Legislative Joint Auditing- Counties and Municipalities
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Speaker 432
0:33
insus name thank you senator Wallace Our first item on the agenda today will be the approval of the prior meetings of the minute or minutes of the prior meeting Second, all in favor say aye all opposed passes joe I want to turn it over to you and we'll
Speaker 10
1:05
itemd C on the agenda is an update on our private reports or
Speaker 11
1:09
delinquent reports from December31st to 2022 for our water and sewer reports Since our March meeting we've had7 new reinstatements which brings us to a total of 28 that have received their turn back or back or will as of June 10th that leaves us with 15 that are currently having their escrow or turn back escrow that completes my report Mr Chair.
Speaker 10
1:35
With that objection we'll file this report attend to item number d is a update on the delinquent 20312023 water and sewer reports we are down to4 remaining that have not
Speaker 11
1:52
filed their reportstaff note here these individuals are not having their turn back escrowed currently. This completes my report, Mr Chair without objection we'll file this report
item E is a discussion of noncompliance with municipal accounting code. we have five cities or or entities that we need to discuss today. The first two were added to the 60 day
Speaker 10
2:21
clock back in February the town of Denning staff visited them on april30th and we they reported back that their records have improved immensely and staff recommends that we
Speaker 11
2:30
take them off the six a day six a day clock and that's the same with
the town of Gum Springstaff visited them on March 19th and their records were much improved as well. So those two staff recommends that we removed from the sixtyday six0day list. motion pass or
Speaker 432
2:58
excuse me but accept the report make a motion that we
Speaker 14
3:03
accept the report the other three on the list with the chair's permission I'd like to
Speaker 23
3:14
yes yes please proceed starting with the town of Fargo on page four
Speaker 11
3:25
of the synopsis townwn of Fargo for December31st,202423 and22. under the mayor. A accounting procedures for municipalities are set forth in municipal accounting law and Arkansas code
annotated 1459101 through 119. The town was not in compliance with these codes and other proper accounting procedures as noted below A budget was not adopted or maintained. bank reconciliations were not prepared monthly. Financial statements were not prepared to or were not provided to the town council the annual financial statements were not prepared or published Town council minutes were not maintained.reumber receipts were not issued for all revenues receipts and disbursement
journals were not prepared a fixed asset listing was not provided. invoices and supporting documentation were not provided. All disbursements were not made by utilizing prenumbered checks or approved electronic fund transfer. Checks from not issued in the second order. This is a repeat finding the governing body did not document the review the prior report or accompanying comments or action taken in the governing body by the governing body as required the Arkansas code.
Speaker 25
4:45
mayorerre Young was invited here today the recorder treasure's position has been vacant for some time now Mayor Young notified us on the
Speaker 27
4:54
twenty8th that he was resigning and that he was starting the process to turn in the city's charter. We don't have any verification of this at this time because that was literally last
Speaker 11
5:05
Thursday. so staff would recommend that we defer this to give them60 days to just to which is to the next meeting which will be August just to see where where they are and then we
will take this up then but that's staff's
Speaker 432
5:20
recommendation without objection we'll I'm sorry Representative dalby
Representative Carol Dalby
Unverified
5:26
I just have a quick question could we or maybe it's
not proper but could we make a motion to start that process of of not dechartering or decertifying them but hold it in abaance to see if they can if they actually come through in60 days because if we don't then come60 days we're going to be
back in the same spot and then we're going to be making that motion and I'm just wondering is that something that would be proper that we could do that hold it let them make their decision as to how they're going to proceed and then go forward. I'm just curious as to
how other s would think on that if that's the will of the committee that's certainly fine with staff
Speaker 11
6:06
is that a motion Representative Doy? Second any discussion
Speaker 432
6:19
opposed motion passes. Could we go ahead and file that report as well? Yes, without objection we will file
that report yes Senator Johnson thank you Mr. Chair.
Senator Mark Johnson
Unverified
6:39
Mr. Archer those that was over 3 years,22,23 and24 for Fargo. I just phrase it this way but were they any better in how they were handling their business in
21 and20 and 19. I'm just it's one thing to say you made a mistake and you didn't fix these things during these years and then but if it's the longer it's not in compliance the more I'mapt to follow through with the representative point about that and
not just because you said it Representativealby but because it's how bad is it is my question I
guess Mr. Archer is there any evidence that you could add to that yes sir all those findings are repeat
Speaker 29
7:25
in the previous report and hear you a side note we had to subpoena the records Oh really? yes sir
Senator Mark Johnson
Unverified
7:36
chairman I think that is significant that you know we've had municipalities coming here before that they're
doing their best. I mean you got57 people it's and it's like you say they can't even find someone that wants to be recorded treasurer. I appreciate that but at some point in time
you know you have to decide if you're going to be a city or town you've got to follow the law and if you if you don't well you don't get to be one anymore and I think we've been kind of shall we say loose about that and you know it might be one way
you can kind of get out of the out of trouble is to surrender your charter yourself so I don't know I'm searching for how many how many times committee do we see this kind of problem and you
know you'd think that you know what did they say that insanity is doing the same thing over and over again and expecting a different result so I'll end my discussion on that Mr. Chairman, but I think we need to come up with some finality and at least you know I'm a big one on being consistent I want
us to treat one town tougher than we do another one in the same situation so thank
Speaker 58
8:52
you Senator Johnson for your timely remarks the
Speaker 10
8:59
the next entity on the substantial noncompliance list is
Speaker 11
9:02
the town of Lead Hill on pages 29 and30 your synopsis townwn of Leadhill for December31st,202423 and22 under the mayor an audit or agreed upon procedure or compliance report was not obtained for the water and sewer department is required by barkansas code. This is a repeat finding in the previous two reports
Speaker 10
9:31
Staff note we are currently the state treasurer is currently escrowing lead hill's turn back because of the lack of
Speaker 11
9:40
water on it continuing under the recorder treasure, a review of disbursements revealed a supporting documentation was not maintained for the following disbursements in noncompliance to the Arkansas code. Almost $1900 almost $1000 just over 100
Speaker 10
9:54
dispersed in 2423 and22 respectively due to the lack of documentation. The validity and propriety of these disbursements
could not be determined. Just over700 dollars, almost $1000 just over 800 dispersing 2423 and22
Speaker 11
10:09
respectively to vendors that appear to be for legitimate business purpose. However, supporting documentation was not available. This is a repeat finding the previous ive reports continuing on page 30 accounting procedures for municipalities are set forth in the municipal county law
Arkansas code annotated 1459101 through 119. the town was a noncompliance with these codes as noted below a detailed fixed asset listing was not maintained to include additions, deletions and control tolls. This is a repeat finding in the previous five reports. All disbursements from municipal funds were not made with prenumbered checks and a electronic disbursements were not were made without established electronic fund transfer policy approved by ordinance. This is a repeat finding
cash receipts and disbursement journals were not properly maintained prenumber receipts were not issued for all items of income. These are both repeat findings. 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 financial statement was not published or prepared this is a repeat finding
we have mayor mayor Ka Thompson here today to answer questions. Please come in the table sir we were invited recorder treasure Kathleenran
Speaker 10
11:41
but she called and said she was unable to come today. Mayor will you state your name for the record please thank you do you have a statement that you
Speaker 64
12:08
wish to makeush the button. they said I would not be first and here I am first so I'll take it though. first of all I want to thank y'all for being here today. I want to thank you for inviting me we have made some mistakes and we have let some things go that's falls on my shoulders we've been understaffed in our office for the whole time I've been in office we literally just kind of came in took over like it was and we just have been flowing we've had a lot of outside the office help water guys, police departments so a lot of our
funding was going there but we learned very quickly that the office, especially after this when you guys repeated up there it makes it sound a lot worse than it sounded when I was sitting with the auditors of our local office but anyways we've hired more office help and we have now two people in the office this is going to get better. it's it was just a lack of oversight on my part and it was a lack of help. We
just literally did not have enough office staff to keep up with what we needed to do and we just we dropped the ball and I'm sorry and we're working on it the audit the water audit is almost done. We should have it done at the end of the month we're dealing with Bell and Company. I have a they sent an email this morning or yesterday afternoon. I can't remember which which it was but they said that they are finishing up they have someone overlooking the water audit to make sure that 22 and23 are complete on their end and then they're going to submit them and
they said 24 can be done probably30 but they said give us60 days to be sure that we can because now that they have it in their system it's going to be easier to put the pieces together going forward our city council has accepted the budgets that were behind and so that's been in the works to get taken care of and we have new system in place for all tickets so I know one thing that was a problem was it took too long to get the auditors to things. we now have a scanning
system and it's going right in as soon as we get receipts they're going right in they're being tied into quickooks so that that stuff will be dropped in reports when they ask for it. we we apolog I apologize we really have we dropped the ball on a few things but small city as we just heard with Fargo it's hard to find people that want to help, especially people on small budgets or on volunteer services it's it's society we know I'm not telling you guys anything you don't already know but we are working on things and and and I would appreciate a little bit of
mercy does anybody have any questions of the
Speaker 67
14:46
mayor Senator Johnson yes sir thank you Mr Chairman. Mayor, thank you
Senator Mark Johnson
Unverified
14:51
for coming and we candid with us gentleman over your right shoulder with
the gray hair that's former senator Jack Critcher. He's with the Arkansas Municipal League and they stand by ready to help y'all if you can get your systems in place then people can keep up with this a lot better
but I know that he can offer y'all some help so I wanted to introduce him to you and he asked for a little mercy we will not be at least Mr. Chairman my understanding is we will not be meeting barring some emergency in July because of conferences that will most of us will have to go do so it would be august if you think it's possible maybe to have things done with your with Bell and Comy will will make this meeting yes I will I will, I will, I will force my hand and get it done. I know
Speaker 71
15:42
they said this summer they're going to be bu s y
Speaker 64
15:45
with people being off for the ho for the holidays and that kind of stuff but I'm going to push pretty hard the email that they sent us yesterday was very apologetic because they have dropped the ball and they've got behind on getting this done for us but they said it was a lot of information and with us being a new customer they're having to put a lot of pieces together that once they're in place will help this flow so they would in fact have a
Senator Mark Johnson
Unverified
16:05
template to follow to do the third year yes and our information will
Speaker 64
16:09
kind of just automatically drop into their system so that they will have
things live instead of having to get them post OK Mr Chairman, I
Senator Mark Johnson
Unverified
16:18
would move that we postpone this till the60 days to the August meeting
of legislave audit if that's a proper motion all right is there a 2nd 2nd
Speaker 432
16:28
discussion on the motion saying none all in favor say aye all opposed motion carries thank you all very much. Would you request my appearance at the august
Speaker 84
16:42
meeting. Senator Johnson's deferring the meeting you'd have to be here OK I'll stay in touch with
Speaker 64
16:52
my local auditors on the on the dates and the things like that and and Miss France may be able to come back with me then my recorder she also she's on vacation this week but she also wants
Speaker 84
17:01
to to right this wrong so we're deferring the report is that what you're we're going to further the report as well yes
Speaker 87
17:13
ok 111 a staff note please mayor you said60 days on your 2024 water audit. that's what bell and Company was said yes they have
Speaker 85
17:22
an email here I would recommend that you notify them that they're you're getting real close to the date to where none of your funds will be available to you again.m July1le1th would be a real good date to have it in by to be sure to be safe will go home and push that and push those datesly 11th we can you know the law said one year from
Speaker 25
17:43
the from the date so that that's a good that's the earliest it could possibly be that you would be in jeopardy of losing that whole year's worth of funds.
Speaker 83
17:49
I just want to make sure you you understand that July11th yes sir and that's the earliest earliest date that it could be 24 needs to be submitted by then yes sir, all three of
Speaker 64
17:59
them yes sir Senator Johnson Mr. Chairman, I made a motion
Senator Mark Johnson
Unverified
18:15
but do I want to ask Mr. Archer if I needed to modify that based on
Speaker 27
18:20
what he just so that's two different issues the60 days was the substantial noncompliance under 1459117. water
Speaker 25
18:26
issue is a completely different issue 277207 governs that two different issues and that's the one that has the drop dead data that started July so
Speaker 99
18:37
that we can't change that in this my understanding is if we shouldn't need to thank you thank you Mr Chairman.
Speaker 101
18:47
I think we're good mayor thank you. Are you guys done with me Ma I leave or do I need to
Speaker 23
18:55
stay? No you're you're free to leave. Yes sir thank you Mr. Foxx I mean Mrarch continuing with substantial noncompliance we
Speaker 11
19:03
have this the town of on page 37. townwn of december31st2024. under the mayor an annual audit agreed upon procedure report has not been obtained for the water
department since 2020 as required barkansas code. This is a repeat finding as
Speaker 10
19:23
I said earlier staff note they're currently having their escrow the turnback escrow due to this issue under
Speaker 11
19:29
the recorder treasure the accounting procedures from municipalities are set forth in Arkansas code 1459101 through 119. The town has the town was in noncompliance with these codes as follows bank reconciliations were not performed on a monthly basis
when bank reconciliations were performed bank accounts were not properly reconciled. bank reconciliations were not approved by someone other than the preparer cash receipts and disbursement journals were not properly posted and reconciled with bank deposits and withdrawals. re ber receipts were not issued for all monies received in the general fund this is a repeat finding. I believe we have mayor Dennisopel and quarter treasurer Marybeth Floyd here today. told me they were coming
Speaker 432
20:30
oh yeah there are OK if you would turn your microphones on and state your name for the record please. Mayor Dennisopelcorer Marybeth Floyd do you have an opening statement that you'd like to make? are there any questions of the mayor of the secretary
Representative Carol Dalby
Unverified
21:00
uhpresentativealby, I really have a question of staff for Mr. Archer it
I've sat on this committee I think this is my second term to be on this committee so that doesn't quite go back to 2021, but are we getting the same answers? did we get the same answers the last time they got audited that we're going to take care of this and it didn't happen and then are we getting the same answers in 23 and it didn't have and here we are now getting the same answers and
Speaker 25
21:31
well I don't have the the previous year response letter in front of me. you see that we included their responses for this current year but they did indicate or we wouldn't have filed
Speaker 29
21:40
a report that corrections would be made in general terms no ther question may Mr. please proceed so Mr.
Representative Carol Dalby
Unverified
21:50
Archer when folks say they're going to make the corrections how long do you give them to make those corrections and when do we get a report that they've made those corrections usually
do we have to wait until the next audit to find out usually
Speaker 29
22:07
the next audit because we have to go back and follow up and see if they were corrected. I mean we don't go out and do follow up visits. We just visit every year so we go back and follow up at that time on each engagement regardless of whether it's findings or not so we just follow up the current the following year and that's that's the reason it's my understanding that policy in this committee was made several years ago that if you have a repeat finding of the same official you get to come visit
Speaker 10
22:32
thank you we need a motion or on the 60 day clock one
with right if there's no other questions, I think we need a motion on the60 day clock I'll
Speaker 432
22:49
make that motion second motion second any discussion on the motion all in favor say aye all opposed say no. ayes have
it we filed the report as well but that objection we'll file the report
Speaker 10
23:07
Moving on to agenda item F. we have a discussion of noncompliance with 277207 which is misuse of street funds with chair's
Speaker 11
23:14
permission, I would like to go ahead and present the reports for the town of Jericho in
Speaker 26
23:20
the city of Haines please proceed on page 7 and 8 we have the town of Jericho and
Speaker 11
23:40
town of Jericho 2024 under the mayor and police chief finds and costs revenue of over47,000 dollars exceeded30% of the town's expenditures in the preceding year over $17,000 in noncompliance with Arkansas code. The revenue was generated from traffic offence citations written by or arrests made by the town's law enforcement personnel. This is a repeat finding continuing on page eight under the mayor and recorder treasure
che du le one of this report shows a deficit fund balance of just over600 dollars in gentle fund was brought to our attention that as of December31st,2024, the general fund owed a significant amount to the street fund. It's shown in notteix onchedule3 when this outstanding account was considered, the general fund had a deficit fund balance of just over58,000 dollars. This is a repeat finding in the previous four reports dating back to 2020.
