward, do you have anything you'd like to say?
Speaker 138
33:13
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, and 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 finding will disappear for the 2025 audit. This will no longer apply. Okay, thank you
Speaker 141
33:48
for the explanation. Representative Dalby. Thank
Representative Carol Dalby
Unverified
33:50
you, Mr. Chair. I have a couple of questions because I'm the one
that held this this last time because 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 CPA'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, the $404,877. So my other question, this may be, yes, and there's another one, 190,462.
So I guess the first question is to the CPA, how come this hasn't been corrected prior? if you've pointed it out, and my next question would be directed to the mayor that I would like to ask you, Robin, Peter, to pay Paul, because if we're talking about street fund money, turn back money, 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 funds shifting to cover payroll or sewer or roads or whatever. Could you please address those two big issues? Certainly. So I
Speaker 138
35:41
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 of 4,004 is an inner fund payable and receivable. That's why those match up. So that's transfers that are made between funds, et cetera, cannot be over throughout history properly applied to the net position of each fund because of the limitation of the accounting software. This isn't saying funds are being misappropriated. This isn't saying that funds are being used wrongly or incorrectly. Well, and could you
Representative Carol Dalby
Unverified
36:24
answer my question, and my question
was, how long has this been going on that you've reported it and nothing has been done?
That, whether it's QuickBooks 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,
Speaker 136
36:50
how come, if you found it, what did you do to? Well, this has been central 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, my population in my town is 2,494 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 to 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's not funds being misappropriated. There's not missing funds. 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 I
Representative Carol Dalby
Unverified
38:04
appreciate that, and I appreciate the fact that you have limited funds, 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'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?
Speaker 136
38:47
No, they only, within our water department, which is legal to fund other activities out of the water department, we supplement our police department with water department funds. And outside of that, we are all, 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 an annual increase in our bank account balances show that we're doing our budgets.
And meeting our budget expectations. And
Representative Carol Dalby
Unverified
39:21
one other question, if I may, Mr. Chair. 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
Speaker 154
39:39
paying your auditors every year? We're around $12,000.
Speaker 136
39:47
And, you know, one of 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 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 been five years ago, I believe. I'll yield
Representative Carol Dalby
Unverified
40:14
to any other questions. I have some, but I may go across the line if I keep going.
Senator John Payton
Unverified
40:22
Senator Payton. Thank you, Mr. Chair. So I'm curious. You said you have a good, solid budget that you follow. Correct. So did these adjustments, 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?
Speaker 138
41:02
I think the important thing to note here is, so for a good example would be accounts receivable. So on 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.
Senator John Payton
Unverified
41:25
Well, and I appreciate, I'm sorry to interrupt 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, if 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 we present 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
Speaker 136
42:03
off every month when you reviewed it. We present both our actual bank account balances, our physical balances in the bank account, and those align with our budget moving forward. So do you
Senator John Payton
Unverified
42:13
maintain separate bank accounts for each one of these budget items? Most of them, yes. Okay. All right, thank you.
Representative Johnny Rye
Unverified
42:26
Representative Wright, do you have a question? Sir, let me ask you this. Of all these funds and all these split outs, do you have turn back for city turn back and turn back for city road turn back? Yes. Okay. 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 the next year starts.
Speaker 136
43:00
Are you doing that? The only expenses that comes out of street turn back is sidewalk and asphalt overlays, street cuts, stuff directly associated with the street turn back 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 turnback account, bank account that we keep our balance up in, and we only do street turnback activities out of street turnback fund.
We do not use money from the street turnback fund to fund other departments. Okay. Yeah, it's all kept very strictly kept separated there, and the same with our general fund. We only run out of our general fund, you know, the police department and the office and our areas that are supposed to come out of the general fund. Our water department is separated out. We run separate accounts for those. And our council gets a report on those accounts monthly. Okay.
Representative Johnny Rye
Unverified
44:10
So as far as the street money that's coming
on turnbacks? Correct. You're not using that at all?
Speaker 136
44:18
Only for overlay projects, sidewalk, and street cuts. Okay. Yep. Thank you, sir. Any further questions
Speaker 175
44:24
from the committee? Representative Dalby. Well,
Representative Carol Dalby
Unverified
44:35
I have a question of staff. Seems like I always have a question of 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
Tammy Wisenhunt
Unverified
45:02
that or can we? No, you would not need to defer it. It's automatic? 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 sent to the prosecuting attorney because it doesn't meet one of the criteria that automatically sends it there.
Representative Carol Dalby
Unverified
45:21
Then with that, I would have a motion that we send this on to the prosecuting attorney and attorney general to get another
second eyes on this. Can we file it? I'm fine with filing it if the committee is, but I'd like to have it sent
Speaker 183
45:36
on just to have another set of eyes. We have a
Representative Cameron Cooper
Unverified
45:40
motion to file this report. Microphone. Thank you. Motion to file this report and send it to the prosecuting attorney and the attorney general. Is that correct, Representative Dalby? Was that your motion? Yes. Okay, do we have a second?
Any discussion on the motion? All in favor, say aye. Aye. All opposed? Motion carries. Thank you gentlemen for being here, we appreciate it.
Speaker 188
46:07
Back to our synopsis number three on page four, continuing on reports deferred
Tammy Wisenhunt
Unverified
46:13
from the previous report. We have the Midway Public Water Authority 2022, which is a private CPA report. This report was held over last month because we lacked a response.
Speaker 188
46:25
We received a response and staff recommends that we file this
Representative Cameron Cooper
Unverified
46:31
report. Any questions from the committee? Without objection, we will file this report. Continuing on
Tammy Wisenhunt
Unverified
46:40
page four, under deferred reports, we have the Town of Banks 2023. This was a previously deferred report. I got a call from the recorder treasurer, Lee Baia, who was invited here. She still cannot drive, and she requests that we defer this report until September.
I will note, staff would like to note, that we are there currently doing the 24. It will more than likely be in the October meeting. Just information. You can either defer this one or file it, and we'll follow up
Senator Ben Gilmore
Unverified
47:21
choice. Senator Gilmore. Thank you. Maybe question for staff, but discussion here for the committee. So regarding the town of banks, the only thing I'm seeing was receipts that weren't numbered.
I think if you're there now, I think I would suggest we file this. But I'm open, but I don't see a reason to delay it. That's where I am too. Okay, well, then I would make a motion if we
Representative Cameron Cooper
Unverified
47:46
need or maybe it's without objection. Any further discussion about the committee? Without objection, we'll file
Speaker 131
48:00
this report. Continuing on page five through seven, we have the city of Dermott pages for 23 and 22.
Tammy Wisenhunt
Unverified
48:08
Under the mayor, we have the city paid a total of $5,000 and almost $1,400 in 23 and 22 respectively for overdraft fees and late fees in conflict of the public purpose doctrine. This is a repeat finding. This finding has also been referred to the prosecuting attorney and attorney general's office. Continuing under the mayor, accounting procedures for municipalities are set forth in municipal accounting law per code. The city 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. Prenumbered 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 of 52 tested disbursements. pre-numbered checks were not always issued in subsequent order.
This is a repeat finding in 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. An annual financial statement was not prepared or published.
This find has been repeated in the previous four reports. Financial statements were not provided to city council members on a monthly basis. This finding is a repeat from the prior two reports. A lack of management oversight permitted these instances of non-compliance with the municipal accounting law and proper accounting procedures. The effect of not following municipal county law and proper county procedures precludes management for 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 Act 833 fund. This is a repeat finding. Continuing on page six, the street fund disbursements exceeded budgeted amounts during '23 and '22 by $66,000 and $90,000 respectively in noncompliant for code. This is a repeat finding. Restricted street fund monies were improperly used for non-street related utility payments and
accounting services during '23 and '22 totaling almost $5,300 and almost $6,000 respectively in noncompliant for code. The city owed the following funds for transfers of restricted cash for which documentation was not provided. As of December 31st of 23, General Fund owed the Nursing Home Capital Improvement, Street, Fireman's Pension Trust, McDermott Cemetery, ARPA, Police Bond and Fine, Working Capital Payroll Fund, a total of $135,000.
Street Fund owed special sales tax, street and water. Gentle Fund, ARPA, a total of $209,000. District Court Automation Fund owed the Fireman's Pension Act 833 and the Fireman's Pension Trust Fund $1,300 and over $11,000, respectively. Fireman's Pension Trust Fund owed Gentle Fund over $11,000. The Act 833 Fund owed District Court Automation over $1,300.
The amounts due from the previous year, the General Fund made payments to the Nursing Home Capital Improvement Fund of $6,000, Street Fund of $9,900, Fireman's Pension Trust Fund of $100, McDermott Cemetery Fund of $700, and the ARPA Fund of $6,500. Fireman's Pension Trust Fund made a payment to the street fund of over $1,000. 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 7, the city water and sewer system did not obtain a financial audit or agreed upon procedure and compliance report for the years 2022 through 2016 as required of Arkansas Code. The city signed an engagement letter on August 29, 19, 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 over $4,000 during the period January 1 of 22 through June 12th of 24.
