Legislative Joint Auditing-State Agencies

Madam chairwoman do you have any comments where you started okay three we'll start with agenda item be adoption of minutes of the October eighth twenty twenty meeting do I see a motion. At a motion we have a second I have a second I'll Thursday I any oppose okay moving on we're going to review a report thing first we have one with no finding a yes thank you Mr chairman they were presenting thirteen reports that have findings into these were deferred from October twenty meeting and we also have twenty seven reports as you mention without findings in these FAAP listed in the audit summer beginning on page one alright I will entertain a motion to file their reports with no findings we have a motion we have a second I have a second I'll favor say aye opposed are those of filed moving on to the first report with the findings okay our first report Mr chairman of the department higher education June thirty nineteen report which contained one repeat finding. This report was deferred from October twenty twenty meeting. The eighty oversee several state funded student loan programs student to receive the loans may be eligible to have the loans forgiven if they meet certain criteria instance not meeting the criteria are placed in repayment status. The eighty required to maintain student loan subsidiary ledgers to track change the loan balances throughout the year. The subsidy later then used to just loans stable and asus during the fiscal year end closing process. Are you thirty one active student loan files revealed for instance is telling over one hundred forty thousand dollars for which it was unclear if collection should have been pursued or if forgiveness was wanted due to insufficient documentation. Therefore insist telling over thirty five thousand dollars in which the documentation provided did not match the subsidiary ledgers resulting in understated receivables balance. With one inches of loan forgiveness telling over twenty two thousand that we were unable to recalculate due to insufficient documentation. Are you a thirty two inactive student loan falls revealed for instance telling thirty six thousand it should have been placed in the repayment status and proceed for collection as a result of recipients not being alone requirements. Three instances telling over ten thousand dollars in which the docking tech FOR by did not match the subsidiary ledgers resulting in overstated receivables balance and three Ince's telling forty five hundred dollars of understated student loan balance that were placed in a repayment status. Mr that includes a fine for department areas the time it can we can we have the represent is from department education because it looks like you have how many people only have two people so your should be able fill upon. If you can which sit down please state your full name and title for the record and then we'll take any statement you may have. Thank you Mr chair Maria Markham director of the Arkansas division of higher education. Nick fuller assistant director for finance for the division of higher education do you have any comments on these findings. We concur with the findings. The statement okay I think last time to resolve the furthest Senator Hickey had some questions about. I think this happened before or why doesn't mean fix some trying to paraphrase reset awfully from a month ago he's not here today he sent me a text message okay you can answer that was brought concerns before we move on. This has been an ongoing for multiple years issue with the documentation with from our financial aid department this has been lacking in the in the past on those older loan programs we are looking at trying to get a lot of those loans that are from all scholarship programs that are no longer active there are eight or nine years where we didn't even see collection on a lot of those were looking to is to send those for abatement but the biggest issue we've had is with our loan servicing provider. And we. Date the provider for was formerly campus partners and they got bought out by new provider and we anticipated that this would help bring us back into the to compliance with the the record keeping and it has not the way they've kind of dropped even worse than what our former provider was so we're currently looking at probably building out to get a better loan service provider. To replace that to help reconcile these issues. What's your time line on that you got a general time on when this will be doing. No Sir we don't. Before the end of this fiscal year so that we can. Sir getting this wrapped up and not have those findings going forward okay any questions committee. Seeing none are entertain a motion to file this report a motion we have a second I have a second I was there see I. Any opposed thank you this reports Bob Johnson with coming. Next on. Thank you Mr chair next report to the department transportation two thirty nineteen report which can also contained one finding this report was also differed from October twenty meeting. The eighty reported that an employee falsified travel reimbursement telling almost nine thousand dollars from November two thousand eighteen through January twenty twenty. This individual resigned from employment on February fourth of this year in the AC with held his final lump sum annually payment of over thirty three hundred dollars Leding almost fifty five hundred to the agency on July thirteenth the age he received a reimbursement twenty five hundred dollars from the employee and entered into an agreement for repayment of the remaining three thousand. The eighty agree not to pursue a criminal or civil case against individual it the ballot DO is repaid by July first of next year. This report been referred to the prosecuting attorney. And at the October meeting there were couple questions that the committee asked us to look into the first was where the AC could legally enter into an agreement not to pursue a criminal or civil case against individual the short answer is that the prosecutor can still choose to prosecute even with the existence of this agreement. The second question was whether there was anything in Arkansas code to prevent the re hire an employee who has committed fraud and they're already code sections that contained language of this type already that clued fine Mr. Thank you John good good idea gentleman in fact from now on it for reading your report and the other people moved on you can go and move up make yourself save time please take your name and title for the report for the record please. Patrick Patton the chief fiscal officer for a. My name is mark you meet our staff attorney for are not. Thirty I've any statements for you start on questions. Yes Sir. All right I think Tom answers on these question by no represent love had that specific question so whenever you have an employee with our daughter another agency whose acted in such a way where they're doing money in this fashion. What. Is it common for you to enter those kind agreements for you won't purpose go for charges civil or otherwise as long as you have an agreement with the people I think that's what the main crux of the issue was from last time. Yes Sir what is generally would I have I this is the first agreement I have that that that's ever happened to me I think the problem with this person is that he was going to flee he will not flee settings moving out of state and that time we we thought there was no way we can recover the money if you were to flee up leave the state even the prosecutor to make charges I I don't imagine prosecutor the crossing state lines with the to the rest Mr the employee so as a we try to the in and try to an agreement that we could recover as much money as we could from from from the employee. is there any update on the amount of money all governments of the day. I'm sorry ninth either one no matter how he has of this balance is a little less than fourteen a little less than fifteen hundred circuiting ago okay recovered a little over seven thousand I secondarily to the second question we asked do you all have any kind of internal system our database to stop we hire somebody like this there's something A catches person with with your agency moving forward is been the has been put on no we're higher okay so that should pop up automatically be transferred for us yes okay any question committee. Seeing none all entertainer a motion to file this report I have a motion we have a second I was favor say aye all opposed thank German appreciate it thank you all Arkansas beef council I think you're next you can come up to the table. Yes Mister minister the beef council FOR for June thirty twenty twenty is contained one repeat finding. As mentioned in previous reports the AC receive detailed and summer information from DFA related to the collection of beef tax assessments please report the eighty determines how much of the assessment should be retained by the state or passed on to the national beef board in other states. Our testing again revealed that the AC did not adequately compare or reconcile the detail tax assessment reminisced reports with summer data from the FAA such as the gross tax collection for as well as state treasury deposits. As a result the AC pierced of underpaid the national be Ford in other states by approximately three thousand dollars. Additionally in response this finding in the prior year the ACA indicated they would for monthly reconciliation including monitoring the DFA reports and