Speaker 10
24:41
reststricted funds of over57,000 dollars were not transferred to the street fund from the dental fund as required barkansas code. The town received approval by the legislative do armittee on February 9,2024 to pay $100 and $200 alternating each month for three years and pay300 dollars monthly thereafter. which would total $1500 in the current year beginning March of 2024. However, the town only paid
Speaker 11
25:15
$1,007 or67% of the20024 amount owed. This is a repeat finding in the previous six reports the cash receipts journal for the general fund was not properly classified as required by code. This is a repeat the cash receipts journal for the general fund was not properly classified as required by code. This is a repeated finding a staff note real quick just to kind of give you a little background here I had staff go back because this is a 24 report and now it's May of 2026 I had staff go back and update us to the first of May to see where they were on their payment
plan and just a quick recap they were493 dollars short at the
Speaker 27
25:51
end of 24 which is our reporting period at the end that they made all their payments for 2025 on time
Speaker 11
26:00
and then as of May5th of 2026 they were additional700 dollars behind so that's a total of $1,193. We were contacted on May twentyeh through the help of the municipal league and they had made an additional $1200 payment at that time so as of today they
are current on the 277207 issue that does not
Speaker 25
26:23
prevent y'all from taking any action y'all wish to take because they were in noncompliance at the end of the end of the
Speaker 11
26:33
reporting year 277207 says y'all may act on that but I wanted y'all to have the full picture as far as where they were currently. Also we have uhli ChiRoy Hill here today to answer questions about his findings
Senator Ben Gilmore
Unverified
26:52
and the on the h right Senator Gilmore do you have a question? Yeah, as
the chief's come and just question from Mr. Archer did you say the previous 16 reports or since 201616 since 2001 huh ok I just wanted to make sure I was hearing that correctly. Thank you sir sir representative
Speaker 144
27:17
dalby have a question for Mr. Archer please
Representative Carol Dalby
Unverified
27:23
this is a I should know this answer but I guess Im not thinking what happened to the $17,692 extra dollars would would they spend that on? where'd it go? It's it's in their general fun well we're winning their general fund there's
Speaker 29
27:39
only614 dollars left but it was used I mean it was used in the normal course of operation so they could have gotten current long
Representative Carol Dalby
Unverified
27:48
before the municipal league got in touch with them
Speaker 114
27:54
I mean they had 17,000 extra dollars amm I reading that correct? No ma'am they
Speaker 27
28:00
could they they violated the the speed trap law by $17,000. That is a correct statement and that money was expended
Speaker 29
28:06
on some normal expenditures that we did not have issue with in our normal testing. I can answer it that way we didn't track that exact dollars is what I'm saying but you know what we didn't have any except find any exceptions to any of their expenditures throughout the year. OK, thank
Representative Carol Dalby
Unverified
28:24
you I have an editorial comment but I'll just wait. Thank you Senator Johnson do
you have a question? Yes, thank you Mr. Chairman. chief, thank you for
Senator Mark Johnson
Unverified
28:41
coming are you familiar with the socalled speed trap law sir and y'all exceeded the amount
by quite a bit we we had an area that used to be in my district named
Damascus you ever heard of them? I don't think I've heard of them well, Damascus they they for I don't know how many years 2 or3 years they didn't get to ride any tickets at all so they had zero revenue off of speeding or other traffic fines I don't want y'all to get in that because something tells me where y'all are located it might be a a pretty significant part of your budget but I mean and I am sure these people that you say were speaking or whatever their violation they were but we we
did this that we the general assembly I wasn't here then passed that law for a reason for for actually a lot of reasons so you said y'all are now monitoring to make sure you're in compliance.
could you explain to me how you do that you just tell the officers ok we've met our quota for this month so don't write any more tickets or how do you
Speaker 159
29:51
do that the senator most certainly do apologize for Mr
Speaker 432
29:55
Hill but I want to interrupt you
before you start answering that question if you would just
take just a moment and and state your name for the record and then proceed and chief
Speaker 157
30:06
roy Hill the Jericho Police Department. right thank you.
Senator Reginald Murdock
Unverified
30:09
please proceedenator most certainly you know to the board I do want to apolog ize you know for that and since that since the incident happened you know we have looked at all the angers of of the speed trap law and we have raised the speed limit you know we know we at
that that 10 mile stretch and we have since then raised it up to to 13 or 14 over before we stopped anybody out there so if you know you got to be going to that threshold so no one is being stopped under 12 you know 12 miles over and then some of this some of this revenue that we get you know from drug activists failure to p appear f fine and driving on suspended like that so it's just not all cables set for speed and some of those speeds that we get once we get those speeding and then we check them out you got
aended driving license you wanted it or some other fine activity of of insurance and stuff like that so we we monitor that we cut that speed you know raise it higher to try not to get to get into trouble with that then once we you know they go with this threshold then when you stop them you know they got like I said a sprinted driving license or they got failure to peer or they got no insurance or they got no driving license they violated the interlock device so all of those there come on there
then they got drugs so so in one incident you you might get just the speed and out of that you might get a whole bunch of drug charges you know out of that and the judge find those those fines are exceeded like maybe 8 to90 to $1000 and arriving on spending like500 dollars for the judge when he make that ruling there exceeded like maybe 8 to90 to $1000 and arriving on spending like500 dollars for the judge when he make that ruling now we even lowered the speed I think most of the city speak as like 195 we dropped our fine down to 185 you know try to capture it off all of that so it's kind of hard you know one stop you're
gonna get you're gonna get that threshold up there gonna go over the over the over the the margin ok now chief
Senator Mark Johnson
Unverified
32:10
of that47,3 5 $6 in in the fines and cost revenue that includes shall we say the nonspeeding things that might be a failure
to appear in the past or or that is that is correct that's exactly what license or something right that
Senator Reginald Murdock
Unverified
32:24
is exactly that's why I was you know explaining that so you will have the speed and I can't remember the the total numbers
Speaker 166
32:33
or the speed and you may have the the higher fine is going to exceed those speeds automatically no matter
Senator Mark Johnson
Unverified
32:41
what. So would you and again I'm not I'm not pinning you down to say it's this or that. how it's possible would you say that there's a possibility that if you if you strictly limited it to the stated maximum fine for speeding at so much over the limit that that that number might come
back under the30% threshold that's outlined in it
Senator Reginald Murdock
Unverified
33:05
is it is very possible so I think we had talked with someone in the legislative office you know which we're just finding out that the the fail ure to feat pe does not counter that so you got you got those margins you know in there as well too so we're just looking at one here we had like a you know3700 dollars in fine $2600 in court costs so that can easily extend the our will find out so just not so much of of the
Senator Mark Johnson
Unverified
33:35
speeding like that yes sir and now one final question Chief who is your district judge Tyler and where does he live? he lived at the reason I'm wondering is if the judge and I'm not saying he should or shouldn't but say throws the book at them for a failure to appear while I don't take that lightly it's not the same as what's covered under the speed trap law. I'm just Mr.
Archer do we have a is that something that your s staff looks at iss it I mean I get it all goes into one big deal of revenues but is that that something that could be broken out so we could I mean I'm not saying what I'm saying is47356 might not be an accurate picture for the things that we're discussing here it's correct me if i'm
Speaker 25
34:31
wrong Charlie two sessions ago they went back y'all went back and amended that law to eliminate those type of
Speaker 27
34:39
things it's not the failure to appear and those were not included in that right Charlie they're not included in that figure that answers my question originally the original law they were but y'all you know the same the same question was brought up
Speaker 29
34:53
apparently rightfully so and y'all addressed that and it is strictly and it's not outside agents either y'all the
Speaker 27
34:59
law was amended to remove those so if the state police can't fish somebody else is issuing tickets in their jurisdi ction That doesn't count as long strictly by the officers of the entity and it's just those those
the word the initiated fines it's not those that bill forfa up here and those sort of things taken out
Senator Mark Johnson
Unverified
35:16
go on forever with fees and everything they're from previous years they're not in
Speaker 83
35:20
the time period of all thank you thank you
Speaker 174
35:23
chief for helping us clarify that. thank you
Speaker 432
35:25
thank you Senator Johnson. I believe Senatorhammer did you still have a question you wanted to ask Chief so
Senator Kim Hammer
Unverified
35:34
you know what what's your total town budget is. I know that's maybe not in your
area but because30% of the town's expenditures do you know
what the total expenditures is of your city because you're only 98 in population, right?
No sir I don't don't recall that it read off you know what what it is ok and I guess what I'm thinking is we don't do you know what to do do y'all
know what it is $102,000.10 total expenditures for general fund total expenditures for general fund were just over $100,000. so
Speaker 29
36:02
you and I'm just trying to think a little bit outside the box here you're against the wall
Senator Kim Hammer
Unverified
36:13
already, correct most that because if your total expenditure is only 102, what would be the what would be the math as far as where they would hit their ceiling beat3ty right but so anything over30,000 so that is exactly what we did come up with some of our30,00 I get met with the district
Senator Reginald Murdock
Unverified
36:32
judge and we all sat down we was trying to figure these numbers there so you know what we did we were stopped at some weeks or even trying to do anything to not you know reach
that threshold there like I said it's almost impossible and
Senator Steve Crowell
Unverified
36:45
very hard to do that. I'm not going to be in the legislature next time around
Senator Kim Hammer
Unverified
36:50
but it seems like you're you've been put in a box that if early on you hit your quota we'll say you know in the year anything happens after that your your hands are tied as far as being able to I mean somebody could blow through your town 100 miles an hour and what are you going to do you really can't do anything just like we had another shooting and aggravated assault just those things we go out and
Senator Reginald Murdock
Unverified
37:13
get those because you know that's looking at a real high y in there you know and if he finds those up 2 or34 $1000 on that fine that's just gonna put us in the hole so we got to sit down until we look at that until we can get to a stage we can
Senator Kim Hammer
Unverified
37:29
move forward and I'm certainly not advocating for speed traps because at all I don't want to be misinterpreted in that fashion but it seems like the scenario is if you're hold city budget is 100,000 you could hit that pretty quick mean even if you
hit the higher one very quick thanks p re s ent ative al
Speaker 182
37:47
by did you have a question?rowe Senator Crowell
Speaker 432
37:51
who recognized how many police officers do you have on the force? We just have myself
Senator Steve Crowell
Unverified
37:58
and one of them. you guys are busy. just just for curiosity's sake is are you getting most of them on77 OK, I just wanted to cause that that does looking at the map that is a rather than going on the interstate they can speed up that way there's no pun intended right that's where we got all
the drugs and everything else on there thank you
Speaker 432
38:18
sir and want to come to Senator Clark right quick. I believe he
Senator Alan Clark
Unverified
38:24
had a question thank you Mr Chair Chief, I'm not nearly as friendly about speed traps as as everyone else has spoken the where's Jericho located? It's right
Speaker 157
38:34
next an area of on the border of Tennessee, west Memphis Marion. I want to
Senator Alan Clark
Unverified
38:40
be sure when I'm driving the
and what main highway comes through77 ok somehow I've avoided Jericho up to now or I would probably already know and what is the speed limit in Jericho? That's455 and the speed limit on77 outside of Jericho that's it's so it's just a 10 mile an hour drop and how long is this speed limit45 miles an hour what how many miles I don't
Speaker 159
39:17
know exactly but I know one thing that we did we had the state to put up like3 sign s before you enter
Senator Reginald Murdock
Unverified
39:24
Jericho telling you that45 is up that way then when you get close to the town there's another45 then when you get on to the city limit that's another45 so that three signs that they have to pass before we get all into that so we have looked at everything and try to change sizes try to change the top speed that we are getting right now is 20 miles of
the speed limit between65 to70 to give you an example just on Monday we had another chase of a young man come through that and his speed up the around70 so you end up transporting him to jail because he fla from the police so we had to have the aid themarionlice department the county to see so that that is a constant thing to that the speed is just not
Speaker 166
40:08
it506070 it's going on on up there just higher higher. The this is your first time to be
Speaker 157
40:21
cited for being over the limit? No sir we've cited it before. how many times I don't remember. I know this would be my first time coming back here I think y'all didn't come last year and the year before that if I
Senator Alan Clark
Unverified
40:35
can remember correctly so this is a continual thing which is why we have the law
that's correct what Mr Chair does anyone here know what if there's a penalty or do we just have them come in and talk to them yes this has been referred to
Speaker 29
40:52
the prosecuting attorney and they make that determination whether or not it's actually we all this is is we're reporting that they failed the test or it does not certify him as a speed trap that's a prosecuting attorney's job and then he'll they will take the steps to and it ranges anywhere from I have seen where they forbid them from issuing tickets before disbanded the police department to made them pay all the additional fines over to a school district in their area. I've seen it or to do nothing. I've seen all of those but it's the prosecuting attorney's role is
Speaker 25
41:23
to divide the penalty and we can refer it to the prosecutor it's already been referred yes sir it's automatic
Senator Alan Clark
Unverified
41:28
referred can we get a report back? You get
Speaker 25
41:31
one at the Friday meeting and usually once a year we do them all together. Micchelee does her report in the the the Friday meeting for a year long so we'll get a
Senator Alan Clark
Unverified
41:40
report back from the prosecuting attorney sir what they've decided sir and this has happened multiple times. this is a one time repeat so
Speaker 29
41:49
it happened in 23 but based on the wording of the
finding it did not happen in 22 but I am familiar that it has happened prior to that. I can't give you the
Speaker 208
41:59
exact dates but I know 22 they were good 23 they were not and 24 again they were not. I'll
Senator Alan Clark
Unverified
42:05
be very interested in seeing that report from the prosecuting attorney. Thank you Chi. thank you Mr Senatorhammer did you have another question? need to I need a
Senator Kim Hammer
Unverified
42:14
little clarification Mr Archer if you would because I want to make sure I'm hearing both both sides right what I heard you say was
that the fines you stop somebody and then there's add-ons such as what the chief was saying do those add-ons very to
Speaker 27
42:36
after the original the original violation that that judgment any additional fines on that particular case does not. so if you failure to appear, failure to pay all that stuff. they do
Speaker 25
42:48
not anymore Now chief speaking of other violations these as long as it's a traffic it has
Speaker 29
42:56
to fall into a traffic violation before it's considered into this speeding it's
Speaker 27
43:01
just speeding all these are just speedy. all the so the so this
Senator Kim Hammer
Unverified
43:06
these numbers in our report are specifically just speeding no sir no no
Senator Reginald Murdock
Unverified
43:13
those you we got speeding driving on suspended no insurance in a locked device it's it's a number of those things we you know we have it's just not that you're looking at
you know driving suspended driving left to center expired driving license expired tags they obtained re LPN fictitious tag flee and no driving license no trailer tag for me an unauthorized person to drive run a stop sign commercial speed 20 miles at the speed theyft of property so so we got those charges those amounts are included in that. I don't don't hear y'all agreeing amm I
Senator Kim Hammer
Unverified
43:52
misunderstanding or y'all not they're included in the
Speaker 29
43:57
original finding finding cost amount put in general fund and then once you fail that test taking that whole amount we then go back and expand our testing and break out all the things that the when they amended the law we break those out to make sure that's not what causes
Speaker 432
44:17
day it's just a speeding tickets that that are being triggered the tipping point here so I guess I need some clarification on that
Senator Reginald Murdock
Unverified
44:27
because in my understanding that all of this has been you being counted from outot to all that all of that is being countered because we sat down and we talked about we pulled out all of these in if I pull out you know everything else except for the speaking that I should be ok that's something we you know verify again
Speaker 38
44:48
there's the prosecutor's going to make the
Speaker 25
44:51
call on this if the prosecutor deems us to do it needs us to do additional breakouts
there are occasions when we report to the prosecutor that says the initial test they failed you
Speaker 29
45:04
know the situation at your area. do you want us to expand the test and and break everything out. Sometimes they they instruct us to do so sometimes they do not I'm not I can't answer whether or not on Jericho what the answer was at that time but the the the law is I can tell you what the law is the law is none of those things are in the figure when you go to the comparison after
Speaker 26
45:28
the law was amended. Wow are there any other questions of Che Hill?