Unreceded checks and online payments were included in the bank deposits, which concealed a portion of the undeposited cash. On June 12th of 24, the police department secretary Lesota Hayes resigned from employment and acknowledged misappropriating police department funds. We have Mayor Walter Jordan here to answer questions. Staff would like to make two notes. On the third 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 an engagement letter for 23 and 22 audit year. Mayor, would you approach
Representative Cameron Cooper
Unverified
53:59
the end of the table and identify yourself for the record? Good evening.
Speaker 200
54:30
Is this on? Yes. Walter Jordan, Delmont, Arkansas. I'm
Speaker 202
54:36
Clark Terrell, CPA from CrossFit. I'm the outside accountant for the city of Dermott. Thank you for both
Speaker 200
54:47
being here. Do you have an opening statement for us? Yes, sir. The last time I was here at this meeting, I had just become mayor. And during that time, I accumulated all of these
misappropriated funds, which you all see on the back page. I've tried diligently to repay those funds. I've shown it a lot of attention. In 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, looking this matter up and how these monies were used, I couldn't find any records to it. Majority of all of these actions were done 2016, 2017. 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 city's expenses in order that we 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 agreeance 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 the monies 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 by the order 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 morning. And I stopped and questioned 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 that go into working capital that contribute to these funds were done on a Tuesday because payday is on a 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
payroll is supposed to be paid on a Wednesday. Now, one bank pays on a Wednesday. The other bank deposits their money in the bank on a Tuesday right after midnight. That is maybe something that my CPA
Speaker 206
58:59
can answer. Our firm prepares the payroll for the
Speaker 202
59:04
city of Vermont. I'm sorry, and we pay it by a deposit from our firm.
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 amounts by wire on Tuesday, and they make those amounts available to the employees. So we have, 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 a 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're overraft 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 bank procedure that we don't control.
Speaker 201
1:00:22
And may I finish, please? Yes, sir, go ahead. Okay, going on
Speaker 200
1:00:28
into further into the order report. I know that there is some things that the city of Duramont, they have been doing, and these practices have gone on too long. And the same practices for which they were doing in the office under accounting,
I've asked City Council, I've had a call meeting on it, to involve Mr. Terrell deeper into our municipality and 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 unless I go into executive session. But my city council is made up of six people. And out of those six people, going over the order report for continuous finding, I think we need to involve Mr. Terrell. Well, we took that to a vote. Ms. Allen,
Speaker 65
1:02:03
Council Member Broadnecks, Council Member Cook. Mayor, we probably shouldn't mention
names like you mentioned before. Okay, all right. Sorry for that. Well, I had
Speaker 200
1:02:13
a vote that would not allowed me to do so 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 with what i've done for the city of durham it might not show up on the paper i follow the steps that the auditors give me and i share everything on
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 leave the people that's working in office properly trained which should have been done in the city of Duramont years ago this this whole chaos created from 2016 And I'm aware of that these things that are on 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. I said I have paid off a lot of bills that I thought the city shouldn't have had to clear up monies in order to do such things. And it was, I wish I had stayed retired. I'm just going to
Speaker 204
1:03:42
tell you the truth. I'd rather have been fishing than hunting. We appreciate the
Representative Cameron Cooper
Unverified
1:03:48
work that you're doing on this.
And I'll ask the committee if they have any questions for you on this.
Representative Stan Berry
Unverified
1:03:58
Representative Berry, do you have a question? Out of all the conversation that we've had here, is there any, and I apologize
for asking, I probably should know, is there any
Speaker 218
1:04:09
money missing in this? Well, the first
Tammy Wisenhunt
Unverified
1:04:12
finding I read about the overdraft fees, that's being turned over to the prosecuting attorney and current attorney general. It's not per se missing, but it was spent that we would like the attorney general and AG to look at
whether it was for the proper purpose of the city. The police department, the last one, that finding was turned over to the, certified to the bonding board, the PA, and the AG, because there were $4,036 taken by the Secretary of the
Speaker 68
1:04:45
Police Department. That's the, yes, so I guess that's
Representative Stan Berry
Unverified
1:04:52
a yes. Has there been any promise or
any provision to pay this money back to the city?
Speaker 200
1:05:09
of it. May I speak on that? Yes, sir. Yes. That has been turned over to the prosecuting attorney, And along with some other things that involved the city, such as a fire was turned in upon the amount of monies. And I think what I did should have been done three or four years earlier,
where that the nursing home and the 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 $201,471 in the special sale tax fund.
But with the audit report, the city is going to wind up paying $300 and some thousand dollars back. Well, it says in the audit report, with the monies that's been paid back, that is $196,471. That's what the city has already tried to pay back. That is the missing money in the special sale tax fund.
At the same time, the city owes the Duramont Nursing Home working 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 a haystack. These monies were falsely told what it was for in a council meeting.
The mayor at that specific time stated that so much was nursing home and one half was street and one fourth was nursing home. But when I found the old ordinance pertaining to these monies, it did not say that. The ordinance stated one-half cents all nursing homes. That's what the citizens of Deramont voted on to get the nursing homes started for backup, to help it.
Well, this particular mayor addressed 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. I 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 I 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. All monies are not good money. And they took money from this special sale tax fund to match the grant.
The grant was $229,000 with a $57,000 match. That brought it up to $286,000. I'm trying to find out what happened to the balance of the $140,000. I find no record. So I boxed it all up and sent it to the prosecuting attorney. Mayor, I think Representative Gene
Representative Cameron Cooper
Unverified
1:09:27
has a question for you. Thank you, Mr. Chairman.
Representative Lane Jean
Unverified
1:09:32
Mayor, how long have you been mayor?
23. You came in at 23? 23. All right. And I'm assuming that the CPA next to you from CrossFit, he does all your payroll? Well, he does all the payroll. Okay. What does your city treasurer and city clerk do? We
Speaker 200
1:09:56
and the city clerk. There's one of those deals where I and the rest of the office maybe do her job.
That's been in discussion, and it always gets tongue-tied because she's an elected official. Right. and I've called her in, city attorney has called her 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 record keeping, and I'm sure Mr. Terrell can vouch on that.
we still writing things on paper. I just changed the computer systems. The gentleman 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 going to make me have to look somewhere else for this municipality. It's been a fight.
And when I came mayor, all of the things that the city of Duramont had transpired, theft, 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 counts that are dormant. I'm afraid to fool with them because I don't want to be labeled misappropriating funds.
Representative Lane Jean
Unverified
1:11:45
All this paperwork that you got together and sent to the prosecuting attorney, how long ago did you do that? I did that
in 24. So last year? Yeah. Okay. Have you heard it back from anything from the prosecuting attorney? Well, the prosecuting
Speaker 228
1:12:01
attorney called me back when I sent him that file. I didn't
Speaker 200
1:12:06
send it to him the last of the year. I sent it to him the first of 24. And what is it that you call when you go over the time?
Because that was a statute of limitations. That's why I was told this should have been done prior to me sending.
Representative Lane Jean
Unverified
1:12:27
Okay. Well, I used to be a mayor, and I sympathize with you because you've got a mess on your hands. I inhabited a mess. And
Speaker 200
1:12:39
I've worked with Mr. Terrell. I've talked with him.
I've had a meeting with city council to let him help us get out of this
Representative Lane Jean
Unverified
1:12:58
mess with the accounting. 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. Okay.
Speaker 200
1:13:08
All right, well, good deal. Always, always. 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 I don't like all of this stuff. If I had all of this showed up on the job I retired from, I'd probably have been terminated. All right. Thank you, Mayor. Thank you, Mr.
Representative Cameron Cooper
Unverified
1:13:35
Chairman. Any further questions from the 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 like Representative Gene 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 page 43. 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 Garling County. Mr. Archer.
Speaker 188
1:14:26
Thank you, Mr. Chair. 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
Tammy Wisenhunt
Unverified
1:14:40
the county judge, library and comptroller. Garland County Quorum Court approved Ordinance 22-48 designating the Garland County Library Board rather than the treasurer, the administrator of the library funds. The custody of $3.8 million was transferred from the county treasurer to the county library bank account
and non-compliance with Arkansas Code 13-2-404. Attorney General's opinion has been requested to clarify this matter. And that was the
Speaker 34
1:15:12
case at the report date, which was March 19th, I do
Senator John Payton
Unverified
1:15:24
believe this report was released in May of 21. Mr.
Speaker 237
1:15:30
Chairman, John Howard, Garland County Attorney.