communicating with the FAA however there was no evidence of reconciliation have been performed regularly Mr making place finding items if you can please say your name title for the record Dinesh span in ministry to of the beef council do you have any state before go to questions. Thank you so in your are you see responses age struggling to understand the matter of the F. in a miscellaneous task on reporting month the collections can you explain kind of what what you're struggling with and see for giving a clarification before between the reports that we get from on gross collections reports we get from miscellaneous taxes sometimes those numbers do not match. and so we're trying to figure out whether it's a the variance issue is between is is internal system error or if it's something that isn't from calculations I am I am new to this position it just started in September and so we are just trying to work on a new system of trying to Clarify those numbers each month as they come in. Like for example for this fiscal year were already off by eight dollars and twenty eight cents so I. There's going to be something that we're we're trying to watch that every month so you say you you acknowledge you have the problem which is trying to work out the system to get you to the to remit moved and trying to figure out why states not matching or numbers and and vice versa okay thank you any questions committee. Seeing none I entertain a motion to file this report. I have a motion we have second have cycles there's a I any post this report file thank you ma'am thank you. Drown our next report the Arkansas school for the deaf June thirty nineteen report this the to report it contains two findings. The first funding I review of cap less it's revealed the AC improper Kaplan's warranty cost of two hundred dollars a laptop computer which remain on the asset listing as of June of twenty. Yes he was unable to provide documentation is for the removal of an asset with the cost of two hundred thirty dollars they were also unable to locate your provide documentation for twenty three assets totaling seventeen thousand dollars that we selected for observation. Also five assets totaling ten thousand dollars were not sufficiently marker tech to ensure proper identification. Two stolen assets valued at seventy five hundred dollars were approved in July two thousand eighteen to be removed but we're not delayed until June of twenty twenty. The second finding the Arkansas department inspector general office of internal audit issued a report in January of this year regarding allegation that the agency. These allegation including housing an employee who performed additional duties and services. Thirteen hundred dollars and our faith to employees and about two hundred UNDERPAYMENTS to one employee for mileage reimbursement. Three hundred dollars in an allowable lodging meal reimbursements and it was no dollar value attributed to the housing issue Mr chair this complete suffice for the deaf school thank you okay we still we are in front of us from now on if we have more than two or three people if you pick the I guess the most ports spokesman we can transfer out as needed as ago the hate to say that that way but I guess is for social this is reason can please take your title and name for the record. Rodgers R. education. Janet Dickinson superintendent Arkansas school for the deaf I'm AT semiconductor. Arkansas school for the deaf house standing yeah I have any statement before you start on questions. No okay for your story I'll find a number to explain in more detail what's going on with this person living in housing seems like there's allegation I don't know if that came from internally out whites but can you explain that more details act was going on. I can explain it yes. We here in Arkansas A don't have. A program for people who are majoring in deaf education so how many times we have to recruit from outside of the state. So we've had some internal of abilities to have somebody come in from high to our area in the move and we let him stay like one of the parent apartments for three weeks. And today find their own and home. So the situation that person came and stayed for about three weeks. And they themselves helped in the dorm. So we stopped that. Going forward now and not letting anyone stay on campus in using our facilities that that was been advised as the F. and A. Is that a wall that you think prohibit you from doing that because in theory I have no problem with if that is used in that way in a large dog at some improper benefit I think I'd be a great resource to bring people your specially about a month of school for the blind spot right next door so I understand it these are critical job that you need there do you think that's something we need tweaking legislation or is that what exactly do you think the issue is there. Sir yes that was that was the problem that was a of and personal benefit and so we're we are looking at that that was something that we've had to discontinue practice because it's outside the the class and comp laws for additional benefits yep Tom just show me the Arkansas code if you don't be interested in pursuing a legal fix that to allow people come legally and also done right more I'd be more than happy to entertain after twenty twenty one session come to me and we pride discuss on tweaking that make sure it's not abused. Any thank you yes ma'am any other questions I know represent Richardson have one are you do you take it off okay a no questions committee dollar entertain a motion to file this report. We're motion we have a second all favor say aye opposed thank you all for coming day. No no. Our next for the department of finance and administration June thirty nineteen report this report contains three findings. The first funding on October fourth two thousand nineteen a revenue also employee knowledge an incident that occurred on September thirtieth two thousand nineteen. The employee failed to follow revenue off the procedure when processing a sales tax transaction and disagreements between the customer and employee ensued regarding the total cash provided. The employee credit the customs count one thousand dollars we simply stated was not paid however after the customer left employee updated the customs account in order to stay in balance. If I put police investigated but cannot determine where the employee or the customer was incorrect. Nevertheless the employers put on probation for not following proper revenue off procedures will is not reporting the incident timely. So this incident the same employer was involved in another cash management I was terminated from employment. This finding been referred to the prosecuting attorney. The second finding the department's back to general issued a report dated February sixth of this year detaining multiple instances of noncompliance with Arkansas code. By former deputy director and revenue commissioner. These findings summarize the former deputy director issued instructions to release a clear certificate of title for vehicle without obtaining a formally release from the lien holder as required by Arkansas code. Bottom Floyd multiple employees were aware of the inappropriate transaction execution but not report it DFA management or the ox off Broadway through these line for over two years. He also authorized revenue office age to process six real ID's without obtaining all required documentation although DFA had developed an internal report to monitor exception activity the six exceptions were not included in the report. He also view tax information in various state employee accounts without noting an official business purpose. Based on a review of activity in the Arkansas integrated revving system although the IRS requires at least weekly review and analysis of system audit records a report available in heirs tax system for monitoring access to federal taxpayer information and not been assess exist in more than two years. Unless you initiate a service request that was implemented in two thousand sixteen in the driver services motor vehicle system to begin collecting fees on expired tax for years of vehicles not use. Once the vehicle was in use the on will be required to pay all last year's fees. In January of two thousand nineteen the collection the speed with being an appropriate and the process seized how are the system still assesses the fees and if employers was mainly reverse these transactions. In addition the department inspector general issued another four on rely the compliance date July eighth noting additional nine inches of exception with documentation for real ID's. This finding has also been referred to the prosecuting attorney. And the last time for DFA the employee benefits division which was part of the FAA at the time my number's accounting errors at the end of fiscal year two thousand nineteen over a review of transactions in aces and MIP accounting system used by you be the. mistake that extend across multiple funds you can see the air that we noticed in the bill to the finding. This finding was also reported in our special report on the Arkansas state and public school employees health benefits which was presented at our October full list of joint audit committee meeting exclusive fighter DFA. The job if you cancel your name and title for the record. My name is Charlie Collins and on the current commissioner revenue and DFA deputy director. Paul gearing assistant revenue commissioner DFA are you have any state before go to