Speaker 10
45:37
we need to deal with the got for I failed to mention when I I got sidetracked when I presented this report. Mayor Ida
Speaker 25
45:45
Sumpner and recorder treasurer Emily Duree were invited here today. They both called I believe the mayor has had suffered some health issues and quarter treasurerduree is the
they have an alternative school schedule and they're
Speaker 27
46:00
doing testing this week and she's she's an educator we need to decide whether we're going to consider them current
Speaker 11
46:08
on their street payback because they're current now or does the committee wish to take action on the fact that they were439 dollars93 dollars behind at the moment we audited
Speaker 97
46:18
for the first year what is the will of the committee
Speaker 25
46:30
just point of clarification if if the the committee has the option to escrow all their street revenue here that's the question at hand until the entire57,000 dollars is paid back and defining above that states that they got614 dollars in dental
Speaker 29
46:43
fund just so y'all have the full picture
Senator Ben Gilmore
Unverified
47:15
Senator Gilmore, so I say we don't hold it so what with
Speaker 14
47:20
the proper motion be in that don't hold not not hold an escrow just file the report just file the report and make a motion
Speaker 36
47:27
second any discussion on the motion? Representativealbyy would ask maybe staff ought to
Representative Carol Dalby
Unverified
47:34
we hold I mean we don't hold it we go ahead and just file the report let them rock along so when do we get a report that
they're that they've paid the rest of it we have to
Speaker 215
47:50
wait till next year we've already brought it up to date for as of today
Representative Carol Dalby
Unverified
47:54
25 they did they made all their owe the majority
Speaker 29
47:59
up on a payment plan that's going to take about 9 years on the approved payment plan. I mean I can't do it in my head but57,000 divided by3,600 because300 dollars a month for a while so it's going to be 9 or 10 years is what was the approve d plan back in February of 24. So you know all the 25 when we
do the 25 audit they're going to be fine because they made all those payments and then 26 through May we verified through last week that
Speaker 25
48:23
they're fine there as well so we know that far they'll they should be fine so it'd be two reports before we have another issue with them any other discussion on the motion
Speaker 27
48:31
there's a motion to file all in favor say aye any opposed
Senator Kim Hammer
Unverified
48:50
the nose habit senator hammer just educate me on something if you would Mr. Archer to tell me how much
Speaker 27
49:05
they're behind well they owe fi over57,000 dollarsurrently they were at the end of the audit report there were493 dollars behind but they've since caught up as of last week they're caught up in current as of right now on the payment plan yes. now they still owe
50500 $0 ish but they're current on their payments right they're current
Speaker 228
49:25
as of this week they are current. have a questionre when's her next payment
Representative Carol Dalby
Unverified
49:38
due, Mr. Archer June 1st or month of June so
Speaker 27
49:42
they they they made all the all their payments through May of 2026.
Speaker 234
50:04
Well we just voted on a motion Then I move then I moved that we we're going to meet
Representative Carol Dalby
Unverified
50:13
in august we'll meet in October. is that correct?epptember I'm sorry I'm skipping my August Septemberoctober and December so I would move that we bring them back in September and check on their payment
Speaker 83
50:28
plan. you want them to come defer it and let them come OK second all right Senator Gilmore,
Senator Ben Gilmore
Unverified
50:35
discussion on that motion so I'm just making sure I understand so then it'll be held in escrow not
Speaker 29
50:42
if you defer the report unless you also choose it to be nothing will happen until then and then we'll so we're just
Senator Ben Gilmore
Unverified
50:48
defer the report to make sure I understand you're just deferring OK yes sir that's fine we'll see
Speaker 238
50:52
if they've made those payments like they're supposed to. right Senator Johnson Mr. Chairman,
Speaker 239
50:57
I have a question for Mr. Archer. so what we're and
Senator Mark Johnson
Unverified
51:03
I appreciate Representativealby's motion. I'm going to vote for it
but I assume what we're looking at is that the June payment would be made before the end of the month July and August so when this magic date of September we want to know if they are if they if they're still if they're still current that's ok. I just want to make sure that's clarified. Thank
Speaker 432
51:28
you we get a second on right Senator crowellell's second Senator Gilmore thank you Mr. Chair and to Representativealby, what happens on September we'll just
Senator Ben Gilmore
Unverified
51:39
make a determination at that point OK so you you said September
Speaker 14
51:45
or August we're going to defer it toptember and if I may
Representative Carol Dalby
Unverified
51:49
address Senator Gilmore directly, Mr. Chair. say that again is
it ok if I address him directly we don't typically address each other directly my point being senator that they need to understand that we take these payments seriously let's see how serious they are and let's hope
that this spurs them to keep on or will be seeing them again and again until we get it paid because they did have 1700 extra dollars
that they could have put over just my point. thank you
Speaker 432
52:24
Mr Chair. yes ma'am. Representative y do you have a question
Representative Johnny Rye
Unverified
52:32
0 this58322 that the general fund is running a deficit on did they not before this happened
Speaker 230
52:40
did they not borrow money from the road fund uhm. Archer I'll defer to Mr. Archer.
Speaker 27
52:46
Yes, that's what this is that's what this is all
Speaker 87
52:49
about they they borrowed57,000 dollars from the street fund and we put them on y'all put them on a payment plan and they're not complying with the payment plan which this discussion has been you Joe thank you there you go thank you
Speaker 432
53:01
any other discussion all in favor say aye all opposed
Speaker 225
53:06
say no. eyes have motion gears have a staff note please
Speaker 29
53:12
one staff note Canda just informed me that I I thought I was remembering correctly when we contacted the prosecuting attorney on the speed trap whether or not they wanted us to expand the test they asked us not to expand the test for this so please chief you are probably
Speaker 25
53:25
correct all those figures are probably in that number. Thank you sir sir thank you Chi Yeah yes Senator Johnson. thank
Senator Mark Johnson
Unverified
53:38
you Mr Chair Mr. Archer is that a case by case by each
prosecutor so they have the discretion we might have again I'm big on treating all communities the same but that is up to
Speaker 23
53:52
the prosecutor. yes sir. the reason we usually ask them if it's a repeat finding and they did not choose to act in
Speaker 27
53:57
the previous year we want to make sure they want us to utilize the state resources by because that's a that's a pretty extensive test to go through it we have to go through every ticket and separate them all
Speaker 25
54:08
out and but we give them the number and if they say that's comparable with the last year and we've got the same situation as
Senatorhanmer pointed out there may be a situation where it's warranted. That's up to the prosecutor, not us. so there's no need just to do tests for for no reason if they're not going to act on that number Now if that number would have been $200,000 they'd have probably had us do that because it'd have been a
Senator Mark Johnson
Unverified
54:31
lot more case by case by each prosecutor that is correct OK, thank you sir. Thank you Mr. Chair. Thank
Speaker 10
54:38
you Senator Johnson back to agenda item if we have the city of Haines on page 34.
Speaker 11
54:52
and again we're going to go ahead and present this report at this time townwn of Haines December31st2024 under the mayor and recorder treasurer. Restricted funds of over $16,000 noted in previous years were not transferred from the general fund to the street fund noncompliance with Arkansas code. The joint let slave A Committee on February 9,2024 approved the town to repay $100 per month.
However, only $178 was paid in 2024 to reduce the ballots owed to the street fund. It's a similar finding was noted
Speaker 10
55:32
in the previous e reports since 2013. Althoughchedule one
Speaker 11
55:36
of this report shows a balance of over $1900 was brought to our attention that as of December30,2024, the general fund owed a significant amount for balances owed to the street fund and to the IRS it's shown in note fo onchedule3 when these
outstanding amounts were considered, the general fund had a deficit fund balance of over38,000 dollars. this is a repeat finding for the previous six reports dated back to 2018. we have a quarter we have mayor Willie Coleman and recorder treasurer Charlotte Mcfadden here today to answer questions staff note here
Speaker 21
56:20
just as we did on Jericho, I requested our
Speaker 11
56:25
staff go back and bring them up to current so y'all would have the full picture for 2024 the city was the town was supposed to pay
Speaker 27
56:35
$1000. They only paid $178 for 2025 they were supposed to pay $1200 we had no documentation that any payments were made and through May 1st of 2026 there
Speaker 11
56:48
was an additional400 dollars due and they only paid $187. so they are of the total of $2600 that they should
have made. They only made365 dollars for a deficit of $2,235. if you would turn your
microphones on and state your name for the record please mayor
Speaker 270
57:14
Willie Coleman recorder Charlotte McFadden Mayor do you have an opening
Speaker 269
57:19
statement yes, I took over after after mayor
OKok after mayor Ofihomas had he had got thick and I took over I think in 25 after him and a lot of the ones before I didn't I should have went over and looked but it was I dropped the ball when that really didn't pay attention to all the things that were done that should have been paid but wasn't paid. When did you take over 25. so if you took over in 25 while
pavements still late and then even in the 26 year you're not making your payments can I speak? Yes ma'am. go ahead. paymentyments
Speaker 274
58:08
were not made because they told us we had to pay 10% but we lost a lot of our revenue and we were
Speaker 276
58:14
not able to make our other payments for our bills and our salaries and everything. so in order to make to pay our bills and catch up on our salaries we took that money and we just paid bills and salaries
this is a bill it is a bill and unfortunately we just didn't have the money to pay it going forward we do have since they made arrangements for us to do $100 a month. We have been paying $100 a month. We started when they told us in late ebruary first of March we start making sure we made those payments. I have also made the payment for June already and going forward we should have those payments made again we
Speaker 278
58:53
are sorry and are there any questions Senator Hammer
Senator Kim Hammer
Unverified
59:00
tell us tell us about the your workings with the IRS you still the IRS, is that correct? We still
Speaker 276
59:08
owe thes and I've been trying to contact RIS and every time I get them on the phone and they say ok you got a couple of minutes to hold. they hang up the phone During the day I work I can't sit on the phone with the RS I have tried to pass his on to other ottomans and everything and so hopefully we get someone who's going to pick it up and get on the phone with and try to get that taken care
Senator Kim Hammer
Unverified
59:31
of and I may be missed in here but how much do
Speaker 283
59:36
you owe the IRs? I really couldn't tell you. I can't remember. I think it's like
Senator Kim Hammer
Unverified
59:46
32 yes what's your what's your overall revenue into your into the city's bank account. General Fon is38 how do you see yourself digging out of the hole that y'all are in which you don't know
we're going to try to do our best. OK are you still and is your general fund in a deficit right now today?
Speaker 276
1:00:17
No what's your general fund balance today? do you know about 2000 right at3,000 dollars. OK, so each month
Speaker 287
1:00:23
do you how much are you falling behind each month we're not falling behind each
Speaker 276
1:00:28
month now we never really fell behind. We
had maybe $2300 in there but we never fell behind but if I made the payment that 10% that they were asking for we would not be able to make that 10% now that they have it at $10,000 a month we shouldn't have a problem and we should be able to make our payments unless something go up and as far as the
Senator Kim Hammer
Unverified
1:00:56
income into the city you said you didn't have you lost income what you just testified to a while ago what what did you lose or how did you
lose? You had a business close or property or what no we
Speaker 276
1:01:11
had a death our police chief died and the police account that we had at the police department that shut down it shut down OKok, but but
Speaker 285
1:01:20
how did that throw oh ok so revenue you would have had
Senator Kim Hammer
Unverified
1:01:23
coming in maybe from speeding tickets or something like that you've lost right ok so you don't have a police department now and the county does the county cover y'all now? Sometimes you see them come through if we need
Speaker 276
1:01:37
them and call them they will come down and help us
Senator Kim Hammer
Unverified
1:01:43
but we don't have our own police department anymore OK and how much are they
Speaker 11
1:01:49
behind right now in the payment plan? what are they doing plan we have records that they've only made $178 in the in the year 2024 no payments
Speaker 29
1:01:57
in 25 and only $178 in2026 so we haven't actually and both of those payments were a a property tax relief payment that was deposited in the street fund
instead of general fund. We haven't seen any record of any
Speaker 10
1:02:11
$100 payments as of the 1st of May. so what how much would they have to pay today to be caught up $2,235. Real quick Miss share. so you think you can make
Senator Kim Hammer
Unverified
1:02:25
the $100 a month now even without the police department yes we can How did you make up the difference that you think you can make the payment now if you don't have the police department
but that was the reason for why you fell behind. yes no I'm asking how how do you think that you're going to be able to make the payment now because you don't have a police department right?
Speaker 276
1:02:51
No, we don't but we also caught up on our other bills and our salaries so going forward unless something change we shouldn't have a problem in making
Senator Kim Hammer
Unverified
1:02:59
that $100 procedural question if I could yes if we wanted to do just educate me if we wanted to give them a reset their 2035 behind
if we wanted to give them a reset and say ok we're going to start clean you're going to start now procedurally can we
do that or not we'd have to check with legal
Speaker 27
1:03:21
on that but I don't it the my recollection is
Speaker 29
1:03:25
that once the prepayments set if if y'all have a choice to contact the treasurer's that's a choice it's
Speaker 25
1:03:31
not mandated if they fall behind. if you choose not tour to contact the treasurer nothing happens but don't don't know of
any to my knowledge of anything that allows you to do a different one or prevent I don't
Senator Kim Hammer
Unverified
1:03:45
know I'm being told Senator Gilmore might have a motion I'm
Speaker 35
1:03:49
going to yield to him well before I go to Senator Gilmore, Senator clark had a question then I'm coming to Senator Gilmore
Senator Alan Clark
Unverified
1:03:57
first Mr. I'd like to ask a foundational question from Mr. Archer how long have they had the $100 a month payment it would have started
Speaker 10
1:04:04
in March of 2024. OK, so it's not just recently it was
Speaker 302
1:04:11
March of 2024 payment plan was approved February 9,2024
Senator Alan Clark
Unverified
1:04:15
and you don't show we don't show that those payments have been made no sir ever correct
the so we got a discrepancy that we're being told that this goes back to 2024, the100 dollars a month and you're not aware of it until recently until March end of February 1st of March
Speaker 276
1:04:37
this year because we were told it was
Speaker 274
1:04:41
10% that we had to pay. We also signed a resolution saying that we were going to pay
Senator Alan Clark
Unverified
1:04:48
that 10% but fell short. OK, so whatever you thought you were supposed to pay we haven't paid anything and you
think you've been paying it since 2024? No March of
Speaker 276
1:05:00
this year we have been panic since we
Senator Alan Clark
Unverified
1:05:04
found out ok I appreciate that that's not what our records show and I appreciate y'all being here.
what's the population of Haines?1 I suspected because I have communities in my district that are several 100 that are not towns and I have cities that are 117 but are towns. Is it possible I'm sure you're doing the best that you can is it possible that that the numbers just don't add up for Haines to be a town. No,
Speaker 307
1:05:43
I don't think that's true it's just we fell on bad luck. like I said we lost
Speaker 276
1:05:48
revenue but going forward you know we have other people in place now that we can do stuff to raise money so I think we're going
Senator Alan Clark
Unverified
1:05:57
to do OK. OK well we don't show that so far what's the how much in arrears at $100 a month how much
are we paying back besides there are
Speaker 10
1:06:08
currently as of firstt of May of 2026 or $2,235 behind on the payment
plan that was approved and sent to them on February 12,2024. OK, so it would take
Senator Alan Clark
Unverified
1:06:19
almost two years starting now besides the other debts
that they have with IRS which from what I'm hearing is quite a bit larger OK. right thank you for answering
Speaker 311
1:06:31
my questions. Thank you Mr. Chair. Senator Gilmore I don't know ifenator Wallace had a question before you
Speaker 312
1:06:39
come to me, I guess all right go ahead Senator Wallace.
Senator Dave Wallace
Unverified
1:06:47
thank you Mrir. How many city employees do you have and what
Speaker 290
1:06:53
is your monthly payroll? We have5 it's about $1400 a month
Senator Dave Wallace
Unverified
1:07:00
pay payroll total a month for five so they're part time thank you Senator Gilmore before I come to
Speaker 432
1:07:08
you, I want to let uhpresentative Cooper ask a question then we'll come to you
Senator Ben Gilmore
Unverified
1:09:11
the same time do they have the ability to be viable and to be sustainable and so again I'm not making that determination today. I appreciate what I'm hearing from the end of the table that you're trying that you were in a bad spot you're trying to work through it. I appreciate all of that but at the end of the day there are communities all over the state that are in the same position that you're in where you have you know population says 122 in the paper you say 120. we had one that was57 a few a few minutes ago so on and so forth
when it comes to is is is is that good governance for the state of Arkansas. I don't know. I don't know that I have the answer for that. My gut would say probably not so I think we should have and take a hard look at that so anyway with that my motion would be that we defer this until September and asked them to come back and we can take it up at that
Speaker 36
1:10:01
point. Second any discussion on the motion all in favor say aye any opposed motion passes
Senator Mark Johnson
Unverified
1:10:12
thank you thank you yes Senator Johnson, ll
I'll keep this as short as I possibly can. Ire if everything Senator Gilmore just said, I think that this may be something we want to start looking at before January of 27 but I think we we have so many like this as he said and sometimes it's it's incompetence sometimes it's just hard times we've had one case
where you know our police chief died. I mean when you've got you know around 100 or even less than 100 employees you know everyone's critical I think Senator Gilmore didn't want me to say anything about school districts but you know we went through a time when someone I
wasn't here then I was here but I wasn't in the legislature made a determination that if your
school district was less than350 people you didn't need to be a school district. I was opposed to that. I still think it was a bad idea and we we've
backtracked on that because some school districts operate just fine at that number and some can't you could say the same thing about cities. on the other hand there is at some point we have to recognize that because there's sort of a a a minimum operating amount for someone to be a city that we do have towns that are just too small and I I think this is something that needs to be addressed in legislation. I don't like the idea of us more
or less picking on one and maybe starting things to unless they're just belligerent and we've had a few of those I won't name names but those have been on this committee a little while know what we're talking about of some of these communities that kind of thumb their nose at our auditors and our laws but I think we need to be consistent and fair with however we deal with this but I think rather than keep you've heard this saying keep doing the same thing over and over again and expecting a different result and sadly I think in this committee
we see that too much so I don't even want to say everyone I don't have the solution just like Senator Gilmore said he didn't have a solution but I think collectively
135 of us next year need to start looking at at least a partial solution that was really
all I had kind of leding back to your original remarks I think Senator Gilmore reinforced that with his comments and I
Speaker 432
1:12:40
think there's an appetite to quit kicking the can down the road and you can only be lenient so long and forgiving
so long at some point you just have to stop and make the hard decisions. I think we have two cities that just been given a little extended grace to go to September and and then that will let the legislature start discussing about how we need to move forward if they don't rise to the occasion. Thank you Mr. Chairman for that you Senator Johnson. we're
going to stop just a minute. We have 9 college
students they're with us today. would y'all stand up
Speaker 432
1:13:21
please thank you y'all just remain standing just for a minute. these are accounting majors I think they're all pretty well juniors and seniors and this summer they're going to be doing an internship without it and see if this might be a fit for them and a fit for the audit division. I just know that it takes a lot to be a county major, a lot of hard work so we want to commend you for doing that and coming here today
but you know this represents what's good in our state young men and women who are who are working and building a future and we have theuFA representative today Arkansas State Harding, John Brown University and University of Central Arkansas here today so they they've just been going through their orientation. I think they've been going around for the other committee meetings setting in on them getting an appetite to see what they're going to be doing this summer so I just wanted to stop and recognize
them so good luck on your internship this summer.