Here with me is Adam Webb, the Garland County Library Director. We've asked Representative 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. I do have a brief kind of overview, if you 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 follow 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 processes that several other counties are using this identical procedure, but ALA 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 as 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 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
Representative Johnny Rye
Unverified
1:19:00
any questions that I can. Committee, do you have any questions for the, Mr. Howard, Johnny Rye? Yes, sir. This $3,867,905, sir, is that money that was
spent during the year that at the final settlement at the end of the year for the county that you actually paid back?
Speaker 237
1:19:18
I'll let Mr. Webb address that. That is the funding for the library fund, and he can tell you about
Speaker 242
1:19:26
the specifics of that. Yes, so that's our collections for our Amendment 38 millage 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.
Representative Cameron Cooper
Unverified
1:19:48
Any further questions from the committee?
Representative Carol Dalby
Unverified
1:19:52
Representative Dalby? Not a question, but this is for staff. I understand what their 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 Ms. 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 necessarily opposed from what I hear, but I'm hesitant to just say, oh, well, that sounds great. let's do that, 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 like for Ms. White to come to the table?
If she's ready to. Okay, I thought maybe she might be, but I was giving her an out if she wanted some time.
Speaker 251
1:21:15
Am I on, Mr. Chair? All right, perfect. So Representative Dalby, thank you for the opportunity to respond and give briefly Audit's position in evaluating this particular statute.
So this particular statute, as Mr. Howard has said, is 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 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 on seven different AG opinions from 1990 moving forward. And we agree, there's some gray. I don't disagree with Mr. Howard about that at all. And until this most 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 or 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
Speaker 254
1:22:41
why we didn't change our report. I appreciate that. Kevin White, legislative audit. So a couple issues I'd like to also point out and address with that. Even as Ms. White mentioned some ambiguity in relation to it, our findings specifically, if you read it, we note it in the last sentence says, an attorney general opinion has been requested to clarify this matter. So our finding 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 moment in time and on our opinion at that moment in time. That report was at the end of May. We issued the report to say G opinion was subsequent to that report being issued. We have historically never edited audit reports post-release. Editing of audit reports post-release is driven by standards, professional accounting standards.
And it 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
Representative Carol Dalby
Unverified
1:23:47
does. It's kind of what I thought the 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 opinion number 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
Representative Cameron Cooper
Unverified
1:24:18
I respond? Senator Clark, did you have a question?
Speaker 237
1:24:22
Okay, go ahead. I'll certainly yield to Senator Clark. I just wanted to respond to Representative Dalby's question, but I'll yield to Senator Clark. I 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 anyone would like to see it.
And 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
Senator Alan Clark
Unverified
1:24:57
addressed in that opinion. Thank you, Mr. Chair, all of us, we say this often, but all of us have the greatest respect for BLR and the work that they do.
And I have a personal respect for Ms. White, who I consider a friend and whose legal opinion I trust a great deal. being said, BLR 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 Quorum Court, if my attorney told me that here's what we're doing
and this is why it's legal and we did it, I would think I was on solid ground. Then if BLR 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 five attorneys, you have five opinions. So nothing against anyone's opinion, but I think we should at least have a way to note that we have an attorney's general opinion that's different. Because otherwise, it comes down, if you're on the quorum court, that you did something wrong, even though you've got an attorney's general opinion of something else. And again, I want to respect BLR and the way we've done it and that we believe in 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 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 Johnny Rye
Unverified
1:27:19
Representative Rye, do you have a question? Each year the counties prepare a budget,
usually in November, and then it begins in January. And what I'm having a problem with here, I may not have enough information here, for one thing, but this $3,867,905, now that is being put into another account from the library,
and it's not being used, I don't guess, for general, everyday situations that come through the treasurer's office. Can you give us something on that, guys? They are being expended
Speaker 242
1:28:08
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's authorized twice, but that money is then used to pay for expenses out of that budget that is approved both by the board
Representative Johnny Rye
Unverified
1:28:35
and by the quorum court. Okay, sir. But let me ask you this. This $3 million, 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?
Speaker 242
1:28:50
Some of that is carryover funds.
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 millage is designated for.
Representative Johnny Rye
Unverified
1:29:07
Yes, but was it itemized before the budget began that next year? Yes,
Speaker 242
1:29:11
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 same as we normally had been doing.
It's just our money kind of comes in big chunks rather than a revenue stream throughout the year, depending on when the tax collector collects our millage funds, whether it's money that's in an escrow account or if somebody's just paying their property taxes out of
Representative Johnny Rye
Unverified
1:29:47
pocket. Okay, but let me ask you
this, sir. Being able to put that into a separate account, in other words, you're bringing it in through
the Treasurer, you're going to another account, has that been okayed by the quorum
Speaker 273
1:30:00
court? Yes, yeah, that was done by ordinance according
Speaker 242
1:30:03
to that section of code that 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
Representative Jack Ladyman
Unverified
1:30:27
for that answer. Representative Leidyman. Thank you, Mr. Chairman. I have a question for staff. That's okay. 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 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 motion.
Representative Cameron Cooper
Unverified
1:31:29
Are you making that motion now or are we gonna have further discussion first? I'll make a motion at the appropriate time. appropriate time. Okay. Representative
Representative Carol Dalby
Unverified
1:31:37
Dalby, 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 we do this now and y'all have made findings for 23 or 24 and we come back in the 26, 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 we file it and go on down the road.
Is that correct, Mr. Ladyman? I mean, Representative Ladyman,
Senator Alan Clark
Unverified
1:32:31
thank you. 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 filing it is okay. That's what we did. But not without an addendum that says there's an attorney general's opinion that disagrees.
That would, if we want to make that motion, because I agree with not going backwards, but we're here looking at it now. Okay. Yeah.
Representative Cameron Cooper
Unverified
1:33:12
He said at the proper time. Yes, yes, ma'am. No, my apologies, Representative Leighton. I mean, I
Speaker 251
1:33:24
thought we had a motion on the table, but the chair clarified that you said at the proper time.
Representative Jack Ladyman
Unverified
1:33:32
Representative Leidyman, did you? Yeah. I want to
hear. Yeah. I understand what Senator Clark is saying, and the county may object to
this because it's a record. I understand that might be a problem. If I can make my motion in a way, let me try. Okay, 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.
I don't know how to turn it.
Representative Carol Dalby
Unverified
1:34:53
Representative Dalton. If I understand Representative Ladyman's motion, and I agree with it,
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 a subsequent attorney general's opinion
was issued in this matter, but we're filing the report as it stands. But we note and recognize the objection of Garland County. And we recognize that the attorney general has filed an opinion. Representative Albee, would you put
Representative Cameron Cooper
Unverified
1:35:29
that in the form of a motion? Well,
Speaker 299
1:35:35
I think we have a motion on the floor.
Representative Jack Ladyman
Unverified
1:35:39
I tried. I withdraw my motion and let Representative Dalby make the motion.
Representative Carol Dalby
Unverified
1:35:45
Then I would move that the committee files the report, 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 an opinion subsequent to the audit report that had been presented. But ultimately, the motion is that we file the report as is.
Representative Cameron Cooper
Unverified
1:36:15
Okay, do the members of the committee understand
Senator Alan Clark
Unverified
1:36:25
that motion? Was the stipulation there that we acknowledge the Attorney General? Yes, for the oral record
Representative Carol Dalby
Unverified
1:36:34
and for the recording record that we acknowledge that there was an Attorney General's opinion that has been filed subsequent to the audit and that we are noting that there was an objection
by the county, but that we are filing the report as presented.
Representative Cameron Cooper
Unverified
1:36:53
Okay, did we get a second on? Okay. Any discussion on the motion? And we're
going to limit this discussion to committee members. So
Speaker 48
1:37:06
any discussion on the motion? Could I? Senator
Senator Alan Clark
Unverified
1:37:11
Clark, are you a committee member? I'm trying to get the words for the right motion. It's not point of personal privilege, I am noted as the alternate for Senator McKee.
Okay. I was turned in as an alternate for all three committees by Ann Cornwell. So, but we would have to go back and hash all that out for something that 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 believe it's
the best that this body can do under these circumstances.
Representative Cameron Cooper
Unverified
1:37:58
And I appreciate the motion. Any further discussion on the motion? Everybody understand what they're voting on? All in favor say aye. Any opposed?
Speaker 256
1:38:14
Motion carries. Thank you, gentlemen, for being here. Thank you sir, please note the objection
Representative Richard McGrew
Unverified
1:38:20
of Garland County for the record. Mr. Chairman, can I ask a question? And I should know when we have a situation like that where the county disagrees and
there's a different of opinion on it, with all due respect to everybody. Is there a process to appeal that report?
Speaker 254
1:38:42
Mr. White, 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 an issued report, of my opinion, at that date that I'm signing off with under my professional license,
and it's not amended or
Speaker 131
1:39:09
appealed. Thank you. Continuing on the reports deferred from the
Tammy Wisenhunt
Unverified
1:39:14
previous report on pages eight through nine, We have the town of Gum Springs, 2023, 22, and 21 under the mayor. In 2023, general fund expenditures exceeded budgets appropriations by $4,400 in noncompliance to Arkansas code.