questions yes Sir Mr chairman so for findings one and two there were recommendations that were given to us and the management in the management responses we talked about implementing those recommendations and we have followed through on that and are complying with that. Okay so let's get started funny one so. It seems like the customer said they gave one thousand dollars cash money and the person who took it said they didn't receive it and then there is dispute person change it and came back and then sell like this employee was fired or let go were not returned he's going to look in more detail. Yes Sir and then in an incident it the our employee thought the cheat only received half the money the customer maintain that should receive that she paid at all we had given that customer receipt for all the money and in that same employee had a subsequent incident with cash so she was in a probationary period and with those two incidents that play was let go but as you said it was unclear whether she had actually intended to steal the money given the circumstances of the case. I might be ignorant about how this would work but typically if you will the say were at a retail store at the end of day wouldn't the ledger show you have five or dollars more or less what would prevent shall from looking at that part of it her her been showed that she was one thousand dollars short so we had that just as you described and the money was not there one of the things that we did is a process following this was implement a a process where if it's more than five hundred dollars in cash it's not enough for one person to see in signify the money that but we require second person as well to help avoid this in the future okay moving on the find number two. I just be bluntly gentleman that response that you gave us for this kind of finding is woefully inadequate in short I don't appreciate a two sentence response to multiple findings so as such a bill is in title loans this committee to go three each one first how did multiple employees. Know about a lean being cleared yet not get report you want to expand that a lot more force was it looks like there was some intentional misleading of Arkansas's resources or clearing of a title which is a resource in a way explain that out in a much much greater detail. Yes Sir so the individuals involved essentially feared for their jobs why because the person directing them to do that had the power to fire them. To some I was directing them to mislead in this way and they were scared of being fired so they intentionally so prevent a law all multiple times that we're saying well for this there was one in in number one there was one specific instance where they were directed to release saline which was completely improper and against the law so that that instance of release and only eighteen a couple people were directed to do it. What is the consequences of those people specifically the one person has been directing those other employees to. Not follow the law the person is no longer with the offending that was my predecessor correct. Are moving on to the real ID So it appears me the job to have exemption activities we don't require all the paperwork is that because this is their monitor exemption activities but it sounds like some got through with all the proper paperwork efficiency issue whatever you so Mike potential be handed ID that hasn't shown that they're actually entitled ID by all the proper paperwork is that was going on here it is in in this case Senator it it's similar to the first one from the standpoint of the the lack of proper follow through as that individual it's no longer with us and directing those to happen the same person or different person doing the real ID ones different person but in the same situation where the individual field feared for their job. Is part of what we've done we have made our real ID training more robust one of the things that we did back in January was put together a very specific training plan FOR real ID we expanded the real ID program from twenty five individual S. R. rose to all one hundred and thirty four S. arose we did regional training for all of our S. R. O. employees in the five regions of the state I had not only me but also my leaders of those units come with me to those trainings we made it very clear to everybody that we're going to follow those procedures there were any questions or issues that they could feel free to reach out directly to me they could feel free to reach out directly to H. R. but that the procedures and processes that we had in place are a rigorous and are going to be followed rigorously so because one individual directed people not to have their. Clark documentation six an additional nine instances of ID's being out there in Arkansas that work improperly issued have there's been any recovery activities to make sure those either a coming clocked the lower be your or revoked as licenses to people can't use of yes yes Sir we went back over that list of individuals and the the leader that unit contacted reached out to each individual and their and I'd say about ninety percent of them I have had the proper documentation taken there's about ten percent of them that have either left the state or we've not been able to get back in touch with them or they've had a subsequent idea that what that was done properly. Because this so. In theory because it is one individual they're fake ID's out there that don't that work or improperly issued by the state is that correct statement I'd I would use the word fake ID's but I would use the word that they hadn't been properly documented we believe that we've gotten all the ones that are still in state and we believe that the reason we're not hearing back from people the the one or two that we haven't heard back from is because they're probably out of state we'll continue to monitor that and stay on top of those last two or three alright thank you I think we have a couple questions C. eighty five C. eighty five that is a Senator hammer yes yes Senator hammer you're recognized. Thank you for Charlie of can you tell me what you do as far as educating the staff over there about the whistle blower ACT because the phrase they feared for the jobs it seems like the whistle blower ACT would been Avenue for them to exercise or was that talked about any. Thank you senator we we have updated our DFA manual and in there we talk about a couple different options people have specifically being able to reach out to different leadership and D. F. and A and also the hotline so you know I'm an answer the question yes we're continuing to do that training materials and that's one of multiple pieces are thank you Mr. We have a seat sixty seven C. sixty seven of the Speaker shepherd. Thank you Mr chairman of the street Collins with regard to item three this is the there was the viewing of tax information of state employees without noting an official business record or not without noting official business purpose. Can you tell me the well I can let me back up so we what it appears is that if if an individual at the F. and A is going to access a state employees tax record. It number one it has to be for a bit an official business purpose but there's some kind of record capped of that inquiry is that correct. Yes Sir the system we caught the air system that's our tax system keeps a record of anybody that looks in the system the the specific finding here again deals with that same individual related to that though in the finding is the fact that there are some reports in errors that that we were not using on a regular basis I have a person in the income tax shop who is now doing that so this is a copy of the procedures that she's using to make sure that we're following that weekly. This. Is the documentation that we are in fact checking that weekly as was recommended in this next step if I might have a follow up yes Sir thank you Mr chairman. It appears from this from this particular item that the report is. Required to the IRS and so my question is does this only concern increase end of federal taxes for if and if an employee was making an inquiry and looking at at only state the tax information is that still required to be reported it and if not does the state have some type of reporting system separate apart from what the IRS requires in order to monitor what activities taking place. Mr Speaker this refers specifically to the federal tax information Paul could you. Sure more broadly and how it applies to the state info is certainly Mr Speaker for purposes of accessing the state and only tax information within the air system Arkansas also has its own confidentiality provisions in the tax procedure act the air system does in fact log not just access is to F. T. I. federal tax information but any tax record A that is state only tax record in addition to that the or system also logs any access to the driver services or motor vehicle system that contains confidential information for driver record your motor vehicle records and are are all of those systems in report's being looked at at this point to make sure that That the if in that all the upon a employees are being compliant with that and also some that not every DFA employees can access tax records it yet the answer to both questions is yes Mr Speaker yes that the look in the taxes would cover any kind of taxes and you are correct not every employee is authorized to look in that system. Thank you Mr thank you a. Think we have Senator hammer you're