Speaker 21
1:14:31
Thank you. you may be seated Thank you Mr. chairir. moving on to itemdam G review of reports on page one or excuse me we have 24 reports deferred from the previous meeting on pages 1 through3 we have the pulaski
Speaker 11
1:14:45
County excuse me we have a special report on six regional solid waste management districts a review of selected policies,
procedures and transactions from July1 of22 through December31st of 23. this was deferred so that the lay County regional solid waste district manager, district executive director Craig douglas could be here today staff member Charlie Kemp is going to present this report
Speaker 329
1:15:22
Thank you Joe. Charlie Camp staff6 findings were issued for the Pulaski County
Speaker 330
1:15:28
district finding one involved payroll items such as salary increase, contract for services and employee bonuses not properly approved by the boardard. This finding was referred to the sixth judicial district prosecuting attorney and the attorney general. The remaining findings involved credit card disbursements without proper supporting documentation at the time of payment was made rac t s not properly approved by
Speaker 331
1:15:52
the board s s ue s related to car allowances personal use of pulaski County districts and cellphones competitive bids not being solicited for the cost of multiple services and lack of an electronic funds payment system with written policies and procedures for internal accounting controls and documentation for audit and accounting purposes
Speaker 330
1:16:17
Other matters included the Pulaski County District expending312,977 dollars in public monies for advertising
which appears excessive in comparison with the amounts expensed by other districts in this report as noted in a prior report the Pulaski County District had a contract with a vendor that required the vendor to repair and maintain district-owned equipment located at the vendor's facility and used by the vendor. However, the district paid for maintenance of the equipment from the district's maintenance and repair capital fund subsequent to the issuance of the prior report, the district closed this fund and sold46 trailers to the vendor for substantially less on
Speaker 331
1:16:55
the purchase price. Finally, other items were sold to a second vendor but detailed descriptions and purchase prices were not available for the items in this sale. Mr Chair, this concludes my report. just fi it was so
does anybody by just gonna ask does anybody have any questions I see Senator Wallace to
Senator Dave Wallace
Unverified
1:17:32
you're recognized thank you Mr. Chair. Is there a reason why Mr. Craig Douglas is not here today.
Yes, Mr. Douglas, would you come up please hereuglas would
you state your name for the record sir
Speaker 337
1:17:53
Craig douglas, director of the regional recycling district in pulaski County.
Speaker 339
1:17:57
do you have a statement, Mr. douglas? No sir. we issued a letter of
response be happy to answer any questions right Senator Wallace, do you have a question what what
Speaker 343
1:18:17
has happened with this all of the findings yes well I can take them one by one be happy to do that senator thank you for the question in terms of the payroll items where
the finding stated that
Speaker 344
1:18:29
they were not properly approved by the board in the district rules and bylaws the board previous to my accepting this position authorized the executive director to make the decision on payrolls including contract services and bonuses based on the line item salaries and benefits budget approved by the boardard every
year in addition to that all of the increases or any of the expenditures in that light item are shared with the board every quarter the the board has authorized the director to issue any payments less than $1000 and any payments over $1000 are approved by two officers of the board. However, at every quarterly board meeting, every expenditure is listed and approved by the board
Speaker 343
1:19:31
as part of the minutes as far as the contracts as the findings stated not properly approved by the board any RfPs extensions of contracts and amendments are
Speaker 344
1:19:41
shared with the board and the director's authorized to execute those contracts once the contracts are executed then the board comes back and reviews those contracts at the next quarterly meeting in
Speaker 343
1:19:54
terms of I believe I don't know Charlie if you mentioned the electronic funds transfer we
have set that up based on recommendation in addition the car allowance and the personal use of vehicles is listed in an annual vehicle report and expenditures for personal use are reported on W-2s for tax purposes with the IRS. the audit recommended that the district contract the IRS and I'm reading and quoting here for guidance regarding documentation of car allowances
we have done that and
Speaker 344
1:20:34
the IRS has advised our CFfo that the board may or may require in in emphasis on May require daily mileage logs the board has not has not
Speaker 343
1:20:49
reviewed that yet in terms of the competitive bids that Mr. Camp mentioned the competitive bid that was referenced was for billboard advertising as part of
the district's education and information program on recycling a competitive bid or an RfP or an invitation to
Speaker 344
1:21:11
bid was not issued because there's only one billboard company in Pulaski County that that we use so
Speaker 343
1:21:21
we reviewed the proposal and accepted that in terms of the credit card disbursements there was a period of time between the
unexpected reson resignation of the CFfo and our contracting for a couple of months with a CPpa firm to handle that and during that interim time we did not have a credit card receipts. However, the credit card statement and invoice lists all of the expenditures that were made in the the finding did report that they all appeared to be for business use only
let's see the on the other one was in terms of advertising expenditures the district does advertise because as you all know I believe that if the res in our case the
Speaker 344
1:22:20
residential customers in the county do not understand what can and cannot be recycled recycling does not work and so the expenditures for advertising which
Speaker 343
1:22:32
appear to be greater than the average expenditures by
other districts is very simply
Speaker 344
1:22:39
because advertising advertising costs in pulaski County are much greater than any other part of the state so in terms of comparison with northeast northwest, southwest Arkansas we think they are in line because of media cost or a lot more expensive here than they are there I believe that answers those findings you thank you senator
Speaker 160
1:23:05
all right I believe Senator
Hammer has a question that share
Senator Kim Hammer
Unverified
1:23:11
just clarify did you took what you said to mean that there's only one billboard company in Plash County. Was that your statement that we use yes
Speaker 343
1:23:23
sir that you use yes sir I'm not familiar with others billboard companies that have a broad distribution throughout the county and y'all
Senator Kim Hammer
Unverified
1:23:31
came to that conclusion how or who would have brought that conclusion to you? Well,
Speaker 343
1:23:39
our media representatives at the time which was an advertising agency we don't
Speaker 344
1:23:43
we know we now do all of ours inhouse but we requested in the information that we provided them that we have a billboard company that covered the entire county, OK and the ad agency
Senator Kim Hammer
Unverified
1:23:56
that gave you that recommendation CMW and then I'm reading in the report says per the
district it is their practice to not remit or maintain receipts such as gas mills, office supplies, etc. is
Speaker 343
1:24:12
is that the practice no sir as I stated stated to Senator Wallace's question. there was a
Speaker 344
1:24:19
period of time of a couple of months between the unexpected resignation of our CFfo and the contract that we had temporary contract for a CPpa firm to handle that we did not colo we did not collect receipts. However, all of those credit card expenditures are listed line itemed on the invoices we received and
legislative audit commented that they all appeared to be and they were business related. OK, very good thank you thank you senator Senator
Senator Mark Johnson
Unverified
1:24:55
Johnson thank you Mr. Chairman Mr. douglas we asked last meeting which was before the fiscal session so this is the first meeting since then asking you to come and I appreciate you coming these items are
please excuse me but I'm I'm not satisfied with the explanation. how many employees do does the district have55 and so4 got a company car so to
speak is that fair enough to say additional3 cars
Senator Mark Johnson
Unverified
1:25:33
says that ba and this is I guess from Mr. Kemp's information that they
they do not have another vehicle available for personal use.
and that the amounts were added to the W-2 and there were but there was not mileage logs so basically these four employees are are
three of the four however many3 yes sir are provided a car and can use it for personal use and that document and that is supposedly or at least more recently added to
Speaker 342
1:26:15
their W-2 as income they are attitude to the W-2s
Speaker 343
1:26:20
at the end of every fiscal year at the end of every
Speaker 338
1:26:25
calendar year the employees fill out a worksheet to calculate the employee's taxable income related to personal use
Senator Mark Johnson
Unverified
1:26:31
of the car. OK. that also apply to cellphones they're provided with cell phones and you
said there was one other employed does that employee get a mileage
per theirRs mileage rate or how how are they coming
No they get a flat fee car allowance and
Speaker 338
1:26:51
how much is that I think it's $250 a month $250 a month which probably should go up Kevin gas prices but we'll leave that alone. Well and of course that all depends on how much they're driving. Yes, that particular employee handles a 27 county wastehier district district two ok now
Senator Mark Johnson
Unverified
1:27:10
according to the report your personal cellphone bill and district were not included on the on the W-2
Speaker 338
1:27:16
is that correct Senator I don't remember. I'd have to report back to the committee on that'd be
Senator Mark Johnson
Unverified
1:27:25
happy to do that and also how many years that if it has been corrected that's fine but we'd we'd like to know when that correction took effect when you did the the finding number5 about the billboard advertising when you say there's there's only one billboard company that we use. I mean that's like saying there's only one you know car dealer that we use so we
have to buy our car s from them I'm not going to go along with that but I'm you know I'm very sensitive to procurement especially when and I agree it costs more to advertise in Pulaski County and other places. on the other hand, uh312,000 dollars is a lot of money for advertising for someone that's in
the solid waste management business and I would don't know this but
I bet that private companies like waste Management probably don't have that high advertising budget for that same area. Would you
know about that? No, I don't know what they're expenditures are
Speaker 338
1:28:31
but I do know that our responsibilities are to educate the public on recycling as encouraged by a statute to communicate and provide information so that they may
properly recycle items and through that program over the last four years we have reduced the contamination of recycling carts from52% to25%. OK do the municipalities and the county
Senator Mark Johnson
Unverified
1:28:59
have any say in dealing with solid waste management. Absolutely what do they do that's different from what
your agency does. Our board is made
Speaker 338
1:29:13
up of all the mayors in Bulaski
County and the county judge so they weigh in on everything we do
Senator Mark Johnson
Unverified
1:29:23
quarterly. Well do you do you see your agency as a in more of an informational agency as opposed to an
agency that actually deals with the waste. No we actually deal with it because we manage
Speaker 338
1:29:37
the contracts for the private sector contracts we have it's been the philosophy of our district to employ private sector contractors not to
increase government employees but to increase private sector employees so we manage we negotiate and manage all of those contracts on a daily basis and we also answer inquiries from the general
Speaker 354
1:29:59
public and refer those to the private contractors, OK I just this is
Senator Mark Johnson
Unverified
1:30:04
probably a better question for Mr Camp, Mr Chairman, if I could ask him uharrlie Azira hate to say formula because formula may be not the right
word but in your statement in the report it says that the312977 in public monies for advertising which appears excessive in comparison with the mass expense by other districts in this report. can you compare hate to say compare and contrast too but I'm going to ask can you compare and contrast other districts perhaps those that are not real rural but no one's no maybe Benton and Washington County is as urban as we are in
central Arkansas now but is there when you say it didn't it appears
excessive can you quantify that just a bit we kept this
Speaker 330
1:31:00
constrained to the districts that were within this report as a comparison and we did the population and the amount per person kind of to make that correlation we did not go out to any of the other districts that's fine and get that the 20 3 year that the mouth and face spent on advertising and we did
Senator Mark Johnson
Unverified
1:31:23
not get that we just made this correlation based
on amount per person and is so if in these other districts the per capita expenditure for advertising was nowhere near as large as the one in in in pulaski County. is that correct? That's correct. Is there a go back to is there a comparison number is
it twice as much,4 times as much it's in this exhibit
Speaker 330
1:31:49
in the report which page is that that is on page 5 or on page
Senator Mark Johnson
Unverified
1:31:54
five of the report I'm not sure what page it'd be on this oh it's on that thank you here wow so it's78.4 cents per person in
Pulaski County and its Craighead is59 cents and then itfaulkner's 15 cents no one I had said that wrong it's78.5 cents in Pulaski County,5.9 cents in Craighead County $1.5 infaulkner County and I want and Benton County which probably is a little more comparable it's 110 of a cent per capita iss that sound about right that's calculations ok
well that is a significant difference ' m I'm not we could we could
probably dive deep on this before I released the mic Mr. Chair I want to ask one last question. Mr Douglas have y'all got now the
art business are y'all purchasing art anymore? I have not nor the board
Speaker 338
1:33:20
that I have served has approved any art purchases. I think what you're talking about is something that was done prior to your 12 years
ago 12 or 13 years ago. I'm fa mi li ar with it yes sir that was why was just wanted to make sure we don't we don't purchase art and the other other comment if I may senator on the advertising is that when you calculate the per capita on advertising the auditors are using and I understand why they're using the per capita of Pulaski County in order to purchase Pulaski Countyed to reach Pulaski County residents and others you're purchasing
media that reaches75% of the state so the comparison is a little off well what you're basically and correct
Senator Mark Johnson
Unverified
1:34:06
me if I'm hearing you wrong. when you advertise in the Democrat Gazette for example you're advertising the75 counties because they circulate whatever it's called circulation nowadays they have customers in those areas on the other hand if you do a radio station that just covers the southern half of Pulaski County then you're doing much smaller as far as newspaper
Speaker 337
1:34:30
paperper we buy themsA we don't buy the whole town the whole state but themSA isix counties 8
Senator Mark Johnson
Unverified
1:34:38
counties something like that is your organization eligible to use for your for your advertising to be distributed to say radio stations that could
be a public service announcement or other forms of media that
are probably would be free and we pardon me I just gonna say you
Speaker 432
1:35:01
were talking about asking one more question we have others in the
queue so get out of the queue and come back at the end Mr
Senator Kim Hammer
Unverified
1:35:09
Chair thank you so muchenatorhammeruglas thank you chair just
I want to give you an opportunity to explain something just to clarify on the bottom of our report page5 it says between 2010 to16 bought4620 foot foot trailers for 248,000 and then they were sold to the vendor for a total price of4,600 dollars which I assume that
means for all46 trailers can you just explain
because that's that's a big drop from what y'all originally paid and just helped
Speaker 343
1:35:40
me understand as I understand it and as the report was that those purchases
Speaker 344
1:35:46
were made in 2016 and when we sold them we calculated the extensive use that the trailers had those were tire trailers that they had undergone and we agreed to sell them back for $100 which relieved the district from providing maintenance which
we could not any longer afford OK that's those trailers that
Senator Kim Hammer
Unverified
1:36:06
have the high racks on the side that you there are two
Speaker 344
1:36:10
different sizes some are the low profile and some are the high. OK all right thank you sir right
Speaker 311
1:36:17
Senator Clark, I believe you have a question so yes thank
Senator Alan Clark
Unverified
1:36:22
you Mr Chair. So is it the board's position and your position that the advertising cost is not high No, I believe E I've I've been in the
Speaker 338
1:36:31
advertising business. I think it is quite high
Senator Alan Clark
Unverified
1:36:36
and so this is that what you're going to continue to do this spend multiple times more than what other districts
are spending per capita unless the board directs otherwise
Speaker 338
1:36:49
we're going to continue to do what is the most effective way to reach residential customers to educate and inform them on the changing nature of recycling. I would argue with you and your advertising
Senator Alan Clark
Unverified
1:36:59
agency or whether you're doing what's most effective as a guy who's in business furniture stores are not spending more
per sale in the littlettleRock then they're spending in Arkadelphia or hot sp p ring s they budget according to and and I can't just bill people for what I'm charging and that what I'm doing in advertising. So instead of using billboards and newspaper I'm using social media and getting a better getting a better return on my advertising by
Speaker 338
1:37:32
far than I used to. We include social media on a weekly basis two posts a week but how much
good is social media doing versus your billboards and your newspaper. I've always been told the anecdote that50% of your advertising dollars are wasted. we just don't know which50%. Well see I did a I did
Senator Alan Clark
Unverified
1:37:53
a study at my store for years and I had every customer that came in we asked and we found that 80% of our customers were repeat in return, OK so only 20% of of our customers were coming from our advertising budget and
then when we found what was coming from 30 nickel what was coming from TV what was coming from radio what was coming from newspaper and so I'm going to tell you what you and your experts don't know and since you weren't advertising I'm going to assume you were an expert is a social media is by far doing the most good for the least money and you want to sit here as government and tell us it's ok we're just going to keep wasting money that's what you want to tell us no sir because as business we can't do that we have to figure out
where where we're going to spend it where we're going to get a return
Speaker 344
1:38:47
or we just don't exist anymore and our measurement is the contamination rate in the recycling carts at curbside and we've we've
Speaker 338
1:38:53
cut that in half but if you've cut it in half, you know sometimes I'll see bush
Senator Alan Clark
Unverified
1:38:58
pork and beans all the time for months and then I don't see them for two years so at what point do you hit your effectiveness where it's time to cut it back so you did some good but but why do we continue to
hammer it? I mean huge corporations don't do that I mean y'all are supposed to be the marketing experts not this little lumber guy in hottprings What I would argue with you, I would go back to this report and I think you're wasting money. I think you're wasting the taxpayers' money and you're being obtuse about it. Thank you Mr Chair. Senator Wallace
Senator Dave Wallace
Unverified
1:39:44
you're recognized thank you, Mr Chair. Mr. Douglas
the fellows that were sold to the vendor what what was the name of the vendor Davis Rubber Company sir are
Speaker 432
1:39:57
there any more questions Senator Johnson
Senator Mark Johnson
Unverified
1:40:02
thank you Mr. Chairman and I'll try not to belabor this couple of more things Mr. Douglas Senator Clark knows about lumbering flooring and types of things he deals with and
advertising I know about trailers and cars and things like that a 24foot tandem axle trailer and I don't care whether it's a flatbed or has sides on it or whatever. I guarantee you you put it on Facebook Marketplace. you can get a hell of a lot more than 100 bucks for it and I've actually been looking for a trailer that would would haul my zero turn mower and most of them that would even it
would even fit on that are old and maybe need tires and all that we're in the500 dollars to $1000 range used so I mean this this was very very troubling to me when I see this now again I don't know about there's not much information about the box truck forklift ramps and shrink wrap but I tell you what just about any box truck or forklift that anybody has out there for $2500. I'll just put $2500 down if
you've got a running truck and a running forklift, I'll buy it because I could actually use the forklift around my little tiny shop for $2500. I could I could use that so these are really troubling items to me and I'm and you know one of the things we do in this in this this committee is we find issues that our auditors have have identified and refer them to the prosecuting attorney and they will sometimes come
back to us and say do a deep dive on on these issues and I'm everybody makes mistakes and things pop up sometimes that aren't as they seem but these are so so much a red flag for me that I just I want you to know I I'm very very concerned about it but I do want to give you an opportunity to return to respond to my question about that we made the decision not to pay
Speaker 344
1:42:20
maintenance on those that equipment anymore some of it was older than 2016 as I recall I don't have the list in front of me but
Speaker 338
1:42:27
we wanted to get out of the trailer business and so we got out of the trailer business. Mr. douglas, what kind of maintenance is there on a trailer
Senator Mark Johnson
Unverified
1:42:34
well there's a great deal when you're hauling tires in
Speaker 338
1:42:39
it I'm not a mechanic I can't tell you precisely. Well, I'm kind of a mechanic. I'm very amateur but I can
Senator Mark Johnson
Unverified
1:42:45
tell you primarily you're looking at wheel bearings and
tires. Now sometimes springs you know when spring shackles can
break and all that but unlike something that has a motor in it you know a trailer unless you drove it off a cliff and you had to weld it back together. maintenance is like I said wheelb bearings tires maybe a bent rim has to be replaced. This is but but the idea that they're only
worth you know 00 bucks is it's ludicrous to me and I'm'm again you just stipulate that you're not a mechanic and I accept that
stipulation but does your agency utilize marketing and redistribution which is a state agency we don't do you know if that's probably a Mr. Kemp question. Are they required to use it, Mr. Camper that's that's only state agencies that acquire not that I know of that might be something to look at. I'll just stop with that.