This is a repeat finding. In 23, 22, and 21, budgets were not adopted by ordinance or resolution as required by Arkansas code. This is a repeat finding. The government 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 by Arkansas Code. This is a similar finding that has been noted in the previous three reports. I believe we've got Mayor Mellon Ivory here today to answer questions.
Representative Cameron Cooper
Unverified
1:40:06
That's Mel D. Excuse me, Mel D. I apologize. Mayor, please identify yourself for the record. My name
Mel Dean
Unverified
1:40:12
is Mel Dean Ivory, mayor of Gumb Springs, Arkansas.
Representative Cameron Cooper
Unverified
1:40:15
Thank you for being here. Do
Mel Dean
Unverified
1:40:18
you have a report for us? I have a little something here. Recorder, treasurer, and I are working on these reports and we'll have deficiencies corrected on around July the 17th. We were given two weeks to get it straightened out. The rest will be on the next city council meeting,
which will be on August 5th, 2025, in which we will go over the reports with the city council members. And part of it would be orders, ordinance, and resolutions. I'm just like the first, just like the gentleman from Duramont, this is my first rodeo with being a mayor. And just like him, I got a good retirement. I might have should have stayed at the house.
But during my tenure, we've got a lot of stuff done. I'm not like the president, I'm not going to blame the last president. I own this, okay? And consistency is what we're trying to do, trying to keep a consistent thing going. And also, let me put my specs on, consistency and follow-up. Now, we will get these things done.
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. We have a grant from the DOT where we have over $300,000 for our street fund. So we're getting our streets fixed then. But all I wanted to say, you know, is just I dropped the ball, okay? and I put it on me.
So we'll hopefully that me and my recorder secretary can get these things ironed out. And I think we can, and I know we will. - Are there any questions for the mayor? Mayor,
Representative Cameron Cooper
Unverified
1:42:28
we appreciate you taking responsibility for this and working on these issues. Jack Krister from the
Municipal League is here. I recommend you seek their services if you need extra help.
Mel Dean
Unverified
1:42:44
Well, Mr. Chairman, we have a little bulldog down there by the name of Ms. Amy Davis, which is our 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 her I see
Representative Cameron Cooper
Unverified
1:43:01
it there. Will do, sir. All right. Well, there's no questions from the committee. Without objection, we will
Tammy Wisenhunt
Unverified
1:43:06
file this report. Thank you for being here, Mayor. Sure. Thank you. Continuing with deferred reports, 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 an emergency in her family, and she asked if we defer this report. Without objection, we will defer this report. On page 10 through 11, we have the town of Norman 23, 22 and 21 under the mayor. Property tax restricted for street funds of $3,040 and $2,854 in 22 and 21 respectively,
were not transferred to the street fund as required by code. Under the Mayor and the Court of Treasurer, restricted funds were expended from the street fund as noted below. $4,200, $1,300, $7,000 for 23, 22 and 21 respectively for general fund expenses. $100 and $3,800 in 23 and 21 respectively for water and sewer fund expenditures. As shown in Note 5 of Schedule 7 of this report, when the amount due to the street fund was considered,
the general fund had deficit fund ballots of $369 and $1,680 as of December 31st and December 21, respectively. As of the report date, the town has not established a plan to repay the street fund in non-compliance to Arkansas Code 277207. And that's what we need to discuss today based on that code. There were three options to have it paid back by December 31st of 22 to pass an ordinance and designate 10% of your unrestricted general fund revenues monthly or come before this body and ask for an alternative payment plan of less than 10%.
We have Mayor Tammy Wisenhunt here to answer questions. Yes, my name is Tammy Wisenhunt. I am the mayor. I took over when
Speaker 318
1:45:14
our mayor was killed in a car wreck, 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, I will not name him. He was an elderly man. He wanted to take over and be mayor and thought he should do it until 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 syrup 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 to $6,000. We have got, which is not a lot I know to compare to some of the towns that have been up here, but I'm population less than 500. We have $4,000 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, a 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, came up unexpected. She just had it yesterday, Monday. My little girl, she's working, and I just found out that one of my workers passed out due to heat while I've been up here 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 flush because of 605. And we have to maintain our bond and our debt reserve. And so we have payments coming out of that. We're so hawked to the gill from previous years that we can't get a loan or get any help from anything unless it's a non-matching grant because we don't have money to match.
Also, APERS, unbeknownst to me and before I come on, I think we owe about $125,000 to APERS 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 15, 20 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 flush.
We don't hardly pay anything out of general now, but it's built back up to $6,000. We don't get a lot of turn back 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 have been taken out of it. But
Speaker 320
1:49:12
they have been used to help keep everything
Representative Cameron Cooper
Unverified
1:49:18
else running, because that's all we have. Thank you, Mayor. Is there any
Representative Lane Jean
Unverified
1:49:25
questions from the committee? Representative Jean. Thank you, Mr. Chairman. Mayor, what do you all totally owe the street fund?
Speaker 323
1:49:32
Well, I mean, you have it from the paper that I have. I would have
Speaker 324
1:49:38
to add these three. He just gave three amounts. Can I answer? $22,491. Out of two or three different
Speaker 218
1:49:44
accounts? Water in general. And just two? Yes. Okay. Can you pay 10% a year back?
Representative Lane Jean
Unverified
1:49:50
We can pay what we can
Speaker 318
1:49:53
pay. We're not funding everything we can fund for 605. I mean, we're doing the
Representative Lane Jean
Unverified
1:49:58
best we can. What the question is, if you can pay 10%, you'll know better than anybody else.
It needs to be 10%, but we've done lesser amounts for people, and I think you're trying to do the right thing. If it's $1,000 or whatever, if it's an amount, you tell us what you can do, but it does need to be reimbursed. Oh, I know. But, you know, to say we're going to try to do 10% and you can't do it, that's kind of defeating the purpose. But if you think you can
Speaker 331
1:50:40
No, we're not going to be able to do 10%. I can
Speaker 318
1:50:46
tell you that. Okay. 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 flush 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 city water operator, I have a council and one of those has just got divorced, moved out of town.
So I've got to appoint another person if I can find somebody. I only have three right now, so I've got to find two more to appoint. And my recorder treasurer evidently went to Texas to help her daughter and is not coming back. I was just informed two weeks ago. So now I've got to appoint one of them to fill her term and then run. And we can't
Representative Lane Jean
Unverified
1:51:35
pay enough money to entice anybody. So you cannot do the $400 and you do $200 a month? We could
Speaker 320
1:51:43
probably do $200 a month. We'll make it work.
Speaker 335
1:51:45
All right. She just agreed to it, $200 a month.
Speaker 318
1:51:50
Do you want me to start with any certain account that owes the street fund or the
Speaker 327
1:51:55
one that's most flush? Does it matter? Do you want each one to pay $200? No. Oh. Just maybe, could I rotate it?
Speaker 204
1:52:08
We do. Since it's owed for- Representative, would you make your motion? Yeah.
Representative Lane Jean
Unverified
1:52:12
Okay. You feel pretty confident $200 a month you can pay back to the street and water fund.
Speaker 318
1:52:19
Let me ask you this. Can I, are you just talking about out of
Representative Lane Jean
Unverified
1:52:28
general? Yeah. Huh? Out of the general?
Speaker 318
1:52:30
Out of the general, because that's where the money went into. Okay. Can I do $100 to each account, or do I
Speaker 46
1:52:36
have to do $200 to each account every month? I probably can't do that. It's all due
Speaker 7
1:52:42
to the street fund. There's 3,800, 3,900 of it due from the water fund, and the rest of it's due from the street fund.
Tammy Wisenhunt
Unverified
1:52:50
So if you started with the general fund and paid it down and then started with the water fund or vice versa, as long
Speaker 318
1:52:55
as... Well, I'm more flushing the water fund right now. It's going to break my water operator's heart, but she's on pain pills right now with her knee, 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
Representative Cameron Cooper
Unverified
1:53:14
a plan to me. I'll make a motion. Second. All right, we have a motion and a second. Any discussion on that motion? Everyone understand what they're voting on?
City of, 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. Aye. All opposed? That motion carries. Could we also get you to file a report if there's no objection? All right, any more questions from the
committee? If not, we're going to file this report with no objection. All right, report is filed. Continuing on page
Tammy Wisenhunt
Unverified
1:53:50
11, we have the town of Weldon, 2023.
This one was deferred from the previous meeting as well for recorder treasurer Beverly Tooley to appear. She called and said she had a conflict this month. They did provide me with about 100 pages of journals that they indicated had been corrected. Without doing a mid-year engagement, there was no way for me 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 contact with them to assist them.
Staff has no opinion whether we file or defer. That's, we'll go with the will of the committee.
