Legislative Joint Auditing- Counties and Municipalities
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June4th meeting by Representative Rye seconded by Representativealby. Any discussion? not all in favor say aye opppose noins are adopted recognizecog Mr. Archer now for an update on private reports on the water and sewer reports delinquent from
123122. thank you Mr Chair during the July2025
Speaker 5
0:42
LJ meeting. This committee requested that
Speaker 6
0:50
the state treasurer escrow43 entities state turnback under Act453 of2023 which amended Arkansas code 10441el for the failure to file a 2022 water and sewer report. Over the past 12 months,40 of these43 have filed all required reports and have been fully reimbursed their escrow turnback funds that leaves three biggers, Fal and Om and per Act453, these
three will have their escrowed turnback redistributed to other cities and will remain ineligible to receive future turnback until theljack notifies the treasurer that all reported reports covering the most recent fiscal year ended have been filed. The total combined turnback forfeited by these three entities
Speaker 7
1:39
was just under $126,000. Mr Chair, this concludes my report. OK. Mr. Archer is there
any comment or motion that the
committee needs to accept this not that I'm
Speaker 12
1:54
aware of. I mean we're still operating under the motion that
was made in July. OK and any questions or comments about the his report and want I want to emphasize those three communities and their 120 total 126 $1000 as far as they're concerned is gone unless we change the statute they won't ever see that money going forward so you know any questions or comments
if not we'll move on to
itemd private reports delinquent for 23 and24 Mr. Archer, thank you
Speaker 17
2:31
Mr. Chair. We have4 entities that are30 months delinquent on filing their 2023 water and sewer report which
Speaker 6
2:39
is the same point in the process the43 were last July. These are black rock Omaha Briarclift and garner.
we sent letters dated July222026 were sent notifying50 entities that their 2024 water and sewer report was 18 months delinquent but a staff note here currently that number is down to
Speaker 17
3:05
26. We have received24 of those reports since we sent those letters out that's 24 of the2924 of the fi0
of the 50 ok now we have one here that's got 29 on it that that list is now down
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3:24
emailed those out we've keep it current. Commission chairir that concludes
my report. any questions or comments if not we'll file the report.
Thank you. OK, moving on to the item E the2024 year end reports bauxite sir this
Speaker 6
3:44
is a report on the city private reports we were talking about water and sewer. we sent a letter dated July22 of2026 notifying the city of
auxiteit that their 2024 private city report was now 18 months delinquent. this is 1 of40
Speaker 17
4:01
private reports that we received so we're down to all3039 have complied and we're down
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4:06
to one and that's and that's bauxite yes sir that concludes my report
is there any information or feedback from counterbauxite they had not responded to the letter. OKittee questions, comments or complaints
Senator Jamie Scott
Unverified
4:28
Senator Scott, you recognize thank you Mr. Chairman. My question was back to the first three cities who hadnn made the report. I know we've
been dealing with this bigger falcon but have we
Senator Jamie Scott
Unverified
4:41
heard anything from those cities I know the money is not going to be able to go back to them and we're collecting that $100,000 but have they given us any kind of explanation as far as why they're still unable to be in compliance as far as communic ations with
Speaker 33
5:00
as far as communications with with staff
Speaker 35
5:03
it's been a while but I knowiggers had some had some engagement letters that had signed they were pretty far in arrears so it takes a pretty good while to get
Speaker 17
5:13
caught up. They were coming from like 2016 maybe and most most auditors like to if there is a report they like to start there and work themselves forward so as far as Fouk they were at the meeting in July and he said he had an
Speaker 23
5:32
engagement letter at that time but he was looking for a better price that's the last I've heard from the city of Fou. I don't remember off the top of my head about umm now the municipal league is here they have done a fantastic job with these cities and that's why we're down to3 is because of their efforts you may ask with one of them want to
Speaker 17
5:51
answer that question as well do you want from the municipal league like to respond to Senator Scott's question
Speaker 38
6:06
please come to the table and introduce yourself and John you
Speaker 40
6:16
join him too if you someone here John Wilkerson
Speaker 42
6:20
general counsel of the Arkansas Municipal League Steve Ixon field rep for the Arkansas Municipal League. I can speak concerning vigors. I've had multiple contacts with them and and like Mr Archer says they're behind all the way back to 2016 I think was their last submitted report
I've talked to their CPpa and she is telling me that it's she will not skip ahead and and you know get out of line she's got an audit starting in se7 and goes through 24. excuse me when
you say she said she wouldn't skip ahead. does that mean she will only do them in chronological order. OKok, go
Speaker 42
6:58
right ahead. I'm sorry that's that's the way she indicated to me that you know her her policy was that she you know they might find another auditor that would but she's holding the
documents right now but last conversation I had with her she only had the documents for 2017 and we're still waiting on the rest of them and she indicated and I asked her I said how much money are we talking about to get them caught up and I was surprised at the amount considering that it's seven years but she said it would be $25,000 I thought it would probably be more than that for7 years because usually what we're seeing averages more than that per year but that's that's the
only one I can speak to on on those three for fou Philip
Speaker 47
7:45
Patters is a field rep for the field rep for that area. Last I talked to him it took some time to
Speaker 40
7:52
get in contact with Fo and despite our best efforts and from what I gathered from about two or three months ago the mayor had finally started working with the CPA I don't know where they are since then but we did have some trouble getting them to the mayor's here oh perfect. Oh excellentir you're welcome but
state your name for the record and be on the
microphone because we are on live stream. Our understand you're the mayor please please take a seat to hit at
the end there and introduce yourself for the record
Terry Purvis
Unverified
8:26
thank you and apologize for being late to parking is not real conducive today but anyway thank you for letting me be here. My name is Terry Purvis. I'm the mayor of the city ofau. OK Mayor I wouldn't worry about being
late. you're late if you weren't late on some lot more important we wouldn't be having this conversation so thank you for
you have any comments or or anything to report to the committee
Terry Purvis
Unverified
8:56
Yes I do the only and it's and all the times that I've been here the only hurdle I have is the cost of being able to pay
for it you're talking about the cost to pay the auditing firm. yes sir ok and
Terry Purvis
Unverified
9:16
the Arkansas municipal League put me in touch with communities unlimited and they came down to the city ofauu and not only that but they were going to help me with the audits trying tobi a a affordable way of getting my audits done but also they are doing my rate study free of charge about not allowed to say I'll
praise God for them. they were gosend. I appreciate the Arkansas legislature for putting me in contact with them about four months into their work they came down to city hall and they told me that they had some people leave so it was pretty much I'm on my own with the audits which is OKok I get it but they're still
doing my r study thank God. that's one thing where we're going to look at when we're doing our rate study is to be able to put in enough of what we've got to do to raise the water rates to pat not only pay for these but to make sure that we're going to be able to perform the services that we provide. I come to you today and I know we're behind and I've got
the hurdle taken care of I've got here for the records if you would like to enter it. This is my general fund bank account for which I've got right now as of the this is the most current bank statement 137,0005 dollars40 cents. We average generally about4050 1000
in our general fund. This is above what we are used to I didn't come before you today just to show you a budget that we had a budget to do what we got to do if I come before you the only thing I wanted to show you is I can write a check now there's a lot of things that has gone into this we've overcome what we had to overcome
unfortunately for me it took a lot few sleepless nights trying to figure all this stuff out. we cut back on spending that was nonessential. we saved the money up. we got it we're going to start with the priorler Jack Pryler please forgive me I'm sure I'm mispronouncing his name. in magnolia he's out of town right now so I mean I couldn't get anything from him and he won't be back till Monday but
we're my secretary's working with ourenteroint accounting firm that we got the software firm from to make sure that the documents he gave me on the list is true and correct of what he wants right now that's where I'm at but I'm proud to say I can write a check. I'm gonna get it done not only for this round but we're going to keep
going until it's caught up. We I still got a lot of work to do on the budget to literally pay this back to our reserve funds I've got a lot of work to do. I'm not there yet. I'm about to get there. I got to pay this back. we've got to have our reserve funds in case of an emergency so
some of it not all of it is coming out of that which our cutting back and
Speaker 64
13:27
saving up the money so we could write the check is where I'm
at right now. Mayor thank you for your report and I want to tell you I'm sympathetic but 7898 $6 would have helped y'all work this thing out and you have lost that you have totally lost it because under the law it went away. We in this committee and the entire legislature can't give it back to you unless we
change the law which soonest opportunity would be in January and I'm not so sure that you could get 18 votes in the Senate and51 in the house to do that and I'm just saying it sounded like you were saying that you were trying to find a better price on the audit and you know it's kind of a you know you're kind of like your car's broke down on the side of the road you can't argue with the tow truck driver on how much he's charging you you needed to get out of the ditch and and again I'm sympathetic but I want I want to
help you get out of the ditch but but I specifically ask our legislative auditor is this money totally gone and he said unless the general assembly changes the law it is and do you understand that don't you? Very much sir. OK well but I can't and
Speaker 38
14:42
please understand I had to have the money in the bank to write
Terry Purvis
Unverified
14:49
write the check and and I'm sorry I mean look I don't
I take po responsibility for losing that money but I had to be able to write the check if I'm gonna have the audit. I mean I I just can't put it in the budget come up sir hey it's in the budget I'm ready to go. I want to prove to you that I got a write the check. I'm not you know we got it they they we had to have our water tower totally re refurbishedandblast inside now it was almost a 2.5 year project. I
had $148,000 left in my C careRSacct funding not a problem it was budgeted for that and allowed to be spent on that but it had to be spent by December31st night of last year or I had to pay the money back I got the invoice on that thing December30th. wo more days and I'd had to pay that money back and I had to have that money because the federal government I'm sure would not be nice about it
we had the money well that we didn't have all the money in the reserves but to pay that money back if I didn't spend it. I mean it came down to the last two days yeah that put me behind now where do I come fromjanuary till now. I want to make sure I got the money I have in the bank. I feel bad about them bad and drip that we got to this point we lost that money. Yes, I understand what's happening sir. I got to get caught up and I'm
a question Representative Rye? you're recognized yes
Representative Johnny Rye
Unverified
16:46
sirir you keep referring to losing money. where did it go? did
I say something about losing money? I apologize. I used the term that under the law
the78 that they would under the
Speaker 64
17:01
law that got they have turned hunting that's the money
I lost. yes sir. I take more responsibility he didn't lose it. he never got it because
they didn't comply or got it that's the issue of course some where it's delayed our statute and and Joe when was that when was that passed 2023 In23 p re s ent ative B, we
passed a bill that says that you go so long and you haven't complied then that turnback that's kind of been held in escrow it totally goes away and that's the situation on these these three
communities. Yes. so when he says he lost it he didn't lose it he never had it I never got it. I apologize I misspoke. we understand I just want to clarify that point. Other questions for the mayor
OK. Mayor again we're we're sympathetic. we hope you can get this worked out and then you've got good folks there for the municipal league helping you and but I I don't have anything
else to tell you other than understand sir. I completely understand I
Speaker 81
18:08
I I understand sir. OK I'm just and if you
need pride I got the money I can now write the check to the staff we'll we'll keep it if it helps us. Senator Scott, this is my
Senator Jamie Scott
Unverified
18:21
final question. thank you for coming thank you for your explanation and thank you for your hard work so the cuts that you've made are they sustainable for you to move forward because I know you made cuts to get where you are but they weren't essential no ma'am it was only nonsense nonsential spending
Terry Purvis
Unverified
18:39
that I did and I really slaved over to make sure that I don't want to cut any services that were given to our small town. we are very proud I know lane and it's been there we're proud of
Speaker 64
18:54
what we got and I don't want to stop it. I don't want I don't
Terry Purvis
Unverified
19:01
want to quit what we're doing. there was some nonessentials that I did quit and missedby's been there too a lot thank you Miss Doby.