Thank you Mr. Chairman.presentativealby thank you Mr. Chair. This is for Mr. Camp. in this report
Representative Carol Dalby
Unverified
1:43:55
and you'll have to educate me because I'm not quite sure what if we're comparing apples
to apples or apples to oranges and I understand there's some size difference from population
but let's just say oh the Craighead county or the southwest Arkansas County solid waste management they're dealing with tires and recyclables and all these
things that pulaski County is amm I correct in that assumption? no
Speaker 384
1:44:26
the pulaski County district actually covers the tire program for craighead
Speaker 330
1:44:30
and I believe Faulkner in this report the other three districts at the time were running their own
Speaker 360
1:44:36
tire program. OK, but I guess my I'll get to my question but
Representative Carol Dalby
Unverified
1:44:42
my point they're essentially doing the same functions. I mean there being a solid waste management district correct and when I read this report unless I've misread it
some don't have any findings. They ran their
they ran it like it's supposed to be ran it's that run is that correct that's
Speaker 360
1:45:07
correct based on the parameters of our review ok and then
Representative Carol Dalby
Unverified
1:45:10
I noticed that oh the ones that had findings
they may have had one or two and they immediately addressed him like we're normal normally see we recognize that yes there's a problem we acknowledge that there's a problem and here's what we're going to do to fix it
most of the time I noticed that in so my question is and maybe if I may turn to the witness so my question then is I've read your response I've been listening to all the questions and I've read the response and I've read your read your attached letter I've read what the management responses were in this and it appears to me that your particular district
didn't take ownership in a lot of these issues it was like oh well that's what's a better what kind of brushed it off that maybe well the auditors yes they they said that but we've got the receipts and there was never any yes that's correct
and this is what we're going to do to fix it. all of the
Speaker 344
1:46:27
recommendations that the auditors have made. we
have reported to the board we have a we have a new chairman of the board that was elected at the april meeting he and I are meeting next week on the recommendations and so that the board can consider at the august meeting whether or not to change some of the procedures and the approvals the board considered the each of the areas that the audit has
produced findings on and we'll address those at the next meeting whether or not they want to change the procedures so we do take them very seriously. thank you
Representative Carol Dalby
Unverified
1:47:13
for the follow up Mr. Chair. So my so when was that board meeting that because this is dated March3rd. so when did you have that board
Speaker 397
1:47:22
meeting April and so I guess I'm just a
Representative Carol Dalby
Unverified
1:47:24
little confused as to why this is not important enough that you don't have another meeting before August
I mean these are some serious findings and and we can argue about whether or not you sold the trailers for the right amount of money or did you have the right receipts or did you pay people without the proper authority. my question is why did you not call or somebody not call another meeting until August. I mean we're rocking along now April, May, July you know May, June, July for you know quarterly and once again it at least appears to me
and maybe not to my fellow colleagues around this table but it appears to me that well oh well so this has happened we'll just address it somewhere down the road instead of seeing the immediate concern so my question is do you have a procedure to hold an emergency meeting and if so why did you not have one before August of this year we elected the new chairman in april
Speaker 344
1:48:29
He and I have met once. we're meeting again next week including meeting with the prosecuting attorney elect
that's coming into office in January to see if the board I don't calls the emergency meetings the board does but to see if the chairman wants to call in a meeting and address any of these findings we delayed that until after this meeting. do
Speaker 402
1:48:58
you have a new information or new question because all right thank
Senator Mark Johnson
Unverified
1:49:02
you Mr Chair. Who is your new chairman Mr.ugerrekRainey who's the mayor of Wrightsville
mayor of Wrightsville yes ok and so all of your board members are are mayors and the county judge and and the judge and of course Judgeyde sadly lost his primary so there will be a new person representing Pulaski County in 2027. MayorRainey is is the newly elected chairman
Speaker 344
1:49:29
of the board. OK, thank you thank you Mr.
Speaker 432
1:49:33
Chairman. thank you do you have a question Senator
Wallace all right we'll seeing no other questions so we have a motion to file this report ar I got a motion do we need a second I don't see a second so I guess
Speaker 303
1:49:56
that fails for a lack of a second are we deferring it for additional meetingtiptember right so would you have a motion to defer it until September
Speaker 432
1:50:12
any discussion on the motion all in favor say aye all opposed the motion carries
Speaker 405
1:50:20
can I get clarification or we invitinglaci County's executive director back again. yeah I think
Speaker 432
1:50:27
that would be good Mr. douglas if you if you could come. thank you so much continuing
Speaker 11
1:50:35
with reports that were previously deferred on page four we had the town of Biggers
2024 under the mayor ordered a greet upon procedure report and copulation has not been completed for the water sewer since 2016 as required barkansas code. Its findingsman is a repeat finding in the previous three reports. We have mayor Victoronraditsenberger here today to staff note townn ofiggers
Speaker 10
1:51:05
is currently having their turn back scrowed due to the lack of water and sewer
Speaker 410
1:51:17
for the record please? Mayor Conraditzelberger biggers apologize that's fine do you have an opening statement? I just want to say we we are working on those audits. I took office in 2 023 I can't speak for the former mayor but yes 2016 was the lastot of umerry and associates is who we have that's just trying to work
on it the they have 2017s the lady that was working or starting on it has retired and I do have emails that stating where somehow when she retired it got kind of lost in the system there but they are trying to reassign that as of now to get at least get 20se7s going of courseiggers is you know a
small town we have no full time employees300 I think is our population so we're trying trying our best to get it done. we apologize we are we do know it has to get done and we are going to get them done. I just can't give you a timeline on getting them all done but we're going to work as hard as we can to
Speaker 432
1:52:38
get them done all right does anybody have any questions of the mayor?
sayy no question without objection we will file this
report Mayor you're dismissed. thank you thank you
Speaker 21
1:52:59
sir continuing on page 5 and6 with previously deferred reports we have the town of Gilmore 2024 under
Speaker 11
1:53:05
the mayor and the court of treasurer. Schedule one of this report shows a general fund balance of653 dollars was brought to our attention that as of December31st,2024, the general fund owed a significant
amount to the IRS DF andA for taxes owed as well as a balance to the street and fire equipment and training funds shown in not ive onchedule3 when these outstanding amounts are considered, the general fund has a deficit fund balance of over54,000 dollars. this is a repeat finding in the previous five reports believe mayyor Bruce Delaney is here to answer questions
Mayor Bruce
Unverified
1:53:51
Mayor, would you state your name for the record please? my name is Mayor Bruce Delaney from the city
Speaker 412
1:54:00
of Gilmore. do you have an opening statement yes owned or a we we just compromisesing with them for a plan to get this paid we we working on it in our also on our street department we paid it off
inoctober 2025 in the art came in and she looked at it because they had took our turn back money you know they had took our turnro money so they told us if he's not going to get our turnback money back until we got this paid. OK we got it pay we got put the a then all the call them back and told me that we had to pay so we should have this paid back so we shouldn't owe this for the streets no more that is correct. I can verify that you know also they are saying on the fire department you know she's saying
we owing something like a ru3000 dollars or something dollars on that but you know what she or what she didn't really look at what we really paid on that is all it was picipally that we owe and we owe backpa because you know we didn't have the money to you know really keep our fire insurance going it was a fine showings
hold on let me get it it was the insurance and we was behind on it and so we had to come back and come back and pay the years that we didn't get paid because you know we're a small town we didn't have the money you know to keep college with the fire department stuff but you know we doing the best we can to make sure we get everything straight and you know to my we I think
that you know we did good we don't got this cleared up so only thing we really worked on that this RAs and we are working on it now to get it get it
Senator Alan Clark
Unverified
1:56:08
taken care of does anyone have questions of the mayor, Senatorlark. Mayor, thank you for being here. what's the population of Gilmore we might have a
Speaker 412
1:56:17
might have 160 people now because people started leaving with a small town. thank you thank you Mr. Chair thank you
Speaker 432
1:56:30
right with that objection we will file this report. Thank you Mayor
Speaker 11
1:56:36
you're dismissed thank you sir continuing on page six of previously deferred reports we have the city of Holly Grove2024. it actually goes over on page seven that's where we'll start under the treasure county procedures from 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
Bank reconciliations contain numerous errors cash receipts and disbursement journals were not properly posted or reconciled with bank deposits and
Speaker 10
1:57:09
withdrawals. Checks were not always voided properly and a fixed asset listing was established but did not include
Speaker 11
1:57:14
all additions and deletions. this is a repeat finding. believe we have treasurer Ruthie Foster here today to answer questions Mrirs, Miss Foster comesma asked Mr. Archer please
Representative Carol Dalby
Unverified
1:57:34
Mr. Archer on page six of the Hoygrove report you didn't or I didn't hear you said their expenditures exceeded appropriations by $140,000 have we determined why or is that all due to all the
accounting and reporting area areas areas on page se we just basically compared the budget to actual and
Speaker 27
1:58:01
then we test the actual so we didn't
find anything that was outside the law as far as those actual expenditures so we didn't really tie
Speaker 25
1:58:11
it down to exactly what they overspent on. OK, so it wasn't like an employee misappropriating ma'am
Representative Carol Dalby
Unverified
1:58:17
it's strict that was my question it just raised that was a big number they basically just didn't amend the budget at the end
Speaker 25
1:58:23
of the year. OK thank you ma'am ma'am,
Speaker 258
1:58:28
would you state your name for the record please? Ruie Fosterility
Speaker 421
1:58:31
Hollyrove and treasure yeah scoo a little closer to
Speaker 144
1:58:36
your mic please and do you have an opening
statement? No I do not are there any questions of Ms. Foster uhpresentative dalby, how long have you been the
Speaker 422
1:58:51
treasurer? I got it I think it was around February of 2024. I was the water clerk thank you any other questions without objection we'll file
Speaker 21
1:59:14
dismissed you continuing with previously deferred reports on pages 9 through
Speaker 11
1:59:20
11 we had 18 previously deferred water and sewer reports due to a lack of proper responses since then we have received responses from 11 of these. they are bearden 202423 and22 Central
cityity Cushman, Fulton 24 and23 or row 2423,22 and21. Staff recommends that we file these reports that objection we will file these reports just one second sure to
Speaker 94
1:59:58
get all my notes Also in that group there were7
Speaker 11
2:00:12
reports that we have not received a proper responses on that would be Mcree 24monntrose24, Van Buren County Water 24 West Salinene 24 Westgrove Water 23 and Wilmer23 and22. staff recommends that we defer these reports without objection we will file this
Speaker 432
2:00:35
report deferred excuse me defer these reports
Speaker 21
2:00:58
have three reports that we have certified to the bond board and referred to the prosecuting attorney in AG's office starting on page tel we have
Speaker 11
2:01:07
the Shannon hills water sewer and fire department. It's a 2024 report and this is a private report during the audit it was discovered the office manager in misappropriated funds by
Speaker 10
2:01:19
submitting false invoices and had a written checks to themselves using a signature stamp found in the office.ersonal expenses were
also being charged to city credit card.
Speaker 11
2:01:29
It was noted that the anti lacked adequate internal controls over cash, check and credit card handling processes.pecifically there's no segregation of duties between the individual responsible for writing checks recording transactions and reconciling accounts.