recognized. Thank you on the follow up on that did any on authorized personnel look at the tax records upon your review the situation. We've not identified any beyond the one that was identified in this finding. Okay. Any disciplinary action that took place on that or did you mention that will go on I just in here yes Sir that individuals no longer with the F. and A and then on the whistle blower matter again did you inquire of the employees that were being directed why they did not exercise to whistle blower ACT because it's been around for well did you have to inquire of them why they didn't exercises. The feedback I got senator is I talked to individuals is it is is a concern that somehow some way somebody is going to be able to find out what they're doing there were concerns that the cameras that are in our buildings for security listening devices computer monitoring and and and other of those types of surveillance were being used to track a certain individuals behavior by the individual that's no longer with us so they did not feel there was anything they could do that would not be found out by that individual. And you feel that the employees now been relieved of those fears that they could exercise the whistle blower ACT yes yes Sir one of the things that I did when I took over the role was instituted along with our chief counsel and others a new camera policy that where the locations of the cameras would be and how they would be approved so that cameras could not be put in positions that would in influence in any individual at the F. an ace private space alright thank you thank you Mr. Represent region recognized thank you Mr chairman done real quick the individual who is no longer there is there any do we have any chance of criminal like to amend it can charges be brought on this individual for some of this behavior that is in here I mean looking inside of taxes all under his watch in. Any of those things. Thank you Representative of course a this matter was handled by the DFA ministration a determination was made as to an outcome if if there were a sufficient cause for the matter to be referred to the prosecuting attorney for Pulaski County we certainly would have done so thank you. Thank you following up on that. I like to put a bow on this right now named individual who's response for this in the form of title with D. F. and I. Walter anger is the person's name that title was commissioner revenue and deputy director DFA okay and while the if an A. has own internal referred to the prosecution a Tory we also do it once is report is filed as you see on top or referred these findings to the prosecutor and they'll make a determination where they want to press criminal charges you more questions in committee. Seeing none I entertain a motion filed this report. A motion we have a second all those favor say aye. Imposed this report is filed thank general. Our next thank you committee. Our next report today's the department of health the G. thirty nineteen report this report contains one repeat finding. In a follow up to our prior you're finding we review travel reimbursement for for for for computer in technical support Chloe's this review revealed that two employees were always reimburse miles between the destination and their official station even when the residents with closer to the destination and even when they left from and returned to the residents state travel regulations require that the shorter distance be claimed Mr that includes funding for the part health thank you. If you can please say your name and title for the record. Close it jealousy by senator mental or mineral secretary of health director of health department. Good morning I'm Joe Thompson chief financial officer for the office Arkansas department health okay either you have state before you start a we have a reviewed the efficiency and have implemented several measures to remedy the situation I am aware of it and have been following the the actions taken thank you any questions committee. The center and I entertain a motion I have a motion we have a second all this favor say aye opposed say no all right this fall thank you for coming I know you've got a lot on your plate and we're happy to join your quickly thank you thank you Mr chairman. Thank you. Our next for the department of Human Services G. thirty nineteen for this report contains ten findings first finding what performing an observation of a sample of sixty equipment items we noted to items cannot be locate for observation twelve items had no identifying seal number recorded aces and forty one items were not considered to be currently inventoried the latest inventory dates noted aces range from two to five years ago. The second finding the AC allows its ACC the use of P. card when making purchases of both incidental and gift in the quest top expenditures. Balance of the P. card statement originally paid from the agencies treasury fund and then each month the treasury funds reimbursed by check from the applicable incidental and or the guessing bequest bank accounts. Our testing of the Jones were ACC bank account expenditures a bill in that reimbursement air of over two thousand dollars paid from the incidental bank account for business for guests and bequest the card expenditures. The fiscal year twenty the AT reimburse incidental bank account for this air. The third finding the state financial management guide states that asus bounces must be reconciled to the bank account statements monthly. During our review of thirty bank accounts at the central office and surrounding county offices we noted twenty five bank accounts having multiple instances in which bank reconciliations were performed for much or more after the bank statement date. An additional twelve bank accounts had multiple instances in which no monthly bank regulations were performed. The fourth finding during our review of the asus foster care trust bank account we we noted a hundred and thirty five thousand dollars in Arkansas able investments for made and none of the investment bounce interest earned reported aces. The fifth finding during our review the asus various petty cash and change funds the following exceptions were noted. The AC failed to report an ace is the five hundred dollar incidental petty cash fund for the Conway ACC and the five hundred dollar incidental petty cash fund for the Arkadelphia HTC. The ACS deficit to hunt or change fund for the blue umbrella retail store prior to attending proper approval from the FAA additionally this change fund impressed bounce was not reported aces. The eighty also continues to report an ace is the Arkansas state hospitals maintenance petty cash fund and its remaining cash on hand balance instead of its original impressed amount of seven hundred fifty dollars. Additionally the issues on where the fund about had a current over just seventeen dollars due to over replenishment as a result of the AC performing an accurate cast counts of the fund. Six finding under the age Arkansas health insurance premium payment or hit program the eighty may pay health insurance premiums for Medicaid eligible individuals at such times for dean cost effective. The eighty contracts with health management system to administer projects on behalf the AC which includes outreach programs to identify in a row recipients into the hit program. Health management systems is a signer on the hit bank account and therefore is involved in the process you can check payments as well as involved in direct corresponds with the bank. During our review of the hit bank account we noted to fraudulent checks totaling six thousand dollars clear the account during January two thousand nineteen. Health management systems notify the AC of the fraudulent checks in April of that year and upon contacting the attorney general's office for guns the age he was instructed to file a police report however no police report could be filed due to bank of America's refusal to provide relevant information surrounding the clearing of the checks. The eighty do not report this incident us. The bank says will be refunded one check for three thousand dollars and as of June fifth the remaining three thousand dollar check had not been refunded. We also noted the following recording heirs of hit bank activity posted aces the fiscal year twenty deposit of almost three hundred thousand dollars a record as a fiscal year nineteen deposit. A hundred ninety three thousand dollars and stop payments of previously record checks were not adjusted. Ten fifty eight thousand dollars and checked for record twice this finding is been referred to the prosecuting attorney. The seventh finding during our review of charter license received under the under the division of child care and early childhood education we noted the following of twenty five receipts tested seven receipts cannot be traced to deposit into the state treasury also the check out failed to provide an adequate document audit trail concerning the movement of checks received other state agencies and or to other divisions within the agency. One maltreatment registry check could not be verified that was returned to the pay the. The eight finding the AC notify us notified us in December of two thousand nineteen of overpayment on the following two contracts. Central Arkansas development council a provider day treatment transportation services was over paid almost two and a half million dollars prior to obtaining an over an approved amendment increase. Clash topical