I love her I'm pretty great thank you that's all you know it's really cool and and please let me say this Missalby don't even represent us I mean she's up inexarkana but she's always there to help when I call her so it's thank you I'm sorry I got into the situation but this is it. that was my only hurdle. I got money in the bank and I had to have that right check. I got it. I'm I'm going
to get it done. Well work with the municipal league work with our staff and we'll try to get you where you were not in this bind again and thank you for coming and testifying today Mayor. We have sometimes have local officials that that don't pay us the courtesy of
showing up and answering our questions and we appreciate you comingly. I sure don't want to be here
Terry Purvis
Unverified
20:03
like this but I ain't going I sure ain't gonna turn you down on an invite. thank you. OK
thank you for your candor Mayor and God bless you. safe trip back to bless you man thank you very much I appreciate y all thank you come see this girl OK Mrir Mr.
Speaker 35
20:23
Archer you one of our one of our staff members has been working with as well just handed me a
Speaker 23
20:29
note and said they were working on getting engagement letter at cityity of Om as well so there it's all in the process is there
any other from biggers or home as anybody else here I I was told one of my
good friends in Prairie County that it'sulum in case y'all are wondering and andpresentativeenan who knows everything about Arkansas cities's concurs so it must be correct. OKok are we are we did we dispose of the bauxite item unless there's some additional questions any other questions
or anything about bauai. OK, we'll move to to item F
and that's the nonargo alum lead hill and Stt Joe. Mr.cher thank you Mrir.
Speaker 23
21:21
in the June meeting we deferredargo I mean no excuse me in the June meeting we started the60 day clock on the city of Fargo for noncompliance of a municipal accounting law and with the chairs and so we checked with them in August they have not made any real progress of getting the records and per
1459117 the next step would be to escrow50% of their turn back for the next 60 days until they get in in compliance and staff recommends we move forward with that with that objection we'll move forward OK?
are we ready for G yet? no we've got three more on ok yeah go ahead I'm sorry you got all on
the lead hill and and all in
Speaker 23
22:09
the June meeting this committee started the60 day clock on on
that town we visited with them on first of August and they have made substantial progress and staff recommends that we remove them from the 1459117 process. OK any questions about oh if
not without objection we'll move forward. Go ahead town of Lead Hill with the chair's permission we'll have to
Speaker 6
22:35
go ahead and present their report which is on pages3 and4. of the synopsis
Speaker 6
22:56
under the mayor audit a gridpa procedure and noncompliance report was obtained for the was not obtained for the water and sewer department as required by bar Arkansas code we actually received this report on July14th after the Ju meeting this was a deferral as well so that that one's been taken care of
on page four under the recorder treasure a review of disbursements reveal that supporting documentation was not maintained for the following disbursements and noncompliance with code. almost $1900 almost $1000 just over $1200 dispersed in 2423 and22 respectively due to the lack of documentation, the validity of these disbursements could not be determined. Just over700 dollars, just under $1000 and just over $800
dispersed in 2423 and22 respectively to vendors that appear to be for legitimate business purpose. however supporting documentation was not available. This is a repeat finding in the previous ive reports. County procedures for municipalities are set forth in a municipal accounting law Arkansas code 1459101 through 119. The town is a noncompliance with these codes as noted below. A detailed fixed asset list listing was not maintained. This is a repeat finding for the previous5 reports. All
disbursements from misssible funds were not made with prenumbered checks and electronic disbursements were not were made without establishing electronic funds transfer policy approved by ordin ance This is a repeat finding cash receipts and disbursement journals were not properly maintained for all activitiesre number receipts were not issued for all items of income. This is a repeat find in the previous two reports bank reconciliations were not properly prepared for all bank accounts or approved by
municipal official or employee other than the person preparing the reconciliation. This is a repeat finding in the previous two reports and the annual publication
Speaker 100
25:03
for financial statements was not prepared or posted. This is a
repeat finding have a question on this one Mr. Archer where it says that appear to the it
is on the732987 and 843 appear to be for a legitimate business purpose? Is it
allowable for the auditor to contact those businesses and see if there's they have paperwork that would would clear up that documentation
Speaker 17
25:37
looking at the municipal staff and some of those we have contacted them before for their conference billing for some of the officials that don't they didn't retain the documentation. these are like utility bills or stuff that reoccurring and the reason we differentiate between the two paragraphs the top paragraph was referred to the prosecuting attorney and we know that the
second group well we say we know we're pretty confident that the second group we're not something that was going to be prosecuted so we didn't want to commute the system by deferring those so we we try to separate them out with those that we just have no idea for versus those that you know we may have the utility bill from the month before it's they pretty much the same amount so we can assume that even though they didn't they lost the bill it was for the street lights or whatever and we presume that the prosecutor will look at it in
Speaker 101
26:30
much of the same manner he gets the entire report so if he he or she does ok so we've kicked that
Speaker 104
26:36
can down the road so to speak. Mayorkle Thompson was here in June. oh you're here again that's not mayyor Thompson. I know who that
Speaker 6
26:44
is a quarter treasurer Kathleenri was invited here today and she's here to answer questions she's here yes ma'am and again staff recommends that we we start the six day clock after
questions are ma'am please join us and introduce yourself for the record. I'm Catherine France. I
Speaker 109
27:01
am the recorder treasurer for Leadhill Id started this job in 2020, came into a very outdated system,
Speaker 110
27:07
no proper filing system and a previous recorder that had to resign for improprieties and was prosecuted at this time I worked endlessly to correct situations in the 20 hour week allotted by counselor many weeks over 20 hours and not being compensated. this council has finally listened and voted to have a second person in the office. Moving forward here are
the corrections that we have already implemented for the Leadhill audit. please let me know if I f missed
Speaker 109
27:41
one. passed an ordinance for electronic payments we have a fixed xx assess asset list
Speaker 110
27:47
I now have the municipal league reconcile form to make sure we are reconciling correctly a policy has been implemented to rece everything that is autodeposited we are scanning every receipt into the
computer and into folders to be prepared for a timely audit. We are aware of the annual publication law and we have6 locations that we do post council meetings at and we will be sure to be posting our financials on april 1st t by April 1st2027 and I have all the receipts that you didn't have on those paragraphs they're right here
can provide those to the staff and if those
copies no he just well the staff can copy them if we need to but thank you for bringing any before we move on any questions from Mri about what we just discussed if not, I guess we move over to the police chief next no we don't go ahead
Speaker 104
28:57
staff still recommends that we start the6 at o'clock. the way the the the law reads is that we
Speaker 17
29:03
would come out immediately if she requests and we'll take a look at these and report back in
September and then take them right back off the clock. there's no turn back involved in this or anything
like that but you know do we need a motion to start the60 day clock? Is there a motion to motion by cochair Wwomack seconded by Representativealby any discussion all in favor say aye opposed no OK the60 day clock has started
Speaker 115
29:31
so France, thank you could you reach out to your auditors as soon as at your earliest convenience so they can
Speaker 118
29:41
pay you a visit I just talked to one of them yesterday., just call them back and have them come see you and we'll get this taken care
of that and thank you for coming a motion to file that does that what about the bar on the police chief it's
Speaker 26
30:01
next page he's not is it all one report it is but the mean if you have questions about it I'll be
glad to answer it. Any questions about the part that's on page 5 at the top of it from the police chief those are not ones we normally
reach OK without a then if not without objection we'll file the report. OK.