Speaker 10
2:01:43
We also note that s that a stamp of signature for signatures was being misused in the office and at the bank accounts were not being reconciled in a timely manner nor reviewed by management or the governing
body. This is a repeat finding. Supporting invoices and receipts will not all were not available for many transactions in the year ended december31st,2024. These two findings have been reported to the prosecutor and attorney in AGs in the first finding was certified of the bond board. there are no questions staff recommends we file this report without objection we will file
Speaker 11
2:02:23
through fi5 we have the town of carthage under the mayor and recorder
treasurer former recorder treasure Christopher Ogbor who resigned on June 1st,2023 was not removed from
Speaker 10
2:02:37
the town's bank accounts at the time of his resignation. Subsequently he made unauthorized cash withdrawals totaling over52,000 dollars from the town bank account from April11th to May28,2024. Ogborne Ogbor ne entered a negotiated plea of guilty
Speaker 11
2:02:52
of theft of property on December 17,2025 and was sentenced to 120 months of
Speaker 10
2:02:58
probation and was ordered to pay
restitution totaling50,200 dollars. A counting procedures for municipalities are set forth in Arkansas code annotated 1459101 through 119. The town with a noncompliance with these code sections and other proper accounting procedures as noted below. re n ber ed checks are not issued for all disbursements. This is a repeat finding. Monthly financial reports approved by the town council were not accurate. This
Speaker 11
2:03:27
is a repeat finding lectronic disbursements were
Speaker 10
2:03:33
made without proper approval of the town council and without establishing a written policy and procedures to ensure that the ETF payment system provides an internal accounting control and documentation for audit and accounting purposes this is a
Speaker 11
2:03:46
repeat finding. fix that that fixed assets were not properly maintained. This was a repeat finding annual financial statements were not published or posted since the previous six reports bank accounts were not reconcile through repeat findings since
2018.renumber receipts were not issued this is a repeat findings since 2018.cash receipts journals were not properly maintained. This is a repeat finding since 2018. cash disbursement journals were not properly maintained. This was a repeat fighting since 2018. Cash restricted for street
Speaker 10
2:04:23
purposes totaled over $19,000 was transferred to the street fund in 2016 from the excuse me was transferred from the street to the general fund without
supporting documentation.2024 town spent688 dollars from the street fund that was inconsistent Arkansas code in the prior year $2500
Speaker 11
2:04:45
was transferred from the general fund to the street fund leaving a balance due of over $17,000 at 123124. The town obtained
Speaker 10
2:04:54
authorization from legislative joint audittee for repayment of $170 or 10% of general revenue monthly at the december 11,2025 committee meeting. This is a
repeat finding since 2016 Continuing on page 14 a review of disbursements reveal supporting documentation was not maintained the following disbursements and noncompliance with the Arkansas code. Almost700 dollars or 13% disbursements tested due to a lack of documentation. the validity and propriety of these disbursements could not be determined. Just over 1000 dollars,21% of disbursement is tested the vendors that appear to be for legitimate business purposes however supporting documentation was not available.
Additionally, proper authorization was not obtained for six disbursements tested totaling over $2000. This is a repeat finding of the previous two reports on page 15 under the mayor budgets were not adopted by ordinance or resolutions and noncompliance with Arkansas code. This is a repeat finding He ordered a g agreed upon procedures report for the water and sewage system was not obtained in noncompliance with Arkansas code. This is a repeat find in the previous four reports dating back to 2016.
Mayor ShawnRandall is here to answer questions ta f f note as of May27th of
Speaker 21
2:06:21
2026 all of the outstanding water and sewer reports have been filed for the city of Carthage
Speaker 11
2:06:26
and they reinstatement letter was delivered to the treasure so
Speaker 29
2:06:30
they should be back on track on June 10th. Mayor, would you turn your mic on
Speaker 432
2:06:38
and state your name for the record please? Yes mayor ShawnRandall of Carthage,
Arkansas do you have an opening
statement? No sir does anybody have any questions of
Representative Johnny Rye
Unverified
2:06:56
the mayor uhpresentative Rye? yes sir can we go into the program where we're at Senator Stone to ask a question if you need to ok on page 13 streetmon actually was transferred to the to the general fund yes sir
Speaker 437
2:07:14
that's not supposed to be that way yeah that was when that happened I wasn't mayor at the time and so since I've been married we've been paying it back actually how the speaker said it was like 17,000 I think the last report now we have it down to a remaining balance of6,000 so we've paid $11,000,300 back in the last nine months
and so but yeah when I took over the mayorship I think that bill was like 19,000 or something like I said we we've been working real hard on it being that we haven't had our street fund money so we've been having to make bigger installments for as far as paying that money back to pay city workers and take care of street bills but in the meanwhile it's knocked it down to like6,000 dollars so so from 19,000 down to6,000.
Speaker 432
2:08:17
yes sir that's a good thing that you know that that's very important.
Speaker 311
2:08:24
thank you sir thank you any other questions
Senator Alan Clark
Unverified
2:08:27
of the mayor senator lark. Yes, mayor, thank you for being here. Thank you Mr Chair. what is the population of Carthage? I think about341
my compliments on you riding the ship and getting paying things back and and keeping them in order I hope
Speaker 311
2:08:43
you'll keep that up. Thank you Mr. Chair.
Senator Mark Johnson
Unverified
2:08:50
en ator son thank you Mr Chairman. Mayor, thank you for coming. I grieve Senator
Clark's comment. My question is actually for Mr. Archer the former recorder treasurer who absconded with the money52,500 dollars he was sentenced to 120 months probation in
order to pay restitution totalling50,200. Does legislative art know if that money
has been paid that restitution we're not we haven't checked on
Speaker 29
2:09:21
that yet. I mean if justf in 25 so she's been five months ago so well we we usually get reports on that you do get reports annually
Speaker 47
2:09:29
ok we check on it from time to time we can great thank you sir thank you Mr. Chairman
Speaker 432
2:09:39
one more question about without objection we'll file this report. Mayor you're dismissed all right thank you sir continuing with reports certified to
Speaker 21
2:09:47
the bond board referred to the prosecute and
turning As on page six we
Speaker 10
2:09:55
have the town of Mount Vernon mayor Jonathan Hawkins was
Speaker 11
2:10:01
invited here today. He requested that we refer this defer this to august staff recommends that we defer this without
Speaker 427
2:10:08
objection we'll refer this defer this report We have 10 reports that were referred to
Speaker 11
2:10:15
the prosecuting attorney in the AG's office. The first one's on page 17.'s it's an investigative report on the city of Fort Smith
review of selected financial records for January1 of2024 through October7th of 2025 we have staff memberRoss Baldwin here that will come and present this report thank you and good afternoon.
Speaker 442
2:10:55
this report is issued in response to a request from the 12th judicial district prosecuting attorney for legislative audit to review transactions in apparent conflict with Arkansas constitution Article 1, Section5. at the city of Fort Smith. our review covered the period January1,2024 through October7th,2025. Legislative audits review of
city expenditures from the special events fund revealed that the city dispersed funds totaling $170,000 and $170,007 during the review period without a contract for services or documentation to support a public purpose in apparent conflict with Arkansas constitution Article 12 Section5. these transactions appear to be
donations and sponsorships such as30,000 dollars to the stelehorse Rally $20,000 to Mercy Health Foundation and $15,000 to Fort Smith roundtable in care of Juneth. and various other nonprofit organizations Management response is included in the appendix of this report and the report has been referred to the prosecuting attorney and the attorney general's office
thank you very much. that concludes my presentation. does anybody
have any questions in Mr. Baldwin?
Speaker 432
2:12:41
say none without objection we will file this report Thank you Mr. Baldwin. continuing on pages
Speaker 21
2:12:49
18 through 20. we have another investigative report on the hector rule volunteer fire department review of selected financial records from
Speaker 11
2:13:00
January1,2023 through August31st of 2024. We have staff member Anthony Weston here to present this report. this report is
Speaker 446
2:13:15
issued in response to a request from the fifth judicial district prosecuting attorney for legislative audit to review selected transactions of the hector rural volunteer fire department. This review was conducted primarily for a period January1st,2023.
through August31st,2024 based on our review of revenues deposits it does not appear that all membership dues and fundraising proceeds were deposited in the department's bank account due to a lack of records, the amount of unaccounted for funds could not be determined Our review of selected disbursements revealed improper disbursements totalling $8,333. These improper disbursements consisted of transfers to personal bank accounts, payments on personal credit card accounts and undocumented cash withdrawal, personal expenses
and fundraiser change, not redeposited. In addition, the validity of4,689 dollars in undocumented vendor payments could be determined. Secretary Treasurer who resigned in Aug us t 2024 was custodian on the funds management response is located in the appendix of the report and this report has been forwarded to the fifth Judistrict district prosecuting attorney and the attorney general does anybody have any questions Mr. Weston?
Speaker 21
2:14:36
saying none but that objection we'll file this report continuing on pages 20 through 22. we have another investigative report on the city of Horseshoe Bendview of selected financial records January1 of2023
Speaker 10
2:14:54
through September30th of 2025. and again our staff members Anthony Weston will present this report. this report is issued pursuant to a
Speaker 446
2:15:04
request by the sixth judicial District Ppa for
legislative audit to review selected transactions of the city of Horseshoe Bend. This review was conducted primarily for the period January1st,2023 through September30th,2025. ALA staff review of city budgets revealed that budgets were adopted by ordinance or resolution as required by ourL code and employees selected for testing were paid in accordance with these budgets. Review of selected disbursements revealed $25,667 in undocumented disbursements the validity of which could not be determined
Additionally bids for a construction project were obtained but not properly advertised and the city contracted with a company owned by a council member without an authorizing ordinance. A review of insurance proceeds and disbursements following a storm revealed the city paid prepaid57,463 dollars to a contractor for roof repairs before work began in conflict with Arkansas constitution Article 12 Section5 and the repairs were not completed until a year later. Manage ment response is located in the
appendix of this report and this report has been forwarded to the 16th Judicial District prosecuting attorney and the attorney general does
Speaker 432
2:16:20
any member have a question of Mr.
Weston? saying none without objection we will file this report you're not recognizedir from
the audience No. you cannot be recognized. please be seated.
Speaker 449
2:16:43
continuing on page 23 thank you anthony
Speaker 11
2:16:45
continue on page 23 through 24. city of
Speaker 21
2:16:49
Augusta 2024. This is a private report start on page 24 during the course of the
Speaker 11
2:16:57
audit it was noted that the city ro off and made adjustments to utility receivable without additional documentation to support these actions Additionally it was it was observed that the city council had not established formal policy and procedures governing
the process of writing off utilities receivables. This is a repeat finding. During the audit it was observed that the city disbursed checks to employees without maintaining adequate documentation for the expenses. For Arkansas code a disbursement of municipal funds shall have adequate documentation for the disbursements. Both these findings have been referred to the prosecute and turned the AG's office staff recommends we file this report
Speaker 17
2:17:37
with that rejection we will file this report
Speaker 21
2:17:48
10 you on page 25 we have the city of magnolia 2024 under the city treasurer December
Speaker 10
2:17:56
2024, the city initiated two direct deposits totaling over $2600 to a fraudulent bank account after receiving an email request to change the employee's direct deposit information without verifying the authenticity of the request. The city notified the banking institution but was unable to recover the funds. Under the mayor an advertising and promotion
commission chairman the city paid $1150 to reimburse a private business for its private business advertising expenses using advertising and promotion tax revenue and noncompliance with the Arkansas code. In addition, this transaction appears to conflict Arkansas constitution Article 12, Section5 as interpreted by attorney general 2008121. there are no questions staff recommends we file this report
Speaker 14
2:18:44
without objection we'll file this report
Speaker 11
2:18:51
on page 26 we have the town of Alpena for 2024-23 and22.quarter treasurerRoberta McAister was invited here today she requested to defer this report.taff recommends we defer this report With
Speaker 14
2:19:05
that objection we will defer this report page27 of the
Speaker 11
2:19:12
city of Bradley 2024 under the mayor and police chief Eisen called for revenue of over
$109,000 exceeded30% of the town's total expenditures in the preceding year by $1,410,110 in noncompliance with the Arkansas code. Thiss revenue was generated from traffic offenses citations written or by arrests made by the city's law enforcement personnel. This findings been referred to the prosecute and attorney and AG's office. Staff
Speaker 10
2:19:40
would like to make one quick note on the finding below that's not one required to be read but they paid their bill to the street fund in full. We verified
that in in June of 2025. there are no questions staff recommends we file this report senatorark you have a question. Thank you, Mr. Chair. was that
Senator Alan Clark
Unverified
2:20:03
a one time finding on the speed truck? it was not a repeat finding so
Speaker 24
2:20:08
they didn't have this issue in 23 knowing the history it's not the first time but it's
Speaker 25
2:20:15
been a it's it's over a long history I'm not going to say it was two years ago it might have been 20 years
Senator Alan Clark
Unverified
2:20:25
ago but so if someone if it so it does exceed this although we've got a report here and it's turned over to the prosecutors nobody does anything they just get their hands slapped and go on to continue being a speed trap
Speaker 27
2:20:39
in this case the prosecutor ordered we have a letter to the prosecutor ordered that that $14,110 be paid
Speaker 10
2:20:45
to school districts in that cities area thank you yes, Senator Johnson thank you, Mr
Senator Mark Johnson
Unverified
2:20:57
Chairman. Mr. Archer is that authorized I I get the fact that the prosecutor has some discretion here but does that type of payment is that
authorized under law or is this totally I mean I'm just saying you could the prosecutor could say we want this to make restitution to some affected agency that was hurt but could is there that much discretion to say we're going to give it to the school district and I'm not against giving it to the school districts. I just wondering what the authority to do that it's my understanding that we report to
Speaker 85
2:21:27
the prosecutor that they failed to speed trap test and and the prosecutor has the
Speaker 25
2:21:32
authority to to take whatever action they see fit including if you'll give money to the school
Senator Mark Johnson
Unverified
2:21:39
district you're off the hook I guess thank you Mr. Chairman. When I heard that I had a
little trouble with it and I checked on it and they can do that by statute and my thoughts was was all right the city can't have it but we'll just give it to the school district and it's still staying in house so but that's the way it current
Speaker 456
2:21:58
law is so we'll just move forward with that actually Charlie's
Speaker 27
2:22:01
in fort Mr campusformed me that that the law actually reads that way that they do have that option in the statute that they can pull that money to the
Speaker 432
2:22:13
street to the school district yes thank you Senator Johnson. without objection without objection we will file this report continuing
Speaker 11
2:22:21
with reports referred to the prosecuting attorney Ag's office page27
and28 city of Caion2024 and2023 under the mayor and treasurer the city treasurer was paid to perform additional services as the water sewer and sanitation clerk. These payments were made without authorizing ordinance in apparent conflict with Arkansas code Additionally in conflict with the city's policy they accrued more vacation days than the water sewer sanitation clerk physician is allowed and received over $2800 in over $1400 in2024 and2023
Speaker 10
2:23:01
respectively for unused sick leave sick and vacation leave in excess of the allowable amount. the city paid $1900 and760 dollars in2024 and2023 respectively to a council member for various services without authorizing ordinance an apparent conflict with the Arkansas code. Additionally our ours form 1099 was not issued or reported to the IRS for these funds there are no questions staff recommends we file this report
Speaker 11
2:23:43
this report page31 we have a bawabasea water and sewer system 20242023. This is also
Speaker 21
2:23:50
a private report we selected 10 dates using 23 and during 23 and24 that we requested payment tape reports which detail payments applied to
Speaker 11
2:24:03
each customer's account for the date selected. and and related deposit slips for the following selected dates documentation was not available and we were unable to complete the procedure January3, February 15th and March 23rd. 2023. adequate sporting documentation was not maintained for two invoices in 2023. No documentation was available to support hours worked
Speaker 10
2:24:29
or duties performed and there were and there were no contract or
agreement specific specifying reimbursement or apple rates to pay for two employees
Speaker 11
2:24:40
in 2023 and one in 2024. There are no questions staff recommends we file
Speaker 14
2:24:47
this report without objection we will file this report We have 10
Speaker 11
2:24:53
reports with repeat findings starting on page 32 of the city of Eureka Springs2024
Speaker 21
2:24:59
Federal code under the mayor.ederal code requires city
Speaker 11
2:25:05
management to obtain federal compliance
Speaker 10
2:25:08
audit when federal expenditures exceed750,000 dollars. cityity had failed expenditures in excess750,000 dollars in202423,22 and21. But due to management oversight did not obtain federal compliance audits as required. The city could be responsible for repayment of federal expenditures if instances of noncompliance were noted during the federal compliance audit. We recommend the city obtain federal compliance audits for each of the respective
years. This is a repeat finding one of the finance director monthly bank
Speaker 11
2:25:42
reconciliations will not perform properly as required by Arkansas code. This is a repeat finding in the previous four reports MayorRoberterry and finance director Michael Aikins here today to answer questions
Speaker 432
2:26:13
if you would make sure your mics are turned on and state your names
Speaker 459
2:26:18
for the record please.Roberterry, mayor of Eureka Springs. Michael Aikins, director of finance for Eurka Springs. Do you
Speaker 460
2:26:23
mayor do you have an opening statement? I'm going to defer to the finance director. Most of this has to do with our audits. I think we are up to date with the exception
Speaker 459
2:26:34
of the 23 audit but are you know in what he said was that you know it was an oversight
Speaker 461
2:26:39
it's not an oversight we have been working diligently
to get these audits done we engage with forbes to do our audits we just can't get any progress with them. They have the information they have we have not kept them from anything we give them proper documentation. we just can't can't get them to complete the reports 20 and21 are completed22 is about3/4 of the way completed23 and24 they haven't started on in 25 we don't have to have one so we are working on it we've been working
diligently on them. we just can't get any response from the audit teams is this a and accounting firm a private audit and yeah it's a it's a separate audit from leg audit and from so they've had this information for
Speaker 432
2:27:29
all these years yes we have provided it with them
Speaker 461
2:27:32
we what we I mean we provided to them as they work on the years they do our water sewer audits and we were behind on those so we got those up to date and now they're working on the single audits trying to get those up to date
Speaker 432
2:27:46
I'm just sitting there thinking if they can or won't do the audits did the thought ever occur to you to gather your information up and go find another CPpa firm. Yes, we have tried that
Speaker 461
2:27:56
and we haven't been able every other CPA firm that we have reached out to that's been a size of four of uss we're getting the same pushback. I talked to Marcus which is our auditor. I talked to Marcus. He even come of some of the companies that I ask him about they said they had other issues with them and leg audit of them being behind on their
Speaker 432
2:28:17
audits too ok there are there any questions by members uhpresentative Ry yes sir
Representative Johnny Rye
Unverified
2:28:23
thank you Mr. Chairman. Fellows this first paragraph, could you explain that a little bit to us its750,000 and it says that if you spend
in excess of750,000 that you actually have to okay that through the federal government is that right what it's saying
Speaker 461
2:28:40
is that if we receive over750,000 dollars in federal money then we have to have an audit of that federal
money to make sure that we used it for what it was intended for or what we received it for a lot of that comes because we have in eureka we're a tourist town so we have an extensive transportation department which we receive a lot of federal funds for that to help fund that transportation department and so that's usually what kicks us over the benchmark of where we have to have these single audits so we have our leg audit we have our water audit and then we have this audit on top of the other two
Senator Alan Clark
Unverified
2:29:26
senator Clark one of these findings is repeated four times or repeated3 times so how long have you been in this job?4 years and and how long has this CPpa company had this information we've been using forvis for probably
Speaker 461
2:29:46
the last they were BK andD before
we've been using them for probably about 10 years at the city so it's kind of like what they were talking about earlier when you start with a new company they have a lot of groundwork that they have to put in to get you up to date so sometimes you stick with the company that you've got even though they're delayed in getting you the report s even though they're delayed four years. well there you know we we were behind when I took over it was an hour after COVId and we were behind on the water audits and the single audits so
we were trying to get them but we're a small town we're trying to get all of the three audits done in a year with a small staff so we focused on the water audits to get those up to date and now they're working on the single audits
Speaker 460
2:30:37
to get those up to date. right thank you and in response to the chairman's request or question about looking forward seeking out other accounting firms we are in the process of doing that we've been fighting literally with Forbus for
three or four years of trying to get this done and get them done. they've had the information and so we're we have been in contact and trying to locate another auditing firm to take over for our future audits are there any other questions
Speaker 426
2:31:13
without objection we will file this report. thank you for your
Speaker 21
2:31:16
time you page33 of the city of cotton plant 2024. Mayor Clara Harefton Brown was
Speaker 11
2:31:23
invited here today. She had a conflict. she was out of town.