producer of eyeglass lenses for Medicaid clients was overpaid two point four million through December of nineteen prior to attending an approved amendment increase. Payment for the to contract FOR process in the aces MMI S. system and not an asus. The eighty stated that these overpayments occur due to a breakdown of communication between the program division and finance staff. As a result of the to contract over payments we performed a review of twelve contracts paid within in my S. including these two there were active during fiscal year nineteen. The original amount awarded for all twelve contracts who start eight beginning county years two thousand thirteen fourteen seventeen and nineteen told over seven hundred sixty two million dollars. During this review we noted one additional contract was overspent by four hundred thirty one thousand dollars and a proper fiscal year proctor attaining an approved amendment increase. We also performed a review of twenty six professional service contracts paid in asus and noted one contract with initial award amount of nine point two million was overpaid by almost a million dollars before being amended. The not finding during our review of sixty one fuel card purchases telling twenty seven hundred dollars we noted the following one fraudulent charge of fifty seven dollars was paid in the eighty failed to provide documentation of disputing the charge amount. To charge telling forty three dollars for considered questionable. The charges were not listed on the political vehicle log normal supporting invoice documentation provided. One charge of thirty three dollars listed on the applicable applicable vehicle log however the AC fail to maintain supporting invoice documentation. They also feel the populace gas charge may for the month and one cars vehicle log. And they were also unable to brush supporting documentation and a political vehicle log for eighteen items totaling six hundred dollars. And the last finding executive order ninety eight oh four cars contract and grants close certification form to be completed by potential Ortiz the service is twenty five thousand dollars a greater for purpose of disclosing related in the related individuals who are current. OR former employees of the state your review the eighties fender addresses we discover two instances which a vendors address match the address of the age the employee specifically the AC fell to request the required disclosure certification form from a vendor that was paid a one time payment twenty seven thousand dollars. The employee related to the vendor has been employed with the AC since April two thousand fourteen. The eighty obtain the disclosure certification form for the other vendor but the vendor failed to properly disclose any relationship with a state employee. As of our report date contracted been amended six times for the yearly allowed extension and with the six with AT extension the submitted disclosure certification form failed to list any relationship with a state employee. The vendor been paid almost five hundred and seventy four thousand dollars from contract start date through June of this year for non IT related services the employer related to the vendor has been employed with the AC since February two thousand nine. Sure the conclusion financial DHS thank you can please say your name and title for the record. Syndicalists the secretary of the department of Human Services. Britt Hayes chief of security in compliance for the department of Human Services. And mark why chief of staff and chief of legislative an internal affairs for DHS thank you have a basically a basketball team behind you if you need it for something he did first question I think Senator hammer has a question to answer. Thank you Mr Cujo just explain about the The overpayments and how you resolve the. Think of finding a. Yes senator so that there were two issues with the over payments one had to deal with contracts are paid through our in in by a system which is the system we used to pay Medicaid claims. this is these contracts are paid a little bit different since they're not paid through aces there's a control the templates and asus that should prevent you from over paying on a contract obviously those controls are not pleasant and unbiased because the system is not designed to do that we overpaid on these contracts because we do not have the adequate controls in place to monitor the payments on that contract to ensure that we didn't go over the purchase for on those contracts we have since implemented controls to monitor those contracts that are paid through the in in my system legislative audit also noted a contract that was overpaid that is are paid to the asus system what happened in that instance is that the purchase order for those contracts were set up correctly an error was made. After the initial set up of the purchase order which change the. That the amount in asus that Is associate with the control that prevents us from over paying on the contract so that control amount went up. And. Wall. Well that controls in place because it because we made a mistake it allowed us to pay more than was on the original purchase order. The. The date the Dave notify me to two point. Was the total cost of the contract you member. Of the contract with pay through asus. Of the of the one that involved paint two point four six five million additional above the contract over payment. Central Arkansas development council. Neck. That contract. If you would like talk we're gonna have director stem. And what should come in the region wondered is because did they make any effort to say to you guys Hey good more money what we're supposed to be getting here. The They can speak to this but this so the. A we're kind of clear but the complexity of those unique there's about five five of them that work that way they're Medicaid contracts. A and as you know with Medicaid you're paying on a service basis so but it's it's not like It's not one of our traditional Medicaid contracts for we have a. We are hiring an IT company and we're paying the IT company the following and we're paying according scope of work these are we're we're actually through contract providing Medicaid services and so your billing on a fee for service which as you know with MMI F. there's no limit on what gets paid if a doctor bills you you pay the doctor as long as it's an eligible expense these are unique hybrids of that exist in certain areas this being one of them which will talk about so the It's a situation where technically under Medicaid you've got to pay it but we should have gone back and increased the authorization we should you know so pawn we brought this to the legislature to increase that contract amount we should have done that before it got to that level. If that useful but I'm gonna let them explain this one. Give your name. Melissa is down division director for developmental disability services and last Tommy Tarpley to come to the table he is my deputy director and and was my former CFO so he's very familiar with this Senator hammer this is one of those three contracts that we put in place for transportation to and from early intervention day treatment clinics and adult developmental day treatment clinics so that we have three contracts this is one of them and we have one with triple a and without these trans and they're all pay the same rate but they all had projections on them of what we thought they would spend based on their membership in their regions and so those were initial projections we put on the contacts amounts and secretary Glaspie is correct there was a disconnect since a contract total control like you can put an asus can't be entered into and then my **** and then direct bill through a series of and paper almost and logs and data that day and sand three and then I asked to be paid for the rights that they've completed so we have a very robust system in place now that requires I would think six different signatures that timing is one and my CFO is one that reviews those in looks that goes back every time a payment comes then and make sure that the contracts not being exceeded and so we did not anticipate that this will occur on these particular contract again. Okay and then on the other. On the review by legislative audit of the twelve contracts over period from two thousand thirteen to two thousand nineteen total seven hundred sixty two million can you can you talk about that for a second. centers is that in regards to the this time funding the the additional counters and they looked at a I think it is a maybe staff needs to help explain to me but I'm just the it seems like when they found the one they went back and did a review of the twelve contractors. And that seven her six two million dollars number was that a total amount of overpayment such all had to gesture budget for or what what was that number represent over that stretch of time that was the original contract value for those contracts that does not know was not over payment that was just the original value combined of all those contracts. Years over seven years okay and what was the total amount what were of those twelve context reviewed the total over payments is represented in the two point five million. that two separate issues. It would be the two point two point five million four central so the bill the council and then also the amount for classical optical I believe be the two that would be covered there there was one more there was one four four hundred thirty