Speaker 124
30:20
the structure the next the final city on the noncompliance
Speaker 6
30:24
is the city of Sat Joe with chair's permission to'd like to present that report from pages6 and7. Town of Saint Joe202423 and22. under the mayor and treasurer. County procedures for municipalities are set forth in
the municipal accounting law Arkansas code annotated 1459101 through 119. The town with a noncompliance with these codes as noted below. Monthly bank reconciliations were not preparedrenumbered receipts were not issued for all funds received and deposited deposits were not made timely. Cash receipts and disbursement journals were not established annual financial statements were not prepared or posted. invoices and supporting documentation was not provided for tested
disbursements totaling just over 1450 dollars368 dollars and $823 for $24,23.22 respectively However disbursements were to vendors that again appeared to be for legitimate business purposes lectronic disbursements were made from the general fund without proper approval by the council by ordinance or without establishing a written policy and procedure. This is a repeat finding in the previous two reports continued on page se the governing body did not review
the prior report or company comments at the first regularly scheduled meeting following the receipt of the report noncompliance code. This was deferred from the from the June meeting because the city of Saint mean the town of Saint Joe did not have a mayor or a recorder treasurer. Since then they have appointed a mayor and a recorder treasurer and mayor newly appointed mayor Travis Chadwick and recorder treasurer Pam Kittera are here today to answer questions. they'll come to the table we had previously injune
Speaker 23
32:16
recommended that we start the60 day clock we have been in contact with the city after they answer questions staff withdrawals that that recommendation one because the the law says if they get a new recorder treasure they would get another year opportunity to fix it and actually they've already provided a great deal of documentation to our staff that they have fixed the majority of this but they're here to answer questions
if y'all would please both introduce yourself for the
Speaker 127
32:47
record.' kiddo thank Jo city treasurer ma'am tra vi s
Chadwick, the mayor of Sajo thank you both for being here first of
all thank you for taking these jobs and obviously less than perfect situation so I always want to thank our local officials that step up to the plate. Any questions for the mayor and the recorder treasurer
Mr. Archard do do we need a motion to rescind the no it was
not actually start the clock on that but they've moved a long way to the right direction so we just recommend we file the report so we're going to if there's no other questions and
we'll we'll file the report and we wish you both the best for and thank you for stepping up being good citizens and helping your community and you can go back
now it's safe travels up65 now where are we with that just just like you're recognized
Speaker 24
34:13
we're going to move ahead for for a reason that you understand we're gonna go out of order a little bit we're going to jump
Speaker 6
34:19
over to item number where'd it go number item38 on the listing which is on page 31 and demarion County which has a repeat finding real quick on page 31. Marion County 2024 under the county judge we were unable to reconcile the county's W3 inappropriate to the appropriation journal due to inadequate documentation. This is a repeat finding in in the previous two reports. fix thatset records were not
properly maintained as required by code. This is a repeat finding in the previous se reports under the treasury we were unable to reconcile or verify the following due to the lack of documentation and errors in the posting of the count ing software unable to reconcile total receipts and disbursements for the treasure's summary to deposits and withdrawals per the treasure's proof of cash. unable to balance transfers and tax transfers on the treasurer's summary.'s repeat finding in the previous two reports
under the sheriff the any balance in the bond and fine circuit account commissary paper service and drug confiscation accounts had unidentified balances of almost $2000 over 93,000 over $11,300,650 and589 dollars respectively. This is a repeat find in the previous six reports. countunterjudge and the sheriff were invited here today but they both had conflicts but treasure
Suzannerispino is here today to answer questions Could you
come forward Missrino? thank you. and welcome please identify yourself for the record. if there's a button you push there to turn that mic on
Speaker 146
36:17
there you go, Suzanne Crispino Marion County treasurer apologize for mispronouncing her name.'s
married in Italian it's always my fault you're recognized to respond yes
Speaker 146
36:32
sir. I took office in January of 2023. We had done prior administration had done a computer conversion starting inoctober of2022 let's just say it was not a smooth and successful one. the fixes that we began in 2023 and continuing to build the
database did carry over into 2024 and we're pretty I guess hopefully confident that our 2025 audit will be clear. OK any questions Anything we need to do other than file a
report Jo well staff recommends that we defer the
Speaker 35
37:14
report and not invite back the treasurer and invite the judge and the sheriff and we'll do their part next meeting that everybodydy cool with that
without objection we will defer this until the judge and the sheriff can be here. right thank you ma'am thank you for
Speaker 146
37:32
stepping that up too. I appreciate it you're we're glad
you have a safe travel bag and then we go back to
Speaker 35
37:41
the list where where are we number one thank you thank you Mr chairir we have 14 reports deferred from the June meeting starting on page one with the
Speaker 6
37:50
town of Alpena the mayor was here last meeting but the recorder trail
we deferred this so the recorder treasure could be here she's actually resigned her post but the mayor said he would excuse me I misspoke. he was not here in June but he will he is volunteered
Speaker 23
38:07
to be here in September it's the committee wishes him to be here to answer these questions. Staff recommends that we defer this until that time. with that objection we'll defer this one go ahead the next
one in on number two for deferred reports
Speaker 6
38:27
we have the city of cotton plant 2024 that was deferred from the June meeting with chair's permission we'd also like to include
Speaker 23
38:37
on page 33 the city of cotton plant 2025 report we have since completed it and we'd like to do both of
them together is there any objections to putting those two years
Speaker 6
38:50
together if not it's supposed to do that on page two city cotton plant 2024 page33ci cotton plant 2025.
Under the mayor county procedures municipalities are set forth in Arkansas code annotated 1459101 through 119. The city was in noncompliance with these codes and other accounting procedures as follows fixed asset listing including additions and de le tion s amounts acquisition dates identification numbers for equipment were not provided for review. This is a repeat finding for the previous 10 reports. The general fund bank statement was not properly reconciled. This is a repeat finding. The cash
disbursement journals for the general fund and street fund were not properly classified or posted. This is a repeat finding that last bullet also appears in the 2025 report on page 33. Continuing on page two per review of payroll record s the city has unpaid federal and state taxes due totaling $211,000 for taxes, penalties and interest for prior years dating between 20152023. This is a repeat finding of the previous
se reports. That figure on page 33 for that same finding has grown to345,000 dollars at the end of 20245 excuse me although scared back to page two Al schedulele one of this report shows a balance of almost $27,000 was brought to our attention that as of December3,2024, the general fund owed a significant amount of balances due to the IRS and DF andA as shown on Note6chedule3 when these outstanding amounts were considered. the general
fund has a deficit fund balance of
Speaker 17
40:34
$184,000 That amount for the the deficit fund balance at the end of 2025 would be345,000. Mayor Clara Hustable Brown is here
Speaker 24
40:44
today to answer questions Mayor you're welcome to come forward
Ladies please have a seat and turn to make sure your mics are on the green light and introduce yourselves for the record. You go first, mayor.
Speaker 162
41:14
Good afternoon. I'm meor Claira Hoson bryn the me of cotton plant. OK ma'amiccole
Speaker 163
41:21
Glassarroll marriage assistant treasurer we're here to answer
Representative Cameron Cooper
Unverified
41:27
all the questions that that we are negligent on some of them is our fault but some of them is not so please move a little closer
to your microphone so we can hear you you could slide that thing it's wireless better thank you ma'am. Any question y'all won't ask
Representative Cameron Cooper
Unverified
41:47
you start off one at a time and I could tell you why they're there why they like that and what we're doing to straighten them out that what we've been doing but she fell on the stand since I've been out for eight years. I have had four treasures at one deceased one that resigned and that had one state took out the
office and I got another one here every time we try to get the paperwork in order something changed so what I did I put my whole new system with someone else Miss Pamwright to come in and set it up for us we get everything right. so now we're working on getting that right then on the bills those IS bills those IRS bills were there when I got there and I've been trying to pay our
taxes and we haven't had any any any time we get up to where we can tell us something something always come up. On time we had a chance to try to pay some with the covid hit another chance tornado hit then last year we had a certain length of time to get three audits did and a month and a half or two months' time had to go back and do cutbacks cutbacks cutbacks in order to get that money together to do those audit reports before the
state will lose the state turn back the city of canton plan do not have but one little story for revenue and what the rest that's all the revenue that the city has low income we got from the bowl team factory there we get 20,000 a month from there that's what we get they don't pay my payroll for a month so with the bills the back bills that were left on the city when I got there half mi an hour for bills
I didn't cleared those bills almost up. I don't worked out all the penalties that they canlan had on them but what this latest incident that went on would cover it up to now look like we're working ourselves back into the same place I just worked myself out of this year is my last year I am I'm no longer running. I didn't even run for the position I feel like I have done what I could for the town. I'm getting older it's time for somebody else to come in and do the
things that I can't do because they got a chance to do it because what I had on me they won't have on there I didn't have a chance to go forward because the whole time I've been in I've been working backwards now I got so when the next me come in they can go forward that's that's one pplge I didn't have that's it and that's where we just didn't have the money now we get a position where we're doing better
now this is my assistant treasures here we had made out agreement what we're going to start paying so much a month until you know we get it caught up until we get some more income coming in and and up until that that's that's the best we could do but I've been on a slight budget ever since I've been there. I've been stealing frometer to Paypal Now Peter Mag appall and broken both of them is broke and I sat there and I'm the one who got to catch the headache
from my whatever going on we had the revolution if I could have came in running yes, I'd have been glad to run. You can't go forward if you study going backwards and I worked hard to get away from backwards that's the rateid I went there to work. I knew it wasn't nothing in that town but I figured if I clean up some of that debt of this town that the next person come in they can
move it forward. I refuse all my life I would have never left a place like that time was left. I wouldn't do that to myorcester's enemy I start to reign but I didn't I took all the sweat but I stayed I got to town now it can move forward and that's what I worked for the last past eight years now the next year I get this town two years they're going to be in
compliance. I guarantee you that because what I would do the next mayor don't have to go through that we're a small town we don't have that much revenue coming in but you got to work with what you got See I know how to do without. I raised 9 kids as a single parent I know how to budget that's the reason I took the job. I knew how to save and that's what I did. I took that town and grazed it like I did my family we knew how to do without and that's what I did that time
until I got it where it's at now where you can stand because it was dead Now what the next person going to do blame them because they don't have no reason no reason not to move that town forward because I work too hard these eight years to pull it up to see someone might walk in and running back down now that's why I'm at now and that cleared up a lot of that stuff all them penalties we're working on we didn't cleared
those up I had all the all they did but we still survived we
Speaker 171
47:29
still survive every year people come down
Representative Cameron Cooper
Unverified
47:33
for can play a day they usually give donations for it every year campaign day gets smaller and
Speaker 173
47:45
everybody look at me like the city post to sponsor that noiti don't
Representative Cameron Cooper
Unverified
47:52
I cannot use city money for knowing a bit like that and this
Speaker 173
47:55
is my last year at least she doing it this year because I refuse to do it again she's doing it now whoever take it all lord know I worship luck anything I could do to help because
Representative Cameron Cooper
Unverified
48:11
then nobody about a couple that offered to help me do nothing, not even the previous mayor and two of them lived in a town had to go out and visit other mares ask for help they ain't got time
Speaker 173
48:24
it wasn't easy for me but I did it. I did it I did it and not do it again after this time goes down again you're not going to be the
Representative Cameron Cooper
Unverified
48:34
only one on these people's back because I work too hard for this but let them sink it it was you know what the last mayor told me when I was going in office he asked me why
Speaker 173
48:42
would I jump on a sinking ship that's what he told me. Well mayor I appreciate your candor
Chair
Unverified
48:55
and hard work you've done to try to right the ship is there theres
a candidate or two running for mayor this fall? Yes, it's two candidates running Mr. do flattery and
Speaker 175
49:04
Miss Nicolearro those two are running ok so have you talked to them and they understand exactly where the town is
she do. rests of them don't have time. Then when they come in there they're gonna walk out
Speaker 173
49:19
walked out but now they're coming in there they can stay because things it's not like it
was then Yes and I wish yeah you know what I fought myself for that I was on accounts for eight years for 12 years before I run for mayor and I got mad all them lying people that was getting I'm on city council and I didn't know the shape the town was in you know that was a shame that was a shame and I'm
Representative Cameron Cooper
Unverified
49:50
standing that financial report every month look at all them lies
any questions for the mayor Representative Rry.