Speaker 14
2:31:27
Staff recommends we defer this report with that objection we will defer this
Speaker 21
2:31:34
report 10 on page 34 with the city of Fou 20024. mayor Terry Purvis called this morning.
Speaker 27
2:31:40
he had a health incident and can't be here today so we we staff recommends we defer this report without objection we will defer this
Speaker 21
2:31:56
Joyner 2024 under the recorded treasure whether
Speaker 11
2:31:59
the bank statements of the general street and public safety funds were not properly reconciled in noncompliance Arkansas code. It's a repeat find in the previous e reports general funds cash disbursements journal was not properly posted noncompliance with the Arkansas code to repeat finding the previous three reports quarter treasurer Joseph Valdez is here to answer questions by quiz excuse mequez apologize if you would would you ladies state your name for the record
Speaker 471
2:32:27
please Josiehasker's treasure elizabeth McCollum council member do you
have an open statement ma'am? don't does any members have a question Senator Clark you're recognized what's the
Senator Alan Clark
Unverified
2:32:47
population of Joyner Un5009 and by the way thank you Mr. Chair thank
you all for being here 8 times that's that's I'm gonna say that I'm
speaking for everyone when I say that's particularly bothersome to why we even meet if we're not going to fix this things why in the world would anything be after was reported to me the first time because I hate I hate paperwork. I hate book work but after it's reported to me the first time my staff would be sure the next year but the second time, the third time, the fourth time,
the5th time, the6th time, the7th time the eth time u
Speaker 474
2:33:31
so we when I first came into the office it was everything was manually on paper. We have since hired a CPA two years ago she gets we started using their software two years ago and the the the auditor that we had this year she said most of it is clerical errors coding it's the that's what we're running into the problem now it's the coding because we're using everything is under one category and we're just go in there and we kick for the accounts that we're using4fo accounts that
we're using so it's a lot of it is just the coding so I did speak with the our CK that we're using and she is going to adjust it to where each account has its own code so we won't be jumping from category to category so that is where it's more it's more of a coding error that we're having now. OK, well I'm glad that but we do have a new software everything is through appreciate that that
Senator Alan Clark
Unverified
2:34:27
you're plan you're fixing it I hope not to see you here next year. thank you
Speaker 427
2:34:37
with that objection we will file this report.
Speaker 21
2:34:42
you thank you for thank you for your time continuing on page 35 with the city of madison
Speaker 11
2:34:49
2024 under the mayor and reporter treasurer althoughthoughchedule one of this report shows a general fund balance of over $132,000 was brought to our attention that as of December30,2024, the general fund owed a significant amount of balances owed to the street and sanitation funds as shown in notte6 onchedule3 when these
outstanding amounts are considered, the general fund had a deficit fund balance of $235,000. So repeat find in the previous five years if MayorRoy Winfford here today Staff would note that they are current on their payment plan for
Speaker 328
2:35:27
their street payback. mayor if you would state your name for the record please.Roy Winfrey, mayor
of madison. do you have an opening statement?
No do not. Does any members have the questions of the mayor Senator Clark Mayor, appreciate you
Senator Alan Clark
Unverified
2:35:46
being here. appreciate that y'all are current how long have you been mayor 23 January3 since 23 why would we have as I
asked the last folks why would we have something out of compliance5 times in a row well the only thing that I can tell you is all
Speaker 483
2:36:04
of this happened before my watch and we're trying to fix it now but it happened before I became
mayor and we're just trying to fix what was out there. I can appreciate
Senator Alan Clark
Unverified
2:36:16
that but it's they have found this at least a couple of times since you've been mayor. how are we going to get it fixed well
Speaker 483
2:36:25
that's one thing that we are doing now we we made a lump sum payment to the street department and we're paying them monthly for I believe it next6 years that we are paying them monthly uh350 dollars a
Senator Alan Clark
Unverified
2:36:41
month and what is your population769 I hope not to see you here next year. I'm going to tell you after 14 years I I'm going to repeat again I'm really tired of seeing these that go over two years 2 years is too long but I appreciate you trying to get it corrected. Representative dalby thank you Mrir. Mr Mayor
Representative Carol Dalby
Unverified
2:37:06
can you tell me why your general fund continues to run up what's causing the deficit
you're $235,000 in the hole right now the only thing that I can
Speaker 483
2:37:19
tell you is they were deposited in the previous administration was depositing money in that account and spending it for whatever. I can't tell you what they spent it on like I said that was before my time. I can't tell you what they're spending on but that's that's what caused the deficit if there are no more questions if there's
Speaker 432
2:37:39
no more questions without objection we will file this report
Speaker 11
2:37:47
on pages36 and37. we have the town of Saint Joe for 2423 and22. we had originally had them on
Speaker 21
2:37:56
the list to start the 60 day clock also they were going to be on the list to have to pay back their street fund money but they they have on May twentyixth to 26th they paid the street back in full. so that finding
Speaker 25
2:38:13
I'm not going to read it but they
owed him about $20,500 and they made good on that as soon as we pointed it
Speaker 10
2:38:25
out to them I'll go ahead and read the findingccounts procedures accounting procedures from municipalities are set
Speaker 11
2:38:30
forth in municipal county law Arkansas code 14 159101 through 119. The town was a noncompliance with these codes as noted belownthly bank statements
Speaker 10
2:38:39
were not prepared.print number receipts were not issued for all funds received and deposits were not made timely. Cash receipts and disbursement journals were not established annual financial
statements were not prepared and posted invoice and supporting documentation were not provided for tested disbursements totaling over $1400 or 92% over360 dollars
Speaker 11
2:39:02
or 9ty2% and over $800 or 100% in24,23 and22 respectively. However disbursements were the vendors that appeared to be for the gentlemen business
Speaker 10
2:39:13
purposes electronic disbursements were made from the gentle phone
without proper approval of the council or without establishing written policies and procedures to ensure that electronic fund payment systems provided the internal accounting controls and documentation of accounts and accounting purposes Monthly financial reports were not provided to the town council. Town council minutes for all council meetings was not maintained for inspection. Thisce this is a repeat finding of the previous two years City of Saint Joe has not had a recorded treasure since
Speaker 11
2:39:52
July of 2024. the mayor had been running the city up until his passing in april of 2026. as far as the street fund
Speaker 405
2:40:03
money that was owed the city council's stepped forward and paid that off this is similar somewhat similar to Fargo you know the law
Speaker 11
2:40:17
allows them to reassign accounting procedures if they're noncompliance
they don't have a recorder treasurer or a mayor. So staff would recommend we defer this until August to see if city council can find some officials but fargo y'all went ahead and started it so whatever the will of the committee is we can start the six a day clock or we can defer it to August. what is the will of the
committee senator Johnson you're recognized thank you sir. Mr. Archer I understand that they're small
Senator Mark Johnson
Unverified
2:40:54
enough town that you know there's nobody I
won't say they're sleep switch they they're passed away on the switch. there's no no the lights are on but nobody's home. but they sit in you know I don't know what we do in a situation like this because you know we have mayors come in and say that happened in the previous administration makes perfect sense. we understand that but when you you're say somebody else shows up but they're going to say I just got here. I don't even know what
what do we do in a case like what are our options I guess is
Speaker 29
2:41:29
the best and a new administration that would in my opinion would qualify as reassigning the accounting duties to someone else and
Speaker 27
2:41:35
that's that's an option to just let it kick on a year and give them an opportunity and that's what the council was
Senator Mark Johnson
Unverified
2:41:41
I assumed trying to do well they at least paid off
Speaker 11
2:41:44
the street debt. Now in the process that payment left about500 dollars in general fund. they paid everything ingentle point over the street just to get that so they made it good
Speaker 100
2:41:56
and now they're both almost broke yes sir yes sir ok well
Senator Mark Johnson
Unverified
2:41:59
some things just don't have an easy answer, do they? Thank you sir. thank you Representativedalby. I move that we
Representative Carol Dalby
Unverified
2:42:07
treat this case as we have the previous I think there were two others that we have done
this that we'll start that60 day clock if we're not satisfied with the answers that we get in august, I mean September that's what we did that's the date we had September correct yes
Speaker 11
2:42:27
that was on the 22 that were delinquent on those street fund payments the 60 day clock we we could defer that till August and then start it that's what September just you want
Speaker 493
2:42:37
to defer the report ti August's defer it
Representative Carol Dalby
Unverified
2:42:40
and I mean to no fault of their own to have the mayor guy and all of that let's see if we can get them here in august and then if we don't have any response then then
let's start that let's start that before you make your motion I mean
Speaker 432
2:42:58
recognize Senator Irvin thank you Mr
Senator Missy Irvin
Unverified
2:43:02
Chair and yes Representative dalby this is in my district. Saint Joe is a very very small little community had a great mayor that was there for a long long time he passed away and so you just really probably shouldn't be incorporated as a city anymore to be frank with you. there's a school there and a school district but just understandable why that's
probably happened. My question I think too though is is there a way that we can I guess look at the process or make a recommendation that perhaps they unincorporate has that ever been done by legislative council audit and I think if a done that but that or speaking with the county administration about that it's kind of my recommendation just because very small, great school there but community has kind of faltered just because they relied on this
man who was the mayor for so long had dued everything. Well and I
Representative Carol Dalby
Unverified
2:44:04
think before you walked in Senator Mr. Archer was telling us that the city council has taken some steps to try
to you know get things in line and so my motion was we can start that clock to de charter them or whatever we call it but we were going to hold that off until our August meeting so that if the city council because they have made some good faith there and we tried to recognize that in this committee
when they make some good faith effort that we would give them to august and if they can't get get things you know kind of in line and started at that in that time frame starts what my my
Speaker 494
2:44:43
motion is I agree I agree with your motion all right do we have a second
Speaker 66
2:44:51
on the motion?2cond, any discussion on the motion
Speaker 432
2:44:55
all in favor say aye any opposed the motion passes
Speaker 11
2:45:05
10 on page 38 where the city of Wilmot 2024 under the mayor an annual auditgre prone procedure report has not been completed or submitted to Arkansas Lelie audit for the city's water and sewer system for the year of 2017 to2024 as required barkansas code. The city signed an engagement letter on February 1st of 2026 for the years' 22 through 25. the next sentence says they hadn't received it but actually
Speaker 25
2:45:36
they filed their reports on Tuesday, June 2nd, so we reinstated reinstated their turn back they should be getting their money on June 10th. so they're in good standing there. continuing under the mayor althoughchedule one of this report shows a cash balance of
Speaker 11
2:45:53
$90 in the general fund was brought to our attention that as of December31st of 2024, the city owed a significant amount to the IRS which has not been paid as of the report date. It's shown in note5 on schedule3 of
this report. when this outstanding amount was considered the general fund had a deficit fund balance of over51,000 dollars as December31st,2024. This is a repeat finding but mayor Carolyn Harris is here to answer questions
Speaker 432
2:46:37
good evening if youu yeah there you go if you would state your
Speaker 500
2:46:43
name for the record please. Mayor Carolyn Harris and I have with me Evelyn Woods she's our receivable clerk and acting tentively treasurer treasurer treasurer
Speaker 501
2:46:52
no recorder recorder not treasurer do you have an open statement mayor? yes first thank
Speaker 502
2:47:01
you guys for this opportunity of coming here today
just know that over the past and I will be say I've been in office for this is my 11th year no 12th year 12th year ending November and when I came into office that was my first time coming before you guys my first year in office because of things in the past. What we we may a lot of progress we correct a lot of things that were not done properly in the past so over the
last few years we have had staff turnover and well you know what I'm not going to go on into all of that because I am the mayor so I'm going to take ownership in anything that's on this list. so what we're doing currently because
Speaker 503
2:47:52
I don't want to go back and say this person and it was an individuals didn't do a certain procedure so for moving forward we put a
Speaker 502
2:48:01
lot of policies into place we have also some controls we are looking into a lot of ways in which we can
generate revenue in areas which we probably should have already been receiving revenue business permits franchise fees just to increase our revenue. I personally have taken the $15,000 pay cut because I am trying to get
Speaker 503
2:48:22
the city and a place financially so that we're s sustained we can sustain our services to the citizens M Woods agreed to come on
Speaker 502
2:48:34
and take on some of the recorder
duties until we can get a recorder in that will do both treasure and recorder duties. I each year I actively seek out in the community citizens that would come on become a
Speaker 503
2:48:50
treasury quarter let's it's a you know for the city so that we can get everything into place. This year I
Speaker 502
2:48:58
have found someone who's a retired teacher she's willing to step up. she moved on to Arkansas from Colorado so she's willing to step up and be a part and serving that role as treasury
y reporter if she's elected I'll say that so the only thing I can say we are trying to get in compliance of the statutes we've turned in audits and we're going to continue to work in other areas in which we need
Speaker 500
2:49:24
to make improvement are there any questions from the members
Speaker 432
2:49:29
Representative Ry thank you Senator Stone. let me ask this ladies that
Representative Johnny Rye
Unverified
2:49:34
money that is owed to the internal revenue Service, how do y'all stand on that now if you got that paid
Speaker 502
2:49:43
back or no it hasn't been paid back we are working with
Speaker 503
2:49:48
them. I've sent requests in actual letters in and we're just working to get that payment arrangement set up y'all Senator
Senator Alan Clark
Unverified
2:49:55
Clark, did you have a question? Thank you, Mr. Chair. Thank y'all for being here and thank you
for taking ownership of the problems what's the population of Wilmontt? Wilmott is418 the
you have a deficit balance or had a deficit balance51,632 dollars hass
that changed appreciably it has. We have as of
Speaker 502
2:50:27
some of our rates so our water rates sewer rates and so forth we have done that which will help us generate
Speaker 503
2:50:37
additional revenue to cover other expenses
Senator Alan Clark
Unverified
2:50:45
well you had to do that I'm assuming because we we passed a law that said you couldn't sell water so water below cost and had to have an audit done and figure out so so that has been a problem for communities across the state is that we're selling water below what it actually cost us to produce it but have you paid anything back on the IRS debt that's that's what I stated earlier we are working on
Speaker 503
2:51:09
that. I sent in a letter requesting a payment arrangements and so forth so that it's in the works
Senator Alan Clark
Unverified
2:51:19
and so and I've kind of had this tone throughout what you've got this debt looming over you that I don't see how you're going to pay why do you want to be a town? do
Speaker 512
2:51:34
we want to be a town can say it appears that it
Senator Alan Clark
Unverified
2:51:37
could be costing more then you can take in. I can say this I
Speaker 502
2:51:43
moved back to Arkansas in 2010. I grew up there and moved away for 23 years. move back
I was there. I had a small
Speaker 503
2:51:55
business and it did not make it so I decided if I'm going to continue to be in this community I want to step up and do whatever I can to help this community grow. since I've been in office we receive over $23 million or more in grants in different areaslice department fire department streets all our departments actually sewer water so we receive grants but unfortunately we had to take