Speaker 258
1:54:50
What's the will of the committee on this one? You can do that, yes.
Representative Cameron Cooper
Unverified
1:55:05
to file this report. Do we have a second? Second. Any discussion? All in favor? Aye. All opposed? Report
Tammy Wisenhunt
Unverified
1:55:13
is filed. Continuing on page 11, we have a private water and sewer report, Gray Rock Water User Association. This one was deferred because we lacked a response. We received a response earlier this week. Staff recommends we file this report.
Representative Cameron Cooper
Unverified
1:55:30
Any questions on this report? Without objection, we'll file this report. Have another private CPA report for
Tammy Wisenhunt
Unverified
1:55:39
the outside Kings and Rural Water Association that was also deferred because we lacked a response. 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 until we receive that response. Any questions on
Speaker 188
1:55:56
this report? Without objection, we will defer it.
Tammy Wisenhunt
Unverified
1:56:00
We have three reports starting on page 12 that were certified to the bond board and referred to the prosecuting attorney and 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 court order community service hours. The employee, Evelyn Miller, was terminated and on August 1st, 2024, she pled guilty to abuse of office and forgery and was sentenced to 60 months probation.
As I said, this report has been certified as a bond board, referred to the prosecuting attorney and attorney general. There's
Speaker 188
1:56:42
no questions from the committee. Staff recommends we
Speaker 348
1:56:47
file this report. Okay. Representative Gene. This is the staff. Thank you, Mr. Chairman. How much money was this, was missing?
Tammy Wisenhunt
Unverified
1:56:55
Well, it wasn't actually money, they were sentenced to community service. And she was forging the record so they didn't have to have to do the community service is my understanding.
Representative Lane Jean
Unverified
1:57:06
Okay, so the fine or community service work, they didn't pay the fine so they didn't- They were getting credit, they were getting credit. City of Magnolia lost money on this because there
wasn't the work done for or the fine paid. Yes. Do we know how much the fines totaled up? I don't
Speaker 350
1:57:25
think we could calculate it because it was hours, so we don't equate it to certain services. I don't know
Representative Lane Jean
Unverified
1:57:31
what the original fines were. And I'm certain the employee was just 60 months probation, so they had no reimbursement?
Not that we're aware of. Okay. All right.
Representative Cameron Cooper
Unverified
1:57:43
Thank you. Any more questions on this report? without
Tammy Wisenhunt
Unverified
1:57:52
objection we will file it continuing with reports certified at the bond board and referred to the prosecuting attorney and the attorney general's office we have the city of sulfer springs 23 22 and 21 under the mayor the city discovered and we verified unauthorized purchases made during the period june 21st
through january 23 by the employee appointed as recorder treasurer in january of 19. the purchase Purchases total $731, which included internet equipment and monthly online subscriptions. The employer resigned on April 20th of 22, and as of the report date, the city 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 authorizing ordinance in apparent conflict with Arkansas code. Both of these, that finding was also referred to the PA and the AGs. Without question from the committee, staff recommends we file this report. Any questions
Representative Cameron Cooper
Unverified
1:58:59
from the committee? Without objection, we will file
Speaker 188
1:59:07
this report. On page 15, still was certified as a bond board and
Tammy Wisenhunt
Unverified
1:59:11
referred to the Prosecuting Attorney and Attorney General's office. We have Greene County, 2023, under the sheriff. Upon termination of employee, undeposited funds totaling $3,200 was located by county officials. During her interview with law enforcement, the employee, who served as finance director, acknowledged she was custodian of these funds and placed $3,200 in her desk drawer to replace funds she had previously taken. Our review of court receipts for the period January 1 of 23 through June 30th of 24 revealed 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
2:00:02
report as it has been certified as a bond board, PA, and FGE's office. Any questions from the committee? Without objection,
Speaker 188
2:00:13
we'll file this report. We have 15 reports referred to the prosecuting attorney in
Tammy Wisenhunt
Unverified
2:00:18
the AG's office. Starting on page 15, we have an investigative report for the Boonville-Logan County Senior
Citizens Center, review of selected financial records for January 1-22 through July 31-24. We have staff member Michelle Atchley here to present this report. This report is issued
Representative Nicole Clowney
Unverified
2:00:37
in a response to a request for legislative audit to review selective financial records of the Boonville Logan County Senior Citizens Center. The 15th Judicial District Prosecute and Attorney requested our assistance after receiving allegations that center funds were misappropriated.
The center is operated by Boonville Logan County Senior Citizens Incorporated, a non-profit corporation which provides meals, socialization, recreation, transportation, and other services to qualifying residents. The non-profit is governed by a seven-member board of directors, and additional oversight is provided by the Area Agency on Aging for Western Arkansas. This review was conducted primarily for the period January 1 of 2022 through July 31st 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. The individual who served as center director during the review period resigned on July 3rd 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 charges and other selected disbursements for the period January 1st through 2021 through July 31st of 2024 revealed improper disbursements totaling $41,348. Of those, $33,383 are in payments to various vendors without adequate documentation. Therefore, the validity of these disbursements cannot be determined. $7,861 for personal expenses, including groceries, household goods, toys, gifts, clothing, meals, and pet supplies.
Also, the business purpose for $9,437 and additional questionable expenses could not be determined or confirmed by our staff based on available documentation. However, according to Area Agency of Aging Officials, these purchases do not appear to be for center use. During an interview with Arkansas State Police and legislative audit staff on January 3rd of this year, Kaylee Bynum, who served as center director during the review period, acknowledged that she used the center debit and credit card for personal purchases.
As previously mentioned, the director resigned on July 3rd 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 from $457 per month during the period under review to $1,835 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 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 misappropriations to happen. Staff recommends that financial duties be segregated to the extent possible, bank statements and credit card statements be reviewed monthly, Adequate documentation being 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 fiscal oversight.
The Board of Directors and the Area Agency on Aging have been working with the new director for the Senior Center to ensure the 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 15th Judicial District Prosecuting Attorney and the Attorney General. The Prosecuting Attorney charged Bynum with theft of property.
She has pled not guilty and a trial is scheduled for
Representative Cameron Cooper
Unverified
2:05:43
later this year. Does committee have any questions on this report? Yes,
Tammy Wisenhunt
Unverified
2:05:49
without objection, we will file this report. We've already covered number 16, so we'll move to number 17 on the list on page 22, continuing under refer to the prosecuting attorney and attorney general's office, where the city of Arkadelphia 2023 under the treasurer's office.
Five checks totaling $102,000 were altered and cashed from the city's general fund and airport fund bank accounts between February 15th of 23 and July 31st of 23. The bank and city personnel discovered the altered checks. And $84,400 was recovered from the bank. The city discovered almost $18,000 in altered 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 in the 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 a 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 is a standing authorization for a 3% raise for all employees each year. However, the increase was not accounted for within the city budget. In addition, some employees received a raise of more than 3%.
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. Additionally, it was observed the city council has not established former 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 lack signatures and fail to provide a clear business purpose to the expense incurred. During the audit it was observed that the city disbursed checks to both employees and contractors without maintaining adequate documentation for expenses. Arkansas Code states a disbursement from municipal funds shall have adequate documentation for the disbursement. There was a
Speaker 131
2:08:34
staff note included in this report, a going concern.
Tammy Wisenhunt
Unverified
2:08:38
The city has encouraged significant operating losses and negative 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 is working on preparing a workable budget, annual budget. If this is achieved, will provide significant excess funds.
All these findings have been reported to the prosecutor and attorney in the Attorney General's office. If there's not any questions from staff, staff recommends
Speaker 131
2:09:26
we file this report. Does the committee have
Tammy Wisenhunt
Unverified
2:09:30
any questions? Without objection, 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 to $5,000, 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. If it's not questions from the committee, we recommend we
Representative Cameron Cooper
Unverified
2:10:05
file this report. Any questions from the committee? Without objection, we will file this report. Continuing on page 27,
Tammy Wisenhunt
Unverified
2:10:13
we have Pike County, 2023, under county judge and county clerk.
The county donated $7,500 and $5,000 to the Pike County Archives and the Greater Glenwood Chambers of Commerce, respectively. Both non-profit corporations without contract for services in apparent conflict with Arkansas Constitution, Article 12, Section 5. This finding has been referred to the prosecuting attorney and attorney general's office. Staff 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 dispersed funds totaling over $3,000 for two holiday meals for employees and their families without a documentation of a business purpose. An apparent conflict of the public purpose doctrine in Article 12, Section 5. This finding has been referred to the prosecuting attorney in the AG's office. There's no questions from the committee, we recommend we file. Any questions from the committee? Representative Dalby.
Representative Carol Dalby
Unverified
2:11:19
I have a question for staff or 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 their 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 buy people's dinner? Do we do anything?