Representative Johnny Rye
Unverified
50:06
Yes sir. thank you Mr. Chairman. Ma'am, the only thing that really concerns me as I'm a little bit concerned about this unpaid federal and state taxes. Yes, we're paying those now we've been paying on those maybe some months
Representative Cameron Cooper
Unverified
50:20
we don't pay but that our check that that34,000 dollars. Now did de come from the previous administration. let me tell you what I did for that
I swamped and s saved up $80,000 to put on that debt four years ago saved from nothing and I took her to the counselor you know
Speaker 179
50:45
what they told me if IS don't get in touch
Speaker 171
50:51
with me and me not to get in touch with them and they took that money and allocated places that wasn't even needed ma'am let me ask you this how of
Representative Johnny Rye
Unverified
51:03
this $211,000? how much do you think that is still owed on those federal and state there's not
Representative Cameron Cooper
Unverified
51:09
that much it's just the interest rate and everything they get combined all together but I know it when I came in there with interest and everything was $150,000. Now back then we had paid the aid on that we could have knocked down some of that interest but since they didn't
Speaker 173
51:24
let me do it but see people fail to understand y'all come up and y'all recommend me and the council one with the power
I can't do no more than they let me do. and they tell me don't I don't. They tell me what to do I do what I like to allocate that my anybody that know I would love to pay that debt off but I
Representative Johnny Rye
Unverified
51:48
couldn't. Well yes ma'am but you know this money right here is supposed to be taken out on the front end that's what I'm talking about that's what we
do no ma'am you got this right here. which one is that's on page two looked like about halfway through the pain that
nicole it's $211,000 ma'am and boy that's that's to me that's serious business for which one
Speaker 186
52:10
of them actually364,000 now. you got fields
Speaker 189
52:21
this one here yes ma'am added on with ma'am this one you did you get your
answerpresentative she's still answering ok go ahead mayor. could you tell them what you've been doing to try to try to pay that debt off
Speaker 191
52:39
when on the yes sir on the said the state that we're behind I just sent a little extra with it. I know because that's all we have is a little extra and on this federal we hadn't start paying the federal at all like she said that when it was time to start paying on the federal I was going to start paying on the federal then we got knocked with the audits and there were5,000 dollars each so we had to come up with $15,000 at one time it's not that we're not trying we just don't have it
Representative Johnny Rye
Unverified
53:12
yes ma'am Well I hope you can get this straightened out because this is
Speaker 162
53:18
that's really serious sir and definitely we are trying are youpresentative I'm working that'm working on that now trying trying
to get out of here that's that's what I'm trying to that's that's one we've got some more
Representative Matt Duffield
Unverified
53:32
questionspresentative Duffield you had a question you're recognized thank you Mr. Chair. thank you mayor so much for your
service and cotton plant in the community. I have a question bold team Llc the medical marijuana
cultivation facility there've I've read that it was really going to be a big factor for you guys and in that area I thought it was too but some kind of
Speaker 171
53:54
wayt I don't know who did it both team contract we got
Representative Cameron Cooper
Unverified
53:59
a 10 year contract for 1%. We get 1% and we have to wait 10 years before we go back to the tape again and that's what I'm counting on but help this town to get out of debt when they go
back to the table again all we get is this 1% 1cent is what we get. How much is
Speaker 162
54:23
that about $20,000 a month sometimes maybe 21 1000 a month
Speaker 191
54:27
maybe a month probably 20 to 25 1000 a month right thank you Mr Chair.
Speaker 200
54:34
thank youpresentative Senatorhammer, I believe you had a question thank you. I just want
Senator Kim Hammer
Unverified
54:40
to bring some clarity to to something it sounds like maybe previous administration where you
inherited this problem whenever they had the they collected the federal the state employee tax didn't pay they weren't they were not remitting it to the state or to the feds is that correct? OK. and so now under your administration you are and what you're doing is instead of that money being diverted somewhere else or used somewhere else you're putting something with it in order to get the the past debt knocked down but at the same time you're not creating debt because you're
paying it every month as required because when I
Representative Cameron Cooper
Unverified
55:22
first got in office, you know we had a system instead you know payroll always come out by the tax and everything so we're sitting that in. It was6 months before I even found out that it wasn't going towards taxes that I'm paying since ciples in there it goes up to the back taxes that's where it was going. I'm I'm on a you know something that we're paying our taxes every month and which we were but they're
not going on much my occur in tax it was going on the taxes that was owed already so we're paying now it's still the same thing part of a go to what's already there so it's it's a little bit
Senator Kim Hammer
Unverified
56:02
of a water under the bridge but I've got to ask you what were they doing with the money that was supposed to be being
paid to DFfa and the IRS. do you know what they were doing with that money within the city
Representative Cameron Cooper
Unverified
56:14
budget? No sir, I do not know that alter came down and audit so two times
at least twice for two separate mars so they didn't see nothing so when no need of me complaining and then the last question
Senator Kim Hammer
Unverified
56:29
who negotiated the contract with the medical marijuana
people in order to get such what seems like a low deal for the city who who negotiated that contract. Theurri one council and we didn't know nothing about
Speaker 212
56:44
it you mean the marijuana commission medical marijuana Commission. she said the mayor
Speaker 191
56:50
the former mayor and one of the council members and when is that
Speaker 171
56:57
up for renewal should be next year.ext year that that's that's what I'm hoping in July that's when
that 10 years will be up has it been 10 years? Lord time
Speaker 210
57:06
flies when we're having fun and you won't you won't be the mayor during that negotiation with no sir that's right I'm
Representative Cameron Cooper
Unverified
57:11
getting out of that little money I can handleig money started coming in and I got to run I don't want to be around when it starts coming in because down there they got a
bad reputation how me steal money so I want to get out of there before the big money comes. I have a little money I don't want to
Speaker 217
57:30
pay no pasta no big money, no I'm not getting in that big money I'm gone. Well
Senator Kim Hammer
Unverified
57:37
appreciate your service. I do have a question for staff. Did back in the because that money should have been paid todFfa and the IRS and it sounds like it was redirected to other needs of the city at that time by the previous mayor and by the city council is there history or do
you know the history of what if they were held accountable for that at that time or the the finding
Speaker 23
58:01
there the last finding on page 31st finding on page 33 says this is a similar finding in the previous e reports so we've been we've been reporting on this since 2014. I'm talking about and it's and it says that in thebiing it says these were taxed for periods 2015 through 2023. thank you thank you senator Representative Cooper you're
recognized Mayor how many city employees do you have?
Representative Cameron Cooper
Unverified
58:33
I get three full time for the streets and and two and two part time in the summer when the grass start growing that's something I have. Do you have a police
Speaker 211
58:43
force and had 2 or two or three of them since
Representative Cameron Cooper
Unverified
58:49
I've been there the last one I got I got one now where I got a three full time
officer and then I had two full times and one part time one auxiliary but
Speaker 169
59:02
I try to keep at least two and auxiliary and by the time so
Representative Cameron Cooper
Unverified
59:10
three full time employees on in streets and three full time police officers that right and we don't never get to three
intest some altercation start going on and you know then hounding some more officers to help out with the city oh she knows this mother had a shooting down that killing
and that's what made me hire the other office on down
there for some hip so what what is your total salaries for the city employees per month you have that figure
Speaker 191
59:44
that fit with you I can say on yesterday when it was payroll and it was like $18,000 for
Representative Cameron Cooper
Unverified
59:51
the whole payroll. and was that for two weeks or two weeks 18,000 for two weeks we got 20
and then you have5 council members66 ok what's their
their monthly salary $200 a month and then mayor and your position that would round out the
Speaker 191
1:00:16
the entire and then we have the water clerk which she's also the recorded recorder and we have the water department as well do you do you happen to have
Representative Cameron Cooper
Unverified
1:00:26
the figure on what the entire city including elected officials what
Speaker 191
1:00:32
that monthly salary would be when in including the council usually all right so this the erro yesterday was a tad bit much because there was some overtime for the officers like the police officers had a little overtime so usually with the council is usually maybe like 14,000 a month maybe 14 145 a month total for all for all elected officials and employees
Representative Cameron Cooper
Unverified
1:01:02
but the payroll a minute ago you said it was 18,
Speaker 191
1:01:08
because it was overtime the officers put in overtime and so that's why
Representative Cameron Cooper
Unverified
1:01:12
it was a bit a little more ok so average per month your your entire city workforce and your elected officials I would
Speaker 191
1:01:21
say 14 every two weeks and not a month that's every every two'm sorry every two weeks that's a 145
Representative Cameron Cooper
Unverified
1:01:27
every two weeks would be yes sir
so you you you're right at30,000 dollars a month so you know360,000 dollars a year on your annual budget OK. Other questions oh
Speaker 44
1:01:55
come on folks oh come on folks well yes ma'am thank you Mr Chair. How much
Representative Joy Springer
Unverified
1:02:03
income are you getting on a monthly basis to cover that including the bold
Speaker 190
1:02:09
money coming in and then the money we get from the state our roughly I
Speaker 191
1:02:16
would say maybe 30000 because I think when we get the turn back money30 maybe3 I'm going to say33,000 because turnback I think it's usually like 8000 for the general and maybe like3500 it may be more
Representative Joy Springer
Unverified
1:02:36
than30 maybe40,000 I'll say ok so you you you all are barely making it then you trying I see so you
need to find some representative Springer I believe staff can help answer that question,
Speaker 245
1:02:48
Mr. Archer General F fund's annual revenues for 2025 were just roughly
Speaker 222
1:02:52
north of500,000 as well as their expenditures so about500,000 you divide it out it's about42,000 a month total each way we are in the no sir that's just general fun
other questions if not chair would entertain a motion to file this report Representative Mcellroy makes a motion as your second Representative Duffield has 2 if not chair would entertain a motion to file this report Representative Mcellroy makes a motion as your second Representative Duffield has second with odd favor say aye opposed report will be filed. thank you both for coming. we appreciate you your candor and your service and ma'am I wish you a great retirement when your
successor fixes everything. I appreciate every time I come
Speaker 162
1:03:39
up here I get one more trip before I get out of here thank you ma'am back to
Speaker 6
1:03:49
our back to our deferred deferred reports on page three. we got the city of Fouk 2024 under the mayor I think we've covered his lack of water report we'll skip that one the governing body did not document the review of the prior report and accompanying comments at the first regularly scheduled
meeting follower received the report as required by code and the street fund disbursements exceeded budgeted appropriations by $27,000 and non compliance with code. this is this both of these are repeat findings Did the mayor leave? OK, well staff still recommends we file. I think he answered
Speaker 35
1:04:23
the most for far as staff's concerned he answered the most important question but that'd be at the will of the committee whether we file or without objection we'll file that report
Speaker 6
1:04:43
on number5 on page 5 and6 we have the town of Mount Vernon 2024. Mayorjonathan Hawkins was
Speaker 24
1:04:48
invited here today. He had a conflict and asked could he be deferred till till the September meeting.taff recommends
Speaker 22
1:04:55
that we defer without objection it will
be deferred boy September is going to be fun y'all y'all don't want to
Speaker 6
1:05:06
miss it on pages7 and 8 we have7 private water reports that we have yet to receive proper responses for
those would be highway4 and24 water Mcree municipal waterter for 24 Van Buren County for 24 west Salinene for 24 western grove for 23 andilmar for 23 and22.taff recommends that we defer these reports and the time we get a proper response. without objection they'll be deferred
on page se we have Montrose Water and sewer department 2024 which is a private report just this week we received a a proper response for them staff recommends that we file this report without objection it'll be filed OK on pages on pages 9 and 10 we have one report that was referred to the bonding board. I was certified as the bonding board and referred to the prosecuting attorney and the attorney
general's office and it was Phillips County 2024 County Ju Clarkhall was invited here to be here today and he called and said he had a conflict in asked could he have this report referred ti September.taff recommends we defer this report well that's good because I've got some questions for her especially on
almost $10,000 of prepaid phone cards but we'll we'll ask the mayor when he gets here or the county judge when he gets here without objection it'll be deferred till September
Speaker 6
1:06:48
on page 11 we have one report that was referred to the attorney general's office and it's union County 2024 again on page 11 under the county clerk a review of three months of credit card transactions made by the office of the prosecuting attorney revealed just over $1000 in snacks and other food related items purchased for the PA's staff office staff in apparent conflict with Article 12 section5 is interpreted by attorney general opinion 91,410. Additionally due to delay in
receiving documentation from the prosecutor's office. The county incurred late fees and interest of $100. Again this will this finding has been
Speaker 23
1:07:24
referred to the pro to the to the attorney general's office there are no questions staff recommends that we file this report without objection it'll be
Speaker 6
1:07:41
20 reports that were referred to the referred to the prosecuting attorney and the AG's office starting with the city of Crossett 2024.