loans with them as well because there are not a lot of 100% grants we are currently working on a strategic plan and we're working with the University of Memphis so that we can see a different ways of bringing revenue into our community through ourlake Enterprise we're going to focus on tourism and trying to draw in revenue based upon the tourism and we have a lot of visitors to Lake Enterprise because we're on the border of Louisiana southeast Arkansas so we're on a border so we have a lot of
visitors that visit our lake constantly so we're trying to to beat think of creative ways for a small community in which we can generate revenue just to keep us afloat we would love to have more assistance from the state if I want to be honest with you we applied for the community needs grants no municipalities receive that grant. prosecutors offers the nonprofit nonprofits receive that grant and not say that because I'm a go getter when it
comes to the community because I want us to thrive. I grew up there. I love where we live. there are opportunities but we also need assistance governorhutchins I remember going before
Speaker 501
2:53:38
him and I said that I feel like we're forgotten in southeast Arkansas so and I'm doing what I can yeah
Senator Alan Clark
Unverified
2:53:54
question it's not an insult it's
a real question and and it's not just for y'all it's for every small town that's having a problem paying their bills and especially those with a deficit balance why do we want to continue this because the things that you've mentioned we can do as a community. I have communities much larger that are not incorporated that can do all the things that that you mentioned and so it's time for us to consider whether we're going to continue to be incorporated and can we handle those
responsibilities or not and but I do appreciate you taking the pay cut. I appreciate you taking old ship. I appreciate you being here but it's time that we as the legislature not just you ask these serious questions. Thank you Mr Chair also may I address that
Speaker 502
2:54:42
and I'm not here to be combative because that's not what this is about I promise you but I'm here for a reality check. We put a lot of resources in northern Ark an s as don't forget the
Speaker 503
2:54:52
small towns and I'm here to speak for them because I'm a small town and I love where I live and I want to stay
to look at the whole I mean you guys look at the whole state what can we bring to southeast Arkansas that can create jobs so that we can have livable wages for our citizens in the surrounding communities not just Wilmont. there are several small communities in southeast Arkansas we're in the jobs that are coming southeast for livable wages. I said livable wages. I'm not talking about $11 an hour livable wages
so that we can create businesses like I told you I had a business I chose to get out of because when I moved here I had a son in college so you decide how can I do this? I can't do this you know but we do not want to be forgotten to say oh well these small towns can't do it. we can do it with assistance.urn back we receive in general fund from the state500 dollars a month 500 because you base it on our
population maybe we should base it on our needs and not just the population so I'm here and I get emotional and I'm sorry because I do not want us to be forgotten. I don't want us to be oh I've heard it all day. Well100 populations what about just ending it but what about the people who live there and who want better but we need
assistance sometimes not all the time to do better. I don't believe in handouts that at all but we do need for you guys to consider ways some creative ways in which we can help these smaller communities who are really trying it was hard for me to go to the citizens to raise our rates and we did that we haven't received our rate study yet. we did that because it has to be done
Speaker 501
2:57:05
someone's working our rank study for about the last year we moved on and made our own decision. We got to do something to stop the bleed so we can turn things around so I'm asking you not
Speaker 503
2:57:17
to be the focus of shedding these small communities down it's justit the focus should be how can we help these communities just like we pour in so many tax dollars and tax credits to bring people and businesses into northern Arkansas
Speaker 501
2:57:35
and that's my spill on it and I'm not here to be combative I promise you it's just that just be more open because not everyone is not trying to not be in compliance or intentionally not being in compliance. there's a lot of things that occur in Wilmot that's not more so y d ney business but other things that have occurred that affect city business when it comes
Speaker 503
2:58:02
to individuals trying to do the work
and they come to a point where it's like I have to
Speaker 501
2:58:12
take a break because this is overwhelming but not giving up so we asked the state to don't give up on that small communities because I'm going to fight for mine. Well I mean we're
not going to give up on anybody but communities have to do what they have to do because sometimes if you don't take care of your business somebody will take
Speaker 432
2:58:27
care of it for you and that's why you're at the end of the table today and that's where we're that's what we're trying to do respond Mr Chair before yes and then I've got
Representative Rri, Senator Wallace and then Senator Johnson and we'd kind of need to be moving forward please so let's be candid on our answers and very candid on our responses Mayor, I very appreciate very much
Senator Alan Clark
Unverified
2:58:50
appreciate everything that you have to say. I represent a rural district which which this country boy very well Malvern being the biggest town in it and the municipal leagues here they know I have talents with the population of 117. I'm not and and I'm not saying that
anybody's not trying. I'm just asking the question should we be incorporated it's not but I can assure you here in this legislature that those of us who represent small towns are fighting for small towns and are fighting to bring jobs and whatever economic development that we can find and that's part of why we did the things we did on water because I've asked which comes first the chicken or the egg we don't have infrastructure how we how we're going to get business there so I appreciate the things that
you're up against as agricultural economy has shrunk what used to be the prosperous part of Arkansas is no longer prosperous. we're very much aware when it comes to health care and other things but whether a government body can pay you know we hear here we have in the constitution that we have to have a balanced budget and so it's not whether we want to help or not it's whether we ought to
be a town or not and and like I said whether the connotation of what I'm saying can be misrepresented or misunderstood. I wasn't harder on small towns than I was on the laska County people. Fortsmith that have been here we already turned that over to a prosecutor I'd have been hard on Fortsmith because they had some things on there that I didn't understand why in the world they didn't know why they didn't know they couldn't just give30,000 dollars to somebody I was on the cornport30 years ago and we had
to have a contract but so we have to do business as business and so
I appreciate you caring for your community and so do we. Thank you Mr. Chairre
Representative Johnny Rye
Unverified
3:00:54
thank you Mr Chairman. ma'am, let me ask you ladies this this fi1632 that's a deficit. did you ladies did you change the amount that you were
charging for water bills so it would actually generate more revenue and that way you didn't have to spend as
Speaker 506
3:01:15
much money out of the general fund exactly we've increased our water rates there
Speaker 503
3:01:21
was pay cuts actually we decreased our staff well during the summer we kind of hire additional staff to help keep up with them street maintenance and so forth so we did decrease that so we have full time two full times and we have a seasonal individual now that just comes in tos so we're
making different adjustments and changes in our budget so that we would not fall in that area again having a deficit and we're working diligently on our RS. and as of 2026 current so senator Wallace you're recognized for a question Thank you Mr. Chair.
Senator Dave Wallace
Unverified
3:02:05
ma'am thank you for being here today. You said earlier that you
had taken a pay cut and how much was that
Speaker 279
3:02:18
15 OK5000 yes ma'am thank you are there any other
Senator Mark Johnson
Unverified
3:02:30
questions Senator Johnson thank you, Mr. Chairman. Mayor, thank you for your candor and for working hard on this. Senator Clark said, I'm very interested in
the the rural problems and we do have a disconnect here you see parts of our state that are just rolling money and others that are just barely making ends meet
there and that's not your fault you just you're helping your community that you grew up in. I was born in Ashley County. I have family down there and I understand and recently lost a family member and went to the funeral and as I drove through rossit I was really stunned by how Crossett has kind of gone down but that's a systemic problem but if if your means reduce you have to live within your means as Senator Cclark was making that
clear the gentleman behind you on to your right is my friend Senator Critcher with the municipal league and he has resources that could help you but I think you are it's beautiful that you're wanting to grow out of your problem but you're going to have to manage your way out of this particular one and I encourage you to pull your horns in while you're seeking these other sources of revenue and other industry because you know it's the old saying in
your family you know we'd like to have steak every
night but we're going to have to eat beans
for a while until we we get things together but thank you for coming and for we're going to do everything we can not just to help Wilmott but all the I worry about the delta. all rural Arkansas but especially the delta. you have some unique problems and even though I don't represent that area, I' m in central Arkansas. I have family and friends down there and I think it's important that our whole
state's does well so thank you for coming thank you Mr Chair.
Speaker 503
3:04:23
and I do want to address the management we are working diligently on that as well you know as far as how we manage our finances and putting processes in place to make sure certain things are being done as they should and to be in compliance of the federal and status and state laws are there any other
Speaker 432
3:04:45
questions say none without objection we will file this report ladies thank you continuing on page 38 with the
Speaker 11
3:04:56
11th judicial district East2024. restitution account had an unidentified bank balance of over $2000 for December31st,2024. This is a repeat finding. The circuit court fined collectionc account had an unidentified bank balance of33,000 dollars at 12312024. This is a repeat find in the previous se reports dating back to 2015. We
Speaker 10
3:05:19
are prosecuting attorney Tim Blair here today to answer questions
Speaker 432
3:05:30
on why that money's would you state your name for
Speaker 529
3:05:34
the record before you start please? I'm sorryimlair, I'm the prosecutor's attorney for Arkansas County which is the eleventth Eastjudicial district. thank you please proceed sir so back around the beginning of 2000 our county clerk excuse me our circuit clerk decided that they did not want to collect fines and fees anymore.ines fees and restitution at that point and this is prior to my
administration at that point the prosecutor decided that instead of letting that go to a debt collector because if it went to a debt collector they would take30% of everything, not just fines and fees but also restitution and so somewhere in the early 2000s our office prosecutor's office took over taking fines and fees and restitution so all the money that we're talking about is restitution that has been collected all fines and fees have been passed on as they're supposed to be passed on
well that went on with handbookkeeping until around 2015 In2015 it went touickooks or when they did the transition there was a fair amount of money not a fair amount, a large amount of money that you either weren't able to identify who that money went to or you weren't able to find who that money went to. So if you collect it and this is an example if you
collected something to a business and 2015 or 2010 and that business went out of business before the money was collected then you don't have any you don't have an easy place to send it to and so that's kind of the situation we've been in of that money you know there's two accounts there the restitution account and the amount that is shown there is the 20 change will that account actually has $20,000 in it. We know who
18,000 of that money belongs to but we don't know who that 2000 belongs to in the33,000 dollars in the circuit court collection account that's about 75 % of that money is from the money that comes prior to 2015 which was collected and we don't have a place to send it you know the place or place the
restitution going to a business that's no longer exists or somebody that's passed away something to that effect and so we try to go through once a year and look and see if we can find you know somebody who that money can be sent to but you know we're stuck with what we have now that other 20% on the rest on the circuit clerk out or the circuit clerk clerk
collection amount that other 20% which is you know you'll send out a check to somebody who has who's sold restitution and they won't cash it or something to that effect and so we're in the process of always trying to re reissue that money this isn't money that is we haven't misused this is just money we haven't been able to distribute representativealby appreciate you sitting through and and being here this afternoon it is
Representative Carol Dalby
Unverified
3:09:08
my understanding that orders can be issued directing that money kind of wiping out that account at some point in time and I'm assuming that that y'all will pursue that. I know that the AoC can help in that regard and I'm sure the prosecuting attorney's office can help in that regard but that's my understanding that at some point in time court can issue an order can't find them and move on can
Speaker 529
3:09:32
issue an order sending that money to county general but once that's done that that's
Representative Carol Dalby
Unverified
3:09:38
the end of it but at some point you may have to draw that line and I would suggest that you get with those two entities to prepare for that at
Speaker 432
3:09:51
some point one more question if there's no other questions without objection we will file the report. Thank you Mr. Blair. you on page
Speaker 21
3:10:00
39 we have one report that we have a finding on and no response that is the highway424 Water association for July31st
Speaker 11
3:10:09
of 2025. This is a private report. Staff recommends we defer this report until which time we get an adequate response. without objection
Speaker 16
3:10:18
we would defer this report on pages39 through52.
Speaker 11
3:10:21
we got36 reports with resolved findings Staff recommend we take a minute to review those and if there are
Speaker 27
3:10:27
no questions staff recommends that we file these reports we have a motion to file to have
Speaker 432
3:10:37
a 2nd 2nd any discussion on the
motion all in favor say aye any opposed say nay ayes have it the motion carries without
Speaker 14
3:10:51
objection we will file this report on pages53 through57
Speaker 11
3:10:55
we have 155 reports with no findings staff recommends that we file these reports with that objection we will file
Speaker 432
3:11:05
these reports Well I think that concludes the the meeting for the day the next
meeting will be August 13th,2026. Until then y'all
be safe meeting is adjourned thank you thank you
Agenda
A. Call to Order by Chair
Prayer
B. Adoption of Minutes of March 12, 2026, meeting
C. Update on Private Reports – Delinquent December 31, 2022, Water and Sewer Reports
D. Update on Private Reports – Delinquent December 31, 2023, Water and Sewer Reports
E. Discussion of Noncompliance with Municipal Accounting Law - Denning, Fargo, Gum Springs, Lead Hill and Ulm
F. Discussion of Noncompliance will A.C.A. § 27-70-207 Misuse of Street Funds – Jericho and Haynes
G. Review of Reports (Refer to the Synopsis)
H. The next meeting of the Legislative Joint Auditing Committee will be held on August 13, 2026.
I. Adjournment
Documents
No documents posted.
Speakers
Speaker 432
Speaker 8
Speaker 10
Speaker 11
Speaker 14
Speaker 21
Speaker 23
Speaker 25
Speaker 27
Representative Carol Dalby
Unverified
Speaker 35
Senator Matt Stone Chair
Unverified
Senator Mark Johnson
Unverified
Speaker 26
Speaker 29
Speaker 50
Speaker 58
Speaker 64
Speaker 67
Speaker 71
Speaker 84
Speaker 87
Speaker 85
Speaker 83
Speaker 99
Speaker 101
Senator Ben Gilmore
Unverified
Speaker 144
Speaker 114
Speaker 159
Speaker 157
Senator Reginald Murdock
Unverified
Speaker 166
Speaker 174
Senator Kim Hammer
Unverified
Senator Steve Crowell
Unverified
Speaker 182
Senator Alan Clark
Unverified
Speaker 208
Speaker 38
Speaker 97
Speaker 36
Speaker 215
Speaker 228
Speaker 234
Speaker 238
Speaker 239
Representative Johnny Rye
Unverified
Speaker 230
Speaker 225
Speaker 270
Speaker 269
Speaker 274
Speaker 276
Speaker 278
Speaker 283
Speaker 287
Speaker 285
Speaker 302
Speaker 307
Speaker 311
Speaker 312
Senator Dave Wallace
Unverified
Speaker 290
Speaker 329
Speaker 330
Speaker 331
Speaker 337
Speaker 339
Speaker 343
Speaker 344
Speaker 160
Speaker 338
Speaker 342
Speaker 354
Speaker 384
Speaker 360
Speaker 397
Speaker 402
Speaker 303
Speaker 405
Speaker 63
Speaker 410
Mayor Bruce
Unverified
Speaker 412
Speaker 258
Speaker 421
Speaker 422
Speaker 94
Speaker 245
Speaker 437
Speaker 47
Speaker 427
Speaker 442
Speaker 446
Speaker 449
Speaker 17
Speaker 24
Speaker 456
Speaker 459
Speaker 460
Speaker 461
Speaker 465
Speaker 426
Speaker 471
Speaker 474
Speaker 328
Speaker 483
Speaker 100
Speaker 493
Senator Missy Irvin
Unverified
Speaker 494
Speaker 66
Speaker 500
Speaker 501
Speaker 502
Speaker 503
Speaker 508
Speaker 512
Speaker 513
Speaker 506
Speaker 279
Speaker 529
Speaker 16