one thousand three or sixty eight dollars and that was palco. Okay so that's the total dollar amount of over payments represented in those contracts from city of seven hundred sixty two million that might. Is that accurate. Yes okay are if I could just add when when we realized the disconnect in what was going on. We did internally determine all the contract that would fit into this unique hybrid category and then conduct their own internal review to see whether or not any of them either were overspending or could be close to over spending put in place are new procedures and came forward to the legislature to a reset the limits on those contracts so that we would not have those problems okay my last question is back to what I just wanna go did any of them approach you though and say Hey we think we have exceeded our limit or would they be even known that they were exceeding their limits they would not as we've known that I believe because from their standpoint they're billing is for services and a bone on a just court in the contract I don't know that this really would note realized that we had exceeded the legislative authorized amount on the contract okay thank you thank Mister thank you. On the phone number six every time I see that fraudulent ported kinda raises my eyebrow can you explain in more detail with this so my intentional given for all in check just explain what exactly that means. Funny number six should be on page thirteen of twenty three can. Yes so. The the way the the way this payment process works is so this is for the hit program and is a a noted HM this is our vendor that hand handles a number of things to force with that program one of those is issuing payments to the recipients what happened in this case there was a recipient that was listed that in fact was actually not eligible for the program and the checks were submitted to that recipient in air so we don't believe that the these were actually fraudulent checks but they were improper payments that were made to this person that was not eligible. So that the person apply you given approval as if they were eligible they received the checks but it turned out to be a mistake on your part not the person D. fraud the government's my question yes Sir first of okay Follow up I will go to one more now go to questions on finding number Tina and So is another issue comes up in this a lot looks like there's a conflict of interest between the money this person receiving and having that familiar will are that family relationship with somebody receives a contract work for the agencies. Is this just a disclosure issue where they have an disclosed in their store allowed or is it a conflict of interest were somehow the agency the person at the agency is directing money to a spouse or someone in the family can explain in more detail. I would I defer to DDS on the relationship of. This employee to the vendor. The bill for the restated aim titles week with that we got it so. The question. I am in a hi seven aids are Debbie director Tarpley to respond it was a two part issue on this I think we fail to do a disclosure and there was a second issue. Time at our plea deputy director DDS is the question in regards to my understanding of the finding is one the disclosure form on the first one was not provided and we concur with that finding we should about the disclosure form in their consent at the applicable dollar around at the second one the disclosure form was filed I believe the funding stated that the disclosure we just not made by the vendor I believe our position as we do we do not agree with that finding because we do not see it is our job to verify the accuracy of the disclosure forms just that the disclosure form has been filled out by the vendor that stop that The person who works for the agency has a family family family relationship with a vendor who is receiving taxpayer dollars is there a conflict of interest between those two things I need to be rectified and they did that person who work for the agency intention are the in vendor intentionally not put their relationship in order to not be called in this relationship is I make sense. So a timing content and we didn't see that so the person that did not put the arms the was it his wife down on the disclosure form of the lower level employee at one of our human development centers and that would have absolutely no dealings with the contractor his employment whatsoever so we felt like it was a stretch I mean he didn't disclose that I think we were attacked because there is there and so amendment or is there a section on the disclosure form it says do you have a family person who works for the agency yes and did they skip over there are not filled out they didn't selected as my understanding on a computer screen. Not the paper form paper form okay. Are up Senator hammer thing as question anything on that little bit. Actually. Questions will be for the chair staff. Okay alright go ahead Senator and could you tell me I'm I'm getting the impression I read this that all of these are gonna be referred to the PA because all the findings have that statement up there or could you identify which of the findings are being referred to the PA thanks for. A yes Sir it's not it's not all of them I believe it's just finding six the had the fraudulent checks Senate. Okay so finding six is the only one that's going to the PA I believe that's correct okay and not the one that's under discussion now that's correct okay alright thank you yeah I've seen it before Senator hammer to believe the agency has one they typically filled out for all of them are up A talk to staff seems like what you're saying is true that it was just a low level employee that would have any kind of direct responsibility in directing that money toward person but if you can always pick it up in the future make sure the agency does that be great your question meaty. Seeing none I entertain a motion to file this report I have a motion second all favor say aye opposed thank you I've given. Our next report is a state insurance department G. thirty ninety report and it contains one finding. Revere sitting procedure revealed the public please claims division had forty nine checks totaling thirty five thousand dollars or not receive when received in sixty one check telling two hundred dollars that we're not deposited timely. Additionally the liquidation division fell to receipt to checks totaling over fifteen thousand dollars the conclusion finding Mr. Thank you can you please state your name and title for the record. A merry Davis assistant deputy commissioner insurance for. Russ Galbraith chief deputy insurance commissioner for the state of Arkansas yes statement forget questions yes we have reviewed our internal policies and we have corrected both these issues by moving both departments on to our internal system and we added sorry we added an additional step of monitoring and our accounting division to make sure that this doesn't happen in the future so this is like just like paperwork errors right and counting airs yeah they were excel spreadsheets that they were keeping in those departments and we moved them on to an actual system okay thank you any question meaty. Seeing none I entertain a motion to file this report I have a motion we have a second all in favor say aye in your post this report is filed thank you all so much for coming. Our next report the state land department June thirty nineteen report this report contains three findings the first finding the AC has lease agreements to collect royalties on resources severed from state owned lands. Arkansas code requires a lessees to remit monthly reports and royalty payments for all resources sever the previous month. Our view of twenty five or seizure bill that none of the receipts have been recalculated to ensure the match remitted by the lessee were in compliance with lease agreement. The AC do not deposit twenty three states timely. Reporter fifteen the receipts were not submit monthly in accord with Arkansas code and the AC was unable to locate a copy the related lease agreement for to the receipts. The second finding the AG uses its own accounting information system to record transactions and then transmits the transaction to a sister electronic interface. The eighty reissued four hundred twelve checks totaling over three hundred eighty six thousand dollars most of which were to persons who notify the AC that they had not received the original checks. The AC cannot demonstrate the stop payment or said been issued on all the original checks and we know the net difference of almost seven thousand dollars. Further none of the five monthly bank correct bank statement recreation were we reviewed agreed to asus three of them also had not been performed timely and to have not been reviewed approved by management. The third finding effective internal controls over vendor master files require persons to change these files to obtain management approval before making changes our review of forty changed a vendor match falls rebuild the documentation for twelve changes contain no reason for the change or evidence of approved by management Mr that concludes the fines for the land apartment thank you so much to please say your name and title for the record please. I'm Kelly boy chief deputy commissioner of state lands. Sam's borough fiscal director commission state lands okay good to see again Mr Boardman little bit or question I have is the age he was unable to locate a copy of the