under the clerk treasure on May31st to 24, the city discovered that an employee's payroll direct deposit had been fraudulently diverted to another bank account. After the employee contacted the city about not receiving the payroll direct deposit. It was determined that the city made a direct deposit change after receiving an email request from the that appeared to be from the employee's email without verifying the authenticity of this request. Transaction results in a loss of just over3,000 dollars to the city. Again this finding has
been referred to the PA and the AG there are no questions staff recommends we file this report without objections we'll file the report en you on page 12 the city of Fairfield Bay2024 under the mayor and quarter treasurer. the city expended just over $2800 for a catered meal not associated with city business and apparent conflict with Article 12 Section5 as interpreted by AG's opinion 91,410. This finding has been referred to the PA and AG staff
recommends to file this report if there are no questions. objection it will be filed on pages 12 through 18 have the city of helena west helena 2024 treasurererrek Turner and lark Sandra Ramsey who invited here today both called and said they had transportation issues and requested that we defer this report are no questions
Speaker 24
1:09:14
staff recommends we defer. Like I said September is going to be fun.
get your tickets early without objection this will be deferred till September. page
Speaker 6
1:09:30
19 of Jefferson County 2024 under the county judge during the review of contracts and bids we noted the following competitive bids were not solicited or resident trash services has required barkansas code. The county contracted with the company through December31st of 2024 under a fiveyear contract that had been extended multiple
times since 1994 with the option to renew on December5,2024 contract was signed with a new vendor to begin service on January1 of25. Emergency order court order was issued for this contract on December 10th of 2024. The merger order being prepared after the contract appears to be in conflict with Arkansas code.bids were not solicited for county road trash cleanup services totaling68,000 dollars in noncompliance with code.
Competitive bids were not solicited for the construction project for a road department in the amount of $178,000 noncompliance with code. The county did not report disposition of
Speaker 24
1:10:36
a county owned building to the corn court as required barkansas code. Additionally, although bids were advertised for
Speaker 6
1:10:42
this project it was only published in the newspaper one week in noncompliance with code. Furthermore, the scope of the work performed was not in accordance with the bid requirements advertised.
On February 10th,2021, the county paid over305,000 dollars for the installation of solar panels on three county buildings as of the report date the panels have not been installed in noncompliance
Speaker 24
1:11:09
with Article 1elsection5. This is a repeat finding hold on hold on a minute
there Joe it's a repeat finding that they didn't because this is this the
Speaker 273
1:11:25
same installation or it's a ok could
Speaker 274
1:11:30
it sounds like we've they didn't pay and
Speaker 275
1:11:34
then they had another installation no sir it's the same
Speaker 6
1:11:39
same same transaction ok all right thank you. please continuetinuing on page 20, the county provided catering services for 100 meals at $15 each plus additional meats and fees for a total of almost3,000 dollars for the road for a road department safety committee. The sign-in sheet provided listed45 attendees some of whom were neither ro department employees nor county employees should be noted that39
individuals are paid from the road department during 2024. under the county judge and the county clerk. Arkansas code requires management to maintain adequate financing records. financial statement contained misclassifications of county judge expenditures totaling almost $900,000 noncompliance with code which requires county management to maintain ad accurate financial records. The effect of these errors constitutes a controlled deficiency in the process of preparing financial statements.
Records were not adequately maintained or filed in the county clerk's office in noncompliance with the Arkansas code as follows Lease purchase agreements and service contracts entered into by the county judge and documented pertaining and documents pertaining to bids were not filed with the county clerk. Contract for Mack ruckx was awarded and payments were made prior to issuance of court approval. This is a repeat finding. I have a question on that Mr.
Archer of course the county judge the
county court makes can of course this has to do with the road department I presume so the the quorum court doesn't have to act on that that's simply within the purview of the county court. is that correct? he can do it has the authority to
Speaker 116
1:13:20
enter into contracts on behalf of the court within certain pres and that and that's a road item yeah ok please continue on page 21
Speaker 215
1:13:27
under the sheriff. County policy requires an
Speaker 6
1:13:32
employee to work continuously for the county for one year or more to be eligible for vacation leave payout at resignation. during our examination the leave payout we noted that two sheriff's department's employees were hired, resigned or rehired and resigned again were paid for vacation leave upon both resignations. even though neither had worked continuously for one year for the county at the time of the resignations as a result, overpayments of these individuals total just over
Speaker 100
1:14:03
$1000 and just under $2000 for the year ending December31st,2025 and24 respectively County clerkandrahiwanda Taggart
Speaker 24
1:14:12
was invited here today to answer questions Miss Tagggart do you want to join us
please sit and introduce yourself for the
record and gentlemen please you do the same thing
Speaker 281
1:14:36
good afternoon. I am Shandra Taggart, Jefferson County
Speaker 282
1:14:40
clerk Lloyd Franklin chief of staff to the new county judge Ivanwhitfield. he's here also. OK so the
Speaker 284
1:14:47
judge is here is here oh the new age OKok I know that took me a
second for it to register and you came out I believejud in in injuly is that correct? OK all right thank you. OK, go right
ahead ma'am. I'm sorry. can you
yes yes sir well let's judge if you'll also introduce yourself and we'll we'll share the mic as it works out. I'm Ivin Whitfield, the interim county judge Jefferson
Speaker 287
1:15:19
County. OK, thank you judgedge. All right ma'am you're recognized so my office does have
Speaker 283
1:15:24
policies and procedures and my deputies are aware of that this particular deputy chose to well I guess was basically to me corrupt and follow the judge's lead and did what the judge told her to do but we do have parts and
Speaker 288
1:15:38
procedures the previous judge yes the previous judge sorry Judge we'll keep thattri
you sir it has been resolved. I've
Speaker 281
1:15:45
gotten rid of that employee and the judge hired her. OK all
right. Well we had a lot of things here committee questionspresentative Cooper looking back
Representative Cameron Cooper
Unverified
1:16:00
on come back on page nine on these solar panels the county paid305,000 dollars for installation of solar panels
on three county buildings and that was February 10,2021. so that's been5.5 years ago and the panels are not installed can y'all let us know what happened? Did that company go out of business? what
exactly is going on with that
Speaker 282
1:16:25
so that was that was actually a self reported finding when I was on theorum court 2024 we reported that the legislative audit that the solar panels had not been installed. do believe that last year during the audit reportings here at this
committee had the same findings and they referred that particular finding to the ag's office and the prosecuting attorney so this is just a repeat finding that we still have not resolved the issue and they're not there so but I think that's currently in the hands of Ms special prosecutor Ginahirell in the AG's office the
Representative Cameron Cooper
Unverified
1:17:01
city did pay the305,000 and there's no solar panels correct I'm sorry so the
staff do you have any any idea on what's going on with that
Speaker 23
1:17:13
there was a contract it was part of the building of those three buildings if I remember correctly and again he Mr. Franklin is correct they they did notify us of that and we're carrying it forward because it is an open investigation and it is you know, such a large amount of asset that's missing but if they're not there as of the report date we we check every year to see if they've installed them yet. so there's no
solar panels in any of these three buildings yet still no solar panels and and
Representative Cameron Cooper
Unverified
1:17:45
the prosecuting attorney is investigating that is that correct that's correct thank you other questions don't anybody jump in at once. Mr.