Speaker 10
2:11:49
We have discussions at Exit Conference and explain, you know, the Public Purpose Act. Yeah, but
Speaker 20
2:11:56
that's after the fact. Jack, are y'all giving that? Okay. Thank you. We did file that
Speaker 357
2:12:08
one, right? Not yet, any further questions
Representative Cameron Cooper
Unverified
2:12:11
on this one? Without objection, we'll file this report. Pages 29 through
Speaker 188
2:12:16
30, we have the town of Jericho.
Under the mayor and police chief,
Tammy Wisenhunt
Unverified
2:12:23
fines and cost revenue of over $55,000 exceeded 30% of the town's expenditures in the preceding year by almost $28,000 in noncompliance with code. Revenue was generated from the traffic of fence citations written by an arrest made by the town's law enforcement personnel. Or simply, I can't say that word, action related to the enforcement of traffic offenses under the mayor and recorder treasurer.
Although schedule one of this report shows a balance of almost $6,000 in the general fund. It was brought to our attention that as of December 31st, 23, the general fund owed significant amounts to the street fund. As shown in Note 6 on Schedule 3, when this outstanding amount was considered, the general fund had a deficit of almost $53,000. This is a repeat finding in the last three reports. Continuing under the mayor,
Restricted funds of almost $59,000 were not transferred to the street fund from the general fund as required by Arkansas Code. The town made payments of $661 to reduce this balance owed to the street fund. On February 9th of 2024, the town received approval from Les Slave Joint Auditing Committee to pay $100 and $200 monthly, alternating amounts each month for three years, and to pay $300 monthly after the three-year period.
This is a repeat finding for the previous 15 years. In addition, based on the 23 approved budget passed in January 19th of 2023, the mayor and McCorder treasurer were underpaid for the year by $3,300 and a little over $2,000 respectively. According to the town officials, the council elected to withhold salary payments to these positions in order 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 decision by the council. It 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 complied with Arkansas Code, which states that the city official's salary may be decreased during the term only at the request of the official. These findings have been turned over to the prosecutor and turned into the AG's office.
Speaker 188
2:15:02
Staff recommends we follow if there are no questions. Representative Dalby. I don't have
Representative Carol Dalby
Unverified
2:15:07
a question, but haven't we? I'm
Tammy Wisenhunt
Unverified
2:15:10
sorry. I missed a note here. We have the court treasurer, Lane Dupree, here to speak, and Mayor Ada Sumner, is he available? Okay, just, okay. Ada Shumpert? Yes. Okay, she is unavailable. Okay. Sorry. Ma'am,
Speaker 359
2:15:23
if you'll identify yourself for the record,
Representative Justin Gonzales
Unverified
2:15:31
please. I'm Elaine Dupree, and I'm the city clerk.
Okay, and did you have a statement for us? I just wanted to kind of clarify some of the statements that were read. Okay, go ahead. And I thought there were some findings of myself. I think there was in one of my journals, I had it under the wrong title, I think. I think that's what, okay, I'm here without my paper because 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 to come.
So there's something happening with the mail. So if there's a, if in future, can you all email me? Because
Speaker 359
2:16:19
I check my email all the time. So I guess the postal service isn't as reliable as it used
Representative Justin Gonzales
Unverified
2:16:28
to be. But in any event, I really did not know I was scheduled to be here today until last week when I got the email from Jamie. I think it was Jamie Franklin. Okay, 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 were that we would get a grant that would pay the city police their salaries and then that money is transferred to the monies that would go for their salaries. We would pay that back to the street fund. We did not receive the grant. So I'm still in the process of finding a grant that would do that for us, for the town, in order to pay that back.
Number two, we are currently paying back some equipment from our fire department. It was ordered through the city, but it was stolen. And so 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're going to 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, and I was the one that refused to do that. And I did it because I'm real stickler 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 or 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. Well, I'm like, well, why would I want to 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 was my thinking.
So, but I didn't realize it was going to be a finding. I really didn't. I just thought, well, we would be okay. But since that was a finding, the previous year, I think the following year in 24, we agreed to go ahead and hold our salaries until we can pay off some things. And things happen. Things happen to the city. We've had equipment that failed. We had sewage, some of our sewage pumps 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 grant from the county and we replaced our sewers, our sewage pumps. So that alleviates, but yet still there's a maintenance of that. And so we've been doing that. So we know that we owe that money. we've been paying that money. That's all I have. Thank you, ma'am. Do we
Representative Cameron Cooper
Unverified
2:19:59
have any questions from the committee? Representative Dalby? Not
Representative Carol Dalby
Unverified
2:20:03
at this witness, but may we ask Mr. Kritschner
if he could come to the end of
Representative Carol Dalby
Unverified
2:20:23
him. Yes. Jack Kritschner, Arkansas Municipal League. May I proceed? Mr. Critchard, 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, is a speed trap. And 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
Speaker 367
2:20:58
tell us those 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 the league, but if I remember how that works, an investigation 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 water or your, I think your water and sewer is exempt. But, I mean, I'm spitballing here. Certainly, and I appreciate that. Could you
Representative Carol Dalby
Unverified
2:22:05
ask Mr. Wilkerson to let staff know what's going on in that particular issue with the Municipal League so that they can get that out to us?
Representative Justin Gonzales
Unverified
2:22:17
Absolutely. Okay, thank you. I appreciate you coming to the end of the table. May I make a statement as well, a statement regarding that? Yes, go ahead. Our police chief, they only write tickets, from my understanding, of if a car is going over 10 miles per hour. going over 10 miles per hour above the speed limit. The speed limit is 45. There are two, it's not a speed trap, there are two signs to let you know, let 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 Highway 77, and there is a double S curve in the city of Jericho. It's a double S curve. We have citizens who live on the left side, and they are elderly. There's a one lady 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 day. That's just how he lives. So our officers do not, they do not write tickets unless it is over 10 miles per hour and that has been investigated. Unless it's over 10 miles, over 45. So they have to be
going over 55 or over in order to get a ticket. So 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 is a sign before you get there, then there's two signs before you get there, then the sign in town, then there's another sign in town, and then the double S curve, you're really supposed to go 35. So, and I understand 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 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 Lieutenant and Police Chief pull them over, what have you, then a lot of times they find that there are more, there's a whole lot more that meets the eye than them just
Representative Jack Ladyman
Unverified
2:24:56
speeding through. Representative Layton. Yeah, Mr. Chairman, I just 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, I had a little experience with this.
But there's a formula. I was mayor of a town that was accused of speed ramp. So if you have, if you're speeding tickets are more than 30% of your city's budget, less your water and sewer. Now, Jack, I think we passed a law or we tried to where you could include water and sewer if a city population was under a certain amount because it's a big portion of the budget. I think that's a new law. Somebody else help me out here. But it's pure law.
And ma'am, I understand what you're saying. 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 check that formula. If you're over 30%, you're a speed trap, okay, 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'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. Now, you can talk to the Attorney General's office and see if there's something you can work out there, but that's the law. And it doesn't matter if they're going 15, 20 mile an hour over,
once you hit that 30%, you're a speed
Speaker 362
2:26:48
trap. Wow. Representative Rye. Okay. Yes, ma'am.
Representative Johnny Rye
Unverified
2:26:51
You know, I can see exactly what Representative Lateman 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 sure 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 help you a little bit? Okay. I'm
Representative Justin Gonzales
Unverified
2:27:15
not sure. I'll ask Chief about that. I think there's like a standard amount. I don't know if there's a standard amount.
I really don't know the ins and outs of that. I'll be honest
Speaker 174
2:27:27
with you. I don't. Okay. Ma'am, I have found
Representative Johnny Rye
Unverified
2:27:31
out that you can't change the price of those tickets. It's mandated. Is that right, Representative Jack? Warnings. Sir, would
Speaker 61
2:27:38
you like to take a seat at the table? He's
Speaker 302
2:27:46
come here. Does he have some information for
Speaker 359
2:27:49
us? He does, because he spoke with police chief, and he's also military.
Speaker 383
2:27:53
Okay, please identify yourself for the record. I'm Robert Dupree. I'm just coming back into town and come back from the military, just wanting to get the lay of the land and figure things out to help out. I spoke with Chief Hill, and Chief Hill did say that it was investigated with the formula and everything, and it was over. So they started issuing, what's it called, public service, not necessarily writing a ticket, but a warning, and then issuing community service.
They started issuing community service, and also it's just that area, like she said, that place is just, people are just speeding through there. But Chief Hill did mention correcting that with the community service and writing more warnings in that area. Thank you, sir. Representative Lightingman. Is that a state highway that goes through there? Yes, sir. Yes.
Representative Jack Ladyman
Unverified
2:28:55
I'm sorry to say you put a speed bump out there, but you can't do that on a state highway.