release related lease agreements what was that mean exactly. Related the lease agreement I believe was a. Copy release the we do not have the original lease. On file. We renew the lease within that four year period but we did not have the original okay so documentation was there that day. We had to lease agreement just you didn't have the original put on yes documentation for the lease renewal but not the original lease I got to any question committee. Seeing none I entertain a motion to file this report we have a motion we have second all those favor say aye all opposed thank you so much coming next commitment support. Our next for the Arkansas state police June thirty nineteen report which contains one finding. The eighteen notified us of the following best of state property in September two thousand eighteen to Bushmaster rivals a taser and a second chance body armor tactical play were stolen from state vehicles parked the personal residence of three Arkansas state police employees. The tater in the two rivals were suddenly recovered. In August two thousand nineteen the Bushmaster rifle was stolen from a state vehicle parked in employed personal residence this rifle was also roots of we recovered. Also in August two thousand nineteen a laptop computer along with three low by other stolen from state vehicle parked in employees personal residence. In October two thousand nineteen to laptop computers and other incidental Oliver Stone from the asus command post tried or what park in the ground of the Arkansas state fair. The computers were subcommittee recovered. In September two thousand nineteen the AC discover that sees bond were missing from the evidence store to see IT company F. in Jonesborough the total missing was determined to be over thirteen thousand dollars and is associated with three separate cases this is an open an active investigation this report been referred to the prosecuting attorney. Thank you you say your name and title for the river for the record. Thank you Mr chairman bill Bryant director Arkansas state police. In French fiscal officer for the state police. Thank you so are sent to Arkansas state police have weapons on them in their view their vehicles all times part of your job what's typically had used my interest on it. How excess for them all or the accessible or the like on the like where they can easily be seen what what how these weapons kinda get stolen I know also can target a vehicle because more vehicle but can I explain that how that exactly works yes Sir we issue each trooper A. seventy shot gun Remington and also a two two three caliber patrol rifle their tool of racks those in between the C. stand upright between the driver seat in the passenger seat and that's SO peas soaking easily accessible if they need it for in a crisis situation or something like that correct yes for this correct okay and it's hard to kind of secure them any other way you think it just kind of the nature of the job that they be put that way yes Sir and also that is a benefit if the officer does not have a lack of alternates house the children have access to a gun we feel it's more secure if it's in and approved rack and that's what we went to a couple years ago I fair enough just wanna make sure about that see twenty three C. twenty three says senator Chesterfield on and see her an honor to be thank you Sir just Roddy's it is not. Is my evil twin sister. Kevin and reading this these reports I noticed that you have put in place something that makes them a little bit more secure is that an absolute or can that be compromised as well no instance we made those corrections so of the one of the fast from the rack itself they were able to defeat a locking mechanism and we re located that bracket in that in additional bracket as we've made those modifications we have not lost any guns the only issue sometime we have human error in the trooper doesn't have in the gun and lease it maybe like on the seat lane of and FOR border we haven't anymore instances with the gun in the rack well if if the trooper becomes careless with of securing it what steps are taken toward encouraging greater diligence in making sure that this doesn't happen again yes ma'am we have an incident like that we have with our office of professional standards we folly administrative inquired against the trooper complaint is investigated and he could re receive anywhere from a letter of reprimand up to a suspension and we also have the ability to make him pay for the weapon of this lost so have we recover I wasn't sure if we recovered everything that it been stolen I had the feeling we recovered a lot but is all of it recovered by now we we recovered all the farms ma'am and we did and resulting criminal charges people were charged and with the eighty SI for these this on some of them we didn't recover a laptop and some minor items like a a lip this recorder and we did not recover one of the but the place to go on a ballistic vest everything else I believe that we did recover on this this thanks for the money the last yes you have to get that back with the laptops was there information that could be used to compromise the state police system. Not the system itself but they are password protected in some have some modems or different things a plug in that requires be able to get access so but we have not recovered that laptop that was still stolen more than we did recover the two laptops were stolen from the affair fairgrounds and one last question Mr chair is there a particular area where this is happening more often than others is or is it just statewide forces here in central Arkansas the X. input the after the farms is what we see here in this area is where we or the time we lose our farms thank you thank you Mr yes ma'am thank you I think we have a Senator hammer as a question. Thank you Mr chair on item three with the it talks about the serial numbers of the S. P. equipment were entered into a CIC. If that shows up with that that shows up in a pawn shop or the required to check that a CIC to see if it's part of the stone a quick minute I can't remember I believe so or I know law enforcement as access to all upon upon shop records in a lot of your local agency go directly to the pawn shop once a week collect all the tickets and then they run it through a C. I. see NCIC okay and then on the The the theft of money that thirteen thousand six seventy. The standards have been put into place now were those in place prior to in all the other areas were C. ID divisions are or are all the other ones up to equal standards. Basically when this occurred we had standards basically was only supervisory employees that access in this instance it was only three people had access to this money but once we discovered the money was missing the first the amount of money merely ordered a statewide audit of also use funds around the state that's when we discover the two other two items that were missing tradition the state police they kept the money would capita Monon Manila envelope and what we've done now Senator hammer I brought one here. Committee would like to look at it we went to. Sell saline clear plastic evidence envelope so now if any evidence is put into a deal you can see if the other ones were actually a like a Manila envelope and the person who stole the money put newspaper clippings in it to make it like it was still full additionally we work with the prosecuting attorney's association and now we're out of the money keep in business or the money count business basically we vote we work with the F. and A we open procedure council now the state police makes any type of money seizure that money is taken to a bank Amelie counted the deposit it to an account and it is kept that account into the the money is forfeit it and then we turn that over to the prosecutor for equitable distribution okay so. He pretty well now than. The the investigation are you at liberty to talk it's been September sixth last year over year now at liberty talk about that are still ongoing it is still ongoing I think the best way to to put this is the employee that are with the three employees one of a resigned prior to us discover the money that employee was later rested when went to work for another law enforcement agency by the state police and FBI regarding the theft of money seizure so it is still active and ongoing okay thank you Mr. Thank you anymore questions committee seeing none I'll entertain a motion follows forgive a motion second all favor say aye opposed thank you so much calmer thank you for your. Connection for the department of career education June thirty nineteen report which contains one finding. The inter auditor of the off the skills development performed a financial review of a of an electrical apprentice program the review completed on July sixth include review of construction for any funds awarded in reimbursed to the printers program during the period. July first two thousand eighteen through June thirty two thousand nineteen as well as an analysis of the payments sent to the sponsor local education agency and subsequent payment from the alley a to the printers program. This review revealed allowable costs totaling over twelve hundred dollars for the two thousand eighteen nineteen program year and expand a review by the internal audit to reveal additional on allowable costs of almost forty five hundred dollars for the seventeen eighteen program here and almost nineteen hundred for the nineteen twenty program year. The also skill