Archer are there other items we need? I mean shall we file this report that's what the recognition of the staff just to file the report OK without
Speaker 17
1:18:08
objection we will file the report. Appreciate the three
of you coming. thank you for coming
Speaker 6
1:18:19
Laa. thank you so much continuing on page 22 we have Montgomery County 2024 under the county judge, the county donated $19,000 from LATC funds to local nonprofit organizations in a in a arent conflict with Article 12 Section5. there are no questions staff
Speaker 17
1:18:37
recommend that we file this report I have a question sir
Speaker 38
1:18:47
what is a local assistance tribal consistency fund set up to do
Speaker 24
1:18:52
those are one of the arpa funds arpa funds that's the proper name forarpa funance. Oh come up the
Speaker 303
1:19:03
second as the second go round of you think that was what the second version of the opppera funds was entitled. well they changed these
names and that gets me very confused. I just get used to one name and then there's a new one but anyway
Speaker 88
1:19:18
righty with that objection we'll file that report continuing on
Speaker 6
1:19:22
page 22 we have the hopepe Water and Light Commission2025. This is a private report. The Hope Water and Light Commission spent over5100 dollars that failed to satisfy the legal criteria for a valid public purpose in compliance with the Arkansas publicur doctrine. These items consist of employees hams, turkeys, other food for Thanksgiving, Christmas and other events corporate dues,
bereavement flowers and gift cards for employ ee ' s appreciation There are no question this this report had been filed to the prosecutor and turned to AG's office there are no questions staff recommends we file
Speaker 17
1:20:05
this report without objection it'll be filed page 23 of the city of de Queen2025.
Speaker 6
1:20:10
The mayor, the city donated $25,000 each the coststock Community College for soccer fieldelrovements and the She Countychambers of Commerce for mold removal, an apparent conflict with Article 1el
Section5. This finding has been referred to the PA and the AG there are no questions for staff recommends we file
this report Uhtru when it says soccer field and who owns the soccer field the college to un ity collegelege all right
Speaker 305
1:20:40
thank you without objection it'll be filed 10 you
Speaker 6
1:20:43
on page 23 the city of hudd2024 under the mayor and CFfo elected recorder treasurer resigned her
position as office manager on June30,2024 and was paid over $2000 in unused vacation Leave records were not maintained so we couldu we were unable to verify the validity of this payment. Subsequently she was she received a700 dollars bonus that was not appropriated for her elected position. This report's been filed by the PA and the AG there are no questions staff recommends we file this report. I have a question it
said she resi she's an elected recorded treasurer but
resigned her permission. herr position as office manager are those not one and the same did basically did she say I give up this worker's office manager that she's paid for but remained as recorder treasurer that's if you don't know it's perfectly ok I'm not sure but that
Speaker 26
1:21:42
is my understanding. So two separate positions two ok that that does
answer your question we'll just presume that's correct. any other questions without objection it'll be filed
Speaker 33
1:21:55
10 on page 23 City of Reno 2025 under the mayor and recorder treasurer on June 18th
Speaker 6
1:22:01
of 2025 unauthorized withdrawal of $40,000 was made in the city's bank account to a former employee's personal account allegedly after this individual's account was compromised. the individual discovered the unauthorized withdrawal and notified the bank and the city officials. Funds were recovered from the bank the same day. Staff recommend this report was referred to the prosecute and turned the AG's
office staff recommends we file this report. there are no questions So so the
employee was not was a victim and not a perpetrator. Is that fair to say Joe that's a story we've got
yes sir right prosecutor will work that out this is
Speaker 309
1:22:47
called passing the buckri. they got their money back so
Speaker 118
1:22:49
we didn't dig too ok well that's good. without objection that'll be filed
Speaker 6
1:22:59
of the city ofRockport 2024 under the mayor in March of 24 the city disbursed5,000 dollars to the police chief who stated this amount was for cop time earned. However, the city does not have a policy regarding paying officers for comp time. the police chiefs Co time balance decreased in March of 24 ands after the city dispersed dispersed payment and returned his prior ballots in april of 25 after the police chief
reimbursed the city5,000 dollars in cash which was deposited in general fund. City personnel indicated that the mayor and a council member authorized the payment to the police chief. However, authorization was not documented in the council meeting meeting minutes. Transaction appears to be in conflict with Article 1el Se ction 5 which prohibits cities from loaning credit to individual a review of disbursements revealed that supporting documentation was not maintained for the fallen disbursements in noncompliance with the Arkansas code.
Speaker 100
1:24:00
just over3,800 dollars or 12% of disbursements in 2024 due to the lack of documentation, the validity of these disbursements cannot be determined. This is a this is a repeat finding archer it appears that
this because comp time is what you get you don't get overtime you just get additional time off. that's what comp time means to me. Maybe I'm missing something. It sounds to me like this was a
it appears to be basically a short term
loan interestfree I mean maybe you're missing something
Did I miss something? Is that would that be a plausible presumption we referred that to the prosecutor in turn
Speaker 35
1:24:50
in the A's office and that's their job to make that determin OK well it's a prohibits cities from loaning
credit to any individual so we'll let them figure that one out without objection that'll be filed
Speaker 6
1:25:08
page 26 where the Miller County 2024 under the county judge doing our examination of a construction contract we noted the county did not comply with requirements contained in Arkansas code Contract for reroofing the Miller County healthalth unit was executed prior to the county advertising for bids although the court order was issued explaining why the company was awarded the contract, it should be noted this company was the highest bidder. Bid documentation for theiller County Health unit Off for
renovations could not be provided for the company that awarded that was awarded the contract. ree of the 9 contracts reviewed were awarded based on quotes received prior to the county advertising for bids. Additionally,8 of the nine contracts reviewed were not recorded by court order or filed with the county clerk as required by Arkansas code under the tax assessor using using a county vehicles the county assessor drove 949 miles for a personal vacation in June
of 2024. According to AG's opinion 200-243, the county the county the the personal use of a county vehicle is permissions will only when it is incidental to the use that fulfills a public purpose 63 $6 calculated using the RRES standard modest rate was not included in the assessor's wages or reimbursement reimbursed by the assessor for this trip as outlined by RS publication 15B. Additionally the assessor acknowledged that the county vehicle does not display the
Miller County seal as required by county policy. both of these findings were referred to the prosecutor in AG's office if
Speaker 17
1:26:52
there are no questions staff recommends we file this report without
Speaker 6
1:27:01
objection this file OK on page 27 we have three private reports, all three for the city of Carthage Water Department for 2423 and22. all three
contained findings that have been referred to the prosecuting attorney. the 24 report found no documentation relating to three separate employees reimbursement and mileage reimbursement 23 report the receipt reports maintained by the water department did not agree with daily deposits for cash check 22 the receipt reports that would be the same finding in 23. We have not received a response for these findingsjet staff
recommends we defer this until which time we can get responses without objection they'll be deferred page 28 we have a case of water department 2023. This is also a private CPA report we noted that the employee received a supplemental health insurance payment as a reoccurring basis for which management could not locate documentation specifying the terms of the agreement. The mayor signed each of the checks to the employee which totaled4,000 dollars in2023.
Speaker 17
1:28:18
This finding has been referred to the prosecuting attorney in the AG's office if there are no questions staff recommends
Speaker 6
1:28:32
we file this report that objection it'll be filed The H regional wastewater systemste 2024 also a private report There were no supporting documentation for official check in the amount of $9200 withdrawn from the depreciation reserve fun Her conversation with the manager. this was the purchase
of a mower to maintain the sewer plant property. This finding has been referred to the prosecutor in the AG's office. there are no questions staff recommends that we file this report without objection it'll be filed. The Leola Water and Sewerystem 2025. another private report. the following ive deposits did not agree with the corresponding daily receipt reports. These5 deposits totaled just over40,000 dollars This fine has been referred to the PA and the AG there are no questions staff recommends we file this report. objection
it'll be filed magazine water and sewer department 2024, another private reporthrough the payments selected reported on the billing payment report could not be traced to any deposit, cash or check, credit card or draft bank draft resulting in an overstatement of these payments according to the billing records. Further review indicated that a reoccurring shortage of bank deposits as compared to payments recorded in the billing account. This
finance has been referred to the PA and the AG Arnold question staff recommends that we file this report without a rejection it'll be filed magazine water and sewerage department 2023, another private report we did we did find exceptions as a result of these receipts procedures those procedures and question would be the check cash composition test tracing receipts to deposits and agreeing the proof to the recorded treasures, I mean to
the cash receipts journal. These findings may referred to the prosecutor in turning the AG's office
Speaker 17
1:30:26
there are no questions staff recommends we file this report without objection it'll be filed The
Speaker 6
1:30:34
Norman water and sewer department 2023. it's a private report we have not received a proper response from Norman yet staff recommends we defer this report without objection it'll be deferred
Speaker 35
1:30:52
on page 29 we have 8 reports that have repeat findings starting with the city ofermont
Speaker 6
1:31:00
2024 under the mayor, county procedures for municipalities are set forth in the municipal county law Article 12 I mean Arkansas code annotated 1459101119. The county was in noncompliance with these codes and other proper accounting procedures as noted below. The bank reconciliations were not approved by minsal employee or official other than the preparer
bank reconciliations were not properly prepared for three accounts adequate sporting documentation was not provided for6 out of60 tested disbursements totaling $13,000 or5% to vendors that appear to be for legitimate business purposes prenumbered checks were not always issued in sequential order cash receipts and disbursement journals were not properly posted. Financial statements and council packets were not always provided to city council members on a monthly basis. a lack of
management and oversight permitted these instances for of noncompliance with missipable county law and proper county procedures. The effective not following municipal accounting law and proper county procedures precludes management for making appropriate informed decisions on behalf of the city this is a repeat find in the previous three reports city paid a total of just over $1000 for late fees and conflict to the public public purpose doctrine as discussed in attorney general's opinion 91,410. this is a repeat find in the previous two reports
Check image provided by the bank we're not in compliance with the Arkansas code for one fund. This is a repeat find in the previous two reports Mayor Walter Jordan is here today to answer questions Mayor can
you come forward and introduce yourself for the records nameme
Speaker 314
1:32:50
is Walter Jordanermont, Arkansas mayor I had a question about
that last issue on on the the the checks now that's something that the bank does in your statement as far as the
copies and so has that been rectified by the bank? yeah that's been rectified OK. other questions for Mayor Jordan. OK that recommends we buy the staff recommends we file the report without objection it'll be filed. Mayor, thank you for
coming to speak to us Is that it? sir thank you thank you and
you know that was worth the drive up here. you'd be safe going home was fine but then walk
Speaker 136
1:33:44
up that hill alrighty just learned it last year on
Speaker 6
1:33:48
page 31 continue with reports with repeat findings we have Stone County 2024 under the county judge and county circuit clerk preparation ordinance approved
by the quorum court were not properly posted the appropriation journal in noncompliance with the Arkansas code. This is a repeat finding. County judge
Speaker 24
1:34:06
was invited here today but he had a meeting so he couldn't attend but county circuit clerk Angy headadste is here today to answer questions. Hub the
Speaker 140
1:34:15
excuse me probably still but welcomelcome ma'am and turn your mic on and
introduce yourself for the record Angyhudspeth Wade County and circuit clerk in Stone County
please proceed ma'am you have
Speaker 319
1:34:35
a statement I had a the same findings similar for two years in a row I had3 employ three different employees at that desk from 202 to2023 and2024 and I take responsibility, my training should have been better it's it's what it was is I don't know if y'all are familiar with entering
transfers versus appropriation ordinances but in my system if it's a transfer you enter from a line item to a line item or if it's just an appropriation you don't put anything in from you just put it to two where the money is getting appropriated and I had some issues with them getting put on the wrong whether it was to or from and like I said I had
different employees but it was my responsibility for the mistakes and I have went over 2025s already and I'm retiring at the end of this year after30 years. this is my first time to be here but I got to take my mistakes and I'm going to try to make sure that for the next person that it doesn't happen again so you've been in that position for30 years and it's the first
time you've had to come up here I've
Speaker 319
1:36:05
worked in this office for30 years, yes and this is my first time and may and December31st I'll be retiring so I'm excited about that but retirement and I assume that the procedures in place to
keep this from recurring. It is yes sir thank you ma'am. any questions by the committee?