No, that's Highway 77. But you have a very good point. Give a warning ticket and do something other than monetary. That might help you. Yes,
Representative Cameron Cooper
Unverified
2:29:13
sir. Does the committee have any further questions? If not, then without objection, we will file this report. Thank you both for being here today. I appreciate it. With permission
Speaker 188
2:29:27
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
Tammy Wisenhunt
Unverified
2:29:40
from the city of Falk? We're going to skip over to page 38. This is a report with a repeat finding of the city of Falk 2023 under the mayor. An annual audit or agreed upon procedures report has not been completed for the City of Water and Sewer system since 2014, as required by Arkansas code.
The city signed an engagement letter as of December 6, 2023 for 22, 21 and 20. 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 have been issued in the previous five reports. Also under the mayor, the street fund disbursements exceeded budget appropriation about $40,000 in non-compliance of code. This is a repeat finding. We have Mayor Terry Purvis here to answer questions.
Representative Cameron Cooper
Unverified
2:30:38
Mayor, if you'll identify yourself
for the record, and if you
Terry Purvis
Unverified
2:30:44
have a statement for us, you can go ahead with that. My name is Terry Purvis, I'm mayor, CDF. Under the audit findings, we were originally going to do the audits and get caught up with an auditing firm in Magnolia. We agreed on a price which was almost unsustainable at $14,000 a year.
but that's, and my research and calling and 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, we got Centerpoint accounting firm software and RVS in our billing system. The auditor said, you know, We're going to look at these records first before we can give you a price.
We agreed on $14,000. He said, no, that's not the way it works. We're going to have to look at the records before we can agree on a price. Well, I bulked at that. I'm not going to 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 wouldn't give me a ground price. He said, we're going to have to look at this first, and I bulked.
We kept researching and researching. Finally, we found, and I have here documents, that the audits are being done from Enbridge and Scoggins, LLP in El Dorado, Arkansas, for $5,000 a year. We're jumping up and down, we're saving at least $9,000 a year over what we had found before what 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 price before we gave them the documents. I have here in my possession I 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.
which he's got written in this engagement letter. We, he called, and I think the date was the 27th or 28th of June. My administrative assistant handled it where he wanted to look at the financials that we have, you know, in our accounting firm 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, that's sustainable, and we're gonna get it done. Thank you mayor. Do
Speaker 314
2:34:31
we have any questions for the mayor? Can I make a statement?
Speaker 332
2:34:35
Sure, Mr. Archibald. Mayor, if you were paying attention earlier in this meeting, there was a motion made and approved that
Speaker 7
2:34:43
your turn back will start being withheld Monday. Yes, sir. I just want you to be aware of that because you're on the list, you're being 20 dotted, you're on the list that you're 30 months in arrear, so just want to make sure you understood that. Okay. When I get these sent in, I'll be okay? Yes. When you get 22 and 23 in, or 22 in, they
Tammy Wisenhunt
Unverified
2:35:05
will then, if you do it in 12 months, they'll release your term back to you.
If it's more than that, you'll lose it permanently. And then when you get it back up to speed, they'll start
Speaker 124
2:35:17
again if it's after 12 months. Yes, sir. So that
Speaker 389
2:35:19
means I get 22 in first, right? If you can convince the CPA to do that, but that's difficult to do. Well,
Speaker 390
2:35:28
maybe I can push them to do 21, 22, well, just as
Speaker 389
2:35:31
quick as possible. Yes, that'd be the best plan, yes. Yes, sir. Any questions from the committee? Yes, sir.
Representative Jack Ladyman
Unverified
2:35:41
So, sir, you do have someone contracted to do your audit, is that correct? Yes, sir. You do? Yeah. Is it,
Speaker 393
2:35:49
so can you afford the price that they're? Oh, yeah. Okay.
Terry Purvis
Unverified
2:35:54
We've been searching, and gentlemen, please, if I may, and ma'am, my favorite is sitting over here. That's all
Representative Carol Dalby
Unverified
2:36:03
right, Mayor. We've known each other
Terry Purvis
Unverified
2:36:05
a long time. Yes, ma'am. Thank you. But anyway, you know, a small, we're 826 population, very proud people.
We are, if you want to know what a conservative is, look in the dictionary. You'll see my picture for reference, okay? when it comes to the cash. - Well, the question I
Representative Jack Ladyman
Unverified
2:36:27
wanted 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. - Yeah.
Speaker 393
2:36:37
- If your books, are your books in good order? - Oh, yeah, yeah, we don't fear anything, it's just-- - No, I mean, Claire,
Representative Jack Ladyman
Unverified
2:36:45
where they just have to look at the papers. What I'm getting at is you can save money Even if you have a CPA that organizes your papers so that the auditor doesn't have to do a lot of pre-work. I'm just making a suggestion here. Thank you. Again, I used to be a mayor, and I've been in some of these issues. But if your papers are good, then that auditor is going to 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 price.
Terry Purvis
Unverified
2:37:17
Thank you. It's just that, you know, we have called and called and called. It's not like we're putting off these audits. It's not like we fear them. It's that we welcome them. But, you know, we've been getting pricing worth $14,000 to $18,000. I got 300 customers. That is unsustainable. It's unsustainable. I mean, you know, we could sit here and raise water bills, raise water bills, raise water bills. But we finally found a guy, you know, for $5,000, 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 down in what some people call the armpit of Arkansas. I mean, I'm 18 miles from Louisiana and 15 miles from Texas. I'm way down in the corner. And I don't mean it that way, because I love where I live. Ma'am, you know that. I wish there was some more resources out there that could help us find an auditor.
I've asked the legislative auditors in the past, and I respect the fact that they cannot recommend. I'm just saying, give me a list of the people who are
Speaker 397
2:38:42
doing it. Have you talked to Municipal League? They don't recommend neither.
Terry Purvis
Unverified
2:38:49
They won't recommend any auditors. I mean, do you have a list 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 in Texarkana are dropping like flies. They don't, nobody does it. You think a town that big, 40,000, 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, we'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, tag, I'm it, but, and anyway, just as a suggestion, if you could just provide a list of people who are
Representative Jack Ladyman
Unverified
2:39:42
Sir, do you all have a mayor's group down there that meets or anything, other mayors? No, sir. You might talk to other towns. They might have somebody. Have you done that? Other mayors? I've called
Terry Purvis
Unverified
2:39:55
a few mayors down where we're at, yes. Yeah. And some of them are paying the $14,000 to $18,000. I don't know how they're doing it. Yeah. Okay. But anyway, I appreciate you listening to me. Any further questions for the mayor? Mayor, thank you for being here.
Representative Cameron Cooper
Unverified
2:40:13
Appreciate the work that you're doing on this. Well, thank you. There's no objection. We will
Terry Purvis
Unverified
2:40:20
file this report. All right. Thank you, Mayor. Before I leave, may I say something that's kind of not that concerning this? If you could just give me a second. Just a second. Mr. Langean, I hate it that 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. Well, thank you, Chair. I appreciate everything you've done. I appreciate your voting, and I'm not the only one. Everybody in fact, we
Speaker 333
2:41:04
truly thank you for what you've done, sir. i'm with you
Speaker 389
2:41:15
but i made it lean that lane thank you very much all
Representative Cameron Cooper
Unverified
2:41:20
right committee we're going to move on to the city
Speaker 194
2:41:24
of marvel i i thought there is anybody
Speaker 403
2:41:31
Anybody here from City of Marble? There he is,
Speaker 131
2:41:41
here, on page 42. Page 42, City of Marble report with a repeat finding under the mayor.
Tammy Wisenhunt
Unverified
2:41:48
Street fund expenditures exceeded budget appropriations for 2022 by $26,000 in non-compliance of the code. Also, general fund expenditures exceeded budgeted appropriations in '21 by $228,000. This is a repeat finding. Under the district court clerk, the balance remaining in the bank account was not properly identified with receipt numbers 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.
I believe we have Mayor Shelton Lee Guest
Speaker 405
2:42:22
here to ask questions. Yes, I'm Mayor Shelton Lee Guest, Jr. As
Speaker 406
2:42:26
far as the receipts go for the bonds and fines, that has been rectified, and 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 system, so that has been corrected.
The street fund, that was an oversight on my part. 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 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 here on, it will be rectified. Moving on to the $228,000, I don't know what the hiccup was.
My understanding that 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 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 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?
Representative Cameron Cooper
Unverified
2:44:36
Mayor, we appreciate you being here and giving us this report and explaining
Speaker 405
2:44:41
these findings. Appreciate your work on this. Thank you. There's no, I don't want to take anybody else's time. Without objection, we will file this report. Thank
Tammy Wisenhunt
Unverified
2:44:52
you, Mayor. Thank you. Back on page 30, under referred to prosecutor attorney and AG's office, we have the city of McRae, 2023, under the recorder treasure. The payroll preparer overpaid herself $1,500 performing duties as recorder treasure and as water clerk.