development has instructed the apprentice program to submit a corrective action plan within thirty days along with payment of seventy six hundred dollars to recoup the on allowable cost this report also been referred to the prosecuting attorney the place finding. Thank you can you please take your name and title for the record please. Thank you Mr chair Cody weights director off the skills development formally deputy director department for education. Donna Kirk internal auditor of office skills development thank you you have any state before you start yes please upon finding this of upon the finding be in been uncovered we begin to look at our internal policies and funding guidelines as relates the construction training funds for pre ship as well as our traditional permission money the way that worked in the past was a pretty inefficient process by which the funds were distributed since then we've are we we've made adjustments to how that funding occurs it occurred through a kind of a two way reimbursement process we've now we're corrected that made a one time reimbursement process which should allow us to to keep a better control over what but the issues that we found in this in this instance upon that finding right we allow that school to set a corrective action plan so they could pay that seventy six hundred dollars back since then they've made the initial installment of thirty eight hundred dollars I believe is the correct amount and I should be making that final payment in February. So. Did they think they have authorization to give it to these apprentice programs what what exactly was the the hick up in it I guess what is that do you want to take on the. It looked like he wanted to. basically we have reviewed review I start of the movie process reading that city construction grant and in that process I found out that the pressure program and used a company that was also owned by the director of the pressure program to adjust the curriculum and that code books. And in that process I requested the actual documentation from the company out of order that the purchase curriculum from and also the the information for the code books which is parts from company Conway in that the documentation did not agree with what he'd submitted on his invoice and so in that process we found one thousand two hundred twenty dollars if need to be reimbursed back to us. Is is is the school paying this back to yours that the individual the individual who owns the school operates a school paying it back to us and at this point time they're not able to who obviously receive any additional state funding until that's been resolved I got you art searches feel you're recognized. Thank you Mr chair of Mr ways may I have a copy of all of the grants that you would be issued to date. For the last three years specific to a pressure for specific to skill development grants apprenticeship you'll development grants and friendships. Thank you. anymore questions you committee. Seeing none I entertain a motion to file support. We have a motion we have a second. See a second center each usually my second second Thursday I any opposed thank you. Last one. Get to moral two more shipment our next report the corn and grain sorghum promotion board G. thirty nineteen report which contains one finding this was also to your report. Our review of AC expenditures identified a duplicate payment of twenty five thousand dollars made to the Arkansas farm bureau foundation for sponsorship of back in the classroom. Based on discussion with the board administrator the difficult payment was discovered in fiscal year twenty and the board voted to have the foundation holds a whole the duplicate payment to be used for ag in the classroom at a later date sure that concludes funding. Thank you ma'am have New York there could you say your name and title for as far as this goes. Do not stand at a mystery of the beef council but I'm sitting in for mark Lambert who is a demonstrator for the corn and grain sorghum board okay do you have any a statement this time. That any questions committee. See not entertain a motion to files report. Have a motion we have a second all those in favor say aye the Bo she did a great job you substitution thank you. And now finally Mr Malaysia for the department Veterans Affairs G. thirty nineteen report which contains one finding. If I financial means we got to require state AC to proper record amounts due and collect all receivables in a prompt and cost effective manner. A sample we performed a veterans home present receival totaling over for her five hundred fifty thousand dollars a G. thirty two thousand nineteen real that over four hundred thirty nine thousand dollars had not been collected as of may thirty first two thousand twenty that concludes a fine Mr. Thank you can state your name and title for the record please. A good morning I'm also booth on the chief of staff in the CFO forever. Good morning I am fully and the fiscal manager I do have a statement on this please. Senate are not a prepared response to that the prior hearing we have on this with the US Senate aging you. Thank you I've statement yes Very rarely do we have an agency that's proactive on trying to correct a problem I know that Austin and current Todd came to us a few months ago to try to address this problem I know that we had that meeting what we discussed this in depth I appreciate ACT who knows or having a finding is trying to correct in trying to the right action to make sure the state's whole going forward I don't know for by your new that but this is been ongoing process not appreciate an H. C. coming forth right on that Sir just feel you have a question I just didn't understand his opening statement. If I can clarify so Give you a quick summary the department that affairs came to me and to represent a five pride two three months ago and they have a problem with their account receivable basically to have veterans who haven't paid their bills to put it bluntly in kind of summer early they're going to a process right now to recoup those funds and they've been working with state agencies with the military caucus to try to find the most appropriate way to recoup funds from veterans who they care deeply about also who are responsible for that and also comply explained from the process they put in place to do that. Yes ma'am thank you for the question so beginning in March we had an internal review of of our council balances it and also our processes it it was not. Where we need to be as a as a state agency either Of for the taxpayer's or for the long term capacity to care for and support veterans of so we did a handful of things we're still employment in this process the first step that we took is we talk with our two homes either on a bi weekly or on a monthly basis and we go line by line through every single resident to to talk not only about any outstanding balance that they have but also their individual circumstances and go the over arching theme that will see through all of this is so we want to comply with the Arkansas code that requires us to collect on our of accounts receivable so we want to actually collect on it to help our long term financial position but we also want to treat veterans with dignity and respect for the entire process so we have these meetings both of the homes on either a bi weekly or monthly basis the pending on the health of or Four or to in addition to that we have similar meetings with the third party bill or the that we use for Medicare of and then if we identify a veteran that is fourteen days past due then we send out a letter or reminding them of their obligation reminding them of what they agreed to in their admissions agreement and you know most the time a gentle reminders just saying Hey you may have missed a bill or your family may miss the bill. Not have the ten that's enough and we were paid on a pretty timely basis using those measures alone of since June we've seen about a forty five percent reduction and our accounts receivable for Medicare and for private pay residents. So thank you you know what when we identify this in in March audit was already in the door of or they came right after so are FY nineteen on that for you know this is an improvement from the FY eighteen on a and because we were starting to address this right before audit god came to add for a with a four to the FY twenty dollars will thank you for the question. Yes ma'am you're recognized thank you thank you Mr chair give me an example of what. Veterans would call for I'm not as familiar conversion with this is I need to be so for what are they being billed that they're behind. Yes ma'am so we call this pair sources because of each vendor's different they have just give me a couple of examples of. One veteran may not have a high enough disability rating or rate Medicaid coverage so they may be private pay and I mean literally just cutting a check every month is a pharmaceuticals or for that's for housing or give you know what for if he says we for the room of the board of their food and nursing care thank you. Thank you see no more for the question committee on entertaining motion false board have a motion and a second all favor say aye opposed say no okay moved on the new business this will be the last meeting of this exact audit committee I've enjoyed chair and I think we've done some great work I appreciate my co chair I resent speaks for all the work she's done in with no for the new business this meeting is adjourned thank you.