if not we'll file this report and that objection. thank you ma'am for coming and happy retirement. Thank you and real quick like you said my county
Speaker 319
1:36:35
judges at the meeting in Hot Springs will somebody I did talk to my leg got at people about whether him not coming or not will somebody let him know if he still needs to come at the next meeting or how will we know that they've voted they filed the report and since it was a joint
Speaker 222
1:36:53
finding we're going to let you take full responsibility and and it was not his fault as
Speaker 319
1:36:58
bad as I hate to admit it, he except for being the administrative part. it was not his fault so
I just wanted to make sure he doesn't
Speaker 118
1:37:09
get another letter he won't be required
Speaker 212
1:37:12
to come. OK thank you next time we'll put it on him because he
Speaker 321
1:37:16
won't be thank you thank you ma'am OKok on
Speaker 6
1:37:22
page 32 the town of casesa 2024 under the recorder treasure counting procedures for municipalities are set forth in Arkansas code. The town is in noncompliance with these codes and other proper kind of procedures as noted below. Fixed
asset listing was established but records were not updated. Cash was ceed journal for not properly maintained and there was no reconciliation and not reconciled to total deposits for the general fund street and fire funds. This is a repeat finding. they have a new recorder treasures staff recommends that we go ahead and file this report without objection it'll be filed we went over to page34 where the city of Goul 2024 under the
mayor bank reconciliations were not approved by municipal officer official or employee other than the person preparing the bank reconciliation noncompliance with Arkansas code. This is a repeat finding dating back to 2017. Mayor Hazel Pruitt is here today to answer questions Welcome mayor. please identify yourself for the record. Hazel Pruitt, mayor of
Speaker 323
1:38:32
Goul Arkansas can you hear me yes ma'am
Speaker 324
1:38:42
we cited for the clerk the clerk that did this this
Speaker 323
1:38:54
reports she's no longer there we have a new clerk and she was a farmer city council members in the the records the minutes of being kept she's getting them
completed in a timely manner and then the recorded treasure that was there they got us into this and I did too because I didn't know what was going on they broke it recorded treasure thing up and they had a bookkeeper and she's experienced her name is aliciahoins she's a she's experiencing government procedures because she's been working for Star City a long time
and we're hoping that to stay on top of this that we were can correct this problem that's all I got unless you got something else you want me to address so
you you've got someone now that's straightened that out then
Speaker 323
1:40:09
mayor M Alicia Hawkins she's been working in Star City bookkeeper recorder treasure for
a long time and they hired her any other
questions for the mayor? If not the objection
we'll file the report. Thank you mayyor. we appreciate you coming up here
Speaker 5
1:40:29
thank you can you know page34 of the city of Parkdale
Speaker 6
1:40:34
2024. mayor Latrice Taylor were invited here today. she was having some transpar transport transportation issues today.taff recommends we defer this report if she can be here with that
objection it'll be deferred on page 35 and36 we have the town of Wabaseka 2024 under the mayor a audit agreed upon procedure report has not been obtained for the town's water and sewage system for the years 2016 to2023 is required by code. We actually received this report on June3rd of 2026. so that one's been taken care of under the recorder treasure the county procedures for
municipalities are set forth Arkansas code the town was a noncompliance with these codes and other proper accounting procedures as noted below. Cash receipts and disbursement journals were not properly maintained for all funds. bank reconciliations were not properly prepared for two funds bank reconciliations were not approved by someone other than the prepare for two funds receipt books were not properly maintained for all funds invoices and supporting documentation will not maintained for disbursements of
$831 due to the lack of documentation, the validity of these disbursements could not be determined numerous disbursements were made by debit cards rather than free number check. lectronic disbursements were made without proper approval by town council by ordinance and without establishing a written policy and procedures Checks did not contain the signature of two authorized and dispersing officers
Speaker 6
1:42:22
so that's that's 19 years page3636 on the quarter mayor of the quarter treasury the following payroll issues were noted.town failed to remit payroll taxes for reporting period dating back to 2015. The RS review of RS notices indicated unpaid federal payroll taxes, penalties and interest totaling $267,000 consisting of 167,000 for the town 90,000 for the water department at the end of 2024. the town met with IS on
September 9,2025 and and it's in the process of setting up a payment plan. This is a repeat finding for the previous 10 reports dating back to 2012. RS formed W3 and quarterly payroll reports 941s were not in agreement althoughchedule one of this report shows that any gentle fund balance of 2200 dollars.view of records reveal that the town owed significant amounts to the IRs. Furthermore, RS quarterly tax payments were
not paid for 2024. It's shown in note5 on schedule3 of this report when the outstanding amount is considered. General's fund has a deficit of fund balance of over $174,000 at the end of 2024. this is a repeat find in the previous five reports dating back to 2018. Mayor Andrew Goodlow and recorder treasurer Jennifer Moore are here today Y'all would please come forward
Speaker 165
1:44:02
welcome please introduce yourselves for the record. andrew Goodlow
Speaker 328
1:44:11
mayor Wabasickijennifer Moore recorded treasure for the city of Waahia. Thank you both I see her it says that you've been working
with Congressman Westerman's staff and I know he he will help you as he can but you know he can't write a check for whatpaiy'all got to come up with this where where do y'all stand on that with the IRS? I
mean of course we at the state we can't do anything you got to work it out with them can you tell us where you
Speaker 329
1:44:46
are on that right now as of the first last of what august July we received a information from the staffer at IS for Mr. Jimmie Clark and we're working with him to get the documentation back
into him that we had been missing and we got into the 22nd I believe of august to get everything back into him to be in compliance with them and then at that time he would set up a payment plan for us once we get all the documentation back in
mayor Senatorhammer has a question. you recognize senator thank you and thank you all for
Senator Kim Hammer
Unverified
1:45:31
being here today we appreciate your presence just curious did
you inherit this? how long have you been mayor and did you inherit this or is this
Speaker 329
1:45:44
occurred under your watch? I was elected mayor in 2023 January start serving January1st2023. the majority of it we inherited and once we got to knowing how to and to make this process we we'd start making payment plans and we haven't missed one since so we
are current with as of now like I said we hadn't missed one since we started doing the payroll taxes and stuff once we got it all mapped out and whatever we we now making them on time every two weeks now one thing it seems to be consistent
Senator Kim Hammer
Unverified
1:46:26
in here today as a lot of theseirRS problems
have been inherited because of previous administration's actions and I don't know just wanted to bring that out it seems like
like there's a pattern of inheriting the predecessor's mistakes that may not be 100% against everything and when you talk to theirRS and I'm curious if maybe staff can wear in I don't know so I'm asking what what's theRRS threaten you with if you don't pay the the back taxes? what do they
threaten you with? Well to mean to to mean to being
Speaker 329
1:47:14
I think they used the the way your land property whatever property you see in your property not able to sell and also not able to apply for certain grants and loans but as long as you're under a payment program that
Senator Kim Hammer
Unverified
1:47:32
that wouldn't be that you're you're not under the threat of that my understanding that as long as
Speaker 329
1:47:39
you underpayment plan you won't be threatened with that all right
thank you all for being here today Representative do you have a question? Yes
Representative Johnny Rye
Unverified
1:47:52
sir I do, Mr. Chair.cod thank you sir ir this 267516 are y'all paying month by month the way that we're supposed to pay and then are
you going back and paying a certain amount on the old bill we hadn't paid any on
Speaker 329
1:48:08
the old bill yet because we hadn't been set up
Speaker 328
1:48:11
on the payment plan yet but we we pay biweekly now
but y'all are working toward that I guess. yes ok thank you thank you
Mr Chair thank you Senator hammer you got a follow up question. Thank you and I
Senator Kim Hammer
Unverified
1:48:26
want to direct this to staff and and I asked you a question a while ago about and I've forgot what city is it doesn't matter that the mayor was straightening I do remember what see I just don't want to call their name out that that they were working on straightening out what they had inherited but when a when a previous administration
whether it be the mayor or the city council like in the case of what we heard a while ago the mayor recommended that that money be paid down because that should have been money that should have been paid in the first place so that means that those those employee taxes were taken and used for something else. do you have a history of that being turned over to the prosecutor in that was turned over to the prosecuting attorney is that correct? probably would not have been unless we could track
Speaker 17
1:49:19
that those those funds were spent on something that the law didn't allow. Most of these cities that do this they're keeping this money to operate on. they're paying the actual salaries they're paying the utility bills is what is what we see these these funds if there were some sort of fraudulent activity we'd report that in
Speaker 222
1:49:37
a different finding that would have been referred to the prosecuting attorney. Are are you are you
Senator Kim Hammer
Unverified
1:49:43
aware of any law on the book that prohibits a city from redirecting money that was
collected from employee taxes to be spent on anything else? Is there a law in the
Speaker 17
1:49:58
book that prohibits him from I'm not aware of a state law, no sir, because that's those those taxes are withdrawn based on federal IRS regulations. so those that would be where that would fall I would think don't know that for sure but
Speaker 338
1:50:11
that would be a RS audit payroll audit but that only applies to the
Senator Kim Hammer
Unverified
1:50:16
federal employee taxes withheld? What about the what about thedFfa the money that's remitted to the state for the state withholding. This
Speaker 23
1:50:22
finding doesn't mention any of that this is all IRs findings they we must have record of them paying those the state