It appeared the overpayment resulted from inconsistencies in the way that she was paid in a calculation area regarding hourly rate of pay. Subsequently, the council accepted the repayment plan and recouped the overpayment. This finding has been referred to the prosecutor attorney in AG's office. If there are no questions from the committee, we recommend we file this report. Any questions from the committee? Without objection, we'll file this report. Continuing on page 31, we refer to the PA and AG, the City of Monticello, 2023, under the Mayor.
The City paid utilities for and housed a non-profit 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 12, Section 5. This finding has been referred to the Prosecuting Attorney and AG's office without questions from the staff. We recommend we file this report. any
Speaker 188
2:46:05
questions from the committee without objection we'll file
Speaker 131
2:46:10
this report page 32 through 33 we have the town of pleasant plains 2023
Tammy Wisenhunt
Unverified
2:46:15
and 2022 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 the 500 citations printed and logged by the department from April 6th of 23 through July 2nd of 24 and noted the following. 99 citations were not traced to the court docket in noncomplianceful code. 71 citations 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 non-compliance of code. 28 citations were not collected or adjudicated. One defendant paid $630 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 non-compliance of code. Completed citation books were not filed with court clerk. All copies were not maintained
for two voided citations and all copies of one citation collected were removed from the citation book for 250 of the citations inventory above citation numbers on the printer's certificate did not agree with the citation numbers on the log or the citation book review under the mayor and recorder treasure the recorder treasure was paid 800 for attending council council meetings, $100 per meeting in '23 without proper authorization. This amount included three payments in August of '23 without, however,
Speaker 316
2:47:58
meeting minutes indicated only one council meeting was held. These findings have
Tammy Wisenhunt
Unverified
2:48:06
been referred to the prosecutor and turned into AG's office without questions from the committee. We recommend we file this report. any
Representative Cameron Cooper
Unverified
2:48:18
questions from the committee without objection will follow
Tammy Wisenhunt
Unverified
2:48:23
this report pages 34 through 35 continuing was referred to the PA and AG's office of the city of Tonnytown 24 and 23 under the mayor on August 4th of 22 the city entered into
a contract with a vendor for IT support services in addition to monthly payments the vendor between september 24 january 25 the city paid almost 28 000 to an individual who was apparently employed by the vendor for equivalent i.t support services city 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 being reimbursed. On July 11th of 23, the city disbursed over $15,000 in legal fees, apparently on behalf of a citizens group opposing the expansion of a local landfill. A member of the citizens group reimbursed the city in full on November 8th of 24. The city disbursed funds totaling $3,500 to the University of Arkansas Foundation without a contract for services in apparent conflict of Article 12, Section 5.
The city paid $6,800, $3,400 each year to an employee for cleaning services without an authorizing ordinance in apparent conflict with Arkansas code. These findings have been referred to the prosecuting attorney in the AG's office. We recommend him to file this report unless it's questions
Representative Cameron Cooper
Unverified
2:50:00
from the committee. Any questions from the committee? objection. We'll
Tammy Wisenhunt
Unverified
2:50:10
file this report. On page 35, the town of Waldenburg, 2024, under the mayor and
police chief. On June 25th of 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 $9,000 to the town during 24, which included $633 in interest,
with a balance of $5,800 due in 25. As of April 16th of 25, the chief had paid $2,400, leaving $3,400 due to the town. This arrangement is a parent conflict of the public purpose doctrine in Arkansas Constitution, Article 12, Section 5. In addition, the sale of the vehicle was not in compliance with the Arkansas Code. This finding has been referred to the prosecuting attorney in the Attorney General's office. If there's no questions from the committee, we recommend we file this report.
Speaker 131
2:51:15
Without objection, we'll file this report. Continuing on page 35, the Union County
Tammy Wisenhunt
Unverified
2:51:25
2023 under the Circuit Clerk. In June of 23, three circuit court orders authorized the Circuit Clerk, who was appointed as receiver by law to issue payments to an individual for interest in oil and gas royalties. However, the clerk's payment included the interest of all defendants in the case, rather than the individual only, resulting in the overpayment of approximately $666,000.
This finding has been referred to the prosecuting attorney in the AG's office. Without questions
Representative Cameron Cooper
Unverified
2:51:55
from the committee, we'll file this report. Any questions on this
Speaker 131
2:52:03
report? Without objection, we'll file it. Continuing on pages 36 through 37, Van Buren County Water
Tammy Wisenhunt
Unverified
2:52:12
Association. This is a private report prepared by a CPA. I was unable to locate receipts for cash payments, so
I was unable to agree the cash check composition for deposits with receipt information. Vacation policy states that an employee may only carry over 40 hours of unused leave each year. However, the office manager carried over all her unused leave that she had paid herself for during the pay period. As a result, she carried over too much leave each year from 18 through 22. The vacation policy states that an employee earns leave monthly after 10 days in the month.
When the office manager retired in October of 23, she paid herself for all her calculated unused leave plus the 20 days she began earning in September of 23. For the policy, she could only have earned one twelfth of the 20 days of the month of October. As a result of carrying over more than 40 hours leave per year, paying unused vacation pay in excess of what was earned in October of 23,
she overpaid herself 41.33 days for a total of $7,500. I was unable to validate if the office manager was ever out of the office from 2018 through October 31st of 23. Based on the payments of unused 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. The vacation days paid to the office manager totaled almost $24,000.
The 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 an overpayment of $4,400. I found a schedule of employee pay rates that was prepared in 2023 documenting the rates. However, employees got a 3.5% pay increase each year.
I recommend any employee pay increase to be documented in the board 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 employee's pay rate be documented in the board minutes. The office manager was paid $35 a month to attend board meetings. These payments were not included on her taxable wages. These findings have been reported to the prosecuting attorney in the AG's office.
The Arnold question from committee staff recommends we file this report.
Representative Cameron Cooper
Unverified
2:55:02
Any questions from the committee? Without objection,
Speaker 188
2:55:08
we'll file this report. Okay, we have six reports with repeat findings, starting on
Tammy Wisenhunt
Unverified
2:55:14
page 37. The City of Harrison, the district court clerk, Sandy Wright, was invited here today, and she called and had a conflict today and Request that we defer till September. Without objection,
Speaker 131
2:55:26
we'll defer this report on the city of Harrison.
We've already covered Falk, so we're going to move on to the city of Joyner, 2023.
Tammy Wisenhunt
Unverified
2:55:34
The recorder treasurer was invited here today and I have not heard from her, so we'd recommend we defer this
Representative Cameron Cooper
Unverified
2:55:44
report. Without objection, we'll defer this report
Tammy Wisenhunt
Unverified
2:55:47
on the city of Joyner. City of Lakeview, the Mayor Darian Davis and Recorder Treasurer Cheryl Carroll were invited today. Both call indicated they could not come. We recommend we defer this report. Without objection, we'll refer this report on the City of Lakeview.
When earlier today when we filed the City of Weldon 23, we were like a month behind them doing the 24, so they really didn't have a chance. So could we file that report as well under the same circumstances? Any
Representative Cameron Cooper
Unverified
2:56:19
questions on this? That objection, we'll file this report.
Tammy Wisenhunt
Unverified
2:56:25
We've taken care of Marvel. On page 43, we have three reports with findings. These are private reports, the Yorktown Water Association Incorporated,
Compton Water Association, and Humnock Water Association. We have not received responses for these three, and that's why they have findings. Staff recommends we defer these until much time we have a response. Without objection, we'll
Speaker 131
2:56:49
defer these three reports. On pages 44 through 62, we now have 56 reports to resolve
Tammy Wisenhunt
Unverified
2:56:59
findings. Now that we've already 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. Does
Representative Cameron Cooper
Unverified
2:57:26
the committee see anything they want to ask questions on, on these reports?
Speaker 246
2:57:38
I'll give you just a minute longer to look
Speaker 10
2:58:06
through those. And these are all first time? Yes, they're either first time offense or yes, that'd be with good responses.
Representative Cameron Cooper
Unverified
2:58:11
Yes, so no repeats in there. Without objection, we will file these reports. On pages 63 through 68, we have 184 reports without finding. Staff recommends we file these findings, file these reports. Without objection, we will file these reports. We're done, sir. All right.
The next meeting of the Legislative Joint Auditing Committee will be held on September 11th. Anybody, any committee members have any final things
to say? Appreciate 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
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 175
Speaker 183
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 332
Speaker 331
Speaker 335
Speaker 327
Speaker 46
Speaker 258
Speaker 112
Speaker 348
Speaker 350
Representative Nicole Clowney
Unverified
Speaker 20
Speaker 357
Speaker 359
Representative Justin Gonzales
Unverified
Speaker 367
Speaker 362
Speaker 174
Speaker 61
Speaker 302
Speaker 383
Terry Purvis
Unverified
Speaker 314
Speaker 124
Speaker 389
Speaker 390
Speaker 393
Speaker 397
Speaker 333
Speaker 194
Speaker 403
Speaker 195
Speaker 405
Speaker 406
Speaker 316
Speaker 246