taxes so you would presume Mr. Archer that they remitted the state withholding todFNA but did not remit the federal withholding to the IRS. Is that at least a presumption we did not we did not draw an exception to that
Speaker 7
1:50:42
in our in our findings but you would have if
Senator Kim Hammer
Unverified
1:50:47
other instances yes ok so so all these conversations we're having today about the IRS and refresh my
memory I guess I don't remember anything involving the state withholding that would have been paid todFfa so they're paying to the state but they're not paying to the IRS. is that right in inwabasuga's case yes. one of
Speaker 23
1:51:05
the other findings today we did mention some DFfa payments. I'd have to go back and look which one it was one of them we did also have made note of that so if if we did note it during our review we would we would note
Speaker 12
1:51:18
the difference in the two but there's no law on
Senator Kim Hammer
Unverified
1:51:21
the books that says that they can't use they
are prohibited from using money that's collected from state or from employee taxes for other purposes at thedFfa level or the ir R S level not that I'm aware of that might be a good piece of legislation. I won't beenator appreciate that would keep you guys from inheriting a mess if there's a law that said you can't redirect those funds because those funds were paid by those employees and paid by the city and you other folks weigh in on this if you want to but that would prohibit
like your generation from inheriting the sins of previous generations that that didn't use that money and I get it you're a small towns one grocery store, one restaurant, I get it but it's also not right to those that are coming behind to have to inherit and pay off somebody else's debt that was correct because they didn't solve the problem some other way so wouldn't you agree? Thank you would agree did you have another question Representative Wright
Representative Johnny Rye
Unverified
1:52:26
you're Mr. Chairman I do you know if you go back and look at the process that we have been going through. if there was any money out there you know we we always made sure that the road money went to the roads and we've had a whole lot of that that's happened now do you see anything that's kind of comparable with what we're going through here compared to that situation with the road money that actually was probably put over in the general fund and may have been spent for
something worthy. I mean I don't know
are you directing that question to the chair yes
sir am I'm not 100% sure representative Fry but I do see a pattern of basically and private
companies and individuals do the same thing it looks it appears that these these cities are basically have a
cash flow bind and they're borrowing from one fund to cover the other with a certain hope of
it being short term but just like when we do that as individuals we're sometimes you know there's a day of reckoning so I I presume that we're seeing that and you're looking at the same thing I am but again as Senator Hammer is pointing out it's not right when you're you're using that employee that was the employee's money that that that the any employer whether it's a state or a private employer or or city their responsibility is to remit
that to the taxing entity or if they don't do it they're in violation of it at least the IS regulations if not federal and possibly state law but we'll find out Senator Hammer if there's a state law that parallels that and you've since you're not going to be around to help me next year with it we'll have to figure
out how we're going to do that but but I'll havepresentative Rye here and I'm with duffield and and I was no Senator Wallace would be with me on that
Representative Johnny Rye
Unverified
1:54:28
but you know Mr. Chairman, I think that that was a good place to throw that in because both those payroll taxes that's a serious situation there and the IRS looks at it that way and is my
estimation. thank you sir other questions Staff recommends we file this report staff has recommended we file the
report without objection it'll be filed Mayor ma'am thank y'all for for coming today. we appreciate you coming up here you
Speaker 6
1:55:02
on pages37 and38 we have six reports without proper responses they would be the lakeside Water association 2025. Jefferson Public Water Authority2025 Sparttis goose Kemp Water 2024 Valley Springs Water 2024 Western Grove Water 2024 city of Wilmar 2024. all of these are private CPA reports staff recommends that we defer these report s until which time we have a proper response without
objection they'll be deferred on pages39 through46 we have34 reports that have findings with with res that have been resolved staff were that request that y'all take a few minutes and look at that and if you have no questions staff recommends that we file these reports
Chair
Unverified
1:56:18
Mr Chair have a question for Representativealby you recognize thank you Mr
Representative Carol Dalby
Unverified
1:56:23
Chair Joe you said that all of these have responses but on page 39 right off the bat the city of Stuttgart there's not there's a finding but no response Garland County there's a finding and no response. if it's underlined that means we had a proper response to it. you
Speaker 23
1:56:41
just didn't know that we don't normally these we do not include in the report unless they're a repeat or a PA finding
indication by the underlying underlying of the finding the ones that we do include there are private reports if you'll see the the difference Stuttgarard we did arland County we did the city of Marion we do not do it's a CPA report so we include their findings their responses to the local to
Speaker 7
1:57:10
the private reports but not ours we just underline them has everyone had adequate time to glance at these'll'll hold
on a minute or two if you want to look at them some more
I have a question Mr. Archer on
page 43 with Salem Water users association said that about uninsured cash balances could you explain that that means there are funds at the bank work
Speaker 23
1:57:45
collateralized properly. They were over the the minimum required by the I mean provided by the government OK all right
thank you any other questions on these? Senator hammer you re
Senator Kim Hammer
Unverified
1:58:04
so that's like they have funds in a financial
institution that's above what is federally guaranteed by the government is that correct? That is correct, sir. Are they required as a result of this to get that money moved around to where they are or how do you address that
Speaker 17
1:58:22
or they can get additional coverage from the bank. The bank will give them a certificate that says they've moved money within the bank to different
Speaker 23
1:58:28
institutions and they provide them with that safekeeping receipt to show that it's it's putting other banks that's that's normally the case
they don't really move the money they keep it all in one bank but then the bank it falls they're supposed to ask the bank to move their ass et s around so that they're covered in other banks for the bank.
Senator Kim Hammer
Unverified
1:58:49
case or could you just offline you can get it for me and let me know please.
Speaker 341
1:58:54
right and that was you said page that's please thank you sir we'll get
Speaker 347
1:59:06
that to you any other questions on on
Speaker 263
1:59:13
these? if not without objection we will file all of them we'll make some notes real we
want you to make sure you get this
down I hadn't thought about that but I guess you know you got a balance and you need to have it in an FDIC or equivalent insured financial institution and there in the worst case scenario that money would be lost so this is a
Speaker 5
1:59:37
that's a good idea that y'all check that OK on pages47 to51 we have 155 reports that had no findings staff recommends that we file these reports that objection they'll be filed
I'm done you're done so we don't have anything on this one
my it's only3:30 and I think we've actually may have gotten any any other business or any
Speaker 337
2:00:32
questions or any other business uhpresentativeduffield thank you Mr. Chair.
Representative Matt Duffield
Unverified
2:00:38
had a procedural question for staff when this committee asks that a mayor or a member of any of these entities come before this committee. How are they
contacted and how soon in advance are they contacted before our meeting date. The Friday before
Speaker 17
2:00:57
Tina the Friday before they were mailed a certified
Speaker 35
2:01:00
letter that same day I contacted all the regional supervisors and give them a list and they contact each and every one of them personally if they if it two weeks two weeks to Friday prior to
Speaker 17
2:01:13
so two weeks out from tomorrow they are sent a certified letter and then we reach out to them
through the staff at some point and we try until we contact them and phone or in phone email however we can get a hold of them in person sometimes to verify that they got the letter and that their their intentions so we'll be prepared OK thank you right other questions other business
if not we will meet next month. I think that's what's the date on that September th September 10th I expect that to
be a supposed to be down back in our old room is what I'd been promised m glad
to see all this work is getting done and we'll look forward to seeing y'all and hopefully representingalmack and Senator Stone will have a good time next next month if that objection we're adjourned
Agenda
A. Call to Order by Chair
B. Adoption of Minutes of June 4, 2026, meeting
C. Update on Private Reports – Delinquent December 31, 2022, Water and Sewer Reports
D. Update on Private Reports – Delinquent December 31, 2023 and 2024, Water and Sewer Reports
E. Update on Private Reports – Delinquent December 31, 2024, City Reports - Bauxite
F. Discussion of Noncompliance with Municipal Accounting Law – Fargo, Ulm, Lead Hill, and St. Joe
G. Review of Reports (Refer to the Synopsis)
H. The next meeting of the Legislative Joint Auditing Committee will be held on September 10, 2026.
I. Adjournment
Documents
No documents posted.
Speakers
Senator Mark Johnson Chair
Unverified
Speaker 5
Speaker 6
Speaker 7
Speaker 12
Speaker 17
Speaker 23
Speaker 26
Senator Jamie Scott
Unverified
Speaker 33
Speaker 35
Speaker 38
Speaker 40
Speaker 42
Speaker 47
Speaker 49
Terry Purvis
Unverified
Speaker 64
Representative Johnny Rye
Unverified
Speaker 81
Speaker 94
Speaker 100
Speaker 89
Speaker 101
Speaker 104
Speaker 109
Speaker 110
Speaker 113
Speaker 115
Speaker 118
Speaker 124
Speaker 127
Speaker 14
Speaker 24
Speaker 146
Speaker 162
Speaker 163
Representative Cameron Cooper
Unverified
Speaker 171
Speaker 173
Chair
Unverified
Speaker 175
Speaker 167
Speaker 179
Speaker 186
Speaker 189
Speaker 191
Representative Matt Duffield
Unverified
Speaker 200
Senator Kim Hammer
Unverified
Speaker 212
Speaker 210
Speaker 217
Speaker 211
Speaker 169
Speaker 44
Representative Joy Springer
Unverified
Speaker 190
Speaker 245
Speaker 222
Speaker 22
Speaker 273
Speaker 274
Speaker 275
Speaker 116
Speaker 215
Speaker 281
Speaker 282
Speaker 284
Speaker 287
Speaker 283
Speaker 288
Speaker 303
Speaker 88
Speaker 305
Speaker 309
Speaker 263
Speaker 314
Speaker 136
Speaker 140
Speaker 319
Speaker 321
Speaker 323
Speaker 324
Speaker 165
Speaker 328
Speaker 329
Speaker 338
Speaker 322
Representative Carol Dalby
Unverified
Speaker 341
Speaker 347
Speaker 337